ANCHORING DOWNTOWN MIDLAND THROUGH TRANSFORMATION

Midland Downtown Renaissance, LP (“MDR”) is a collaborative effort by leading Midland-based companies, foundations and investors. The proposed project is a 135-room, full-service hotel situated adjacent to Centennial Park and the Bush Convention Center that will include 8,000 square feet of meeting space, retail and restaurant locations and an 800-space parking garage. The garage will provide parking for the hotel, the public and downtown businesses.

HOW WILL THE SANTA RITA HOTEL BENEFIT OUR COMMUNITY?

  • Downtown Midland has been transformed over the past decade through Centennial Park, the Bush Convention Center, and community and corporate investments.

  • More recreation, dining and residential capacity exists than ever before, meeting the needs of thousands of Midlanders and visitors who come downtown every day for work and to visit the region.

  • Midland is at the heart of the nation’s energy production leading the nation in energy production, job growth and per capita income. Our city has the opportunity to seize economic potential downtown, with a hotel project that will be the anchor of the community that will serve Midlanders and visitors alike for decades to come.

  • Downtown lacks a convention center hotel to serve its citizens and travelers for business, leisure and events. Business travelers look elsewhere for quality hotel rooms – outside downtown, or out of Midland entirely. Large events at the Bush Convention Center are unobtainable, amounting to millions of dollars in lost economic activity. Weddings, galas and corporate board meetings bypass downtown. Signature events have abandoned Midland due to unsatisfactory accommodations.


HOW WILL THE SANTA RITA HOTEL BENEFIT DOWNTOWN BUSINESS OWNERS?

  • Hotels are essential for business and tourism. Hotel stays create revenue and jobs, but it encourages growth in other sectors of the economy. This is called the multiplier effect, which is how many times the money spent by a visitor circulates through the local economy and better the City of Midland and the Permian Basin.

    • Job Creation: This project would create numerous new job opportunities, from construction to operations. This job creation helps the entire community.

    • Invite Visitors: Midland needs a high-quality, full-service hotel to encourage travelers, both business and personal, to stay and enjoy their time in our great city.

    • Purchase local foods, goods and services: Local, state and federal taxes collected from the sales return to funding the government and its agencies, which translates into improved infrastructure and increased essential services.

    • Invite competition: MDR has seen firsthand the results of a revitalized downtown and how one excellent hotel brings more innovation to the area. Surrounding properties will increase in value as improvements are made, further increasing the property tax base.

    • This project is needed.

  • Additionally, the City of Midland has recently made great progress lining up Downtown for new investments such as this hotel

    • Recently reestablished the tax increment investment zone, or TIRZ, downtown.

      • The goal of the TIRZ is to promote economic development and redevelopment in specific areas of the city.

      • The TIRZ would capture increased property tax revenue, generated by a development project, and re-invest it back into the same area to help fund public infrastructure.

    • Establishing the Centennial entertainment overlay district

      • The overlay display would cover roughly 49.5 acres, which would be Centennial Park and a couple of blocks perimeter to the park.

      • As Mayor Blong said recently, "… what [we] really have [as] a vision for the long term benefit for this entertainment district is to encourage people downtown to have a more vibrant and robust downtown experience. Whether that’s for families and children and folks playing during the day or evening activities for people with nightlife."

  • This Hotel project is the next logical step in revitalizing downtown Midland


HOW WILL THE INVESTMENT FROM THE MIDLAND DEVELOPMENT CORPORATION/CITY OF MIDLAND WORK?

  • The MDC was created in January 2002 to promote business expansion, job creation, and capital investment to diversify and strengthen the Midland, Texas, economy. The focus of the Midland Development Corporation is on creating opportunities for businesses and families located within Midland. Midland voters made these incentives possible when they approved a quarter-cent increase in the local sales tax rate, with additional revenues earmarked to promote economic development and diversification.

  • As consideration for the planning, designing, developing, and constructing the Project, MDC will make five disbursements over a 5 – 6 year time frame based upon the development milestones for the Hotel and Parking Garage.

  • The Investor Group is obligated to commit to funding its risk capital during the planning and construction period prior to payments from the MDC will be made.

  • Public funds will represent approximately 35% of the cost of the project, and private funds will make up the balance.

  • The City of Midland will provide property tax rebates and hotel occupancy tax rebates for ten years.

  • Cities including Dallas, El Paso, Waco, and Abilene have provided public support for downtown convention center hotels. The City of Dallas funded 100% of its convention center hotel. Abilene covered 46% of its hotel cost with public funds through a bond issuance. These proportionate municipal contributions outpace Midland’s 35% investment.

  • This project will not burden the taxpayers with any additional or increased taxes. Incentives provided by the City of Midland through the Midland Development Corporation are based on performance – the project can only receive incentives based upon the development of the property and what it generates in property value, sales and occupancy.


WHO IS PAYING FOR THE HOTEL? AND HAS THAT FUNDING BEEN SECURED?

  • Total project costs are estimated to be greater than $150 MM

  • MDR held discussions during 2023 with corporate partners, individual investors and local foundations, the vast majority are based in Midland.

  • We plan to fund the project using all equity investment and have no debt on the project at this time

  • The fundraising discussions and progress have been very successful thus far


HOW LONG WILL IT TAKE TO BUILD THE HOTEL?

  • We anticipate the planning, designing and construction to take 36 months to complete.

  • Plan for the opening of the Hotel in late 2026 or early 2027

WHO CURRENTLY UTILIZES DOWNTOWN AND HOW WOULD THE CONVENTION CENTER HOTEL ENCOURAGE MORE UTILIZATION?

  • Cities make bold investments in downtown hotels because they are powerful economic engines.

  • Midland’s downtown represents $67.3 million in commercial real estate value per acre, which is more than triple the value per acre of any other part of the city.

  • The city’s economic core is anchored by companies headquartered in Midland, including Diamondback Energy, Endeavor Energy and Permian Resources.

  • Downtown investment is the city’s commitment to retaining major employers, and providing amenities for their employees, partners, and vendors.

  • The hotel location was previously the site of buildings vacant for decades, generating minimal economic benefit.

    • Once complete, the hotel project will generate a financial return for taxpayers of an estimated $67 million in added tax revenue over the next 22 years (two years of development and the first 20 years of operation), paid by outside visitors and guests of the hotel.

    • There will also be continued tax revenue for the life of the hotel. That’s approximately $9 million in tax revenue exceeding the initial tax dollar investment in the project over the first 20 years of operation. The taxes that will be generated by the hotel are property taxes, sales taxes, and hotel occupancy taxes.

  • In addition to the added tax revenue, a full-service hotel will encourage new investments and property updates downtown, increasing downtown property values. It has the potential to attract greater private investment downtown and across Midland. It will help Midland
    become a more competitive destination for larger conferences, more events, and a larger share of regional tourism.

  • The City invested $43 MM for the Barbara and George H.W. Bush Convention, which is a wonderful, but underutilized, asset

  • The City and local investors funded $18 MM in a public-private partnership for the transformative Centennial Park.

  • This 4-5 star hotel is a wonderful complement to these already existing assets in our City.


Midland leads the nation in energy production, job growth, and per capita income. Our city has the opportunity to unleash economic potential downtown, with a hotel project that will serve Midlanders and visitors alike. This positive economic impact will bring increased revenue, raise Midland’s profile, and improve the city’s brand nationally.