Mar 26, 2024 Visit McKinney

MOTION FROM KEITH.

MAY I GET A SECOND? SECOND.

SECOND.

MAY I GET A VOTE? ALL IN FAVOR SAY AYE.

AYE.

YOU CAN GET BOARD AND LIAISON REPORTS.

MOTION PASSES.

OKAY, MOVING ON TO REPORTS.

[Board and Liaison Reports City of McKinney McKinney Economic Development Corporation McKinney Community Development Corporation McKinney Main Street / MPAC McKinney Parks and Recreation Visit McKinney Finance Committee Visit McKinney Marketing Committee]

WE'LL START WITH TREVOR MINARD.

THANK YOU, MADAM CHAIR, MEMBERS OF THE BOARD.

UH, I'M GONNA BE VERY BRIEF THIS MORNING.

I KNOW Y'ALL ARE ON A TIGHT WINDOW.

UM, CITY MCKINNEY, WE ARE IN THE MIDDLE OF OUR BUDGET PROCESS.

SO OVER THE COURSE OF THE NEXT THREE TO FOUR MONTHS, WE'LL BE PUTTING SOME RIGOR AND DISCIPLINE INTO THE 2025 BUDGET, WHICH STARTS IN OCTOBER.

AND THEN TODAY YOU'RE SEEING ME, NOT PAUL GRIMES, BECAUSE IT'S A BIG DAY FOR MCKINNEY, THE MCKINNEY ECONOMIC DEVELOPMENT CORPORATION, UH, THE CITY OF FRISCO'S ECONOMIC DEVELOPMENT CORPORATION, OR IN A JOINT VENTURE, IF YOU WILL, WITH PLUG AND PLAY, UH, MCKINNEY'S.

PART OF THAT WILL BE FOCUSED ON ENTERPRISE AND AI AS WELL AS FINTECH.

SO THE MCKINNEY SIDE OF THE AGENDA KICKS OFF TODAY WITH FRISCO GOING THIS AFTERNOON.

UM, JUST A COUPLE DATES I WANNA THROW OUT THERE FOR YOU.

THE FOLKS THAT, UH, WERE THE LEAD FOR OUR DOWNTOWN REDEVELOPMENT, RFP, THAT'S BEEN GOING ON FOR A FEW MONTHS NOW.

M TWO G WILL HAVE THEIR FIRST OPEN HOUSE AT THE MCKINNEY PERFORMING ARTS CENTER ON APRIL 9TH FROM 4:30 PM TO 6:30 PM AND THAT'S, UH, INVITED ALL PUBLIC TO COME AND PARTICIPATE IN THAT OPEN HOUSE FORUM TO LET THEIR THOUGHTS BE KNOWN ABOUT WHAT THEY WANNA SEE HAPPEN WITH THIS PROPERTY, THE PROPERTY ACROSS THE STREET, AND A COUPLE PROPERTIES TO THE NORTH OF US.

AND THEN FINALLY, I'LL BE BACK NEXT MONTH TO PROVIDE THIS BOARD A BOND UPDATE FOR THE MAY 4TH, 2024, UH, MUNICIPAL BOND ELECTION.

UM, I DID HAVE A LITTLE NOTE ABOUT THE BYRON NELSON, BUT I SEE THAT'S ON Y'ALL'S AGENDA, SO I WILL, UH, DEFER TO THOSE FOLKS.

I'M HAPPY TO ANSWER ANY QUESTIONS.

ALRIGHT, THANK YOU.

THANK YOU, TREVOR.

I'LL NOW HAND IT OVER TO PATRICK GUTTIER.

UM, I, I ONLY HAVE TWO THINGS TODAY.

FIRST, I WANT TO SAY GREAT JOB TO THIS BOARD ON THE, UH, ASIAN FESTIVAL THIS LAST WEEKEND, UH, ALONG WITH SOME OTHER BOARDS, BUT IT WAS JUST A SUCH A HUGE HIT, SUCH AN INCREDIBLE TIME.

AND, UH, JUST SO MANY HAPPY FACES OUT THERE.

UH, ON A MORE SOMBER NOTE, WE HAD TO MAKE A CHANGE ON THIS BOARD.

AND, UM, I'D LIKE TO WELCOME BRIAN MEDINA, WHO'S HERE.

UH, BUT JUST KIND OF A GENTLE REMINDER, AND ALL OF YOU KNOW THIS, THAT WE ARE FIDUCIARIES FOR THE CITY OF MCKINNEY WHEN WE, UM, WHEN WE COME ON THESE BOARDS AND SERVE ON COUNCIL AND EVERYTHING.

IT'S A GREAT HONOR.

AND SO, UM, UH, IT'S SOMETHING THAT'S IN MY LANE WHERE WE HAVE TO, YOU KNOW, MANAGE THAT SOMETIMES.

BUT I APPRECIATE THE SPORTS SO MUCH AND APPRECIATE ALL YOUR PROFESSIONALISM.

SO THANK YOU SO MUCH.

THANK YOU, CITY COUNCILMAN BALLER, DO YOU HAVE ANYTHING? THANK YOU FOR BEING HERE.

DEBORAH BRADFORD, UM, MCKINNEY COMMUNITY DEVELOPMENT CORPORATION.

WE'LL, UM, GO OVER TO DEBORAH BRADFORD FROM THE MCDC BOARD.

GOOD MORNING EVERYBODY.

UM, ON THIS THURSDAY AT OUR BOARD MEETING, WE WILL BE HEARING A TOTAL OF EIGHT RETAIL INFRASTRUCTURE GRANTS, AND WE WILL BE VOTING ON THOSE AT THE SESSION ON THIS THURSDAY.

OUR PROJECT, UH,

[00:05:01]

GRANT CYCLE, UH, NUMBER TWO, WILL OPEN ON MARCH THE 31ST.

UH, TS IS OPEN IN BOOMING.

I'M SURE MANY OF YOU HAVE BEEN THERE ALREADY.

THEY'VE HAD NUMEROUS, UH, EVENTS.

UM, SO WE'RE REALLY GLAD TO SEE THAT TAKING PLACE.

WE'VE HAD A COUPLE OF CHANGES ON OUR BOARD.

CATHERINE MCGILL, WHO'S BEEN A LONGSTANDING MEMBER, UH, WILL BE STEPPING DOWN.

UH, WE'RE GONNA CELEBRATE HER AT THIS COMING WEEKS BOARD MEETING AS WELL.

CHRIS WILKES WILL BE SEATED IN HER STEAD.

AND THEN WE WILL ALSO HAVE MARCUS LLOYD, WHO WILL BE OUR ALTERNATE THIS TIME.

I STAND FOR ANY QUESTIONS, ANYONE? ALL RIGHT.

THANK YOU, DEBORAH.

ALL RIGHT, MOVING ON TO MCKINNEY MAY STREET WITH ANDREW JONES.

GOOD MORNING, ANDREW JONES, UM, DIRECTOR OF, UH, THE CULTURAL DISTRICT.

UH, JUST A QUICK THANK YOUS, UH, TO AARON WARNER, KATIE SCOTT FOR JOINING WITH, UH, PETER KMA.

UH, THAT WAS A GREAT SPEAKER.

HE CAME OUT, HE TALKED ABOUT THE LOVE OF THE CITY, UM, LOVE OF CITIES, BUT PARTICULARLY HOW YOU CAN HELP FOSTER MORE LOVE FOR OUR CITY.

UH, IT WAS A GREAT TIME, AND THANK YOU FOR THAT.

UM, AGAIN, YOU KNOW, BIG SHOUT OUT TO THE, UH, TEXAS WOMEN'S ASSOCI SOCIETY THAT, UH, SPONSORED THE, UH, FIRST, UH, MECHANIC ASIAN FESTIVAL.

IT WAS A GREAT EVENT.

UH, WE ESTIMATE OVER 5,000 PEOPLE CAME IN THAT SMALL PARK.

IT FELT VERY SMALL THAT, THAT DAY .

UM, IT WAS, IT WAS AN AWESOME EVENT.

UM, AND IT WAS GREAT TO SEE SO MANY DIFFERENT MEMBERS OF OUR COMMUNITY THAT OFTEN DON'T COME TO DOWNTOWN FOR THESE SORT OF EVENTS.

SO, UH, THE JURIED ART SHOW IS COMING AT IMPACT.

UH, IF YOU'RE NOT FAMILIAR WITH THE JURY DARK SHOW, THIS IS A GREAT SHOW.

UH, WITH OUR CLUB MCKINNEY, WE HAVE CLOSE TO 50 DOZEN ARTWORKS THAT ARE SPONSORED AND, AND BROUGHT IN.

AND THEN THERE IS A, ULTIMATELY A GRAND PRIZE THAT, THAT LIVES IN THE HALLS OF IMPACT IN OUR PERMANENT ART, ART COLLECTION.

AND THEN WE ARE GEARING UP FOR, UH, THE SOLAR ECLIPSE, AS Y'ALL ARE VERY WELL AWARE OF.

UM, AND WE'RE DOING A ROOFTOP PARTY ON APRIL 8TH.

UM, WE DO HAVE A, A FEW TICKETS AVAILABLE, UM, IF, IF Y'ALL WERE INTERESTED IN ATTENDING THAT ONE.

AND THEN LAST BUT NOT LEAST, WE ARE GEARING UP FOR ARTS AND BLOOM APRIL 12TH THROUGH 14TH.

UM, THIS IS, UH, A FABULOUS ARTS EVENT.

UM, IN OUR CULTURAL DISTRICT.

WE HOST OVER 120 ARTISTS FROM, UH, LAST YEAR WAS OVER 35 DIFFERENT STATES, UM, WHICH IS GREAT.

AND WE, UH, ONE OF THE THINGS THAT WILL CONTINUE THIS YEAR, UH, WE HAD A LOCAL ARTS DEMONSTRATION GROUP.

AND WHILE WE HIGHLIGHT A LOT OF INDIVIDUAL ARTISTS AT THIS EVENT, WHAT WE WANTED ARTS AND BLOOM TO BECOME WAS A SHOWCASE OF OUR ARTS ORGANIZATIONS THAT ARE HERE ALL THE TIME.

AND WE HAD, AND WE WERE VERY BLESSED TO HAVE LOTS OF DIFFERENT ARTS ORGANIZATIONS THAT CONTRIBUTE SO MUCH THROUGHOUT THE YEAR.

AND SO WE CREATED A INTERACTIVE ARTS AREA, AN ARTS DEMO STAGE THAT WAS POPULATED WITH LOCAL ARTISTS ALL THE TIME.

AND THAT WAS, UH, SUCH A HUGE HIT LAST YEAR THAT WE'RE CONTINUING THAT AGAIN.

SO, AND THAT'S ALL THE UPDATES I HAVE.

I'LL STAND FOR ANY QUESTIONS.

NO, THANK YOU.

GOT, AS YOU WE'VE HEARD, EVENTS COMING.

ALRIGHT, MOVING TO THE VISIT MCKINNEY FINANCE COMMITTEE.

UH, YES, WE'VE GOT, UH, YOU'LL BE ABLE TO SEE THE THREE CHARTS THAT WE'LL BE REVIEWING TODAY.

UM, OUR, UM, IN TERMS OF OUR BUDGET REPORT AND AS HOW WE'RE DOING, WE'RE 42% THROUGH THE FISCAL YEAR AND OUR, WE ARE TRENDING ON TRACK, WHICH IS A GOOD THING.

AND, UH, AND I THINK AS, AS TREVOR MENTIONED, I THINK BUDGET WORKING ON NEXT YEAR'S BUDGET HAS ALREADY BEGUN.

SO, UH, THAT'S, THAT'S A POSITIVE.

