* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:01] READY? [CALL TO ORDER] GOOD MORNING. WELCOME TO THE VISIT MCKINNEY BOARD MEETING. MY NAME IS KATIE SCOTT, AND WE ARE MEETING AT CITY HALL IN COUNCIL CHAMBERS, LOCATED AT 4 0 1 EAST VIRGINIA STREET, MCKINNEY, TEXAS. TODAY IS TUESDAY, MARCH 31ST, 2026, AND IT IS 8:01 AM THE FOLLOWING BOARD MEMBERS ARE PRESENT. JILL BARNES, PATRICK MCGUIRE, BRIAN MEDINA, KEITH GALL, JANIE PENA, AND MYSELF. WE'RE JOINED BY CITY MANAGER PAUL GRIMES, MAIN STREET, ANDREW JONES. AND WE HAVE MCDC LIAISON. MARCUS LLOYD. THIS IS MCKINNEY. STAFF IS ERIN WARNER, ALICIA HOLMBERG, SARAH TING, TONY ADAMO, PAULA MARTIN, AND EMILY MYRICK. WE'RE TAKING TIME FOR PUBLIC COMMENTS ON AGENDA ITEMS. THERE ARE NONE. WE WILL NOW [CONSENT ITEMS] VOTE ON THE FOLLOWING AGENDA. CONSENT ITEM TWO SIX DASH 0 2 3 1 MINUTES OF THE VISIT MCKINNEY BOARD MEETING OF FEBRUARY 24TH, 2026. MAY I GET A MOTION AND A SECOND TO APPROVE THE MINUTES? I'LL MAKE A MOTION. A MOTION BY BRIAN. MAY I GET A SECOND? I'LL SECOND. SECOND BY PATRICK, PLEASE CAST YOUR VOTE. WE'RE BACK TO MOTION. OKAY. MOTION TO, SORRY. MOTION PASSED. [26-0232 Board and Liaison Reports City of McKinney MEDC MCDC McKinney Main Street / MPAC McKinney Parks and Recreation Visit McKinney Finance/STR Report Visit McKinney Marketing Report] MOVING TO BOARD AND LIAISON REPORTS. AGENDA ITEM TWO SIX DASH 0 2 3 2. BOARD AND LIAISON REPORTS. WE'LL START WITH CITY OF MCKINNEY, PAUL GRIMES. GOOD MORNING, MADAM CHAIR. MR. DIRECTOR MEMBERS OF THE BOARD. PAUL GRIMES. UM, COUNCILWOMAN FELTUS WAS UNABLE TO JOIN US THIS MORNING. SHE HAD ANOTHER EVENT SHE HAD TO MAKE A PRESENTATION TO. SO JUST FYI AND I DON'T KNOW, WE HAVE ANOTHER ONE. UH, COUNCILMAN CLOUTIER IS ALSO AT AN YES. WE'LL, UH, WE'LL CALL HIM OUT PUBLICLY HERE. THERE YOU GO. PERFECT. . THAT'S OKAY. UM, I DON'T WANNA STEP ON THIS. I WANNA MAKE SURE THAT I'M NOT OVERLAPPING HERE, BUT THERE'S A FEW THINGS I WANNA SHARE WITH YOU THIS MORNING. UM, LA THE LAST CITY COUNCIL MEETING, THE COUNCIL ADOPTED PARAMETERS ORDINANCE, THAT'S BASICALLY FOR DEBT ISSUANCE. IT'S TO SETTING THE PARAMETERS FOR HOW MUCH DEBT AND FOR WHAT PURPOSES. UH, THIS IS BASED ON BOND AUTHORIZATION THAT THE CITY, UH, THE VOTERS ALREADY GAVE US. AND SO EVERY YEAR WE ISSUE A CERTAIN AMOUNT OF DEBT, UM, AND, AND THEN WE SLOWLY TO EAT INTO THAT OVERALL BOND AUTHORIZATION. AND IT USUALLY TAKES US FIVE OR SIX YEARS, UH, TO BURN THROUGH THAT AUTHORIZATION BEFORE WE NEED TO GO BACK OUT TO THE VOTERS FOR ANOTHER ONE. SO THIS CYCLE, THE PARAMETERS ORDINANCE, WE HAD, UH, $75 MILLION IN GENERAL OBLIGATION DEBT. UH, THAT COMPRISES SOME PUBLIC SAFETY AS WELL AS STREETS AND ROADS, UH, AND SOME OTHER ANCILLARY TYPES OF USES. $75 MILLION ALTOGETHER. WE'LL BE ISSUING THAT DEBT IN THE NEXT COUPLE OF MONTHS. UH, BUT THAT IS THE COUNCIL ADOPTING, BASICALLY AUTHORIZING OR SETTING THE PARAMETERS FOR THAT DEBT. WE ALSO HAVE $25 MILLION IN WATER, UH, WATER AND WASTEWATER DEBT AS WELL WITH THIS CYCLE OF DEBT ISSUANCE THAT'S BASED ON REVENUE BONDS THAT'S FUNDED OUT OF THE WATER REVENUES. UM, WE ARE, THE COUNCIL ALSO, UH, ADOPTED A CONTRACT FOR DEMOLITION OF THE