HomeMy WebLinkAboutC2009-318 - 7/28/2009 - ApprovedPage 1 of 11
AGREEMENT BETWEEN THE CITY aF CGRPUS CHRISTI AND
Art Center of Corpus Christi ~"RECIPIENT"y
~HGTEL GCCUPANCY TAX REVENUE
RECIPIENT AGREEMENT}
The State of Texas
KNOW ALL BY THESE PRESENTS:
County of Nueces
This Hotel Occupancy 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
~"City Manager"}, and Art Center of Corpus Christi ~"Recipient"}, a Texas non-profit
corporation, qualified as a 501 ~c}~3}organization under 26 U.S.C. Section 501 ~c}~3}.
Whereas, the City has allocated 30 OD0.00 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, City desires to encourage and fund activities that promote the arts and in
doing so serve to promote tourism and the convention and hotel industry within the City
of Carpus Christi, in accordance with Chapter 351 of the Texas Tax Code;
Whereas Recipient desires to provide those activities that promote the arts, and in
doing so serve to promote tourism and the convention and hatel industry within the City
of Corpus Christi, as the sole or contributory producer of the activities described in
Exhibit "A" ~"Activities"};
Whereas, City has determined that there exists a genuine need for Recipient's Arks
program in the City of Corpus Christi and wishes to encourage the production of
Recipient's Arts Program through the funding of these Activities;
Now, therefore, City and .Recipient agree as follows:
I. Purpose. The City desires to expend funds from the City's Hotel Occupancy Tax
Revenue to fund activities produced by nonprofit, community-oriented organizations,
specifically those programs that pramote the arts and in doing so also promote tourism
and the convention and hotel industry within the City of Corpus Christi.
II. Term. This agreement commences on the August 1, 2009 and terminates on the
July 31, 2010.
III. City's Duties. City agrees tv pay Recipient $30,000.00 out of revenue from the
City of Corpus Christi's Hotel Occupancy 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.
2009-318
Urd. 028252
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Art Center of CC
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IV. Recipient's Duties. inconsideration for receipt of Grant funds, 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}~4} of the Texas Tax Code and those activities that are ineligible forfunding
under that section of the Texas Tax Code but are inherent in and essential to the
successful production of Recipient's Activities.
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 of art 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 Ac#ivities. This may be 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 Recipient was spent in
accordance with the requirements in this Agreement. The Report must include the
following criteria:
~A} Written assurance to City that al! Activities funded by the City served to
promote the arts in the community. This shall be evidenced by providing the City
with a written description of Recipient's marketing or advertising strategy.
~B} For all Activities funded by the City, Recipient must submit to the City a
written estimate of the number of Recipient's Arts program attendees that reside
outside the territorial limits of the City~of Corpus Christi. This may be
accomplished by the use of a visitor log, by tallying the number of out-of-town
billings or by listing the out-of-town mailing addresses gathered through the ticket
sales process.
(C) An estimate of the total Arts Program attendance.
(D) A statement of Recipient's Arts Program revenues and expenditures.
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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 auditable 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 recards of these expenditures available for review to the City.
IX. 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 XVII, listed 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 Grant funds.
XI. Advertising. Recipient must recognize the City of Corpus Christi as a contributor
on all advertisements and publications regarding Recipient's Arts Program. Recipient
must provide Directorwith a copy of all Recipient-sponsored advertising and promotion
materials regarding its Activities.
XII. lVlodificationssnd 1Naivers. 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 Grdinances.
XV. Non-discrimination. Recipient shall not discriminate, or permit discrimination
a ainst an erson or rou of persons, as to employment or in the provision of
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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
an other manner that is prohibited by the laws of the United States or the State of
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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.
X~II~ lndemnit . T,o tie extent allowed by Texas law, Recipient hereby
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full a tees to r'ndemnif and hold ~arrnless the City of Corpus
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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 /ndemnitees 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 /ndemnitees 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 lndemnifees. 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 re/afed fo such actions on account of liability, damage,
loss, claims, demands, or actions, including attorney fees.
XVII. Termination.
(A) The City may terminate this Agreement for any of the following reasons:
~1}The City may immediately terminate the Agreement due to any
violation by Recipient of section Xl1~ or XV of this agreement.
~2}The City may terminate this Agreement due to failure by the Recipient
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 351.1o1~a} of the Tax Code. The City may
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terminate the Agreement upon thirty X30} days written notice, specifying
that the Director has determined that Grantfunds were used for purposes
other than those allowed under Section 351.101~a} of the Tax Code, and
require Recipient to reimburse the City all Grant funds award. Should
Recipient and Director agree on a modification to the activities specified
in Exhibit "A"and execute a written modification in compliance with
Section Xll 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.