UM, OUR, OUR, UM, COLLECTIONS, UM, HOT TECHS, UH, COLLECTIONS FOR FEBRUARY, WERE A LITTLE BIT DOWN, BUT IT REALLY BREAKS, PRETTY MUCH BREAKS EVEN IT'S POINT 11% ARE 238, UM, UH, LESS THAN LAST YEAR, BUT WE'RE STILL UP 6.8%.

SO THAT'S, THAT'S A VERY, THAT'S A POSITIVE.

IN TERMS OF OUR, OUR STAR REPORT, UH, THE OCCUPANCY WAS 69%, UH, HIGHER AND, UM, AND FROM 3.5% FROM LAST YEAR.

SO THAT'S A REAL, UH, REAL POSITIVE.

AND THE TREND IS THE SAME AS THE LAST FEW MONTHS.

SO THE THING I THINK FOR US TO KIND OF KEEP IN MIND IS TO REALLY LOOK AT WHAT'S GONNA HAPPEN WITH SOLAR AND SUMMER AND ALL THAT THAT IMPLIES.

SO WE'VE

[00:10:01]

SO IT'LL BE INTERESTING TO MONITOR THAT AND SEE HOW MUCH THAT CHANGES OR GROWS.

UM, MCKINNEY HAS THE HIGHEST OCCUPANCY RATE OF ALL OF OUR NEIGHBOR COMMUNITIES, BUT A LOWER AVERAGE DAILY RATE.

AND, UM, SO THAT'S REALLY ABOUT IT.

WANTED JUST TO KEEP IT BRIEF TODAY, BUT WE ARE PLANNING TO MAYBE, UH, WELL, ERIN IS HELP US AND, AND IN THE NEXT FEW MONTHS, MAYBE DO A STRATEGIC FOCUS ON OUR, UH, FINANCE SO THAT WE'RE REALLY KNOWLEDGEABLE.

I THINK THAT'S REALLY IMPORTANT AS BOARD MEMBERS THAT ALL OF US ARE AWARE OF HOW THINGS FUNCTION.

I'M LEARNING ALL THE TIME.

SO JUST BECAUSE I'M REPORTING DOESN'T MEAN I KNOW ALL OF IT, BUT I HAVE A GOOD TEACHER RIGHT HERE, SO THAT HELPS.

DIRECTOR'S REPORT WITH AARON WERNER.

ANY QUESTIONS? THANK YOU, JANIE.

WE'LL MOVE OVER TO OUR PARKS AND REC LIAISON, EMILY MCCLURE.

GOOD MORNING.

THE PARKS AND REC MEETING WAS MOST EXCITING 'CAUSE WE HAVE A NEW DIRECTOR NAMED AMY KINCAID, AND SHE WAS PRESENT AND I WAS ABLE TO MEET HER.

THEY HAVE NUMEROUS PARK RENOVATIONS ON THE DOCKET REGARDING RENOVATIONS IMPROVEMENTS, DEPENDENT ON THE BOND ELECTION ON MAY 3RD.

THERE'S A LOT OF EXCITING THINGS ON THE PIPELINE THAT I WAS JOB AFTER JOB, SO I CAN'T WAIT TO SEE WHAT THEY END UP DECIDING.

THE SOLAR PARTY THAT THE PARKS, UM, DEPARTMENT IS GOING TO HAPPEN AT GABE NESBITT, THAT IS AT NO COST.

SO WE EXPECT THAT TO BE COMPLETELY FULL OF RESIDENTS TAKING OPPORTUNITY.

AND I THINK THAT'S IT, A LOT TO COME ON PARKS AND REC.

WE'LL MOVE OVER TO OUR EXECUTIVE

[Executive Director’s Report]

ALRIGHT, UH, I'M GOING TO ALSO KEEP MY, UH, REPORT PRETTY QUICK TODAY SO WE CAN GET TO OUR, UH, SPECIAL GUEST.

UM, BUT A FEW THINGS, UH, I'D BE REMISS IF I, IF I DIDN'T, UH, MENTION THE, UH, EXCITING ANNOUNCEMENT THIS PAST, UH, WEEK OR TWO ABOUT THE NOTES LIVE AMPHITHEATER IN MCKINNEY.

UM, OBVIOUSLY A MASSIVE PROJECT, A MASSIVE, UH, COLLABORATION BETWEEN MULTIPLE CITY DEPARTMENTS, UM, BUT A 20,000 SEAT AMPHITHEATER FULLY COVERED WITH COOLING TECHNOLOGIES BECAUSE IT IS TEXAS AND, AND WE NEED THAT.

UM, BUT IT'S ANTICIPATED TO BRING 700,000 PEOPLE TO MCKINNEY, UM, EVERY YEAR WITH 20% OF THOSE STAYING OVERNIGHT.

AND SO, AS YOU, AS YOU CAN IMAGINE FROM A VISIT MCKINNEY STANDPOINT, WE'RE ECSTATIC.

OUR HOTELS ARE ECSTATIC ABOUT, UM, HAVING THAT IN THE COMMUNITY.

AND, UH, I TRULY BELIEVE THAT'S JUST THE BEGINNING OF, OF WHAT WILL COME FROM, FROM THAT ANNOUNCEMENT.

UH, THE ASIAN FESTIVAL WAS ALREADY MENTIONED, BUT, UH, WHAT A, WHAT A GREAT TESTAMENT TO, UH, WHAT WE HOPE TO SEE IN A TOURISM, UH, PROMOTED OR, UM, UH, FUNDED, UM, EVENT.

IN YEAR ONE, OVER 5,000 PEOPLE.

THEY WORKED WITH OUR STAFF THE ENTIRE PROCESS.

AND JUST KUDOS TO THAT TEAM.

SOLAR ECLIPSE IS RIGHT AROUND THE CORNER.

UH, WE'VE BEEN TALKING ABOUT IT FOR A LONG TIME, BUT IT'S ALMOST HERE APRIL 8TH.

UH, WE, WE HAVE, WE'RE ON OUR FIFTH ORDER OF SHIRTS, I BELIEVE, BETH.

AND, UH, WE CANNOT KEEP, WE HAVE A, A WAITING LIST, I THINK OF 40 PEOPLE, UH, FOR THE MCKINNEY SOLAR ECLIPSE SHIRT AGAIN.

UM, UH, WE WE'RE WAY OVER OUR CHRISTMAS SALES WITH OUR, OUR LITTLE RETAIL SHOP.

UM, UH, WE'RE ACTUALLY, UH, IF WE DIDN'T PASS IT YESTERDAY, WE'RE ALMOST AT $13,000 IN SALES JUST THIS MONTH.

UM, AND ALMOST ALL OF THAT IS PEOPLE COMING IN FOR SOLAR ECLIPSE STUFF.

IT'S, IT'S BEEN GREAT, BUT EVEN BIGGER THAN THAT, THAT IT'S REALLY FUN TO SELL THAT IT'S BETTER, IT'S EVEN BIGGER, IS BRINGING ALL OF THOSE PEOPLE INTO THE VISITOR CENTER.

AND ALL THE CONVERSATIONS WE'VE BEEN ABLE TO HAVE WITH PEOPLE THAT, THAT WEREN'T FAMILIAR WITH WHAT WE HAD TO OFFER.

THE BYRON NELSON, WE HAVE A GREAT PRESENTATION COMING UP, BUT OUR, OUR COMMITTEE AND STAFF, UM, INCLUDING COMMUNICATIONS AND MARKETING, HAVE BEEN WORKING, UH, UM, ON PREPARING FOR WHAT THE CITY DOES AT THAT, UM, FROM THE BOOTH STANDPOINT, THE MERCHANDISE OF THE BOOTH, HOW WE WELCOME VISITORS WHEN THEY COME IN.

UM, AND WE ALSO HAVE A NEW DISTRICT 1 21 EVENT PLANNED FOR SATURDAY NIGHT WITH OUR PARTNERS, SPG HOSPITALITY, UM, TO, UH, TO HAVE AN AFTER, UH, EVENT CELEBRATION, UM, KIND OF A 19TH HOLE, UH, EVENT THAT NIGHT.

SO WE'RE WORKING ON DETAILS ON THAT, BUT THAT'S GONNA BE A VISIT MCKINNEY SPONSORED, UH, EVENT.

WE'RE EXCITED FOR THAT.

UM, THE VISITORS GUIDE HAS BEEN COMPLETED.

UM, AND SO, UH, IF YOU WANNA HOLD THAT UP, EMILY.

YES, OVER HERE.

UM, THIS WAS A MASSIVE UNDERTAKING BY OUR STAFF, UH, HUGE PROJECT.

UH, OBVIOUSLY WE WORKED WITH TEXAS MONTHLY, BUT, UM, BUT BEST YOU MATE, UM, KUDOS TO YOU, MY FRIEND DOWN THERE FOR LITERALLY COMBING EVERY, EVERY SENTENCE ON THAT BOOK AND MOVING THINGS AROUND.

YOU DID AN AMAZING JOB.

UM, THE LAST TWO THINGS, THE AC MARRIOTT HAS BROKE GROUND IN MCKINNEY.

IF YOU HAVEN'T, UH, DRIVEN DOWN 1 21, THE CONSTRUCTION FENCING

[00:15:01]

IS UP.

UM, THAT'S 137 KEY, UH, FULL SERVICE, UH, ROOFTOP TERRACE BAR, UM, HOTEL THAT IS CURRENTLY UNDER CONSTRUCTION AND WILL BE A GREAT ADDITION TO, UH, TO OUR, OUR BUSINESS HERE.

THE LAST THING, UM, UH, FOR BOARD MEMBER MCGUIRE, WHO'S NOT HERE THIS MORNING, JUST THOUGHTS AND PRAYERS FOR HIM AS HE WENT HOME TO, UH, TO HANDLE A, A FAMILY EMERGENCY.

AND, UM, SO I ENCOURAGE YOU TO REACH OUT TO HIM IF YOU, IF YOU HAVE A CHANCE, BUT, UM, OBVIOUSLY WE MISS HIM THIS MORNING, SO THAT'S ALRIGHT.

THANK YOU, AARON.

MOVING ON TO REGULAR

[Update - 2024 CJ Cup Byron Nelson by the Salesmanship Club]

AGENDA ITEMS TWO FOUR DASH 1 3 6 4, AN UPDATE ON THE BYRON NELSON BY THE SALESMANSHIP CLUB DODGE AND LEXI.

OH, THANK YOU MADAM CHAIR BOARD, IT'S A PLEASURE TO BE HERE.

I CAN'T TELL YOU BEFORE I GET INTO MY REMARKS, HOW EXCITED WE ARE TO BRING TO BYRON NELSON TO MCKINNEY.

YOU GUYS HAVE BEEN UNBELIEVABLY WELCOMING, HELPFUL, UM, HELPING US KICK OFF WHAT'S GONNA BE A GREAT RUN.

WE'RE IN OUR FOURTH YEAR THIS YEAR, AND, UH, IN PROCESS OF SIGNING A 10 YEAR EXTENSION, UH, WITH THE PGA AND WITH CJ GROUP.

AND SO WHAT I'M GOING TO DO TODAY IS, IS, IS TO TALK A LITTLE BIT ABOUT THE SALESMANSHIP CLUB AND OUR PRIMARY BENEFICIARIES INSTITUTE.

UH, AND THEN I'M GONNA INTRODUCE, UH, OUR NEW TITLE SPONSOR, CJ GROUP, AND THEN ANY QUESTIONS THAT ANYBODY HAS ASK HER.

UM, SO AGAIN, DODGE CARTER.

UM, I'VE BEEN WITH THE SALESMANSHIP CLUB FOR 15 YEARS.

