The Midland City Council convened at 10 am on Tuesday, January 23, with a notable agenda item — the vote on the agreement for the proposed Hotel Santa Rita project involvingthe Midland Downtown Renaissance, LP (MDR), Midland Development Corporation (MDC), and the city council.
City staff provided an overview of the project and insights intodowntown Midland. They highlighted the city’s involvement in previous downtown projects like the Bush Convention Center and Centennial Park. Recently, the council established the city’s second Tax Increment Reinvestment Zone and a downtown entertainment overlay district.
Staff underscored the significance of downtown, noting an assessed property value of $67.3 million per acre — triple the value per acre of any other part of the city. They argued that higher taxes assessed downtown contribute to other areas of town by boosting the city’s general budget.
Staff brought up similar hotel projects, such as Oklahoma City’s Omni Convention Center Hotel, which cost $235.5 million to build, and public incentives covered 36%. The proposed Hotel Santa Rita project, estimated at $169.5 million, would have 35.6% coverage from public incentives.
Following the staff presentation, Mayor Lori Blong opened the floor for public comments. Eight citizens expressed concerns,including workforce availability, issues with public incentives, the hotel’s profitability, and perceived oversight of other hotel proposals. Thirteen citizens voiced support, citing economic loss from no convention hotel, tax rebates not costing the city, doingvisionary things, and the transformative impact on downtown.
After public comments, council members shared their opinions. Councilman John Norman called for a fairer proposal process, Councilman Scott Dufford expressed his enthusiasm for downtown revitalization, Councilwoman Robin Poolequestioned the amount of funds allocated, and Councilwoman Amy Burkes shared how previous MDC boards and city councils made decisions to make Midland the town it is today.
Councilman Dan Corrales said he believes the public ultimately wants the council to be honest. Mayor Blong addressed that the city is not giving anything away but is rebating tax increases that don’t currently exist. Blong finished her comments by saying the hard work starts tomorrow when the hotel developers have to deliver on their promises.
The agreement passed 5-2, with Corrales and Poole casting the dissenting votes.
Other agenda items included a $1.2 million contract to replace the north fence along Loop 250 at Midland Airpark, and agreements with the Midland Athletic Syndicate (MSA) for $275,000 towards a facility and a $1 annual lease of the property to MSA. All agenda items passed unanimously.
The next Midland City Council meeting will be Tuesday, February 13, at 10 am.