Oak Ridge North has formulated an economic development agreement with developer MH 2A, LLC for the development of two hotels and conference center at the southeast corner of I-45 North and Robinson Road.
“While this is a preliminary agreement, with many details yet to iron out, we are pleased by the prospect of redevelopment of this property,” Oak Ridge North Mayor Jim Kuykendall said.
The document states the developer “plans to design and construct two hotels, a conference center, and any and all infrastructure which is necessary to serve the property.” The document provides incentives toward the development of this site and was implemented to allow the developer to proceed with the land and franchise acquisition, which are still pending and subject to change.
The Oak Ridge North City Council and Economic Development Corporation executed the agreement on July 8.
City Manager Vicky Rudy said the city will repay the developer for the construction of the convention center through hotel occupancy tax revenue, but the hotel tax rate, the cost of the convention center and the amount of time required to pay off the convention center is unknown. Rudy and Kuykendall said since the hotel development is an economic development negotiation, no further information will be released until a final agreement is executed.
“Negotiations between the city and developer will continue over the next 30-90 days with a final agreement anticipated by the end of September,” Kuykendall said. “When the development is locked in, and a final agreement is reached, we anticipate joining with developer to make a formal announcement.”
If constructed, the development would be the first hotel built in the city of Oak Ridge North. The city does not currently receive any hotel occupancy tax revenue.