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HomeMy WebLinkAbout034030 ORD - 10/13/2026 Ordinance approving the service plans, assessment plans and updated assessment rolls for the Corpus Christi Tourism Public Improvement District ("TPID") as required under Texas Local Government Code Chapter 372; maintaining the existing assessment rate of 2.0% on taxable room revenue generated by hotels with 40 or more rooms within the district; and allocating the assessment rate collections into a special fund for marketing and promotion efforts directly related to hotels within Corpus Christi (TPID collection is not a city fund). WHEREAS, the Public Improvement District Assessment Act, Chapter 372, as amended, Texas Local Government Code (the Act) authorizes the creation of public improvement districts and the levy of assessments against property within the district to pay the costs of public improvement projects that confer a special benefit on property within such district; WHEREAS, on June 28, 2022, the Corpus Christi Tourism Public Improvement District ("TPID") was created; WHEREAS, the City Council finds that the Service Plans, Assessment Plans, and updated Assessment Rolls for Fiscal Years 2023 through 2027 were implemented and administered in accordance with Chapter 372 of the Texas Local Government Code; WHEREAS, a copy of the notice form required by Section 5.014 of the Texas Property Code is attached as an Exhibit to the service plans as required by Texas Local Government Code Section 372.013; WHEREAS, as per Texas Local Government Code Section 372.013 (e), not later than the seventh day after the date the governing body updates the service plan, including the notice form required by Section 5.014, Property Code, the municipality shall file a copy of the updated plan with the county clerk in which all or part of the public improvement district is located, attached as Exhibit C; WHEREAS, as per Texas Local Government Code Section 372.013 (f), not later than the seventh day after the date the governing body approves and updates a service plan, the municipality shall post a copy of the service plan, including a copy of the notice form required by Section 5.014, Property Code, on the Internet website maintained or used by the City for the purposes of Section 26.18. Tax Code; WHEREAS, the assessment plans are attached and included in the annual service plans as required by Texas Local Government Code Section 372.014; and WHEREAS, as per Texas Local Government Code Section 372.016 (b), the publication notice of the City's intention to consider the proposed assessments at a public hearing on September 15, 2026, was published in a newspaper of general circulation in the City before the 10th day before the date of the hearing. 03 4 0 3 0 SCANNED NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL FOR THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The City Council finds that the statements set forth in the recitals of this Ordinance are true and correct, and the Council incorporates such recitals as a part of this Ordinance. SECTION 2. The Service Plans for the TPID for fiscal years 2023, 2024, 2025, 2026, and 2027, as attached hereto in Exhibit A, are approved. SECTION 3. The Assessment Rolls for fiscal years 2023, 2024. 2025, 2026, and 2027, attached in Exhibit B are accepted and approved for the Corpus Christi TPID, as required by Section 372.016 of the Act. SECTION 4. That TPID revenues for fiscal years 2023, 2024, 2025, 2026, and 2027, as attached hereto in Exhibit B, are appropriated into the Corpus Christi TPID Fund for use in accordance with the Service Plan. SECTION 5. That the existing assessment rate of 2.0% on taxable room revenue generated by hotels with 40 or more rooms within the district is approved for the TPID. SECTION 6. If any provision of this Ordinance or the application of any provision to any person or circumstance is held invalid. the invalidity shall not affect other provisions or applications of the Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. SECTION 7. The City Secretary is directed to give notice of the authorization of the TPID Service Plans by recording this Ordinance in the Official Public Records of Nueces County, Texas on or before the seventh day after the final passage of this Ordinance. SECTION 8. This Ordinance shall take effect immediately from and after its passage and in accordance with the provisions of the Act, and it is accordingly so ordained. Introduced and voted on the I Illday of c r11\W , 2026. PASSED and APPROVED on the I3 day of © \-C , 2026. ATTEST: (T2tV,/(..„ CLCC-L Paulette Guajardo, Mayor ( Rebecca Huerta, Cit Secretar 034030 Exhibit A TPID Service Plans FYs 2023, 2024, 2025, 2026 & 2027 Corpus Christi Tourism Public Improvement District (CCTPID) FY 23 Service Plan The proposed Corpus Christi Tourism Public Improvement District (CCTPID) would supplement the existing sales and marketing budget in order to generate increased leisure, business, and large group business to Corpus Christi hotels and short-term rentals.The Service Plan is formulated to positively impact this visitation to Corpus Christi overnight accommodations through strategic expenditures that must be approved and are overseen by a Board of Directors for the Tourism District. The voting members of this TPID Board of Directors is solely composed of a proportionately representative group of hoteliers and short-term rentals from within the city. The proposed Tourism Public Improvement District is designed to ensure that the Corpus Christi Convention and Visitors Bureau is able to successfully compete with Texas cities and other cities across the country for an increased market share of leisure,event, and group travel. ANNUAL INDEBTEDNESS No bonded indebtedness.The improvements/expenditures of the CCTPID will not be debt-funded.Annual expenditures will be funded with the annual assessments as described below. PROJECTED EXPENDITURES The CCTPID budget would be allocated as shown in the table below. SERVICE PLAN % $ Marketing 50% $18,894,892 Sales 43% $16,249,607 Research and Administration 5% $1,889,489 Contingency Funds 2% $755,796 TOTAL 100% $37,789,784 The estimated budget for the TPID for the ten-year term of the District(2021-2031) is shown in the table below. The estimated budget is forecasted to increase by three percent(3%) per year. Expenditures of the TPID are limited to actual collections,which cannot exceed the 2%assessment on each taxable room night sale by Corpus Christi hotels with 40 or more rooms,as defined in the TPID petition.The TPID will follow established statutory procedures for the addition of newly built eligible hotels into the Corpus Christi TPID. If actual TPID receipts exceed service plan estimates or if actual TPID receipts exceed actual TPID expenditures within a service plan category, any surplus TPID revenues will be reserved by the TPID for use in the subsequent year of the service plan according to the established Service Plan allocations. 10-Year Service Plan Category Percentages and Amounts 2022-2023 Year Marketing Sales Research and Contingency Total 50% 43% Administration Funds 5% 2°.0 100% 2021- $ 98,863 $ 85,022 S 9,886 S 3,955 S 197,726 2022 2022- $ 1,440,688 S 1,238,991 $ 144,069 S 57,627 S 2,881,375 2023 2023- 5 1,608,295 $ 1,383,134 $ 160,830 $ 64,331 S 3,216,590 2024 2024- $ 1,681,095 $ 1,445,742 $ 168,110 S 67,243 S 3,362,190 2025 2025- $ 1,756,807 $ 1,510,854 $ 175,681 $ 70,272 S 3,513,614 2026 2026- $ 1,835,548 $ 1,578,571 S 183.555 $ 73,421 $ 3,671,095 2027 2027 $ 1,917,438 $ 1,648,996 S 191.744 $ 76,697 $ 3,834,875 2028 2028 $ 2,002,604 $ 1,722,239 $ 200,260 $ 80,104 $ 4,005,207 2029 2029- S 2,091,176 $ 1,798,411 $ 209,118 $ 83,646 $ 4,182,351 2030 2030- $ 2,183,291 $ 1,877,630 $ 218,329 $ 87,332 $ 4,366,582 2031 2031- $ 2,279,091 $ 1,960,017 $ 227,909 $ 91,162 $ 4,558,179 2032 Total $ 18,894,896 S 16,249,607 $ 1,889,491 S 755,790 S 37,789,784 PROJECTED CORPUS CHRISTI TOURISM PUBLIC IMPROVEMENT DISTRICT SERVICES Marketing (Advertising and Promotion) Initiatives Fifty percent(50%)of the annual TPID budget will be allocated to increased marketing initiatives to drive more hotel activity to Corpus Christi.All advertising and promotion initiatives will be designed to increase awareness and travel within the leisure market for segments of the market that are not currently being reached by Visit Corpus Christi, out of state, and international markets. Such initiatives may include but are not limited to: Programs to increase demand through: Marketing&PR Campaigns Current hotel occupancy tax fund levels do not allow Visit Corpus Christi the ability to conduct the level of campaigns noted below. Existing VCC brand campaigns would utilize TP/0 funds to better reach the below noted and other essential markets. VCC would have the ability to expand the reach of these campaigns to areas there were not within our prior budget capacity, but for which data suggests a strong ROI for such marketing initiatives. Central North Texas Campaign Historically VCC has focused on marketing in the San Antonio,Houston and RGV areas.VCC has not had sufficient funding to effectively promote Corpus Christi in the other key potential target markets of Austin and the DFW Metroplex. Competing cities such as Galveston and Florida beach destinations are heavily promoting their areas in these markets. Existing creative on Corpus Christi can be used to expand VCC's reach into these additional and other areas. Border States/Central US Campaign Heavy research by the VCC marketing team and ad agency also shows considerable opportunities for VCC to market to key border state cities and to select other locales that would be especially interested in Corpus Christi due it being the closest beach to their area. This initiative could be realized through a targeted campaign focused on New Orleans, Lake Charles, Little Rock, Kansas City, Oklahoma City, Tulsa, Wichita,Denver,Albuquerque,and Santa Fe. Mexico/International Campaign Corpus Christi's proximity to Mexico warrants advertising along the Mexican side of the RGV as well as within Sister City Monterrey. Data proves San Antonio and South Padre are currently capitalizing on this growing population which has the income to travel. The TPID provides an opportunity for VCC to also effectively compete for this segment. Air Service Promotion Campaigns VCC and CCIA leadership continue to focus on following the data and using it for potential expansion of air access from and to Corpus Christi for key new target markets.The ability to promote visitation by those . markets and the ease in reaching such markets through our airports is crucial to the long-term success of those routes. Creative Operations