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HomeMy WebLinkAboutRES 24-148RESOLUTION NO. 24-148 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council be and they are hereby authorized to review and approve funding for the Hotel Occupancy Tax applications for the Hotel Occupancy Tax Grant FY25 cycle in the amount of $300,000.00 as follows: 409 Family $1,000.00 Aimed Dance $4,000.00 Art Museum of SETX (AMSET) $80,000.00 Beaumont Children's Museum (BCM) $50,000.00 Beaumont Heritage Society (BHS) $19,000.00 Boomtown Film & Music Festival $6,000.00 Downtown Beaumont Cultural Arts District (DBCAD) $27,000.00 Lamar Research Foundation for Spindletop- Gladys City Boomtown Museum $8,000,00 Obana Three (Min Dai for BMT Mural Fest) $30,000.00 Texas Energy Museum $75,000.00 The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. 2024. PASSED BY THE CITY CO=AIL of the City of Beaumont this the 18th day of June, Roy West - 0 {U E E 0 yy� L.L .E E U 0 U _N N 06 C' o N � •� O U (n C U � (D / o L O N o Q a > O O o CD Q M 0 UQI�r_ ©)NLO 4)©':�c000©oo'o o 0 0 Co 0 0 0 0 0 0 0 Cl z 0 0 0 E w o 0 0 0 o c o 0 0 o c O �= t O H9• o CO o O c- co t4 ti N oo tO © M LO ti I O Is U 0. to � � 6 to M LU 0 Ca O C0 C] CD C] f� O CD LO CD CD CD O CD CD CD CD CD O O LO CDI` CD CD � 0 O O O R O O O Lr C7 O 00 O r Q :3 cr dt 61)- v— c- CD00 00 I-- CA c- CD c- (D M � M In It CD" O d LO O 00 It U)- 69- 69 69 69- 69- 69- 60- � 64 � L N N } O C] f4 0 CD 0 CD 0 CD 0 0 0 0 0 0 O CD O CD O CDLL 0 C) C7 C7 C) C] CO CO CD CD CD O Q Q � ti It N cf} N� 04 N 00 O 6`} UY Ca 6g m m 69 O n m C? ( •� m N m CO 1� c�t LU a E Q. CL @ O O U p c m cu o w o LL T E ❑ �, O 0 3 o R U w � co O E O N E ci p Q c� x O v Q Q m m m ❑ J co 2 O F- � N M � Inco f� m m a t-- N r N W O LL Q Z ♦a� V J 0. 0. a Z (4D 9 0 Q N ati A N H `" U ai o � � �� o A N � � - N ' poi o o x W o �1AUZ o P o o t6T o o o y o +; �° t�U►�� o ea O o '' c" v o ~ v� ° 78 w� 4—• �a Sao vw4 r� csi) y ` .. to ` b)),2 b ;3 Cl bA ' O Tr C e,4i� ° n Mi W 5 s� 00 4>" eF W H ape, 2024 HOT GRANT REVIEW & SELECTION COMMITTEE RECOMMENDATION REPORT A Hotel Occupancy Tax (HOT) is a tax charged to guests who stay in a hotel, motel, or overnight lodging, Under Texas law, local HOT revenue can be used only to directly promote tourism and the convention/hotel industry. This means the proceeds should be spent on projects or events that result in visitors or attendees staying overnight in the community, generating more hotel occupancy tax. The Beaumont Convention and Visitors Bureau (CVB), a department within the City of Beaumont, is funded exclusively through Hotel Occupancy Tax (HOT) dollars. The Beaumont CVB's primary focus is to Is to attract leisure tourists and business travelers, increase overnight stays and market Beaumont as a prime destination for conventions and meetings as well as its eco-tourism endeavors. In addition, the CVB has increased its promotional and tourism efforts and now operates four (4) visitor center buildings within the City of Beaumont. Historically, besides funding the CVB, a portion of the Hotel Occupancy Tax (HOT) dollars has been designated towards the Civic and Art Funding which has supported local museums and art groups within the City of Beaumont. Initially this Civic & Arts funding was allocated for only three museums and an arts council to redistribute to other arts and humanities groups as a separate grant application process. Several years ago, funding was allocated for a fourth museum and arts council funding was shifted as an official designated arts district organization in downtown Beaumont was created. As more organizations and museums were coming to the City of Beaumont for HOT funding, last year in 2023, the CVB assumed the management and administration of the Civic & Arts HOT funding by creating a competitive HOT Grants Application process for which organizations could apply. Eleven grant applications were submitted, and ten grants were awarded for a total of $300,000 for FY24. The CVB Budget and HOT Grants Budget both have extremely limited funds available. In addition, the total 2024 HOT Grant Requests for FY25 was nearly double the amount of available funds. A total of $300,000 is the amount available to distribute for this Civic & Arts Funding Grant cycle. While the 2024 HOT Grants Review and Selection Committee would love to support all the applicants with full funding, funding cuts are inevitable. Moreover, the HOT Grants Selection Committee carefully reviewed each application request y to be sure that the requests followed the HOT Grant guidelines and complied with the stipulations set for HOT funds as set by the State Law. The HOT Grants Review Committee made allocation decisions so that HOT Grant funds would be used to bring In visitors that will stay in hotels and increase the return on Investment by