PRESENTER: Presenter
Jared Werner, Assistant City Manager
Tanya Pence, President Convention and Visitors Bureau
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SUBJECT: Title
Public hearing and approval of a resolution to authorize the creation of a Tourism Public Improvement District (TPID).
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DEPARTMENT: N/A
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COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND INFORMATION:
A Tourism Public Improvement District (TPID) is a state-authorized tool designed to enhance and promote tourism, hotel activity, and year-round visitation within a defined geographic area. Its primary purpose is to generate dedicated funding for expanded marketing and promotional initiatives that support a stronger and more resilient tourism economy. Ten Texas cities, including Waco, Corpus Christi, Frisco, Denton, and Addison currently operate TPIDs.
For New Braunfels, creation of a TPID directly aligns with the City’s Strategic Plan, particularly the Economic Mobility and Organizational Excellence strategic priorities. Several local factors further support consideration of a TPID:
• Hotel Occupancy Taxes have relatively stagnated since FY 2022.
• In-progress redevelopment and mixed used centers in the downtown area are expected to increase year-round tourism demand.
• There is a strong relationship between the performance of the tourism economy and sales tax collections. A portion of sales tax revenue is tied directly to property tax relief.
• Advertising and promotion costs have increased significantly since COVID; additional resources would allow for an expanded campaign and broader reach.
A TPID would provide the resources needed to expand marketing into additional regions and
during more months of the year. The proposed assessment is 2% of the room rate, with an expected average annual revenue of $1.2 million. Eligible lodging properties include those within the city limits with five or more rooms unless they derive a majority of revenue from admission tickets.
Under the proposed service plan:
• 85% of funding must support marketing, attracting groups, and sales activities.
• 10% is allocated to research and administration.
• 5% is reserved for contingencies.
Council Consideration This Evening:
The action requested this evening is the approval of a resolution to create a Tourism Public Improvement District (TPID).
Proposed TPID Timeline:
• November: City Council considered format and content of the proposed petition and service plan.
• Dec-Jan: Chamber of Commerce gathered petition signatures.
• March: Petition validated; Council orders and holds public hearings March 23.
• April: Council considers final approval to create the TPID
• July 1st: TPID assessments begin.
Administration
The TPID assessment would be collected using the same process currently in place for local hotel tax collections. A TPID board, comprised of lodging representatives, would oversee expenditures, with non-voting representatives from the City and the Chamber/CVB. City Council must review and approve the service plan annually throughout the 10-year authorization period.
Note: This topic was previously presented to City Council for discussion at the June 30 workshop, the November 17 presentation meeting and the February 2 workshop.
ISSUE:
N/A
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☒Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
There is no fiscal impact associated with this item.
Recommendation
RECOMMENDATION:
Approval of accepting the resolution.