What are the terms of the incentive?

  • December 9, 2016

The agreements provide for Kalahari to employ a minimum of 700 and invest at least $350 million in a 975-room resort, 200,000-square-foot indoor/outdoor water park and 150,000-square-foot convention center. The City will own the 351-acre tract of land, which will be leased to Kalahari for up to 99 years. In addition, the City will issue bonds to provide $40 million in net proceeds to construct the City-owned Convention Center, and $30 million to construct city-owned improvements. Also, the City will waive most development fees.

After the debt payments are made each year, the City and Kalahari will share remaining select State and City tax revenues, with 75 percent going to Kalahari and 25 percent to the City in years 1-10 and 50-50 in years 11-40. Based on projected revenues the incentive payments to Kalahari are estimated to be $7.5 million annually for years 1 through 10. The City expects to receive $4.7 million a year in new tax revenue after debt and incentive payments are made for years 1 through 10.