OLD CITY HALL. UH, NOT ONLY THE OLD CITY HALL, BUT THE OLD DEVELOPMENT SERVICES BUILDING ACROSS THE STREET. SO THAT WILL BE HAPPENING PRETTY EMINENTLY. UH, IT'S 120 DAY CONTRACT ONCE THEY GET THE NOTICE OF PROCEED, AND YOU'LL SEE THAT THOSE BUILDINGS COME DOWN AND, UH, THAT'LL BE, THERE'LL BE JUST LAWNS FOR A WHILE. ACTUALLY, THE, THE DEVELOPMENT SERVICES BUILDING WILL PROBABLY PART A PORTION OF THAT LOT WILL PROBABLY BE SERVED AS, UH, STAGING FOR SOME CONSTRUCTION BECAUSE THEY'VE AUTHORIZED AUTHOR, AUTHOR ALSO AUTHORIZED US, THAT'S A TRICK WORD FOR ME. ALSO, AUTHORIZED US, UH, TO ENTER INTO AN AGREEMENT FOR PHASE ONE ENGINEERING FOR A PARKING DECK, UH, JUST NORTH OF HARVEST. THERE'S A PARKING LOT THERE. THERE'S A LITTLE PARK CALLED CENTRAL PARK. UM, WE'RE GONNA RECONFIGURE THAT. THE ENGINEER'S GONNA COME UP WITH SOME DESIGN OPTIONS TO BRING BACK TO THE COUNCIL BEFORE WE MOVE FORWARD WITH FINAL DESIGN. AND THEN ULTIMATELY CONSTRUCTION. SO ANOTHER PARKING DECK WILL BE COMING, IS FORTHCOMING IN THE DOWNTOWN AREA. WE NEED SEVERAL OF THEM. UH, THIS WILL BE THE NEXT ONE. UM, WE ALSO OPENED UP, UM, SOME PROPOSALS FOR A 230 ACRE SPORTS PARK, IF YOU WANNA CALL IT THAT, A REGIONAL SPORTS FACILITY ON THE SOUTH SIDE OF DALE ROAD. THIS IS THE AREA JUST NORTH OF THE PAINTED TREE SUBDIVISION. SO IT'S EAST OF LAKE FOREST, SOUTH OF DALE. IT'S A FABULOUS LOCATION BECAUSE THAT WILL BE THE FUTURE BYPASS. SO IT'LL BE AN EXIT OFF THE BYPASS, UH, JUST, UH, SOUTH OF IRWIN PARK. AND WE ARE, UH, WE, WE CA WE'RE CASTING THE NET, IF YOU WILL, TO SEE WHAT TYPES OF PROPOSALS FROM FIRMS, UM, WHAT COULD, WHAT COULD THEY DO WITH THAT 230 ACRES? HOW CAN [00:05:01] THEY HELP US ACHIEVE OUR VISION OF A REGIONAL SPORTS FACILITY WHERE YOU COULD BRING IN NATIONAL COMPETITIONS, BASEBALL, SOFTBALL, CRICKET, UH, PICKLEBALL, SOCCER, OF COURSE. UM, WE ARE NOW ZEROING IN ON A COMPANY. WE WILL BE BRINGING IT FORWARD, UH, TO THE APRIL 7TH CITY COUNCIL MEETING TO GET COUNCIL AUTHORIZATION TO ENTER INTO A PERIOD OF EXCLUSIVE NEGOTIATIONS WITH THAT ONE PROPOS. THE REASON WHY WE DO IT THAT WAY IS IF FOR SOME REASON WE CAN'T REACH AN AGREEMENT, WE CAN GO TO THE OTHERS, UH, DOWN THE LIST, IF YOU WILL. UM, IF THE, IF THE COUNCIL WISHES TO DO THAT. BUT, UH, THAT WAS, THAT'S VERY EXCITING TO BE GET MOVING FORWARD ON THAT. UM, GREAT PIECE OF PROPERTY. AND THEN FINALLY, I LIKE TO, UH, PUBLICLY CALL, UH, DO A PUBLIC SHOUT OUT, UH, FOR A COUPLE OF OUR EMPLOYEES WHO HAVE RETIRED, A COUPLE RETIREMENTS RECENTLY. THESE ARE ALWAYS A GREAT PLEASURE. AARON SCHROEDER FROM OUR PARKS AND RECREATION DEPARTMENT, 38 AND A HALF, ALMOST 39 YEARS OF SERVICE TO THE CITY OF MCKINNEY. AND, UH, HE'S, UH, OFFICIALLY RETIRED NOW. AND, UH, WE ALWAYS WANT TO MAKE A PUBLIC SHOUT OUT FOR THEM FOR ALL THOSE THAT DEDICATION TO THE COMMUNITY. AND, UH, NOT TO BE OUTDONE. YESTERDAY I HAD THE PLEASURE TO GO TO A, IN FACT, TODAY'S HIS RETIREMENT CEREMONY. UM, UH, LARRY ECHE BERRY FROM OUR MCKINNEY FIRE DEPARTMENT, 42 YEARS OF SERVICE. UM, HE'S, UH, FINALLY DECIDING TO HANG IT UP. WE DID THE MATH 151 OF OUR CURRENT FIREFIGHTERS WERE NOT EVEN BORN WHEN LARRY STARTED WORKING. . I'M KIDDING. THAT'S