Experience Development/Visitor Servicing A key strategy for VCC to further separate Corpus Christi from its competition is experience development and servicing. With the TPID, a heightened focus can be put on developing enhanced programs and experiences that yield heightened visitor perceptions of Corpus Christi as a destination. Current hotel occupancy tax fund levels have allowed us to develop a new visitor center,but they have only enabled basic beach service operations, and limited promotions of all the area beaches, the airport and convention services. To ensure a strong ROI on these expenditures, visitor surveying can be used to ensure we are giving visitors what they desire. Creative Staffing and Operations The expansion of our campaigns will likely require additional staff or contract services,or a combination of both. Current hotel occupancy tax fund levels have allowed us to have a marketing team of four individuals. The combination of hotel tax and TPID funds would allow a $4 million annual marketing budget that will likely require limited additional staffing that will be presented to the TPID Board for their consideration and approval. Sales (Conventions, Meetings, Sports) Initiatives Forty-three percent(43%) of the annual TPID budget will be allocated to increased Sales initiatives. All sales initiatives are designed to increase state, regional, and national awareness of Corpus Christi as a meetings,conventions,and sports destination and foster subsequent bookings in district hotels.Such efforts will include but would not be limited to: Programs to increase demand through: Group Sales Corpus Christi Sports Commission I Corpus Christi has a competitive advantage in that it offers something many other cities cannot-- water. The opportunity for Corpus Christi to leverage our natural assets to secure competitive water and land sporting events will drive a new segment of visitors and visitor spending. Youth Sports is a $1 billion industry that Corpus Christi is also not currently involved in. An organized Youth Sports initiative would drive substantial additional rooms nights within this important market segment. Current hotel occupancy tax fund levels have not allowed us to initiate this much needed program. Sales Staffing Current hotel occupancy tax fund levels have allowed us to create a sales team of two plus a coordinator. To grow our group sales operations,VCC cannot continue to have a sales team of only two staff members. The addition of a TPID would allow us to propose an expansion of our sales focus serving key segments with a diverse strategy of prospecting and selling. Corpus Christi Film&Music Commission A growing responsibility of DMOs is the ability to sell their community as a film location. In addition, cities like Austin,Nashville and Tulsa have each proven that a rich and unique music vibe is just what a growing trend of travelers are seeking who want authentic cultural experiences.The Corpus Christi Film& Music Commission, in partnership with VCC, will actively seek out opportunities in the film and music industries to bring business,room nights,and exposure to Corpus Christi.Current hotel occupancy tax fund levels have not allowed us to access sufficient funding for this much needed program. Sales Servicing With an additional influx of prospective clients and actualized business from different group segments, sports,film and music, additional staff servicing will likely also be required. Current hotel occupancy tax fund levels have allowed us to service the existing framework for serving our clients, but we will need to expand those services with focuses on additional anticipated sports business, national sales, and leisure sales. The TPID Board will work closely with VCC on what augmented staffing pattern would produce the greatest ROI. Group Sales Promotion Texas-wide Meetings Marketing Campaign As VCC continues to work with the American Bank Center and the city on development of the SEA District Complex,as well as an increased sales staff presence,it will be essential that there be an enhanced statewide marketing campaign targeting both corporate and association group business. For example, the unique downtown district coupled with the natural environment that is part of Corpus Christi's unique appeal, allows VCC to market to the meetings industry that Corpus Christi is a location to host and enjoy at the same time.Current hotel occupancy tax fund levels have not been sufficient to initiate this enhancement of our marketing program. Tradeshows/Sales Missions A focus on new market segments means involvement in new tradeshows and site visits.To ensure success, VCC must increase its involvement with key associations and organizations. Current hotel occupancy tax fund levels have focused on trade and government association business,but we have not been able to attend other events in a cost-effective basis that would get us in front of multiple industry segments through entities such as CVENT,HelmsBriscoe,Northstar,and others. National Industry Organizations The ability to develop partnerships with the largest meeting planner groups within organizations such as CVENT, HelmsBriscoe,Northstar and US Travel Association is critical to the future success of Corpus Christi growing its group room nights. Current hotel occupancy tax fund levels have focused on state association outreach, but we have not been able to afford the marketing that was needed to significantly expand that reach.The TPID funding will help bridge this gap. Events Bid Fund The limited ability to use Corpus Christi's Conference Events Fund(CEF) as incentives for large groups critically limits VCC's ability to incentivize groups that are not being housed at the American Bank Center. A separate TPID bid incentive fund will allow VCC to incentivize additional groups that show a strong potential ROI, including groups that are housed in individual hotels, as well as sporting groups and film crews that would increasingly choose Corpus Christi if we could more effectively compete for their business with reasonable sales incentives. Research and Administration Initiatives Five percent (5%) of the annual TPID budget would be allocated to administration of the TPID and for increased visitor research initiatives that analyze the impact of TPID marketing and sales initiatives in driving more hotel activity,tourism and positive visitor impressions for Corpus Christi.Research costs may include,but would not be limited to the following: Research Growing our tourism and hotel activity reach will require a continued dedication to research and prospecting programs to ensure a strong ROI from the sales and marketing initiatives undertaken by the TPID.Current hotel occupancy tax fund levels have allowed us to conduct research with minimal GPS data as well as basic prospecting programs. With the TPID funding, we will be able to utilize higher level and more accurate and strategic ROI research programs as well as additional industry leading sales prospecting tools. Administrative Costs The collection of tourism PIO fees will produce certain costs to the City and to the TPID that the TPID will have to reimburse. The TPID will need to cover limited additional costs to VCC for legal counsel, administration of the district, and supplemental finance and accounting help that will be needed to administer the TPID funds.Current hotel occupancy tax fund levels have allowed us to have one individual in our VCC finance department,but we anticipate needing to contract for certain services and to increase that staffing oversight upon consideration and approval by the TPID Board. Contingency Funds Two Percent (2%) of the annual TPID budget will be allocated to TPID contingency funds to allow consistent operation of the TPID Service Plan during unexpected economic challenges and to be ready to address unanticipated new opportunities within each budget category. IN ACCORDNANCE WITH TEXAS PROPERTY CODE§5.014,THE NOTICE ON THE NEXT PAGE MUST BE PROVIDED TO ANY PURCHASER OF PROPERTY SUBJECT TO ASSESSMENT BY THE CCTPID AT THE TIME OF SALE. NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO CITY OF CORPUS CHRISTI TEXAS CONCERNING THIE FOLLOWING HOTEL PROPERTY (insert property address) As the purchaser of the real property described above,you are obligated to pay assessments to the City of Corpus Christi, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Services")undertaken for the benefit of the property within the Corpus Christi Tourism Public Improvement District(the"District")created under Subchapter A,Chapter 372,Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED SERVICES,WHICH MUST BE PAID IN FULL WITH EVERY PAYMENT BY THE HOTEL OF LOCAL HOTEL OCCUPANCY TAX REMITTANCES TO THE MUNICIPALITY. YOUR FAILURE TO PAY THE ASSESSMENT MAY RESULT IN PENALTIES AND INTEREST BEING ADDED TO WHAT YOU OWE, AND MAY INCLUDE THE PURSUIT OF ANY OTHER REMEDY THAT IS AUTHORIZED UNDER 372.0035(d), LOCAL GOVERNMENT CODE. Information about the calculation of the assessment may be obtained from the City of Corpus Christi. The exact assessment rate will be approved each year by the Corpus Christi City Council in the annual service plan update for the district.More information about the assessments,including the assessment rate and due dates,may be obtained from the City of Corpus Christi. The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. Date: Signature of Purchaser Corpus Christi Tourism Public Improvement District (CCTPID) FY 24 Service Plan The proposed Corpus Christi Tourism Public Improvement District (CCTPID) would supplement the existing sales and marketing budget in order to generate increased leisure, business, and large group business to Corpus Christi hotels and short-term rentals.The Service Plan is formulated to positively impact this visitation to Corpus Christi overnight accommodations through strategic expenditures that must be approved and are overseen by a Board of Directors for the Tourism District. The voting members of this TPID Board of Directors is solely composed of a proportionately representative group of hoteliers and short-term rentals from within the city. The proposed Tourism Public Improvement District is designed to ensure that the Corpus Christi Convention and Visitors Bureau is able to successfully compete with Texas cities and other cities across the country for an increased market share of leisure,event,and group travel. ANNUAL INDEBTEDNESS No bonded indebtedness.The improvements/expenditures of the CCTPID will not be debt-funded.Annual expenditures will be funded with the annual assessments as described below. PROJECTED EXPENDITURES The CCTPID budget would be allocated as shown in the table below. SERVICE PLAN % $ Marketing 50% $18,894,892 Sales 43% $16,249,607 Research and Administration 5% $1,889,489 Contingency Funds 2% $755,796 TOTAL 100% $37,789,784 The estimated budget for the TPID for the ten-year term of the District(2021-2031) is shown in the table below. The estimated budget is forecasted to increase by three percent(3%) per year. Expenditures of the TPID are limited to actual collections,which cannot exceed the 2%assessment on each taxable room night sale by Corpus Christi hotels with 40 or more rooms,as defined in the TPID petition.The TPID will follow established statutory procedures for the addition of newly built eligible hotels into the Corpus Christi TPID. If actual TPID receipts exceed service plan estimates or if actual TPID receipts exceed actual TPID expenditures within a service plan category, any surplus TPID revenues will be reserved by the TPID for use in the subsequent year of the service plan according to the established Service Plan allocations. 