HomeMy WebLinkAboutC2022-094 - 4/26/2022 - Approved HOTEL OCCUPANCY TAX REVENUE
RECIPIENT AGREEMENT
SOUTH TEXAS INSTITUTE FOR THE ARTS
This Hotel Occupancy Tax Revenue Recipient Agreement ("Agreement") is made by and
between the City of Corpus Christi, a Texas home-rule municipal corporation ("City"), acting through
its duly authorized City Manager or his designee ("City Manager"), and South Texas Institute for the
Arts, Inc. ("Recipient"), a Texas non-profit corporation, qualified as a 501(c)(3)organization under 26
U.S.C. Section 501(c)(3).
Whereas, City desires to encourage and fund activities that promote the arts and in doing so
serve to promote tourism and the convention and hotel industry within the City of Corpus Christi, in
accordance with Chapter 351 of the Texas Tax Code; and
Whereas, Recipient desires to provide those activities that promote the arts, and in doing so
serve to promote tourism and the convention and hotel industry within the City of Corpus Christi;
Now, therefore, City and Recipient agree as follows:
I. Purpose. The City desires to expend funds from the City's Hotel Occupancy Tax Revenue to fund
activities produced by non-profit, community-oriented organizations, specifically those programs that
promote the arts and in doing so also promote tourism and the convention and hotel industry within
the City of Corpus Christi.
II. Term. This Agreement commences on October 1, 2021, and terminates on September 30, 2022.
III. City's Duties. City agrees to pay Recipient $350,000.00, on a reimbursement basis, out of FY
2021-2022 revenue from the City's Hotel Occupancy Tax fund for use in accordance with Section IV
below (the "Grant Funds"). In no event will the City be liable for an amount in excess of this Grant
Funds amount.
IV. Recipient's Duties; Eligible Activities. Use of Grant Funds by Recipient is limited to those
activities that, without exception, meet all three of the following requirements, herein referred to as
the "activities":
CA)the activities are described in the attached and incorporated Exhibit"A";
(B) the activities are in the categories of art that are eligible for funding as described in
Sections 351.101(a)(3)and (4)and Section 351.101(b)of the Texas Tax Code, copy attached
as Exhibit "B"; and
(C) the activities promote both tourism and the convention and hotel industry within the City
of Corpus Christi.
V. Promotion of Tourism and the Convention and Hotel Industry. Recipient must actively
promote tourism to the City and the City's hotel and convention industry as a goal of Recipient's
Activities. This may be accomplished by working to increase the number of out-of-town program
attendees through targeted promotions and by working with the local hotel-motel and condominium
associations.
VI. Completion Report. Recipient must submit to the City's Director of Management and Budget
("Director") a completion report ("Report"), no later than thirty (30) days following the termination of
this Agreement. The Director, or his designee, shall review this Report to verify whether the Grant
Funds provided to Recipient was spent in accordance with the requirements in this Agreement. The
SCANNED
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Report must include the following criteria:
(A) Written assurance to City that all Activities funded by the City served to promote the arts
in the community. This shall be evidenced by providing the City with a written description of
Recipient's marketing or advertising strategy.
(B) For all Activities funded by the City, Recipient must submit to the City a written estimate
of the number of Recipient's Arts program attendees that reside outside the territorial limits of
the City of Corpus Christi. This may be accomplished by the use of a visitor log, by tallying the
number of out-of-town billings or by listing the out-of-town mailing addresses gathered through
the ticket sales process.
(C) An estimate of the total Arts Program attendance.
(D) A statement of Recipient's Arts Program revenues and expenditures.
( E) Number of attendees that reside outside the City limits that attended the events
described on Exhibit A.
VII. Records Retention. Recipient must at all times during the term of this Agreement, and for five
years following the expiration of the Agreement, keep true, accurate, complete, and auditable records.
Recipient agrees to:
(A) at least annually make periodic reports to the City of its expenditures from the Grant
Funds provided under this Agreement; and
(B) make records of these expenditures available for review to the City.
VIII. Disbursement of Funds. Funds are disbursed by City on reimbursement basis. Recipient is
responsible to send written request for reimbursement including supporting documentation to City
Budget Director. Recipient understands and agrees that payment by the City of Grant Funds under this
Agreement is contingent upon Recipient's full compliance with the requirements of this Agreement.
Should Director determine within five years from effective date of this Agreement that Recipient has
failed to comply with the requirements contained in this Agreement, the Agreement is subject to
termination in accordance with Section listed below, and all Grant Funds must be repaid to the City.
IX. Unexpended funds. Upon termination of this Agreement, Recipient must submit all requests for
reimbursement within 30 days from termination.
X. Advertising. Recipient must recognize the City of Corpus Christi as a contributor on all
advertisements and publications regarding Recipient's Arts Program. Recipient must provide Director
with a copy of all Recipient-sponsored advertising and promotion materials regarding its Activities.
