An estimated $18 million could be the price tag if Buda were to bring a convention center to town, according to Ann Miller, Buda Economic Development Corporation executive director.
Miller presented Buda City Council members the results of a feasibility study done by CBRE on the ways a convention center could be brought to Buda.
The $18 million amount could cover a 22,000 square foot convention center, along with an attached 120-room hotel.
Miller said the size of the hotel was limited to approximately 120 rooms so that it would not adversely affect other local hotels in Buda. With 120 rooms, there would be enough overflow for the other existing Buda hotels to fill their rooms, Miller said. It also gives customers the ability to stay at a hotel of their preference.
The proposed convention center could generate $3.35 million in Hotel Occupancy Tax (HOT) funds from 2020 to 2029 and $2.25 million in property taxes from 2019 to 2028.
“Occupancy is not the end all and be all,” Miller said. “You have to look at daily rates when factoring in the impact to existing hotels.”
According to CBRE’s study, a convention center would best serve Buda if it were located near Interstate 35, in proximity to existing Buda hotels, and dining and retail options, Miller said.
Miller said in her presentation that approximately 195 new jobs would come with the proposed convention center and hotel.
The proposed convention center could generate $3.35 million in Hotel Occupancy Tax (HOT) funds from 2020 to 2029 and $2.25 million in property taxes from 2019 to 2028.
Miller said funding for the convention center could come solely from the city of Buda or from a partnership with a developer to minimize costs to residents.
Council member George Haehn and Mayor Todd Ruge were interested in utilizing performance-based incentives if the Buda were to partner with a developer. Performance goals would have to be met before the developer could be reimbursed.
Ruge said he didn’t anticipate seeing a convention center in Buda for another five years. He added a future city council could decide to partner with an interested developer, rather than fund the entire proposed $18 million out of the HOT fund.