10-Year Service Plan Category Percentages and Amounts 2023-2024 Year Marketing Sales Research and Contingency Total 50% 43% Administration Funds 5% 2" 100% 2021 S 98,863 $ 85,022 $ 9,886 $ 3,955 $ 197,726 2022 2022 $ 1,440,688 $ 1,238,991 $ 144,069 $ 57,627 $ 2,881,375 2023 2023- $ 1,297,239 $ 1,115,626 $ 129,724 $ 51,889 $ 2,594,478 2024 2024- S 1,732,477 $ 1,489.930 $ 173,248 $ 69,299 $ 3,464,954 2025 2025- $ 1,808,184 $ 1,555,038 $ 180,818 5 72,328 $ 3,616,368 2026 2026- $ 1,886,929 $ 1,622,759 S 188,693 S 75,478 $ 3,773,859 2027 2027 $ 1,968,819 $ 1,693,185 $ 196,882 $ 78,753 $ 3,937,639 2028 2028 $ 2,053,985 $ 1,766,427 $ 205,399 $ 82,160 $ 4,107,971 2029 2029- $ 2,142,557 $ 1,842,599 S 214,256 $ 85,703 S 4,285,115 2030 2030- $ 2,234,673 $ 1,921,819 $ 223,467 $ 89,387 $ 4,469,346 2031 2031- $ 2,230,477 $ 1,918,211 $ 223,048 $ 89,217 S 4.460,953 2032 Total $ 18,894,891 $ 16,249,607 $ 1,889,490 $ 755,796 S 37,789,784 PROJECTED CORPUS CHRISTI TOURISM PUBLIC IMPROVEMENT DISTRICT SERVICES Marketing (Advertising and Promotion) Initiatives Fifty percent(50%)of the annual TPID budget will be allocated to increased marketing initiatives to drive more hotel activity to Corpus Christi.All advertising and promotion initiatives will be designed to increase awareness and travel within the leisure market for segments of the market that are not currently being reached by Visit Corpus Christi, out of state, and international markets. Such initiatives may include but are not limited to: Programs to increase demand through: Marketing&PR Campaigns Current hotel occupancy tax fund levels do not allow Visit Corpus Christi the ability to conduct the level of campaigns noted below. Existing VCC brand campaigns would utilize TP/0 funds to better reach the below noted and other essential markets. VCC would have the ability to expand the reach of these campaigns to areas there were not within our prior budget capacity, but for which data suggests a strong ROI for such marketing initiatives. Central North Texas Campaign Historically VCC has focused on marketing in the San Antonio,Houston and RGV areas.VCC has not had sufficient funding to effectively promote Corpus Christi in the other key potential target markets of Austin and the DFW Metroplex. Competing cities such as Galveston and Florida beach destinations are heavily promoting their areas in these markets. Existing creative on Corpus Christi can be used to expand VCC's reach into these additional and other areas. Border States/Central US Campaign Heavy research by the VCC marketing team and ad agency also shows considerable opportunities for VCC to market to key border state cities and to select other locales that would be especially interested in Corpus Christi due it being the closest beach to their area. This initiative could be realized through a targeted campaign focused on New Orleans, Lake Charles, Little Rock, Kansas City, Oklahoma City, Tulsa, Wichita,Denver,Albuquerque,and Santa Fe. Mexico/International Campaign Corpus Christi's proximity to Mexico warrants advertising along the Mexican side of the RGV as well as within Sister City Monterrey. Data proves San Antonio and South Padre are currently capitalizing on this growing population which has the income to travel. The TPID provides an opportunity for VCC to also effectively compete for this segment. Air Service Promotion Campaigns VCC and CCIA leadership continue to focus on following the data and using it for potential expansion of air access from and to Corpus Christi for key new target markets.The ability to promote visitation by those markets and the ease in reaching such markets through our airports is crucial to the long-term success of those routes. Creative Operations Experience Development/Visitor Servicing A key strategy for VCC to further separate Corpus Christi from its competition is experience development and servicing. With the TPID, a heightened focus can be put on developing enhanced programs and experiences that yield heightened visitor perceptions of Corpus Christi as a destination. Current hotel occupancy tax fund levels have allowed us to develop a new visitor center,but they have only enabled basic beach service operations, and limited promotions of all the area beaches, the airport and convention services. To ensure a strong ROI on these expenditures, visitor surveying can be used to ensure we are giving visitors what they desire. Creative Staffing and Operations The expansion of our campaigns will likely require additional staff or contract services, or a combination of both. Current hotel occupancy tax fund levels have allowed us to have a marketing team of four individuals. The combination of hotel tax and TPID funds would allow a $4 million annual marketing budget that will likely require limited additional staffing that will be presented to the TPID Board for their consideration and approval. Sales (Conventions, Meetings, Sports) Initiatives Forty-three percent(43%) of the annual TPID budget will be allocated to increased Sales initiatives. All sales initiatives are designed to increase state, regional, and national awareness of Corpus Christi as a meetings,conventions,and sports destination and foster subsequent bookings in district hotels.Such efforts will include but would not be limited to: Programs to increase demand through: Group Sales Corpus Christi Sports Commission Corpus Christi has a competitive advantage in that it offers something many other cities cannot--water. The opportunity for Corpus Christi to leverage our natural assets to secure competitive water and land sporting events will drive a new segment of visitors and visitor spending. Youth Sports is a $1 billion industry that Corpus Christi is also not currently involved in. An organized Youth Sports initiative would drive substantial additional rooms nights within this important market segment. Current hotel occupancy tax fund levels have not allowed us to initiate this much needed program. Sales Staffing Current hotel occupancy tax fund levels have allowed us to create a sales team of two plus a coordinator. To grow our group sales operations,VCC cannot continue to have a sales team of only two staff members. The addition of a TPID would allow us to propose an expansion of our sales focus serving key segments with a diverse strategy of prospecting and selling. Corpus Christi Film&Music Commission A growing responsibility of DMOs is the ability to sell their community as a film location. In addition, cities like Austin,Nashville and Tulsa have each proven that a rich and unique music vibe is just what a growing trend of travelers are seeking who want authentic cultural experiences.The Corpus Christi Film& Music Commission, in partnership with VCC, will actively seek out opportunities in the film and music industries to bring business,room nights,and exposure to Corpus Christi.Current hotel occupancy tax fund levels have not allowed us to access sufficient funding for this much needed program. Sales Servicing With an additional influx of prospective clients and actualized business from different group segments, sports, film and music,additional staff servicing will likely also be required. Current hotel occupancy tax fund levels have allowed us to service the existing framework for serving our clients, but we will need to expand those services with focuses on additional anticipated sports business, national sales, and leisure sales.The TPID Board will work closely with VCC on what augmented staffing pattern would produce the greatest ROI. Group Sales Promotion Texas-wide Meetings Marketing Campaign As VCC continues to work with the American Bank Center and the city on development of the SEA District Complex,as well as an increased sales staff presence,it will be essential that there be an enhanced statewide marketing campaign targeting both corporate and association group business. For example, the unique downtown district coupled with the natural environment that is part of Corpus Christi's unique appeal, allows VCC to market to the meetings industry that Corpus Christi is a location to host and enjoy at the same time.Current hotel occupancy tax fund levels have not been sufficient to initiate this enhancement of our marketing program. Tradeshows/Sales Missions A focus on new market segments means involvement in new tradeshows and site visits.To ensure success, VCC must increase its involvement with key associations and organizations. Current hotel occupancy tax fund levels have focused on trade and government association business,but we have not been able to attend other events in a cost-effective basis that would get us in front of multiple industry segments through entities such as CVENT,HelmsBriscoe,Northstar,and others. National Industry Organizations The ability to develop partnerships with the largest meeting planner groups within organizations such as CVENT, HelmsBriscoe, Northstar and US Travel Association is critical to the future success of Corpus Christi growing its group room nights. Current hotel occupancy tax fund levels have focused on state association outreach, but we have not been able to afford the marketing that was needed to significantly expand that reach.The TPID funding will help bridge this gap. Events Bid Fund The limited ability to use Corpus Christi's Conference Events Fund(CEF) as incentives for large groups critically limits VCC's ability to incentivize groups that are not being housed at the American Bank Center. A separate TPID bid incentive fund will allow VCC to incentivize additional groups that show a strong potential ROI, including groups that are housed in individual hotels, as well as sporting groups and film crews that would increasingly choose Corpus Christi