Incentives are likely for hotel near arena

Fort Worth is about to put more skin in the game in the Cultural District, lining up a package of financial incentives for a 250-room hotel that will serve the district’s planned new multipurpose arena.

The city’s investment in the $52 million hotel, specified in an economic development agreement scheduled for a City Council vote on Tuesday, comes mainly in the form of $7.8 million in hotel taxes scheduled to be returned to the developer over a 10-year period.

The land on which the hotel is to be built, on University Drive across from the Modern Art Museum, will be donated to the city and leased back by the developer for 25 years at a nominal cost, $100 a year.

That means the hotel will escape property taxes on the land, but not on the millions of dollars in improvements.

All told, said Mayor Betsy Price, “The numbers bode well for both parties involved.”

Anyone who believes otherwise should tell their City Council representative or attend Tuesday’s 7 p.m. council meeting.

This hotel plan or something like it in or very near the Cultural District has to be seen as part and parcel to the multipurpose arena plan approved by voters in November.

The 14,000-seat arena is expected to draw major events, from equestrian and other livestock-related events like those held in the Will Rogers Coliseum, to sporting events and concerts.

A nearby hotel will be a major advantage, if not a necessity.

City incentives likely will be a part of any such plan, but the council’s job is to decide whether these planned incentives are right for this hotel.

There should be no doubt that the arena itself is a good deal for Fort Worth.

It’s expected to cost $450 million, and the city’s investment is capped at $225 million.

The remainder, plus any cost overrun, is to be paid by private donations.

The council was told on Tuesday that construction on the arena is expected to begin in January 2017, with the new venue opening in December 2019.

Tax incentives like those for the hotel have raised objections from Tea Party groups and others recently. The council should be ready to defend this plan.

This story was originally published July 29, 2015 at 5:40 PM with the headline "Incentives are likely for hotel near arena."