UH, THE SALESMANSHIP CLUB HAS BEEN IN EXISTENCE FOR 105 YEARS.

OUR PRIMARY BENEFICIARY IS THE ME INSTITUTE.

THE INSTITUTE DOES A COUPLE OF THINGS.

ONE IS THEY, UH, ARE FULLY, UM, FOCUSED ON MENTAL HEALTH AND MENTAL AWARENESS FOR BOTH OUR KIDS AND THEIR FAMILIES.

WE ALSO HAVE A SCHOOL THAT SUPPORTS ABOUT 250 KIDS, UH, PRE-K THROUGH FIVE.

LITTLE INTERESTING TIDBIT ABOUT OUR KIDS.

99% OF THE KIDS THAT GO THROUGH OUR SCHOOL END UP GRADUATING HIGH SCHOOL AND GOING ON TO HIGHER EDUCATION.

SO WE'RE VERY PROUD OF THE FACT THAT WE'RE TAKING KIDS THAT HAVE CHALLENGES MAKING A DIFFERENCE IN THEIR LIVES THROUGH OUR WONDERFUL STAFF AT OUS INSTITUTE AND SENDING THEM ON TO BIGGER AND BETTER THINGS.

THE LAST THING THAT OUS REALLY FOCUSES ON IS EXPORTING THAT TRAINING THAT WE DO AND IMPLEMENT AT OUS INSTITUTE ALL ACROSS THE COUNTRY.

WE HAVE A PROGRAM CALLED CHANGING THE ODDS THAT'S HELD EVERY YEAR WHERE WE HAVE ABOUT 4,000 EDUCATORS THAT COME ACROSS THE COUNTRY, AND WE SIT THERE WITH OUR STAFF, OUR TALENTED AND WONDERFUL STAFF, AND EXPORT ALL THE THINGS THAT WE'VE LEARNED, UM, OVER, OVER THE YEARS AND HELP PROMOTE MENTAL HEALTH AND, AND MENTAL AWARENESS.

SO THAT'S A LITTLE BIT ABOUT WHAT THE PRIMARY BENEFICIARY OF THE SETTLEMENT SHIP CLUB DOES.

OUR PRIMARY, UH, FOCUS AND, AND OUR PRIMARY WAY TO RAISE MONEY IS THE, THE BYRON NELSON.

THE BYRON NELSON, HAS BEEN IN EXISTENCE SINCE 1969, BEEN IN A NUMBER OF DIFFERENT LOCATIONS.

IT TOOK US A WHILE TO FIND THE RIGHT ONE, AND WE FOUND IT FOUR YEARS AGO HERE IN MCKINNEY AT TPC CRAIG RANCH.

OVER THE YEARS, WE'VE DONATED ABOUT $190 MILLION TO A MENACE INSTITUTE.

SO WE'RE, WE'RE, UH, I THINK THE LEADER IN THE CLUBHOUSE IN RAISING MONEY FOR THE PGA TOUR ACROSS THAT.

AND IT'S SOMETHING THAT WE'RE VERY, UH, UH, VERY PROUD OF.

YOU KNOW, AS IT RELATES TO OUR NEW TITLE SPONSOR, CJ GROUP IS A MAJOR INTERNATIONAL CONGLOMERATE OUT OF KOREA.

UM, THEY ARE IN FOOD, THEY'RE IN LOGISTICS.

UH, THEY ALSO HAVE AN AFFILIATE COMPANY THAT YOU MAY HAVE HEARD OF CALLED SAMSUNG.

SO IT'S ABOUT A $3 TRILLION BUSINESS.

AND WE COULDN'T BE MORE EXCITED, UM, TO HAVE CJ GROUP AS PART OF OUR TOURNAMENT.

THEY, IN FACT, ARE BRINGING ABOUT 15 REPRESENTATIVES STARTING APRIL 15TH TO MCKINNEY TO WORK WITH US ON IMPLEMENTING THE CJ GROUP HAS PUT ON THEIR OWN TOURNAMENTS.

UH, IS THE ONE HERE IN THE STATES.

IT WAS IN SOUTH CAROLINA.

SO THAT'S GONNA BECOME, THEY, THEY'RE MESHING THEIR EXPERTISE IN RUNNING THAT TOURNAMENT WITH WHAT WE DO AT THE BYRON NELSON.

AND SO WE'RE REALLY EXCITED ABOUT BRINGING THAT ALL TOGETHER.

UM, YOU KNOW, CJ GROUP ALSO IS GOING TO HAVE A, A SIGNIFICANT FOCUS AS THE FACT THAT THEIR PRIMARY BUSINESS IS FOOD BIBI GO IS THEIR FROZEN BRAND THAT YOU MAY SEE IN THE FREEZER SECTION AT YOUR STORES, BUT THEY'RE GONNA HAVE A, A BIG FOCUS ON THAT.

THEY'RE WORKING WITH THE KOREAN CONTINGENCY HERE IN MCKINNEY AS WELL, IN PROMOTING THAT.

AND SO WE JUST COULDN'T BE MORE EXCITED ABOUT THAT.

JUST SOME ECONOMIC IMPACT.

STATS 2023, THE IMPACT TO MCKINNEY WAS $81 MILLION.

THAT'S UP FROM $55 MILLION IN

[00:20:01]

2022.

UM, WE HAVE A SUSTAINABLE SUSTAINABILITY PROGRAM WITH THE COLLIN COUNTY MASTER GARDENERS, UH, FOOD DONATION.

WE DONATED ABOUT 7,500 POUNDS OF FOOD TO ABOUT SIX DIFFERENT PANTRIES IN MCKINNEY LAST YEAR.

UM, YOU KNOW, AGAIN, THIS IS OUR FOURTH YEAR.

UM, THERE, THERE HAS BEEN A NUMBER OF CHANGES, BUT THE BIGGEST CHANGE THAT WE'RE DOING IN 2024 IS, IF YOU KNOW WHAT RANCH 17 IS, THAT'S OUR WHOLE THEATER THAT WE HAVE ON WHOLE NUMBER 17, UH, AT TPC CRAIG RANCH, WE'RE OPENING THAT UP MUCH MORE TO, UH, THE, TO THE GENERAL PUBLIC THIS YEAR.

BEFORE IT WAS A NUMBER OF WHAT WE CALL SHARED AND, AND PRIVATE VENUES.

BUT THIS YEAR, UH, OVER HALF OF THAT IS GONNA BE A PUBLIC VENUE, WHICH I'M REALLY EXCITED ABOUT FOR A NUMBER OF REASONS, PRIMARILY BECAUSE I THINK THE VI THE VIBE THAT'S GONNA BE CREATED AT THAT HOLE IS GONNA BE SOMETHING THAT WE'RE ALL GOING TO REALLY ENJOY.

SO WE COULDN'T BE MORE EXCITED ABOUT WHAT WE'RE DOING AND HOW WE'RE GETTING TO DO THIS WITH THE FOLKS IN MCKINNEY.

UM, IT'S BEEN SUCH A BREATH OF FRESH AIR FOR US.

MCKINNEY POLICE FIRE, EMT HAS BEEN FANTASTIC AND WE'RE WORKING, WE LOVE WORKING WITH THOSE GUYS AND GALS AND, AND JUST COULDN'T BE HAPPIER.

UM, KIND OF A SPOTTY PRESENTATION, BUT I'M MORE THAN HAPPY TO TRY AND ANSWER ANY QUESTIONS.

AND IF I CAN'T, LEXI, CAN'T ANYBODY HAVE ANY QUESTIONS? DO YOU HAVE ANYTHING TO ADD? LEXI? UM, I WOULD WANNA ADD THIS JUST TO ECHO CERTAINLY WHAT DODGE HAS ALREADY MENTIONED.

WE CANNOT SAY ENOUGH.

UM, OUR DEEP GRATITUDE AND APPRECIATION TO YOU GUYS HOTELS, OBVIOUSLY, ESPECIALLY FROM THE PLAYER PERSPECTIVE, BUT CERTAINLY, UM, JUST LOGISTICALLY FROM, UH, OUR PERSPECTIVE STAFF, UH, AND OTHERS, UH, IS INCREDIBLY IMPORTANT.

AND YOU GUYS HAVE BEEN SO SUPPORTIVE AND SO HELPFUL.

UH, CERTAINLY COUNCILMEN, COUNCILMAN CLAUDIER, COUNCILMAN BELLA.

UM, SO MANY DIFFERENT WAYS WE'VE BEEN ABLE TO CONNECT WITH ORGANIZATIONS HERE IN MCKINNEY, AND SO WE JUST CONTINUE TO APPRECIATE THE PARTNERSHIP.

UM, CERTAINLY IF THERE'S ANY EXPERIENCES YOU WANNA HAVE ONCE YOU COME ON PROPERTY FOR THE TOURNAMENT, PLEASE REACH OUT BECAUSE WE WANNA MAKE SURE YOU AND YOUR GUESTS HAVE AN INCREDIBLE EXPERIENCE AT THE TOURNAMENT THIS YEAR.

ONE, ONE LAST LITTLE FACT.

LEXI.

MM-HMM.

WE'RE GONNA HAVE ABOUT 1300 VOLUNTEERS AT THE TOURNAMENT THIS YEAR, AND HALF OF THAT COME FROM COLLIN COUNTY.

YEAH, SO I MEAN, JUST WHAT A GREAT HAND IN GLOVE RELATIONSHIP WE HAVE WITH, WITH EVERYBODY HERE, AND WE COULDN'T BE MORE EXCITED.

MAY 2ND THROUGH THE FIFTH.

YEP.

THANK YOU VERY MUCH.

THAT'S CERTAINLY UNDERSTANDABLE.

AND I'LL SAY THE FEELING IS MUTUAL.

WE ARE VERY APPRECIATIVE TO HAVE YOU HERE.

[Presentation - HOT Tax by Scott Joslove, President and CEO of Texas Hotel & Lodging Associates]

FOUR DASH 1 365.

A PRESENTATION OF HOT TAX BY A SCOTT JOLO, A PRESIDENT AND CEO OF TEXAS HOTEL AND LODGING ASSOCIATES.

UH, IT'S AN HONOR TO BE HERE WITH ALL OF YOU.

I HAVE BEEN THE PRESIDENT, CEO, OF THE TEXAS HOTEL LODGING ASSOCIATION NOW FOR 24 YEARS.

BUT PRIOR TO THAT, MY BACKGROUND IS ACTUALLY IN MUNICIPAL GOVERNMENTS.

I HAVE A MASTER'S IN CITY MANAGEMENT AND A LAW DEGREE.

I WAS THE LEAD TAX ATTORNEY FOR TML AND I ALSO WAS THE CHIEF OF MUNICIPAL AFFAIRS FOR TWO ATTORNEY GENERALS IN TEXAS.

SO CITY, THIS IS COMING HOME FOR ME, TALKING TO A CITY COUNCIL AND, AND, AND, AND BOARDS THAT ARE APPOINTED BY CITIES.

SO IT'S, IT'S, THANK YOU FOR ALLOWING ME TO COME HOME.

IN FACT, I WAS SO EXCITED TO BE HERE.

I WROTE A POEM, , COME AND LISTEN TO THE STORY OF A BOY NAMED SCOTT, A POOR CITY LAWYER, DOESN'T FEED HIS DOGS A LOT.

AND THEN CAME AARON WERNER ASKING FOR A SPEECH.

AND WITHOUT SUFFICIENT CAUTION, SCOTT HAPPILY AGREED ON HOTEL TAX, WHAT YOU CAN EXPEND.

WELL, THE FIRST THING YOU KNOW, OLD SCOTT'S A WORRIED SOUL.

