**Midway Secures Incentives for $40M San Marcos Hotel Project**
Midway Development Group has secured a substantial incentive package from the City of San Marcos that will pave the way for a new hotel development on the Texas State University campus. The Austin Business Journal reports that the city approved a $9.1 million incentive agreement to support the project.
Under the agreement, Midway could receive up to 10 lease payments, as well as a rebate of 95% on both sales taxes and hotel occupancy taxes generated by the hotel. These rebates may gradually decrease to 25% over time. Additionally, the developer is set to receive a rebate on construction sales taxes. All incentives are contingent upon Midway investing more than $40 million in the development.
The project, located at 429 N. Guadalupe St., includes a 130-room, full-service hotel spread across 120,000 square feet. Planned amenities include an event lawn and amphitheater, restaurant, bar, pool, courtyard, and various meeting and event spaces.
Construction must begin by the end of 2026 and be completed within 30 months.