INCREDIBLE. UH, BUT NONETHELESS, IT'S, UH, IT'S ALWAYS FUN, UH, TO CALL OUT AND, AND RECOGNIZE THOSE FOLKS FOR THAT INCREDIBLE DEDICATION TO THE COMMUNITY. UM, THOUGHT I HAD ON ONE OTHER ITEM. I WANTED, OH, WE HAVE A MCKINNEY HOUSING AFFORDABLE HOUSING SUMMIT COMING UP, UH, APRIL 13TH. UH, IT'S AT THE, UM, I BELIEVE THIS ONE IS AT THE COLLIN COLLEGE CONFERENCE CENTER. NO, I'M SORRY. IT'S AT THE MISD FOOTBALL STADIUM. THE COMMUNITY EVENT CENTER, THE ANNUAL AFFORDABLE HOUSING SUMMIT. UH, IF YOU FIND, HAVE INTEREST IN THAT TOPIC, WE'D ENCOURAGE YOU TO ATTEND. AND THEN FINALLY, NOT TO BE OUTDONE MONTHLY POPULATION ESTIMATE, 237,000 521 2 3 7 521. AND THAT'S ALL I HAVE. I'LL STAND FOR ANY QUESTIONS. HOW'S THE, UH, AIRPORT DEVELOPMENT PROGRESSING? GREAT QUESTION. IT'S MOVING ALONG JUST FINE. THEIR CONSTRUCTION IS WELL UNDERWAY. WE DID A TOUR ABOUT A MONTH AGO NOW, MAYBE THREE WEEKS, UH, WITH SOME COUNCIL MEMBERS AND SOME MEMBERS OF THE CDC AND EDC. UM, THEY ARE MAKING GREAT PROGRESS. THEY'RE UNDER ROOF. THEY'RE, THEY'RE FRAMING UP THE INTERIOR OF THE BUILDING, GETTING READY TO START WITH, UH, THE FINISH FINISH OUT OF THE CONSTRUCTION. THERE'S A LOT OF CONCRETE BEING LAID ON THE TARMAC RIGHT OUT FRONT WHERE THE APRON, UH, WHERE THE AIRCRAFT WILL BE. BUT WE ARE ON TARGET. UH, WE'VE GOT ONE AIRLINE ANNOUNCED, AND WE ARE WORKING ON A SECOND. UH, SO OUR GOAL IS TO HAVE AT LEAST TWO AIRLINES IF WE COULD. UM, WHEN WE KICK THIS THING OFF IN NOVEMBER, REMIND ME WHICH ONE'S ANNOUNCED. UH, AVELO. AVELO A VELO AIRLINES. HOW ABOUT THE LIBRARY DOWNTOWN? HOW'S THAT COMING? OH, YES. SO THANKS FOR ASKING. SO THEY ARE, I JUST, WE JUST HAD A CAPITAL IMPROVEMENTS UPDATE MEETING LAST FRIDAY. THEY ARE MOVING ALONG. THEY'VE GOT THE, THE, UH, PLANETARIUM COMPONENT THAT'S GONNA BE AN INSERT THAT'S BROUGHT IN. UH, AND IT'S THE COSM PEOPLE, YOU KNOW. OH, YEAH. YOU GUYS ARE FAMILIAR. THAT'S THE SAME COMPANY APPARENTLY THAT'S DOING THIS. SO THEY'VE GOT THE, THE FRAME THERE. THEY JUST NEED TO PUT THE INSERT IN. UM, AND, UH, IT'S COMING TOGETHER. IT'S, UH, ON TARGET FOR LATER THIS YEAR, OPENING UP. THAT'S GREAT. YEAH. IT'LL BE A NICE, UH, CHANGE. IT WON'T BE QUITE A CHILDREN'S MUSEUM, BUT IT'LL HAVE SOME FEEL OF THAT, RIGHT. SO THAT WHEN FAMILIES COME DOWNTOWN, UH, THERE'S SOMETHING FOR THE KIDS TO DO. UM, DOWNTOWN IS WONDERFUL, BUT IT'S NOT ALWAYS EXCITING FOR KIDS, I SUPPOSE, TO WALK AROUND SHOPPING. UH, SO, OR GONNA RESTAURANTS. SO MAYBE, UH, TAKE THEM THERE FOR THE DAY AND SPEND A FEW HOURS AT THE MCKINNEY LIBRARY. SO, OKAY. ANY OTHER QUESTIONS? ALL RIGHT. THANK YOU SO MUCH. THANK YOU. THANK YOU. OKAY. CDC, DEBORAH BRADFORD. GOOD MORNING. GOOD MORNING. GOOD MORNING. GOOD MORNING. EXCITED TO HEAR ABOUT THIS PLANETARIUM. THE LAST PLANETARIUM THAT I SAW WAS IN 1972 IN ST. LOUIS, MISSOURI, . SO THAT LETS YOU KNOW I'M NOT AS YOUNG AS I LOOK. GOOD MORNING TO EVERYONE. DEBORAH BRADFORD, MCDC. SO MCDC WILL BE CELEBRATING THEIR 30TH ANNIVERSARY APRIL 26TH. UM, TO COMMEMORATE THAT, WE'VE HAD PLENTY OF OUR PARTNERS COME FORWARD, UH, UNDER THE, UM, GREAT IDEA OF CHRIS WILKES, WHO'S ONE OF OUR BOARD MEMBERS. AND WE'VE BEEN HIGHLIGHTING ORGANIZATIONS WITH