if we could more effectively compete for their business with reasonable sales incentives. Research and Administration Initiatives Five percent (5%) of the annual TPID budget would be allocated to administration of the TPID and for increased visitor research initiatives that analyze the impact of TPID marketing and sales initiatives in driving more hotel activity,tourism and positive visitor impressions for Corpus Christi.Research costs may include,but would not be limited to the following: Research Growing our tourism and hotel activity reach will require a continued dedication to research and prospecting programs to ensure a strong ROI from the sales and marketing initiatives undertaken by the TPID.Current hotel occupancy tax fund levels have allowed us to conduct research with minimal GPS data as well as basic prospecting programs. With the TPID funding, we will be able to utilize higher level and more accurate and strategic ROI research programs as well as additional industry leading sales prospecting tools. Administrative Costs The collection of tourism PIO fees will produce certain costs to the City and to the TPID that the TPID will have to reimburse. The TPID will need to cover limited additional costs to VCC for legal counsel, administration of the district, and supplemental finance and accounting help that will be needed to administer the TPID funds.Current hotel occupancy tax fund levels have allowed us to have one individual in our VCC finance department,but we anticipate needing to contract for certain services and to increase that staffing oversight upon consideration and approval by the TPID Board. Contingency Funds Two Percent (2%) of the annual TPID budget will be allocated to TPID contingency funds to allow consistent operation of the TPID Service Plan during unexpected economic challenges and to be ready to address unanticipated new opportunities within each budget category. IN ACCORDNANCE WITH TEXAS PROPERTY CODE§5.014,THE NOTICE ON THE NEXT PAGE MUST BE PROVIDED TO ANY PURCHASER OF PROPERTY SUBJECT TO ASSESSMENT BY THE CCTPID AT THE TIME OF SALE. NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO CITY OF CORPUS CHRISTI TEXAS CONCERNING THIE FOLLOWING HOTEL PROPERTY (insert property address) As the purchaser of the real property described above,you are obligated to pay assessments to the City of Corpus Christi, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Services")undertaken for the benefit of the property within the Corpus Christi Tourism Public Improvement District(the"District")created under Subchapter A,Chapter 372,Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED SERVICES,WHICH MUST BE PAID IN FULL WITH EVERY PAYMENT BY THE HOTEL OF LOCAL HOTEL OCCUPANCY TAX REMITTANCES TO THE MUNICIPALITY. YOUR FAILURE TO PAY THE ASSESSMENT MAY RESULT IN PENALTIES AND INTEREST BEING ADDED TO WHAT YOU OWE, AND MAY INCLUDE THE PURSUIT OF ANY OTHER REMEDY THAT IS AUTHORIZED UNDER 372.0035(d), LOCAL GOVERNMENT CODE. Information about the calculation of the assessment may be obtained from the City of Corpus Christi. The exact assessment rate will be approved each year by the Corpus Christi City Council in the annual service plan update for the district.More information about the assessments,including the assessment rate and due dates, may be obtained from the City of Corpus Christi. The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. Date: Signature of Purchaser I Corpus Christi Tourism Public Improvement District (CCTPID) FY 25 Service Plan The Corpus Christi Tourism Public Improvement District (CCTPID) supplements Visit Corpus Christi's existing sales and marketing budget in order to generate increased leisure, business, and large group business to Corpus Christi hotels. The Service Plan is formulated to positively impact visitation through strategic expenditures directed and approved by the Board of Directors for the Tourism District.The voting members of the TPID Board of Directors is solely composed of a proportionately representative group of hoteliers from within the city. The proposed Tourism Public Improvement District is designed to strategically ensure that Visit Corpus Christi is able to successfully compete with Texas cities and other destinations across the country for an increased market share of leisure,event,and group travel. The CCTPID budget is allocated as shown in the table below: SERVICE PLAN % $ Marketing 50% $18,894,892 Sales 43% $16,249,607 Research and Administration 5% $1,889,489 Contingency Funds 2% $755,796 TOTAL 100% $37,789,784 The estimated TPID budget for the ten-year term(2022-2032)reflects projected collections based on a 2% assessment on each taxable room night sold by eligible Corpus Christi hotels with 40 or more rooms, as defined in the TPID petition.TPID expenditures are limited to actual collections.Newly constructed eligible hotels are incorporated into the TPID in accordance with statutory procedures. If TPID revenues exceed service plan estimates or expenditures within a category, surplus funds are reserved for use in subsequent service plan years and allocated according to the established service plan percentages. 10-Year Service Plan Category Percentages and Amounts 2024-2025 Year Marketing Sales Research and Contingency Total 50% 43% Administration Funds 5% 2% 100°0 2021- S 98,863 $ 85,022 $ 9,886 $ 3,955 S 197.726 2022 2022- S 1,440,688 $ 1,238,991 $ 144,069 $ 57,627 $ 2,881,375 2023 2023- $ 1,297,239 $ 1.115,626 $ 129.724 $ 51,889 $ 2.594,478 2024 2024 $ 1,394.968 $ 1,199,672 $ 139,497 $ 55,798 $ 2.789,935 2025 2025- $ 1.856,405 $ 1,596,508 $ 185,640 $ 74,256 $ 3,712,809 2026 2026- $ 1,935,145 $ 1,664,225 $ 193.515 $ 77,405 $ 3.870,290 2027 2027 $ 2.017,035 $ 1,734,650 $ 201.704 $ 80,681 $ 4,034,070 2028 2028- $ 2,102,201 $ 1,807,893 $ 210.220 $ 84,088 $ 4,204,402 2029 2029 $ 2,190,773 $ 1,884,065 $ 219,077 $ 87,631 $ 4,381.546 2030 2030- $ 2,282,889 $ 1,963,284 $ 228,289 $ 91,315 $ 4.565.777 2031 2031- $ 2,278.690 $ 1,959,673 $ 227,870 $ 91,143 $ 4,557,376 2032 Total $ 18,894,896 S 16,249,609 $ 1,889,491 $ 755,788 $ 37,789,784 PROJECTED CORPUS CHRISTI TOURISM PUBLIC IMPROVEMENT DISTRICT SERVICES Marketing (Advertising and Promotion) Initiatives Fifty percent(50%)of annual TPID funding supports expanded marketing initiatives that drive incremental hotel demand.These initiatives focus on strategically advancing audiences and markets that extend beyond the reach of hotel occupancy tax resources alone. Campaigns prioritize leisure, out-of-state, international, and high-value travel segments while reinforcing the Gulf Coast Capital brand. PR Campaigns TPID funding expands the scale,frequency,and geographic reach of Visit Corpus Christi brand campaigns. These investments support data-informed media strategies,public relations efforts,and content distribution that demonstrate strong return on investment and incremental room night generation. Experience Development/Visitor Servicing TPID investments elevate visitor experiences that influence length of stay, satisfaction, and repeat visitation. Funding supports in-market engagement programs, visitor services, experience development initiatives,and visitor research that informs continuous improvement. Creative Staffing and Operations TPID resources support design, content creation, media buying, analytics, and campaign optimization necessary to manage an expanded marketing portfolio. In 2025, it is expected the in-house marketing and creative team will touch nearly 500 projects that would otherwise be handled by an ad agency at a much higher cost. Sales (Conventions, Meetings, Sports) Initiatives Forty-three percent (43%)of TPID funding supports sales initiatives that increase group room nights and diversify demand. These investments align with Visit Corpus Christi's Destination Business Plan and strengthen sales capacity across conventions,sports, film, and music. Corpus Christi Sports Commission TPID funding supports sports tourism sales and servicing that leverage Corpus Christi's existing destination assets. VCC will continue to focus on strategically advancing non-traditional sporting events to drive large group business year round. Sales Staffing Current hotel occupancy tax fund levels have allowed us to maintain our sales force. Corpus Christi Film& Music Commission The Film & Music Commission continues to strategically thrive in Corpus Christi.This is a pivotal year in the Commission's existence—there will be more workshops, trainings and partner events to continue to develop the infrastructure that is so important in growing these segments.VCC anticipates adding additional marketing support in the film vertical to expand bandwidth and client attraction efforts. Meetings Marketing Campaign VCC continues to focus on strategically advancing meetings as an important segment to grow overnight visitation. Additional investment from the TPID in digital, broadcast and traditional media has allowed VCC to increase the number of leads generated and to improve close rate. We continue to balance long- term visitation trends with short-term conversion needs to maximize visitation year round. Tradeshows/Sales Missions Employing TPID funds, VCC attends more than twenty business to business tradeshows each year to bring new group business to the destination. Important groups by type are: social,military,educational,religious and fraternal. VCC tracks the number of RFPs by show to determine ROI. National Industry Organizations VCC's ability to develop partnerships with large meeting planner groups such as CVENT, HelmsBriscoe, NorthStar and US Travel Association is critical to the future success of Corpus Christi growing group room nights. We will continue to invest TPID funds in these memberships to increase our opportunity for new group business. Events Bid Fund TPID funds have allowed VCC to incentivize new groups that show strong potential ROI,including groups, meetings and sporting events. Research and Administration Five percent(5%)of the annual TPID budget is allocated to administration of the TPID and for increased visitor research initiatives that analyze the impact of TPID marketing and sales initiatives. Research VCC will begin aggregating all data into a dashboard to improve literacy and deepen the ability to see factors impacting the destination and sales. We will be well-positioned to report out to partners,elected and stake holders more quickly and with improved accuracy. Administrative Costs TPID continues to cover the additional costs to VCC for legal counsel, administration of the district, and supplemental finance and accounting assistance. Contingency Funds Two percent(2%)of the annual TPID budget is allocated to TPID contingency funds to allow