When city leaders created the Conroe Local Government Corp. in 2019, the entity had a specific job: develop, construct and equip a convention hotel that could help turn Conroe into a regional destination. 

The gist: Completed in May 2023, the Hyatt Regency Conroe and Convention Center has since struggled to meet its original financial projections. Though they maintain that the city’s overall finances remain solid, city officials said that the hotel’s rising debt, reserve drawdowns and recent bond rating downgrades are putting a strain on Conroe’s long-term financial outlook. City leaders are now weighing whether to keep the hotel and manage the debt or explore a sale that could shift risk to a private owner.

The background: The Conroe Local Government Corp., which is run by the city, owns the hotel facilities and is the project’s borrower. The CLGC financed the hotel through three separate lien revenue bonds, with the first and second liens repaid from hotel and city-facility revenue. The bond debt totals around $77.1 million in principal across the three bonds.

There are several events to attend in the Conroe and Montgomery area this weekend. Check them out below. This is not a comprehensive list, and events are subject to change.

Holiday at the Park
Attendees can enjoy meeting Santa, making s'mores, carolers and a holiday cookie walk this Saturday at the Holiday in the Park event at the Montgomery County Veterans Memorial Park.

• Dec. 20, 5-8 p.m.
• Free (admission)
• 1776 Freedom Blvd., Conroe

• Dec. 20, 7:30-9:30 p.m.
• $21-$30
• 225 Metcalf St., Conroe

Conroe City Council voted Dec. 11 to move forward with demolishing the Westside Recreation Center after city staff said the long-shuttered building has continued to deteriorate and sits in a floodway. 

During a November 2024 meeting, Conroe City Council agreed to close Westside Recreation Center by Dec. 31 2024, citing building concerns and the center’s location within a floodway, as previously reported.

What you need to know: During discussion, Nancy Mikeska, deputy city administrator and director of community development, said the city has completed environmental work and Federal Emergency Management Agency permitting and received six bids for the project, selecting the lowest. She believes the work can be completed for the bid amount and that the cost will be covered in the community development department’s budget.

According to the agenda item, the cost is slated at $88,227 and has a completion date of 40 days.

Mikeska cited a string of issues at the facility, including a fire, break-ins and ongoing deterioration.

Conroe City Council approved a bid award Dec. 11 for a new mobile fare ticketing system with the goal of moving the city’s public transportation toward a ticketless, phone-based payment option. 

The full story: Nancy Mikeska, deputy city administrator, said the upgrade is intended to modernize how riders pay fares while speeding up boarding and improving safety by reducing or eliminating cash handling on buses.

Under the system described to council, riders would load fares onto their cell phones, and onboard readers would validate payment “within 200 milliseconds,” Mikeska said, calling it a convenience boost that should also lead to faster loading at stops. 

Staff also said the technology will allow the city to better track ridership and provide riders with real-time arrivals and schedules on their phones.

Council member Shana Arthur raised concerns about residents who don’t have smartphones, but said staff’s research indicated “probably 90% or more” of riders have a phone to use the system, and said the city would not want to eliminate anyone who doesn’t.

Texans now have a new database to track the results of local bond propositions and tax rate elections, or TREs, in their communities and across the state.

The details: Texas’ Local Government Bond, Tax, and Project Transparency Database was unveiled after state lawmakers passed House Bill 103 this spring. The new law requires the comptroller to compile information about all bonds, tax rate elections and maintenance tax rate changes proposed by local governments in an election, including:

• Ballot language for all tax-related proposals
• How each tax measure would impact the local tax rate or debt service
• The difference between the adopted tax rate and voter-approval tax rate, if applicable
• The entity’s tax rate for the prior year and the tax rate following the election
• A list of projects funded by each tax measure
• The results of each election, including votes for and against a measure