The growing number of visitors to Fort Worth need places to stay, and with that in mind, the Fort Worth City Council approved the execution of an economic development agreement with Development Services Group, Inc., or an affiliate for the development of a full-service hotel at 714 Main St.
This is the site of the Transport Life Building, owned by XTO, which moved its corporate offices to the Houston area.
Built in 1921 and renovated in 2010, 714 Main has 185,757 square feet of office space.JLL Executive Vice President Ryan Matthews has been marketing the property for XTO.
Economic Development Director Robert Sturns said the economic development program agreement, based on the hotel occupancy tax, will be capped at $6 million.
The 220-room Kimpton hotel, which will have a minimum four-star rating, will be located at the northwest corner of Main Street and 7th Street downtown.
The building is 24 stories and part of the National Registry of Historic Places. It is considered a City of Fort Worth Highly Significant Endangered Landmark.
The developer has committed to a $56 million capital investment and a minimum of 30 full-time equivalent employees. They have also promised 10,000 square feet of meeting space, a 3,100 square foot restaurant, and a 3,100 square foot penthouse bar.
The agreement is for 10 years and will incorporate about 58 percent of the city's 7 percent hotel occupancy tax.
Other public support will include state and federal historic tax credits, and a tax increment finance reimbursement of $650,000.
"I am pleased with the adaptive re-use of this historic landmark," District 9 Councilwoman Ann Zadeh said. "This full-service hotel use will be a great addition to our downtown, as well as assisting in the efforts of Visit Fort Worth in promoting conventions and tourism."
The estimated benefit over the decade is around $6.2 million.
Other hotels by the developer include the Candler Hotel in Atlanta, the Hotel Van Zandt in Austin, and the Le Meriden Hotel in Houston and Tampa, Florida.