XVlli. 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 ofthis 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.
Xtx. Force Majeure. with respect to any duties, obligations, or covenants (but not
including the Completion Report required by Section Ull) 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 ar regulation of ar~y 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, yr other emergency. The time when that duty, obligation, or covenant must be
performed or consideration must be provided will be extended far a period of time
equivalent to the delay 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 party must be in writing and must be
delivered by one of the following methods: ~1 }personal delivery; ~2}deposit with the
United estates Postal Service via certified or registered mail, return receipt requested,
postage prepaid; ~3}prepaid telegram; ~4} deposit with an overnight express delivery
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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 two ~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
Director, Parks & Recreation
P. o. Box 927
Corpus Christi, TX 18469-9217
X361 } 880-3461
If to Recipient:
Art Center of Corpus Christi
~ 00 Shoreline Drive
Coraus Christi, Texas 1840
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 430}
days after Recipient's address has changed.
xxl. Waivers. The failure of either party to complain of any act or omission on the part
of the other party, no matter how long the same may continue, will not be deemed a
waiver by said party of any of its rights as enumerated in this Agreement. No waiver of
any covenant or condition or breach of any covenant or condition of this Agreement by
either art at any time, express or implied, will be taken to constitute a waiver of any
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subsequent breach of the covenant or condition. Notwithstanding any indulgence of
any breach by the Recipient of the provisions of this Agreement, it is expressly
understood that the City may at any time avail itself of its remedies under this
Agreement, including the right to terminate the Agreement on account of breach or
default.
xxll. Entirety. This Agreement and all exhibits attached constitute the entire and sale
agreement between the parties regarding the subject matter described in this
Agreement. No other written documents or oral representations will have any force or
effect an the subject matter of this Agreement.
xxlll. 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.
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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 in duplicate, each of which will be considered an original, on the day
of , 2009.
ATTEST: CITY F CORPUS CHRISTI
Armando Chapa, City S retary g R. Escobar, City Manager
APPROVED: ~J ~ 8 , 2009
a .~ri
Lisa Aguila
Assistant City Attorney
For City Attorney
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S~CRFTARY
FOR IPIEN
President
STATE of TEXAS
COUNTY of NUECES
T is instru nt was acknowledged before me on ~P_I~t'YI~Ot~I'~ ~~ , 2009, by
~i, ,President, Art Center of Corpu Christi, a Texas non-profit
corporation, qualified as a 501(c)(3) organization under 26 U.S.C. Section 501(c)(3), on
b alf of the cor ation.
otary ublic, State exas
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Printed Na e
Commission Expires ~ ~ ~ • 2O1
'`~"'"''~~ ASHLEY L. DUGG~R
Notary pu~iic '
State 4f Texas
,~`''~~~-„i~,u~~~~`, My Camm~ssin~ expires act, 8, ~~t~
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EXHIBITA
Description of Recipient's Activities
H:IL~G-D1R1JeannielLisalHOT Agreements120a9 Hotel Tax Recipient Agmt-Art Center.doc
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RT o00
CEN~TE ~ ~
OF CORPUS CHR S 00 SHORELINE DR VE, CORPUS CHRISTI, TEXAS 7840 t 36 84 06
March ~o Zoo9
Eddie Houlihan ~ ~ o
Assistant Budget Director ~ ~ ~
City of Corpus Christi ~ ~
P ~ Box 92?7
~ ~. ~
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Corpus Christi, TX 78469-9277 ~ ~"
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.
Dear Mr. Houlihan: ~ ,.,~
,~ °
m
Enclosed is a grant application packet submitted on behalf of The Art Center ~of Corpus
Christi, Inc. We are very grateful for the city's past support: and hope you will continue our
current level of assistance of $3Q,040 for the next fiscal year.
Please consider these factors when considering our request:
It is estimated that as many as one hundred and f fty thousand individuals annually tour The
Art Center. Tourists from all over the country and Europe recognize The Art Center is a great
attraction. V~inter Texans return year after year to participate in our classes and workshops
while they are in town. ~flne has been coming for 19 years and is responsible for encouraging
other Winter Texans to come to our area.}
Art Center membership continues to grow every month and we are now serving over 800
artist members and fourteen local art organizations. Education programs are expanding,
f lling niches and unmet needs throughout the community. We are proud to host bus loads of
children from surrounding areas and eager to introduce them to the art scene, because we
believe even if they do not go vn to an art related career, learning to see beyond the surface of
things as artists do, will make them better engineers, doctors, lawyers, or whatever profession
they eventually gravitate tv. ~n the other end of the age spectrum, we do a lot for senior
citizens in our area, many of whom say, "I've always wanted to try my hand at something
creative, but was `too busy earning a living', or `raising a family.' " .
