In the Tall City, the Sky’s the Limit!
Midland’s central business district is bustling.
Anchoring the Tall City, Midland’s downtown is home to one of the most impressive skylines in West Texas, and some of the community’s longtime favorite destinations (Yucca Theater, Midland County History Museum) and annual community events (Star-Spangled Salute, Tall City Blues Fest).
In addition to the mainstays Midlanders have long known and loved, the city’s town center is currently going through an exciting revitalization, creating a vibrant, family-friendly gathering place for Midlanders and visitors alike.
You may have heard about Midland’s new state-of-the-art Bush Convention Center (a three-level, 76,949-square-foot facility) and Centennial Park – a family-friendly park with green space, performance stage, dog park and kids’ play area opening spring 2020. Downtown also boasts Basin PBS’ new facility hosting community events throughout the year, a high-tech entrepreneurial co-working space, loft living, the recently upgraded Library at the Plaza, a new Micro Market – a stretch of local boutiques and eateries – and other first-class amenities and retail expected to come online soon.
This is just the beginning.
A new four-star hotel is expected to break ground in 2020, adding 200 guest rooms, 14,000 square feet of meeting and event space, and 10,000 square feet of restaurants and retail space to Midland’s downtown area. In this new project, Texas-based developer Midway will create a signature space for Midland that incorporates the region’s distinct spirit and personality with programming to include live music, local chefs, visual arts, and other events where visitors and locals can celebrate together the many things that make Midland special. The hotel will be situated directly across from Centennial Park and down the block from the Bush Convention Center.
For more information about Midland’s central business district:
New hotel’s direct financial benefit to the greater Midland community
Midland’s investment in the new 4-star hotel will create much-needed tax revenue and will not burden local taxpayers with any additional or increased taxes.
Midland-area taxpayers will benefit from approximately $31M in added tax revenue over the next 22 years (two years of development and the first 20 years of operation), plus continued tax revenue for the life of the hotel. The taxes that will be generated by the hotel are property taxes, sales taxes, hotel taxes, and parking fees.
This is approximately $10.4M in tax revenue exceeding the initial tax dollar investment in the project.
The added tax revenue will benefit all area taxpayers via the following entities:
- Midland ISD (26%)
- City of Midland Hotel Occupancy Tax (25%)
- Midland Development Corporation (1%)
- City of Midland (27%)
- Midland County (13%)
- Midland College (3%)
- Midland Hospital (3%)
- Downtown Midland Management District (2%).
Financial investment provided by Midland Development Corporation (MDC) (approved by Midland City Council on Dec. 10, 2019)
The total investment by the MDC will be $20.6 million, including:
- $5.6M expended by MDC to purchase and fully remediate Western United Life Building
- $15M in cash incentives to be disbursed upon Midway’s achieving key milestones in project completion
Tax abatements provided by the City of Midland
The following abatements entail no loss of existing revenue, as the Western United Life Building sitting vacant generates no Hotel Occupancy Tax (HOT), and it is not assessed for property tax because it is owned by the MDC. (Prior to its purchase by the MDC, the vacant and dilapidated Western United Life Building’s property tax assessment was less than $7,000)
- The City will rebate HOT to Midway for a period of ten years.
- The City will abate ad valorem property taxes for a period of ten years, contingent upon the project’s completion and Midway complying with all terms and conditions of the master development agreement.