Published: Fri, 01/12/24
The proposed agreement would allow a 21,000-square-foot convention center and a hotel with 90 to 200 rooms to be built on land at 401 Franklin Street, adjacent to POST Houston.
Houston Public Media
ASHLEY BROWN
POSTED ON
(LAST UPDATED: )
The City of Houston is putting the brakes on a proposed convention center and hotel project that is part of the redevelopment of the former Barbara Jordan Post Office downtown. Mayor John Whitmire is concerned about the potential consequences of the proposal.
The proposed agreement, which has now been referred back to the administration for review, was developed under former Mayor Sylvester Turner's administration to allow a 21,000-square-foot convention center and a hotel with 90 to 200 rooms to be built on land at 401 Franklin Street, adjacent to POST Houston, an entertainment facility.
The City of Houston would own the convention center at no cost, and the developer would have the option to purchase it after ten years at market value, and adhere to the room block agreement granted to the city by the developer, which would allow the city to book rooms for conferences, public meetings, or exhibitions.
Mayor John Whitmire said the deal could interfere with legislation he passed last year that could bring in nearly $2 billion for the city.
"The concern is it sets a terrible precedent," Whitmire said. "Because I can only imagine what other operators are thinking. Number two, it really jeopardizes the legislation I passed to create an entertainment district in central Houston."
Senate Bill 1057, became effective September 1, 2023, creating a three-mile radius from the George R. Brown Convention Center (GRB). It allows the Houston First Corporation (HFC) to collect state occupancy taxes from downtown hotels that could bring in billions of dollars over the next 30 years for the city, but the proposed hotel project falls within the bill's radius. The funds collected could also help renovate the GRB.
Whitmire said by giving said hotel occupancy tax breaks to the developers of the convention center and hotel, it would be taking money away from the city.
Tuesday's public session brought residents like Amber Boyd-Cora, who also had concerns about the project.
"I just want the council to really delve into and address the transparency of the real estate transactions and see will this benefit our citizens or the development company behind the transaction," said Boyd-Cora.
The cost of the project has not been stated. Randy Baxley, who lives in the district where the project will be located, said there are still many unanswered questions and it's been hard to find information.
"[I'm] looking forward to seeing the actual plans for this and knowing how it will impact both the city finances and the POST itself," he said.
Newly elected District H Council Member Mario Castillo, who represents the area where the proposed project will be located, had reservations about the proposal’s interference with SB 1057.
"This is something that we're looking through to determine how the qualified hotel program impacts the city's potential revenues," he said.
City officials did not give a date on when the item will be on city council’s agenda.