The upcoming election on Nov. 7 will include ‘Proposition A’ for Corpus Christi residents. City officials are considering reallocating the current quarter-cent sales tax. They aim to fund both Seawall repairs and enhancements to citywide regional parks.
The potential parks for improvement include Commodores, Bill Witt, Cole, Labonte, Parker, Salinas, and West Guth.
Furthermore, the funds will support street fixes, road enhancements, and efforts to attract more direct flights to our airport. There’s also an allocation for upkeep, repairs, and upgrades of the Selena Auditorium, the Arena, and the Convention Center.
A segment of this strategy includes the city’s collaboration with a privately constructed and operated Convention Center Hotel. This proposal is the most debated, with notable resistance from local taxpayers and hoteliers. Joshua Tijerina, Director of Sales for Hawthorn/Candlewood Suites, mentioned that some need more consultation.
“The concern arises not just from the general public but also from hotel proprietors who’ve invested millions in their establishments without any subsidies,” he pointed out. “Yet now, the city is leaning towards a proposal to support a local hotel owner in building a new establishment.”
While the term “hotel” isn’t explicitly mentioned on the upcoming ballot, the allowance for the city’s involvement in a privately constructed and overseen convention center hotel is a permitted application of ‘Proposition A funds. This aspect is facing the most resistance.
Rob Hunden, the head of Hunden Partners based in Chicago, which has been collaborating with the city on this initiative, remarked that he doesn’t foresee using Type A funds for the privately planned hotel.
“It’s not intended to be a public enterprise or a publicly held hotel,” he clarified. “We don’t require those resources. Every hotel developer we’ve discussed the future development with has assured us they can fund their projects through state and local tax rebates they accumulate on-site, such as property, sales, and hotel taxes. These incentives are common practices across the state. Hence, these would be new tax revenues that only materialize if a hotel is constructed.”
Hunden mentioned that the city would be at a loss if it constantly had to cover the hotel’s deficits.
Hunden stated, “Frankly, those against this are either misinformed or deliberately spreading misinformation. The city won’t own the hotel so that it won’t incur losses from it.” He continued, “Over 70 cities have successfully financed one or more headquarters hotels with their convention centers. Many Texas cities have multiple such hotels because it’s proven effective. Indianapolis, for instance, is on its fifth headquarters hotel. These hotels play a pivotal role in the success of convention centers, stimulating the visitor economy and supporting numerous jobs, and they do turn a profit.”
He further emphasized the intricacy of the project, noting, “What many may not grasp is that this initiative isn’t just about a hotel. It encompasses revamping and expanding the American Bank Center complex, the new headquarters hotel, and a mixed-use district. Unknown to many, this district is designed for living, working, playing, and visiting, incorporating retail spaces, restaurants, potential future hotels, residential areas, and offices. The goal is to emulate the most successful urban strategies from cities nationwide, leveraging Texas-specific resources to bolster your visitor economy.”