Lee County EDC and Icon Cinemas present $16.5 million entertainment venue proposal; city staff to return with ordinance

The Economic Development Corporation of Lee County recommended city support Tuesday for a proposed Icon Cinemas entertainment venue estimated to cost about $16,500,000 and generate roughly $6,000,000 in annual sales, EDC president Jennifer Grama said.

EDC President Jennifer Grama said the project would include nine luxury recliner screens, an arcade, laser tag arena and duckpin bowling and is intended to keep retail and entertainment spending in Hobbs rather than sending patrons out of town or out of state. “The EDC is recommending a veil support in the amount of $767,000,” Grama said, referring to a reimbursable incentive tied to city gross receipts tax revenue generated by the venue.

The nut graf: The proposal is advisory; the city commission must consider a participation ordinance and a formal agreement. Commissioners and the developer discussed anticipated construction cost, job creation, revenue and a potential timeline for approvals.

Details and next steps EDC said the incentive would be reimbursed from gross-receipts tax revenue generated by the project and would not require the city to pay funds in advance. Stetson Snell, representing Icon Cinemas on the phone, described the venue as “a first-class family friendly entertainment center” intended to complement the CORE and nearby ball fields and to attract out-of-town visitors who would dine locally.

Snell said the company expects to employ between about 30 and 50 people, some seasonal, and that construction would take roughly one year once approvals and USDA review are complete. Grama told commissioners the EDC’s analysis shows the city would break even on a $767,000 incentive in less than two years based on projected revenues.

Commissioners asked about potential competition with existing theaters, the technology to be used and where the venue would locate. Snell said Icon’s premium large-format screen — described in testimony as the company’s “Iconic” technology — provides a similar experience to IMAX without the IMAX license, and pointed to prior projects where Icon entered markets with existing theaters without driving them out of business.

Timing and process City staff indicated the item was at the discussion stage and that, after staff review, the commission could consider an ordinance at a subsequent meeting. Mayor Sam DeCobb and commission members signaled support in principle; no formal action or vote on the incentive or any ordinance was taken at the meeting.

What was not decided No participation agreement or ordinance was approved at the meeting. Specifics about the final incentive terms, the participation agreement text, and any city monitoring or clawback provisions were not presented and remain to be drafted and reviewed by staff.

Ending City staff said they would prepare materials for the commission to consider at an upcoming meeting, with the city manager and staff to return with an ordinance and recommended participation agreement if the commission wishes to proceed.