WHOM WE'VE PARTNERED IN THE LAST 30 YEARS. OUR LAST HIGHLIGHT WAS ACTUALLY MAIN STREET AND ALL OF THE FANTASTIC WORK THAT ANDREW AND HIS TEAM IS DOING. SO WE'RE VERY EXCITED ABOUT THAT. UH, BUILD YOUR OWN BUSINESS SILOS AT TPPS. SO THIS HAS BEEN A WONDERFUL PROJECT. THESE ARE SMALL BUSINESS OWNERS WHO, [00:10:01] UH, TPPS HAD THE WONDERFUL VISION TO REDO THEIR SILOS. AND SO THERE ARE, UH, PROBABLY I THINK ABOUT SEVEN AND I MAY BE OVERSTATING BUSINESSES THAT ARE THERE. AND THE WAY THEY HAVE TRANSFORMED THOSE SILOS, UH, IS ABSOLUTELY AMAZING. IF YOU'VE NOT SEEN IT, TAKE THE TIME TO GO TO TUBS AND TO WALK THROUGH THERE. YOU'LL SEE TOASTED SIMPLE, WHICH IS A FOOD INFUSED COCKTAIL AND MOCKTAIL SYRUPS WITH SOME OF, UM, TUBS BRANDED, UH, BEERS. SO PRETTY INCREDIBLE. NOT THAT I'VE TASTED IT. OKAY, THAT'S MY DISCLAIMER, . BUT, UM, YOU ALSO HAVE FIELDS, UH, FIDELIS, A LOCAL GROWN LAVENDER PRODUCTS PERDOT PLANT COMPANY, HOTEL UGLY. SOUNDS KIND OF WEIRD, BUT IT'S PRETTY INCREDIBLE. CHECK THAT OUT. STOCKYARD PANTRY. AND ALSO ROLLING CIGARS. SO WE GET A CHANCE GOING DOWN TO TIPS AND SEE THE WONDERFUL THINGS THAT THEY'VE DONE. UH, THE HOUSING, UH, SEMINAR THAT'S COMING UP, UM, CITY MANAGER PAUL GRIMES HAS ALREADY STATED WHAT THAT WILL BE LIKE. UH, RETAIL DEVELOPMENT INFRASTRUCTURE GRANTS WERE ACCEPTED THROUGH, THROUGH JANUARY THE 30TH. THERE WERE NO APPLICATIONS RECEIVED ON THIS GRANT CYCLE. SOME OF THE, UH, EVENTS THAT ARE COMING UP FOR APRIL AND ALSO MAY. SO OF COURSE, WE'VE GOT ARTS AND BLOOM APRIL THE 10TH. WE'VE GOT, UM, ST. PETER'S EPISCOPAL EMPTY BOWLES, APRIL 23RD. WE'VE GOT THE SPRING PLANT SALE, UH, ON APRIL 25TH FOR THE COLLIN COUNTY MASTER GARDENERS. WE'VE GOT THE HERITAGE GUILD GUILD, UH, THE EVENTS AT CHESTNUT SQUARE, SO THAT'S COMING ALONG. WE DID IT JANUARY THROUGH JUNE. SO THERE'S THAT ART BY META, THE R AND B FESTIVAL, UH, THAT WILL BE HELD. ATTS MAINGATE, OF COURSE, MAINGATE LIVE. SO THAT'S, UH, APRIL AND MAY, AND ONE OF THOSE THROUGH JUNE. SO CHECK THOSE OUT. THE REST OF THE EVENTS ARE ON YOUR REPORT, SO FEEL FREE TO LOOK AT THOSE AND ATTEND WHERE YOU CAN. UH, PROMOTIONAL AND COMMUNITY, UH, GRANTS THAT WERE AWARDED, YOU SEE THE SUMMARY THAT'S ATTACHED. ALSO, THE PROJECT GRANTS, THE SECOND CYCLE OPEN ON MARCH THE FIRST APPLICATIONS WILL BE ACCEPTED THROUGH MARCH 31ST. AND AT THIS TIME, I STAND FOR ANY QUESTIONS? ANYONE? I THINK THANK YOU. ALL RIGHT. THANK YOU. THANK YOU. MCKINNEY. MAIN STREET. ANDREW JONES. GOOD MORNING. VISIT MCKINNEY BOARD, MADAM CHAIR, UH, ANDREW JONES, CULTURAL DISTRICT DIRECTOR. UM, WE ARE, UH, READY TO LAUNCH OUR, THE NEW WEBSITE WITH, UH, THE PLATFORM ON VISIT MCKINNEY. SO WE'RE VERY EXCITED ABOUT THAT. UH, THIS, UH, LATE IMMINENTLY. SO THEY JUST STARTED TRANSFERRING, UM, ALL THE, THE RE REDIRECTS AND ALL THE LINKS. UM, WANTED TO BRING YOUR ATTENTION TO A, A NEW PROGRAM. WELL, I WOULD SAY IT'S MORE OF AN EXPANSION OF A PROGRAM, UM, DUE THE DIRECTION OF CITY COUNCIL THERE AND THE TOURS. UM, WE'RE EXPANDING OUR DOWNTOWN FIRE SUPPRESSION PROGRAM RIGHT NOW WITH PHASE ONE. UH, THEY, IT'S A PRETTY AGGRESSIVE GOAL TO BASICALLY LIDAR ALL OF DOWNTOWN AND ALL OF THE BUILDINGS. BUT