Council Report: Museum District hotel moving forward

The Fort Worth City Council, during its work session Tuesday, received a proposed economic development request for a new hotel in the city’s cultural district from FW Museum District Resort Partners LLC.

Several months after a previous plan fell through because of opposition from several museums and area residents, a well-known group that specializes in hotels near museums is looking to build one in Fort Worth at a site near the Kimbell Art Museum.

District 7 Councilman and Mayor Pro Tem Dennis Shingleton said this hotel, from 21C Museum Hotels, looks more in line with what community members were looking for.

Shingleton said the upscale hotel “will fit into that cultural district very well.”

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The Kansas City-based company specializes in museum hotels that include a multi-venue contemporary art museum, coupled with a boutique hotel and chef-driven restaurant. This would be their first venture into Texas, with the nearest being in Oklahoma City.

Local firm Bennett Benner Partners is bringing the hotel to town with its location being the northwest corner of Camp Bowie Boulevard and Van Cliburn Way.

The hotel is expected to have 171 rooms and a minimum four-star rating, 9,000 square feet of meeting space with an art lobby, and a 4,500 square feet restaurant with a bar. It will also be within walking distance of the Dickies Arena, which is expected to open in November, though the hotel would likely not open until shortly after the arena.

The developer will also agree to:

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*A $70 million capital investment by Dec. 31, 2021.

*A minimum of $56 million in hard costs.

*•A minimum of 15 percent hard and soft costs to Fort Worth Minority/Women Business Enterprise contractors.

*Design project to meet supplemental design standards to ensure compatibility with surrounding properties.

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*Enter into a room block agreement.

The proposed Chapter 380 agreement with the city includes:

*12-year Chapter 380 economic program agreement with a two-year payback.

*80 percent of the City of Fort Worth’s 7 percent hotel occupancy tax (HOT).

*Total value not to exceed $10 million.

Chapter 380 of the Local Government Code authorizes municipalities to offer incentives designed to promote economic development such as commercial and retail projects.

The city’s tax revenue over 10 years would be an estimated:

*Net New Property Tax, $2,033,145.

*Net City HOT, $5,605,015.

*Net State HOT, $9,891,203.

*City 1 percent sales tax, $925,926.

*Crime Control and Prevention District, $462,963.

*Transportation District, $462,963.

“This is a great project. It’s a great hotel,” Mayor Betsy Price said. “If you haven’t stayed in one of these, they’re great fun. And it meets all the line of sight questions that were raised.”

The decision comes after a previous failed attempt by Heart of America, based out of Illinois, to bring a Hotel Renovo into the area. The group tried twice, with the first concept being deemed too tall and casting a shadow on the Kimbell and its sculpture garden. Then, though they reduced the size by 10 stories, the group’s request for tax incentives was turned down by city officials.

An agenda item is expected to be put before the council at the March 26 meeting.

www.21cmuseumhotels.com/