CC Resolution No. 2195 - HOTGrantProcessRESOLUTION NO. 2195
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, ESTABLISHING A HOTEL OCCUPANCY TAX GRANT
PROGRAM; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
+++++++++++++++++++++++++++++++++++++++++++++++ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + ++
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby adopts the
Hotel Occupancy Tax Grant Program described in Exhibit "A" and incorporated herein for all
intents and purposes.
Section 2: This resolution shall take effect immediately from and after its passage by
the City Council of the City of Baytown.
INTRODUCED, READ and PASSED, by the affitmativ�/Gote of the City Council of the
City of Baytown this the 24' day of May, 2012. �'
APPROVED AS TO FORM:
AAgCIZ�Z, SR. 'ty Attorney
\Cob&01Veal\Ke \Pita\City CoumiWmolutions2012Way 24VOTGr WrN s.dm
Mayor
Exhibit "A"
City of Baytown
BAYTOWN
S
Hotel Occupancy Tax Grant Program:
Funding for the Arts, Historical Preservation, and Special Events
Promoting Tourism and the Convention and Hotel Industry
Explanation of the Hotel Occupancy Tax Grant Program
By the law of the State of Texas, the City of Baytown (City) collects a Hotel Occupancy Tax (HOT)
from all lodging facilities located within the City. The City then provides annual funding from a
portion of the revenue from the HOT fund to non - profit corporations whose programs,
activities, or special events qualify, and the entity turns in a complete application along with all
required attachments by the annual due date. In addition, an entity's programs, activities or
special events must fit into one or more of the categories as outlined in Section 351.101 of the
Texas Tax Code to qualify for a portion of the annual HOT funding.
Please note that there are stringent requirements concerning the use of HOT funds. For more
information, please review the summary of Qualifying Categories below or find Section 351.101
of the Texas Tax Code in its entirety online at:
http: / /www.statutes.legis. state .tx.us /Docs/TX /htm/TX.351.htm.
Qualifying Categories
• Advertising, Solicitations and Promotions: advertising and conducting solicitations and
promotional programs to attract tourists and convention delegates or registrants to the
municipality or its vicinity;
• Promotion of the Arts: 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; and
• Historical Restoration and Preservation: historical restoration and preservation projects
or activities or advertising and conducting solicitation and promotional programs to
encourage tourists and convention delegates to visit preserved historic sites or
museums.
The City accepts applications from all non - profit corporations whose programs, activities and /or
events fit into one or more of the above qualifying categories. Each application will be
reviewed by the City Manager to determine eligibility and make recommendations to the City
Council for approval. The City Council will make the final decision on the requests. Those
entities approved will be required to sign an agreement with the City, which terms will include,
but not be limited to, the use of the HOT revenues, reporting requirements, and refunding
provisions.
1
Priority for Hotel Occupancy Tax Funds
Priority will be given to those entities and /or special events based on their ability to directly
promote tourism and the hotel industry in Baytown; in other words, the ability to generate
overnight visitors to the City (i.e., heads in beds). If an event will not generate any meaningful
hotel night activity, it is not eligible for receipt of HOT funds. Entities must provide
documentation proving the ability to generate overnight visitors through its application and the
required marketing plan; however, an entity is also urged to provide documentation of a room
block that has been reserved at area hotels to accommodate anticipated overnight guests, or
provide historic information on the number of room nights used during previous years of the
same event or program.
All recipients of NOT funds will be required to submit a post -event report and analysis within 60
days after an event or program cycle, which documents the expenditure of the HOT funds and
verifies the direct promotion of Baytown tourism and the hotel industry. The tourism office will
provide this form when funding is dispersed. Sample post -event reports are available on the
website.
Application Information Required
Each application shall include at a minimum the following information:
• Information about the organization, including mailing address, phone numbers, primary
contact's name and address, secondary contact's name and address, website address,
incorporation date, EIN #, budget total, and the purpose or mission;
• Information concerning the proposed event or program, including the name of the
event or program, the time, date and place of the event or program, the purpose of the
event or program, expected attendance at the event or program, and number of years
the event or program has been held;
• Information concerning the funding request, including the amount of the request, the
percentage of total costs to be funded by HOT revenues, details regarding how the
funds will be used, categorization of funding request based upon Section 351.101 of the
Texas Tax Code, amounts funded from other organizations, grants or governmental
entities, the number of years the organization has received HOT revenues, amounts
previously funded with HOT revenues, and attendance data of past events or programs;
and
• Information regarding the projected promotions and tourism benefits, including
expected number of hotel rooms to be utilized, expected number of nights hotels will be
utilized for the event, the media outlets proposed, and the geographic area covered by
the media promotions funded with HOT revenues.
2
Supplemental information Required with Each Application
Along with each application, please submit the following:
• Proposed marketing plan for the event, activity, or program for which funds are being
requested;
• Schedule of activities or events relating to the project or program, if applicable;
• Current budget for the event, activity, or program for which funds are being requested,
identifying all items for which the organization expects the HOT funding to pay; and
• Documentation demonstrating the potential to generate overnight guests (for
examples, see discussion above).
Selection Process
Funding will be determined based upon the information submitted and how each event or
program satisfies the purposes for which the HOT tax is levied. The process will commence
prior to the fiscal year for which HOT revenues are requested and will entail annually the
following:
• Application Deadline;
• Review and Selection of Qualified Organizations by City Staff;
• City Council Decisions;
• Decision notification by Tourism Office;
• Contract Execution;
• Disbursement of Funds; and
• Post Event Report and Analysis.
The amount of funding, if any, awarded to an organization will be determined at the sole
discretion of the City Council.
3