The recent decision by Amarillo’s downtown Tax Increment Reinvestment Zone (TIRZ) board to advance an incentive package for the long-vacant Herring Hotel has brought renewed attention to one of the city’s most prominent historic buildings—and to the broader debate over the role of public incentives in private redevelopment. Supporters view the proposal as a rare opportunity to revive a landmark that has sat empty for decades, while critics raise concerns about fairness, precedent, and the use of taxpayer-backed mechanisms to support a single project.
At the center of the discussion is a proposed redevelopment of the former Herring Hotel, located at 311 S.E. Third Ave., into an upper-upscale boutique hotel. The TIRZ board voted to approve a developer agreement with Herring Hotel Partners LLC, making the project eligible for performance-based incentives tied to future tax revenue generated by the property. The vote was not unanimous; Tom Warren II was the lone board member to oppose the agreement.
How the incentive package works
Under the agreement, the developer would be eligible for a 100% reimbursement of the annual ad valorem tax increment generated by the property for 10 years. In addition, the board voted to fund up to $900,000 in a one-time reimbursement grant for infrastructure and façade improvements. The agreement also includes $244,000 in reimbursement to the City of Amarillo to clear a federal interest encumbering city-owned property associated with the project.
City staff emphasized that the incentives are entirely performance-based and involve no upfront payments. As staff told the board, “If they don’t build a hotel and pay the tax, we don’t rebate anything.” During construction, the city would continue receiving the same level of tax revenue it currently collects from the property, with the increased tax value generated by the improvements rebated to the developer during the 10-year term. After that period, the full increased tax revenue would flow to the city and other taxing entities.
Project scope and requirements
The agreement places significant obligations on Herring Hotel Partners LLC. The developers must commit to at least $90 million in capital investment and create a hotel with a minimum of 200 guest rooms. Planned amenities include a restaurant, a rooftop bar and lounge, an outdoor pool, and meeting and event spaces. The hotel must operate under a nationally recognized upper-upscale boutique brand, with examples cited including Marriott’s Tribute Portfolio, Hilton’s Curio Collection, IHG’s Kimpton, or another comparable brand approved by the city.
The agreement also establishes deadlines for starting construction, achieving substantial completion, and obtaining a certificate of occupancy. Incentives are only paid after these milestones are met. During the meeting, architect John Campo of Campo Architects presented preliminary plans, outlining how the historic structure would be preserved while accommodating modern hotel features.
Todd Harmon, who leads the investment group behind Herring Hotel Partners LLC, told the board the project builds on his experience with historic redevelopment in Amarillo, including involvement in the downtown Barfield redevelopment.
Location concerns and safeguards
Potter County Commissioner John Coffee, who also serves on the TIRZ board, said he approached the proposal with skepticism, particularly regarding whether the Herring’s location is ideal for a high-end hotel.
“It’s not maybe the most optimal spot for restoration,” Coffee said after the meeting, describing the site as more isolated than other downtown hotels. He noted, however, that it remains within walking distance of downtown restaurants, venues, and attractions—and that the building’s location cannot be changed.
“You can’t move the building,” Coffee said. “It’s been there a long time, and people have been looking at it for over 50 years.”
Coffee said another factor in his decision was the risk of continued inaction. If the building remains vacant, he said, the city could eventually be forced to intervene.
“That point about the building just continuing to sit there — at some point the city may have to deal with it,” Coffee said. “And that could mean demolition down the road.”
Ultimately, Coffee said the performance-based nature of the agreement was decisive. “For me, it was imperative that we’re not going to be out any money,” he said. “He’s going to have to spend the money, get the certificates of occupancy, and only then do the incentives kick in.”
Under the agreement, Coffee emphasized, the city continues to receive its existing tax revenue during construction, with full collections after the reimbursement period. “We’ve got to look down the road,” he said. “We can’t have everything immediately.”
Opposition based on principle
Tom Warren II’s vote against the agreement was rooted less in opposition to the project itself and more in concerns about fairness and government involvement in private development.
