For the last two years The Colony has been home to one of the premier LPGA golf tournaments in the country.
Soon it will have a hotel that city leaders say has been the missing piece.
Tuesday, The Colony City Council approved several items that help bring forward a $20 million hotel at Old American Golf Club. Project leaders said it’s the next big piece to the Volunteers of America Classic.
Kristian Teleki, senior vice president of development at Matthews Southwest, said the hotel will be located immediately north of the Old American Clubhouse.
Teleki said the hotel is tentatively set to have 126 rooms and will have four floors, five including a walkout to the 10th hole of the golf course.
It will include approximately 7,000 square feet of meeting space and conference rooms.
Teleki said the hotel is being targeted as “lakeside boutique” and could be used for weddings and event space.
Assistant City Manager Tim Miller said the hotel will have multiple benefits.
“One of the issues we’ve had with the LPGA event is that there aren’t enough hotels nearby, so people stay outside The Colony,” Miller said. “This will help bring people in.”
Teleki said this also helps the LPGA.
“They have told us that if you look at some of the better events there are some really nice resort hotels,” Teleki said. “We’ve always envisioned one here, and this helps us in getting across the goal line.”
Miller said The Colony residents will see a benefit as well. The council approved multiple amendments to its Tax Increment Reinvestment Zone (TIRZ) No. 2 ordinance, which, among other things, changes the rate that the developer keeps from the TIRZ revenue.
To secure the finance, Matthews Southwest was seeking to extend some of the agreements it has with the city. The city agreed but in return asked for a renegotiating of some of the TIRZ revenue splits. As a result, the developers’ share will go down from 70 percent to 45 percent, which means the rate that goes to the city will go from 30 percent to 55 percent, Miller said. He said that translates to approximately $150,000 a year.
And then there’s the future of the LPGA tournament in The Colony.
The contract between the city and LPGA for the Volunteers of America Tournament ends in 2022.
“This really gives us leverage to extend that contract,” Teleki said.
Teleki said construction should commence by the end of 2020 and that the project should be complete by late summer or early fall of 2022. “The opportunities this is going to give us is unbelievable,” Mayor Pro Tem David Terre said. “This is going to give us all kinds of opportunities beyond the LPGA, having the ability to have all kinds of companies come here. We have to great golf courses out there, and to have a $20 million hotel they can stay at and conduct meetings, it’s going to be terrific.”