11 - Hotel Occupancy Tax Agreement Amendment No. 1

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AMENDMENT NO.1 TO HOTEL OCCUPANCY TAX AGREEMENT DATED OCTOBER 1 2016 WHEREAS, the City of Paris, Texas ("City") and the Lamar County Chamber of Commerce ("Chamber") entered into a Hotel Occupancy Tax Agreement (the "Agreement') with the effective date of October 1, 2016 whereby the City contracted with the Chamber for the management of hotel occupancy taxes ("HOT") collected in the City; and WHEREAS, pursuant to said Agreement, the City is obligated to forward 95% of HOT collected to the Chamber while retaining 5% of the HOT "to pay City's administrative costs, and for the purpose of funding special purpose grants to enhance tourism as approved by the City Council of Paris and consistent with state law;" and WHEREAS, the parties to said Agreement find it desirable to expand the purposes for which the City may expend the retained HOT to include expenditures for capital improvements on City -owned property which meet the requirements of the HOT statute (Texas Tax Code Chapter 351). WITNESSETH: The City and Chamber hereby agree to amend Section 1, paragraph 2 of the Agreement (a copy of which is attached hereto and incorporated herein by reference as Exh b t,A) to read as follows: Section 1 Responsibilities of Parties. Cil _sha11 1. ... 2. Retain five percent (5%) of quarterly Hotel Occupancy Tax proceeds to be used in the following manner: a. To pay CITY's administrative costs. b. For the purpose of funding special purpose grants to enhance tourism as approved by the City Council of Paris and consistent with state law. c. For capital improvements on CITY -owned property as approved by the City Council of Paris and consistent with state law. This Amendment No. One shall become effective upon the last date of execution hereof. ATTEST: CITY OF PARIS, TEXAS Janice Ellis, City Clerk Reginald B. Hughes, Mayor