HE READ THE HOTEL STATUTES AND THE LAW.

JUST THINK SO.

HE TALKED TO CITY ATTORNEYS, GAVE ALL THE BEST THE RING, AND LEARNED THAT EACH ATTORNEY TOLD THEIR FOLKS A DIFFERENT THING.

SO IT WAS BACK TO THE BOOKS TO FIGURE OUT THE LAW AND TRY TO EXPLAIN IT WITHOUT COMMITTING AFO PAUL, FOR THE BATTLES ON THESE ISSUES.

AND THE COURTS HAVE NOT BEEN FOUGHT.

AND THE ADVICE YOU'RE GOING TO GIVE IS JUST THIS AWESOME LAWYER'S THOUGHTS.

SMART ONES, 30 YEARS EXPERIENCE.

ASK HARD QUESTIONS, PLEASE.

ALRIGHT, THE, UH, HOW MANY OTHER SPEAKERS DID A POEM FOR Y'ALL? YOU'RE THE FIRST.

YEAH.

FIRST AND MAY THE LAST.

YOU MIGHT PUT A BAND ON IT.

THERE'S A LOT OF GOOD NEWS.

IT'S, IT'S FUNNY, I, I WENT TO THE WRONG, UH, SPOT FOR THE MEETING THIS MORNING OVER.

I WENT STRAIGHT TO THE CVB OFFICE AND IT GAVE ME A CHANCE TO WALK THROUGH YOUR DOWNTOWN, WHICH IS UNBELIEVABLY BEAUTIFUL.

AND I STARTED THINKING WHAT WOULD

[00:25:01]

BE THE RIGHT SORT OF SLOGAN FOR Y'ALL? AND, AND, AND, UH, AND TO ME IT WAS, COME BACK AND YOU'LL WANT TO COME AGAIN, BECAUSE THERE IS SO MUCH THAT PEOPLE MAY NOT REALIZE ABOUT THE HISTORY AND THE BEAUTY AND ALL THAT'S GOING ON.

UH, I TALKED TO AARON, HE TOLD ME ABOUT YOU HAVE FOUR ACTIVE HOTEL PROJECTS.

YOU, YOU MENTIONED THE 20,000 STREET AMPHITHEATER.

YOU'RE ONE OF THE FEW CITIES THAT HAS A COLLECTION AGREEMENT, VOLUNTARY COLLECTION AGREEMENT WITH AIRBNB, WHICH ARE, UH, MANY CITIES WOULD LIKE TO HAVE BUT DON'T HAVE.

YOU HAVE A FULL SERVICE HOTEL, WHICH IS WONDERFUL WITH THE SHERATON, AS WELL AS OTHER SUPPORTING AND, YOU KNOW, AND OTHER, UH, UH, UH, SELECT SERVICE HOTELS.

AND YOU HAVE A THRIVING SPORTS ACTIVITY WITH DIFFERENT TOURNAMENTS.

I KNOW YOU TALKED ABOUT THE GOLF TOURNAMENT, WHICH IS EXCITING, AS WELL AS OTHER SPORTS FACILITIES THAT, UH, ARE, ARE YIELDING A LOT OF HOTEL ACTIVITY.

A WONDERFUL MCKINNEY PERFORMING ARTS CENTER.

AND, UM, AND ONE OF, AND I AND, AND, AND A THRIVING OCCUPANCY RATE OF ABOUT 70%, WHICH IS LEADING YOUR AREA AND THE STATE.

AND YOU HAVE ONE OF THE BRIGHTEST, UH, NEW CVB EXECS IN THE, IN THE STATE.

MM-HMM, .

SO, UM, YOU ARE TRULY, TRULY FORTUNATE.

UM, I LOOKED AT THE, I'M KIND OF A NUMBERS GUY, AND I LOOKED AT, UH, THE NUMBERS ON, AND YOU WERE TALKING ABOUT KNOWING A LITTLE BIT MORE ABOUT THE FINANCES.

AND SO I STUDIED ALL THE NUMBERS FOR YOUR BUDGET AND HOW IT RELATES TO THE OVERALL CITY BUDGET.

AND THE GOOD NEWS IS THAT YOU, UH, HAVE $6.6 MILLION IN RESERVES.

SO THERE'S A LOT OF OPPORTUNITY FOR YOU TO DREAM AND TO ACTUALIZE WHAT YOU WANT TO ACCOMPLISH BECAUSE YOU HAVE SOME MONEY IN RESERVES THAT YOU CAN USE TOWARDS FUTURE OPPORTUNITIES, WHETHER THAT BE MORE INVESTMENTS IN MARKETING, MORE INVESTMENTS IN SPORTS, UH, ACTIVITIES OR OTHER EVENTS THAT YOU COULD OFFER.

YOU HAVE THAT FLEXIBILITY AND WE'D LOVE TO PARTNER WITH YOU ON ALL OF THE OPTIONS THAT ARE AVAILABLE UNDER STATE LAW.

OF THAT 6.6 MILLION, YOU'RE GONNA BE ADDING ANOTHER 69,000 TO IT, OR I'M, I'M SORRY, ANOTHER 697,000 TO IT AFTER THIS BUDGET CYCLE.

SO THE ACTUAL NUMBER AT THE END OF 2024 WILL BE 7.3 MILLION IN RESERVE.

IRV, UH, WHERE ARE YOUR CURRENT MONIES, UH, COMING IN AND WHAT'S BEING EXPENDED? YOU GET ABOUT 2.9 MILLION IN HOTEL TAX AND INTEREST ON A HOTEL TAX RELATED HOTEL.

TAX REVENUES 2.9 MILLION.

YOU SPEND ABOUT 2.2 MILLION.

THAT'S WHERE WE GET THAT 697,697,000 SURPLUS THAT'LL GO BACK INTO YOUR, UH, HOTEL TAX FUND.

WHERE DOES THE HOTEL TAX GO? ABOUT 1.2 MILLION GOES TO YOUR CVB.

UM, AND ABOUT A MILLION, UH, GOES TO THE CITY.

THEY SPEND ABOUT 202,000 ON AN ADMINISTRATIVE TRANSFER TO COVER THEIR INTERNAL COSTS, WHETHER THAT'S A CITY MANAGER, UM, OTHER CITY DEPARTMENT, UH, FOLKS IN HANDLING THE ADMINISTRATIVE COSTS OF, OF DOING THE HOTEL TAX.

200,000 GOES FOR A A CERTIFICATE OBLIGATION, WHICH I BELIEVE IS FOR THE SHERATON.

AND THAT PROJECT, UM, 75,000 GOES TO, UH, MCKINNEY PERFORMING ARTS CENTER AND 30,000 FOR PUBLIC ARTS.

THE REMAINING OF ROUGHLY 500,000 GOES TO DIFFERENT CITY SERVICES THAT RELATE TO TOURISM.

SO YOU HAVE AN OPPORTUNITY, UH, AND, AND WE'RE HERE TO HELP YOU ON EVERY AVAILABLE OPTION THAT IS LEGAL UNDER STATE LAW.

ONE IS YOU HAVE AUTHORITY FOR A QUALIFIED HOTEL PROJECT THAT WE HELPED YOU PASS THAT STATE LAW THAT SAYS IF YOU END UP DOING A PRO A HOTEL WITHIN A THOUSAND FEET OF YOUR EXISTING CIVIC CENTER, THE STATE WILL GIVE YOU BACK REBATES OF STATE SALES TAX AND HOTEL TAX.

SO IF IN THE FUTURE YOU WANNA LOOK AT ANOTHER FULL SERVICE HOTEL OR ANY OTHER TYPE OF HOTEL PROJECT, WITHIN A THOUSAND FEET, THERE ARE AVAILABLE REBATES FROM THE STATE THAT COST THE CITY NOTHING, BUT CAN BE PART OF THE DEVELOPMENT DEAL, IF THAT'S WHAT YOU WANT.

I KNOW YOU HAVE FOUR ACTIVE HOTEL PROJECTS, BUT IF ANY OF THEM ARE WITHIN THAT AREA AND YOUR CIVIC CENTER HAS 10,000 SQUARE FEET, YOU CAN GO AHEAD AND LOOK AT AT AT, UM, DOES YOUR CIVIC CENTER HAVE 10,000 SQUARE FEET OF SPACE? YES.

YES.

OF THAT HOTEL TAX AS YOU WANT, BUT YOU, THERE'S AN ROI COMPONENT.

THEN YOU QUALIFY AS A CIVIC CENTER, UM, UNDER THAT STATUTE.

SO YOU HAVE THAT AUTHORITY.

WE HELPED, UH, PASS IT.

IT'S UNIQUE IN TEXAS BECAUSE IT ALLOWS YOU TO DO IT ON NON-CITY OWNED LAND.

SO IT COULD BE PRIVATELY OWNED, IT DOESN'T HAVE TO BE CITY OWNED.

AND SO THAT'S AVAILABLE UNDER CURRENT LAW.

ONE AUTHORITY YOU DON'T HAVE UNDER CURRENT LAW, WHICH WE'D LOVE TO PARTNER WITH YOU ON, ESPECIALLY WITH ALL YOUR SPORTS ACTIVITIES, IS THE ABILITY TO USE, UH, HOTEL TAX FOR SPORTS FACILITIES.

AND THAT'S AUTHORITY THAT SAYS YOU CAN SPEND AS MUCH

[00:30:01]

YEAH.

IF YOU SPEND 500,000 ON MAYBE A SOCCER, UH, EXISTING SOCCER TOURNAMENT SITE, THEN YOU HAVE TO SHOW 500,000 IN HOTEL NIGHTS THAT ARE GENERATED OVER A FIVE YEAR PERIOD FROM ACTIVITIES AT THAT SITE.

NOW, THAT COULD BE THE EXISTING HOTEL ACTIVITY THAT'S ALREADY GOING ON FROM ALL THE TOURNAMENTS THAT ARE GOING ON AT THAT FACILITY.

IT DOESN'T HAVE TO BE NEW.

THERE JUST HAS TO BE HOWEVER MUCH YOU SPEND HAS TO BE COMMENSURATE, YOU KNOW, UM, WITH FIVE YEARS OF ACTIVITY AT THAT FACILITY.

SO WE HAVE A LOT OF CITIES THAT ARE USING THAT AUTHORITY TO BUMP UP FRISCO AND OTHER COMMUNITIES ARE USING IT TO BUMP UP THEIR SPORTS ACTIVITY AND TO INVEST OUTTA THE HOTEL TAX.

I KNOW THAT'S PART OF YOUR CURRENT ACTIVITY AND YOUR FUTURE, BUT IF YOU WANT THAT, WE WOULD JUST NEED TO WORK WITH THE CITY COUNCIL AND YOUR LEGISLATIVE DELEGATION TO GET A LOCAL BILL TO ADD MCKINNEY TO THAT LIST.

SO I JUST WANTED TO THROW THAT OUT.

UM, THE MCKINNEY CVB GETS ABOUT 1.2 MILLION.

LIKE I SAID, 703,000 IS SPENT ON STAFF SERVICES.

UH, OTHER SERVICES ARE 542,000, ABOUT 43,000 FOR RENT.

THEY END UP WITH AN END BALANCE OF 21,000.

SO IT'S, IT'S, IT, IT'S WELL SPENT.

IT'S, IT'S ARTICULATED WELL IN YOUR BUDGET.

AND, UM, LET ME TALK ABOUT THE HOTEL TAX AND WHAT CHAPTER 3 51 OF THE TAX CODE SAYS.

BACK IN 1989, I WROTE AN ARTICLE CALLED WHAT CITIES NEED TO KNOW TO ADMINISTER THE LOCAL HOTEL TAX.

