11 - Hotel Occupancy Tax Agreement Amendment No. 1Item No. 11
Memorandum
TO: Mayor
Mayor Pro Tem
City Council
FROM: Robert G. Vine, Assistant City Manager
SUBJECT: Amendment No. 1 to Hotel Occupancy Tax Agreement between City of Paris and
Lamar County Chamber of Commerce
DATE: August 14, 2023
BACKGROUND:
The City of Paris and the Lamar County Chamber of Commerce entered into a Hotel Occupancy
Tax (HOT) Agreement with the effective date of October 1, 2016. This agreement stipulated the
City obligating 95% of the HOT collected to the Chamber while retaining 5% of the HOT "to pay
City's administrative cost, 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",
STATUS OF ISSUE:
Staff have used HOT funds to partially, or fully, fund two projects over the past year, the Lake
Crook Boat Ramp and an adjacent floating boat dock. With the current agreement in place
regarding the use of HOT funds, approval was obtained from both the City Council and the Lamar
County Chamber of Commerce Board.
Over the past several months, discussions were had with respect to an opportunity to amend the
original agreement by removing the requirement to limit the HOT fund of only paying for
administrative costs to instead authorize "for the purpose of funding special purpose grants to
enhance tourism as approved by the City Council of Paris and consistent with state law".
As a result of these conversations, this proposed amendment was drafted and presented to the
Lamar County Chamber of Commerce Board, which they subsequently signed.
BUDGET:
Based on our current account balance that has accrued since the signing of the original 2016
agreement, this amendment would provide access to approximately $406,000 of HOT funds for
eligible projects with no special restrictions limiting the funds to administrative costs. The intent,
though not a limitation, of this amendment is to use the funding the City retains on eligible costs
that improve public property (ex: Lake Crook).
OPTIONS:
1. Approve the adoption of Amendment No. 1 to the Hotel Occupancy Tax Agreement with
the Lamar County Chamber of Commerce.
2. Opt to leave the Hotel Occupancy Tax Agreement with the Lamar County Chamber of
Commerce as written and do not adopt Amendment No. 1.
RECOMMENDATION:
1. Approve the adoption of Amendment No. 1 to the Hotel Occupancy Tax Agreement with
the Lamar County Chamber of Commerce.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
APPROVING AMENDMENT NO. 1 TO THE HOTEL OCCUPANCY TAX
AGREEMENT DATED OCTOBER 1, 2016 BETWEEN THE CITY OF PARIS,
TEXAS AND LAMAR COUNTY CHAMBER OF COMMERCE; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING
AN EFFECTIVE DATE.
WHEREAS, the City of Paris ("City") and the Lamar County Chamber of Commerce
("Chamber") entered into a Hotel Occupancy Tax Agreement effective October 1, 2016 (the
"Agreement") whereby the City contracted with the Chamber for the management of hotel
occupancy taxes ("HOT") collected by 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).
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS, THAT:
Section 1. That the findings set out in the preamble to this resolution are hereby
in all things approved.
Section 2. That the Amendment No. 1 to Hotel Occupancy Agreement dated
October 1, 2016 attached hereto as Exhibit A and incorporated herein by reference is hereby
approved and the Mayor his hereby authorized to execute same on behalf of the City.
Section 3. That this Resolution shall be effective upon passage.
PASSED AND APPROVED this 14th day of August, 2023.
Reginald B. Hughes
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
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.
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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
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
LAMA.R COUNTY CHAMBER OF COMMERCE:
President
Chairman of the Board
�.... .............
REMAINDER OF PAGE LEFT BLANK
STATE OF TEXAS
COUNTY OF LAMAR
This instrument was acknowledged before me on this _ day of
By Reginald B. Hughes, Mayor of the City of Paris, Texas.
Texas Notary Public
My Commission Expires:
2023,
This instrument was acknowledged before me on this.2 / day of 2023,
By„. .,M ww President, Lamar County Chamber of Commerce.
as
My Commission Expires:
LISA FOLLMAR
NOTARY PUBLIC
STATE OF TEXAS
* ID # 133448401
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This instrument was acknowledged before me on day of r �,, 2023,
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BY .. m....� _ u� Chairman of the Board, Lamar County Chamber of Commerce.
