Nov 14th 2014 | Posted in P3/PPP, Vertical by Texas Government Insider

City of Abilene logo

City of Abilene logo

The Abilene City Council recently voted to recommend that the Amarillo Local Government Corp. approve a public-private partnership agreement to build a new convention center hotel, a ballpark/event center, and a parking lot at an estimated cost of about $92 million.

The agreement calls for the hotel developer to build a $45 million hotel featuring 225 rooms, 17,000 square feet of meeting space and other amenities to earn a four-diamond rating from AAA. Under the agreement, the city agrees to lease the hotel to the hotel developer for up to 80 years, but will retain ownership of the land. City officials also agreed to pay about $14.3 million to build a 24,000- to 36,000-square-foot parking garage with at least 750 spaces. A private company will oversee construction of the garage and lease space on the ground floor to retail tenants, city officials said.

Under the pact, the hotel developer agreed to lease 150 parking spaces in the parking garage at a cost of $12,000 annually and Potter County officials also are considering leasing 150 spaces in the parking garage. Construction on the hotel is scheduled to begin in August 2015 and the hotel will open for business in February 2017. Construction on the parking garage could begin as early as July 2015 and be completed by July 2016, city officials said.

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