Feasibility study shows market for a 65,000-square-foot flexible event complex and 400-room headquarters hotel; council asks for more analysis

Consultants from Hunden Strategic Partners and TVS Architects presented phase 2 of a feasibility study that models a convention and event complex linked to a 400-room headquarter hotel and estimated impacts and funding options.
The study's recommended program includes a 35,000-square-foot exhibit hall that can combine with ballroom space to create up to about 65,000 square feet of sellable function space; a 12,000-square-foot junior ballroom; 24,000 square feet of meeting rooms; and a 212,000-square-foot facility footprint. The associated headquarters hotel program in the study is approximately 400 rooms with a 15,000-square-foot ballroom, 8,000 square feet of junior ballroom and 7,000 square feet of meeting rooms.
Estimated capital costs in the concept planning included an approximate hard-construction cost of $212 million for the convention center and a total combined project cost (center, hotel, parking and soft costs) on the order of roughly half a billion dollars. The consultants modeled hotel stabilization at about a 71% occupancy and an average daily rate (ADR) of $221 by year 4 and projected 30-year net-new spending into the community and tax revenues derived from increased hotel nights and local spending.
Consultants flagged potential funding tools available under Texas law, including project finance zone (PFZ) arrangements and HB 4347 mechanisms to capture incremental state hotel, sales and mixed-drink taxes in a defined radius for up to 10 or 30 years to help repay debt. They described case studies (Dallas, Austin, Rochester, Manhattan KS, Tucson) to illustrate funding mixes where state and incremental local taxes offset much of the public contribution.
Council discussion focused on site priorities (the study ranked five core nodes, with University Drive near hotel clusters scoring highest), partnerships (city/university/region/private) and whether the local market has the venue-demand mix to support the proposed size. Several members asked for the full phase 2 report and additional granular pro formas; others emphasized the need to identify potential partners and any legislation necessary to capture state tax increments. No binding decision was requested; staff will distribute the final report to council and follow with workshops to explore next steps.