consistent operation of the TPID Service Plan during unexpected economic challenges and to be ready to address new opportunities within each budget category. NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO CITY OF CORPUS CHRISTI TEXAS CONCERNING THIE FOLLOWING HOTEL PROPERTY (insert property address) As the purchaser of the real property described above,you are obligated to pay assessments to the City of Corpus Christi, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Services")undertaken for the benefit of the property within the Corpus Christi Tourism Public Improvement District(the"District")created under Subchapter A,Chapter 372,Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED SERVICES, WHICH MUST BE PAID IN FULL WITH EVERY PAYMENT BY THE HOTEL OF LOCAL HOTEL OCCUPANCY TAX REMITTANCES TO THE MUNICIPALITY. YOUR FAILURE TO PAY THE ASSESSMENT MAY RESULT IN PENALTIES AND INTEREST BEING ADDED TO WHAT YOU OWE, AND MAY INCLUDE THE PURSUIT OF ANY OTHER REMEDY THAT IS AUTHORIZED UNDER 372.0035(d), LOCAL GOVERNMENT CODE. Information about the calculation of the assessment may be obtained from the City of Corpus Christi. The exact assessment rate will be approved each year by the Corpus Christi City Council in the annual service plan update for the district.More information about the assessments,including the assessment rate and due dates,may be obtained from the City of Corpus Christi. The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. Date: Signature of Purchaser Corpus Christi Tourism Public Improvement District (CCTPID) FY 26 Service Plan The proposed Corpus Christi Tourism Public Improvement District (CCTPID) would supplement the existing sales and marketing budget in order to generate increased leisure, business, and large group business to Corpus Christi hotels and short-term rentals.The Service Plan is formulated to positively impact this visitation to Corpus Christi overnight accommodations through strategic expenditures that must be approved and are overseen by a Board of Directors for the Tourism District. The voting members of this TPID Board of Directors is solely composed of a proportionately representative group of hoteliers and short-term rentals from within the city. The proposed Tourism Public Improvement District is designed to ensure that the Corpus Christi Convention and Visitors Bureau is able to successfully compete with Texas cities and other cities across the country for an increased market share of leisure,event,and group travel. ANNUAL INDEBTEDNESS No bonded indebtedness.The improvements/expenditures of the CCTPID will not be debt-funded.Annual expenditures will be funded with the annual assessments as described below. PROJECTED EXPENDITURES The CCTPID budget would be allocated as shown in the table below. SERVICE PLAN % $ Marketing 50% $18,894,892 Sales 43% $16,249,607 Research and Administration 5% $1,889,489 Contingency Funds 2% $755,796 TOTAL 100% $37,789,784 The estimated budget for the TPID for the ten-year term of the District(2021-2031) is shown in the table below. The estimated budget is forecasted to increase by three percent(3%) per year. Expenditures of the TPID are limited to actual collections,which cannot exceed the 2%assessment on each taxable room night sale by Corpus Christi hotels with 40 or more rooms,as defined in the TPID petition. The TPID will follow established statutory procedures for the addition of newly built eligible hotels into the Corpus Christi TP1D. If actual TPID receipts exceed service plan estimates or if actual TPID receipts exceed actual TPID expenditures within a service plan category, any surplus TPID revenues will be reserved by the TPID for use in the subsequent year of the service plan according to the established Service Plan allocations. 10-Year Service Plan Category Percentages and Amounts 2025-2026 \'ear Marketing Sales Research and Contingency Total 50% 43% Administration Funds 5% 2% 100% 2021 $ 98.863 $ 85,022 $ 9,886 $ 3,955 $ 197,726 2022 2022 $ 1,440,688 $ 1,238,991 5 144,069 $ 57,627 $ 2,881,375 2023 2023- $ 1,297,239 S 1,115,626 $ 129,724 5 51,889 S 2,594,478 2024 2024- $ 1,394,968 $ 1,199,672 $ 139,497 5 55,798 $ 2,789,935 2025 2025 $ 1,373,976 $ 1,181,619 $ 137,398 $ 54.959 $ 2,747,952 2026 2026- $ 1,998,883 $ 1,719,039 $ 199,888 $ 79,955 $ 3,997,765 2027 2027 $ 2,080,773 $ 1,789.464 $ 208,077 $ 83.231 $ 4,161.545 2028 2028- $ 2,165.939 $ 1,862,707 $ 216.594 $ 86.637 $ 4.331.877 2029 2029 $ 2,254,511 $ 1,938,879 $ 225,451 $ 90,180 $ 4,509,021 2030 2030- $ 2,346,626 S 2.018.098 $ 234.663 $ 93,865 $ 4,693,252 2031 2031- $ 2,442,429 $ 2.100,491 $ 244.243 $ 97,695 $ 4,884,858 2032 Total S 18,894,895 $ 16,249,608 S 1,889,490 S 755,791 S 37,789,784 PROJECTED CORPUS CHRISTI TOURISM PUBLIC IMPROVEMENT DISTRICT SERVICES Marketing (Advertising and Promotion) Initiatives Fifty percent(50%)of the annual TPID budget will be allocated to increased marketing initiatives to drive more hotel activity to Corpus Christi. All advertising and promotion initiatives will be designed to increase awareness and travel within the leisure market for segments of the market that are not currently being reached by Visit Corpus Christi, out of state, and international markets. Such initiatives may include but are not limited to: Programs to increase demand through: Marketing& PR Campaigns Current hotel occupancy tax fund levels do not allow Visit Corpus Christi the ability to conduct the level of campaigns noted below. Existing VCC brand campaigns would utilize TP/0 funds to better reach the below noted and other essential markets. VCC would have the ability to expand the reach of these campaigns to areas there were not within our prior budget capacity, but for which data suggests a strong ROI for such marketing initiatives. Central North Texas Campaign Historically VCC has focused on marketing in the San Antonio,Houston and RGV areas.VCC has not had sufficient funding to effectively promote Corpus Christi in the other key potential target markets of Austin and the DFW Metroplex. Competing cities such as Galveston and Florida beach destinations are heavily promoting their areas in these markets. Existing creative on Corpus Christi can be used to expand VCC's reach into these additional and other areas. Border States/Central US Campaign Heavy research by the VCC marketing team and ad agency also shows considerable opportunities for VCC to market to key border state cities and to select other locales that would be especially interested in Corpus Christi due it being the closest beach to their area. This initiative could be realized through a targeted campaign focused on New Orleans, Lake Charles, Little Rock, Kansas City, Oklahoma City, Tulsa, Wichita,Denver, Albuquerque,and Santa Fe. Mexico/International Campaign Corpus Christi's proximity to Mexico warrants advertising along the Mexican side of the RGV as well as within Sister City Monterrey. Data proves San Antonio and South Padre are currently capitalizing on this growing population which has the income to travel. The TPID provides an opportunity for VCC to also effectively compete for this segment. Air Service Promotion Campaigns VCC and CCIA leadership continue to focus on following the data and using it for potential expansion of air access from and to Corpus Christi for key new target markets.The ability to promote visitation by those markets and the ease in reaching such markets through our airports is crucial to the long-term success of those routes. Creative Operations Experience DevelopmentNisitor Servicing A key strategy for VCC to further separate Corpus Christi from its competition is experience development and servicing. With the TPID, a heightened focus can be put on developing enhanced programs and experiences that yield heightened visitor perceptions of Corpus Christi as a destination. Current hotel occupancy tax fund levels have allowed us to develop a new visitor center,but they have only enabled basic beach service operations, and limited promotions of all the area beaches, the airport and convention services. To ensure a strong ROI on these expenditures, visitor surveying can be used to ensure we are giving visitors what they desire. Creative Staffing and Operations The expansion of our campaigns will likely require additional staff or contract services, or a combination of both. Current hotel occupancy tax fund levels have allowed us to have a marketing team of four individuals. The combination of hotel tax and TPID funds would allow a $4 million annual marketing budget that will likely require limited additional staffing that will be presented to the TPID Board for their consideration and approval. Sales (Conventions, Meetings, Sports) Initiatives Forty-three percent (43%) of the annual TPID budget will be allocated to increased Sales initiatives. All sales initiatives are designed to increase state, regional, and national awareness of Corpus Christi as a meetings,conventions,and sports destination and foster subsequent bookings in district hotels.Such efforts will include but would not be limited to: Programs to increase demand through: Group Sales Corpus Christi Sports Commission Corpus Christi has a competitive advantage in that it offers something many other cities cannot--water. The opportunity for Corpus Christi to leverage our natural assets to secure competitive water and land sporting events will drive a new segment of visitors and visitor spending. Youth Sports is a $1 billion industry that Corpus Christi is also not currently involved in. An organized Youth Sports initiative would drive substantial additional rooms nights within this important market segment. Current hotel occupancy tax fund levels have not allowed us to initiate this much needed program. Sales Staffing Current hotel occupancy tax fund levels have allowed us to create a sales team of two plus a coordinator. To grow our group sales operations,VCC cannot continue to have a sales team of only two staff members. The addition of a TPID would allow us to propose an expansion of our sales focus serving key segments with a diverse strategy of prospecting and selling. Corpus Christi Film&Music Commission A growing responsibility of DMOs is the ability to sell their community as a film location. In addition, cities like Austin,Nashville and Tulsa have each proven that a rich and unique music vibe is just what a growing trend of travelers are seeking who want authentic cultural experiences.The Corpus Christi Film& Music Commission, in partnership with VCC, will actively seek out opportunities in the film and music industries to bring business,room nights,and exposure to Corpus Christi.Current hotel occupancy tax fund levels have not allowed us to access sufficient