Written by Amanda Casanova
The City Council took another step toward building a $91.5 million convention center hotel by approving a development agreement with Mortenson Development Inc. The Council voted unanimously at a council meeting on June 6 for the agreement.
“Staff has given us a deal that is a very good deal,” Councilman Michael Gallaway said. “We’re not going to be putting out a lot of cash upfront, so I just wanted to thank the staff for that and for spurring economic development in the City of Irving.”
According to the agreement, the City will contribute $9 million for improvements, including a 300 space parking garage and sky bridge connection from the hotel to the Irving Convention Center. Also, Mortenson Development will receive a maximum of about $20.6 million in hotel economic incentive grants depending on the success of the hotel.
In return, Minneapolis-based Mortenson is required to start work on the hotel 30 days after they receive their construction loan, which can be no later than Oct. 31.The initial lease is 30 years for $1 per year with two 30-year extensions.
“I appreciate the bargaining and the good quality that’s going to be delivered for us paying through revenue that will be generated by the hotel,” Councilman Brad LaMorgese said.