Loading...
HomeMy WebLinkAboutC2009-314 - 7/28/2009 - ApprovedPage 1 of 2 AGREEMENT BETWEEN THE CITY qF CgRPUS CHRISTI AND SgUTH TEXAS BgTANICAL GARDENS & NATURE CENTER ~"RECIPIENT"~ (HOTEL OCCUPANCY TAX REVENUE RECIPIENT AGREEMENT) The State of Texas County of Nueces KNgW ALL BY THESE PRESENTS: This Hotel gccupancy Tax Revenue Recipient Agreement ~"Agreement"} is made and entered into 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 ~"Gity Manager"}, and South Texas Botanical Gardens & Nature Center, 8545 S. Staples, Corpus Christi, Texas 78413 ~"Recipient"}, a Texas non-profit corporation, qualified as a 501 ~c}~3} organization under 26 U.S.C. Section 501 ~c}~3}. Whereas, the Gity has allocated 2D 000.00 in Hotel occupancy Tax revenue ~"Grant funds"} to enable Recipient to perform those activities described in Exhibit "A" ~"Activities"}, a copy of which is attached to this Agreement and incorporated by reference; Whereas Recipient desires to provide these activities that promote tourism and the convention and hotel industry within the City of Corpus Ghristi, as the sole or contributory producer of the activities described in Exhibit "A" ~f`Activities"}; Whereas, City has determined that there exists a genuine need for Recipient's Activities in the City of Corpus Christi and wishes to encourage the production of Recipient's Activities through the funding of these Activities; Naw, therefore, City and Recipient agree as follows: I. Purpose. The City desires to expend funds from the City's Hotel gccupancy Tax Revenue to fund activities produced by non-profit, community-oriented organizations, specifically those programs that promote the arts andlor those programs which also promote tourism and the convention and hotel industry within the City of Corpus Christi. II. Term. This agreement commences on the 1st day of August, 2009 and terminates on the 31 day of July, 2010. III. City's Duties. City agrees to pay Recipient $20,000.00 on a reimbursement basis, out of revenue from the City of Corpus Christi's Hotel gccupancy Tax fund for use in accordance with Section IV below. In no event will City be liable for an amount in excess of this grant amount. City will reimburse Recipient upon City's receipt and review of Recipient's request for reimbursement. 2009-314 Grd. 028252 o~~Zglo9 50, Tx, Botanical Gardens :nts12~o9 Hotel Tax Recipient Agmt-Botanical Gardens.doc INDEXED Page 2 of 11 IV. Recipient's Duties. Inconsideration for receipt of Grant funds on a reimbursement basis, Recipient agrees to perform those activities described in the attached and incorporated Exhibit "A". This performance shall include those activities that are eligible for funding under Section 351.101 ~a} of the Texas Tax Code and those activities that are ineligible for funding under that section of the Texas Tax Code but are inherent in and essential to the successful production of Recipient's Activities. Recipient shall submit requests for reimbursement on a quarterly basis to Budget Director. V. Eligible Activities. Use of grant funds by Recipient is limited to those activities that, without exception, meet all three of the following requirements: ~A}the activities are described in the attached and incorporated Exhibit "A". (B) the activities are in the categories that are eligible for funding as described in Section 351.101(a)(3) and (4) of the Texas Tax Code, copy attached as "Exhibit B". (C) the activities promote both tourism and the convention and hotel industry within the City of Corpus Christi. VI. 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 maybe accomplished by working to increase the number of out-of town program attendees through target promotion and by working with the local Hotel-Motel and Condominium Associations. VII. Completion Report. Recipient must submit to the City's Director of Management and Budget ~"Director"} a completion report ~"Report"}, no later than thirty X30}days following the termination of this Agreement. The Director, or his designee, shall review this Report to verify whether the Grant funding provided to Recipientwas spent in accordance with the requirements in this Agreement. The Report must include the following criteria: ~A} V1lritten assurance to City that all Activities funded by the City served to promote tourism to the community. This shall be evidenced by providing the City with a written description of Recipient's marketing or advertising strategy. ~B} For all Activities funded by the City, Recipient must submit to the