funding for this much needed program. Sales Servicing With an additional influx of prospective clients and actualized business from different group segments, sports, film and music,additional staff servicing will likely also be required. Current hotel occupancy tax fund levels have allowed us to service the existing framework for serving our clients, but we will need to expand those services with focuses on additional anticipated sports business, national sales, and leisure sales.The TPID Board will work closely with VCC on what augmented staffing pattern would produce the greatest ROI. Group Sales Promotion Texas-wide Meetings Marketing Campaign As VCC continues to work with the American Bank Center and the city on development of the SEA District Complex,as well as an increased sales staff presence,it will be essential that there be an enhanced statewide marketing campaign targeting both corporate and association group business. For example, the unique downtown district coupled with the natural environment that is part of Corpus Christi's unique appeal, allows VCC to market to the meetings industry that Corpus Christi is a location to host and enjoy at the same time.Current hotel occupancy tax fund levels have not been sufficient to initiate this enhancement of our marketing program. • Tradeshows/Sales Missions A focus on new market segments means involvement in new tradeshows and site visits.To ensure success, VCC must increase its involvement with key associations and organizations. Current hotel occupancy tax fund levels have focused on trade and government association business,but we have not been able to attend other events in a cost-effective basis that would get us in front of multiple industry segments through entities such as CVENT, HelmsBriscoe,Northstar,and others. National Industry Organizations The ability to develop partnerships with the largest meeting planner groups within organizations such as CVENT, HelmsBriscoe, Northstar and US Travel Association is critical to the future success of Corpus Christi growing its group room nights. Current hotel occupancy tax fund levels have focused on state association outreach, but we have not been able to afford the marketing that was needed to significantly expand that reach.The TPID funding will help bridge this gap. Events Bid Fund The limited ability to use Corpus Christi's Conference Events Fund (CEF) as incentives for large groups critically limits VCC's ability to incentivize groups that are not being housed at the American Bank Center. A separate TPID bid incentive fund will allow VCC to incentivize additional groups that show a strong potential ROI, including groups that are housed in individual hotels, as well as sporting groups and film crews that would increasingly choose Corpus Christi if we could more effectively compete for their business with reasonable sales incentives. Research and Administration Initiatives Five percent (5%) of the annual TPID budget would be allocated to administration of the TPID and for increased visitor research initiatives that analyze the impact of TPID marketing and sales initiatives in driving more hotel activity,tourism and positive visitor impressions for Corpus Christi.Research costs may include,but would not be limited to the following: Research Growing our tourism and hotel activity reach will require a continued dedication to research and prospecting programs to ensure a strong ROI from the sales and marketing initiatives undertaken by the TPID.Current hotel occupancy tax fund levels have allowed us to conduct research with minimal GPS data as well as basic prospecting programs. With the TPID funding, we will be able to utilize higher level and more accurate and strategic ROI research programs as well as additional industry leading sales prospecting tools. Administrative Costs The collection of tourism PIO fees will produce certain costs to the City and to the TPID that the TPID will have to reimburse. The TPID will need to cover limited additional costs to VCC for legal counsel, administration of the district, and supplemental finance and accounting help that will be needed to administer the TPID funds.Current hotel occupancy tax fund levels have allowed us to have one individual in our VCC finance department, but we anticipate needing to contract for certain services and to increase that staffing oversight upon consideration and approval by the TPID Board. Contingency Funds Two Percent (2%) of the annual TPID budget will be allocated to TPID contingency funds to allow consistent operation of the TPID Service Plan during unexpected economic challenges and to be ready to address unanticipated new opportunities within each budget category. IN ACCORDNANCE WITH TEXAS PROPERTY CODE§5.014,THE NOTICE ON THE NEXT PAGE MUST BE PROVIDED TO ANY PURCHASER OF PROPERTY SUBJECT TO ASSESSMENT BY THE CCTPID AT THE TIME OF SALE. NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO CITY OF CORPUS CHRISTI TEXAS CONCERNING THIE FOLLOWING HOTEL PROPERTY (insert property address) As the purchaser of the real property described above,you are obligated to pay assessments to the City of Corpus Christi, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Services")undertaken for the benefit of the property within the Corpus Christi Tourism Public Improvement District(the"District")created under Subchapter A,Chapter 372,Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED SERVICES, WHICH MUST BE PAID IN FULL WITH EVERY PAYMENT BY THE HOTEL OF LOCAL HOTEL OCCUPANCY TAX REMITTANCES TO THE MUNICIPALITY. YOUR FAILURE TO PAY THE ASSESSMENT MAY RESULT IN PENALTIES AND INTEREST BEING ADDED TO WHAT YOU OWE, AND MAY INCLUDE THE PURSUIT OF ANY OTHER REMEDY THAT IS AUTHORIZED UNDER 372.0035(d), LOCAL GOVERNMENT CODE. Information about the calculation of the assessment may be obtained from the City of Corpus Christi. The exact assessment rate will be approved each year by the Corpus Christi City Council in the annual service plan update for the district.More information about the assessments,including the assessment rate and due dates,may be obtained from the City of Corpus Christi. The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. Date: Signature of Purchaser Corpus Christi Tourism Public Improvement District (CCTPID) FY 27 Service Plan The proposed Corpus Christi Tourism Public Improvement District (CCTPID) would supplement the existing sales and marketing budget in order to generate increased leisure, business, and large group business to Corpus Christi hotels and short-term rentals.The Service Plan is formulated to positively impact this visitation to Corpus Christi overnight accommodations through strategic expenditures that must be approved and are overseen by a Board of Directors for the Tourism District. The voting members of this TPID Board of Directors is solely composed of a proportionately representative group of hoteliers and short-term rentals from within the city. The proposed Tourism Public Improvement District is designed to ensure that the Corpus Christi Convention and Visitors Bureau is able to successfully compete with Texas cities and other cities across the country for an increased market share of leisure,event, and group travel. ANNUAL INDEBTEDNESS No bonded indebtedness.The improvements/expenditures of the CCTPID will not be debt-funded.Annual expenditures will be funded with the annual assessments as described below. PROJECTED EXPENDITURES The CCTPID budget would be allocated as shown in the table below. SERVICE PLAN % $ Marketing 50% $18,894,892 Sales 43% $16,249,607 Research and Administration 5% $1,889,489 Contingency Funds 2% $755,796 TOTAL 100% $37,789,784 The estimated budget for the TPID for the ten-year term of the District(2021-2031) is shown in the table below. The estimated budget is forecasted to increase by three percent(3%) per year. Expenditures of the TPID are limited to actual collections,which cannot exceed the 2%assessment on each taxable room night sale by Corpus Christi hotels with 40 or more rooms,as defined in the TPID petition. The TPID will follow established statutory procedures for the addition of newly built eligible hotels into the Corpus Christi TPID. If actual TPID receipts exceed service plan estimates or if actual TPID receipts exceed actual TPID expenditures within a service plan category, any surplus TPID revenues will be reserved by the TPID for use in the subsequent year of the service plan according to the established Service Plan allocations. 10-Year Service Plan Category Percentages and Amounts 2026-2027 Year Marketing Sales Research and Contingency Total 50% 43% Administration Funds 5"0 2% 100% 2021- $ 98,863 $ 85.022 $ 9.886 $ 3.955 S 197.726 2022 2022- $ 1,440,688 $ 1,238,991 $ 144,069 S 57,627 S 2,881,375 2023 2023- $ 1,297,239 $ 1,115,626 $ 129,724 $ 51.889 S 2,594,478 2024 2024- $ 1,394,968 S 1,199,672 $ 139,497 $ 55,798 S 2,789,935 2025 2025- $ 1,373,976 S 1,181,619 $ 137,398 $ 54,959 $ 2,747,952 2026 2026- $ 1,998,883 S 1,719,039 $ 199.888 S 79,955 $ 3,997,765 2027 2027- $ 1,381,845 $ 1.188,386 $ 138,184 S 55,274 S 2,763,689 2028 2028 $ 2,368,383 S 2,036,809 $ 236,838 $ 94,736 $ 4,736,766 2029 2029- S 2,439,435 $ 2,097,914 $ 243,943 $ 97,577 $ 4,878,869 2030 2030- $ 2,512,618 $ 2,160,851 S 251,262 $ 100,505 S 5,025,236 2031 2031- $ 2,587,994 $ 2,225,678 $ 258,800 $ 103,521 S 5,175,993 2032 Total $ 18,894,892 $ 16,249,607 $ 1,889,489 $ 755,796 $ 37,789,784 PROJECTED CORPUS CHRISTI TOURISM PUBLIC IMPROVEMENT DISTRICT SERVICES Marketing (Advertising and Promotion) Initiatives Fifty percent(50%)of the annual TPID budget will be allocated to increased marketing initiatives to drive more hotel activity to Corpus Christi.All advertising and promotion initiatives will be designed to increase awareness and travel within the leisure market for segments of the market that are not currently being reached by Visit Corpus Christi, out of state, and international markets. Such initiatives may include but are not limited to: Programs to increase demand through: Marketing&PR Campaigns Current hotel occupancy tax fund levels do not allow Visit Corpus Christi the ability to conduct the level of campaigns noted below. Existing VCC brand campaigns would utilize TP/0 funds to better reach the below noted and other essential markets. VCC would have the ability to expand the reach of these campaigns to areas there were not within our prior budget capacity, but for which data suggests a strong ROI for such marketing initiatives. Central North Texas Campaign Historically VCC has focused on marketing in the San Antonio,Houston and RGV areas.VCC has not had sufficient funding to effectively promote Corpus Christi in the other key potential target markets