The conceptual plan has been developed and staff are currently concluding the Master Development Agreement (MDA) negotiations, pending final agreement between the City and Preston Hollow regarding the specific tenets of the financing plan. Integral to this is the Municipal Development District's (MDD) willingness to assume the role of owner of the hotel. The tax exempt nature of this project depends on Harris County Appraisal District's acceptance of MDD as owner. The City expects to hear in April regarding the final disposition of the tax exempt status of the hotel.
In whole, the City is now agreeing to a $21.1 million investment, a 5 year underwriting of underperformance to the tune of $500,000 per year for five years, and the elimination of property tax burden on the project. The MDD appears amicable to these proposals. The MDA is currently being prepared with these assumptions, and construction is planned to start this summer.