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Proposed Full-Service Hotel and Conference Center | Wichita Falls, TX - Official Website

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Proposed Full-Service Hotel and ConferencePart-way| Wichita Falls, TX - Official Website Skip to Main Content HomeDepartmentsGovernmentResidentsBusinessVisitorsAbout Us Home Residents Proposed Full-Service Hotel and ConferencePart-wayProposed Full-Service Hotel and ConferencePart-way(Frequently Asked Questions/Talking Points) 1. What is the Proposed Project? The project includes construction of a 150-Room Full-Service Delta Hotel by Marriott, and a 10,500 square foot Ballroom/ConferencePart-wayto be located on the grounds of the MPEC Facilities. The total forfeit of the Hotel is unscientific to be $28.9 million and the Ballroom/ConferencePart-wayspace is unscientific to forfeit $7.6 million, for a total project forfeit of $36.5 million. The hotel is moreover stuff designed to add an spare 96 rooms in the future if demand dictates a need for these rooms. ConceptualDiamondCombined Presentation 2. What is a “Full-Service Hotel”? A hotel that offers a full kitchen, restaurant, bar/lounge, swimming pool, and fitness center. 3. Why is the Project Needed? At present, the City is unable to compete for numerous larger conventions that require a full-service hotel in the vicinity of the meeting space where the conventions are held. This situation puts the City at an lattermost disadvantage when recruiting conventions and erodes revenue to the MPEC operation, ultimately costing the taxpayers spare money. Market studies that were prepared by professional hotel marketing analysts indicate that there are unbearable lost institute opportunities to fully support a full-service institute style hotel and priming part-way if located on the grounds of the MPEC facilities. Currently, there are no operational full-service hotels anywhere in Wichita Falls. Hotel Econometric Study Hotel Market Report Final for Gatehouse 4. Who will own and operate the Hotel? Gatehouse Capital, LLC, who is a national hotel/resort minutiae firm will be the owner of the hotel and the day-to-day oversight and management of the hotel will be Aimbridge Hospitality, who was rated by HotelMerchantryManagement Magazine as the 9th weightier hotel management firm of the top 100 hotel management firms in the nation. 5. Who will own thePrimingCenter/Ballroom Space? The City of Wichita Falls will be the owner of thePrimingCenter/Ballroom Space, which will moreover be managed by Aimbridge Hospitality. 6. How will the ConstructionForfeitof the Hotel Project be Financed? Gatehouse Capital will infringe $19.4 million of the $29.9 million hotel forfeit from a private lending institution as a Senior Priority Loan to be paid when through the operating profits of the hotel. The Wichita Falls 4B Sales Tax Corporation will infringe $9.5 million and loan that money to Gatehouse to partially fund the construction of the hotel, which is expected to be paid when to the 4B Sales Tax Corporation through the operating profits of the hotel. The City of Wichita Falls will donate land, waive towers permit fees, and rebate property taxes and sales taxes that are paid by Gatehouse during construction valued at $400,000 to well-constructed the hotel project financing. 7. How will the ConstructionForfeitof the Ballroom/ConferencePart-waySpace be Financed? The City of Wichita Falls will infringe $7.6 million in 20-Year Tax Exempt Certificates of Obligation and the 4B Sales Tax Corporation will pay the yearly debt service, which is expected to be approximately $520,000 per year. The 4B Corporation will be retiring some outstanding debt in the 2018-19 fiscal year which will lower their yearly debt service expenditures by $350,000. That reduction in debt service obligations will help offset the spare debt service for the priming part-way parking spaces. However, the City has plans to utilize other City-owned property in the firsthand vicinity of the MPEC to replace this parking space. 8. WHY ARE 4B SALES TAX DOLLARS BEING USED TO FINANCE THIS PROJECT? The 4B Sales Tax Corporation was established in 1997 by a vote of the public to encourage economic minutiae through projects that modernize the quality of life in Wichita Falls. This project is eligible for 4B Sales Tax funding considering the Hotel/ConferencePart-wayProject include facilities that modernize the tourism and institute industry and create jobs for the community. This sales tax once exists and its yearly revenue will be used to finance this project. As a result, the taxpayers of this polity will not be required to pay spare taxes to build these facilities. 9. WHAT IS THE ESTIMATED ECONOMIC IMPACT OF THE PROJECT? CBRE Consultants, who specialize in hotel market feasibility and econometric studies, has unscientific the impact to the local economy to be $74 million over a ten-year period. Nearly $46 million of this impact will be felt during the 16-month construction period in the form of 232 construction jobs and related materials purchased. After opening, it is expected that the remaining $28 million economic impact of the hotel will be realized during the first ten years of operations with the megacosm of 72 jobs and the purchase of supplies and materials to operate the hotel. This does not include any spare economic impacts that are expected due to spare conventions that will be brought to Wichita Falls when these facilities are completed. 10. WHY DOES THE CITY NEED TO INCENTIVIZE GATEHOUSE CAPITAL (THE PRIVATE DEVELOPMENT COMPANY) TO BUILD A DOUBLETREE HOTEL? The short wordplay to this question is considering a wall will not loan Gatehouse Capital 100% of the forfeit to build the hotel. The fact is the only way we are going to get an MPEC hotel is to incentivize it, such as proposed in this public-private partnership (P3). Some other cities that have similar plans to build a priming part-way hotel are Tyler, Abilene, Lubbock, Harlingen, Odessa, Decatur and Baytown. We compete with all of these cities for institute business. 