I've been fortunate to call Midland home for nearly 40 years, and one of the aspects I appreciate most about this town is its commitment to getting things done. Rooted in the resilience and determination of our founding families, this tenacity has been a constant thread throughout our history. Midland is not just a community; it's a community that invests.
In considering investments, we have an outstanding project on the horizon, calling for both private and public investments to address a need in our community. This venture demands dedication and time, and its impact will have an impact for decades to come.
That investment is the proposed 135-room, full-service hotel in downtown Midland. This hotel is not merely an expenditure; it is a strategic investment with multifaceted returns that benefit both the local community and the broader economic landscape. Here are several reasons to support the notion that this use of public and private funds is a judicious and forward-thinking move:
1. Economic Stimulus and Job Creation: The hotel project is anticipated to infuse significant economic stimulus into Midland. Beyond the direct impact of construction jobs, the completed hotel will generate employment opportunities in hospitality, retail, and other related sectors. A thriving downtown with increased foot traffic also creates demand for various goods and services, fostering a ripple effect in job creation.
2. Increased Tax Revenue: While a portion of the initial investment (approximately 35%) is made using Midland Development Corp and City of Midland, the long-term returns in the form of tax revenue are substantial. The estimated $67 million in added tax revenue over the next 22 years (2 years of development and first 20 years of operation), derived from property taxes, sales taxes, and hotel occupancy taxes, represents a return on the city's initial financial commitment ($58.3MM). Keep in mind a lot of those tax dollars are coming from out of town visitors.
3. Property Value Enhancement: The presence of a full-service hotel is expected to encourage new investments and property updates in downtown Midland. This, in turn, will escalate property values, contributing to a more robust tax base for the city. A flourishing downtown area tends to attract further private investments, amplifying the positive impact on property values.
4. Competitiveness and Tourism Growth: The hotel enhances Midland's competitiveness as a destination for conferences, events, and regional tourism. This not only bolsters the local economy but also positions Midland as an attractive and competitive city in the broader region. Increased tourism translates to additional spending on local businesses, further contributing to economic growth.
5. Retaining and Attracting Major Employers: A full-service hotel is a key amenity for major employers headquartered in Midland, such as Diamondback Energy, Endeavor Energy, and Permian Resources. Downtown investment signals the city's commitment to retaining these employers by providing essential amenities for their employees, partners, and vendors. This, in turn, safeguards and fosters the city's economic core.
6. City Brand Enhancement: A vibrant downtown area with quality accommodations elevates Midland's profile and improves its brand nationally. This positive perception can attract not only business travelers but also potential residents and investors, further contributing to the city's long-term prosperity.
7. Strategic Urban Development: Investing in a convention center hotel aligns with the broader vision of strategic urban development. Cities often invest in such projects as catalysts for downtown revitalization, recognizing them as powerful economic engines that drive growth, attract businesses, and enhance overall urban appeal.
8. No Additional Tax Burden: Importantly, the project has been structured to avoid burdening taxpayers with additional or increased taxes. The tax incentives provided by the City of Midland are performance-based, ensuring that the project only receives rebates proportional to its positive impact on property value, sales, and occupancy.
In summary, the investment of dollars in the proposed hotel is a calculated and prudent move that leverages funds to catalyze economic growth, job creation, and long-term financial returns for the benefit of the entire Midland community.