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Council approves up to $3.5M 380 incentive for dual‑brand Marriott in Bayside
Summary
Rowlett approved a Chapter 380 economic development agreement for Prevail Rowlett LLC to build a dual‑brand Marriott (about $40M investment, ~200 keys). The incentive package caps at $3.5M: up to $500,000 in fee waivers, up to $1M property‑tax abatement, and up to $2M in HOT rebates over 10 years; council approved an amendment to correct a typographical error and carried the resolution.
The Rowlett City Council on Nov. 19 voted to approve a Chapter 380 incentive agreement with Prevail Rowlett LLC to support a proposed dual‑brand Marriott in the Bayside area.
Staff described the project as a dual‑brand hotel (Courtyard and Residence Inn) of roughly 200 keys and about 140,000 square feet, representing a $40 million private investment. The proposed incentive package does not exceed $3.5 million and is composed of three main elements: fee waivers (not to exceed $500,000), a property‑tax abatement (requested at 100% for eight years but with a city cap of $1 million), and a hotel‑occupancy‑tax (HOT) rebate (requested percentage of HOT revenues over a period; staff said the packet intended up to $2 million over 10 years). Staff projected the city would recoup the $3.5 million in roughly five and a half years and estimated a 20‑year fiscal benefit of about $13.5 million to the city.
A developer representative, identifying their firm and role in the presentation, described franchise quality‑control requirements that will require reconditioning and maintenance at set intervals (soft redevelopment at year seven and a full redevelopment at year 14), which the developer said strengthens long‑term asset quality.
Council discovered a typographical error in Section 4.2A of the draft agreement where the parenthetical years for HOT rebate was shown as “1” instead of “10.” Council moved to amend the agreement to change the parenthetical to “10” to match the text and intent; the amended motion carried. Council then approved the corrected 380 agreement.
Supporters described the deal as a catalytic investment for Bayside that will spur additional commercial development and generate lodging tax and property‑tax revenues. Some members emphasized the structure of the incentives (fee waivers and deferred/unrealized revenue rather than direct cash grants) as preferable to cash payments.
The council authorized the city manager to execute the agreement with the correction. The developer committed to construction commencement within 18 months of an executed agreement and final completion within 24 months, and to maintain the Marriott franchise for 15 years as part of the agreement terms.
