Published: July 18, 2008 12:23 am            

New hotels could be on the horizon

Two new hotel developments could be a step closer to reality in Huntsville if the proposed projects find favor among the Tax Increment Reinvestment Zone board of directors on Monday.

The directors will meet at 3 p.m. in the City Hall conference room.

Proposals for a Hampton Inn and Marriott Hotel project will be presented by Glenn Isbell, special projects director for the City of Huntsville.

TIRZ directors include Dalene Zender, Sam Dominey, Richard Montgomery, Danny Pierce, Robert Autery and David Moorman.

Ex-officio members are Patricia Allen, Charles Rushing, Leroy Ashorn, Kevin Evans, Winston Duke, Glenn Isbell, Stan Hamrick and Thomas Leeper.

Todd Armstrong, TIRZ chairman, said the two products have a combined value of $11 million.

“Because of confidentiality, we’re very cautious of the information that is released until the projects move forward and are presented to City Council,” he said. “Each developer visited with Glenn Isbell, and the TIRZ board will be reviewing the information with his assistance during the meeting.”

At this time, the number of rooms and other details about the hotels have not been released.

Armstrong said the TIRZ board will vote on whether to send a recommendation to City Council for final approval.

“The choice lies with the City Council to make this a reality,” he said.

The expected locations for the projects are tracts near Smither Road off Interstate 45.

As part of the proposal, both developers will be asking the TIRZ board for help with public infrastructure.

“The TIRZ assists development for public reimbursement for public infrastructure,” Armstrong said. “We are a mechanism that allows developers to get reimbursed for providing public infrastructure that they will never own.”

Armstrong said the process is a standard tool used by developers throughout Texas.

“The developer makes a deal with the city to build public infrastruture such as streets, water and sewer,” he said. “Then they continue to build their private development and once that is complete, we begin to reimburse the developer for the public infrastructure over a 10- or 12-year period.

“It’s a good deal for the city — it’s out no risk at all.”

In the event that a developer fails to complete its private development, Armstrong said reimbursement would not be given.

Armstrong said he believes the projects would be a big boost for the development and growth of Huntsville.

“I think so ... one project is valued at $5 million and the other at $6 million,” Armstrong said. “That’s pretty substantial. Seeing the growth at Sam Houston State University, the Texas Department of Criminal Justice and the increase in our hotel/motel tax — the demand certainly brings in the traffic.

“Having more rooms and a wider variety of choices of rooms will allow us to capture a segment of the traveling public and give them more choices while doing business in Huntsville.

“Wouldn’t it be wonderful to have two new hotels to bring more people to Huntsville who will buy their gas here, eat here, shop here and do their business? Why not capture those dollars?”

Similar projects were proposed to TIRZ earlier this year, including a Hampton Inn & Suites north of Raven Nest Golf Course and on the south side of Smither Road west of Interstate 45.

Buffalo Lodging LLC of Arlington proposed a four-story building, consisting of 93 units, along with an indoor pool and spa and 1,000 square feet of meeting space.

Construction square footage totaled approximately 60,000 square feet, and the estimated appraised value for the hotel was $5 million.

Another proposal from K Partners Hospitality Group of San Antonio was discussed by TIRZ for two hotels and a conference center on 13.28 acres of land east of Interstate 45 that housed the Sam Houston State University Agriculture Center.

The deal that was projected to be finalized in December 2007 did not materialize.

        

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