generating trackable hotel rooms, generating more HOT revenues. Therefore, the 2024 HOT Grants Review and Selection Committee makes these recommendations for distributing the HOT Grant Funds for the Fiscal Year 2025 funding cycle as follows; 2024 HOT Grant Review & Selection Committee Allocation Recommendations: t, 409 Day (409 Family) Amount Committee Recommended: $1,000 Amount Requested• $4,000 Committee Continents: While 409 Day is a great local event with growing attendance, Since HOT dollars must focus on bringing in out-of-town visitors to stay overnight, it is recommended these funds be used for marketing 50+ miles outside of City limits with a host hotel AND work with CVB Convention Sales Staff to generate the hotel room block. By giving some funding, the committee wants to encourage the event organizer to consider packaging and promotion of activities/event in a such way, so visitors would stay overnight. 2. Aimed Dance Amount Committee Recommended: $4,000 Amount Requeste& $11, 000 Connttittee Coininents: While the Aimed Dance Summer Fest is a new HOT Grant Applicant, it has a history of trackable hotel rooms, having previously worked with CVB Convention Sales Team to book hotel rooms for this Summer Dance Festival in prior years. Since HOT dollars must focus on bringing in out-of-town visitors to stay overnight, it is recommended these funds be used for marketing 50+ miles outside of City limits with a host hotel for this event AND work with CVB Convention Sales Staff to generate the hotel room block. 3. Art Museum of SETX (AMSET) Amount Committee Recommended: $80,000 Amount Requested: $80, 000 Conan ittee Continents: The Art Museum is an "anchor" museum on city property in downtown Beaumont and does promote its exhibitions and programs outside of area. AMSET does track everyone who comes into the museum at the front desk with a guest register asking specifically if they stay overnight in a hotel, showing strong visitor statistics. Since HOT dollars must focus on bringing in out -or -town visitors to stay overnight, it is recommended these funds be used for marketing 50+ miles outside of City limits AND work. with CVB Convention Sales Staff to generate a hotel room block for any of its museum exhibitions, activities, and/or functions. 4.Beaumont Children's Museum (BCM) Amount Committee Recommended; $50,000 Aniount Requested; $78,807 Connnittee Continents: Because BCM has a history of trackable hotel rooms, having previously worked with CVB Convention Sales Team to book hotel rooms for their annual Fishing Tournament. BCM has the highest visitor count of any museum in area and is using HOT funding for marketing their museum and activities by using billboard on IH-10 and other media. Since HOT dollars must focus on bringing in out-of-town visitors to stay overnight, it is reconunended these funds be used for marketing 50+ miles outside of City limits with a host hotel for this event AND work with CVB Convention Sales Staff to generate the hotel room block. 2 5. Beaumont Heritage Museum (BHS) Amount Committee Recommended: $19,000 Amount Requested.' $.19, 950 Committee Comments: John Jay French Museum is malting efforts to promote and market their everts, activities, and tours for out-of-town visitors. Their newest Heritage Tourism initiative also shows their comnitrnent to share in the City's downtown development, Since HOT dollars must focus on bringing in out-of-town visitors to stay overnight, it is recommended these funds be used for marketing 50+ miles outside of City limits with a host hotel for this event AND work with CVB Convention Sales Staff to generate the hotel Poona block for their special events and/or create an overnight package as they develop their new Heritage Tourism initiatives. 6. Boomtown Film and Music Festival Amount Committee Recommended: $6,000 Ainoan7t Rearrested. $10, 000 Committee Connntents: Boomtown Film Festival has improved its event this past year, and has a history of trackable hotel rooms, having previously worked with CVB Convention Sales Team to book hotel rooms in prior years. In addition, it supported downtown development as all venues for the festival were located in downtown Beaumont. Boomtown Film Festival should continue to receive some funding due to the recent designation of Beaumont Film -Friendly. Since HOT dollars must focus on bringing in out- of-town visitors to stay overnight, it is recommended these funds be used for marketing 50+ miles outside of City limits with a host hotel for this event AND work with CVB Convention Sales Staff to generate the hotel room block. 