The new venues range from game show experiences and virtual gaming to pottery painting and family arcade options. In addition, Main Event Shenandoah expanded on I-45, adding more than 40 new games, General Manager Brandon May said.
Arcade and sports bar Dave and Buster’s Shenandoah also renovated in 2024 as part of an effort to appeal to older populations. Brett Petrovich, general manager for the location, said the $2 million expansion allowed for new shuffleboard lanes, darts and a virtual gaming area.
Other venues offering adult activities include Escapology, an escape room, which opened in November. Game Show Battle Rooms opened in September with an interactive game show format.
About 60% of the business at Game Show Battle Rooms has been corporate team building, Director Tyler Donges said.
The impact
Shenandoah anticipates an increase in its sales tax revenues as the new entertainment-based businesses open. Shenandoah Financial Director Lisa Wasner said the entertainment venues have been one of the top producers for the city’s revenue.
In turn, this has been used to decrease the city’s need for property tax revenue, officials said. Since 2019, the city’s property tax rate has dropped from $0.1799 to $0.1421 per $100 assessment in 2024-25, the lowest property tax rate for a city in Montgomery County, according to information from the Texas Comptroller of Public Accounts.
“Currently, residential taxes account for only about 25% of the city’s total tax revenue,” Shenandoah council member Jim Pollard said. “The business contributions allow us to invest in infrastructure, public safety and quality-of-life improvements without placing an undue financial burden on residents.”
Despite the influx of new entertainment options, the population of Shenandoah itself remains below 4,000 as of the most recent U.S. Census Bureau American Community Survey data. In addition, the median age is over 60.
Cheeky Monkeys opened its second Houston-area location in Shenandoah not because of the demographics of the city itself but because of its location in a developing area, owner Aftab Hemani said.
“We know that there is more development happening towards the north, which would drive people to come in over here,” Hemani said.
Zooming out
Although the city’s sales tax revenue has increased steadily since 2019, Mayner said most of those funds are not generated by the city’s residents.
According to Travel Texas, a total of 95% of travel-related local sales tax in Shenandoah in 2023 was generated by visitors to the area, rather than residents.
“We were much more akin to a beach destination, in the sense that we had a tremendous amount of people/business coming in from outside our city spending their money in our city and then leaving, and that the resident portion of that is very small,” Mayner said.
What they're saying
“All of these businesses, hotels, restaurants, entertainment venues, they exist to serve the larger population and people coming in from all over," Mayner said.
“We also wanted to be in an area that had other entertainment options. ... Competition is good, it brings people around to your business," said Leslie Brodin, co-owner of Escapology.
“The city [of Shenandoah] was so responsive in helping us open the store. They guided us throughout the process," Hemani said.
“Historically, our main entertainment venues have been among the top producers for our revenues, ... and we expect this trend to continue with these additions," said Kirby Crenwelge, communications specialist for Shenandoah.
Looking ahead
The growth in business development in the area comes alongside several projects planned to address increased traffic in Shenandoah on either side of Metropark Square.
David Memorial Drive—which runs behind Metropark Square—is being extended to Hwy. 242 to reduce the demand on I-45 and its feeder road. It is partially complete but is awaiting $2.5 million needed for completion from the city of Conroe, engineer John Bleyl said. Meanwhile, new work to connect I-45 to Hwy. 242 is planned to begin this year and wrap in 2029 to help ease traffic concerns in the area, according to information from the Texas Department of Transportation.
Shenandoah officials said they don’t believe the new entertainment options will be affected by these projects or contribute to increasing traffic or crime in the area.
“Shenandoah’s Police Department has been growing over the past three years to ensure we continue providing excellent service as our city attracts more visitors,” Pollard said.
