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MARBLE FALLS — Developers of a hotel conference center project have agreed in a contract to create several dozen jobs and pay a portion of profits to the city on land adjacent to Lake Marble Falls, officials say.

Novak Cobalt Partners inked the deal during the regular meeting of the Marble Falls Economic Development Corp. on Sept. 7.

The $26 million-$28 million project is proposed to be primarily funded through private investors; however, the EDC has pledged about $6.5 million subject to approval by the Marble Falls City Council.

Developers plan to build on property owned by the EDC, which approved a 90-year lease on the property with a base rent of $200,000 per year.

“We have a system in there for the draw schedule. We don’t give the $6.5 million up front. It has to be tied to the project,” EDC Executive Director Christian Fletcher said. “It’s about a two-year period. Because it’s a construction project, it has to be a little bit flexible.”

Contract details include a goal of 35 “job equivalents,” where two part-time jobs would equal one job equivalent while a full-time job is counted as one.

“If the number ever drops below 35, there are penalties involved, so we wanted to be as conservative as we could so we don’t have to rewrite or amend the document,” Fletcher said. “We know the number will be higher than that. Contractors or those involved in the building process will be over and above that.”

In addition to “base rent,” a so-called “performance rent” stipend would involve the private partner paying 25 percent of any room revenue over $2 million annually.

“That’s a very typical retail contract arrangement,” Fletcher said.

Officials estimate the partner would contribute about $180,000 per year to the Tax Investment Recovery Zone (TIRZ). The figure represents 75 percent of the tax to be dedicated to downtown revitalization.

Approximately $45,000 per year would go into the city’s general fund, Fletcher said..

“At every step in that draw schedule, we’re inspecting from the city side to make sure those goals are being met,” he said.

A joint meeting between the EDC and the council is scheduled for Oct. 18 to authorize the proposed issuance of the $6.5 million in bonds to support the project.

9 thoughts on “Hotel developer signs Marble Falls EDC contract tied to jobs and profits

  1. Folks this item is up for discussion at the next council meeting. It’s to approve issuing the bonds for this project.. people should know that the citizens can petition to make it so the voters can decide if they want this to happen. They need the signatures of 10% of the registered voters to make it go to the ballot box.. Let the voters decide on this as the current council will definitely vote to push it through if people don’t say anything.

  2. Hahaha, yeah just like the Ronco deal they made too. How did that work out for you? That’s right they defaulted on it, wasted tax payers money. Get ready for this boondoggle. How about the business park? There’s like 6 businesses in it for all that infrastructure. Why not let private business pay for like we have to.

  3. What’s going to happen to the boat ramp and Christmas by the Lake?

    1. The boat ramp is slated to be moved to the west side of the current pavilion. As far as the Christmas by the lake. It could possibly still be in that area. The concept plan looks like there will enough room to accommodate it.

  4. This is actually great for the town. More jobs, more folks to the downtown area that will inevitably be a huge advantage to the locally-owned businesses along Main Street and elsewhere in the area. The bypass will happen eventually. It’s needed, and not just for MF but for the region. It’s only a matter of time.

  5. I’m think y’all are making to many changes to what use to be a nice quiet friendly town. You turned down the bypass and yet you still want turn this into a many Austin. We don’t have the infrastructure!!!! The traffic is already terrible and worsened just in the last couple of years. And don’t get me started on the truck traffic! I say this is huge mistake until you concentrate on some of the other problems in town!!!

  6. Hmm so once again the edc is using money which they got from tax payers to pay or help a private business to supposedly create new jobs.. and to top it off these jobs will most likely be low paying.. And this new development will be right next to the skate park. Oh they will make the skaters move because no no no we can’t have that next to our fancy new hotel conference center.

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