Title
Discuss and consider action to approve the format for a Tourism Public Improvement District petition and service plan.
Summary
The City of Pflugerville is working with the Courtyard at Marriott Pflugerville and the Texas Hotel and Lodging Association on the formation of a Tourism Public Improvement District.
City Council's review and approval is requested on the terms of the Pflugerville TPID petition and plan. The Pflugerville Tourism Public Improvement District Service Plan is designed to strengthen and elevate tourism to Pflugerville, the Trail Capital of Texas, by increasing overnight stays and enhancing the overall visitor experience. Through strategic, focused investments directed by a Board of Directors of exclusively of hotel representatives within the District along with a representative from the Pflugerville Convention and Visitors Bureau (Pflugerville CVB), the plan ensures that tourism initiatives reflect the unique character and priorities of the Pflugerville hospitality community. The proposed district will provide dedicated resources for Pflugerville to compete more effectively for leisure travelers, meetings and group events with dedicated resources to grow market share, support local businesses and generate sustained economic impact that benefits the entire Pflugerville community. The proposed PfTPID will supplement the existing use of local hotel tax for sales and marketing initiatives to generate additional business, group, event, and leisure travel to Pflugerville to generate increased lodging activities for the hotels within the District.
The annual assessment rate for all hotel properties within the District shall be two percent (2%) of taxable hotel room night sales. The assessment shall only apply to room-night sales which are subject to local hotel occupancy tax under Texas state law. If a room-night rental transaction is exempt from local hotel occupancy tax, it is also exempt from the application of the PfTPID assessment. Based on current Hotel Occupancy Tax generation, the City anticipates $4.53 million collected by the tax over a 10 year period with approximately $361,000 anticipated in the first year.
After 10 years the PfTPID will dissolve unless it is renewed via a petition signed again by 60% of the existing hotels in the Pflugerville city limits. The PfTPID will include all hotels with more than 70 hotel rooms (which includes all current Pflugerville city limit hotels). Short term rentals are not included in the PfTPID. This item supports the Community Amenities and Events pillar of the Strategic Plan by supporting events and bringing programs to Pflugerville. It supports the Economic and Business Development Pillar by supporting local businesses including hotels, restaurants and entertainment venues which all benefit from increased tourism.
Prior City Council Action
August 18, 2025 City Council Worksession included a presentation regarding Tourism Public Improvement Districts
Deadline for City Council Action
Action is requested May 26, 2026
Funding Expected: Revenue _X_ Expenditure __ N/A __
Budgeted Item: Yes __ No __ N/A _X_
Budget Source: ____NA________
Budgeted Amount: _____NA_______
Amount: __NA______
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A __ Required _X_ Date Completed: __5/15/2026__
Supporting documents attached:
Pflugerville TPID Service Plan
Pflugerville TPID Petition
Recommended Action
Approve the TPID Petition and Plan