City a written estimate of the number of Recipient's Activities attendees that reside outside the territorial limits of the Gity 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 Activities attendance. (D) A statement of Recipient's Activities revenues and expenditures. H:ILEG-D1RIJeannielLisalHOT Agreements12a09 Hotel Tax Recipient Agmt-Botanical Gardens.doc Page 3 of 1~ VIII. Records Retention. Recipient must at all times during the term of this Agreement, and for three years following the expiration of the Agreement, keep true, accurate, complete, and auditabie records. Recipient agrees to: (A) at least annually make periodic reports to the City of its expenditures from the Grant funds given under this agreement; and (B make records of these expenditures available for review to the City. 1X. Disbursement of Funds. 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 XV11,1isted below, and all Grant funds must be repaid to the City. X. Unexpended funds, Upon termination of this Agreement, Recipient must promptly refund to City any unexpended Grantfunds. XI. Advertising. Recipient must recognize the City of Corpus Christi as a contributor on all advertisements and publications regarding Recipient's Activities. Recipient must provide Directorwith a copy of all Recipient-sponsored advertising and promotion materials regarding its Activities. XII. Modifications and Waivers. No provision of this Agreement may be altered, changed, modified, or waived. XIII. Relationship between Parties. Nothing in this Agreement shall constitute a partnership, joint venture, or principal-agent relationship between the parties. XIV. Compliance with Laws. Recipient shall observe and obey all applicable laws, ordinances, regulations and rules of the Federal, State, Country and City governments. This Agreement is subject to applicable provisions of the City Charter and the City Code of Ordinances. XV. Non-discrimination. Recipient shall not discriminate, or permit discrimination against any person or group of persons, as to employment or in the provision of services, activities, and programs. Discrimination as it pertains to this section includes discrimination on the basis of race, religion, national origin, sex, disability, or age, or in any other manner that is prohibited by the laws of the United States or the State of Texas. Director retains the right to take action deemed necessary by Director to enforce this non-discrimination covenant. Violation of this provision will result in the immediate termination of this Agreement. XVI. Indemnity. To the extent allowed by Texas law, Recipient hereby fully agrees to indemnify and hold harmless the City of Corpus H:ILEG-DIR1JeannielLisalHOT Agreements12049 Hote{Tax Recipient Agmt-Botanical Gardens.doc Page 4 of 11 Christi, its officers, employees, representatives, licensees, and invitees ("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 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 /ndemnitees 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 will indemnify and hold harmless /ndemnitees where injury or damage results or arises out of the exercise or 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 /ndemnitees, and pay all costs and expenses related to such actions on account of liability, damage, loss, claims, demands, or actions, including attorney fees. xVli. Termina#ion. (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 XIV or XV of this agreement. ~2}The City may terminate this Agreement due to failure by the Recipien# to substantially perform the Activities described in Exhibit "A". Director has the sole discretion to make the determination that Grant funds were used for activities that did not~fall within the permitted applications of tax revenue under Section 351.141 ~a} of the Tax Code. The City may H:ILEG-DIRIJeannielLisalHOT Agreements12009 Hotel Tax Recipient Agmt-Botanical Gardens.doc Page 5 of 11 terminate the Agreement upon thirty X30}days written notice, specifying thatthe Director has determined that Grantfundswere used for purposes other than those allowed under Section 351,101 ~a} of the Tax Code, and require Recipient to reimburse the City all Grantfunds award. Should Recipient and Director agree on a modification to the activities specified in Exhibit "A" and execute a written modification in compliance with Section XII of this Agreement, the City will not terminate the Agreement due to Recipient's failure to adhere to the original, superseded contract terms. ~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 V 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 fourteen X14}days written notice, and require Recipient to reimburse the City all Grantfunds awarded. ~B} Recipient may terminate this Agreement without cause upon thirty X30}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. XVllf. 