HomeMy WebLinkAboutC2023-036 - 3/21/2023 - NA HOTEL OCCUPANCY TAX REVENUE
RECIPIENT AGREEMENT
DUKE IT OUT BOXING
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 Duke It Out Boxing Club
("Recipient"), a Texas nonprofit corporation, whose business address is 10818 Grand Teton, Corpus
Christi, TX 78410.
Whereas, City desires to encourage and fund sporting events 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 produce a sporting event, 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 tourism and the convention and hotel industry within the City of Corpus Christi.
II. Term. This Agreement commences on the date signed by all parties and terminates on September
30, 2023.
III. City's Duties. City agrees to pay Recipient $20,000.00, on a reimbursement basis, out of FY
2023 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":
(A) the activities are described in the attached and incorporated Exhibit"A";
(B) the activities are eligible for funding as described in Sections 351.101(a)(6) 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 were spent in accordance with the requirements in this Agreement. The
Report must include the following criteria:
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(A) Written assurance to City that all Activities funded by the City were eligible under Section
351.101(a)(6) of the Texas Tax Code. 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 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 attendance.
(D) A statement of Recipient's 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 event. Recipient must provide Director with a
copy of all Recipient-sponsored advertising and promotion materials regarding its Activities.
Xl. 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.
XIV. Non-discrimination. Recipient shall not discriminate nor permit discrimination against any
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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.
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' advancewritten 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: Duke It Out Boxing Club
Attn: Elsy Borgstedte Attn: Jose De La Paz
City Manager's Office 1018 Grand Teton Dr
P.O. Box 9277 Corpus Christi, TX 78410
Corpus Christi, TX 78469-9277
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/oovernment/city-
secretary/conflict-disclosure/index.
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This Agreement takes effect upon the date of the last signature.
CITY OF CORP�USS CHRISTI ATTEST:
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Robert Dodd, C__. (tA da----
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Director of Parks and Recreation
Date: 3121/23
pproved as o legal form: 3174123
Assistant City Attorney
for the City Attorney
Duke It Out Boxing Club
Andres J. Luis
President
Date: 3 a0 •)3
Jose De Paz
Vice President/Public Relations Manager
Date: S AO --.
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EXHIBIT A
Description of Recipient's Activities
Event Dates: April 21,2023 to April 23,2023
1/19/2023
2023 Junior Olympics
Duke it Out Boxing Club was established in 2018 with one coach and three boxers in a garage by Andres"Duke" Luis. I
joined Duke It Out at the mid of 2018 as a coach and saw an opportunity to help at risk kids from 8 years of age to young
adults in the community by using the fundamentals of boxing to teach discipline, respect, build confidence and self-
esteem. We also saw an increase in membership due to 60%of the kids that are dealing with or currently being bullied at
school or in their neighborhood. We started the non-profit to ensure our organization would be there in the front lines
of the community helping these kids that needed our program and designed a Mission Statement around our focus:We
want to provide a safe,bully-free environment to keep our future generation off the street and on a path to success by
providing the tools necessary to have a fighting chance at life....one round at a time. As we started our mission,we went
from three coaches and 20 boxers to 40+boxers while increasing our coaching staff to five. Our coaching staff must be
able to pass a background checked and take a safe sport course annually by USA Boxing to certify that all coaches are clear
to be apart of our organization. Our coaching staff are strictly volunteers in our organization while putting in numerous
hours as they also have to balance working full time jobs and spending time with family.
Junior Olympics is Prestigious event that happens annually in our South Texas Region and has returned to Corpus Christi
in 2022 after 30 years of absence at the American Bank Center that covers a big portion of Texas from Austin down to the
RGV from Del Rio across to Victoria Texas. Duke It Out Boxing Club wanted the chance to take on the responsibility of
hosting the event to give Amateur Boxers an awesome experience as they train all year long for an opportunity to Win
Gold and advance to the National Tournament. We wanted to use the American Bank Center for the event as it gives
boxers from 8 years of age to 16 years old an experience to fight in a venue that only Celebrities and Professionals have
had the chance to perform. We also decided to offer admittance to the event at a discounted rate of $10 per seat
compared to the$25 dollar per seat as past years. We offered this discount so that the families of the boxers have an
opportunity to see and cheer on their kids on during the tournament giving them the amazing experience as well.
Our 1"year of hosting the event in 2022 we had a record breaking sign up of 412 registered boxers and over 4,000+
spectators in attendance for the three-day event. In 2023 we are expecting to break another record by having over 500+
boxers register for the event and have over 5,000+spectators in attendance. Our Goal is to give the boxers and spectators
the best experience that Corpus Christi has to offer not only for the event but also future vacation destinations while they
visit which has a huge economic impact on our hotel,restaurant,and shopping districts.
All proceeds will benefit Duke It Out Boxing Club to help us achieve our dream of building a brand-new facility that will
help over 300 kids in our community that they can call their second home for years to come compared to the max capacity
of 45 due to our small facility we are currently in. Please visit our website to learn more about our boxing family at
www dukeitoutboxing.org
Jose De La Paz
VP/Public Relations Manager
361-906-7876
Duke It Out Boxing Club
4528 Baldwin Blvd
Corpus Christi,TX 78408
::cdr;.duke itoutbox,ng.orR
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EXHIBIT A
Event Budget for Junior Olympics 2023
ADMISSIONS
4500 Assigned Seats $13.00 $58,500.00
Total *58.500.00 $0.00
ADS on umbotron
20 Ado ad $200.00 $4.000.00
Total $4.000.00 $0.00
S.onsors
1 1 Mise $2,000 $2,000 $2,000
3 Gold Medal $20,000 $60,000
3 2 Silver Medal $10,000.00 $30,000.00 $20,000.00
5 2 Bronze Medal $5,000.00 $25,000.00 $10,000.00
2 Reg.Table Sign $1,500.00 *3.000.00
1 1 Ticket Master $1,500.00 $1,500.00 $1,500.00
1 1 T-Shirt $2,500.00 *2.500.00 $2.500.00
Total *124.000.00 *36.000.00
SALE OF T-Shirts
300 JO T-Shirt $30.00 *9.000.00 $7200.00
Total *9.000.00 *7.200.00
TOTAL INCOME
17 Room and hall $2.800.00 Food for officials r volunteer S3.200.00
4 Doctors 51,500.00 Drinks 5400.00
Ice Machine Egulpmen 50.00 Cieanlnp supplies+gloves 5200.00
ABC Rental S90.000.00
Total $94,300.00 $0.00 , Total $3,800.00 $0.00 ,
Graphics Work 3500.00 Stabs Bid $8,000.00
Printing Itinerary/topper! 0500.00
Lighting $0.00
OJ $600.00
Radio Ad 37.500.00
Total $3,100.00 $0.00 , Total $8,000.00 $0.00 ,
Graphics work 32,000.00 3000 250 Gold 1150 Siiwer medal, $6,00000
Photocopying/Printing $250.00 10 TrophiesiAwards t1.600 00
t-shirts $3.000.00 Total $7,600.00 $0.00 ,
Total 15250.00 $0.00
TOTAL EXPENSES
PROFIT & LOSS SUMMARY
•Toni,ncor.,e ■Total expenses
Estimated Actual
Total income 5195.500.00 543.200.00 a $43,200.00 34.00
Total expenses 5122.050.00 r 50.00 ,
0
Total profit $73,450.00 543,200.00 a
(or loss) Slgs,s0000 *122,050.00
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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
* * * * *
(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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