The city of Allen is one step closer to welcoming a massive economic boost with Kalahari Resorts & Conventions with the approval of performance-based incentives and a lease agreement that would allow Kalahari to qualify for state grants. The resort is projected to generate over $5 billion in direct and indirect economic impact within its first decade of operation.
According to a feasibility study by Hotel & Leisure Advisors, the influx of visitors is expected to drive significant spending at local businesses, bolstering Allen’s hospitality, retail and dining sectors. Plus, the resort sounds like a lot of fun.
How The Resort Would Impact The Local Economy
As Local Profile previously reported, the 123-acre resort will feature more than 900 guest rooms, one of the largest indoor waterparks in the country and a convention center.
Even bigger than the 1.2 million square feet of resort space is the economic boost that will provide long-term benefits to residents by enhancing the city’s tax base. The city estimates that it will collect approximately $390 million in new tax revenue during the 38-year agreement, even after offering performance-based incentives to the developer. These incentives operate on a “pay for performance” model, meaning Kalahari will only receive rebates on a portion of taxes paid if the project meets certain milestones.
“This project, in my opinion, is a game-changing opportunity for our city,” said Allen Mayor Baine Brooks during a council meeting on Feb. 25.
“It will boost the local economy and support our community through taxes paid by visitors, not homeowners.”
In addition to tax revenue, the resort is expected to create up to 1,000 new jobs, offering employment opportunities across hospitality, entertainment and administrative roles. The project is also predicted to increase occupancy rates at existing hotels, creating a ripple effect that benefits the entire local tourism ecosystem.
City officials see the Kalahari project as a strategic investment in Allen’s future, one that will not only generate significant revenue but also position the city as a premier destination for family entertainment and conventions in North Texas.
More Reasons Why Allen Wants Kalahari
According to Dan Bowman, executive director of Allen Economic Development Corporation other developers had shown interest in buying the land for warehouse distribution or apartment projects.
“The family that owned this property has been very interested in selling it...so it was going to develop as something,” said Bowman. “This project is an opportunity to do something with this site that drives economic value, creates and amenity, and helps avoid some other uses that might be less attractive.”
What’s Next For Kalahari
Approving incentives and lease agreements marks a significant milestone for the project, but Kalahari's future in Allen isn’t certain. Architectural and site planning usually requires at least a year, followed by a thorough rezoning process. The project is still in the early stages, and securing land and incentives allows the company to justify the significant costs associated with designing such a large-scale development.
Architectural and site planning will take at least a year, and the process requires comprehensive development reviews, zoning approvals and public input. Construction would begin before 2030, with the resort poised to become one of the largest economic drivers in Allen’s history.
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