Conroe Council to Weigh Hyatt Budget Hike, Street Fees

Conroe City Council Gears Up for Major Decisions on Hyatt Hotel Budget, New Street Closure Fees

**CONROE, TX – December 7, 2023** – The Conroe City Council is set to tackle a significant agenda at its upcoming December 11 meeting, with a proposed $10 million increase to the Hyatt Regency Convention Center hotel project’s budget taking center stage. If approved, the additional funding would push the total cost of the ambitious downtown development from $168 million to $178 million.

City staff attribute the budget hike to a confluence of factors, including current market conditions marked by inflation and supply chain pressures, rising interest rates impacting financing, and specific design modifications made to the hotel’s meeting space. The 250-room hotel, envisioned as a cornerstone of Conroe’s economic development and tourism strategy, is slated for completion by mid-2025. It will feature 50,000 square feet of meeting space, including a sprawling 25,000 square foot ballroom, all situated on a 7.5-acre site at 1000 Katy Lane.

To cover the additional $10 million, city staff have presented two primary funding options for council consideration: utilizing a portion of the city’s general fund balance or issuing Certificates of Obligation. Certificates of Obligation are a form of debt issued by local governments, often without voter approval, to fund public projects. This decision is expected to prompt considerable discussion among council members regarding fiscal prudence and long-term financial impact.

The Hyatt Regency project has been a central component of Conroe’s efforts to enhance its downtown appeal and establish itself as a regional destination for conventions and events. The facility is expected to generate significant hotel occupancy tax revenue and attract new business to the area.

Beyond the hotel project, the council will also deliberate on a new policy introducing fees for street closures. Currently, event organizers in Conroe are not charged for the use of city streets, regardless of the size or nature of their event. The proposed policy outlines a fee structure of $500 for a half-day closure (up to four hours) and $1,000 for a full-day closure.

The primary aim of these proposed fees, according to city documents, is to help recover some of the operational costs incurred by the city for services such as police presence, traffic management, and public works support during these events. Additionally, the new fee structure is intended to potentially manage the frequency of street closures, ensuring a balance between community events and minimizing disruption to daily traffic flow. This policy could affect a range of local events, from community parades and charity runs to larger festivals.

The Conroe City Council meeting will commence at 6:00 PM on Monday, December 11, at Conroe City Hall, located at 300 West Davis Street. The public is invited to attend or view the proceedings online. The full agenda and supporting documents can be accessed on the City of Conroe website at [conroetexas.gov/city-council](https://www.conroetexas.gov/city-council).