Allen council authorizes city to negotiate Kalahari hotel, convention center leases and incentive agreement

The Allen City Council on an initial vote authorized the city manager to negotiate and execute a suite of agreements with Kalahari Allen Texas LLC that would enable a 900–950 million dollar indoor resort and convention center on a vacant parcel at Stacy Road and U.S. Highway 121.

Dan Bowman, executive director of the Allen Economic Development Corporation, told the council the action is an early, required step in a multi-stage process that still must pass zoning, technical review and public hearings. “We are here at this kind of first step,” Bowman said, describing the agreements as documents that put benchmarks on paper while the developer completes site selection and required analyses.

The project the developer presented would include roughly 1.1 million square feet under roof including a 912-room hotel, indoor and outdoor water parks, a 65,000-square-foot convention center and family entertainment space. Bowman said the developer expects a roughly Feb. 2030 opening target and a minimum of 500 full‑time equivalent jobs, with the developer projecting closer to 1,000 positions. The company budget for the project was described as about $900 million and “more recently looking like it’ll approach $950 million.”

Ashley Nelson, who identified herself as one of the family owners of Kalahari Resorts, addressed the council and audience. “We can’t wait to hopefully make a splash in Allen, Texas,” Nelson said, noting her family’s experience operating similar resorts and describing the company as family owned and community oriented.

Bowman and staff said the agreements before council are structured to support the state’s qualified hotel program — which requires specific ownership/leasing arrangements — and to include pay‑for‑performance rebate incentives tied to tax generation. Bowman said the city would receive guaranteed annual payments beginning at about $2 million that grow at about 2.5% annually, shift to different splits during the 38‑year incentive term, and eventually revert fully to the city. He said independent economic consultants estimated roughly $5 billion in direct and indirect spending in the local economy over the first 10 years and about $390 million in local tax collections to the city and related entities over the 38‑year rebate term.

Supporters at the meeting emphasized tax diversification and jobs. Kyle Jacobson, chief executive officer of the Allen‑Fairview Chamber of Commerce, said the resort would help “diversify our tax base in Allen and…help to relieve property tax burden on the citizens.” Christy Gisinski, a local resident, said the project would provide year‑round family recreation and new restaurants and jobs.

Other residents who live near the proposed site urged caution and asked for robust public engagement and thorough analysis of traffic, water use and neighborhood impacts. Van Orr, who said his house is two blocks from the site, said his primary concerns were “my quality of life being so close to the park,” traffic and water demand. Several nearby homeowners asked staff and council to ensure early public involvement during the zoning and technical review processes.

Councilmembers spoke favorably about the project’s potential to produce outside visitor spending, to bolster the tax base and to complement existing mixed‑use development along the 121 corridor, but they reiterated that a number of approvals remain. Council discussion and staff remarks repeatedly stressed that the lease and incentive documents are conditional: if zoning or technical approvals fail, the agreements would not result in development under the current terms.

A motion to authorize the city manager to negotiate and execute, on behalf of the City of Allen, a hotel land lease agreement, a convention center land lease agreement, a convention center building lease agreement, a put‑option agreement and an economic development incentive agreement with Kalahari Allen Texas LLC — including any amendments or instruments related thereto — was made and seconded. The council voted to approve the motion; the meeting record states the item “passes.”

Next steps identified by staff include completion of property due diligence, the technical review committee process, formal zoning applications, traffic and infrastructure studies, and future public hearings where site plans and utility impacts will be reviewed.

The council vote authorsizes staff to proceed with negotiation and execution of the listed agreements; it does not finalize zoning, construction approvals, financing or the incentive rebate payments, all of which must be completed later if the project moves forward.