of Austin and the DFW Metroplex.Competing cities such as Galveston and Florida beach destinations are heavily promoting their areas in these markets. Existing creative on Corpus Christi can be used to expand VCC's reach into these additional and other areas. Border States/Central US Campaign Heavy research by the VCC marketing team and ad agency also shows considerable opportunities for VCC to market to key border state cities and to select other locales that would be especially interested in Corpus Christi due it being the closest beach to their area. This initiative could be realized through a targeted campaign focused on New Orleans, Lake Charles, Little Rock, Kansas City, Oklahoma City, Tulsa, Wichita, Denver, Albuquerque,and Santa Fe. Mexico/International Campaign Corpus Christi's proximity to Mexico warrants advertising along the Mexican side of the RGV as well as within Sister City Monterrey. Data proves San Antonio and South Padre are currently capitalizing on this growing population which has the income to travel. The TPID provides an opportunity for VCC to also effectively compete for this segment. Air Service Promotion Campaigns VCC and CCIA leadership continue to focus on following the data and using it for potential expansion of air access from and to Corpus Christi for key new target markets.The ability to promote visitation by those markets and the ease in reaching such markets through our airports is crucial to the long-term success of those routes. Creative Operations Experience Development/Visitor Servicing A key strategy for VCC to further separate Corpus Christi from its competition is experience development and servicing. With the TPID, a heightened focus can be put on developing enhanced programs and experiences that yield heightened visitor perceptions of Corpus Christi as a destination. Current hotel occupancy tax fund levels have allowed us to develop a new visitor center,but they have only enabled basic beach service operations, and limited promotions of all the area beaches, the airport and convention services. To ensure a strong ROI on these expenditures, visitor surveying can be used to ensure we are giving visitors what they desire. Creative Staffing and Operations The expansion of our campaigns will likely require additional staff or contract services, or a combination of both. Current hotel occupancy tax fund levels have allowed us to have a marketing team of four individuals. The combination of hotel tax and TPID funds would allow a $4 million annual marketing budget that will likely require limited additional staffing that will be presented to the TPID Board for their consideration and approval. Sales (Conventions, Meetings, Sports) Initiatives Forty-three percent (43%) of the annual TPID budget will be allocated to increased Sales initiatives. All sales initiatives are designed to increase state, regional, and national awareness of Corpus Christi as a meetings,conventions,and sports destination and foster subsequent bookings in district hotels. Such efforts will include but would not be limited to: Programs to increase demand through: Group Sales Corpus Christi Sports Commission Corpus Christi has a competitive advantage in that it offers something many other cities cannot— water. The opportunity for Corpus Christi to leverage our natural assets to secure competitive water and land sporting events will drive a new segment of visitors and visitor spending. Youth Sports is a $1 billion industry that Corpus Christi is also not currently involved in. An organized Youth Sports initiative would drive substantial additional rooms nights within this important market segment. Current hotel occupancy tax fund levels have not allowed us to initiate this much needed program. Sales Staffing Current hotel occupancy tax fund levels have allowed us to create a sales team of two plus a coordinator. To grow our group sales operations,VCC cannot continue to have a sales team of only two staff members. The addition of a TPID would allow us to propose an expansion of our sales focus serving key segments with a diverse strategy of prospecting and selling. Corpus Christi Film&Music Commission A growing responsibility of DMOs is the ability to sell their community as a film location. In addition, cities like Austin,Nashville and Tulsa have each proven that a rich and unique music vibe is just what a growing trend of travelers are seeking who want authentic cultural experiences.The Corpus Christi Film& Music Commission, in partnership with VCC, will actively seek out opportunities in the film and music industries to bring business,room nights,and exposure to Corpus Christi.Current hotel occupancy tax fund levels have not allowed us to access sufficient funding for this much needed program. Sales Servicing With an additional influx of prospective clients and actualized business from different group segments, sports, film and music,additional staff servicing will likely also be required. Current hotel occupancy tax fund levels have allowed us to service the existing framework for serving our clients, but we will need to expand those services with focuses on additional anticipated sports business, national sales, and leisure sales.The TPID Board will work closely with VCC on what augmented staffing pattern would produce the greatest ROI. Group Sales Promotion Texas-wide Meetings Marketing Campaign As VCC continues to work with the American Bank Center and the city on development of the SEA District Complex,as well as an increased sales staff presence,it will be essential that there be an enhanced statewide marketing campaign targeting both corporate and association group business. For example, the unique downtown district coupled with the natural environment that is part of Corpus Christi's unique appeal, allows VCC to market to the meetings industry that Corpus Christi is a location to host and enjoy at the same time.Current hotel occupancy tax fund levels have not been sufficient to initiate this enhancement of our marketing program. Tradeshows/Sales Missions A focus on new market segments means involvement in new tradeshows and site visits.To ensure success, VCC must increase its involvement with key associations and organizations. Current hotel occupancy tax fund levels have focused on trade and government association business,but we have not been able to attend other events in a cost-effective basis that would get us in front of multiple industry segments through entities such as CVENT,HelmsBriscoe,Northstar,and others. National Industry Organizations The ability to develop partnerships with the largest meeting planner groups within organizations such as CVENT, HelmsBriscoe,Northstar and US Travel Association is critical to the future success of Corpus Christi growing its group room nights. Current hotel occupancy tax fund levels have focused on state association outreach, but we have not been able to afford the marketing that was needed to significantly expand that reach. The TPID funding will help bridge this gap. Events Bid Fund The limited ability to use Corpus Christi's Conference Events Fund (CEF) as incentives for large groups critically limits VCC's ability to incentivize groups that are not being housed at the American Bank Center. A separate TPID bid incentive fund will allow VCC to incentivize additional groups that show a strong potential ROI, including groups that are housed in individual hotels, as well as sporting groups and film crews that would increasingly choose Corpus Christi if we could more effectively compete for their business with reasonable sales incentives. Research and Administration Initiatives Five percent (5%) of the annual TPID budget would be allocated to administration of the TPID and for increased visitor research initiatives that analyze the impact of TPID marketing and sales initiatives in driving more hotel activity,tourism and positive visitor impressions for Corpus Christi.Research costs may include,but would not be limited to the following: Research Growing our tourism and hotel activity reach will require a continued dedication to research and prospecting programs to ensure a strong ROI from the sales and marketing initiatives undertaken by the TPID.Current hotel occupancy tax fund levels have allowed us to conduct research with minimal GPS data as well as basic prospecting programs. With the TPID funding, we will be able to utilize higher level and more accurate and strategic ROI research programs as well as additional industry leading sales prospecting tools. Administrative Costs The collection of tourism PIO fees will produce certain costs to the City and to the TPID that the TPID will have to reimburse. The TPID will need to cover limited additional costs to VCC for legal counsel, administration of the district, and supplemental finance and accounting help that will be needed to administer the TPID funds.Current hotel occupancy tax fund levels have allowed us to have one individual in our VCC finance department, but we anticipate needing to contract for certain services and to increase that staffing oversight upon consideration and approval by the TPID Board. Contingency Funds Two Percent (2%) of the annual TPID budget will be allocated to TPID contingency funds to allow consistent operation of the TPID Service Plan during unexpected economic challenges and to be ready to address unanticipated new opportunities within each budget category. IN ACCORDNANCE WITH TEXAS PROPERTY CODE§5.014,THE NOTICE ON THE NEXT PAGE MUST BE PROVIDED TO ANY PURCHASER OF PROPERTY SUBJECT TO ASSESSMENT BY THE CCTPID AT THE TIME OF SALE. NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO CITY OF CORPUS CHRISTI TEXAS CONCERNING THIE FOLLOWING HOTEL PROPERTY (insert property address) As the purchaser of the real property described above,you are obligated to pay assessments to the City of Corpus Christi, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Services")undertaken for the benefit of the property within the Corpus Christi Tourism Public Improvement District(the"District")created under Subchapter A,Chapter 372,Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED SERVICES,WHICH MUST BE PAID IN FULL WITH EVERY PAYMENT BY THE HOTEL OF LOCAL HOTEL OCCUPANCY TAX REMITTANCES TO THE MUNICIPALITY. YOUR FAILURE TO PAY THE ASSESSMENT MAY RESULT IN PENALTIES AND INTEREST BEING ADDED TO WHAT YOU OWE, AND MAY INCLUDE THE PURSUIT OF ANY OTHER REMEDY THAT IS AUTHORIZED UNDER SECTION 372.0035(d),LOCAL GOVERNMENT CODE. Information about the calculation of the assessment may be obtained from the City of Corpus Christi. The exact assessment rate will be approved each year by the Corpus Christi City Council in the annual service plan update for