XI. Modifications and Waivers. No provision of this Agreement may be altered, changed, modified,
or waived.
XII. Relationship between Parties. Nothing in this Agreement shall constitute a partnership, joint
venture, or principal-agent relationship between the parties.
XIII. Compliance with Laws. Recipient shall observe and obey all applicable laws, ordinances,
regulations and rules of the Federal, State, Country and City governments, in particle Chapter 351 of
the Texas Tax Code. This Agreement is subject to applicable provisions of the City Charter and the
City Code of Ordinances.
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XIV. Non-discrimination. Recipient shall not discriminate nor permit discrimination against any
person or group of persons, as to employment or in the provision of services, activities, and programs.
Discrimination as it pertains to this section includes discrimination on the basis of race, religion,
national origin, sex, disability, or age, or in any other manner that is prohibited by the laws of the
United States or the State of Texas. Director retains the right to take action deemed necessary by
Director to enforce this non-discrimination covenant. Violation of this provision will result in the
immediate termination of this Agreement.
XV. Indemnity. Recipient fully agrees to indemnify and hold harmless the City of
Corpus Christi, its officers, employees, representatives, and agents ("Indemnitees")
against any and all liability, damage, loss, claims, demands, and actions of any nature
due to personal injuries including, but not limited to, workers' compensation and
death claims, or to any property loss or damage of any kind that arises out of or is in
any manner connected with, caused by, either proximately or remotely, wholly or in
part, or claimed to have arisen out of, been connected with, or have been caused by
any act or omission, negligence, or misconduct on the part of Indemnitees or
Recipient, or Recipient's agents, servants, employees, guests, contractors, patrons,
licensees, or invitees participating in or observing Recipient's activities. Recipient
further agrees to indemnify and hold harmless Indemnitees in any situation in which
injury or damage results from a violation by the Indemnitees or Recipient, or
Recipient's agents, servants, employees, guests, contractors, patrons, licensees, or
invitees, of any law, statute, ordinance, or government order of any kind. Further,
Recipient shall indemnify and hold harmless Indemnitees where injury or damage
results or arises out of the exercise, rights, or performance of obligations created by
this Agreement.
These terms of indemnification are effective regardless of whether said injuries or
damages result from the sole negligence, contributory negligence, or concurrent
negligence of Indemnitees. Recipient must, at its own expense, investigate all claims
and demands, attend to their final resolution either by settlement or otherwise, defend
all actions with counsel satisfactory to Indemnitees, and pay all costs and expenses
related to such actions on account of liability, damage, loss, claims, demands, or
actions, including attorney fees.
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XVI. Termination.
(A) The City may terminate this Agreement for any of the following reasons:
(1) The City may immediately terminate the Agreement due to any violation by Recipient
of section XIII or XIV of this Agreement.
(2) The City may terminate the Agreement upon 14 days' advance written notice,
specifying that the Director has determined that Grant Funds were used for purposes
other than those allowed under Section 351.101(a) of the Tax Code, and require
Recipient to reimburse the City all Grant Funds award.
(3) The City may terminate this Agreement due to Recipient's use of Grant Funds to
pay for activities other than those qualifying as Eligible Activities under section IV of
this Agreement. Director has the sole discretion to make the determination that Grant
Funds were used for activities other than those qualifying as Eligible Activities. The
City may terminate the Agreement upon 14 days' advance written notice and require
Recipient to reimburse the City all Grant Funds awarded.
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(B) Recipient may terminate this Agreement without cause upon thirty(30)days written notice
to City. If Recipient chooses to terminate the Agreement, Recipient must repay all Grant Funds
awarded,whether those funds were expended on Eligible Activities or not.
XVII. Severability. If any term or provision of this Agreement or its application to a person or
circumstance is determined to be illegal, unenforceable or invalid, the remainder of this Agreement
will not be affected by that illegality, unenforceability, or invalidity.To the extent possible, similar legal,
valid, and enforceable terms will automatically be substituted for those that are found to be illegal,
invalid, and unenforceable.
XVIII. Notices. All notices provided for or permitted under this Agreement by either party must be
in writing and must be delivered by one of the following methods: (1) personal delivery or (2) deposit
with the United States Postal Service (USPS) via certified mail, return receipt requested, postage
prepaid. Notice deposited with the USPS in the manner described above will be deemed effective
two business days after deposit with the USPS with proof of mailing. All notices must be made to:
If to City: City of Corpus Christi If to Recipient: South Texas Institute for the Arts
Director, Parks & Recreation Attn: Executive Director
P.O. Box 9277 1901 N. Shoreline
Corpus Christi, TX 78469-9277 Corpus Christi, TX 78401
Either party may change the address to which notice is sent by providing notice as described above.
