R-2021-030 - 2/11/2021RESOLUTION NO. R-2021=030
WHEREAS, in 201510 the Texas Legislature passed House Bill 19649 which added the City
of Round Rock ("City") as an eligible municipality allowed to pledge the municipal hotel
occupancy tax revenue from hotel projects for the payment of obligations issued to acquire, lease,
construct, and equip a convention center, hotel and any facilities ancillary to the hotel; and
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WHEREAS,. in 2016 the City and the owners of Kalahari Resorts began negotiating an
agreement which would ultimately lead to a new Kalahari* Resort and Convention Center being
built I*n the City; and
WHEREAS, Kalahari* Resorts and Convention Center boasts 975 hotel rooms, 20 food
and drink options, and added $550 million to the ci*ty's tax base; and
WHEREAS, Kalahari* Resorts and Convention Center will create over 1,000 jobs in its
200,000 square -foot indoor and outdoor water park, 150,000 square -foot convention center,, as
well as their many retail and restaurant spaces; and
WHEREAS, Texas Governor Greg Abbott acknowledged Kalaharl"s contribution to the
City when he said, "Texas is the premier economic destination in America, and that's because of
companies like Kalahari that choose to invest in our top-notch locals, our world -class infrastructure
and the thriving business economy that we have;" and
WHEREAS, in spite of the world-wide COVIDm 19 pandemic, Kalahari opened on time on
November 129 2020 and within budget; and
WHERFAS, because of the pandemicffi
, state and local ocials have issued orders limiti"ng
Kalahari9 s capacity at its hotel, restaurants, bars, and retail spaces, which has significantly
impacted revenue streams; and
Ol 12.20212; 00464793
WHEREAS, because of the pandemic, the governors of other states have instituted travel
bans and/or mandatory quarantining upon persons arriving back to their resident states, causing a
severe downturn. in travel and leisure activities; and
WHEREAS, these capacity limits and other government mandated efforts to curb the
infection rate of COVIDm19 has caused Kalahari Resorts to lose already confirmed and future
convention center business, and to lose anticipated revenue from its water park, retail shops,
restaurants, bars, and entertainment areas; and
WHEREAS, most hotel and travel industry experts anticipate 1*t will be another three to
live years before the hotel and travel industry returns to pre -pandemic levels, and this reduction in
revenue to Kalahari Resorts means lost revenue for the City for that duration, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That the City Council of the City of Round Rock hereby supports legislative efforts in the
87tn legslativeisession to extend the timeline for the tax revenue program granted by Section 351
Texas Tax Code, for the Kalahari* Resorts and Convention Center project, for as many years as
necessary to allow it to realize the benefits of the program extended by the Texas Legislature and
the State of Texas.
The City Council hereby finds and declares that written notice of the date, hour, place and
subject of the meeting at which this Resolution was adopted was posted and that such meeting was
open to the public as required by law at all times during which this Resolution and the subject
matter hereof were discussed, considered and formally acted upon, all as required by the Open
Meetings Act, Chapter 551, Texas Government Code, as amended.
RESOLVED this 1 lth day of February, 2021.
CRAIG M�RGA/Mayor
City of Ro nd R ,Texas
ATTEST:
SARA L. WHITE, City Clerk