Round Rock, Texas City Council approved a $14.5 million construction contract last week for an indoor sports venue being financed in part with $7.8 million of revenue bonds supported by an increase in the Austin suburb’s hotel tax.
The project was initially expected to cost $12 million. The facility will include six basketball courts and 12 volleyball courts.
Voters approved an increase in the hotel tax to 9% from 7% in 2011. The increase will generate $630,000 a year.
Revenue from the tax will provide the additional $6.7 million for the project.
Construction will get under way in early December. The project is to be completed in late 2013.
City officials said Round Rock, which calls itself the “Sports Capital of Texas,” generated about $8 million in economic activity from baseball, softball, and other outdoor tournaments in 2010. The new venue will allow the city to benefit from indoor sports as well, officials said.