ULTIMATELY, THE REASON WHY WE'RE, UM, GOING WITH THIS DIRECTION IS TO PROTECT DOWNTOWN. AND IF YOU THINK ABOUT TOURS, IT'S FUNDED BASED ON A LOT OF THE PROPERTIES. AND, YOU KNOW, THE PROPERTIES THAT, UH, ARE SO IMPORTANT TO DOWNTOWN, WITH THE ARCHITECTURE AND THE HISTORY THERE, UH, WE WANT TO GET ALL THOSE PROTECTED. UM, AND SO THAT'S ULTIMATELY THE GOAL. WE SEE THIS AS ABOUT A FOUR YEAR, UH, PROJECT. BUT PHASE ONE IS TO KIND OF GO AND WORK WITH ALL THE BUSINESSES IN DOWNTOWN TO GET THEM SCANNED. AND THEN WE WILL COME UP WITH, UH, CO-LOCATED, UH, FIRE SUPPRESSION, UM, UH, YOU KNOW, SYSTEMS THAT CAN SHARE FOR ONE WHOLE BLOCK, WHICH IS AN AMAZING, UM, ASSET. IF YOU'VE EVER HAD TO PUT IN A FIRE SUPPRESSION SYSTEM, IT'S A LITTLE TECHNICAL, BUT YOU REQUIRE A RISER ROOM. AND THAT'S VERY DIFFICULT. IF EVERY SINGLE BUSINESS ON A WHOLE BLOCK WERE TO GET A RISER ROOM. AND THIS ALLOWS BUSINESSES TO CO-LOCATE A RISER ROOM TOGETHER TO PROVIDE FIRE SUPPRESSION FOR A WHOLE BLOCK AT ONE SHOT. UM, SO IT IS AN AGGRESSIVE PROJECT, BUT, UH, OUR MAIN STREET TEAM, UH, WE'RE KIND OF GETTING OUT THE WORD RIGHT NOW. UM, YOU MIGHT'VE SEEN THE WATER TOWER IS GETTING RESTORED. UM, SO WE'RE VERY EXCITED ABOUT THAT. UM, YOU KNOW, WE HOPE, WE INTEND THAT THIS IS GONNA BE ABOUT A, A THREE TO FOUR MONTH, UH, THREE TO SIX MONTH PROJECT. SO, UM, YOU ALSO NOTICE IN DOWNTOWN, UH, SPRING HAS ARRIVED. SO WE HAVE STARTED YARN BOMBING THE TREES. THAT KIND OF SETS US UP FOR ARTS AND BLOOM, WHICH IS GONNA BE APRIL, UH, 10TH THROUGH, UH, 12TH. UM, SO WE HAVE A LOT OF FUN ACTIVITIES FOR, FOR THIS YEAR. WE ARE EXPANDING KIND OF THE KIDS CREATE AREA, UM, AND WE'RE ALSO ADDING A LOT OF COMPETITIONS. UM, SO WE HAVE COMPETITIONS FOR CHILDREN TO COME IN AND JUST DO MODELING WITH CLAY. AND WE'LL HAVE LIKE FOUR OF THOSE ON SATURDAY. THERE'S A COMPETITION FOR PORTRAITURE FOR MORE PROFESSIONAL ARTISTS, [00:15:01] BUT IT'S GONNA BE A REALLY GREAT EXPERIENCE. APRIL 18TH, WE HAVE THE JURY ART SHOW THAT IS NORMALLY AT IMPACT IS GONNA BE RELOCATED TO CITY HALL THIS YEAR. UM, IT'S GONNA BE, UH, APRIL 18TH FROM SIX TO 8:00 PM AND THEN APRIL 23RD, EMPTY BULLS IS ALSO RELOCATING OVER TO TTS AS, UM, YOU KNOW, BRAD, MR. BRADFORD SHARED EARLIER. SO, ALL RIGHT, WITH THAT, I'LL STAND FOR ANY QUESTIONS. OKAY, THANK YOU. THANK YOU. ALL RIGHT. VISIT MCKINNEY FINANCE REPORT. ALICIA HOLMBERG. GOOD MORNING EVERYONE. UH, WE MET WITH OUR FINANCE COMMITTEE WEEK AGO. IT IS LONGER THAN NORMAL, SO, UM, SO WE WENT OVER OUR, UH, NUMBERS FOR JANUARY. SO WE ARE, AS YOU CAN SEE, 33% COMPLETE AS OF JANUARY THROUGH OUR FISCAL YEAR. UM, WE ARE PRETTY MUCH RIGHT ON TARGET. YOU CAN SEE THERE, OUR TOTAL EXPENSES WE'RE AT 34%. SO, UM, WE'RE, WE'RE GOOD TO GO FOR THE, WHERE WE ARE RIGHT NOW. IN THE YEAR, UH, HERE YOU'LL SEE OUR HOTEL OCCUPANCY TAX REVENUE. WE, FOR THE MONTH OF JANUARY, WE WERE UP, UH, 18% OVER LAST YEAR. UM, SO STILL STRONG NUMBERS, ESPECIALLY IN JANUARY. JANUARY IS STILL USUALLY, UM, ONE OF OUR SLOWEST MONTHS, UM, BUT STILL STRONG COLLECTION. AND SO WE ARE, UM, UH, ALMOST 14, UM, AND A HALF PERCENT UP YEAR OVER YEAR FOR, UM, OUR COLLECTION. SO AGAIN, WE'RE ON TRACK TO HOPEFULLY SURPASS