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. XiX. Force Majeure. With respect to any duties, obligations, or covenants (buf not including floe Completion Reporf required by Section ~/l!) to be performed, or consideration to be provided to either party during the term of this Agreement, the party so obligated shall, in no event, be liable for failure to perform when prevented from doing so by any cause beyond the reasonable control of that party including, without limitation: strike, lockout, breakdown, accident, order or regulation of any governmental authority, failure of supply, inability, by the exercise of reasonable diligence, to obtain supplies, parts or employees necessary to perform services, or because of war, natural disaster, or other emergency. The time when that duty, obligation, or covenant must be performed or consideration must be provided will be extended for a period of time equivalent to the decay due to the cause beyond the control of the party obligated. XX. Notices. All notices, demands, requests, or replies ~"communications"} provided for or permitted under this Agreement by either parley must be in writing and must be delivered by one of the following methods: ~1 }personal delivery; ~2}deposit with the United States Postal Service via certified or registered mail, return receipt requested, postage prepaid; ~3} prepaid telegram; ~4} deposit with an overnight express delivery H:IL~G-DIRIJeannielLisaIH4T Agreements120a9 Hote! Tax Recipient Agmt-Botanical Gardens.doc Page 6 of 11 service, for which service has been prepaid; or (5) fax transmittal. Notice deposited with the United States Postal Service in the manner described above will be deemed effective finro (2) business days after deposit with the United States Postal Service. Notice by telegram or overnight express delivery service in the manner described above will be deemed effective one (1) business day after transmission to the telegraph company or overnight express carrier. Notice by fax will be deemed received upon transmission with proof of delivery to the receiving party. All communications must be made to: If to City: City of Corpus Christi Budget Director P. O. Box 9277 Corpus Christi, TX 78469-9277 (361) 880-3461 If to Recipient: South Texas Botanical Gardens & Nature Center Attn: Executive Director 8545 S. Staples Corpus Christi, Texas 78413 Fax: 852-7875 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 thirty X30} days after Recipient's address has changed. XXI. 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 b said art ofi any of its rights as enumerated in this Agreement. No waiver of y p Y an covenant or condition or breach of any covenant or condition of this Agreement by Y either art at any time, express or implied, will be taken to constitute a waiver of any p Y subse uent breach of the covenant or condition. Notwithstanding any indulgence of q an breach by the Recipient of the provisions of this Agreement, it is expressly Y understood that the City may at any time avail itself of its remedies under this A reement, including the right to terminate the Agreement on account of breach or g default. XXII. Entire .This Agreement and all exhibits attached constitute the entire and sole tY . a reement between the parties regarding the subject matter described in this g A reement. No other written documents or oral representations will have anyforce or 9 effect on the subject matter of this Agreement. H:1LEG-DIRIJeannielLisalHOT Agreements120~9 Hotel Tax Recipient Agmt-Botanical Gardens.doc Page 7 of 1 ~ XXIII. 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. XXiV. Assignment. This Agreement may not be, in whole or in part, assigned or transferred directly or indirectly without prior written consent of City. Executed i duplicate, each of which will be considered an original, on the day of , 2DD9. ATTEST,~~~~~ CITY OF CORPUS CHRISTI Armando Chapa, City Secretary gel R. Escobar, City Manager APPROVED: ~" , 2009 ~ THV~:t~ .,.~,~,.~, AU J . ~..~ // ~ i Y Lisa A uilar ~~,~,~........~.,....