Bulverde will consider authorizing negotiations for a three-year extension of its conference center lease, with the renewal window opening Oct. 1. The Sept. 8 agenda packet recommends giving the city manager authority to negotiate with LHSH, Ltd.
The negotiation concerns a contract that now sends 100% of the site’s hotel occupancy tax to the landlord, makes the city pay conference-center electricity and returns meeting-room revenue to the city. The agreement covers a 5,300-square-foot conference center at the Hampton Inn and requires the landlord to provide a sales coordinator.
The existing 10-year lease began Oct. 1, 2017, and expires Sept. 30, 2027. Bulverde’s option allows one three-year extension, but the city must act within a renewal period running from Oct. 1, 2026, through Jan. 1, 2027. If the city renews, the landlord has 30 days to submit a proposed rental rate.
The current terms list base rent of $200,000 a year, capped at $2 million across the original term. The packet says the city’s 7% hotel occupancy tax at the property has historically produced about $130,000 annually, with recent years closer to $200,000. Its table lists $151,836.69 in fiscal 2026 conference-center lease revenue and $29,100 in meeting-room revenue.
Tuesday’s action would authorize negotiations, not approve a finished extension. City staff says negotiated terms would return to the council for final consideration, most likely in October. Residents can inspect the lease summary and revenue table in the official packet before the 6:30 p.m. meeting at Bulverde City Hall.