A full-service hotel, a convention center and shops planned next to Toyota Stadium would get a share of Frisco's hotel tax and a break on city fees under an economic development agreement on the City Council's consent agenda for Tuesday, Oct. 20.
The Chapter 380 agreement is with D96 Hotel & CC, LLC. A staff memo from Interim Assistant City Manager Ken Schmidt describes the project as a 250-room upscale hotel with 15,000 square feet of convention and meeting space, 30,000 square feet of retail and restaurant space, and a parking structure that would be shared with the rest of the new development.
What the city would give
Under the proposed terms, Frisco would hand the developer half of the city hotel occupancy tax the new hotel actually collects. Those payments would stop after 10 years or once they total $5 million, whichever comes first.
The memo calls the $5 million a ceiling, not a promise, and says the city keeps the other half of the hotel tax during the grant period and all of it afterward.
The city would also waive half of its development fees for the buildings covered by the agreement. The memo says the deal does not give away city property or city sales tax revenue.
The state piece
The bigger incentive would come from the state, if Austin signs off. Approving the agreement lets the city and developer apply to the Texas Comptroller under the state's qualified hotel project program. If the project qualifies, eligible state hotel and sales tax dollars produced by the project would be routed through the city to the developer.
The memo says Frisco would pass along only state money it receives and would not use its own funds for those payments. The developer would cover consulting and legal costs tied to the application.
The agreement also includes land and lease arrangements meant to help the project qualify for the state program, according to the memo. The full agreement was not attached to the posted agenda; the memo says it will be provided before the meeting.
