1991-10-28 Regular Meeting - Laserfiche WebLink

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• CITY OF LA PORTE INTER-OFFICE MEMORANDUM OCTOBER 21, 1991 TO: Mayor and City Council FROM: Robert T. Herrera, City Manager ~ SUBJECT: Sylvan Beach Hilton Hotel Project The City has been asked by Harris County Precinct 2 to continue working with them in promoting the hotel conference center development proposed by Sunbelt Hotels at Sylvan Beach Park. The County has selected two firms to assist them in the development of a long term lease for this proposed project. The firms will appraise the property where the Hotel Conference Center is to be erected. From these appraisals the annual lease fees will be derived. The County requests, in the spirit of co-venturing this project, the City advance $4500 for professional appraisal services and surveying. This amount of money will be reimbursed to the City in a format that is agreeable to both the City and Sunbelt Hotel. For example: the City may be reimbursed by Sunbelt from proceeds raised from the construction of the conference hotel or the City funds can be applied to the ownership of a suite. These are just two suggestions. The details have not been worked out. To support this request, I would recommend appropriating money from the Hotel/Motel Fund. During the budget workshops, we anticipated the City spending some Hotel/Motel Occupancy Tax money to keep this project alive. I'm convinced that the expenditure of $4500 from this account will come back to the City in several economic attributes. For instance, once complete, the hotel will require the employment of approximately 120 new full time employees and additional part time and contractual personnel. The City sales tax conservatively will account for $40,000 during the first year of operation. Additionally, the hotel will pay the City conservatively $80,000 in occupancy tax dollars after one year. Lastly, there will be an influx of new dollars left in La Porte by both the hotel people as well as visitors who use the complex. I recommend the City Council authorize my office to participate with Harris County Precinct 2 on this joint venture. RTH/ms