WHAT WE DID LAST YEAR, WHICH WAS OUR, OUR RECORD YEAR LAST YEAR. SO LOOKING FORWARD TO SEEING THAT NUMBER LATER THIS YEAR. UM, HERE IS THE OCCUPANCY AGAIN FOR JANUARY. SO YOU CAN SEE HERE MCKINNEY UP ON THE TOP. WE ARE SLIGHTLY DOWN IN, IN OCCUPANCY OVER LAST YEAR. AGAIN, 54.3%, ONE OF OUR LOWEST SLOWEST MONTHS IN JANUARY, OUR A DR WAS UP. BUT YOU CAN SEE THE REVENUE, THE REVPAR, SO, UH, REVENUE, REVENUE, EXCUSE ME, PER AVAILABLE ROOM WAS DOWN SLIGHTLY. SO THOSE ROOMS, AS YOU CAN SEE, SINCE OCCUP OCCUPANCY WAS DOWN, THEY WEREN'T QUITE FILLING THE, WE'RE KEEPING THE RATE A LITTLE HIGHER, WHICH IS GOOD, BUT THEY'RE NOT QUITE FILLING. BUT IT'S ALSO A SLOW MONTH. SO I THINK WE'LL SEE HOPEFULLY, UM, GOING FORWARD IN COMING MONTHS THAT, THAT, UM, A DR CONTINUES TO GROW, BUT WE ALSO WANNA MAKE SURE THAT THEIR, THE REVENUE IS COMING IN, SO THE ROOMS ARE FILLING AT THAT, THAT RATE THAT MAKES SURE THAT IT'S AN ACCURATE RATE, UM, FOR WHAT'S OUT THERE. YOU CAN SEE, UM, OUR, OUR TIERS THERE. WHAT, WHERE WE FELL, AGAIN, EVERYONE WAS, IS A LITTLE LOWER THAN LAST YEAR, BUT WITH THE EXCEPTION OF GEORGETOWN, SO ALAN PLANO, FRISCO, THOSE CITIES WERE ALSO, UM, DOWN A BIT FROM LAST YEAR. SO, UM, PRETTY MUCH ON TREND WITH WHAT, WHAT OUR SURROUNDING, UM, COMP CITIES WERE DOING. SO NOT TOO CONCERNED THERE. UM, HERE IS OUR, UM, THE, UH, REPORT FOR THE HOTELS AND SHORT TERM RENTALS THAT REPORTED THEIR SALES TAX. UM, YOU'LL SEE A FEW MORE, UH, SHORT TERM RENTALS. RENTALS INCLUDED THERE. UM, UH, PER OUR FINANCE DEPARTMENT, IT'S DUE TO A LOT OF THE SMALLER ONES, SOMETIMES JUST REPORT QUARTERLY. UM, SO THAT'S WHERE YOU'RE SEEING, UH, THAT NUMBER A LITTLE BIT HIGHER THERE. UM, SOME OF IT GOT CUT OFF. THAT'S, THAT'S ON ME, UM, ON THIS REPORT. BUT AIRBNB IS STILL OUR LARGEST COLLECTION. I BELIEVE IT WAS AT ABOUT 32,000 AND CHANGE. AND THEN YOU CAN NOTE ABOUT MIDWAY DOWN, THAT HOMEAWAY, IT'S ABOUT, UH, 66, UM, HUNDRED THERE. THAT IS THE, UM, VRBO COLLECTION THAT WE STARTED BACK IN NOVEMBER. SO THAT'S STARTING TO, UM, UH, GO UP JUST A BIT. SO I THINK WE'RE GETTING MORE OF THOSE, UM, SHORT-TERM RE RENTALS IN. UM, ONE OTHER THING OF NOTE WAS, UM, IN THE LAST MONTH OR SO, OUR CITY COUNCIL APPROVED A NEW ORDINANCE RELATED TO SHORT-TERM RENTALS, UM, WHERE THEY WILL BE REQUIRED TO REGISTER WITH THE CITY. UM, THERE IS NO FEE ATTACHED TO IT CURRENTLY. IT'S REALLY JUST MAKING SURE THAT, UM, THE CITY KNOWS THE OWNER OF THE HOMES THAT ARE, UM, RENTING OUT THEIR HOMES THROUGH, UM, THE AIRBNB V-V-R-B-O. UM, BUT THERE IS NOTHING, NO FEE ATTACHED OR ANYTHING LIKE THAT. UM, DOES THE COMMITTEE HAVE ANYTHING ELSE TO ADD THAT I MAY HAVE MISSED? I HAVE A QUESTION. SURE. UM, I SEE THE DENIZEN IS AT 46% OCCUPANCY. MM-HMM . IS THAT, UH, THAT'S OBVIOUSLY DECEMBER. ARE THEY DOING BETTER NOW THAT BUSINESS IS PICKING UP, OR IS THERE THEY HAVE A NEW DIRECTOR OF SALES. OKAY. UM, TONY AND MYSELF WENT AND MET WITH HER, UH, A COUPLE WEEKS AGO, AND SHE IS READY TO JUMP IN. SHE HAS A LOT OF, UM, I THINK SHE CAME FROM THE VEGAS AREA, IS THAT RIGHT? SHE HAS A, UM, A LONG CAREER BEHIND HER ALREADY. UM, AND SHE'S REALLY EXCITED TO BE AT THE PROPERTY. SO I THINK, UH, IT'LL BRING