12 - Designating the Renovation, Repair & Other Improvements of the Love Civic Center

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Item No. 12 1 TO: City Council John Godwin, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: RESOLUTION DESIGNATING THE RENOVATION, REPAIR AND OTHER IMPROVEMENTS OF THE LOVE CIVIC CENTER DATE: January 22, 2019 BACKGROUND: Council approved going forward with a 2% rate increase to the city's hotel occupancy tax ("HOT") at its regular meeting on January 14, 2019. The increase is to be dedicated to fund capital repairs, renovations and other improvements to the Love Civic Center. STATUS OF ISSUE: Because the city's HOT is already at the maximum statutory rate of 7%, the city must hold an election to approve the additional 2% in the form of a "venue tax." The first step to calling the election is to adopt a resolution designating the LCC project as a "venue project." The Texas comptroller must approve the resolution prior to council's calling the election. The tax, if approved by the voters, will be dedicated to the LCC project. Bonds or other indebtedness must be issued within a year of the election approving the tax, and the tax may only be collected until such indebtedness is retired. As with all HOT, this user tax will be paid by people staying in hotels and motels located within the city and is not a sales or other tax paid by residents. Assuming the comptroller acts in a timely manner, we should be able to call an election for May by the February 15"' deadline. If so, the election will be held concurrently with our regular elections for city council seats and any expense related to the HOT election will be nominal. BUDGET: An election is required to impose the additional 2% HOT approved by council on January 14tH RECOMMENDATION: Discuss and approve the resolution designating the renovation, repair and other improvements of the Love Civic Center.