AARON, IF I HAVEN'T SENT IT TO YOU, I'LL SEND IT TO YOU AND YOU CAN SHARE WITH EVERYBODY WHO'S HERE AND IN THE AUDIENCE.

IT COVERS THE TWO PART TEST FOR EXPENDING THE LOCAL HOTEL TAX.

AND IT GOES INTO THE NINE CATEGORIES FOR SPENDING THE TAX.

AND YOU CAN DO A SEARCH UNDER THE TERM MCKINNEY FOR THAT ARTICLE, IN THAT ARTICLE IN YOUR EMAILED COPY.

AND IT'LL PULL UP ANY SPECIAL STATUTES.

IT'LL APPLY TO MCKINNEY AS WELL AS TO OTHER CITIES IF YOU PULL UP THEIR CITIES.

LET ME TALK ABOUT THE TWO PART TEST.

THE FIRST PART OF THE TEST IS EVERY EXPENDITURE OF THE HOTEL TAX OF THE LOCAL HOTEL TEST MUST DIRECTLY PROMOTE TOURISM AND THE HOTEL AND CONVENTION INDUSTRY.

NOW, YOU MAY BE WONDERING, WHY WOULD A TAX A LOCAL, A LOCAL TAX HAVE TO SPECIFICALLY AFFECT ONE INDUSTRY? 'CAUSE NORMALLY WHAT A CITY DOES, YOU PROMOTE HEALTH AND SAFETY AND GENERAL WELFARE.

WHY IS THIS TAX SPECIFICALLY DEDICATED TO THE HOTEL AND CONVENTION INDUSTRY? WELL, SOMETHING A LOT OF PEOPLE DON'T KNOW IS BACK WHEN THE HOTEL TAX WAS FIRST PROPOSED, IT BROUGHT IN ATTRACTIONS UNDER THE LAW THAT THEY WOULD HAVE TO, UH, IT WAS A TOURISM TAX THAT WOULD APPLY TO ATTRACTIONS, IT WOULD APPLY TO RESTAURANTS, AND IT WOULD APPLY TO HOTELS.

WELL, RESTAURANTS GOT OUT OF IT, ATTRACTIONS GOT OUT OF IT.

AND THE ONLY ENTITY THAT STAYED IN IT WERE THE HOTEL INDUSTRY.

AND THE AGREEMENT TO COMPROMISE WITH THE LEGISLATURE AT THAT TIME OVER 50 YEARS AGO WAS THAT IF WE'RE GONNA STAY IN THIS, THERE MUST BE A DIRECT ENHANCEMENT OF HOTEL ACTIVITY AND CONVENTION ACTIVITY WITH WHATEVER YOU SPEND THE MONEY ON.

'CAUSE IF YOU THINK ABOUT IT, IF YOU HAVE A BIG FESTIVAL, UH, HERE IN MCKINNEY, LIKE YOU HAD THE ASIAN FESTIVAL RECENTLY, IF I WERE TO CALL GLEN HAGER THE COMPTROLLER FOR THE STATE OF TEXAS, WHAT WOULD BE THE TOP BUSINESS THAT WOULD BENEFIT PROBABLY FROM YOUR ASIAN FESTIVAL? WHICH BUSINESS SECTOR? RESTAURANTS? YEAH, ALMOST ALWAYS.

RESTAURANTS WILL BE TOP SECOND, RETAIL, THIRD CONVENIENCE STORES, GAS STATIONS, FOURTH LIQUOR, THE PARTY MAY BE CONTINUING.

FIFTH AND LAST ON THE LIST IS TYPICALLY HOTELS.

IT'S NOT THAT WE DON'T BENEFIT, BUT WE'RE NOT BY ANY MEANS THE TOP BENEFICIARY, EVEN IN THE TOP TWO OR THREE, EVEN WHEN WE'RE SELLING OUT, USUALLY LIKE IN THE SUPER BOWL, RESTAURANTS ARE DOING MUCH, MUCH BETTER.

UM, SO THE THEORY IS AT LEAST WE KNEW THAT IF WE, IF WE INVESTED THOSE TOURISM DOLLARS IN, IN A FESTIVAL OR DIFFERENT ACTIVITIES, WE KNOW RESTAURANTS, RETAIL, CONVENIENCE STORES, GAS STATION, LIQUOR STORES WILL ALL DO WELL.

WE JUST WANT TO MAKE SURE IN THE STATUTE THAT HOTELS WOULD HAVE SOME OF THAT ACTION.

IT WOULDN'T JUST BE DAY TRAFFIC WHERE THEY COME IN AND THEY COME OUT WHERE THEY, WHERE THEY STAY FOR THE DAY AND THEN THEY GO BACK HOME.

SO THAT'S, THAT'S THE SPECIAL DEDICATED NATURE OF THE HOTEL TAX.

SO AGAIN, EVERY EXPENDITURE, NOT MOST EVERY EXPENDITURE MUST IT'S MANDATORY, MUST DIRECTLY PROMOTE.

NOW, I CAN TELL YOU AS A LAWYER, IT'S VERY UNUSUAL FOR A STATUTE TO REQUIRE YOU TO DIRECTLY PROMOTE.

USUALLY IT'S, YOU MUST DO THIS OR DO THAT.

UM, BUT NOT TO DIRECTLY ACCOMPLISHMENT.

THE REASON THEY PUT DIRECTLY PROMOTE IS EVERYTHING YOU DO TO MAKE MCKINNEY NICER.

IF YOU PUT IN BETTER SIDEWALKS, LIGHTING, LANDSCAPING, THINGS

[00:35:01]

LIKE THAT, THAT ALL PROMOTES A NICER EXPERIENCE FOR THE TOURISTS.

BUT IT DOESN'T DIRECTLY, PEOPLE DON'T SAY, I'M GONNA COME VISIT MCKINNEY BECAUSE THEY HAVE NEW SIDEWALKS.

I UNDERSTAND.

YOU KNOW, OR THEY JUST INVESTED SOME MORE IN THEIR LANDSCAPING OR IN THEIR LIGHTING.

UM, IT MUST DIRECTLY PROMOTE TOURISM.

TOURISM IS DEFINED AS BRINGING PEOPLE FROM ANOTHER CITY OR ANOTHER COUNTY TO YOUR AREA.

AND IT, AND IT MUST DIRECTLY PROMOTE HOTEL AND CONVENTION INDUSTRY.

AND THAT'S PUTTING HEADS IN BEDS, IF YOU WILL, OR BRINGING A BANQUET OR AN EVENT TO A HOTEL, MAYBE A MEETING AND HAVING MEETING ROOM OR A CATERING.

UH, CONTRACTORS, LIKE WITH THE SHERATON BOSLEY WHERE THEY HAVE FULL SERVICE, IT'S PROMOTING THE CONVENTION AND HOTEL INDUSTRY.

EVERY EXPENDITURE NEEDS TO HAVE THAT, THAT, THAT, THAT, UH, UH, PURPOSE.

IF IT DOESN'T MEET THOUGH THAT TEST, IT DOESN'T MEAN YOU CAN'T SPEND CITY FUNDS.

YOU COULD SPEND YOUR GENERAL PROPERTY TAX, YOUR GENERAL SALES TAX OR ON OTHER UNDEDICATED REVENUES.

IT JUST MEANS THAT THE DEDICATED HOTEL TAX WOULD NOT BE AVAILABLE.

SO THAT'S THE FIRST PART.

YOU NEED TO SHOW THE IMPACT ON TOURISM AND THE HOTEL AND CONVENTION INDUSTRY, THE DIRECT IMPACT.

THE SECOND PART IS YOU NEED TO FIT EVERY EXPENDITURE INTO ONE OF NINE CATEGORIES.

THE FIRST CATEGORY IS CONVENTION CENTERS.

NOW THAT COULD BE ANY CIVIC FACILITY, BUT IT HAS TO BE PRIMARILY USED.

HOW DO YOU TEST? PRIMARILY OVER 50% OF ITS USAGE NEEDS TO BE TO HOST CONVENTIONS AND OUT OF TOWN GUESTS AT MEETINGS.

OVER 50% PRIMARY USE.

YOU COULD LOOK AT IT BY THE NUMBER OF BOOKINGS, OR YOU COULD LOOK AT IT BY THE NUMBER OF ATTENDEES.

IF YOU HAD 10,000 ATTENDEES AT THAT FACILITY AND 5,001 WERE CONVENTION FOLKS OR GROUP MEETINGS OF OUT OF TOWN EVENTS, YOU MEET THE PRIMARY USAGE TEST.

SAME THING FOR IF THERE ARE A HUNDRED EVENTS AND 51 OF THEM MET THE CRITERIA, IT'D BE PRIMARILY USED.

THAT'S CONVENTION CENTERS.

IT ALSO INCLUDES THE CATEGORY OF A VISITOR INFORMATION CENTER.

AND WE AMENDED THAT DEFINITION.

LAST STATUTE TO SPECIFICALLY PROVIDE, IT HAS TO BE PRIMARILY USED AS WELL TO DISTRIBUTE VISITOR INFORMATION MATERIAL.

WE HAD A PROBLEM WHERE A CITY DECLARED THEIR PUBLIC INFORMATION DESK, WHICH DIRECTED PEOPLE TO THE UTILITY DEPARTMENT AND WHERE THE MUNICIPAL COURT WAS AS THEIR VISITOR CENTER, EVEN THOUGH THERE WERE NO VISITORS COMING IN AND THERE WERE NO VISITORS ASKING FOR DIRECTIONS AT THIS PUBLIC, YOU KNOW, UH, UH, CITIZEN BOOTH.

SO WE REDEFINED IT TO SAY IT HAS TO BE PRIMARILY USED FOR VISITOR INFORMATION DISTRIBUTION, YOU KNOW, UH, UH, INFORMATION DISTRIBUTION FOR VISITORS.

UH, SO THAT'S, UH, CATEGORY NUMBER ONE.

CONVENTION CENTERS, VISITOR INFORMATION CENTERS.

ANY QUESTIONS ABOUT CATEGORY NUMBER ONE? CATEGORY NUMBER TWO IS REGISTRATION OF CONVENTION DELEGATES.

THAT'S A CATEGORY OF A BIG CITY EXPENSE WHERE IF YOU'RE GIVEN OUT DIFFERENT PACKETS AND FOLDERS, YOU CAN PAY THOSE FOLKS ON A HOTEL TAX.

ANY QUESTIONS ABOUT THAT CATEGORY NUMBER THREE IS ADVERTISING AND PROMOTION.

THIS IS, IF YOU BUILD IT, THEY WILL COME AS A NECESSARILY TRUE.

YOU GOTTA MARKET IT.

MOST CITIES SPEND BETWEEN 30 AND 70% ON MARKETING AND ADVERTISING.

THAT COULD BE, UH, MARKETING AND PROMOTION CAN BE SPONSORING AN EVENT.

UH, IT COULD BE COVERING THE COST FOR THE, UH, UH, SOME OF THE COSTS FOR PUTTING ON THE EVENT IN ORDER TO BRING IT TO YOUR TOWN.

IT COULD BE DOING GIVEAWAYS OR THINGS FOR TOURISTS WHO ARE COMING INTO A PART OF A TOURNAMENT OR A MAJOR EVENT, UM, LIKE YOUR ECLIPSE T-SHIRTS OR THINGS LIKE THAT.

PROMOTING, UH, THE ACTIVITY, HAVING PEOPLE KEEP MCKINNEY AS TOP OF MIND ADVERTISING PROMOTION.

ONE OF THE THINGS THAT CAN ALSO BE IS GETTING ALL YOUR HOTELS LISTED ON VARIOUS TOURISM WEBSITES.

