Cedar Park officials agree convention center, hotel and retail space

0


[ad_1]

Cedar Park City Council has approved a development deal for a convention center, hotel, and home furnishings retail project that is expected to generate the largest sales tax revenue in city history. city.

The city still needs to seek rebates from the state’s sales tax and hotel occupancy for development in northwest New Hope to work, officials said.

The 117-acre development, which will be built at 750 E. New Hope Dr. near U.S. Toll Highway 183, would bring in $ 435 million in tax revenue to the city in its first 25 years, said Ben White. , director of the city’s economic development. The developer is CPM Development LLC.

City council unanimously approved the deal at its Thursday night meeting.

White called Northwest New Hope Development a “one-time project in a generation.”

“The project would secure a hotel and convention center that the city has long sought to help attract more visitors to Cedar Park and provide a much-needed gathering place,” he said at the council meeting.

The city is reportedly offering $ 45 million in rebates on municipal sales tax, hotel occupancy taxes and project property taxes to the developer, as part of the lead developer agreement. The rebates would help pay for road and intersection improvements, according to the city.

The developer is required to invest a minimum of $ 400 million in the Northwest New Hope project. The project must generate a minimum of $ 450 million in sales per year and create a minimum of 725 jobs in the first year of opening to be eligible for discounts, according to the agreement.

The Northwest New Hope Project would have as its mainstay NFM (Nebraska Furniture Mart), a home furnishings retailer that also sells appliances, electronics and flooring. NFM operates the three largest home furnishings retail stores in North America, according to the City of Cedar Park website.

NFM would occupy 500,000 square feet of the project. The project would also include a 250-room full-service hotel, a 30,000-square-foot city-owned convention center; 250,000 square feet of commercial development and a 700,000 square foot warehouse to serve NFM.

READ: Officials: Construction to begin in 2022 in Cedar Park’s $ 350 million Bell neighborhood

A full service hotel includes a restaurant / bar, swimming pool and gym. The city currently has no full-service hotels, White said.

Jeff Lind, director of strategy and operations for NFM, said the company had scoured the country before choosing Cedar Park. He wanted to find a place that would provide a good quality of life for employees, he said.

“It hit a home run,” Lind said of Cedar Park.

For the project to work, the city must apply for discounts under the state’s Qualified Hotel Program. The program allows cities to receive discounts on state hotel occupancy taxes and state sales taxes from a qualified hotel near a convention center for the first 10 years of operation. the hotel.

The rebates the city would receive from the state over a 10-year period is estimated at $ 355 million, White said.

READ: Baseball scouting company’s move to Cedar Park set to bring in $ 20 million in revenue

If the state grants the rebates, it will receive about $ 1 billion in new tax revenue in the first 25 years after the project opens, White said. Construction could start as early as 2024, with NFM tentatively planning to open in 2025.

The project would make Texas the first state to have two NFM outlets, White said. There’s one near Dallas.

“This is a very rare opportunity for a city like ours,” said Cedar Park Mayor Corbin Van Arsdale said. He said the Northwest New Hope Project would help meet the city’s goals, including increasing the city’s tax base and cultivating projects that make the city a regional destination.

“I am totally blown away,” said Board member Mel Kirkland of the project. “This makes Cedar Park a focal point for western Williamson County.”

More information about the project can be found at cedarparktexaswins.com.

[ad_2]

Share.

Comments are closed.