An agreement between the city and a developer is paving the way for Round Rock’s first boutique hotel in downtown.
The City Council on Thursday approved an economic development agreement with RRTX Lake Creek Hotel LP to build The Ruby Hotel on three acres at 304 Fannin Ave.
The hotel will have 39 guest rooms located in two new buildings overseeing Brushy Creek, according to city staff. The hotel’s design “will stay true to the character and history of the surrounding downtown neighborhood,” according to a city news release.
The existing home on the property will be renovated to include a a meeting space and a bar and lounge, city staff said. A pool currently on the property will also be renovated.
The economic agreement calls for RRTX Lake Creek Hotel to invest at least $4.5 million into the development and have at least 35 full-time jobs. In return, the city will provide payments equal to hotel and motel tax generated during the first four years of the hotel’s operation: 75 percent the first and second years, and 50 percent for the third and fourth years.
The city has agreed to waive as much as $13,000 in development fees for the project if the agreement’s terms are met.
City staff said the name of the hotel was inspired by love letters addressed to “My dearest Ruby” that the developer found on the ground after purchasing the property.
Round Rock Mayor Craig Morgan said the council has long discussed the idea of a boutique hotel.
“It’s part of our city plan with former Mayor Alan McGraw,” he said. “We always thought it would be nice because we don’t have that type of product.”
He said the hotel’s proximity to downtown and local venues, including The Grove wedding venue located on Fannin Avenue, will help generate traffic downtown and contribute to the city’s sales tax and motel tax.
“Chain hotels do a lot for us; they provide a great service to our citizens,” he said. “But at the same time, there are certain groups of travelers that want to stay at a place unique to the area.”
A groundbreaking is slated for the end of March with a planned opening in early 2019.
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