AND SO I'M TALKING TO AARON ABOUT THAT, ABOUT SOME TOURISM WEBSITES SO WE CAN PARTNER WITH HIM ON TO GET ALL THE HOTELS LISTED.

ANY QUESTIONS ABOUT ADVERTISING AND PROMOTION? ADVERTISING AND PROMOTION IS ALSO A GOOD CATCHALL CATEGORY.

LET'S SAY YOU HAVE, UH, UH, UH, A GOLF TOURNAMENT.

WELL, A GOLF TOURNAMENT, UH, THERE'S SOME, WELL, GOLF TOURNAMENT WOULDN'T BE A GOOD EXAMPLE.

LET'S SAY YOU HAVE A CHILI COOKOFF, WELL, THERE'S NO CATEGORY FOR A CHILI COOKOFF, BUT YOU COULD ADVERTISE AND PROMOTE IT IF IT WAS ACTUALLY GOING TO BRING HOTEL ACTIVITY AND BRING PEOPLE FROM OUT OF TOWN AND STAYING.

UH, AND LET ME TALK ABOUT HOTEL ACTIVITY.

SOMETIMES HOTEL ACTIVITY IS PEOPLE ARE COMING IN JUST FOR THAT EVENT AND THAT'S WHAT THEY'RE, THEY'RE THEY'RE COMING IN FOR AND THEY GOT THE ROOMS AT A NEGOTIATED RATE.

SOMETIMES IT'S EXISTING GUESTS WHO ARE ALREADY HERE.

YOU KNOW, WE LIKE TO SAY, UM, PEOPLE AREN'T COMING INTO HOTELS JUST BECAUSE OUR TOWELS ARE SO FLUFFY THAT THEY CAN BARELY CLOSE THEIR SUITCASE WHEN

[00:40:01]

THEY LEAVE .

UM, PEOPLE ARE COMING IN BECAUSE OF THE BEAUTIFUL DOWNTOWN, BECAUSE OF THE INTERESTING EVENTS, BECAUSE OF THE HISTORY, BECAUSE OF THE GREAT RESTAURANTS, BECAUSE OF THE ACCESS TO, UH, UH, ALL THE THINGS THAT MAKE MCKINNEY INTERESTING AND FUN TO VISIT.

SO IT MAY NOT BE WHY THEY CAME, BUT IT'S SOMETHING THAT ELONGATED THEIR STAY AND SOMETHING THAT THEY FREQUENTED WHAT YOU WANNA AVOID SPENDING HOTEL TAX ON OUR EVENTS OR FACILITIES WHERE THEIR AUDIENCE IS PURELY LOCAL.

AND I ALWAYS ENCOURAGE PEOPLE TO GET A VISITOR LOG AND, AND DON'T JUST HAVE, WHERE ARE YOU FROM? ASK HAVE A LITTLE BOX ADDED AT THE, AT THE END OF THAT THAT SAYS, ARE YOU STAYING AT AN AREA LODGING FACILITY? WHETHER THAT BE AN AIRBNB OR HOTEL OR WHATEVER IN THE COMMUNITY THAT'LL TELL PEOPLE WHAT PERCENTAGE ARE SCHOOL KIDS VERSUS WHAT PERCENTAGE ARE HOTEL GUESTS VERSUS WHAT PERCENTAGE ARE, ARE OUT OF TOWN GUESTS, BUT THEY'RE STAYING WITH FAMILY OR FRIENDS OR THINGS LIKE THAT.

SO I WOULD ENCOURAGE YOU FOR ANY OF YOUR FACILITIES THAT ARE HOTEL TAX FUNDED, ASK THEM TO HAVE THAT IN THEIR VISITOR, IN THEIR VISITOR LOG.

THEY CAN ALSO HAVE THEIR, HAVE THEIR UH, UH, DOCENTS OR THEIR VOLUNTEERS OR THEIR STAFF ASK THOSE QUESTIONS TO PEOPLE AS THEY COME IN.

SO, ALRIGHT, CATEGORY NUMBER THREE WE TALKED ABOUT WAS ADVERTISING AND PROMOTION.

CATEGORY NUMBER FOUR, PROMOTION OF THE ARTS.

THIS IS VIRTUALLY EVERY ART FORM YOU CAN IMAGINE FROM THE PERFORMING ARTS TO SCULPTURE TO POETRY, TO DRAMATIC PRESENTATIONS TO, UM, EVERY ART FORM IS MENTIONED IN THAT STATUTE, BUT IT'S NOT ENOUGH THAT SOMETHING PROMOTE THE ARTS.

THERE WAS A, AN ATTORNEY GENERAL RULING WHERE THE CITY OF LAKEWAY ASKED, IN FACT, WE BRIEFED ON THIS ISSUE WHETHER OR NOT A QUILT DISPLAY, UM, WAS A, A FORM OF ART THAT COULD BE FUNDED BY THE HOTEL TAX.

WELL, EVERYBODY AGREED THAT QUILTING IS AN ART FORM, BUT THE CITY OF LAKEWAY ARGUED THAT JUST THE FACT THAT IT WAS AN ART FORM WAS ENOUGH TO USE HOTEL TAX.

THEY DIDN'T NEED TO PROVE ANY TOURISM IMPACT OR HOTEL ACTIVITY.

THAT AN ART FORM IN AND OF ITSELF WAS SUFFICIENT.

WE BRIEFED AND SAID, NO, IT'S A TWO PART TEST.

IT'S NOT ONLY THAT IT'S AN ART FORM, IT ALSO HAS TO DIRECTLY PROMOTE TOURISM AND HOTEL AND CONVENTION INDUSTRY.

AND THE ATTORNEY GENERAL IN THREE MONTHS AFTER THE OPINION REQUEST AGREED AND SAID IT'S A TWO PART TEST.

THE QUILTING DISPLAY, IRONICALLY, WAS HELD AT A SENIOR CITIZEN CENTER THAT WASN'T OPEN TO TOURISTS.

SO THE FACT THAT IT'S A, A, A A, UH, ART FORM IS NOT ENOUGH.

IT ALSO NEEDS TO HAVE THAT IMPACT.

UM, CATEGORY.

ANY QUESTIONS ABOUT PROMOTION OF THE ARTS? PROMOTION OF THE ARTS IS ONE OF THE TWO CATEGORIES THAT HAS A MAXIMUM.

YOU CANNOT SPEND MORE THAN 15% OF YOUR TOTAL FUNDS ON PROMOTION THE ARTS.

NOW I KNOW YOU SPENT 75,000, I THINK FROM YOUR, UH, MCKINNEY PERFORMING ARTS CENTER AND 30,000 FOR, UH, UM, UH, FOR ART AND PUBLIC SPACES.

UM, SO THAT'S PROMOTION OF THE ARTS.

UM, CATEGORY NUMBER FIVE IS HISTORICAL RESTORATION AND PRESERVATION.

THAT WOULD BE, UH, YOUR BEAUTIFUL HISTORIC DOWNTOWN IF YOU WANTED TO MAINTAIN THE FACADES.

AND, AND WHAT I WOULD, WHAT WE LOOK AT IS NOT NECESSARILY EVERY BUILDING WOULD QUALIFY, BUT BUILDINGS THAT ARE FREQUENTED BY TOURISTS.

SO IF YOU HAD A LAW OFFICE, YOU MIGHT NOT FUND THAT, BUT IF IT WAS A LOCAL RESTAURANT THAT TOURISTS CAME IN, OR A VISITOR CENTER OR A RETAIL STORE THAT TOURISTS FREQUENTED, THEN ABSOLUTELY IT COULD BE PART OF YOUR DOWNTOWN REVITALIZATION AND USE HOTEL TAX FOR THAT PURPOSE.

HISTORICAL RESTORATION AND PRESERVATION.

IT ALSO COULD BE ACTIVITIES LIKE REENACTMENTS OR HISTORIC RELATED FESTIVALS, THINGS LIKE THAT.

THERE IS A CAP OF 15% ON THAT AS WELL.

SO THERE'S A CAP OF 15% FOR THE ARTS, 15% FOR HISTORICAL.

UH, THE SIX CATEGORY, SIX THROUGH NINE.

I KNOW PARTICULARLY WELL BECAUSE I WROTE THEM ALL CATEGORY NUMBER SIX.

I MEAN THE LEGISLATURE PASSED THEM, BUT I WROTE THE DRAFTS.

CATEGORY NUMBER SIX IS SPORTING RELATED EVENTS.

I HAD THE MAYOR ROUND ROCK AND THE MAYOR MCKINNEY, UM, AND THE MAYOR OF JASPER ALL COME TO ME OVER AT THE CAPITOL ONE DAY AND THEY SAID, SCOTT, WE WANT TO GET A NEW LAW PASS, WILL YOU HELP US? AND HE SAID, SPORTING EVENTS ARE HUGE.

AND YOU KNOW, IN MCKINNEY IT WAS VARIOUS TURN, NOT MCKINNEY, IT WAS UH, UH, ACTUALLY I THINK IT WAS, IT WAS MCKINNEY.

UM, UM, IT WAS SPORTING TOURNAMENTS AND JASPER WAS FISHING TOURNAMENTS AND IN ROUND ROCK IT WAS BASEBALL.

AND SO WE WROTE A LAW THAT SAID IF YOU'RE IN A COUNTY OF UNDER A MILLION POPULATION, THEN YOU CAN USE LOCAL HOTEL TAX TO COVER THE COST HOLDING SPORTING EVENTS TO THE EXTENT.

BUT YOU HAVE TO, THE EVENT HAS TO SUBSTANTIALLY INCREASE HOTEL ACTIVITY AND YOU HAVE TO DETERMINE WHAT'S A GOOD RETURN ON YOUR INVESTMENT FOR WHATEVER YOU WANNA PUT IN THAT SPORTING EVENT.

[00:45:01]

ANY QUESTIONS ON THAT? YOU SAID IT'S COUNTY'S UNDER A MILLION? YEAH.

WHAT, WHAT IS YOUR, WHICH COUNTY ARE YOU IN? SO WE'RE IN COLLIN COUNTY.

WE ENCOMPASS SOME OF FRISCO, OLIVE, MCKINNEY, SOME PLANO, MOST OF PLANO ALLEN ALONG WITH SOME OUTLINE.

AND WHAT'S THE POPULATION? COLLIN COUNTY? IS IT OVER A MILLION? I BELIEVE IT'S, I WOULD THINK SO.

THEN LET ME SUGGEST THIS.

LET'S AMEND THE STATE STATUTE TO MAKE SURE YOU FALL UNDER THAT FIRST YEAR SPORTING RELATED EVENTS.

AND WE'D HAPPILY WORK WITH YOU TO DO THAT.

'CAUSE WHEN WE WROTE THAT STATUTE, IT DIDN'T MATTER TO US THAT IT WAS A COUNTY OF UNDER A MILLION.

WE JUST WANTED TO MAKE SURE THERE WAS HOTEL ACTIVITY THAT ACCOMPANIED THE SPORTING ACTIVITY.

SO WE CAN LOOK AT THAT AND, AND, AND NEXT LEGISLATIVE SESSION WITH Y'ALL.

ALSO, WHAT'S THE PERCENTAGE OF SUBSTANTIALLY IMPROVING THE HOTEL? YOU NOTED THAT ON THAT ONE.

WHAT'S THE PERCENTAGE? WELL, YOU'RE ASKING A PERFECT QUESTION THAT ANY GOOD LAWYER WOULD ASK AS WELL, .

AND THE REALITY IS THIS, WE DON'T DEFINE IT.

WHAT IS, WHAT IS SUBSTANTIAL FOR WACO WOULD BE DIFFERENT THAN WHAT'S SUBSTANTIAL FOR DALLAS.