«**•r~R ~e g SECR 1~1f Assistant City Attorney For City Attorney SOUTH TEXAS BOT NICAL GARDENS & NATURE CENTER BY: o Title: ~ STATE OF TEXAS COUNTY 4F NUECES his instrum ~ as ack o le ed bore me on , 2009, by as title of a South Texas Botanical Gardens & Nature Center, a Texas non-profit corporation, qualified as a 5D1 ~c}~3} organization under 26 U.S.C. Section 50~ ~c}~3}, on behalf of the corporation. `~ti111111rrrrr o ary Public, State of Texas Y~ ~~ANN~~ Ho~~aNa J,~r~~~iF ~~-N~ Printed Name Commission Expires !/~"D 4 ~ti*~1P~.. UB~rii °~' ''r Notary public, State Of Texas ' : ~ My Cammis5ior~ expires r,,r~;, ; F;, +'/~~~ Iln~ ~~.y November ~4, 2~D9 H:IL~G-QIRIJeannielLisalHOT Agreements120D9 Hotel Tax Recipient Agmt-Botanical Gardens.doc Page 8 of 1~ EXHlBITA Descri tion of Reci Tent's Activities H:1LBG-DIRIJeanniell_isa1H4T Agreements12009 Hotel Tax Recipient Agmt-Botanical Gardens.tloc South Tex BOTANICAL GARDE, MISSION STATEMENT: To advance the knowledge and appreciation of plants and the envirunmPnt, in relation to personal and community education, welt-being and saentiflc understanding. !t conserves, preserves, displays and interpret naflve and adapted flora and fauna of South Texas far resident and visitors. ~ee~:~of. S~it~iN.t~.~ +sca}^~r1 nra~' ~~ ~ ~~v.'V. ~~ 1: !. '~~.~a /~~L'. ~Y.1 ~ ~,~' • ^"+ ~ ~~ ~}, ~ 1'~ ;r:rtli }~ ~:v ~:~; ~t1i ~ i S` ~i ~I 1I' ~~ P~'sh r ti L ~ ~. ~' i ~. ~ \~' ?a ~1L ~ ~n fd ~ G p K ... is one of the region's five major visitor attractions and has become a leading South Texas nature tourism destination showcasing colorful, exotic floral exhibits blended with vast conserved areas of naflve habitat and natural wetlands. The 180-acre site is an integral part of the city's growing 4so Creek Greenbel# system, is a Texas Watcha,~e ~ldlife Program site, and is on the Great Texas Coasta! Girding Trail. It also is irecogn~ed as one of the key binding sites in Corpus Christi, which has been named the Br'rdiest Cry in the United States. Its success hoe made the Coastal Bend and South Texas a more attractive region for business development, tourismleconom~ growth and qual~y of li#e. Ilf a~or tiorai exhibits include the orchid House, Plumeria Garden with Viewing Ramp, Sensory Garden, Butterfly Garden, And Garden, Rose Garden with Rase Garden Pavilion, Water Garden, Hummingbird Garden and Earl Kind Demor~tnaflvn Trial Gardens, Under constnacflon is a Tree Demonstration Garden. A Native Plant Garden is in design stage. The 2000-plus orch~ collection recen#ly was " ~tured in Texas Highways magazine. ``walk on the wild Side" features the shaded Bird & Butterfly Trail, Binding Tower, Palapa Grande on Gator Lake, Wetlands Awareness Boardwalk plus the O~ Creek Loop Trail. The USDA's Nature! Resources Conservation 5enrrce, based in Washington, D.C,, recently honored the Gardens & Nature Center's $94,DOD Wetland Water Containment, Restoration & Boardwalk projecct at an award ceremony and media c~nnferenc~. NEW FEATURES GPENING IN 1008: The John Anderson Memorial Greenhouse and Bromeliad Exhib~ is scheduled to open by June 2009, featuring a 1,800 sq. foot, state-of-the-art greenhouse tv house Anderson's worid-renowned Aechmea bromeliad collection. A butterfly fl~ht cage Butterfly Housey is also slated to open in summer ZOD9 to complete our existing butterfly garden. The Botanical Gardens has a full calendar of horticukural and environmental educational classes and workshops for adult; Junior Master Gardeners and Wilderness Experience Kr'ds Camp; Project Learning Tree for teachers; plus the BIG BLOOM in April; MOONLIGHT IN THE GARDENS in October, and KRISTIE KRINGLE'S GARDEN SHOPPE OPEN HOUSE in early December. It..is affiliated witfr the Americ~r Associatiari of Public Gardens, American Hortr'cultura! So~ety ~naiiona! reciprocal gardens progaamj, ~'exas Trove! Industry Association, Texas Coastal Bend Regina! Tourism Council, Texas Tropicaal Trar7, Corpus Christi' Area Conven#~n ~ Visitors Bureau, Corpus Christi Chamber ofCommerce, Hospitality Sales ~ Madcebng Association; and partners with more than 10 other agencies and programs, Revenue: The 8o#anical Gar~ns & Nature Center is a 501 ~c~~3~ non-profs organizaflon. Revenue sources are personal and corporate memberships; admissions; grants and donaflons; Garden 5hoppe sales; fundraisers; ~lucaflon program fees, and $20,000 in hotel oa~pancy tax knew in 2DD7108~. The Botanical Gardens & Nature Center has received nearly $1.9 million in grants and donatrons of $9000 or more since opening its site in 199fi. The Botanical Gardens & Nature Center is loafed just 4.5 miles south of South Padre Island Dnve