The San Marcos City Council approved an Economic Development Incentive Agreement for Project Cat Tree, a full-service downtown hotel at 429 North Guadalupe Street at the regularly-scheduled meeting Tuesday. Midway Development, LLC will provide a minimum capital investment of $40,000,000. The hotel will have a minimum of 130 keys, will have an event lawn, amphitheater, restaurant, bar, meeting and event space and will be located on Texas State property.
“This project seeks to broaden the range of visitors San Marcos can attract, particularly travelers who may choose to spend overnight trips in Austin or Wimberly when traveling in our region,” according to city documents.
In return for the increased tourism, Midway Development, LLC is requesting a 95% rebate of eligible Hotel Occupancy Tax and Sales Tax, drawing down over a ten-year period as business stabilizes. There would also be a rebate of construction related sales taxes. Because the land is on Texas State property, it is not subject to property tax, so the addition of the hotel would add tax revenue where there has been none, leading to 100% capture of new property taxes by the city, Hays County and San Marcos Consolidated Independent School District.
At the July 1 meeting, council requested a higher minimum wage for the hourly non-tipped jobs at the hotel. The agreement has been amended to establish a minimum wage for these positions at $18 per hour with an annual Cost of Living Adjustment based on changes to the Consumer Price Index, according to the agenda packet.
“For employees — not just working full 40 but 25 hours a week or more — are eligible for benefits, and that includes medical, dental, vision, as well as additional benefits that they can opt into, including 401(k) contributions and a list of others, which I think really separates them ahead of the pack compared to what you might expect for that sector,” said Christian Smith, San Marcos Economic and Business Development manager. “I think for what the agreement is going to secure in terms of higher than average living wages for employees working at the site, along with the benefits package that’s associated with that employment, I think it is certainly aligned with a lot of the goals and direction for a … development project that council has directed staff to go out and recruit, and we’re excited to deliver that to the community.”
The motion passed five to zero with two absent.
Learn more at sanmarcosrecord.com/article/30700,downtown-hotel-one-step-closer-to-becoming-reality.
