HomeMy WebLinkAboutCorrespondenceCentury Square Meeting 10/15/13
In addition to presenting the proposed project there were two discussion items
Use of TIRZ to lower open space and infrastructure costs (not clear what public facilities/infrastructure
exists)
Use of HOT rebate to help hit targets to land full -service hotel versus limited service. They are looking
for a 250 room hotel with 15-25 k meeting space
Phase I of overall project projected to be $150 Million.
Indicated that they are to deliver a full -service hotel with conference space or A&M gets to retain the
proposed grocery lot for their own development of such a hotel. They have grocers ready to come to
College Station, so they really want to meet that obligation (not sure how much we can leverage this
regarding their request for incentives).
I discussed the option of doing a TIRZ where they pay for some needed street improvements
(connection to Rosemary, University Drive, South College, etc.) which might have been required if we
had been able to require a TIA. We would then use the TIRZ to repay them these costs and to cover
some amount of their site (public) costs. They seemed receptive and able to carry the costs.
Objective is to be ready to open hotel with final opening of new stadium (2016?)
Trying to close the gap between 8% RO1 (where they are now with hotel) and 10% ROI to secure their
underwriting. If unable they may need to downgrade hotel.
Cited a recent Houston example where TIRZ was used along with 50% HOT rebate for 10 years. There
was a public street improvement involved (to justify the TIRZ) and no performance measures for the
rebate. It appears the focus was with the full -service hotel and the size of the hotel it would help attract
conferences that would not otherwise consider Houston, which helped increase the size of the pie for
all.
Hotel and overall project are being financed separately which could complicate options for incentives.
Indication to them was that I would talk with CMO and get a green light for Council presentation at Exec
Session in November. Once received, I would need from them some form of a proposal and written
justification for the request.