on South Staples ~FM 2444. It is open six days a week, from 9 a.rn. to 5 p.m. closed Mondays}. For more information, please call the Botanical Gardens ~ Nature Ater, 3fi1-852-2100. The Gardens ~ Nature Center has earned the Ca!!er Ttmes Best of the Best Readers' Choice award the ast seven ears! 8545 S. Staples St. ~ Corpus Christi, Texas 75413 ~ 361 /552-210o e Fax 3611852-7875 ~ www.stxbot.org F'OR EDUCATION AND ENVIRONMENTAL C~NSERVATiaN Page Two Application of Use of HOT Funds 1. How will funding requested enhance the promotion of tourism AND the convention and hofiel industry in Corpus Christi? The Museum of Hispanic Culture the Museum} is managed and sustained by the Instituto de Culture Hisp~nica de Corpus Christi the Instituto},anon-profit organization . • stered and directed by an all-volunteer ~ 0-member Board of Directors. Tl~e lr~stituto and its m.~rseum are housed in the Lichtenstein House at the Heritage Park located in the historical section of the city of Co us Christi. . ~ This museum ~s the only H~spamc museum m this area that showcases a rich mosaic of cult~ual samples from 19 different Hispanic countries and the United States. In addition to each coon 's . u'Y display case, the museum also displays many other permanent exhibits along with special exhibits, which are changed periodically. The Museum attracts many visitor' s from aut of town; out of state, and out of the country. Also, tour guides who know about the Museum bring out-of-town tours to visit our museum. Public schools and colleges bring their students for tours as well, thereby increasing public awareness of our museum. The Museum does not charge an entrance fee but donations are suggested in the amount of $3.ao per person with no donations fmm children. visitors are attracted not only by the Museum's permanent and special exhibits, but also b the series • y of continuous cultural programs organized by the Instituto involving local and out-of-town artists. Recent events include the book signing and reception for Teresa Palomo Acosta from Austin, author of Te anas• the reception honoring Joan Jones from Pharr and her collection of Retablos; the tan o g recital of piano, dance, and poetxy Tango, Borges-Piazxollc~ acrd More... by compositor Rene Casarsa from Houston and presented ax the TAMU-CC's Warren Theatre; the poetic recital ,Mujer: Homena'e . J a Delra Pro de I~Iu~oz, ninth guest artists coming from Brownsville, Laredo, and San Antonio. Since most of the visitors of the Museum and participants of our cultural programs aloe with man g Y of the public attendees are out-af-town, they use the city's hotel and motel facilities and, therefore, contribute to the local hotel industry. Honoring this funding request will allow continue fulfillment of the mission of the Instituto, to maintain and unprove the Museum, to expand and improve the quality of the series of cultural programs organized by the Instituto, to enhance the exposure of the ~nstituto and the Museum through better advertising and promotion to attract more out-of-town visi#ars an hence d, ,enhance tourism, all ofwhich will benefit the local hotel indus~y and the entire con unity of Co us Christi. rP r.~ •'i ~'. ~ _.. ~ ~ ~- View of Museum interior Museum of Hispanic Culture Homage to poet Delia Pro .. Application of Use of HC~1' Funds 2. Identify marketing strategies that wi11 be used to stimulate tourism conven i nand .. to hates actEV~#y. . Current marketing strategies used to attract visitors to the Museum of His 'c Culture and eneral . ~ g public attending cultural programs argaivzed by the Instituto de Culture His 'ca de Co Christi . pain rpus include the following: ^ Promotional brochure of~ our Museum attached hereto that is distributed for di la at the } sP Y reception areas of the Corpus Christi Visitors Center and ci hotels and motels. tY ^ Planning and delivery of special museum exhibits d i ' the richness of the His ' c culture. ~ ~ P~ organizing cultural programs that focus on particular cultural areas such as music and P~`~Y~ dance, which permit the choreography of colorful events attractive to the ublic. P ^ Publications with the Corpus Christi Caller-Times announcin museum's sal exhibits and S ~ upcoming cultural programs o by the Instituto. ^ Special exhibits and upcoming cultural pro are also ublicized throu . , ~ p gh local television and radio stations. Program c ns do personal interviews on television to mote our programs and increase the attendance. Invitations to all of our events are