Two bills sent to the governor for final approval could release state funding for the renovation or replacement of a hotel in Waco, located adjacent to the Waco Convention Center. The first bill, House Bill 5012, proposes adding Waco to the list of eligible cities for the state's "qualified hotel project" program. This program offers a 10-year rebate on state hotel occupancy taxes and state sales taxes for hotel construction or renovation within 1,000 feet of a city-owned convention center.
The Hilton Waco, a 195-room facility that opened in 1981, could potentially benefit from this program as it is situated on city property near University Parks Drive and Franklin Avenue. The 11-story hotel last underwent significant renovations in 2008, which included room upgrades, the addition of a ballroom, exterior modifications and the inclusion of a restaurant.
Since its inception in 1993 to assist Houston, the qualified hotel project program has been authorized for 51 municipalities in Texas. However, only 13 projects have been constructed and prepared for occupancy, with the state paying a total of $204.2 million in rebates by August 2022.
While discussions regarding the development approach are ongoing, city and hotel officials are considering options such as renovating the existing Hilton or constructing a new hotel nearby. A city-commissioned study suggested relocating both the convention center and the Hilton to create a vast green space connecting the riverfront to downtown, but the Waco City Council has not committed to this vision.
Once the qualified hotel agreement is in effect, developers will retain the state rebate for the first 10 years of hotel operation. Following this period, the state will assess the return on investment for the subsequent 10 years. Finally, 20 years after the project's completion, the state will determine if the project has met the return-on-investment requirements or issue a bill for any shortfall in achieving the established goals.
The Hilton Waco, a 195-room facility that opened in 1981, could potentially benefit from this program as it is situated on city property near University Parks Drive and Franklin Avenue. The 11-story hotel last underwent significant renovations in 2008, which included room upgrades, the addition of a ballroom, exterior modifications and the inclusion of a restaurant.
Since its inception in 1993 to assist Houston, the qualified hotel project program has been authorized for 51 municipalities in Texas. However, only 13 projects have been constructed and prepared for occupancy, with the state paying a total of $204.2 million in rebates by August 2022.
While discussions regarding the development approach are ongoing, city and hotel officials are considering options such as renovating the existing Hilton or constructing a new hotel nearby. A city-commissioned study suggested relocating both the convention center and the Hilton to create a vast green space connecting the riverfront to downtown, but the Waco City Council has not committed to this vision.
Once the qualified hotel agreement is in effect, developers will retain the state rebate for the first 10 years of hotel operation. Following this period, the state will assess the return on investment for the subsequent 10 years. Finally, 20 years after the project's completion, the state will determine if the project has met the return-on-investment requirements or issue a bill for any shortfall in achieving the established goals.
