A joint meeting in Mineral Wells Tuesday night resulted in a final development incentive agreement with The Baker Hotel Development Group, something the mayor called “a historic evening.”
“This agreement solidifies the relationship moving forward between The Baker Hotel Development Group and the City of Mineral Wells,” Mayor Regan Johnson summarized after the meeting.
The city council, economic development corporation and Tax Increment Reinvestment Zone board met together to review the contract, which was unanimously approved by each entity.
“The TIRZ, EDC and Council are all confident in this agreement,” Johnson said. “It is a performance-based agreement and I look forward to sharing the full contract and details. It was an honor to sign the document in the shadow of The Baker.”
The Baker Hotel Development team partners are Laird A. Fairchild, Chad Patton, G. Brint Ryan, Randy Nix, Jeffrey M. Trigger, Mark Rawlings and Beth and Kurt Thiel. The development agreement is still awaiting signature by the group.
The contract extends from a Memorandum of Understanding, a handshake agreement, that was signed in 2019 where the city’s and development group’s expectations of involvement in the project were outlined.
The final agreement provides for the following commitments:
• The Economic Development Corporation will provide a performance-driven grant of $4 million to be used for furniture, fixtures and equipment. The funds will be paid after a minimum of $50 million has been spent by the developer.
• The TIRZ will be pay 100% of the tax increment collected on the hotel project from tax year 2020 until tax year 2039.
• The city of Mineral Wells will waive all city inspection and permit fees up to $200,000 and will discount by 50% any fees over $200,000; total fee waivers not to exceed $250,000.
Mineral Wells City Manager Randy Criswell said in 2014, residents voted overwhelmingly in support of a Type B Sales Tax that was intended to be used to create a $4 million incentive for the redevelopment/rehabilitation of The Baker Hotel, clearly expressing the community’s support for the project.
“The approval of the Development Incentive Agreement for the Baker Hotel reflects and memorializes the efforts of the city of Mineral Wells and her citizens,” he said. “A lot of people have spent countless hours over many years to see this agreement come to reality, and I’m proud to have a part in what I believe will be a project of truly epic proportions.”