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CITY COUNCIL AGENDA MEMO |
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| | | | | | | | | MEETING DATE: | 1/8/2024 | | DEPARTMENT: | Gov Relations | | DIRECTOR: | Andrew Fortune, Director of Policy & Government Relations | | AGENDA ITEM: | Approval of an expenditure for legislative consulting services | | RECOMMENDED ACTION: | Items for Individual Consideration |
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| | | | | | | | ITEM SUMMARY Consideration to approve an expenditure for legislative consulting services to pursue passage of legislation authorizing the City of Plano to engage in Qualified Hotel Projects for an initial eighteen-month term with one (1) twenty-four (24) month City optional renewal in the amount of $126,300 from BTA Professional Service, LLC; and authorizing the City Manager to execute all necessary documents. Approved |
| | | | | | | | PREVIOUS ACTION/PRESENTATION A presentation on Legislative Update - Qualified Hotel Projects was held at the December 11, 2023 Preliminary Open Meeting. |
| | | | | | | | BACKGROUND Staff has identified a public financing economic development tool that would be beneficial to the City of Plano. In order to access the tool, legislation must be passed to add the City of Plano to a select list of qualified cities. Many cities in North Texas already qualify including: Dallas, Fort Worth, Arlington, Grand Prairie, Irving, McKinney, Frisco, and others.
Staff is recommending for the City of Plano to add the pursuit of this tool to the Legislative Program for the 89th Texas Legislative Session. Staff is also recommending the use of a lobbyist to aid in the passage of this specific legislation only. The proposed lobbyist was instrumental in writing the enabling legislation for this tool. He has also worked to successfully pass every change to the tool in each subsequent legislative session.
Many years ago, the State of Texas created a public finance tool within the Texas Tax Code that is used to build Qualified Hotel Projects. Cities must be expressly authorized by statute to access this tool.
In order for a hotel project to be considered a “Qualified Hotel Project”, certain criteria must be met. The hotel must be within 1,000 feet of a city-owned convention center, with 10,000 square feet of meeting space or more. The hotel must also be located on city-owned land. There are additional requirements that must be met through the process in terms of timing, etc.
Once a hotel project is designated as a Qualified Hotel Project, the City is able to apply for a rebate from the Texas Comptroller of the State’s Sales Tax (6.25 cents) and the State’s HOT Tax (6%) revenue for a 10-year period. In some cases, the City may be able to capture all sales tax generated within a 1,000-foot zone around the hotel project (restaurants, retail, etc.).
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| | | | | | | | FINANCIAL SUMMARY/STRATEGIC GOALS This item approves an eighteen (18) month contract with an optional twenty-four (24) month renewal term between the City of Plano and BTA Professional Service, LLC for legislative services to engage in Qualified Hotel Projects. Funds are available in the General Fund in the amount of $126,300 (or $63,150 in FY 2023-24 and $63,150 in FY 2024-25). All future renewal expenditures will occur within council approved appropriations.
Approval of this contract relates to the City's Strategic Plan Critical Success Factor of Excellent, Innovative, and Accountable City Government.
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