Houston officials on Thursday unveiled a $1 billion expansion plan for the George R. Brown Convention Center that involves bond financing.
The phase one plan includes a 700,000-square-foot south exposition building that is scheduled to open in May 2028 with two exhibition halls, a multi-purpose hall, and the largest ballroom in Texas. A 100,000-square-foot pedestrian plaza will provide access to the 19,000-seat Toyota Center, the existing NBA sports arena.
"This project is truly transformative for downtown Houston, a lasting legacy that will solidify our position as a top-tier convention and entertainment destination," Houston Mayor John Whitmire said in a statement.
Nearly $2 billion in funding is expected to be raised under a 2023 Texas law, which authorized the use of the state's portion of incremental hotel occupancy tax growth within a three-mile radius of the convention center for 30 years.
Dallas tapped the same revenue stream collected in a project financing zone to help fund a
The Houston City Council has yet to act on up to $325 million in interim financing for the phase one project. Truist Bank would directly purchase $200 million of Series C-2 subordinate lien hotel occupancy tax and parking revenue flexible rate notes, according to proposed ordinances on council meeting agendas. Series C-1 notes totaling up to $125 million would be directly purchased by Huntington Capital Markets.
The notes would be refunded with fixed-rate, 30-year bonds.
"It is imperative for us to stay competitive and meet the needs of our meetings and convention customers," Michael Heckman, president and CEO of Houston First, a local government corporation that operates the convention center, said in a statement.
