Developer Agil seeks collaboration with Nogales officials to explore hotel project incentives

The City of Nogales held a regular meeting on September 3, 2025, where key discussions centered around potential economic development projects and the city's role in facilitating them. The meeting featured a presentation from a developer, who outlined plans for a new hotel project aimed at enhancing tourism in the area.

The developer emphasized the importance of collaboration with city officials, particularly the city attorney and relevant staff, to explore various economic incentives that could support the project. These incentives included sales tax reimbursements, property tax abatements, and reductions in fees associated with building permits and plan reviews. The developer expressed a desire to establish a mutually beneficial development agreement, noting that any such agreement would require approval from the mayor and council.

Council members responded positively to the proposal, with one member recalling a similar hotel experience in Yuma, highlighting the potential benefits of having a Marriott in Nogales. The council member noted that increased hotel options could attract more tourists, enhancing the local economy.

Further discussions revealed that the project was still in its preliminary stages, with the developer indicating that they needed approximately four to six weeks to finalize construction drawings before obtaining pricing from general contractors. This timeline was acknowledged as crucial for moving forward.

Another council member raised questions about the specific requests from the developer, seeking clarity on what the city could do to assist. The developer reiterated the need for groundwork to be laid for certain incentives, such as designating a central business district, which could take time. They also discussed the potential for sales tax rebates, which could help secure financing for the project by providing banks with assurance of returns.

Overall, the meeting underscored the city's commitment to fostering economic growth through strategic partnerships and incentives, with the hotel project representing a significant opportunity for Nogales to enhance its tourism appeal. The council's engagement with the developer indicates a proactive approach to economic development, with further discussions anticipated in the coming weeks as the project progresses.