City Council approves $32 million incentive agreement to revitalize Hotel Paso del Norte
More than a hundred million dollars is about to be invested in the former Camino Real Hotel.
El Paso City Council voted to approve an incentive agreement Tuesday with the Meyer’s Group out of Florida that will turn the newly-named Paso del Norte into a four-star convention center hotel.
The Meyer’s Group will spend $70 million in private investment as part of the agreement, qualifying the developer for an incentive package of more than $32 million to completely renovate the historic hotel.
“A hotel like the Camino Real being our headquarter convention center hotel, really is the reason for our participation,” said Jessica Herrera, interim director of the City of El Paso’s Economic Development Department, who understands the importance of the agreement. “The ability to secure additional conventions, increase our tourism, our visitor draw relative to downtown is a big plus.”
Here’s how it breaks down: A state incentive totaling $24.3 million has been secured, which will pay about $3 million per year for a period of eight years. The city will provide a maximum of $6 million in redevelopment grants, with payments at 50 percent, 75 percent and 100 percent construction completion.
There will also be a 100 percent rebate of incremental real or personal property, the amount the property will increase in value with renovations. The incentive period limited to eight years and not to exceed $2.2 million.
Finally, the city, which still owns the land the hotel is on at this point, will waive all building and development permit and inspection fees for the Meyers Group.
“In order to be eligible in the state incentive, the city needs to retain ownership of the land,” Herrera said, “because the state provides those rebates to the city and the city then will provide that to the developer and then it will revert back after a certain term.”
There is also opportunity for additional incentives from the state for the Convention Center campus that could total millions more.
“Over the next 10 years there is additional monies that you’re going to see that might be greater because of the additional investment that we’re going to see in Downtown,” Herrera told ABC-7.
The Meyers Group declined comment on the deal until a later date.
Among the city’s benefits is the agreement for ballroom and meeting space with no fees for five days, a 50 percent discount on per diem government rates for up to 200 room nights and the expenditure of one percent of gross revenue for marketing purposes.
