BROWNSVILLE, Texas (ValleyCentral) — The Brownsville City Commission has approved a funding agreement for a new hotel and conference meeting space.

The operator, Pineapple RE Holdings LP has proposed to build a five-story Hilton Garden Inn in a high traffic and retail area on west Morrison Road.

The hotel will be built on a five-acre site and will feature a minimum of 150 guest rooms.

Some of the amenities will include a full-service restaurant and bar, a minimum of a 10,000 square foot conference and meeting space, a swimming pool, health spa and fitness, a sundry shop, and Wi-Fi in all guestrooms and hotel public spaces.

In addition to amenities, the hotel will also bring 65 jobs once it’s fully operational. They’re looking to fill positions in hospitality, customer service, cleaning, wait staff, and more.

The tentative start date for development was set for the fourth quarter of 2022, but Helen Ramirez, the Deputy City Manager for Brownsville said, “In terms of the architectural engineering, I believe the developer has already started this month.”

Ramirez reported Brownsville hotels having 65%-70% occupancy, even through the pandemic, so “the demand is there for a hotel of this size.”

The project is set to cost a minimum of $27 million which Ramirez told ValleyCentral the developer will be footing the bill.

The city will offer an incentive of Hotel Occupancy Tax (7% tax collected from the rental of rooms) to the Hilton Garden Inn. This will not impact any other Brownsville hotel.

An economic impact analysis performed by TXP, Inc. Economic Analysis Consulting Firm determined the hotel’s 10-year revenue projections show an estimated property tax revenue of $2,157,737, estimated city sales tax of $268,071, and an estimated city 7% Hot Occupancy Tax (HOT) of $4,356.712.

Instead of that tax going back to the city, Ramirez said it will be placed into a fund for the hotel to use towards any future needs such as marketing and communication.

The City of Brownsville will reimburse 100% of the project’s Hot Occupancy Tax over the next 10 years, which is not to exceed $4 million.

Ramirez also added there will be no sales or property tax associated with this project, so essentially Brownsville taxpayers will not be funding the hotel in any way.

“We believe that it is a sound investment and a good amenity for our community to have,” said Ramirez.

The hotel is set to open its doors in early 2023.