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My Commission Expires:
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LISA FOLLMAR
NOTARY PUBLIC
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This Agreement shall be between the City of Paris, Texas, a home rule municipal
corporation (hereinafter CITY), and the Lamar County Chamber of Commerce, a 5010-6 not-
for-profit corporation (hereinafter CHAMBER), which in consideration of the mutual covenants,
agreements, stipulations, and payments, do hereby contract and agree as follows.
Section 1. Res onsibilities of Parties.
CITY shall:
1. Convey to CHAMBER quarterly distributions of the Hotel Occupancy Tax collected
pursuant to state law.
2. Retain five percent (5%) of quarterly Hotel Occupancy Tax proceeds 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.
CHAMBER shall:
L Operate, support, fund, staff, and otherwise maintain an active Visitors and Convention
Council (VCC) for the purpose of promoting tourism and the convention and hotel
industry within the City of Paris.
2. Use three -sevenths of HOT proceeds received from CITY for operation and maintenance
of LCC facilities, and other such proceeds as are generated by or contributed to, the LCC
facilities to use, staff, maintain, and operate the Love Civic Center (LCC) facilities for
the operation of a conference, meeting, convention, and exhibit center for holding
conventions, meetings, exhibits and other events and activities to attract conventions,
tourists, and other visitors and for the benefit of the City and the general public.
3. Deposit all Hotel Occupancy Tax (HOT) proceeds into a separate banking account at a
local financial institution which is federally chartered and FDIC -insured in such a manner
that no other funds of CHAMBER are or can be comingled with HOT proceeds.
4. Submit for approval by CITY, on or before August 1 of each year, a proposed annual
program of work and budget for the VCC and for LCC facilities.
5. Submit minutes of the meetings of the VCC and LCC board to CITY within thirty (30)
days of approval of said minutes.
6. Comply with all state statutes and city ordinances pertaining to the use of leased facilities
and of Hotel Occupancy Tax proceeds.
7. Maintain complete and accurate financial records of all expenditures of HOT and
make such records available for review and inspection upon request of CITY.
8. Provide written quarterly reports to CITY, summarizing revenues and expenditures, as
well as convention and tourism activities and statistics, and present such reports
verbally upon request of CITY.
9. May, at its discretion, contract with qualified third parties to provide high quality
promotion of tourism and the hotel industry.
10. May, at its discretion, establish operating policies and procedures that give day -of -the -
week preference to activities and events at the LCC that are most likely to result in
out-of-town visits which in turn will increase HOT proceeds and promote the hotel
industry.
11. Subject to reasonable availability, provide to CITY six rent-free uses of LCC facilities;
provided, however, CITY shall reimburse LCC for any damages, and shall make every
reasonable effort to use LCC facilities on weekdays instead of weekend days.
12. Subject to reasonable availability, provide to Paris Junior College three rent-free uses of
LCC facilities for college related functions; provided, however, that college shall provide
a reasonable damage deposit and/or insurance coverage for each event and reimburse
LCC for any damages.
13. Subject to reasonable availability, provide to the VCC three rent-free uses of LCC
facilities for VCC related functions; provided, however, that VCC shall provide a
reasonable damage deposit and/or insurance coverage for each event and reimburse LCC
for any damages.
14. Maintain responsibility for all costs associated with the maintenance and operation of the
LCC facilities, including all capital expenditures deemed necessary to keep any and all
facilities in the same condition as of the date of execution of this agreement (normal wear
and tear excluded) throughout the term of this Agreement.
15. Take every reasonable effort and accommodation to ensure accessibility to the LCC
facilities by persons with disabilities.
Section 2. Future HOT rate increases.
Should CITY adopt, consistent with state law, an assessment rate increase in the Hotel
Occupancy Tax, CITY shall establish a Capital Reserve Account into which CITY shall deposit
all proceeds from said increase. CHAMBER shall have the right, upon submission of a written
request accompanied by such supporting documentation as CITY may require, to reimbursement
from funds held in the Capital Reserve Account for monies spent by CHAMBER for capital
maintenance and improvement items approved by CITY and related to the Love Civic Center
during the term of this Agreement.
