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Editor's note: This story has been updated to reflect that the meeting was on July 14.
New Braunfels City Council approved a $288,500 contract with C.H. Johnson Consulting, Inc. for the development of a market viability study on July 14.
The study—which is being supported by the city’s Hotel Occupancy Tax Fund—will look at the potential expansion of the New Braunfels Civic/Convention Center with an adjacent hotel, according to agenda documents.
The overview
The South Castell Visioning Plan identified the center as a key redevelopment opportunity, calling for adjacent uses like hotels, residential units and improved public spaces. The feasibility study with C.H. Johnson Consulting will directly advance those goals by using up-to-date market and financial analysis to determine what is viable, agenda documents state.
The project will consist of the following four phases:
"That second phase will be where the data and analysis can then start to determine how the facility should be expanded to support the existing and, more importantly, new demand," Assistant City Manager Jared Werner said.
Then the firm will use those findings to draw out site concepts. The fourth and final phase of the process will include estimates for direct and indirect economic benefits for new jobs and sales taxes. This phase will also look at potential funding strategies and outline a roadmap for implementation, Werner said.
Digging deeper
The study can be used as documentation that can be used to pursue the Qualified Hotel Project, or QHP, designation in the 2027 legislative session. QHP designation was created by the state of Texas under Chapter 351 of the Texas Tax Code and allows cities to capture state hotel occupancy and sales taxes generated from an eligible hotel to help cities fund public improvements associated with convention centers and related facilities, Werner said.
The city pursued the designation during the 89th Legislature following two companion bills filed by Rep. Carrie Isaac and Sen. Donna Campbell.
"That bill did not pass, but having this feasibility study, we feel strongly [it] will strengthen our position by being able to better demonstrate demand," Werner said. "We thought we were in good shape this year, but we think having this study puts us in a really great position for the 90th session."
Why now?
Adjacent areas and the center itself lack a full-service hotel, which limits the city’s ability to accommodate conferences and overnight tourism. The facility’s demand also outweighs the supply of event space, with large portions of the calendar booked out as far as 2029, agenda documents state.
The existing center—which has not been renovated or expanded since 2009—is also not scaled or equipped to attract a broader market of events. Werner said the current facility is not competitive for many regional and state-level events and that limits the opportunity for overall visitor spending and overall economic return.
"An expanded civic and convention center would give us the opportunity to increase year-round hotel occupancy, boost sales tax and hotel occupancy tax revenues and support existing and new local jobs. We talk about tourism so much in New Braunfels and we're so focused on the summer season but convention business gives the opportunity to generate off-peak tourism ... and that reduces pressure during those high volume times and helps us stabilize those local business revenues," he said.
What's next?
Study results will be presented to council in the fall or winter, according to a June 30 council retreat workshop presentation. By early 2026, the city hopes to have more guidance on decisions related to project scope, financing and legislative strategies, Werner said.
