Midway Development Group scored a generous incentive package from the City of San Marcos, which was enough to kickstart a hotel project on the Texas State campus. The Austin Business Journal reports the developer received a $9.1 million incentive agreement from the city of San Marcos that would provide the developer with a maximum of 10 lease payments. There will be a rebate of 95% of both sales taxes and hotel occupancy taxes that are drawn down over time, potentially to 25%. There’s also a rebate of construction sales taxes. That’s all assuming Midway spends over $40 million on the project.

The town’s approval effectively clears the way for the 130-room, full-service hotel at 429 N. Guadalupe St. The 120,000-square-foot project will have an event lawn and amphitheater, restaurant, bar, pool, courtyard and meeting and event space.

Construction is required to start by the end of 2026 and be completed within 30 months.

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