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New Braunfels City Council approved a resolution tying economic incentives to the historic Faust Hotel, located at 240 S. Seguin Ave., during a March 9 meeting.
The agreement with the hotel will provide a hotel occupancy tax, or HOT, rebate to support the ongoing renovation at the hotel in downtown New Braunfels, according to agenda documents.
The details: HOT funds typically go toward promoting tourism and events and are collected by state and local government agencies, according to the Texas Comptroller’s office website.
The Chapter 380 Economic Development Program would rebate 100% of HOT generated by the hotel for five years or $1 million, whichever comes first, Deputy City Manager Jordan Matney said.
The program, authorized by the Texas Local Government Code, allows loans or grants of public funds—such as HOT funds—to incentivize economic development, according to the city’s website.
The agreement would promote local economic development, stimulate commercial activity, increase the property's taxable value and preserve a historically significant building in the city's downtown core, Matney said.
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