The town of Queen Creek has agreed to sell more than 2.4 acres of town-owned land for the express purpose of building a hotel.
The proposed hotel would be located on the southwest corner of Ellsworth and Rittenhouse roads, not far from the current Hampton Inn Queen Creek at 20768 E. Maya Road off Ellsworth Road and behind the Sprouts Farmers Market.
At the June 1 Queen Creek Town Council meeting, council members voted to approve the sale of the land to HD Management for more than $1.9 million.
“Four proposals were submitted for the town’s consideration. After review of the proposals, the town council directed staff to enter into exclusive negotiations with HD Management for the negotiation of a purchase and development agreement for a hotel,” according to a staff report.
A stipulation of the sale was that only a hotel could be built on the property and have the following characteristics: Branded Homewood Suites by Hilton (or comparable brand); at least five stories and not fewer than 125 rooms, including no fewer than 20% as suites; and include conference facilities, swimming pool and fitness center, a staff report stated.
“The hotel may be a limited service or extended stay hotel but cannot be a budget (or similar) hotel,” was another stipulation, according to the staff report.
Hilton has not returned a call by the Queen Creek Independent for comment.
The developer of the hotel is Queen Creek Hospitality Group, an Arizona limited liability company.
All costs of constructing the hotel will be the buyer’s responsibility, while the agreement will require the town “to underground the drainage on the site. This cost is estimated to be about $204,075. The town will also pay 50% of real estate closing costs which are estimated to be about $4,000. These costs will be incurred next fiscal year and the Town Center Fund has sufficient budget authority in FY 2022-23 to accommodate these costs,” the staff report stated.
What the town gets in return will include one-time and ongoing revenues to the town’s operating budget.
“One-time revenues related to construction sales tax are estimated at approximately $600,000. One-time revenues for building permit fees, development impact fees and utility capacity fees are projected to be $615,000. Ongoing revenues related to the town’s primary property tax are projected to be $23,000, and sales tax collections directly related to the hotel are estimated at approximately $150,000 annually,” the staff report stated.
The hotel also will generate about $160,000 annually in bed tax revenue. Under state law, the bed tax is restricted for use on tourism and tourism-related activities. The town’s current bed tax rate is 3%.
Along with the direct revenue the hotel will generate for the town, the new hotel will offer temporary construction jobs and permanent full-time employment to the area. The hotel also is expected to increase business for surrounding shops and restaurants.
Development and construction of the hotel will still be subject to the town’s plan submittal, review and approval processes.
Construction of the hotel is expected to start around March 31, 2023, with a completion date set for on or before June 30, 2024.
The town’s first hotel, the Hampton Inn Queen Creek, opened in December 2020 and contains 107 rooms. Before opening, the closest hotel to Queen Creek was the Hampton Inn & Suites Phoenix East Mesa.
Janet Perez News Editor | Queen Creek &
San Tan Valley @AzNewsmedia
Meet Janet Janet Perez joined Independent Newsmedia as editor of the Queen Creek Independent and Florence Independent in 2020. She started her career in 1989 with the Gannett-owned El Paso Times. In 1992, she moved to Tempe and has worked in newspapers, magazines, radio and television. She left Arizona for three years to work at New Mexico State University and Baylor University before returning to work at Arizona State University. Missing the business, she went back to journalism in 2017.
Community: A long-time pet owner, she supports animal welfare causes.
Education: University of Texas at El Paso with a BA in journalism and a minor in political science.
Random Fact: She had a head full of random facts.
Hobbies: Reading, watching documentaries, cooking and playing with her dogs.
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