Recipient must notify City of an address change within 10 days after Recipient's address has
changed.
XIX. Waivers. The failure of either party to complain of any act or omission on the part of the other
party, no matter how long the same may continue, will not be deemed a waiver by said party of any of
its rights as enumerated in this Agreement.
XX. Entirety. This Agreement and all exhibits attached constitute the entire understanding and
agreement between the parties regarding the subject matter described in this Agreement. No other
written documents or oral representations have any force or effect on the subject matter of this
Agreement.
XXI. Captions. The captions contained in this Agreement are not a part of this Agreement and do
not in any way affect or alter the terms of this Agreement.
XXII. Assignment. This Agreement may not be, in whole or in part, assigned or transferred directly
or indirectly by the Recipient without prior written consent of the City Manager.
XXIII. Disclosure of Interests. Recipient agrees to comply with City Ordinance No. 17112 and
complete the Disclosure of Interests form as part of this Agreement. Recipient agrees to comply with
Texas Government Code Section 2252.908 and complete Form 1295 Certificate of Interested Parties
form as part of this Agreement, if applicable. For more information, please review the information on
the Texas Ethics Commission's website at https://www.ethics.state.tx.us. Recipient agrees to comply
with Chapter 176 of the Texas Local Government Code and file Form CIQ with the City Secretary's
Office, if required. For more information and to determine if you need to file a Form CIQ, please review
the information on the City Secretary's website at: http://www.cctexas.com/government/city-
secretary/conflict-disclosure/index.
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This Agreement takes effect upon the date of the last signature.
CITY OF CORPUS CHRISTI ATTEST:
1\ - Tc1 V 4L/V CvV
y,„ Peter Zanoni, City Manager
Date: 5- 2 Y- -2- z Z
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proved as legal form: SI i-1.177- n COUNCIL__ .2
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ssistant City Attorney SECIiETA0v
for the City Attorney
SOUTH TEXAS INSTITUTE FOR THE ARTS, INC.
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Signature
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Date: [ , 6 ry a rte, Z 02-2-
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EXHIBIT A
Description of Recipient's Activities
SOUTH TEXAS INSTITUTE FOR THE ARTS, INC.
dba ART MUSEUM OF SOUTH TEXAS
MISSION AND ORGANIZATION
Mission. The Mission of the South Texas Institute for the Arts (the Institute), doing business as the Art
Museum of South Texas, is to operate educational facilities and an art museum which advance the awareness,
knowledge, appreciation and enjoyment of the visual arts for residents and visitors of South Texas.
To meet its educational mission,the Institute will present a variety of programs which include classes,lectures,
films, and performances and other activities which inspire community interest in the visual arts. These
programs will be offered at the Art Museum of South Texas,the Antonio E. Garcia Arts and Education Center,
and other outreach venues that serve the Institute's mission. In operating an art museum, the Institute will
actively collect, conserve, exhibit, research and interpret outstanding works of visual art with particular
interest in art of the Americas and of the region.
Operating Principles.The Institute shall operate in accordance with the following principles:
Place education in its broadest sense at the center of its public service role;
Seek the highest quality within all program offerings to serve the diverse audiences living in the South Texas
region;
Reflect the diversity of our society by establishing and maintaining a broad constituency of leadership,
patronage and public programming;
Assure the interpretive process manifests a variety in cultural and intellectual perspectives and reflects the
diversity of the Institute's public;
Engage in active, ongoing collaborative efforts with a wide spectrum of the Institute's public dimension;
Maintain diversity among trustees, staff and volunteers to assure a breadth of perspective throughout the
organization; and
Commit leadership and financial resources to maintain annual operating needs.
The Art Museum of South Texas is the only major fine arts museum within 150 mile radius of Corpus Christi.
Founded in 1945,the Art Museum of South Texas moved from South Bluff Park to the Philip Johnson designed
building on the Corpus Christi bay front in 1972. In 1995 the Museum merged with the Creative Arts Center
and the Center for Hispanic Arts, creating the South Texas Institute for the Arts. In 2006 the Legorreta wind
was completed bringing the museum to a total of 60,000 square feet of gallery space, a restaurant, gift shop,
offices, the digital class room and additional storage. Additionally, the Museum provides programs at the
Antonio E.Garcia Arts Education Center on Agnes Street.The Art Museum of South Texas receives over 85,000
visitors annually.The Museum's focus on art education for children and adults as well as making available for
view important and inspirational works of art, makes the Art Museum of South Texas a destination for both
local families and visitors to the South Texas region.
The Permanent Collection is the Institute's most significant asset. The collection is comprised of over 1,500
works of art including painting,sculpture,drawing, photography, printmaking,ceramics,fabric,and fine craft.
