The Avondale City Council on Oct. 6 adopted a notice of intent (NOI) to enter into an economic development tax‑incentive agreement with Web Avondale Investments LLC for a proposed full‑service Embassy Suites hotel and conference center, a step city staff said is required by state law before approving the final agreement.

The proposed project described in the staff presentation is a six‑story, full‑service Embassy Suites with roughly 180 rooms and about 10,000 square feet of conference and meeting space. Staff described the transaction as a 7.5‑year lease‑to‑purchase arrangement: an initial construction/phase period, followed by operational years with escalating lease amounts and a commitment that the developer will purchase the property within the lease period at an estimated price of $18.75 per square foot (an estimated purchase price of about $2.9 million pending final legal description).

City staff said the completed project is estimated to have a $115 million total value and that an independent economic analysis by Rounds Consulting projects about $12.2 million in direct revenue to the city over 10 years. Staff listed estimated city contributions tied to the incentive package at approximately $1.3 million (fee reductions, impact fee caps, limited construction sales tax reimbursements and phased lodging tax reimbursements) and projected direct public benefits valued at about $1.4 million (conference access days, discounted rentals for Avondale businesses and residents, in‑room digital advertising placement and retail space for city merchandise).

Staff said the NOI is a statutory 14‑day procedural step required before staff may present a development agreement and lease terms for final approval; the consultant study was attached to the NOI. Staff said they expect to return to council on Nov. 3 with the proposed lease‑to‑purchase agreement and development agreement and that additional predevelopment steps (site plan review submittal and approvals) are scheduled through 2027 under the preliminary timeline.

Council discussed the hotel’s role in tourism and business attraction and the public benefits package. Supporters on council said a full‑service hotel and conference space would increase Avondale’s ability to host regional events and capture tourism and meeting business that currently goes elsewhere in the valley. Council member Solorio (a former hospitality manager who described more than a decade of industry experience) and others said the hotel fills a market gap in the West Valley.

Action taken: Council member White moved and Council member Salorio seconded a motion to adopt the notice of intent; the council voted to approve the NOI. Staff was authorized to continue negotiations and prepare the development and lease documents for council consideration at upcoming meetings.