also distributed throw . gh regular mail. ^ Docents (volunteers} of the museum play an important ambassadorial role 'vin visitors a ~ g personal~i glimpse of the Hispanic cultural fabnc immersed in the communi of Co us • . ~ rp Chnsti. ^ World-wide dispersion of informmation about the Museum of Culture 'ca in Co us Christi ~P~ rP through our Website htr :llw.culturahis anicaco uschristi.ar .Information rovided throw • p gh this website includes history of the Instituto, location of the muse some of the ent ~, penman and special exhibits, program of activities, and countries resented. mP Requested funds will be used #a enhance the current marketin strafe ies to increase vur visibi ' .. g g lity and further attract out-of-town visitor and stimulate tourism and hotel acdvi . Enh~ancemen ' . ty is will be developed ui the following areas: ^ Tv redesign our promotional brochure withstate-of-the-art hies to increase i#s visibil' ~P sty. ^ To expand the distribution of our promotional brochure to wall hotels in Texas cries . q tY such as San Antonio, Houston, Dallas, and Aus~i, as well as ~ other 1 e cities of nei bon states. erg gh ^ To increase the number and quality of sal museum exhibits. ^ Ta increase the number of quality cultural programs in the areas of music poetry, ,and dance. ^ To upgrade the Instituto's Website to make it mare attructive and more informative and en ' . .. .. Lice more public to visit Corpus Chnsti and our museum. To advertise the existence and the objective of the Museum in well-recd Tex ' gaited as publica~ons with bread circulation, such as Texas Monthly, Texas Highwa s, and Austin Chronicle. Y Page Th ree Appiication of Use of HST Funds 3. What is the market area, outside of the Coastal Bend, that is targeted by these strategies? The market area targeted by our current and projected marketin strafe 'es is broad. While me of ' • ~ • • . our efforts focus on attracting v~s~tors from large cities m Texas and nei ~ bar states throw the . ~ ~- distnbution of a redesigned attractive brochure, other efforts such as the advertisin in well- . ~ recognized Texas pubtica~ons and the upgrading of the tnstituto's ~ebsite focus in areas be ond. .. y We expect to attract a larger amount of visitors of all ethnic back ands an in cular vi hors ~ ~ p s from the rapidly expanding Hispanic population. Page 9 of 11 EXHIBIT B Texas Tax Code § 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 ~7} subject to Section 351.1076, the promotion of tourism by the enhancement and upgrading of existing sports facilities or fields, including facilities or fields for baseball, softball, soccer, and flag football, if: ~A} the municipality owns the facilities or fields; ~B} the municipality: ~i} has a population of 80,000 or more and is located in a county that has a population of 350,000 or less; or iii} has a population of at least 65,040 but not more than 70,000 and is located in a county that has a population of 155,000 or less; and ~C} the sports facilities and fields have been used, in the preceding calendar year, a combined total of more than 10 times for district, state, regional, o~ national sports tournaments. H:ILEG-DIRIJeannielLisaIHOT Agreements120~9 Hotel Tax Recipient Agmt-Botanical Gardens.doc Page 10 of 11 (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 persan, 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 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. fie} 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 maybe used may not exceed the portion of those administrative costs actually incurred in conducting the authorized activities. (fl 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. H:ILEG-DIR1JeannielLisalHoT Agreements12009 Hotel Tax Recipient Agmt-Botanical Gardens.doc Page 11 of 11 (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. Added by Acts 1987, 70th Leg., ch. 191, § 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 2, § 14.24~a}, eff. Aug. 28,1989; Acts 1989, 71st Leg., ch. 1110, § 4, eff. ~ct.1,1989; Acts 1993, 73rd Leg., ch. 680, § 3, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 1027, § 1, eff. Aug. 28,1995; Acts 2001, 77th Leg., ch.155, § 1, eff. June 13, 2001; Acts 2001, 77th Leg., ch. 1308, § 3, eff. June 16, 2001; Acts 2003, 78th Leg., ch. 209, § 90, eff. Oct. 1, 2003; Acts 2003, 78th Leg., ch. 303, § 1, eff. June 18, 2003; Acts 2005, 79th Leg., ch. 1247, § 1, eff. June 18, 2005. H:ILEG-DIRIJeannielLisalHOT Agreements12409 Hotel Tax Recipient Agmt-Botanical Gardens.doc