The Art Center continues to maintain and improve this important city asset. We successfully
raised $744,000 for improvements in 1994; $3,640,000 in 2003; and have just crossed the
finish line of a two year fund raising undertaking whereby we raised $303.,600 for expanding
our Clay Studio, replacing two aging air conditioners & rerouting our duct system in an effort
to reduce our utility bills, purchasing a new gas kiln for the clay studio and needed computer
equipment, as well as providing additional funds to help our curriculum development
program.
QPEAATEC BY THE ART COMMUNITY CENTEA 0~ CORPt15 CHAt5Tt, INC , A NDN•IaRQF1T OAGANIZATiQN
No other facility in the Coastal Bend has embraced The Art Center's mission of supporting
and encouraging local artists while enriching the creative life of our community while at the
same time providing a great attraction for tourists--with no entrance fee charged. The center
is open to everyone.
we are acutely awaxe of the fact, clue to die cluwrituri~ ;~~ ll~e ec;u~~u~~~y, il~C ~;ty a~ wCll ds
everyone else, is going to be facing some tough budget decisions this coming year.
Foundations will have less to donate, and as the mayor of Philadelphia notes in the attached
clipping from a recent Caller-Times, when the budget ax swings arts and cultural
organizations are the first to go. But the Philadelphia mayor believes, as I hope you and our
council will, "arts are key to generating revenue and strengthening the community." x hope
you will take time to read the whole article because l could not say it better myself.
In addition to being an art center, we consider ourselves almost a second tourist bureau.
People can frequently be found at the front desk where a map is spread out and a volunteer or
staff person is saying, "You're here and you want to go here." Our people have been known
to go out of their way to transport visitors to other places of interest they are wishing to visit.
.. even so far as taking one couple across the bridge to the Aquarium. By the way, as a result
of that act of kindness, we received a letter from that out of state couple touting the great
courtesy of the people in Corpus Christi and enclosing a donation for The Art Center.
It has long been known that new businesses considering locating in Corpus Christi check out
the cultural life available here. It is a critical consideration for executives and their families as
they contemplate locating anywhere, and we feel, in Corpus Christi, The Art Center is
playing a big role in that regard.
Our budget for ?,009 remains approximately the same as.that of 2008. This is going to be very
dii~icult in light of the fact we lost two months revenue from the restaurant while there was a
change in operators, and also in light of the fact that staff has not had a raise in four years.
V~e're committed to keeping the doors open, but do sincerely need the city' s continuing
support at the current level.
Thank you for giving all of this consideration. if further information would be helpful, please
contact me: 8$4-6406 or 992.6531.
Sincerely, . ~~ ,
. r s
Dorothy Kucera, Janie ~loskins, Bob Baker
Director of Development President, Governing Bd. Director
1. How wili funding the Art Center enhance, the promotion of tourism
and benefit the convenfion and hotel industry in Corpus Christi ?
The City of Corpus Christi's support is vital to the Art Center's ability to
continue to address the interests of the area's creative people, to be a cultural
venue attractive to visitors, and to increase its current advertising and
marketing programs. We are one of the few free downtown tourist
des#inatians tha# offer a multi layered experience. We offer mui~ple galier~es
of art viewing, a popular mid-day restaurant and a unique Art and Gift
GallerylShop that carries only member~made art, jewelry and ceramics. It is
impossible to look at any page in our guest book and not find folks who are
from outside of Corpus Christi.
Cur facility hosts a great number of weddings andlor receptions has well as
parties and meetings. Cut of town guests regularly participate in these and
often stay in our hotels and ea# in our restaurants.
The Art Center is a valuable addition to the activities, sight, sounds and
experiences that become park of a visitor's memories of Corpus Christi.
Description of all services provided during the present fiscal year.
The Art Center is a busy place every day of the week -except Mondays when we are closed. We
have a regular weekly schedule of studio opportunities that includes ail Painting Patio Gallery on
Tuesdays and Thursdays, open Painting Main Workshops on Tuesday, with teacher, and Thursdays," vn
your awns. Wednesday Portrait Group meets in the Main Workshop. Collage Class meets on Saturdays.
