What about the garage adjacent to the Omni? I've read it only hits full capacity a few days a year, the city could make some spare change leasing out some of it?....This hotel is also proposed 4 1/2 blocks from the ITC and 1 block from convention. I wonder how many convention goers will be arriving by TexRail (from airport) and simply not using a car? Probably not enough to support an entire hotel, but maybe enough to not need a 1 to 1 ratio of parking space per room.....
There are other garages and surface lots nearby. I assume there's any number of tax and accounting reasons why it would be beneficial to sell the garage and lease back the space. It happens all of the time with commercial real estate. I don't get why it's so hard to take XTO's word at face value on this. What's their benefit in lying about that?
As earlier suggested, it is highly doubtful that the developer has not thought through the parking needs of the hotel and arriving at the conclusion that the developer would not be proceeding without a strategy in place.
The 1:1 ratio is more essential in the auto-centric, underdeveloped transit network that characterizes Texas. The convention goers, as well as everyday users of the hotel will need rental cars to access the local tourist and business destinations. TexRail will be used, but many of Fort Worth’s convention tend to be state & regional gatherings that draw conventioneers who originate within a reasonable driving distance.
So what explains what XTO has done?
Suppose this scenario: “you own a vacant lot..you improve it by building a home on it.. you then sell the home before it is completed, just to lease it from the buyer so that you can provide your brother (employee) free housing (parking)”. You do this for tax purposes while foregoing income. Does this explains what XTO is doing?
Now suppose this scenario: XTO takes that improved lot and sell it for a profit...XTO and the buyer agrees to set aside a predetermined spaces for your employees, even though XTO does not specify which of its employees get free parking (is all or is it a portion) and freeing up the remaining spaces so that the buyer can lease the remaining spaces to anyone willing to pay for it 24/7...you say parking for XTO employees which you want to be read as “everyone” so that none of your employees will have an inkling of when there is a potential a down sizing of personnel. Even when personnel is reduced, both XTO and WM continue to have a revenue stream from the garage. Does this possibly explains what XTO is doing?
WM must see this project as a rich vein of revenue stream beyond XTO; otherwise, why purchase just to be a leasing agent. WM will operate this project 24/7; a hotel is a 24/7 business. Downtown is a 24/7 destination; the hotel is a downtown destination.
The initial rendering of this hotel is glaringly conspicuous for the lack of two features: a large meeting space and a parking garage. I suggest that the meeting space will be the new convention center and that the parking will be provided by leasing some of the current (Cowtown Parking Plaza) space.