AND SO, AND WHAT IS SUBSTANTIAL? THAT'S WHAT Y'ALL WOULD MAKE, UH, THAT DETERMINATION, UH, TO GIVE YOU.

UM, TO GIVE YOU AN EXAMPLE, I WOULD THINK THAT YOU WOULD LOOK AT, AND IF SOMEONE ASKED FOR 50,000 FOR, UH, A SPORTING RELATED EVENT AND THEY ONLY GENERATED 5,000 IN HOTEL ACTIVITY, IT'D BE HARD TO SAY THAT THAT'S A SUBSTANTIAL HOTEL IMPACT FOR THAT AMOUNT OF FUNDING.

SO I WOULD USE IT RELATIVE TO THE FUNDING REQUEST AND SEE WHETHER OR NOT IT MAKES SENSE TO YOU AS A BUSINESS INVESTMENT.

I ALWAYS LIKE TO SAY TO UH, HOTEL ADVISORY BOARDS, HOTEL TAX ADVISORY BOARDS.

PRETEND YOU WERE HIRED AS THE MARKETING MANAGER AND YOU WERE ASKED TO MAKE THAT INVESTMENT.

WOULD YOU SPEND THAT AMOUNT? WOULD YOU SPEND 5,000 TO GENERATE 20,000? SURE.

WOULD YOU SPEND 5,000 TO GENERATE A HUNDRED DOLLARS IN ROOM NIGHTS? PROBABLY NOT.

AND SO I WOULD, THAT SAME FIDUCIARY DUTY YOU'D USE FOR ANY OTHER CITY FUNDS YOU'D USE FOR HOTEL TAX.

AND SO WE KEPT IT GENERAL, UH, TO, TO GIVE YOU, HERE'S THE INTENT.

THERE SHOULD BE A SUBSTANTIAL IMPACT IN ORDER TO QUALIFY.

AND THEN YOU BE THE JUDGE OF WHAT MAKES SENSE.

UM, OKAY, SO THAT WAS, UH, CATEGORY NUMBER SIX, SPORTING RELATED EVENTS.

CATEGORY NUMBER SEVEN, UH, WAS THE MAYOR OF ROUND ROCK, NILES MAXWELL AT THE TIME.

AND HE SAID, SCOTT, YOU HELPED US WITH SPORTING RELATED EVENTS.

WHAT ABOUT THE FACILITIES? AND WE OUGHT TO SPEND, BE ABLE TO SPEND HOTEL TAX THROUGH LIKE IN, IN ROUND ROCK.

THEY WANTED TO PUT COVERS OVER THEIR BLEACHERS 'CAUSE IT'S SO HOT AND PEOPLE GO OUT TO WATCH THE BASEBALL TOURNAMENTS THERE.

SO WE WROTE A LAW THAT SAID THAT, I MENTIONED EARLIER THAT YOU CAN SPEND WHATEVER YOU WANT OUT OF THE HOTEL TALKS ON SPORTING RELATED FACILITIES.

IF THE CITY OWNS THE FACILITY, IT'S AN EXISTING FACILITY AND YOU HAVE A HISTORY OF AT LEAST 10 REGIONAL STATE OR NATIONAL TOURNAMENTS, WHICH ALMOST ANY SPORTING FACILITY WILL HAVE IF THEY'RE USING IT, UM, UH, PER YEAR.

AND THE AMOUNT YOU SPEND, YOU HAVE TO SHOW OVER FIVE YEARS YOU GENERATED THAT MUCH IN HOTEL NINE ACTIVITY.

NOW YOU DON'T HAVE TO GENERATE THAT MUCH IN HOTEL TAX.

THAT WOULD BE A HARDER STANDARD 'CAUSE THAT'S JUST A PERCENTAGE OF THE ACTIVITY.

IT'S JUST THE HOTEL NINE BUSINESS.

AND AGAIN, THE THEORY WHEN WE WROTE THAT LAW WAS WE DIDN'T WANT SOMEONE TO SPEND $3 MILLION ON A TENNIS COMPLEX TO GENERATE A HUNDRED THOUSAND IN HOTEL ACTIVITY.

IT MADE NO SENSE TO USE THAT DEDICATED FUND AND LOSE SO MUCH MONEY ON THAT INVESTMENT.

BUT IF YOU SPEND A MILLION DOLLARS ON A TENNIS COMPLEX AND YOU GET A MILLION DOLLARS OVER FIVE YEARS IN TOURNAMENTS EXISTING AND NEW, THEN YOU'RE INVESTING IN KEEPING THAT ACTIVITY GOING.

SO AT LEAST BREAK EVEN OVER FIVE YEARS IN WHAT YOU INVESTED.

SO THAT'S SPORTING RELATED FACILITIES, ANY AND THAT YOU DON'T HAVE YET.

BUT WE'D LOVE TO WORK WITH YOU TO GET THAT ALONG WITH THE EVENT POPULATION THRESHOLD.

ANY QUESTIONS ON SPORTING RELATED FACILITIES? I HAVE A QUESTION.

DOES, YOU SAID OWNERSHIP OF THE CITY, HOW MUCH OWNERSHIP DOES THAT INCLUDE IN THE PRIVATE PARTNERSHIPS? THAT'S INTERESTING.

UM, THE STATUTE DOESN'T TALK ABOUT A PUBLIC PRIVATE OWNERSHIP, BUT IF, IF THAT'S A CASE, IF WE'RE LOOKING AT ADDING YOU INTO THE STATUTE, LET'S JUST ADDRESS WHAT THE PERMUTATION IS THAT YOU GUYS WANT.

YOU HAVE ONE OF THE FEW EXCEPTIONS.

USUALLY FOR UH, A QUALIFIED HOTEL PROJECT, YOU HAVE TO BE CITY OWNED LAND.

AND BUT WE CHANGED THE STATUTE FOR MCKINNEY TO MAKE IT WHERE IT DIDN'T HAVE TO BE CITY OWNED.

SO WE COULD LOOK AT WORKING WITH YOU ON THAT.

I HAVE A QUESTION TOO.

DID YOU SAY IT ALSO HAS TO BE PREEXISTING FACILITY? YES.

SO LIKE IF THERE'S AN EXISTING FACILITY THAT'S JUST OLD AND MAYBE TOO SMALL, THIS WOULDN'T WORK FOR A NEW FACILITY, IT WOULD WORK PERFECT.

IT'D WORK PERFECTLY.

'CAUSE LET'S SAY THAT EXISTING FACILITY, YOU WANT TO EXPAND IT OR DOUBLE THE SPACE AND YOU COULD, BUT YOU COULDN'T JUST BUILD NEW

[00:50:01]

TO REPLACE IT.

THE STATUTE DOESN'T SAY YOU CAN.

NOW WE HAVE A FEW CITIES THAT HAVE GOTTEN EXCEPTION SO THAT IF WE'RE A NEW FACILITY, WE COULD TRY TO WORK WITH YOU ON THAT.

THE THOUGHT WAS TO RENOVATE EXISTING FACILITIES THAT HAD A HISTORY SO WE KNOW WHAT WE'RE INVESTING IN.

MM-HMM.

BUT WE COULD LOOK AT IT.

YOU ALREADY HAVE A PROVEN HISTORY OF DOING SPORTS ACTIVITIES WELL HERE.

UM, AND YOU HAVE AARON AND WERNER, SO I MEAN YOU CAN MAKE ME .

SO, SO YEAH, WE WE'D BE HAPPY TO LOOK, LOOK AT IT.

OF COURSE, WE NEED TO GET 150 MEMBERS OF THE HOUSE AND 31 MEMBERS OF THE SENATE TO ALL AGREE WITH OUR WISDOM.

NO PROBLEM, NO PROBLEM.

EASY PEASY.

YOU KNOW, IF YOU'RE GONNA SPONSOR WITH HOTEL TAX, YOU KNOW, ANOTHER POLICY IS TO HAVE A BOOKING WINDOW WHERE IF PEOPLE ARE GONNA BOOK LOCAL EVENTS, ASK THEM TO, TO UNDERSTAND THAT FOR MAYBE, MAYBE MOST MAJOR EVENTS OR CITYWIDE OR REGIONALS ARE BOOKED THREE MONTHS IN ADVANCE.

DID THAT ANSWER YOUR QUESTION, MY FRIEND? SO IT COULD BE EXISTING AND THAT WE WOULD NEED TO HAVE THE STATUTE, UH, AMENDED OR SPECIALIZED FOR Y'ALL, UH, FOR NEW SPORTING RELATED FACILITIES.

THAT'S CATEGORY NUMBER SEVEN.

CATEGORY NUMBER EIGHT IS TOURISM RELATED SIGNAGE.

IF YOU WANT TO HAVE SIGNS TO YOUR INCREDIBLY BEAUTIFUL DOWNTOWN AREA AND YOUR HISTORICAL STRUCTURES OVER TO YOUR, UH, CONFERENCE CENTER AT THE SHERATON OR ANY OTHER TOURISM ATTRACTIONS, YOU CAN DO THE WAY FINDING SIGNS OUTTA HOTEL TAX.

NOW, IT WOULDN'T BE WELCOME TO MCKINNEY, IT WOULD BE WHERE'S YOUR MCKINNEY HOTELS? WHERE'S YOUR ATTRACTIONS? IT'S THINGS LIKE THAT.

ANY OF YOUR TOURISM SPOTS.

SO THAT'S SUBSET.

THE FINAL CATEGORY IS TOURISM RELATED SHUTTLES, SHUTTLES BETWEEN AREA HOTELS, LIKE IF MAYBE THE SHERATON AND THEN THE BEST WESTERN PLUS OR OTHER HOTELS WERE ALL ON A CIRCUIT TO BE PICKED UP FOR A, YOU KNOW, MAJOR EVENT OR A REGIONAL EVENT.

YOU COULD PICK THEM ALL UP IN A SHUTTLE AND COVER THAT WITH HOTEL TAGS TO BRING 'EM TO THE SHOPPING DOWNTOWN OR TO ANY OTHER ATTRACTIONS OR EVENTS THAT YOU HAVE.

SO THOSE ARE THE NINE CATEGORIES.

CONVENTION CENTERS, REGISTRATION AND CONVENTION DELEGATES, ADVERTISING AND PROMOTION, PROMOTION OF THE ARTS, HISTORICAL RESTORATION AND PRESERVATION, SPORTING RELATED EVENTS, SPORTING RELATED FACILITIES, TOURISM RELATED SIGNAGE AND SHUTTLES BETWEEN AREA HOTELS.

NOW THERE'S ALSO A PROVISION IN THE LAW SPECIFICALLY THAT SAYS THE LOCAL HOTEL TAX CANNOT BE USED FOR GENERAL GOVERNMENTAL OPERATIONS OR FOR GENERAL INFRASTRUCTURE.

SO, AND THAT'S MEANT TO MAKE SURE THAT THEY'RE NOT SPENDING IT ON GENERAL CITY SIDEWALKS, PARK BENCHES, GENERAL CITY PARKS, THINGS LIKE THAT.

IT'S NOT THAT THOSE AREN'T WONDERFUL INVESTMENTS IN THE COMMUNITY.

THEY ARE, BUT THE THEORY IS HOTELS ALREADY PAY A LOT OF PROPERTY TAX.

WE A CAPITAL INTENSIVE SORT OF STRUCTURE AND THAT'S WHAT'S SUPPOSED TO BE USED FOR THE GENERAL INFRASTRUCTURE OF A CITY.

WATER, SEWER, LAW ENFORCEMENT, PARKS, STREETS, THINGS LIKE THAT.

