Sugar Land City Council has approved a guaranteed maximum price of $74.3 million to build an indoor performance venue that will be the first of its kind in the region and set a new standard for “ the theater of the future.”

Construction is expected to begin with a formal groundbreaking event on Dec. 9.

The venue – located on a portion of 38.5 acres of City property southeast of U.S. Highway 59 and University Boulevard – is designed to host a wide range of performances, including national music and comedy artists, children’s and family entertainment, theatrically staged productions and cultural and performing arts attractions.

With an approximate indoor seating capacity of 6,430, the indoor performance venue was conceived and designed for flexibility, essentially creating several venues in one building. Through the use of innovative moveable walls, Sugar Land’s facility will literally expand and contract to create intimate settings of approximately 3,300 to larger shows of over 6,400.

The venue will feature comfortable, spacious theater seating with cup holders; luxury suites; corporate hospitality areas; quality finishes and convenient parking. It will create an iconic landmark visible to motorists on U.S. Highway 59 and anchor a mixed-used development envisioned to include retail, office, commercial and residential surrounding a public plaza and possibly a full-service hotel and conference center.

It’s a concept that doesn’t currently exist in the Houston market. As one of the most flexible and advanced indoor performance venues in the nation, it’s expected to set a new standard in the touring industry and change the entertainment landscape in the “Houston-The Woodlands-Sugar Land” metro region.

Sugar Land partnered with ACE SL, LLC (ACE) to design and construct the state-of-the-art facility. ACE, whose parent company is ACE Theatrical Group, brings an experienced team of locally-based entertainment industry professionals to the project, led by Allen J. Becker, TONY Award-winning founding chairman of PACE Entertainment Corporation. The ACE executive team also includes Brian E. Becker, Gary D. Becker, David M. Anderson, Gary A. Markowitz and Kirk B. Feldmann. Together, they offer more than 175 years of experience and success in local, national and international entertainment ventures, including pioneering the development of new music and theatrical venues, as well as the entertainment to fill them.

“ This new performance venue will allow residents of Sugar Land and the surrounding area to experience a level of live entertainment that until now has not been available,” said ACE Theatrical Group Chairman Allen Becker. “Bringing a first class cultural entertainment venue to the City of Sugar Land is an exciting opportunity, and ACE is grateful to be a part of the project from the start.”

The economic development strategy for Sugar Land’s indoor performance venue was structured to establish Sugar Land as a destination location for culture and entertainment as well as creating an amenity that is commercially self-sustainable.

A 2008 Market Analysis and Feasibility Study and an updated 2012 study performed by CSL International identified that the Houston market did not have a 6,500-seat live entertainment venue and concluded that market demand would support the first financially feasible and commercially sustainable venue of its size in the region.

Studies show this venue will promote capital investment, create new jobs, enhance educational opportunities, increase tourism and create unique destination activities attracting local and regional visitors. Additionally, the venue and surrounding plaza will be a major focal point of what is planned to be a vibrant, commercial district - an environment that will certainly be attractive to major corporations, residents and visitors.

“A feasibility study conducted in 2012 shows the project will provide an annual benefit to the community of $26.1 million or a return of $572 million over 30 years,” said Mayor James Thompson. “The venue has the potential of attracting more than 260,000 paid attendees in year one, growing to more than 300,000 by year five.”

Based on voters’ approval of the financing tools in 2008 and the City’s goal to create a financially feasible, operationally self-sustaining facility, the indoor performance venue will be funded through a unique package of special funding sources.

The City’s partner, ACE, made a $10-million equity contribution to the project. A portion of sales tax revenues that may only be used for economic development purposes and a portion of hotel occupancy tax funds that are restricted to tourism initiatives will be dedicated to the project. In addition, substantial rent revenues generated by the facility and paid by ACE will also fund the performance venue. No general fund tax dollars will be spent on the project.

Sugar Land Approves New Performance Venue