A LITTLE BIT OF NEW LIFE INTO IT, NEW OPPORTUNITIES FOR HER TO GET MORE PEOPLE INTO THE HOTEL. UM, BUT LIKE I SAID, THIS, [00:20:01] IT'S A SLOWER MONTH FOR SURE. JANUARY TYPICALLY IS. UM, BUT THE HOPE IS THAT THEY WILL CONTINUE TO TREND UP. YEAH, IT LOOKS LIKE, ESPECIALLY WITH THE BYRON COMING, THEY'RE, YOU KNOW, THEY'RE CLOSE PROPERTY, A NICE HIGH-END PROPERTY, UM, SO THEY SHOULD ATTRACT SOME OF THAT BUSINESS. YEAH, I JUST SEE THEM TRACKING BEHIND WHAT LOOKS LIKE THEIR COMP SET. SO YEAH, JUST CURIOUS. ANY OTHER QUESTIONS? NO, THANK YOU. THANKS. ALL RIGHT. VISIT MCKINNEY MARKETING REPORT. SARAH TING AND EMILY MYRICK. YOU HAVE MORE MORNING EVERYBODY. SO, FOR FEBRUARY, OUR NUMBERS WERE UP ACROSS THE BOARD ON THE WEBSITE. OUR ACTIVE USERS, NEW USERS AND VIEWS ALL INCREASED. AND THEN OUR ENGAGEMENT TIME STAYED ABOUT THE SAME, WHICH IS ALWAYS GOOD. SOME OF OUR TOP PAGES VISITED WAS THE EVENTS PAGE AS USUAL, UH, RESTAURANTS AND THEN SHOPPING WAS VERY POPULAR. YOU SEE, DOWNTOWN SHOPPING HAS ITS OWN PAGE. AND THEN, UM, JUST THE GENERAL SHOPPING PAGE AS WELL. AND THEN WITH CANON BEACH BREAKING GROUND, THAT PAGE HAS ALSO BEEN VISITED QUITE A BIT FOR OUR APP, THE VISIT WIDGET, OUR STATS WERE MOSTLY FLAT BESIDES OUR SESSION DURATION, WHICH INCREASED, THAT'S ALWAYS POSITIVE TO SEE. AND THEN THE TINY DOORS, UM, THE BIRDS OF DOWNTOWN AND MURALS OF MCKINNEY WERE ALL THE TOP THINGS THAT PEOPLE WERE USING OUR APP FOR. WE HAD, UH, FOUR MEDIA PLACEMENTS LAST MONTH IN FEBRUARY FROM TWO DIFFERENT RELEASES. ONE WAS INTRODUCING TONY AND THEN THE OTHER WAS FOR THE PPA TOURNAMENT. AND THEN THEY ALSO HAD SEVERAL, THEY ALSO PITCHED THE STORIES AS WELL. AND THEY HAD A FEW, UM, TV SEGMENTS DO, UM, SOME MEDIA FOR THEM AS WELL. AND THEN FOR THE WEBSITE AS WELL, WE'VE BEEN WORKING A LOT WITH OUR LOCAL BUSINESSES TO MAKE SURE THEY'RE GETTING LOGGED INTO THE BACK END OF THE WEBSITE AND THEY CAN UPDATE THEIR BUSINESS LISTINGS ON OUR SITE SO THEY CAN UPLOAD NEW PICTURES AND UPDATE THEIR LISTING AND EVERYTHING. SO THAT'S BEEN GOING VERY WELL AND WE'VE WORKED WITH QUITE A FEW OF THEM OVER THE PAST MONTH OR SO TO MAKE SURE THAT THEY HAVE THE TOOLS THEY NEED TO BE SUCCESSFUL. HELLO, UH, FOR SOCIAL MEDIA, EXCUSE ME. UH, IN FEBRUARY, VISIT MCKINNEY'S DIGITAL CHANNELS CONTINUE TO SHOW STRONG REACH AND STUDY AUDIENCE GROWTH ACROSS FACEBOOK, INSTAGRAM, AND LINKEDIN. OUR CONTENT GENERATED ABOUT 367,000 IMPRESSIONS, WHICH IS ROUGHLY A 60% INCREASE COMPARED TO FEBRUARY OF LAST YEAR. UH, WE ALSO ADDED MORE THAN 430 NEW FOLLOWERS WITH THE LARGEST GROWTH ON INSTAGRAM ENGAGEMENT. REMAINED STRONG WITH ABOUT 3,700 INTERACTIONS, AND LINKEDIN CONTINUES TO OUTPERFORM TYPICAL DESTINATION MARKETING BENCHMARKS. UH, OUR AVERAGE ENGAGEMENT RATE IS ABOVE 11%, WHICH IS AMAZING. UM, AND THEN EMAIL MARKETING ALSO KILLING IT. OUR PRIMARY FEBRUARY NEWSLETTER REACHED JUST UNDER 2000 SUBSCRIBERS AND ACHIEVED A 52% OPEN RATE WITH A 7.5% CLICK RATE, WHICH IS REALLY GREAT. UM, WE ALSO FURTHER SEGMENTED OUR EMAILS WHEN ADDING A, UH, UH, SELECT YOUR PREFERENCES EMAIL. SO NOW PEOPLE ARE GETTING EXACTLY THE CONTENT THAT THEY WANT. UM, AND OVERALL OPEN RATES ARE CONTINUING TO FALL