HomeMy WebLinkAbout2026-024 Discover Denton DMMO TransitionDate: April 3, 2026 Report No. 2026-024
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
The transition of Discover Denton to Denton Destination Management and Marketing
Organization an independent 501(c)(6) organization.
BACKGROUND:
On December 17, 2024, City Council approved Ordinance No. 24-2486, authorizing the City
Manager to execute a contract with the Denton Chamber of Commerce for the acquisition of the
equipment, intellectual property, and other assets of Discover Denton, a line of business under
the Denton Chamber of Commerce and the assumption of certain contracts.
Since the City’s acquisition, and as part of the council approved long-term plan, Discover
Denton has been working towards establishing itself as a stand-alone DMMO starting with the
formation of the Discover Denton Advisory Board (“DDAB”). The DDAB met October 29,
2025, and approved the organizational bylaws and voted to appoint an interim executive board.
Subsequently, the transition required additional actions including:
February 3, 2026: During a City Council Work Session proposed bylaws were presented to City
Council for review and feedback.
February 17, 2026: City Council approved the initial bylaws (6-0) for the Denton DMMO and
signed Resolution 26-0181 authorizing the filing of the Certificate of Formation.
February 18, 2026: The Certificate of Formation was officially filed with the State of Texas,
subsequent acknowledgement of the filing was received February 20, 2026.
March 3, 2026: The Denton DMMO was issued an Employer Identification Number (EIN) by
the Internal Revenue Service, establishing itself as a 501(c)(6).
March 20, 2026: Kristi Franz, Executive Director of Discover Denton presented an application to
the Community Partnership Committee requesting a transfer of the remaining Hotel Occupancy
Tax (HOT) funding for Calendar Year 2025-26. The committee reviewed and provided direction
to award Hotel Occupancy Tax (HOT) funds to the Denton DMMO for Program Year 2026,
excluding the portion retained by the City to cover costs for Discover Denton and related
activities.
DISCUSSION:
With the legal formation of the Denton DMMO complete, the next phase in transitioning the
organization to an independent entity is the execution of an Acquisition Agreement and an
Intellectual Property Licensing Agreement between the City and the Denton DMMO. These
agreements will address:
Date: April 3, 2026 Report No. 2026-024
Lease Assignment: The City will agree to execute a subsequent transfer of the current lease for
the Visitor Center space, located at 111 W. Hickory Street, from the City of Denton to Denton
DMMO.
Asset Transfers: Transferring all inventory, tangible personal property, contracts, permits, rights
and warranties to the extent necessary for the continued operation of Discover Denton.
Facility Usage: The DMMO will establish a formal lease agreement with the City for the office
space currently occupied by Discover Denton within the Development Services Center.
Intellectual Property: By executing the Acquisition Agreement, the City and the Denton DMMO
will agree to the form of an Intellectual Property License Agreement that will grant a license to
the Denton DMMO for the use of the Discover Denton brand and related intellectual property.
The Acquisition Agreement will establish a closing period ending on May 8, 2026. During the
closing period, the necessary contract assignments, lease agreements, and other documents
required to formalize the component parts of the transition will be executed by the City and the
DMMO.
CONCLUSION:
The Denton Destination Management and Marketing Organization has successfully met the
requirements to operate as an independent entity. City staff requests Council authorization for the
Interim City Manager, or their designee, to execute the Discover Denton Acquisition Agreement;
the Discover Denton Intellectual Property License Agreement; and any related documents or
instruments necessary to complete the organization’s transition to full operational independence.
ATTACHMENTS:
Discover Denton Acquisition Agreement
STAFF CONTACT:
Kristi Franz, Executive Director
Kristi.Franz@CityofDenton.com
(940) 220-4382
REQUESTOR:
Staff initiated.
PARTICIPATING DEPARTMENTS:
Marketing & Communications
Finance
City Attorney’s Office
Discover Denton / Denton CVB
STAFF TIME TO COMPLETE REPORT:
Date: April 3, 2026 Report No. 2026-024
1 hour