SO THOSE TYPES OF EXPENDITURES ARE NOT, ARE SPECIFICALLY PROHIBITED UNDER THE STATE LAW.

WHAT QUESTIONS DO YOU HAVE? I WANTED TO ASK, UM, THE, UM, THERE'S OPPORTUNITIES SOMETIMES TO HOST SPECIAL OLYMPICS.

MM-HMM.

, WOULD THAT FALL UNDER A SPORTING OR WOULD IT BE A SEPARATE, WOULD IT BE WELL, IF THE SPECIAL OLYMPICS IS A SPORTING TOURNAMENT OF THE SPECIAL OLYMPIC PARTICIPANTS, I WOULD SAY ABSOLUTELY.

AND LET'S SAY IT WAS JUST A BANQUET AND IT HAD NO SPORTING EVENTS IN IT, THEN I WOULD DO IT UNDER THE ADVERTISING AND PROMOTION CATEGORY AND PROMOTE IT, SPONSOR IT ASSUMING THAT YOU HAVE A HOTEL IMPACT AND THEY HAVE.

AND HOW DO YOU KNOW, UH, UH, HOW DO YOU HAVE AN EVENT OR AN ENTITY PROVE THAT THEY HAVE A HOTEL IMPACT? LET ME GIVE YOU A COUPLE OF PRACTICAL SUGGESTIONS.

ONE, ON YOUR APPLICATION FOR FUNDS, ASK PEOPLE, ARE YOU GOING TO HAVE A ROOM BLOCK? ARE YOU NEGOTIATING A RATE? ASK THEM IF THEY'RE GONNA INCLUDE A LINK TO THE AREA CVB LIST OF HOTELS AND TELL THEM TO QUALIFY FOR HOTEL TAX.

WE ASK THAT YOU ANSWER ALL OF THOSE AND, AND WE GIVE PREFERENCE TO FOLKS THAT HAVE, THAT HAVE, UH, FOR YOUR, UH, CONFERENCE CENTER, UM, HAVE A, UH, A DIFFERENT RATE FOR THE CONFERENCE CENTER RENTAL.

IF THEY HAVE A ROOM BLOCK AT AREA HOTELS AND ASK THEM THAT IF THEY, TO GET THAT SPECIAL RATE, THE REDUCED RATE FOR HAVING A ROOM BLOCK, THEY HAVE TO NOTE NOT ONLY WHAT THEIR BLOCK WAS, BUT WHAT THE PICKUP WAS ON THAT BLOCK.

AND GUESS WHAT THAT DOES? A LOT OF AARON'S WORK AT DOCUMENTING EVERY TIME THAT THAT FACILITY IS RENTED, WHETHER OR NOT THEY ANTICIPATED A ROOM BLOCK, WHETHER THEY HAD ONE, WHAT THE NEGOTIATED RATE WAS AND WHAT THE ACTUAL PICKUP WAS.

EVERYBODY WHO QUALIFIES FOR THE LOWER RATE HAS TO DOCUMENT THAT TO DO THAT.

WE HAVE THAT IN WACO WHERE, UM, THEY, THEY STARTED DOCUMENTING, UH, PROVIDING A DIFFERENTIAL RATE FOR FOLKS WHO BROUGHT THEIR BUSINESS.

'CAUSE SOMETIMES THEY'LL DO AN EVENT MAYBE IN MCKINNEY, BUT BOOK THEIR HOTEL BLOCK IN ANOTHER CITY.

YOU WANT THEM TO BOTH HAVE THEIR EVENT HERE AND DO THE ROOM BLOCK HERE.

[00:55:01]

SO YOU CAN'T BOOK EARLIER THAN THREE MONTHS.

UM, UH, UH, OR THAT PREFERENCE IS STILL FOR THE CVB AND FOR YOUR GROUP EVENT, UH, UH, ORGANIZERS THAT IF IT'S THREE MONTHS AND OUT, THEY OUGHT TO HAVE FIRST PREFERENCE OVER THE CONFERENCE CENTER WITHIN A MONTH OR TWO MONTHS OR THREE MONTHS OR WHATEVER THE TIMEFRAME YOU WANT TO DIVIDE BETWEEN LOCAL AND REGIONAL EVENTS.

ALLOW THE LOCALS TO BOOK WITHIN THE SHORTER TIME PERIOD AND THAT WAY YOU HAVE A CHANCE.

OTHERWISE WHAT HAPPENS IS THE CONFERENCE CENTER IS SO BOOKED UP WITH LOCAL EVENTS.

YOU NEVER GET THE WHOLE FACILITY TO HOST A REGIONAL OR STATE OR A NATIONAL EVENT.

SO JUST A COUPLE OF HINTS AT, UH, UH, THINGS THAT HAVE BEEN SUCCESSFUL IN OTHER PARTS OF THE STATE.

ANY OTHER QUESTIONS? UH, SCOTT, WHEN YOU MENTIONED, UH, SPORTING RELATED EVENTS, UM, WHAT ARE SOME OF THE OTHER AVENUES THAT THAT, UH, WE CAN COME IN TO ASSIST, UH, A LOCAL TERM KNOWING THAT WE HAVE A, A COUNTY OF OVER A MILLION, UM, BUT A LOT OF, UH, SPORTS RELATED BUSINESS THAT'S INTERESTED IN CVV ASSISTANCE.

UM, WHAT ARE SOME OF THE, THE WAYS THAT WE CAN COME IN ON THE BACKEND AND ASSIST THAT THROUGH? RIGHT.

I WOULD DO IT THROUGH ADVERTISING AND PROMOTION AND THEN I WOULD DECLARE WHATEVER THEY'RE ASKING FOR AS THE PROMOTION, THAT'S OUR SPONSORSHIP.

IF WE NEED TO COVER THE COST OF REGISTRATION, IF YOU WANT US TO COVER THE COST OF ADVERTISING, IF YOU WANT TO COVER THE US TO COVER THE COST OF RENTING THE FIELD OR THE FACILITY IN ORDER TO BRING THAT TO US, DO IT AS A PROMOTION.

THAT'S ONE, THAT'S OUR SPONSORSHIP.

ANOTHER WAY TO GET THERE.

ANYBODY ELSE? SCOTT, THANK YOU.

THAT WAS VERY INFORMATIVE.

LIKE AWESOME.

I HAVE A LOT TO DIGEST HERE.

THAT'S WHY I WAS PROCESSING ALL OF THE THINGS THAT I WROTE DOWN.

SO, WELL, I WILL PROMISE YOU THIS.

I'M GONNA GO BACK AND I'M GONNA SEND YOU MY WHAT CITIES NEED TO KNOW ARTICLE.

AND WHAT I LOVE ABOUT THIS ARTICLE IS IT'S ANNOTATED.

SO EVERYTHING THEY SAY, IT HAS A FOOTNOTE THAT TELLS YOU THAT'S THIS SECTION OF THE TAX CODE OR THIS WAS SUPPORTED BY THE ATTORNEY GENERAL'S RULING OR BY A COURT CASE.

SO YOU CAN GO THROUGH AND IT'S WRITTEN IN COMPLETE ENGLISH.

WELL, UH, PLAIN ENGLISH I SHOULD SAY.

OF COURSE IT'S COMPLETE, BUT IT'S, IT'S PLAIN ENGLISH AND IT COVERS ALL OF THE NINE USES AND EVERYTHING I TALKED ABOUT TODAY IS IN THAT ARTICLE.

SO, ALL RIGHT, THANK YOU SO MUCH.

THANK YOU SO MUCH.

WAS REQUEST THAT YOU SEND US A COPY OF THE POEM YOU WROTE FOR US TOO.

I WILL SEND YOU A COPY OF THE POEM.

IT DIDN'T QUITE HAVE THE, YOU DIDN'T BURST IN THE SONG OR WITH ME, BUT I'M GLAD IF YOU ENJOYED IT.

DO YOU MAKE A POEM FOR EVERY CITY? DO YOU KNOW? WHAT'S FUNNY IS WHEN I WAS CHIEF OF MUNICIPAL AFFAIRS FOR THE ATTORNEY GENERAL, BOTH JOHN CORN AND DAN MORALES, UM, I USED TO DO RECENT ATTORNEY GENERAL OPINION RULINGS FOR THE CITY CONFERENCES.

AND EVERY YEAR I WROTE A NEW SONG AND ONE, IT WAS LIKE THAT ONE WAS BEVERLY HILLBILLIES, THE OTHER ONE WAS, YOU KNOW, UH, BRADY BUNCH AND OTHER THINGS AND, YOU KNOW, UM, AND EACH YEAR CITY OFFICIALS WOULD COME.

THEY DIDN'T CARE ABOUT THE EIGHT G OPINIONS.

THEY JUST WANT TO SEE WHAT THE HELL WAS THE NEW SONG .

SO, SO YES, I USED TO DO THAT REGULARLY.

NOW THAT I'M WITH THE HOTEL INDUSTRY, IT'S VERY SPARING, SO THANK YOU.

YOU'RE WELCOME.

OKAY, NOW'S THE TIME FOR BORDER COMMISSIONER COMMENTS.

[BOARD AND MANAGER COMMENTS]

DOES ANYONE HAVE ANYTHING THEY WANNA SPEAK ON? UM, I WANTED ONE THING.

YOU HAVE SOMETHING I DID.

I JUST, IN THE MARKETING COMMITTEE, WE WERE ADDRESSED THE NEW BLOG AND I JUST WANTED TO GIVE A SHOUT OUT TO BETH AND THE TEAM FOR MAKING THAT MUCH MORE USER FRIENDLY AND MORE VISUALLY ATTRACTIVE.

SO THANK YOU.

AND I'LL FOLLOW UP ON THAT.

I JUST WANNA CONTINUE TO THANK, THANK THE TEAM.

WE ARE IN BUSY SEASON.

UH, THE SPRING IS, THERE ARE SO MANY EVENTS AND THINGS GOING ON, SO I APPRECIATE BOTH THE STAFF AND THE BOARD, UM, FOR EVERYTHING THEY DO.

SHOWING UP TO THE ASIAN FESTIVAL AND SHOWING UP TO BYRON NELSON, EVERYTHING THAT YOU GUYS DO.

SO I APPRECIATE YOU VERY MUCH.

I WOULD LIKE TO SAY THAT THE, UH, ASIAN FESTIVAL WAS ABSOLUTELY FANTASTIC.

WISH IT WAS ON, BUT THE IMPACT THAT I SAW WAS JUST EVERYBODY THAT WAS THERE, YOU COULD STEP BACK, LOOK, 30,000 FOOT VIEW.

UM, IT WAS, IT WAS REMARKABLE AND JUST KEPT PEOPLE PARK AND JUST COME IN FROM ALL OVER AND IT WAS BEAUTIFUL DAY.

[01:00:03]

SO EXCITED ABOUT WHAT IT COULD BE IN THE FUTURE, YOU KNOW, GREAT JOB.

THE TEAM.

I AGREE.

AND FROM A RETAIL STANDPOINT, I MEAN, WE GOT TO SEE THE, UH, DIVERSITY INCREASE DOWNTOWN.

UM, AND NOT, AND, AND THE POPULATION, JUST THE AMOUNT OF PEOPLE THAT WERE DOWNTOWN.

SO THAT WAS, THAT WAS AMAZING.

SO THANK YOU.

A GREAT USE OF GRANT FUNDS.

? YES.

LET'S KEEP 'EM A PAT ON THE BACK.

WE READY TO ADJOURN? OKAY.

I THINK AT THIS TIME TO ADJOURN.

AND MAY I GET A MOTION TO ADJOURN? MOTION BY EPHRAIM? MAY I GET A SECOND? SECOND BY EMILY.