Craig Ranch Hotel
Craig Ranch Hotel Q&As
The City of McKinney approved a tax incentive plan in May for an upscale lifestyle hotel and conference center in Craig Ranch through a public-private partnership. The project will be located on an eight-acre site at the corner of Collin McKinney Pkwy. and Weiskopf Ave. within the 2,200-acre Craig Ranch master-planned development.
What are the details of the hotel?
The resort is to be branded under the Marriott Autograph Collection and will feature 285 well-appointed rooms and suites and 33,000 square feet of flexible, state-of-the-art meeting space. The Marriott Autograph Collection is well known for its impeccable design and sense of place.
- Multiple food and beverage outlets will feature both indoor and outdoor seating, a fine dining restaurant, a casual upscale three-meal restaurant, a coffee / bakery kiosk serving fresh baked goods, snacks and custom coffee drinks. Other amenities include a resort style lazy river, adult pool and outdoor fire pits, valet parking, concierge services and wireless high-speed Internet service. Guests of the resort will have access to the TPC Golf Course and the Craig Ranch Fitness Center and Spa.
If approved, when will the hotel open?
The hotel has a scheduled opening in the fourth quarter of 2019.
What incentives is the city offering the developer?
The city will contribute up to $18 million in economic incentives that include a $5 million loan at commencement of construction and a $3 million grant upon completion of the project from the McKinney Community Development Corporation (MCDC). The remainder of the incentives is in the form of a reimbursement of tax dollars generated by the hotel. Years 1-5 will have a 75% reimbursement of sales, property and hotel occupancy taxes back to the hotel, and years 6–10 will have a 50% reimbursement. The tax reimbursements will be capped at $10 million in earned tax incentives over 10 years.
Is David Craig involved in this development?
No. David Craig sold the land to the development group. He is not the developer and will not have any ownership interest in the hotel. The only affiliation is that the proposed hotel will be built in the Craig Ranch development.
How much money in incentives has the Craig Ranch development received from the city?
The Craig Ranch development has received approximately $27 million in incentives from the city over the past 15 years. These incentives include infrastructure grants that help build streets, water and sewer, impact fee waivers that are generated through private construction of public infrastructure, a park development grant for the construction of the Craig Ranch Soccer Complex and a land purchase for the McKinney Dr Pepper StarCenter. However, the ad valorem taxes gained on that investment is approximately $7 million annually for the city. The appraised value of the Craig Ranch development is approximately $1.278 billion.
What will the city get in return for its investment?
The $5 million loan being offered by the MCDC will be repaid, with interest, upon sale or refinancing of the hotel, or eight years after the opening of the hotel, whichever occurs first.
In addition to the loan repayment, the city will collect sales, property and hotel occupancy taxes from the hotel. During the 10-year incentive period, the city will reimburse a percentage of those taxes back to the hotel. Upon completion of the incentive period, the city anticipates approximately $2 million in annual tax revenues directly from the hotel.
Will this hotel compete with the Sheraton Hotel and Conference Center?
Research shows there is enough demand to support both. The hotel and conference center demand for our area has demonstrated that with the tremendous growth and development of business, cultural, sports and other recreational events seen in recent years, this market can successfully support both the Sheraton McKinney Hotel and Conference Center, and the planned resort hotel at Craig Ranch.
It is common in the hotel industry to have similar flags in close proximity, as each may serve as a market channel for the other. For example, a customer staying at the Sheraton for a business trip may return the next time with their family and stay at the resort.