Round Rock Officials Approve Kalahari Resort Agreements

ROUND ROCK, TX — The board of directors of the Round Rock Transportation and Economic Development Corporation (TEDCo) and the Round Rock City Council have approved a series of agreements related to the Kalahari Resorts indoor water park project, bringing the attraction that much closer to becoming a reality.

The most significant agreements approved at meetings on Thursday, April 26, are a $40 million construction agreement with Hensel Phelps to construct the city-owned convention center that will be a feature of the project, and a $15 million agreement with Kalahari for the construction of onsite public improvements, that includes roads and water and wastewater lines, officials said. Both contracts are with TEDCo.

TEDCo will issue bonds for the construction, which will be repaid from tax revenues generated by Kalahari Resorts, officials said. Thereafter, Kalahari will stage a groundbreaking for the project on May 15.

The city council also approved a convention center operation lease with Kalahari, with an agreement that the structure be city-owned. The lease stipulates that Kalahari is responsible for all operation and maintenance costs, according to the agreement. By owning the convention center, the city is able to qualify for a rebate of about $50 million in hotel-motel tax and sales tax revenues from the State of Texas, officials noted.

The Council also approved a supplement to the Master Development Agreement with Kalahari providing for the on-site roads to be constructed in two phases rather than just one.

Moreover, council approved an amendment to the ground lease that releases the convention center lot from the lease. The wastewater line that will serve the convention center runs under the hotel, and the amendment states Kalahari will be solely responsible for maintenance and repairs of the line.

Kalahari announced in June 2016 its intent to build a resort and convention center in Round Rock. The City Council approved an economic incentive package for Kalahari in December 2016. Zoning for the project was approved at the April 12 city council meeting.

Kalahari officials have committed to invest at least $350 million into the project, which will create significant property tax revenue to municipal coffers while bolstering the tax base of both Williamson County and Round Rock ISD.

City officials anticipate the project will bring in approximately $4.7 million in annual net, direct tax revenues to the City in the first 10 years of operations. Officials also envision the development as one that will attract additional business, development and investment in Round Rock and Williamson County.

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