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Home My WebLink About24-1315 INCOMPLETEORDINANCE NO. 24- 1315 AN ORDINANCE OF THE CITY COUNCIL OF DENTON, TEXAS, MAK[NG FINDINGS TFLAT THE PROPOSED SERVICE PLAN AND ITS PROPOSED PUBLIC IMPROVEMENTS WILL PROMOTE THE INTERESTS OF THE CITY AND CONFER A SPECIAL BENEFIT ON A DEFINABLE PART OF THE CITY; AUTHORIZING A CONTRACT FOR THE MANAGEMENT OF THE DISTRICT AND THE EXECUTION OF THE SERVICE PLAN; AUTHORIZING AN ASSESSMENT METHOD AND ROLL; AUTHORIZING A SPECIAL ASSESSMENT OF THE DENTON TOURISM PUBLIC IMPROVEMENT DISTRICT; AND PROViDING AN EFFECTIVE DATE. WHEREAS, the governing body (the "City Council") of the City of Denton, Texas (the "City"), is authorized by Chapter 372, Texas Local Government Code, as amended (the " Act"), to create public improvement districts within the corporate limits and extratenitorial jurisdiction of the City and WHEREAS, in 2018, local hoteliers approached the City regarding the creation of a Tourism Public Improvement District (the “District”) and on October 24, 2018 the City Council provided direction to proceed with the inclusion of a request for the District in the City’s 2019 Legislative Program; and WHEREAS, during the November 14, 2023 Work Session, the City Council provided direction to proceed with the creation of the district; and WHEREAS, on June 18, 2024, by Resolution No. 24-1107, the City Council, after holding the required public hearing pursuant to the Act, created the Denton Tourism Public Improvement District (the “District”); and WHEREAS, on or before July 6, 2024, the City Secretary caused notice of a public hearing to consider the authorization of a contract for the management of the District, the adoption of a Service and Assessment Plan and Assessment Roll, and the imposition of an assessment (the “Public Hearing“) to be published in a newspaper of general circulation in the area where the proposed District is located; and WHEREAS, on or before July 6, 2024, the City Secretary caused notice of the Public Hearing, addressed to "Property Owner," to be mailed to the current address (as reflected on the tax rolls) of owners of property subject to assessment under the proposed District; and WHEREAS, the City Council has investigated and determined that the published and mailed notices of the Public Hearing complied with the Act and were published and mailed before the 10th day before the date of the Public Hearing as required by the Act; and WHEREAS, after publishing, mailing, and otherwise providing all notices required by the Act and state law, the City Council conducted the Public Hearing on July 16, 2024, at the time and place and for the purposes set forth in the notices; and WHEREAS, after all persons having an interest in the service and assessment plan of the Page 1 District were given an opportunity to be heard and all written or oral objections to the proposed assessment were considered, the City Council closed the Public Hearing on June 16, 2024; NOW, THEREFORE; THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES : SECTION 1. The matters set forth in the recitals in this Resolution are true and correct are fully incorporated as part of this Ordinance for all purposes, and constitute findings of the City Council acting in its legislative capacity. SECTION 2. The form, content, and timing of the notices of the Public Hearing, and the conduct of the Public Hearing were in compliance with all requirements of the Act and are hereby ratified and approved. SECTION 3. The Service and Assessment Plan prepared and submitted by the DTPIDC and the Assessment Roll, both attached hereto as Exhibit A, have been reviewed and meet the requirements of the Act and are hereby authorized, adopted, and approved for implementation. The Public Improvements are authorized by Section 372.003 of the Act and include, but are not limited to, the improvements described below: 1 2. Funding to attract convention, group, and tourism business to the City. Marketing activities, including but not limited to: Denton brand marketing including digital and print advertisements, radio and television advertisements, static and digital billboards; new collateral and promotional materials; public relations communication strategy development; a social media influencer program; and economic development partnerships. Sales activities, including but not limited to: offer sales rebates and incentives; attendance to professional industry conferences and events; participation in national trade shows; sales events; and familiarization tours showcasing hotels in the district. Administrative activities, including but not limited to: costs to establish the district; contract expenditures to support activities related to the District; administrative staff to manage financials and reporting; bank fees and other costs associated with financial transactions; insurance; and consultation. Tourism research activities, including but not limited to: tourism research calculators; software; destination data analytics; and return on investment analysis. The estimated cost of the proposed Public Improvements is $12,600,000 over the 10-year term of the District. 3. 4. 5. 6. SECTION 4. The needs and requirements to manage the District and implement its improvements, information provided by the City staff, and the evidence, information, and testimony presented at the Public Hearing having been considered, the City Manager or their designee is hereby authorized to execute a contract between the City of Denton, the Denton Tourism Public Improvement District Corporation (the “DTPIDC”), and the Denton Chamber of Commerce (the “Chamber”) to implement the District’s improvements and service plan, in substantially the form attached hereto as Exhibit B, and to take necessary actions to administer the contract, including the expenditure of District funds. Page 2 SECTION 5. A special assessment rate of 2.0% of the gross hotel room night revenue of hotels with 75 or more rooms ordinarily used for sleeping within the District is levied to fund the improvements and services benefitting the District, in accordance with the Service and Assessment Plan and the Assessment Roll. The assessment shall begin on August 1, 2024. The gross hotel room night revenue will be self-reported by hotels within the District and remitted on a monthly basis. The assessment will only apply in instances where the hotel occupancy tax is required to be collected. SECTION 6. Per Section 372.018 of the Act, any assessments, and any interest thereon accrued in accordance with the Service and Assessment Plan, which interest rate shall not exceed the maximum amount allowed by law, together with reasonable fees and the costs of collection, if incurred, shall be a first and prior lien against the property assessed, superior to all other liens and claims except liens and claims for state, county, school district, and municipality ad valorem taxes and are a personal liability of and charge against the owners of the property regardless of whether the owners are named. SECTION 7 . The City Secretary is hereby authorized and directed to cause the caption of this Resolution (together with a general description of the District) to be published one time in a newspaper of general circulation in the area where the District is located as required by the Act; whereupon the authorization of the District shall take effect. SECTION 8. This Ordinance has been approved by majority vote of all members of the City Council and constitutes the approval of the Service Plan, including the Assessment Plan in accordance with the Act. SECTION 9. Having heard and passed on all objections, the City Council levies the assessment as a special assessment on the District, effective August 1, 2024. SECTION 10. This Ordinance shall take effect immediately from and after its passage and publication as required by this Ordinance and the Act. The motion to approve this Ordinance was made by J ,' I I J,s }, J and seconded by P'- 1 h&IITer ; the Ordinance was passed and approved by thefollowing vote $ - a : Aye Nay Abstain Absent Mayor Gerard Hudspeth :b/ 7 / L/ 1/ Vicki Byrd , District 1 : Brian Beck, District 2:,/ Paul Meltzer, District 3 : Joe Holland. District 4: Brandon Chase McGee, At Large Place 5 : Page 3 Jill Jester, At Large Place 6:,/ PASSED AND APPROVED this the ic*- „,., J.\y _, 2024. L///– GERARD HUDSPETH. MAYOR ATTEST: LAUREN THODEN, CITY SECRETARY APPROVED AS TO LEGAL FORM: MACK RE[NWAND, CITY ATTORNEY Scott Bray, Deputy City Attorney Page 4