The Flower Mound Town Council on Monday night unanimously approved incentives to bring a luxury hotel and conference center, The Pearl on the Peninsula, to town overlooking Grapevine Lake.
Located on the peninsula in the southern parcels of the 150-acre mixed-use development Lakeside DFW, the independent luxury 11-story hotel will feature 220-rooms, a 32,000-square-foot conference center and a 10,000-square-foot ballroom with state-of-the-art-technology, workout facilities and an infinity pool on the second level above the surrounding tree-line for unobstructed views of the lake and an additional parking level.
It will also feature two restaurants with patio features, one a European market concept, and the other will be an upscale signature restaurant and bar overlooking Lake Grapevine.
“The Town of Flower Mound has needed conference space for some time so we can remain competitive in the in the market and continue drawing dynamic businesses to Flower Mound,” said Mayor Tom Hayden. “Now we can have an incredible hotel and conference center with a lake view that can’t be found anywhere else in the Metroplex.”
Council members pointed to the benefits for Flower Mound and its residents that a top-of-the-line luxury hotel will bring with it. Being positioned only 5.5-miles from the International Terminal D at DFW Airport will enable business visitors and tourists to reach the destination within 12 minutes.
The council’s approval included an incentive package that will assist both the New Era Hotels & Resorts developers of The Pearl on the Peninsula Hotel & Conference Center and the Town of Flower Mound. The State of Texas Chapter 380 Agreement provides for a hotel occupancy tax (HOT) rebate of seven-percent for a period of 21 years.
The HOT revenue is restricted and is not general fund revenue. The tax revenue must comply with State of Texas Chapter 351 restrictions and cannot be used for general fund expenditures by the Town. Per the agreement, the developer must use the revenue for facility-related promotion, but it will benefit the Town at-large by tourism advertising and marketing, business convention promotions and physical enhancements, such as the addition of shuttle vehicles between the airport, the hotel and the surrounding community.
The agreement also provides for three times per year the Town’s use of the conference center free-of-charge, for a maximum of three days per event. Expenses– such as food and beverage, room set-up/tear down– for the three events will be provided at a discount of 50-percent, up to $10,000.
In addition, the property where the luxury hotel will be built is also subject to the Lakeside DFW tax abatement agreement. The net benefit to the Town for the project is an estimated $5,663,862 over the term of the agreement. Of course, the town will also receive the related sales tax revenue generated by the new facility.
Agreements like these are similar to what other towns and cities use to attract development, town officials said at the meeting.
“It is important for people to remember a majority of this incentive is the HOT tax paid by hotel guests,” said Flower Mound Mayor Tom Hayden. “People who don’t live in our community will pay for this hotel.”
The target groundbreaking date is July 1, 2015, for a 12 to 14-month construction completion deadline of December 31, 2016.
New Era Hotels & Resorts and Sunset Legacy’s presentation showed that the hotel will sit 140-feet above the water with a view of Betty May Bay, named after landowner Alan Stewart’s parents, Peter Paul and Betty May Stewart, the driving force behind what is now Lakeside DFW. The hotel will feature a warm, yet modern design that visually connects visitors to the lake and surrounding nature, according to the developer.
“More than 30 years ago, my father realized the potential that Grapevine Lake and the new DFW International Airport held for the then small community of Flower Mound,” said Alan Stewart, president, Sunset Legacy, LP. “Part of his vision included the creation and development of an international luxury hotel overlooking the lake and serving as a convenient destination for international travelers. Our family is thrilled that our father will see this dream come to life right before his ninety-fifth birthday.”
L. Scott Tarwater, New Era Hotels & Resorts partner and president will be leading the development of The Pearl on The Peninsula Hotel & Conference Center. Tarwater’s family owned the land where the hotel will be located since the 1890s. His family sold the land to the Stewart Family in 1984.
“It is an honor to develop another wonderful ground-up hotel project in my hometown of Flower Mound, particularly on the land that my parents, grandparents, and I grew up on,” said Tarwarter. “This location is very special to me. It is also a privilege to bring this unique hotel concept that honors our community’s heritage, along with creating a premier international destination for guests and locals to experience.”
DePalma Hotels & Resorts will manage the hotel property. The project team includes Merriman Associates/Architects, TBG (landscape design), Duncan, Miller, Ullmann Design (interior design), Gateway Planning (master planning) and Kimley-Horn (engineering). Balfour Beatty is the design builder.
More information about the The Pearl on the Peninsula Hotel & Conference Center can be found here.
New Era Hotel & Resorts is a hotel development company founded by L. Scott Tarwater, Tim Lavender and Daryn Eudaly.
“Tim and Daryn have an impressive development track record as principals of Rainier Medical Investments,” said Tarwater. “I knew their experience would easily translate to the exciting world of hotel, resort and conference center development. Combined with my experience of serving as the Executive Vice President-Development for John Q. Hammons Hotels and Resorts, we have created a winning development team.”
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