IN 1994, the Museum Board revised its mission to place an emphasis on developing a comprehensive
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collection of works by artists associated with the state of Texas and art of the Americas. Museum staff
aggressively seeks art created in the region.
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The Permanent Collection increases by approximately 50 works per year.In 2001,the Collection doubled with
the addition of 900 paintings, prints, drawings, and collages from the estate of recognized Texas artist, the
late Dorothy Hood.
The Art Museum presents 12 to 15 exhibitions per year. The annual exhibit calendar regularly pairs
contemporary presentations with more conventional exhibits of traditional images such as Western and/or
wildlife art.The Museum typically presents art of regional, state, national and international interest, looking
for a balance of artistic media by presenting painting and sculpture, craft, printmaking, and photography,
drawings, and installation art. Other exhibits are co- organized with Texas A&M University— Corpus Christi
faculty,sharing gallery space.
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EXHIBIT B
Texas Tax Code, as amended
§ 351.101. USE OF TAX REVENUE.
a) Revenue from the municipal hotel occupancy tax may be used only to promote tourism and the
convention and hotel industry, and that use is limited to the following:
(1) the acquisition of sites for and the construction, improvement, enlarging, equipping,
repairing, operation, and maintenance of convention center facilities or visitor information
centers, or both;
(2) the furnishing of facilities, personnel, and materials for the registration of convention
delegates or registrants;
(3) advertising and conducting solicitations and promotional programs to attract tourists and
convention delegates or registrants to the municipality or its vicinity;
(4) the encouragement, promotion, improvement, and application of the arts, including
instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design
and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures,
radio, television, tape and sound recording, and other arts related to the presentation,
performance, execution, and exhibition of these major art forms;
(5) historical restoration and preservation projects or activities or advertising and conducting
solicitations and promotional programs to encourage tourists and convention delegates to
visit preserved historic sites or museums:
(A) at or in the immediate vicinity of convention center facilities or visitor information
centers; or
(B) located elsewhere in the municipality or its vicinity that would be frequented by tourists
and convention delegates;
(6) for a municipality located in a county with a population of one million or less, expenses,
including promotion expenses, directly related to a sporting event in which the majority of
participants are tourists who substantially increase economic activity at hotels and motels
• within the municipality or its vicinity; and
* k k * *
(b) Revenue derived from the tax authorized by this chapter shall be expended in a manner directly
enhancing and promoting tourism and the convention and hotel industry as permitted by Subsection
(a). That revenue may not be used for the general revenue purposes or general governmental
operations of a municipality.
(c) The governing body of a municipality by contract may delegate to a person, including another
governmental entity or a private organization, the management or supervision of programs and
activities funded with revenue from the tax authorized by this chapter. The governing body in writing
shall approve in advance the annual budget of the person to which it delegates those functions and
shall require the person to make periodic reports to the governing body at least quarterly listing the
expenditures made by the person with revenue from the tax authorized by this chapter. The person
must maintain revenue provided from the tax authorized by this chapter in a separate account
established for that purpose and may not commingle that revenue with any other money. The
municipality may not delegate to any person the management or supervision of its convention and
visitors'programs and activities funded with revenue from the tax authorized by this chapter other than
by contract as provided by this subsection. The approval by the governing body of the municipality of
the annual budget of the person to whom the governing body delegates those functions creates a
fiduciary duty in the person with respect to the revenue provided by the tax authorized by this chapter.
(d) A person with whom a municipality contracts under this section to conduct an activity authorized
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by this section shall maintain complete and accurate financial records of each expenditure of hotel
occupancy tax revenue made by the person and, on request of the governing body of the municipality
or other person, shall make the records available for inspection and review to the governing body or
other person.
(e) Hotel occupancy tax revenue spent for a purpose authorized by this section may be spent for day-
to-day operations, supplies, salaries, office rental, travel expenses, and other administrative costs
only if those administrative costs are incurred directly in the promotion and servicing expenditures
authorized under Section 351.101(a). If a municipal or other public or private entity that conducts an
activity authorized under this section conducts other activities that are not authorized under this
section,the portion of the total administrative costs of the entity for which hotel occupancy tax revenue
may be used may not exceed the portion of those administrative costs actually incurred in conducting
the authorized activities.
(f) Municipal hotel occupancy tax revenue may not be spent for travel for a person to attend an
event or conduct an activity the primary purpose of which is not directly related to the promotion of
tourism and the convention and hotel industry or the performance of the person's job in an efficient
and professional manner.
(g) Nothing in this section shall prohibit any private entity, person, or organization from making
subgrants by contract to any other person, entity, or private organization for expenditures under
Section 351.101(a)(4). A subgrantee shall:
(1) at least annually make periodic reports to the governing body of its expenditures from
the tax authorized by this chapter; and
(2) make records of these expenditures available for review to the governing body or other
person.
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