11. WHY WOULD THE CITY CONSIDER FINANCIALLY INCENTIVIZING THIS HOTEL AS OPPOSED TO OTHER HOTELS? The City views this hotel/conference part-way as an extension of the MPEC facilities in that this hotel directly impacts the City’s worthiness to vamp larger conventions to the MPEC facilities. Without this full-service hotel, increasingly taxpayer money will be needed to subsidize operations at MPEC due to lost institute opportunities. It is moreover located in the downtown CentralMerchantryDistrict, which should have a uncontrived impact on the revitalization of downtown. Downtown revitalization is a goal of both the City and the 4B Sales Tax Corporation. 12. WILL THE BUSINESS OF OTHER HOTELS IN THE COMMUNITY BE ADVERSELY IMPACTED DUE TO THIS ADDITIONAL HOTEL? To the contrary, all market study indicators suggest that this full-service hotel will provide increasingly hotel nights at existing hotels as larger conventions are attracted to the community. This Doubletree Hotel will only offer 150 rooms, causing institute attendees to typesetting rooms in other limited-service hotels. Additionally, all local and non-local hotel owners/developers had an opportunity to submit a proposal for a similar hotel and chose not to participate. 13. WHY DOES THE CITY BELIEVE THE Delta by Marriott Hotel WILL CONTINUE TO THRIVE WHEN TWO-FULL SERVICE HOTELS IN THE DOWNTOWN AREA WERE NOT ABLE TO REMAIN FINANCIALLY SOLVENT? First, Marriot International is the largest hotel visitor in the world a unconfined reputation for long term success of their facilities. The project will moreover include a requirement of 4% of yearly operating financing to be deposited into a reserve worth for future towers repairs. Second, the improved location on the grounds at MPEC will enhance the City’s worthiness to generate institute merchantry for the hotel. The prior full-service hotels that were in downtown Wichita Falls were either located in a inflowing plain, difficult to access, or were three blocks from our institute facilities. These two hotels were very nice originally, but began to ripen when they lost their competitive position to other cities that built true institute hotels. That is why it is so hair-trigger for our new hotel to be a true extension of MPEC and in the firsthand vicinity. Otherwise, we really won't proceeds much competitive position and would not get the Marriott or a nicer full service trademark to consider Wichita Falls. Finally, the prior two competing full-service hotels had trouble supporting the size of both of their facilities. This Delta Hotel will only consist of 150 rooms and should be hands supported financially at 65-70% occupancy rates. 14. WHY DOES THE CITY NEED AN ADDITIONAL 10,500 SQUARE FOOT BALLROOM? The first professionally prepared market study showed a need for 16,000 sq. ft. of meeting space (14,500 ballroom and 1,500 junior meeting rooms). The second study reduced that to 12,070 sq. ft. (10,570 ballroom and 1,500 junior meeting rooms). This large ballroom will seat well-nigh 600 guests in a refection style set up. The Doubletree or other "full-service" hotels would not consider the Wichita Falls market without a ballroom. Once the full-service hotel is constructed, we expect there to be a need for large banquets at times when the MPEC refection space is stuff consumed by other events like Hotter N Hell Hundred, Ranch Roundup, Gun and Knife Shows, Home and Garden Show, Heart of a Women, Sheppard Military Affairs banquets, Christmas Magic, and the T-O Fair, just to name a few. 15. HOW WILL PARKING AT MPEC BE AFFECTED BY THIS HOTEL/CONFERENCE CENTER? It is important that this new hotel/conference part-way be located in the firsthand proximity of the MPEC facilities, which will slosh approximately 160 existing parking spaces. However, the City has plans to utilize other City-owned property in the firsthand vicinity of the MPEC to replace this parking space. 16. WHAT OTHER OPERATING INCENTIVES ARE BEING PROVIDED BY THE CITY TO GATEHOUSE CAPITAL? The City and County have indicated that they are willing to proffer a standard 10-Year Property Tax Abatement to Gatehouse, whereby the property taxes that would be owed to the City/County will be abated at 100% in Year 1, 90% in Year 2, 80% in Year 3, and so on until the ten years expire. After the tenth year, the City and County will be receiving 100% of property taxes that would not otherwise be generated if the hotel was not constructed. Additionally, the City would be granting a rebate of any local Hotel Occupancy Taxes that are placid by the hotel during the first ten years only to the extent that existing revenue received from other hotels is not eroded. Finally, the 4B Sales Tax Corporation will be granting 100% rebate of any sales taxes that would have been received by the 4B Corporation for a period of ten years. It is important to note, that none of this revenue, or incentive, would have been generated without the hotel stuff constructed. Furthermore, as these incentives lower the operating forfeit for the hotel, it helps ensure that net operating profits are misogynist to repay the 4B Corporation’s debt service on the immuration needed to construct the hotel. 17. WHAT IS THE EXPECTED TIMELINE FOR THE PROJECT? It is predictable that full diamond specifications, contract documents, and financing for the project will be completed in August/September 2017. Once those three elements are completed, construction can begin. It is predictable that construction will require 16 months, with a grand opening stage unscientific to be January/February 2019. 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