Section 3, CHAMBER not an a sant of CITY.,
CHAMBER covenants and agrees it is an independent contractor and not an officer, agent,
servant or employee of CITY; that CHAMBER shall have exclusive right and authority to
control services to be performed hereunder and all persons performing same, and shall be
responsible for the acts and omissions of its officers, agents, employees, contractors,
subcontractors, and consultants; and that nothing contained herein shall be construed as creating
a partnership or joint enterprise between CHAMBER and CITY for the purpose of this
Agreement and shall, in no manner, incur expense or liability on behalf of CITY.
Section 4. Hold harmless.
CHAMBER does hereby agree to release, indemnify, and hold CITY and its officers and
employees harmless from and against any and all demands, debts, liabilities, suits, claims, and
causes of action of every kind and character whatsoever for damage or injury (including death)
to persons and/or property occurring on the LCC facilities and resulting from CHAMBER's
invitees, guests, agents, servants, or employees' presence upon, use, occupancy or enjoyment of
the LCC facilities, CITY shall not be liable to CHAMBER invitees, guests, agents, servants,
employees, or visitors due to the improvements located thereon, or hereafter constructed, or any
other condition of the LCC facilities being improperly constructed, maintained, or being or
becoming out of repair. However, both CHAMBER and CITY shall carry all requisite
insurances.
Waiver by CITY of any breach by CHAMBER of the terms, covenants, conditions, or provisions
of the Agreement shall not be deemed to be a waiver of any other breach of the same or other
terin, covenant, condition, or provision of this Agreement terminated for any of the reasons set
out above and shall not bar the right of CITY to subsequently terminate this Agreement for any
of the reasons set out above.
Section 5. Severa1 M121qe
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In case any one or more of the provisions contained in the Agreement shall, for any reason, be
held by a court of competent jurisdiction to be invalid, ille[�al, or unenforceable in anp rem5WI
such invalidity, illegality, or unenforceability shall not affect any other provision of the
Agreement, and this Agreement shall be construed as if the invalid. illegal, or unenforceable
provision had never been included in the Agreement.
This Agreement constitutes the sole and only Agreement of the parties to this Agreement and
supersedes any prior understandings or written or oral agreements between the parties respectin,_:ii
the subject matter of this Agreement. However, this Agreement may be executed in duplicate
originals, and each shall be considered an original document.
No amendment., �,;5
it is in writing, dated subsequent to the date of this Agreement, and duly executed by the parties
io this Agreement.
Section 6. Term.
Recognizing the need of CHAMBER to invest and reinvest in LCC and fac*,*
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long-term professional services agreements and programming for the promotion of tourism and
the convention and hotel industry, this Agreement shall remain in full force and effect for a
Fo,eriod of ten years, except that either party may terminate this Agreement, with or without cause,
with a minimum of 180 days written notice. Recognizing that CITY will necessarily assume
responsibility for any remaining debt for capital improvements to LCC facilities, CHAMBER
shall submit to and receive approval of CIT'Y prior to the issuance of any such debt. The
effective date of this Agreement is October L
September 30,2025.
Section 7. Notice.
All notices, demands, payments and other communications required to be given or made
hereunder shall be in writing and shall be duly given if delivered by hand, messenger,
telecopy or reputable overnight courier or if mailed by certified or registered mail, first class
ta e qzaid, and shall
after such mailing, to the respective parties hereto at the addresses set fortb below, or to such
other address famished in writing to the other party hereto.
IN WIT -NESS WHEREOF, the parties hereto have executed and delivered this Lease as of th4
date and year first set forth abq*
ATTEST:
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TY OF PARIS, TEXAS
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'llis, City Clerk Dr, A. I "I I hmi M. in N1 ayor
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By: .......... - - -----
Steppe init, H. Harris, City Attorney
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By:
Presides
By:
Chait"_ the Board
STATE OF TEXAS
This instrument was acknowledged before me on thisj;" �7day of2016, by AJ.
Hashmi, M.D., Mayor of the City of Paris, Texas. *'
'�Aas Notary Public
This instrument was acknowledged before me on this fday of 2016, by
President, Lamar County Chamber of CorTHT erce.
..............
'y6xas Notary Public
MINMERMEM=
This instrument was acknowledged e ore me on this 4""'day of„��, 2016, by
Chairman of the Board, Lamar County Chamber of Commerce.
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Notary Public
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