Allen council authorizes negotiations with Kalahari Resorts for large resort and convention center

The Allen City Council voted to authorize the city manager to negotiate and execute land and lease agreements and an economic development incentive package with Kalahari Allen Texas LLC, a preliminary step toward a proposed resort and convention center on about 120 acres at Stacy Road and Highway 121.

Dan Bowman, executive director of the Economic Development Corporation, described the project as a family-owned, mixed-use resort that would include an indoor and outdoor water park, a roughly 900-room hotel, a 165,000-square-foot convention center, a 100,000-square-foot family entertainment center and multiple food-and-beverage outlets. Bowman said the project budget is approximately $900 million and now looks likely to approach $950 million. "We're looking at a 38-year term" for the pay-for-performance rebate incentive, Bowman said, describing guaranteed payments that start at $2 million a year and grow at 2.5 percent annually.

Ashley Nelson, introduced by Bowman as a member of the Nelson family that owns Kalahari, thanked the council and described the company's track record building destination resorts in other states. "We can't wait to hopefully make a splash in Allen, Texas," Nelson said.

Supporters at the meeting urged the council to move forward. Kyle Jacobson, CEO of the Allen Fairview Chamber of Commerce, said the project would diversify the tax base, create up to 1,000 full-time-equivalent jobs and deliver significant economic activity; he cited study projections included in the staff presentation. "Increased economic activity in Allen lowers the tax burden for our residents," Jacobson said.

Nearby residents and others raised concerns about traffic, water use, noise and the affordability of the resort for local families. Van Orr, who said he lives two blocks from the proposed site, said residents learned of the project through media coverage and expressed worry about traffic and property values. "Traffic, pollution and water use are a big concern," Van Orr said. Louie Mancuso questioned whether the city would shift too much of the burden to residents and urged careful consideration of how incentive packages are funded.

Several council members expressed support for the project but emphasized it is an early-stage authorization. Council member (speaker 12) and other members noted the item only authorizes negotiations; zoning, technical review, traffic analysis and public hearings would follow. Council member (speaker 18) moved to authorize the city manager to negotiate and execute a hotel land lease, a convention center land lease, a convention center building lease, a put option agreement and an economic development incentive agreement with Kalahari Allen Texas LLC; council member (speaker 20) seconded and the motion passed.

The authorization allows staff to finalize contract terms and incentive language and does not itself approve zoning or construction. City officials said the land purchases and any public financing tools will be subject to separate approvals and public processes.

Next steps: staff will continue negotiations, hold public outreach and return through the standard technical review and Planning & Zoning processes before any zoning or construction approvals are considered.