“I probably want to see the Herring restored as much as anyone,” Warren said. “But at the end of the day, it comes down to picking winners and losers, and I’m not for that.”
Warren, who is president of the Amarillo Historical Museum and serves on the Amarillo Independent School District Board of Trustees, said he remains uneasy about the scale of the incentives and the precedent they could set for future projects.
“I wish them luck,” he said. “I think under the right circumstances, it could be a great success. I just have an uneasiness in my spirit about it.”
Public comment reflects a broader divide
Public comment during the meeting underscored long-standing divisions over both the Herring Hotel and the broader use of tax incentives. Supporters argued that large-scale historic preservation projects often require layered incentives to close financing gaps, especially when decades of neglect have driven up rehabilitation costs. They described the Herring as one of the last major historic redevelopment opportunities in the region.
Opponents argued that the agreement could put businesses that renovated or built properties without public assistance at a disadvantage. Amarillo resident Craig Gualtiere expressed his concerns, saying, “You are redistributing wealth. You’re taking money from taxpayers and giving it to one private project, while others had to go to the bank and do it themselves.”
Although Gualtiere supported the revitalization of the Herring Hotel, he stressed that he did not believe tax funding should financially benefit the partnership. He noted that the renovations could impact the local hotel economy and draw business away from established hotels.
“You’re picking winners and losers. If it’s that good of a project, which I think it is, then they can do it on their own. I mean, there’s a few people who walk up here, and they’re investors in it. They must believe in it. Why can’t they go and get the bank money or put their own money up to do it? Why do they depend on the taxpayers to subsidize their business?” Gualtiere said.
Another speaker suggested a stepped-down reimbursement model tied to revenue benchmarks rather than offering a full 10-year, 100% reimbursement.
The cost of doing nothing
City staff stressed that the city is not financing the project and does not conduct lender-style credit checks because there is no upfront financial exposure. At the same time, officials warned that allowing the building to continue deteriorating could ultimately impose higher costs on taxpayers.
Amarillo City Manager Grayson Path told the board, “The biggest risk to taxpayers is letting the building continue to fall into disrepair.” City officials have cited estimates suggesting that if redevelopment efforts ultimately fail, demolition of the structure could cost up to $5 million.
Staff also noted that the project aligns with long-term TIRZ goals to add 1,200 hotel rooms downtown near the Amarillo Civic Center, a target viewed as critical for supporting conventions and large events. Officials said the district is currently at about 37% of that goal, and the Herring redevelopment would represent a significant step forward.
A landmark with a long history
The Herring Hotel occupies a unique place in Amarillo’s history. Built in 1926 by businessman C.T. Herring during the city’s oil-boom era, the 14-story building was among the tallest in Amarillo at the time. For decades, it served as a social and business hub, hosting travelers, civic events, and prominent visitors.
The hotel closed in 1966 and was later converted briefly to office use before falling largely vacant. For more than 50 years, its size, age, and deteriorating condition have made redevelopment difficult. In 2024, the building was added to the National Register of Historic Places, a designation that highlights both its cultural significance and the complexity—and cost—of restoring it.
Looking ahead
The Potter County Commissioners’ Court is set to hear an update on the Herring Hotel from the TIRZ board during its Jan. 12 meeting at 9 a.m. The meeting will take place in the Potter County Commissioners’ courtroom at 350 S.E. 6th Ave., Suite 2141.
The agreement still needs approval from the Amarillo City Council before it’s finalized. A date for the council to take it up hasn’t been set yet.
The TIRZ board’s vote does not guarantee the project’s completion, but it clears a key hurdle. The agreement now moves through additional governmental approval processes, and the developers must meet strict performance requirements before any incentives are paid. As the project advances—or stalls—it will continue to serve as a focal point for discussions about historic preservation, economic development, and the appropriate use of public incentives in shaping Amarillo’s downtown future.
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