New $324 Million Hotel in McKinney to Receive Millions in Tax Collections
The developer of a new $324 million hotel in McKinney will recoup millions in tax collections thanks to a deal it struck with the city. The terms agreed to during the Tuesday McKinney City Council meeting include a 75% reimbursement of sales, property and hotel occupancy taxes generated at a new JW Marriott hotel at Craig Ranch, a 2,200-acre mixed-use development north of Dallas.
Hotel Features and Location
The resort hotel will include 290 rooms, 51,575 square feet of conference space, a resort-style pool with a lazy river, restaurants, pickleball courts and 45 for-sale condos. Branded as JW Marriott Resort McKinney Craig Ranch, it will be located on around eight acres at the corner of Collin McKinney Parkway and Van Tuyl Parkway.
Tax Reimbursement Agreement
The minimum reimbursement for the project is $13 million, with an upper cap of $18 million. The initial agreement term is 12 years, with options for extensions until the minimum $13 million threshold is met. The city and developer also plan to recoup development costs through state tax collections.
The agreement notes that subject to state approval, $31 million in state hotel occupancy, sales and alcohol taxes generated by the property and received by McKinney from the state will go to the developer, after which the city would split those state tax collections it receives 50-50 with the developer. A spokesperson for the city of McKinney noted the plan for recouping state taxes had no upper limit and would stand for ten years.
Qualifying for Reimbursements
To qualify for the reimbursements — which will take the form of grants — the developer must meet certain criteria, including feasibility and market studies, as well as debt and equity financing commitments. Construction on the hotel should begin by Dec. 31, 2026, with a completion date slated for April 30, 2029.
The developer must also maintain JW Marriott branding throughout the life of the agreement, provide financial and tax documentation, not be delinquent on taxes, provide public amenities and generally adhere to the terms of the agreement.
City’s Commitment to Economic Development
“This is a transformational project that reflects the City of McKinney’s commitment to thoughtfully planned growth and economic development,” McKinney Mayor George Fuller said in a statement. Fuller noted “a luxury resort like JW Marriott is not just welcome, it’s needed” given the city’s economic development initiatives including the airport’s expansion into commercial service, partnership with the CJ CUP Byron Nelson PGA golf tournament and attractions like the VENU Sunset Amphitheater, among others.
A statement from the city noted the McKinney Community Development Corporation and the McKinney Economic Development Corporation would be considering additional incentives for this project at upcoming meetings this summer.
Conclusion
In conclusion, the new $324 million hotel in McKinney is a significant development that will bring in millions in tax collections for the city. The tax reimbursement agreement and the city’s commitment to economic development make this project an exciting opportunity for the city and its residents.
FAQs
Q: How much will the developer recoup in tax collections? A: The developer will recoup 75% of sales, property and hotel occupancy taxes generated at the new JW Marriott hotel, with a minimum reimbursement of $13 million and an upper cap of $18 million.
Q: What are the features of the new hotel? A: The resort hotel will include 290 rooms, 51,575 square feet of conference space, a resort-style pool with a lazy river, restaurants, pickleball courts and 45 for-sale condos.
Q: When will construction on the hotel begin and end? A: Construction on the hotel should begin by Dec. 31, 2026, with a completion date slated for April 30, 2029.
Q: What is the city’s commitment to economic development? A: The city is committed to thoughtfully planned growth and economic development, with initiatives including the airport’s expansion into commercial service, partnership with the CJ CUP Byron Nelson PGA golf tournament and attractions like the VENU Sunset Amphitheater.