the district.More information about the assessments,including the assessment rate and due dates,may be obtained from the City of Corpus Christi. The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. Date: Signature of Purchaser Exhibit B TPID Assessment Rolls FYs 2023, 2024, 2025, 2026 & 2027 Sleeping Loation Name Address City State Rooms OMNI BAYFRONT HOTEL 900 SHORELINE BLVD N CORPUS CHRISTI,TX 78401 475 Holiday Inn Express Corpus Christi Beachfront 1102 S SHORELINE BLVD-BLDG 42 CORPUS CHRISTI,TX 78401 368 EMERALD BEACH HOTEL 1102 SHORELINE BLVD S-BLDG p1 CORPUS CHRISTI,TX 78401 368 HOLIDAY INN MARINA 707 SHORELINE BLVD N CORPUS CHRISTI,TX 78401 346 CORPUS CHRISTI AIRPORT AND CONFERENCE CENTER 5549 LEOPARD ST CORPUS CHRISTI,TX 78408 237 BEST WESTERN GRAND MARINA HOTEL 300 SHORELINE BLVD N CORPUS CHRISTI,TX 78401 174 FAIRBRIDGE INN(Oyo Hotel) 910 CORN PRODUCTS RD CORPUS CHRISTI,TX 78409 160 EMBASSY SUITES HOTEL 4337 Padre Island DR S CORPUS CHRISTI,TX 78411 150 Island Resort Hotel(Holiday Inn) 15202 WINDWARD DR CORPUS CHRISTI,TX 78418 149 MOTEL 6(I-37) 6301 IH-37 RD CORPUS CHRISTI,TX 78409 140 RADISSON HOTEL(139 ROOMS) 3200 SURFSIDE BLVD CORPUS CHRISTI,TX 78402 139 INTOWN SUITES HOTEL 5142 OAKHURST DR CORPUS CHRISTI,TX 78411 135 Palm Bliss Hotel(formerly LA QUINTA INN SOUTH) 6225 Padre Island DR S CORPUS CHRISTI,TX 78412 129 HYATT PLACE HOTEL 6773 PADRE ISLAND DR S CORPUS CHRISTI,TX 78412 128 H0MEWOOD SUITES CORPUS CHRISTI DOWNTOWN 402 LOMAX ST CORPUS CHRISTI,TX 78401 127 MOTEL 6 SOUTH K413 8202 S Padre Island DR CORPUS CHRISTI,TX 78412 125 MOTEL 6 NORTH 8231 845 LANTANA ST CORPUS CHRISTI,TX 78408 124 LAQUINTA INN NORTH 5155 Interstate Hwy 37 CORPUS CHRISTI,TX 78408 123 STUDIO 6 HOTEL 5850 WILLIAMS DR CORPUS CHRISTI,TX 78412 123 WOODSPRING SUITES 1026 Padre Island DRS CORPUS CHRISTI,TX 78416 121 KNIGHTS INN&LAS MILPAS RESTAURANT(Red Roof) 901 NAVIGATION BLVD N CORPUS CHRISTI,TX 78408 121 RESIDENCE INN BY MARRIOTT 3313 S PADRE ISLAND DR CORPUS CHRISTI,TX 78415 120 RED ROOF INN 6805 Padre Island DR S CORPUS CHRISTI,TX 78412 120 SPRINGHILL SUITES BY MARRIOTT 4331 Padre Island DR S CORPUS CHRISTI,TX 78411 119 HILTON GARDEN INN PADRE PLAZA 6717 Padre Island DR S CORPUS CHRISTI,TX 78412 119 PLAZA HOTEL AT NORTH BEAO4 3202 SURFSIDE BLVD CORPUS CHRISTI,TX 78402 112 RESIDENCE INN MARRIOTT 309 S Shoreline BLVD Corpus Christi TX 78401 CORPUS CHRISTI,TX 78401 110 IA QUINTA INN&SUITES 5921 S PADRE ISLAND DR CORPUS CHRISTI,TX 78412 109 Home2Suites by Hilton CC Southeast 5274 S Padre Island Dr Corpus Christi 78411 CORPUS CHRISTI,TX 78411 109 • TOWNEPLACE SUITES MARRIOTT 6701 Padre Island DR S CORPUS CHRISTI,TX 78412 107 Best Western(formerly Plaza Inn) 2021 PADRE ISLAND DR N CORPUS CHRISTI,TX 78408 105 ' ALOFT HOTEL 5117 EMBASSY DR CORPUS CHRISTI,TX 78411 105 • COURTYARD BY MARRIOT 5133 FLYNN PKWY CORPUS CHRISTI,TX 78411 105 • HAMPTON INN AND SUITES 5879 PADRE ISLAND DR S CORPUS CHRISTI,TX 78412 101 TRU BY HILTON 4325 PADRE ISLAND DR S CORPUS CHRISTI,TX 78411 100 RODEWAY INN 5224 Interstate Hwy 37 CORPUS CHRISTI,TX 78407 99 COMFORT SUITES CENTRAL 538 S Padre Island DR CORPUS CHRISTI,TX 78405 93 WINGATE HOTEL 7150 S PADRE ISLAND OR CORPUS CHRISTI,TX 78412 92 EXECUTIVE RESIDENCY BY BEST WESTERN 9305 PADRE ISLAND DR S CORPUS CHRISTI,TX 78418 92 BEST WESTERN PLUS/EXECUTIVE RESIDENCY 3533 MCKINZIE ROAD CORPUS CHRISTI,TX 78410 88 STAYBRIDGE SUITES HOTEL 5201 OAKHURST DR CORPUS CHRISTI,TX 78411 88 HOLIDAY INN EXPRESS&SUITES 5213 OAKHURST DR CORPUS CHRISTI,TX 78411 88 HOMEWOOD SUITES HILTON S201 CROSSTOWN(HWY 286) CORPUS CHRISTI,TX 78417 86 HAMPTON INN 917 NAVIGATION BLVD CORPUS CHRISTI,TX 78408 80 HOLIDAY INN EXPRESS 929 NAVIGATION BLVD CORPUS CHRISTI,TX 78408 80 HOUDAY INN EXPRESS 15209 WINDWARD DR CORPUS CHRISTI,TX 78418 79 FAIRFIELD INN&SUITES BY MARRIOTT 522 S PADRE ISLAND DR CORPUS CHRISTI,TX 78405 76 VALLEY MOTEL 5330 Leopard ST CORPUS CHRISTI,TX 78408 75 CANDLEWOOD SUITES 5014 CROSSTOWN EXPWY CORPUS CHRISTI,TX 78415 74 HAWTHORN SUITES BY WYNDHAM 1442 Padre Island DR S CORPUS CHRISTI,TX 78416 72 HOLIDAY INN EXPRESS 13425 BROOKHAVEN DR CORPUS CHRISTI,TX 78410 71 LIVELY BEACH RESORT 138 ZAHN ROAD CORPUS CHRISTI,TX 78418 68 DAYS INN 3925 Padre Island DR S CORPUS CHRISTI,TX 78415 68 CANDLEWOOD SUITES NAS 9225 PADRE ISLAND DR S CORPUS CHRISTI,TX 78418 68 LA QUINTA INN&SUITES(Airport) 5465 Padre Island DR CORPUS CHRISTI,TX 78405 67 EXECUTIVE INN 6033 Leopard ST CORPUS CHRISTI,TX 78409 67 LAQUINTA INN(NW) 104461H-37 ACCESS RD CORPUS CHRISTI,TX 78410 66 COMFORT SUITES(TAMUCC) 1814 ENNIS JOSLIN RD CORPUS CHRISTI,TX 78412 66 FAIRFIELD INN MARRIOTT 5217 BLANCHE MOORE CORPUS CHRISTI,TX 78411 66 RESIDENCE INN MARRIOTT S229 BLANCHE MOORE CORPUS CHRISTI,TX 78411 66 COUNTRY INN&SUITES BY RAOISSON 5209 BLANCHE MOORE CORPUS CHRISTI,TX 78411 62 BEST WESTERN 3838 IH 69 ACCESS RD CORPUS CHRISTI,TX 78410 61 I LAQUINTA INN&SUITES 14430 PADRE ISLAND DR S CORPUS CHRISTI,TX 78418 60 DAYS INN CORPUS CHRISTI BEACH 4302 SURFSIDE BLVD CORPUS CHRISTI,TX 78402 56 HAWTHORN SUITES BAHIA MAR HOTEL 15201 WINDWARD DR CORPUS CHRISTI,TX 78418 54 HAMPTON INN 11233 IH-37 CORPUS CHRISTI,TX 78410 50 BEST WESTERN PARADISE INN 6301 S PADRE ISLAND DR CORPUS CHRISTI,TX 78412 SO SUPER 8 HOTEL 902 NAVIGATION BLVD CORPUS CHRISTI,TX 78408 49 WINOWATER INN(FMR QUALITY INN) 1901 Padre Island DR N CORPUS CHRISTI,TX 78408 47 ECONO LODGE INN&SUITES 722 PORT AVE N CORPUS CHRISTI,TX 78408 44 PADRE MOTEL 9401 PADRE ISLAND DR S CORPUS CHRISTI,TX 78418 44 BAY SHORE INN 4349 Ocean DR CORPUS CHRISTI,DC 78412 42 • BEST WESTERN PADRE ISLAND 14050 S PADRE ISLAND ROAD CORPUS CHRISTI,TX 78418 40 • SUPER 8 11217 Interstate Hwy 37 CORPUS CHRISTI,TX 78410 40 HOTEL DE VILLE 3500 SURFSIDE BLVD E CORPUS CHRISTI,TX 78402 40 EXHIBIT C Texas Property Code Section 5.014(A) Notice (Required Before Contract) NOTICE OF OBLIGATIONS RELATED TO PUBLIC IMPROVEMENT DISTRICT A person who proposes to sell or otherwise convey real property that is located in a public improvement district established under Subchapter A, Chapter 372, Local Government Code (except for public improvement districts described under Section 372.005), or Chapter 382, Local Government Code, shall first give to the purchaser of the property this written notice,signed by the seller. For the purposes of this notice, a contract for the purchase and sale of real property having a performance period of less than six months is considered a sale requiring the notice set forth below. This Notice requirement does not apply to a transfer: 1) Under a court order or foreclosure; 2) By a trustee in bankruptcy; 3) To a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest; 4) By a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court-ordered foreclosure or has acquired the land by a deed in lieu of foreclosure; 5) By a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust; 6) From one co-owner to another co-owner of an undivided interest in the real property; 7) To or from a government entity;or, 8) Of only a mineral interest,leasehold interest,or security interest. The following notice shall be given to the prospective purchaser before the execution of a binding contract of purchase and sale,either separately or as an addendum or paragraph of a purchase contract. In the event a contract of purchase and sale is entered into without the seller having provided the required notice, the purchases, subject to certain exception, is entitled to terminate the contract. A separate copy of this notice shall be executed by the seller and the purchase and must be filed in the real property records of the county in which the property is located at the closing of the purchase and sale of the property. NOTICE OF OBLIGATION TO PAY CORPUS CHRISTI TOURISM PUBLIC IMPROVEMENT DISTRICT ASSESSMENT TO CITY OF CORPUS CHRISTI, TEXAS CONCERNING HOTEL PROPERTY: As the purchaser of the real property described above,you are obligated to pay assessments City of Corpus Christi, Texas, (the "City") for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within CORPUS CHRISTI TOURISM PUBLIC IMPROVEMENT DISTRICT (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from the City. The exact amount of each annual installment will be approved each year by the City in the annual service plan update for the district. More information about the assessments, including the amounts and due dates, may be obtained from the City. Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property. The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the hotel real property at the address described above. Buyer(Print Name) Signature Date Buyer(Print Name) Signature The undersigned seller acknowledges providing this notice to the potential purchaser before the effective date of a binding contract for the purchase of the hotel real property at the address described above. Seller(Print Name) Signature Date Seller(Print Name) Signature Date } AFTER RECORDING RETURN TO: 1 11 Nueces County Kara Sands Nueces County Clerk *VG-85-2026-2026036919* Instrument Number: 2026036919 Official Public Records NOTICE Recorded On: October 20, 2026 12:34 PM Number of Pages: 39 " Examined and Charged as Follows: " Total Recording: $168.00 ���00,,t STATE OF TEXAS Gp�r1TY CpU��t11 Nueces County f* 4. *f• I hereby certify that this Instrument was filed in the File Number sequence on the date/time ,, �1.- printed hereon, and was duly recorded in the Official Records of Nueces County,Texas ilgliiy p S �C,' f Kara Sands 11 *PJ\a— -G,,,Ja-) h N Nueces County Clerk Nueces County, TX ***********THIS PAGE IS PART OF THE INSTRUMENT*********** Any provision herein which restricts the Sale, Rental or use of the described REAL PROPERTY • because of color or race is invalid and unenforceable under federal law. File Information: Record and Return To: Document Number: 2026036919 CITY OF CORPUS CHRISTI Receipt Number: 20261020000072 Recorded Date/Time: October 20, 2026 12:34 PM User: Lisa C Station: CLERK06 bus e Gp o` �' �� CITY OF CORPUS CHRISTI vh„, y CERTIFICATION OF PUBLIC RECORD 1852 THE STATE OF TEXAS § COUNTY OF NUECES § I, the undersigned City Secretary of the City of Corpus Christi, Texas, so certify that the following is a true and correct copy of Ordinance No. 034030 passed and approved by the Corpus Christi City Council on October 13, 2026, as same appears in the Official Records of the City of Corpus Christi, Texas, of which the City Secretary's Office is the lawful custodian. WITNESSETH MY HAND and the Official Seal of the City of Corpus Christi, Texas, this 20th day of October 2026. Reb cca Huerta City Secretary Corpus Christi, Texas (SEAL) City of Corpus Christi Rebecca Huerta, City Secretary P.O. Box 9277 Corpus Christi,Texas 78469-9277 (361) 826-3105 RebeccaH re:cctexas.coin