If the proposed location is approved, it would include indoor and outdoor waterparks, a large convention center, and employ up to 1,000 people.
ALLEN, Texas — The city of Allen crossed the first step to potentially bringing an indoor and outdoor water park resort and convention center to North Texas.
In the Feb. 25 city council meeting, all but one councilmember — who was not present to vote — unanimously voted to approve the Allen City Manager to negotiate and execute, on behalf of the city of Allen, a hotel land lease agreement with Kalahari Resorts & Conventions.
Allen Economic Development Corporation (AEDC) Director Daniel Bowman presented the lease agreements and an economic incentive package in support of the project during their Feb. 25 meeting. Bowman noted this is first step in a lengthy process, which includes, but is not limited to, a zoning application, public input and a final council vote.
The proposed location that Kalahari Resorts & Conventions has expressed interest in developing, according to Bowman, is a sector of land at the intersection of State Highway 121 and Stacy Road.
The proposed location would include indoor and outdoor waterparks and a large convention center with more than 900 rooms, Bowman said. The resort is expected to employ up to 1,000 people and could include an investment of $950 million, according to background included in the city council agenda item.
The $950 million price tag is estimated to be at least $375 million more expensive than the Round Rock resort, which opened in 2020 and cost $575 million at the time it was built. Most of the cost increases are driven by inflation, construction cost increases and financing considerations, Bowman said.
A feasibility study conducted by Hotel & Leisure Advisors estimates that, in its first 10 years of operation, the Kalahari site in Allen could generate $5 billion in spending, including money spent at the Allen resort and money spent at other Allen businesses indirectly. The development would also create a new source of property tax revenue to support the city, as well as the county, school district and Collin College.
The city of Allen, AEDC and Allen Community Development Corporation (ACDC) are expected to collect $390 million in taxes from this facility during the first 40 years of operation, according to Bowman. The expected increase in tax revenues from tourism and conventions would allow the city to decrease the tax burden on residents, Bowman said.
Bowman said the goal of the company would be to open the park by 2030 — or earlier if possible. Bowman said projects of this magnitude take roughly two years to design and three years to construct.
