The Amarillo City Council approved a Chapter 380 economic development agreement on Oct. 28 to support redevelopment of the Herring building into a full‑service, branded hotel and event facility. The measure passed by a 4–0 vote with one councilmember abstaining.

Why it matters: The Herring is a long‑vacant, multistory historic building downtown. The project proposes extensive rehabilitation and hotel amenities (rooftop bar, event space, pool and food and beverage venues) and relies on a mix of federal/state historic tax credits and performance‑based local and state tax rebates to be financially viable.

What the agreement provides
- Local hotel occupancy tax: the developer would receive rebates of 100% of the city’s local hotel tax for five years and 50% for the following five years (payments are performance‑based and paid from revenues generated after opening).
- State incentives: the proposal includes a request and city facilitation for state hotel occupancy and state sales tax rebates (statutory structure under Texas Tax Code ch. 351 and related provisions) that, if granted by state authorities, would be rebated to the developer for up to 10 years per state law.
- The agreement requires performance (collection of taxes after the hotel opens) and contains deadlines for start of construction and substantial completion; the project must also meet historic‑preservation requirements to qualify for certain credits.

Council discussion and community process
- Council debated timing and optics of approving the Chapter 380 package while a Parallel tiers (TIRZ/3.80) application and public review process remain ongoing. The developer said the two processes are separate: Chapter 380 incentives are performance‑based and tied to taxes collected from the completed hotel; the tiers application (property‑tax/TIF related) is a separate staff and boards process.
- Council members asked for, and the developer affirmed, further public engagement. The applicant noted a desire to begin demolition, perform a historic fabric inventory and secure a contractor quickly; the developer said signing a flag/brand agreement had just been completed to reduce uncertainty for lenders/contractors.

Financial scale and timeline
- The city staff estimate the Chapter 380 package’s total rebate value at roughly $17.7 million over 10 years, split among local and state taxes. The city would begin to see new local hotel tax revenue once the rebate steps down in year six.
- The developer plans construction starts and a certificate of occupancy timetable consistent with the agreement’s milestones; precise development financing and additional incentives (a separate tiers item) were discussed in public testimony.

Ending: Council approval advances a long‑discussed downtown rehabilitation project by leveraging performance‑based tax rebates and historic‑tax‑credit financing; supporters said the plan could revive a landmark building and bring meeting and convention capacity downtown, while critics sought more time for public discussion.