Title
Discuss and consider action regarding appropriation of City Hotel Occupancy Tax Funds (HOT) for special events.
Summary
The proposed program for the appropriation of Hotel Occupancy Tax (HOT) funds provides:
• A Special Events HOT Fund Tourism Application for events and programs.
• A timeline for review by the Special Events Committee.
• A process to take a consolidated recommendation for HOT funding to the City Council annually.
These HOT funds are specifically allocated to increase tourism and encourage overnight hotel stays in Pflugerville.
Under Texas law, local Hotel Occupancy Tax (HOT) revenue can only be used to directly promote tourism and the convention and hotel industry. This means that the proceeds must be spent on projects or events that directly result in visitors staying overnight in Pflugerville. A "Heads in Beds" requirement. Therefore, HOT revenue must directly promote tourism and the convention and hotel industry.
The City used a Special Events HOT Fund Tourism Grant Application for a recent request from the Para Endurance Adaptive Triathlon taking place April 18-21 in Pflugerville. It is the first USAT sanctioned Para Triathlon ever held. Upon review of the application, the Special Events Committee recommended sponsorship of the Triathlon. Since then, the requestor indicated a City sponsorship of $20,000 is needed for the event to occur, plus an in-kind donation of $7000, representing the cost of city services. Based on the potential economic impact and using calculations based on the General Services Admission (GSA) rate, the City anticipates an economic impact between $44,464 and $103,637 over four days.
Deadline for City Council Action
Action is requested February 13, 2024.
Funding Expected: Revenue __ Expenditure _X_ N/A __
Budgeted Item: Yes __ No __ N/A __
Amount: ________
1295 Form Required? Yes __ No __
Legal Review Required: N/A __ Required __ Date Completed: ___________
Supporting documents attached:
HOT scholarship and application policy
Para-Olympic sponsorship application request
Recommended Action:
Staff recommend using the Special Events HOT Fund Tourism Application annual process.
If HOT funds are used for the Para Endurance Adaptive Triathlon, staff recommends the following conditions: the event must be named Pflugerville and any proceeds go back into the event for seed money for a second year in Pflugerville.