Loews plans to build another one of its luxury hotels in Arlington after city officials on Tuesday unanimously approved a nearly $100 million economic-development agreement with the New York company.
“In a public-private partnership with Loews Hotels and Company, the City of Arlington seeks to continue to build on its economic momentum and leverage assets in the Entertainment District through the redevelopment of 14 acres containing an aging hotel product,” according to city documents.
“The redevelopment will include a new 500-room upper-upscale hotel to replace the existing 311-room Sheraton, a minimum of 25,000 square feet of City-owned convention and meeting space, and a City-owned parking garage containing a minimum of 735 parking spaces.”
The agreement requires the 19-story Sheraton at 1500 Convention Center Dr. — built in 1984 — to be demolished by September 30, 2026, reported WFAA. At a total cost of $410 million, the developer will lease the land from Arlington but own the improvements. Arlington will own the convention center and parking garage and will lease both to the developer.
“The project is expected to produce $3.1 billion in economic output over 30 years, with $711 million in net benefits for the City, Tarrant County, and Arlington Independent School District,” the agreement shows. “The project is expected to commence with construction of the parking garage in 2024.”
That part of the development will be connected to Esports Stadium and Expo Center via a weather-protected walkway, providing parking for hotel guests and those visiting the stadium, Arlington Museum of Art, and National Medal of Honor Museum. At delivery, the development is expected to create 250 permanent jobs.
According to the economic development agreement, Loews will receive $5 million from the Arlington Economic Development Corporation toward the cost of site improvements as well as $15 million over seven years toward the cost of the parking garage. The city will provide $20 million over eight years toward the cost of the parking garage and another $3.8 million in grant payments for years one through 10 following the initial occupancy of the hotel. In years 11 to 25, Arlington will provide $1.3 million.
Loews is set to open the 888-room Loews Arlington Hotel and Convention Center in February. The company opened the 300-room Live! by Loews Hotel in Arlington in 2019.
