EDMOND — City council members will spend $2 million on the infrastructure for a new hotel and conference center at Interstate 35 and Covell Road.
City officials have agreed to spend up to $11 million for the construction of the hotel and conference center and sports complex to promote economic development and increase sales tax collections.
The agreement with Covell-35 Development approved this week commits the city to spend $2 million on water, sewer, storm sewer and street improvements. Any expenses that exceed $2 million on the project, called Cross Timbers Park, will be paid by the developer.
The $2 million will come from sales tax collections approved by voters in 2000 for capital improvements.
“Our goal is to have a hotel and conference center developed on this site,” said Assistant City Manager Steve Commons.
City officials earlier spent $2.2 million for 7.1 acres on the northwest corner of I-35 and Covell Road where the hotel and conference center will be built. That money came from the real estate property fund, which comes from interest money on the hospital trust fund designated to buy property.
There will be two more agreements to come before the council. One will be for a 20,000-square-foot conference center and 165-room, full-service hotel, which is the first of what is expected to be a 300-acre development on the three corners of that intersection.
A second agreement is expected for the 170,000-square-foot indoor sports complex with two indoor soccer fields, 10 basketball courts and 18 volleyball courts. The $15 million complex is to be constructed northeast of Covell and I-35.
The agreement for the infrastructure comes with rules.
The developer must provide the engineering plans that meet city standards within six months. City officials will bid and supervise the construction of the improvements.
After the infrastructure is completed, the developer has 24 months to begin the hotel and conference center. The developer must reimburse the city the $2 million for the infrastructure if construction does not start in the 24-month period.
Members of the Capital Projects and Financing Task Force last month recommended the council approve the nine-page agreement.
The vote was 7-0. Task force member Bill Bishop said his “yes” vote was made reluctantly because he doesn't want Edmond to lose its bedroom community status.