A Chapter 380 agreement between the City of Nacogdoches and Fredonia Hospitality, LLC will be considered by Nacogdoches City Council on September 8 at 5:30 p.m., regarding the renovation and reopening of the Fredonia Hotel.
Richard DeWitt who is currently in an option period to acquire the hotel, is also the owner of Clear Springs and Auntie Pasta’s restaurants in Nacogdoches. DeWitt plans to renovate the facility in order to create a unique destination boutique hotel that is one of a kind for East Texas. “The city has been working toward this agreement for some time and we are thrilled to be one step closer as this is a great achievement between the private and public sector,” Mayor Roger Van Horn said. “We know Mr. DeWitt will exercise the same amount of professionalism as with his other business endeavors—which will result in yet another success for Nacogdoches.”
The project qualifies for rebates of hotel-motel taxes from the city. The proposed agreement will allow the hotel to obtain the funds it specifically generates. It is estimated that the hotel will receive 150,000 dollars in hotel-motel taxes per year for ten years.
However, the agreement also requires DeWitt to invest at least 9 million dollars in the hotel via acquisition, restoration, preservation and rehabilitation costs. Additionally, the facility expects to hire approximately 80 full-time employees. An economic impact report stated that the facility projects annual sales of 4.1 million dollars in the first year and 6.7 million dollars by year 5. It is also expected to generate an estimated 27,627,835 dollars in salaries for direct and indirect employees during the first ten years. Forthcoming is also an agreement regarding HB1964, authored by Rep. Travis Clardy, which will allow Fredonia Hospitality, LLC to obtain state hotel occupancy and sales use taxes.
This agreement and its details are currently being reviewed and will be outlined in a future contract.
For more information please call Amy Mehaffey at 936-559-2513.