Mount Pleasant council unanimously approves Home2 Suites development agreement

The Mount Pleasant City Council voted unanimously to approve a development agreement with MPTX 2 LLC to build a Home2 Suites extended-stay hotel near Christus Hospital.

City Manager Vine told the council the project is a "$14,100,000 investment," would include 84 rooms and about 19.5 full-time equivalent positions, and would be located close to Christus Hospital. Vine said the city will offer a package of incentives to the developer including a 95% hotel occupancy tax rebate for years one through five, a 25% real property tax rebate for years one through five, a 100% personal property tax abatement for five years and a 100% rebate of city permit fees (approximately $54,000). He said the city rebate cap for this agreement is $1,195,869 and that the cap or the five-year term would limit total rebates, "whichever comes first."

The council received no substantive objections. A council member moved to approve the "substantial financial final form of the development agreement" and to authorize the city manager and city attorney to negotiate the final agreement in accordance with the substantive terms; the motion passed unanimously. The city recorded the approval as four votes in favor on the record.

The agreement requires the developer to maintain the Home2 Suites brand, carry property insurance, remain current on taxes, and meet other terms set out in the draft agreement. City staff noted that if the developer failed to remain current on taxes the city would have remedies set out in the contract.

The council did not take additional public comment on the item and directed staff to finalize the contract language and return any final administrative changes as needed.