7. Downtown Beaumont CuItural Arts District Amount Committee Recommended: $27,000 (DBCAD) Ainount Requeste& $30, 000 Committee Comments: Since DBCAD uses these funds to help other organizations promote and present cultural & arts -based events, festivals, and performances within the downtown Beaumont cultural district area, DBCAD is important for fixture growth of downtown. Since HOT dollars must focus on bringing in out-of-town visitors to stay overnight, it is recommended these Rinds be used for marketing 50+ miles outside of City limits with a host hotel for this event AND work with CVB Convention Sales Staff to generate the hotel room block for their arts events as well as any of the arts groups which they fund through HOT funds as well, so that visitor statistics and tracking hotel nights can improve. 3 S. Lamar Research Foundation (Spindletop Boomtown Museum) Amount Committee Recommended: $8,000 Antornrt Requested: $31, 500 Committee Continents: Since Spindletop-Gladys City Boomtown Museum has now new staff and direction to increase their events and functions, this funding should help them market their functions to improve their visitor statistics. Since HOT dollars inust focus on bringing in out-of-town visitors to stay overnight, it is recommended these funds be used for marketing 50+ miles outside of City limits with a host hotel for this event AND work with CVB Convention Sales Staff to generate the hotel room block for their large-scale events. 9. Mardi Gras of SETX Amount Committee Recommended: $NONE Amount Requested: $45, 000 Committee Comments: Because the applicant has outstanding financial obligations to the City of Beaumont at the time when the HOT Grants Review and Selection Committee met, as stipulated in #b Policy under the HOT Grant Application Guidelines, applicants are Not eligible for funding if they have any outstanding financial obligations to the City of Beaumont. 10. Obana Three (Min Dai) Amount Committee Recommended: $30,000 Amount Requested: $100 000 Committee Continents: Mural Festival, after 3 years, has shown the results in bringing national and international mural artists for the weekend festival of mural art throughout the city. The host hotel block for the mural artists was booked and tracked through the Beaumont CVB. It is recommended that Mural Fest focus their marketing and promotional efforts outside the city limits to increase the number of out-of-town visitors to stay overnight in Beaumont, Mural Fest may use HOT dollars on expenditures that promote the arts related to presentation, performance, execution, and exhibition of the art form, keeping in mind that ultimately the focus is on bringing in out-of-town visitors to stay overnight. It is reconunended that the event organizer work, with the CVB Staff to generate the host hotel room block and to coordinate promotional efforts. t1. TEGNA Corporation Amount Committee Recommended: $NONE Aniount Requested: $42,850 Committee Comments: When considering all applicants, funding a for -profit media corporation to produce a generic, digital streaming TV commercial with no tangible data to support how to track and improve overnight hotel stays, when our local museums and non -profits are in great need and funds were so limited, the committee felt that it was best not to authorize funding for this application in this funding cycle. 11. Texas Energy Museum Amount Committee Recommended: $75,000 Anloina Requested: $95, 000 Continittee Comments: While Energy Museum is one of the key museums downtown, the connnittee felt that the museum should begin to seek other, additional funding sources to support its operational needs independently. While less than requested, this amount is still substantial and keeps it in line with the funding level for the other museum on the same city property. The committee wants to see visitor statistics grow. Since HOT dollars must focus on bringing in out-of-town visitors to stay overnight, it is recornrnended these funds be used for marketing 50+ miles outside of City limits with a host hotel for this event AND work with CVB Convention Sales Staff to generate the hotel room block for events. 0 The process of selecting organizations for funding of a grant is a complex and challenging endeavor that requires careful consideration and evaluation. While many organizations submitted compelling proposals, not all can be selected due to various reasons. It's important to note that the decision not to award full funding to certain organizations does not necessarily reflect a lack of merit in their projects or the potential impact they could have. We wanted to stress the importance of the new application process, policies and guidelines which is vital to following the Texas Tax Code and State Law as it pertains to the use of HOT dollars. Due to budget constraints, the number of applicants and the limited amount of funds available, we are recommending the above amounts to City Council and ask that they approve these recommendations since it serves to increase the number of visitors and overnight stays to Beaumont. It