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A RESOLUTION OF THE CITY OF DENTON, TEXAS, SUPPORTING HOUSE BILL 2445
RELATED TO THE ALLOCATION OF HOTEL OCCUPANCY TAX FUNDS FOR THE
PURPOSE OF ENHANCING AND UPGRADING EXISTING CITY -OWNED SPORTS
FACILITIES; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Parks and Recreation Department has requested the City of Denton seek
introduction and passage of legislation that would amend Tax Code Sec. 351.101 (a)7 by adding
the City of Denton to the list of municipalities authorized to utilize Hotel Occupancy Tax (HOT)
funds for enhancement and upgrading of city -owned and existing sports facilities or fields, which
provide significant economic benefit to the community; and
WHEREAS, the purpose of HOT funds is to "promote tourism and the convention and
hotel industry"; and
WHEREAS, the athletic tournaments hosted by the City of Denton Parks and Recreation
Department generate revenue for the City's General Fund, the Recreation Fund, and co-sponsored
associations; and
WHEREAS, the tournaments to -date in 2016 alone provided an estimated economic impact
to local businesses, such as hotels, restaurants, and retailers, of more than $1,005,150; and
WHEREAS, the tournaments have generated more than 800 room nights for Denton hotels
and brought in an estimated 28,083 spectators; and
WHEREAS, for calendar year 2017 the number of available tournament weekends has
been reduced from 30 to 13 due to the lack of funds to provide adequate enhancements and
upgrades to the fields; and
WHEREAS, hosting tournaments has become more competitive as cities build and upgrade
their facilities to enhance the experience and meet standards of tournament coordinators and teams;
and
WHEREAS, the proposed legislative initiative would allow the City Council an innovative
funding mechanism to allocate existing HOT funds to the enhancement of Parks and Recreation
existing sports facilities or fields in order to continue hosting, at previous levels, the athletic
tournaments that have supported the local tourism industry and had such a positive economic
impact on the community; and
WHEREAS, the proposed legislative initiative would provide the City Council the
statutory authority to allocate HOT funds to the enhancement of existing City -owned sports
facilities or fields for the specific purpose of hosting athletic tournaments; and
WHEREAS, enhancements and upgrades to existing facilities may include, but are not
limited to fencing, lighting, infield mix, Wi-Fi at the Sports Complexes, soccer goals, scoreboards,
s:\Iegal\our documents\resolutions\l 7\hot fund resolution (201 7).docx
restroom upgrades, bleachers, shade structures, PA Equipment, batting cages, and/or pitching
cages; and
WHEREAS, there is a precedent of municipalities gaining statutory authority to access
HOT funds for the purposes stated herein, with ten (10) cities already authorized to allocated HOT
funds under the Tax Code; and
WHEREAS, Representative Lynn Stucky, District 64, has filed House Bill 2445, relating
to the use of municipal hotel occupancy tax revenue in certain municipalities; NOW, THERFORE,
THE COUNCIL OF THE CITY OF DENTON HERBY RESOLVES:
SECTION 1. That the Denton City Council supports passage of House Bill 2445 as filed.
SECTION 2. That the Mayor and City Council, City Manager, or their designees shall
communicate the City's support of HB 2445 to members of the Texas Legislature by providing
testimony, letters, and other appropriate communications.
PASSED AND APPROVED this the —�i—
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
B Y:
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11, 1 1 116 M- not
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