Developer outlines plan to restore Herring Hotel as full‑service downtown hotel; council to consider incentives later
Summary
Developers presented a detailed plan to restore the long‑vacant Herring Hotel into a 226‑room, full‑service boutique hotel with rooftop amenities and a restored ballroom. The city and developers discussed incentives, a proposed tax‑increment participation and tiers developer grant, and a timeline that would bring contract and ownership items back
A national team of historic‑rehabilitation developers and architects presented plans on Oct. 14 to restore Amarillo’s historic Herring Hotel into a high‑end, full‑service boutique hotel. The proposal calls for approximately 226 rooms, restored public ballrooms and meeting space, food‑and‑beverage venues including a rooftop bar and pool deck, and associated streetscape and façade improvements intended to catalyze additional downtown investment.
Why it matters: The Herring is one of the largest historic commercial buildings in downtown Amarillo and has been vacant for decades. Developers and architects said a successful rehabilitation would create a market‑rate, convention‑oriented hotel product that the city currently lacks, supporting nearby businesses and encouraging infill.
Details of the proposal - Development team: Herring Hotel Partners LLC with Campo Architecture (New Orleans) and hospitality operator interest from a national management group (Aimbridge noted as an advisor in the presentation). - Scope: 226 rooms (including suites and double‑queen rooms), restored second‑floor ballroom and mezzanine meeting spaces, first‑floor restaurants, basement food‑and‑beverage and service areas, and a rooftop public amenity with 360‑degree views. - Capital budget: Developers estimate a total project cost of about $90–$100 million (presented as an approximate all‑in figure); staff said incentive requests are expected and would be considered separately. - Proposed incentives: The team has discussed a mix of state and local incentives typically available near convention centers (state hotel/stay incentives and local Tier‑1 property tax rebate); the downtown tiers board and city staff discussed a $900,000 façade/streetscape grant and a reduced hotel occupancy tax rebate schedule in early drafts.
City steps and conditions: Staff and the development team said the project would come back to council for a Chapter 380 economic development agreement, a downtown TIRZ/tier developer agreement (subject to Potter County participation), and any required real‑property transactions (land lease/ownership transfers and leaseback arrangements needed to qualify for some state incentives). Staff noted the owner would seek to dedicate certain blocks and that a leaseback arrangement would likely be used during the incentive period.
Public cost and risk: City staff noted any direct grant payments would be performance‑based and tied to completed scope and verified receipts. The downtown tiers board would approve any property‑tax rebate and grant amounts; staff proposed a short, 10‑year tiers rebate in drafts rather than the longer terms used in other deals.
Timeline and next steps: The developers seek tiers and council consideration with a goal of design, permitting and construction scheduling that could continue through the next 12 months; staff listed tentative steps including tiers board review, county participation and a council vote on the Chapter 380 agreement on Oct. 28 in coming weeks.
Ending: The presentation emphasized the catalytic benefits of historic adaptive reuse while the council and staff signaled careful review of incentive terms and performance guarantees before any public subsidy is finalized.
