Primary Department: Economic Equity and Opportunity
Primary Department Head/Elected Official: Jie Wu, Interim Executive Director
Secondary Department: N/A
Secondary Department Head/Elected Official: N/A
Regular or Supplemental RCA: Regular RCA
Type of Request: Transfer of Funds Only
Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable): Great Wolf Lodge
MWBE Contracted Goal (if applicable): N/A
MWBE Current Participation (if applicable): N/A
Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request
Grant Indirect Costs Rate (if applicable): N/A
Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item
Request Summary (Agenda Caption):
title
Request for approval of payment of fourth quarter Hotel Occupancy Tax (HOT) rebate for Tax Year 2024 (TY24 Q4), calculated by Economic Equity and Opportunity, for GWR Webster LLC (GWR, also known colloquially as Great Wolf Lodge) based on the amended agreement between Harris County and GWR.
end
Background and Discussion:
With assistance from the City of Webster (City) and Webster Economic Development Corporation (WEDC), GWR selected a 30-acre site in Harris County Precinct 2 for an indoor water park resort with a capital investment of $200 million. In order to compete with other potential sites, the City, WEDC, and GWR requested Harris County (County) rebate 2% HOT to GWR, which equals 100% of the total amount of HOT generated by GWR and collected by the County under the Texas Tax Code Chapter 352 for a period of 10 years. The agreement between Harris County and GWR, was approved by Commissioners Court on May 19, 2020. GWR opened on August 7, 2024.
A minimum appraised value of $75 million was set by the agreement and reached in 2025 with an appraised value of $149.2 million. After approval from Commissioners Court on April 16th, 2026, GWR was then paid the HOT rebate of $685,466.88 for TY25 as determined by the agreement. The funding came from Budget Code 2101 Hotel Occupancy Tax Revenue. After receiving the payment, GWR respectfully contested the amount, stating that the intent of the agreement was to include TY24 Q4. This was due to the appraisal of the property occurring in January 2024, prior to the construction of the facility. GWR states that the valuation likely exceeded $75 million in TY24 Q4. The Harris County Attorney’s Office reviewed and concurred with GWR and stated that the amount of the Annual Payment is determined by Section 2(A) of the agreement, and it does not tie to the $75 million taxable value requirement. Instead, it is based on a percentage of the HOT revenues collected by the County. An amendment has been prepared to provide payment for FY24 Q4 to GWR. Upon approval of the amendment, GWR is eligible to receive a HOT rebate of $162,005.89.
Based on a Deposit Detail report from the Harris County Tax Office, GWR’s hotel occupancy tax payments are summarized in Chart 1. Please note that the figures represent the combined totals for tax units 100 and 101; tax unit 102, which pertains to the Houston Sports Authority, is excluded.
• Chart 1: Hotel/Motel Tax Collections System Deposit Detail Report
|
|
Hotel Occupancy Taxes Paid |
|
|
2024 |
|
|
|
3rd Quarter |
84,865.14 |
Grand opening mid-Q3 in August 2024 |
|
4th Quarter |
162,005.89 |
|
|
Total |
246,871.03 |
|
|
|
|
|
|
2025 |
|
|
|
1st Quarter |
175,805.94 |
|
|
2nd Quarter |
197,974.55 |
|
|
3rd Quarter |
187,745.92 |
|
|
4th Quarter |
123,940.47 |
|
|
Total |
685,466.88 |
|
Source: Harris County Tax Office
Expected Impact:
The TY24 Q4 HOT rebate payment fulfills GWR’s request and has been approved by the County Attorney’s Office as consistent with the agreement between the County and GWR. This agreement led to the location of the 30-acre indoor water park resort in Precinct 2, an investment in the community of $200 million, and the creation of at least 350 jobs. At the end of the rebate period of 10 years, the County will gain the added HOT collections for its own purposes. Utilizing the initial estimates of $200 million and 350 jobs, the annual economic impact of GWR on Harris County is $410 million. Meanwhile, the annual HOT rebate will range from $650,000 to $1 million. GWR currently has 582 employees, well above the initial estimate of 350 employees when the agreement was signed in 2020.
