February 26, 2025 - The Allen City Council reached a major milestone by approving economic incentives and a lease agreement for the highly anticipated Kalahari Resorts & Conventions project. These approvals bring the possibility of America’s Largest Indoor Waterpark one step closer to becoming a reality in Allen.
A Transformative Development for Allen
Kalahari Resorts, renowned for creating massive indoor waterparks paired with family-friendly resorts, has its sights set on a 123-acre site at the southwest corner of State Highway 121 and Stacy Road. Currently under contract with the Allen Economic Development Corporation (EDC), this site could soon house a 1.2-million-square-foot resort with exciting features like a 900-room hotel, an indoor and outdoor waterpark, a convention center, and a family entertainment facility.
Allen Mayor Baine Brooks has described the project as a “game-changing opportunity” for the city. By offering a unique blend of amenities and attractions, Kalahari is expected to provide an economic boost through increased tourism, employment opportunities, and tax revenues. The resort project is estimated to represent a nearly $1 billion investment.
Boosting the Local Economy
A feasibility study by Hotel & Leisure Advisors predicts this development will generate more than $5 billion in direct and indirect spending within the first decade of operation. This spending will come largely from out-of-town visitors, helping to shift the tax burden away from residents and offset the costs of city services.
The City of Allen projects approximately $390 million in new tax revenue over the span of a 38-year agreement with Kalahari—even after partial tax rebates as part of their performance-based economic incentives. Kalahari's presence in Allen would add new tourism capacity to enhance – not compete with—current Allen hotels. In fact, Hotel & Leisure Advisors predicts all Allen hotels will experience higher occupancy, revenue and visitors if Kalahari opens. In addition to its contribution to Allen’s tax base, the Kalahari project would result in up to 1,000 new jobs.
Performance-Based Incentives Ensure Accountability
Allen City Council approved a suite of “pay-for-performance” incentives to support the project. This approach ensures that Kalahari must meet specific development milestones and performance metrics to receive any financial benefits. If these are not met, all funds and land will remain with the City, minimizing financial risk. Dan Bowman, Executive Director of the Allen EDC, emphasized the importance of accountability in these agreements, stating, “We want to ensure developers are committed to Allen and demonstrate a significant motivation to deliver on promises.”
Community-Centric Approach
Kalahari’s leadership has a strong track record of community involvement, as demonstrated through their successful property in Round Rock, Texas. The Nelson family, owners of Kalahari Resorts, has expressed their commitment to engaging Allen residents early in the development process. This includes hosting community meetings, addressing concerns, and incorporating public feedback into their plans. “With its welcoming spirit, family-focused values, and vibrant growth, Allen is a community that truly embodies what we stand for,” said Todd Nelson, CEO and Founder of Kalahari Resorts.
In addition to attracting out-of-town guests, Kalahari has proven to be a cherished amenity and valued partner in other communities where it operates. Locals can purchase day passes and season passes to enjoy waterpark amenities, and many of the resort’s entertainment and dining options are open to the public. Kalahari also partners with local organizations and initiatives to support community events, schools and charities.
Next Steps for the Kalahari Project
While the approval of incentives and lease agreements marks a significant step forward, many stages of planning and approval remain before the resort becomes a reality.
Over the next year, the Kalahari project team will focus on architectural and site planning, followed by a zoning and development review process that includes ample opportunities for public input.
Stay up to date on this exciting project by following the City of Allen’s updates.
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