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Item No. 12 <br />TO: City Council <br />John Godwin, City Manager <br />FROM: Stephanie H. Harris, City Attorney <br />SUBJECT: RESOLUTION CALLING FOR AN ELECTION TO APROVE A TWO <br />PERCENT VENUE HOTEL OCCUPANCY TAX FOR THE RENOVATION, REPAIR <br />AND OTHER IMPROVEMENTS TO THE LOVE CIVIC CENTER <br />DATE: February 5, 2019 <br />BACKGROUND: Council approved going forward with a 2% rate increase to the city's hotel <br />occupancy tax ("HOT") at its regular meeting on January 14, 2019. The increase is to be <br />dedicated to fund capital repairs, renovations and other improvements to the Love Civic Center. <br />On January 28, 2019, Council approved a resolution designating said repairs, renovations and <br />other improvements to the LCC as a venue project for purposes of calling an election to approve <br />the additional "venue" hotel occupancy tax. <br />STATUS OF ISSUE: Because the city's HOT is already at the maximum statutory rate of 7%, <br />the city must hold an election to approve the additional rate of 2% in the form of a "venue tax." <br />The first step to calling the election was to adopt a resolution designating the LCC project as a <br />"venue project." The Texas comptroller approved the venue project resolution on February 4, <br />2019 clearing the way for Council to call the election. The tax, if approved by the voters, will be <br />dedicated to the LCC project. Bonds or other indebtedness must be issued within a year of the <br />election approving the tax, and the tax may only be collected until such indebtedness is retired. <br />As with all HOT, this user tax will be paid by people staying in hotels and motels located within <br />the city and is not a sales or other tax paid by residents. <br />BUDGET: The costs of the election are negligible because the city has already called an election <br />to fill expiring Council member terms. <br />RECOMMENDATION: Discuss and approve the resolution calling for an election for the <br />approval of a venue hotel occupancy tax for the renovation, repair and other improvements of the <br />Love Civic Center. <br />