News Flash Home
The original item was published from 4/1/2015 12:01:09 PM to 4/16/2015 12:05:01 AM.

News Flash

City of Midland News Release

Posted on: April 1, 2015

[ARCHIVED] City releases proposed terms of downtown hotel development; seeks public input

Santa Rita Hotel

The City of Midland has reached a set of proposed terms with developers of the Hotel Santa Rita, a mixed-use development that is proposed for a city-owned property in downtown Midland.
The tentative agreement will be voted on by City Council members at their regularly scheduled meeting on April 14.

Meetings will be held for the City to receive public input at the following times in the Midland City Hall basement conference room (300 N. Loraine):

  • 11:30 a.m. – 1 p.m. on Thursday, April 2
  • 11:30 a.m. – 1 p.m. on Monday, April 6
  • 5:30 p.m. – 7 p.m. on Thursday, April 9

Under the currently proposed terms, the hotel and its amenities will be funded by private developers. The total cost of the private investment by developers in the downtown property is expected to well exceed $70 million. In addition to this investment, the city has asked the developer to make a “good faith” deposit of $250,000 as an assurance of commitment to the project, and use commercially reasonable efforts to obtain local financing for the project.

Various public entities plan to invest an estimated $9.65 million in downtown, including improvements to Centennial Plaza, landscaping and infrastructure. Additionally, developers will receive the old County Courthouse property upon successful completion of the development.

Breakdown of public funding

The Midland Development Corporation, which is funded by a quarter-cent of Midland’s sales tax for economic development purposes, plans to invest up to $3.5 million in public infrastructure improvements, such as streets and sidewalks, utilities, drainage, and site improvements, in accordance with Chapter 501 of the Texas Local Government Code.

The City of Midland will sell the property to Midland Development Corporation at fair market value – an estimated $2.2 million – to be leased to the developers until the hotel is ready to open for business, at which point the property would be transferred to the Santa Rita Hotel. The City of Midland would use the funds from this sale, along with an estimated $1.8 million, to improve Centennial Plaza as it expands to provide a larger gathering space for community events, as well as additional landscaping. The proposed terms state that permitting fees for the project, which have an estimated value of $750,000, would be waived.

The Tax Increment Reinvestment Zone No. 1 will fund the demolition of the previous County Courthouse, which is expected to cost $1.4 million, to encourage future development of the property.

More about the project

Under the proposed plan, the 4-star boutique hotel have at least 120 rooms, a 5,000-square foot epicurean market, more than 7,000 square feet of meeting space, an undetermined amount of office space, multiple restaurants and lounges, a full-serve fitness center with spa services and parking facility with 359 spaces. The tentative terms that will be presented to City Council state that the developers of the project will be required to break ground by Oct. 31, 2016 and be completed by Aug. 31, 2018. The developers would also need to meet several deadlines regarding design documents and drawings and to secure financing in the 18 months following the signing of the agreement.

The Santa Rita Hotel would add additional property value to an area that has been exempt from taxation for several decades, and is expected to provide an impetus for additional development downtown. Council members voted on a resolution on March 24 to allow for additional public review and comment on the project beyond the original March 31 deadline that was set in December 2014 following a public presentation of the original plans.

To learn more and to stay updated on upcoming public meetings, please visit


Media Contact: Public Information Officer Sara Bustilloz

Facebook Twitter Email

Other News in City of Midland News Release

Outside Agency

Outside Agencies Funding 2024-2025

Posted on: February 26, 2024
Golf Course Survey

Golf Course Survey

Posted on: February 9, 2024
PD release square

SWAT helps MPD make Monday night arrest

Posted on: February 20, 2024
MAF front square

City on record pace at airport

Posted on: February 15, 2024
skyline - square

How Midland ranks for remote workers

Posted on: February 14, 2024
concrete workers - square

Midland among leaders in employment gains

Posted on: February 12, 2024
Traffic alert 2024

Traffic Alert from the City of Midland

Posted on: February 9, 2024
City Local Alert-2024

City of Midland: Water Main Break in Central Midland

Posted on: February 7, 2024 | Last Modified on: February 3, 2014


Posted on: February 5, 2024 | Last Modified on: February 3, 2014
ReNew construction square 1


Posted on: January 29, 2024

Water Contaminant Level Warning

Posted on: December 15, 2023
City of Midland x Delta (1)

City of Midland Press Release

Posted on: December 15, 2023