Drawing Class meets on Fridays. Clay classes meet on Thursdays and Saturdays for adul#s and every
other Saturday fvr youth. We have started a Saturday class for pre-school kids. Summer, 2049, will see
us offering 7 weeks of ART CAMP for ages seven to fourteen. In the area of community outreach, 2008,
we worked with the city library system display the Big Read art entries. We displayed Carroll High
School's unique Breast Cancer Awareness Art Project artwork. We hosted the City Festival of the Arts in
collaboration with the City of Corpus Christi Arts and Cultural Commission. We hosted the exhibit of
CCI5D's State of the Arts by~high school and middle school students. fur Gift Gallery organised the first
themed art show and sale called "Sellabrate Carpus Christi. We hosted the Sister Cities Art Show as
part of a city wide international student art contest.
We developed and hosted SUPER B~WI.S FAR CHARITY in collaboration with Metro Ministries
and the Downtown Management District. We hosted Bob Burridge, a California artist, in a dive day
acrylic workshop and had several 3 day workshops led by our own artists. In February we hosted Texas
State Artist, Dalhart Windberg for a three day oil painting workshop.
The exhibits in our main galleries change monthly. Art shows also hang in our Hall Gallery and
the multi purpose Courtyard Gallery. Regular change of our exhibits gives our members and the public
reason to visit often.
The Art Center is an attractive and distinctive location for weddings, parties, meetings and other
public events. We offer space for groups as small as 10 and as large as 500. We provide inexpensive
meeting space to other non-profits and service groups.
We are a lunch destination fvr many folks who work in the downtown area. Our new
restaurant, Desiree's, by the Bay, also brings groups from across the city into the downtown as they
meet for luncheons at the restaurant. A Sunday brunch attracts the after church crowd. Dur restaurant
is a happening place!
In the year ahead, we intend to continue all the things we are currently involved with. We have
a goal of increasing the education and outreach part of our mission. A new staff position of Program
Coordinator will focus on growth opportunities for our artists and members and new art experiences for
our youth and the community. We hope to continue to draw in out of town visitors with workshops by
popular and dynamic teachers. We are still a young and developing addition to the bayfront of Corpus
Christi. We shall continue to str'Ne to be seen as an asset the city and tv the people we serve.
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 forthe
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
~?} subject to Section 351.1016, 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 orfieids;
~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 65,000 but
not more than 10,000 and is located in a county that has a
populatian 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, or national sports tournaments.
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(b) Revenue derived from the tax authorized by this chapter shall be expended in a
manner directly enhancing and promoting tourism and the convention and hotel industry
as permitted by Subsection (a). That revenue may not be used for the general
revenue purposes or general governmental operations of a municipality.
~c} The governing body of a municipality by contract may delegate to a person,
including another governmental entity or a private organization, the management or
supervision of programs and activities funded with revenue from the tax authorized by
this chapter. The governing body in writing shall approve in advance the annual budget
of the person to which it delegates those functions and shall require the person to make
periodic reports to the governing body at least quarterly listing the expenditures made
by the person with revenue from the tax authorized by this chapter. The person must
maintain revenue provided from the tax authorized by this chapter in a separate account
established for that purpose and may not commingle that revenue with any other
money. The municipality may not delegate to any person the management or
supervision of its convention and visitors programs and activities funded with revenue
from the tax authorized by this chapter other than by contract as provided by this
subsection. The approval by the governing body of the municipality of the annual
budget of the person to whom the governing body delegates those functions creates a
fiduciary duty in the person with respect to the revenue provided by the tax authorized
by this chapter.
~d} A person with whom a municipality contracts under this section to conduct an
activity authorized 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 yr 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 casts of the entity for which hotel occupancy tax revenue may be
used may not exceed the portion of those administrative costs actually incurred in
conducting the authorized activities.
~f} Municipal hotel occupancy tax revenue may not be spent for travel for a person to
attend an event or conduct an activity the primary purpose of which is not directly
related to the promotion of tourism and the convention and hotel industry or the
performance of the person's job in an efficient and professional manner.
H:ILEG-D1R1JeannielLisalHoT Agreements12009 Hotel Tax Recipient Agmt- Art Center.~oc
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, l1 st Leg., ch. 1110, §
4, eff. act. 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, l7th Leg., ch. 755, § 1, eff.
June 13, 2001; Acts 2001, 77th Leg., ch. 1308, § 3, eff. June 16, 2001; Acts 2003,
l8th Leg., ch. 209, § 90, eff. act. 1, 2003; Acts 2D03, 78th Leg., ch. 303, § 1, eff. June
18, 20D3; Acts 2005, 79th Leg., ch. 1247, § 1, eff. June 18, 2005.
N~1l.EG-~iRlJeannielLisalHQT Agreements12DD9 Flotel Tax Recipient Agm#- Art Center.doc