PRESENTER: Presenter
Jared Werner, Assistant City Manager
Tanya Pence, President Convention and Visitors Bureau
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SUBJECT: Title
Discuss and possible action approving the petitions received and validated for the potential creation of a Tourism Public Improvement District (TPID) as authorized by Chapter 372 of the Texas Local Government Code and announce the dates and times of the public hearings.
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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 only action requested is approval of the petitions submitted and validated by the City Secretary’s Office (certification attached). Council was notified the public notice was published in the paper and notices were mailed to the hoteliers. The dates and times of the two (2) public hearings for 3/23/2026 will also be announced by City Council.
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:
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STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☒Organizational Excellence ☐Community Well-Being ☐N/A
Objective - Support Confluence, the New Braunfels Chamber of Commerce Economic Development Strategic Plan, by helping to ensure a community that supports targeted industries and increases the diversity of job opportunities in the community.
Objective - Considering statutory and market-based factors, continue to diversify revenue streams to support long-term fiscal sustainability of the organization.
FISCAL IMPACT:
There is no fiscal impact associated with this item.
Recommendation
RECOMMENDATION:
Approval of accepting the petitions submitted and validated by the City Secretary’s Office.