Plans for Convention Center Headquarters Hotel ProceedPublished: Wednesday, July 19, 2017
More than half of the City funding comes from four revenue sources generated by the hotel itself, including hotel property taxes, sales taxes from hotel operations, hotel occupancy taxes and state matching funds from the sales and hotel occupancy taxes.
The other six funding sources are tax increment financing (TIF) districts and revenue from leases and the hotel land sale. Two existing TIF implementation plans (the Downtown/MAPS TIF district and the Devon World Headquarters TIF district) will be amended to use currently uncommitted funds for the hotel project.
The agreement also allows the City to participate in revenue sharing after the fifth year of occupancy, with Omni required to pay 10 percent of any net operating income over $20 million, with a $15 million cap. The hotel will also pay a yearly rent of $200,000 for 25 years, along with tax payments of $1.4 million minimum per year for 30 years.
About the hotel
Early plans for the Omni hotel call for a mid-rise tower to be designed by architect HKS. The design includes 570,000 square feet of space with six restaurants and bars totaling 16,500 square feet of that space and ballrooms/meeting rooms occupying 50,000 square feet. The hotel will be built just north of the MAPS 3 Convention Center near the MAPS 3 Scissortail Park and Chesapeake Energy Arena.