The Midland Development Corporation (MDC) convened a special meeting on Monday, January 22, to approve the master development agreement involving the MDC, the City of Midland, and Midland Downtown Renaissance, LP (MDR). MDR is the developer behind the proposed Hotel Santa Rita project.
The meeting commenced with the MDC board receiving a comprehensive overview of the project’s financials. Sara Harris, the executive director of the MDC, disclosed that the total hard and soft costs for the Hotel Santa Rita project amounted to $169.5 million. MDR committed $124.5 million to the project, sourced from local families and foundations, while the MDC would vote to contribute $45 million. Public funding would constitute 35.6% of the project’s overall funding.
Harris referenced the public funding associated with comparable hotel projects. The Odessa Marriott, costing an estimated $80 million, was funded 41% by public sources, including the City of Odessa and the Odessa Development Corporation. The DoubleTree Abilene Downtown Convention Center hotel, which cost an estimated $53 million, used a public bond for 46% of its funding. The Omni Dallas Convention Center hotel cost an estimated $500 million, and 100% of the funding came from a bond. Harris mentioned that the MDC has cash reserves to cover its existing commitments and the hotel project. The projected net cash remaining for the MDC at the end of fiscal year 2024 was approximately $10.9 million, with subsequent estimates of $5.4 million in 2025, $7.4 million in 2026, $10.3 million in 2027, and $10.8 million in 2028.
Harris shared potential collaborations with the hotel project, including partnerships with Midland ISD for culinary arts and hospitality management classes, culinary arts credits with the University of Texas Permian Basin and Texas Tech University, and hospitality management internships and post-graduate opportunities with Texas Tech University.
Two Midland citizens raised concerns about the Request for Proposal (RFP) process during the public comment period. Board members said the evaluation of the four hotel proposals involved 10 metrics, including each hotel’s value to downtown, the potential to transform downtown, and the development team’s capabilities. They emphasized the consistency in scoring between the three MDC and three city council members and addressed the Hotel Santa Rita project as the standout proposal.
Board member Elvie Brown expressed reservations about the project’s financial considerations, and he cast a lone vote against the proposal. The agreement passed the MDC with a majority vote and will move to the city council for a vote on Tuesday, January 23.