Oktibbeha County, October 23, 2025
News Summary
Oktibbeha County is evaluating a $45 million development project that will convert an old stormwater detention area into a mixed-use complex. Proposed by Desai Companies and York Developments, the project includes a 100-room Home2Suites hotel and a 504-bed student housing facility. A tax increment financing agreement is being sought to support infrastructure improvements. Public hearings are scheduled for early November to discuss the proposal and its potential benefits, including job creation and increased tax revenue for local entities.
Oktibbeha County Proposes $45 Million Development Project
Oktibbeha County is considering a significant new redevelopment project proposed by Desai Companies (Ridgeland) and York Developments (Hattiesburg), which would transform an old stormwater detention area into a $45 million mixed-use complex. The development, located off Highway 12 behind Walk-On’s, will include a 100-room Home2Suites hotel and a 504-bed student housing facility on an approximately 21.6-acre site.
The developers have requested a tax increment financing (TIF) agreement from the city and county for the project, which, if approved, could issue up to $3.35 million in bonds equally split between the city and county. The proposed funds would be dedicated to essential infrastructure improvements, such as constructing a 1,367-foot road to the site and upgrading Pat Station Road.
Under the TIF agreement, developers are tasked with completing construction and starting operations before any bonds are issued. The new property tax revenue generated by the development will be used to repay the bonds over a period of up to 15 years. It is important to note that public funds will only be allocated to infrastructure costs and not to the construction of buildings.
Once completed, the development is poised to increase annual property tax revenue significantly, bringing in $237,473 for the city, $384,572 for the county, and $462,961 for the Starkville-Oktibbeha Consolidated School District. Construction of the project is expected to produce around 75 jobs in the area. Furthermore, once operational, the site is anticipated to generate approximately 33 permanent positions and $4.2 million in annual sales.
Currently, the undeveloped site generates minimal tax revenue, with reported figures of only $1,619 for the city and $2,788 for the county last year. To discuss the TIF proposal, Oktibbeha County supervisors have scheduled a public hearing for November 3, while the Starkville Board of Aldermen will hold their public hearing during a meeting on November 4.
Local leaders, including Mayor Lynn Spruill and Budget Chair Sandra Sistrunk, have expressed support for the project. They emphasize that the old lagoon site provides little value and could potentially harm the community if left undeveloped.
Beyond the initial development, there are plans for additional projects at the site. CEO of Desai Companies, Sunny Desai, has signaled intentions to build a second hotel if the first is successful. Construction of the hotel is projected to commence in the first quarter of 2026, with the construction process typically taking around 18 months. However, no completion timeline has been provided for the student housing facility.
Donnie Hendrix, Director of Construction at York Developments, indicates that the potential for further developments on the site is contingent upon securing necessary infrastructure support from both the city and county.
Key Features of the Proposed Development
| Feature | Details |
|---|---|
| Total Investment | $45 million |
| Hotel Type | 100-room Home2Suites |
| Student Housing | 504-bed facility |
| Site Size | 21.6 acres |
| Job Creation (Construction) | Approximately 75 jobs |
| Job Creation (Permanent) | Approximately 33 positions |
| Estimated Annual Sales | $4.2 million |
| Public Hearing Dates | November 3 for County, November 4 for Starkville |
FAQ
What is the total investment amount for the proposed development project?
The total investment amount for the proposed development project is $45 million.
What types of facilities are included in the development?
The development includes a 100-room Home2Suites hotel and a 504-bed student housing facility.
Where is the site of the proposed project located?
The site is located off Highway 12 and Pat Station Road, behind Walk-On’s and La Quinta Inn.
What is the purpose of the tax increment financing (TIF) agreement?
The TIF agreement would issue up to $3.35 million in bonds for infrastructure improvements to support the project.
When are the public hearings for the TIF proposal scheduled?
The public hearing for Oktibbeha County is set for November 3 and the Starkville Board of Aldermen will hold their hearing on November 4.
Deeper Dive: News & Info About This Topic
HERE Resources
Starkville-Oktibbeha School District Maintains A Rating
Mississippi State University Partners with SOCSD for New High School
Starkville High School Plans Exclude MSMS
Starkville Workshop Equips Parents with Essential First Aid Skills
Starkville Crowned Best Small Town in the South
Golden Triangle Development LINK Seeks New Leadership
Baptist Memorial Health Care Acquires OCH Regional Medical Center
Starkville School District Seeks Quotes for Services
New Turf Installation Enhances Starkville High School Facilities
Sudduth Elementary School Unveils New Courtyard Space
Additional Resources
- Oktibbeha County Proposes $45 Million Development Project
- Wikipedia: Tax Increment Financing
- MSU Rents Two Starkville Hotels to Quarantine Students
- Google Search: Starkville hotel COVID-19
- Damage to Ruby Hall Likely to Close Dorm for Spring
- Encyclopedia Britannica: Student Housing
- Two MSU Greek Houses See COVID-19 Outbreaks
- Google News: MSU COVID-19 outbreak
- Body Found in Starkville
- Google Scholar: Starkville news
Author: STAFF HERE STARKVILLE WRITER
The STARKVILLE STAFF WRITER represents the experienced team at HEREstarkville.com, your go-to source for actionable local news and information in Starkville, Oktibbeha County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Cotton District Arts Festival, Bulldog Bash, and Mississippi State University homecoming celebrations. Our coverage extends to key organizations like the Starkville Area Chamber of Commerce and the Mississippi State University Extension Service, plus leading businesses in education and agriculture that power the local economy such as Mississippi State University and Starkville Manufacturing. As part of the broader HERE network, we provide comprehensive, credible insights into Mississippi's dynamic landscape.
