Clear Lake council approves memorandum of understanding with developer of proposed Courtway Park hotel, conference center

first_imgCLEAR LAKE — The Clear Lake City Council Monday night approved a “memorandum of understanding” with a Johnston developer on the proposed hotel and conference center in the Courtway Park subdivision northeast of the intersection of Interstate 35 and State Highway 122. City Administrator Scott Flory says JSM Investment LLC plans to place an 85-room, Marriott-branded hotel and an approximately 6000 square foot conference and event center on Lot 4 of the subdivision.  He says JSM intends to begin construction on the project by June 15th of this year. “They intend to invest a minimum of $13 million of real and personal property into the project. They ultimately will employee 15 full-time equivalent and part-time employees no later than 12 months after the project is opened. They will ultimately enter into a minimum assessment agreement in the amount of not less than $5 million in taxable valuation.” Flory says the city intends to enter into a future economic development agreement that would include construction incentives with an aim for the hotel to open before July 1st of next year.   He says the city would provide a $150,000 incentive to JSM if they begin construction no later than June 15, and provide another $150,000 incentive should the project be completed and have a certificate of occupancy issued by June 30th 2021. Flory says the city intends to provide an economic development forgivable loan not to exceed $1.2 million on completion of the project.   He says the forgivable loan would be forgiven semi-annually, so it would be 20 semi-annual payments on that over a 10-year period.A 10-year property tax rebate is also proposed not to exceed a total of $1.5 million. Flory says the city would capture the money back through tax increment financing as well as hotel-motel tax revenues. A public hearing on a formal development agreement between the city and JSM will likely take place in six to eight weeks.last_img read more