Alternative Options:
Declining to approve the TY24 Q4 payment would be inconsistent with the recommendation by the County Attorney’s Office and may adversely affect the relationship between Harris County and GWR.
County Strategic Plan Goal: N/A
County Strategic Plan Objective: M: Ensure that Harris County remains the best place in the region to start and grow a business, with a focus on equitable economic growth.
Justice/Safety Initiative (Goal 1): N/A
Infrastructure Initiative (Goal 2): N/A
Economy Initiative (Goal 3): N/A
Health Initiative (Goal 4): N/A
Climate/Resilience Initiative (Goal 5): N/A
Housing Initiative (Goal 6): N/A
Additional notes related to the Strategic Plan:
Prior Court Action (if any):
|
Date |
Agenda Item # |
Action Taken |
|
4/16/2026 |
135 |
Request for approval of payment of annual Hotel Occupancy Tax rebate for Tax Year 2025. Payment was unanimously approved. |
|
9/13/2022 |
167 |
Request for approval of execution of Estoppel and Agreement from GWR Webster LLC’s Lenders. It was approved 3-0, 2 absent. |
|
5/19/2020 |
4k |
Request for approval of a Hotel Occupancy Tax rebate agreement between the county and GWR Webster LLC, for a proposed indoor water park resort in Webster in Precinct 2. Agreement was unanimously approved. |
Location:
Address (if applicable): 1000 Great Wolf Way, Webster, TX 77598
Precinct(s): Precinct 2
|
Fiscal and Personnel Summary |
|
Service Name |
|
|
|
|
Current Fiscal Year Cost |
Annual Fiscal Cost |
|
|
Labor |
Non-Labor |
Total |
Recurring Expenses |
|
Funding Sources |
|
|
Existing Budget |
|
|
|
|
|
Other |
$ |
$ |
$162,005.89 |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Existing Budget |
$ |
$ |
$ |
$ |
|
Additional Budget Request (Requires Fiscal Review Request Form) |
|
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Additional Budget Request |
$ |
$ |
$ |
$ |
|
Total Funding Sources |
$ |
$ |
$162,005.89 |
$ |
|
Grants - Proposed Budget (For Grants Items only) |
|
|
Labor |
Non-Labor |
Total |
No. of Grant Years |
|
Local Match Source - Existing Budget: Choose an item. |
$ |
$ |
$ |
|
|
Local Match Source - Additional Budget Request: Choose an item. |
$ |
$ |
$ |
|
|
Grant Funds Applied for/Awarded (Total) |
$ |
$ |
$ |
|
|
Personnel (Fill out section only if requesting new Position Control Numbers (PCN)s) |
|
|
Current Position Count for Service |
- |
- |
- |
- |
|
Additional Positions Request |
- |
- |
- |
- |
|
Total Personnel |
- |
- |
- |
- |
|
County Attorney’s Office Legal Review (for Harris County Code Items only) |
|
CAO Reviewer Name and Title |
|
CAO Review Completion Date |
Click or tap to enter a date. |
Anticipated Court Date: 10/15/2026
Anticipated Implementation Date (if different from Court date): Click or tap to enter a date.
Emergency/Disaster Recovery Note: Not an emergency, disaster, or ARPA related item
Contact(s) name, title, department:
Jie Wu Interim Executive Director, Department of Economic Equity and Opportunity
Elizabeth Balderrama, Interim Director, Economic Development Division, Department of Economic Equity and Opportunity
Attachments (if applicable):
• Attachment 1: Agreement Between Harris County and GWR Webster LLC, approved May 19, 2020
• Attachment 2: Amendment to Agreement Between Harris County and GWR Webster LLC
• Attachment 2: IMPLAN Memo Great Wolf Lodge Annual Economic Impact, utilizing inputs as of agreement approved on May 19, 2020