IN THE MID 30% RANGE. AND OPEN RATES ARE IN THE MID 60% RANGE. UM, SO YEAH, OVERALL FEBRUARY WAS REALLY STRONG IN A MONTH THAT IS NORMALLY NOT, SO. YAY. ANY QUESTIONS? WHAT'S YOUR FOCUS GONNA BE FOR APRIL? WELL, WE WERE JUST TALKING ABOUT WHAT OUR APRIL FOOLS POST WILL BE, SO YOU'LL HAVE TO STAY TUNED. UM, BIG PUSH ON SPORTS BECAUSE WE DO HAVE A LOT OF SPORTS, UH, EVENTS COMING UP. UH, WE ARE PLANNING SOME CONTENT WITH CITY COMMUNICATIONS TO PROMOTE THE BYRON, I'M REALLY EXCITED ABOUT THAT. IT'S GONNA BE SILLY ON SOCIALS 'CAUSE THAT'S WHAT I DO, AND THEN SARAH'S JUST KILLING IT IN EVERY ASPECT. GOOD JOB. , YOU WANNA ADD ANYTHING I JUST REALLY TOOK OVER? NO, I THINK THAT'S GOOD. UM, AS FAR AS THE WEBSITE GOES, WE'RE DOING A LITTLE BIT OF A HOMEPAGE REFRESH, SO YOU MAY SEE SOME THINGS UPDATED AND CHANGE ON THAT SIDE. AND THEN SAME WITH THE VISIT WIDGET, JUST ADDING MORE TOURS. WE DID A SPRING BREAK ITINERARY LAST MONTH, SO WE'LL GET THE NUMBERS FOR THAT, UM, AND BE ABLE TO SHOW THAT AT THE NEXT BOARD MEETING. BUT THAT'S BEEN PERFORMING REALLY WELL. SO JUST TRYING TO ADD NEW THINGS. I DO WANNA ADD IN APRIL, AT THE END OF APRIL, I THINK APRIL 24TH, THE DEPARTMENT OF JUSTICE IS PUSHING NEW REGULATIONS TO MAKE THE WHOLE INTERNET A DA COMPLIANT, WHICH IS A GOOD THING, BUT IT DOES MEAN THAT FOR SOCIAL, UH, WE HAVE TO REALLY TWEAK OUR STRATEGY AND YOU WILL SEE A LOT OF, UM, VIDEO DESCRIPTIONS AT THE BOTTOM OF OUR CAPTIONS AND VOICEOVERS AND CLOSED CAPTIONING AND ALL SORTS OF STUFF. SO IT'S GONNA BE A TRANSITION, BUT WE'RE DOING IT AND THINGS WILL LOOK DIFFERENT. , I WAS GONNA GIVE A COMPLIMENT. SO I WAS AT THE RACE, SAW A COLLEGE BUDDY'S WIFE RUN BY, AND I SAID, HEY, SCOTTY. AND THEN I SHOT A TEXT TO [00:25:01] MY BUDDY AND HE'S, THEY LIVE IN LUCAS, AND HE'S JUST LIKE, WHATEVER Y'ALL ARE DOING DOWN THERE IN MCKINNEY IS SO MUCH FUN. IT'S SO ENTERTAINING. WE LOVE TO GET THERE. SO IT WAS JUST NICE TO HEAR A FRIEND SAY, Y'ALL ARE KILLING IT YOURSELF. SO THOUGHT I PASS IT ALONG. YEAH, THAT'S GREAT. AND SILLY IS GOOD. YEAH. SILLY GETS CLICKS. WE NEED SILLY. YES, WE THE SILLY. YES. THANK YOU. THANK YOU. THANK YOU. OKAY, [26-0233 Executive Director’s Report] MOVING ON TO AGENDA ITEM TWO SIX DASH 0 2 3 3 EXECUTIVE DIRECTOR'S REPORT WITH AARON WARNER. ALL RIGHT, THANK YOU MADAM CHAIR AND GOOD MORNING BOARD MEMBERS. UH, ALWAYS EXCITING TO, UM, HEAR THESE UPDATES OF EVERYTHING HAPPENING IN MCKINNEY. IT'S, UH, IT'S OFFICIALLY SPRING, WHICH MEANS EVERY WEEK IF YOU LOOK AT THE CALENDAR, THERE'S SOMETHING SIGNIFICANT HAPPENING IN OUR COMMUNITY. THERE'S, THERE'S NOT A SHORTAGE OF FUN THINGS TO DO. UH, IT ALSO KEEPS OUR TEAM BUSY, UH, FOR US. UH, AS MENTIONED TODAY, WE, A LOT OF THE THINGS THAT WE TOUCH THE MOST HAVE BEEN SPORTS AND OUR SPORTS, UM, ESPECIALLY IN THE SPRING. AND SO, UH, A COUPLE WEEKS AGO WE WRAPPED UP THE PPA TEXAS OPEN. THIS WAS YEAR TWO TO HOST THE PROFESSIONAL PICKLEBALL EVENT IN MCKINNEY. UH, WE RECEIVED SOME OF OUR NUMBERS BACK ON THAT, AND THEY WERE, UH, THEY HAD A STRONG IN-PERSON ATTENDANCE AROUND 12,500 PEOPLE, UH, ATTENDING THE EVENT, UH, MORE THAN LAST YEAR. UH, IT IS NATIONALLY TELEVISED. UM, AND SO IT'S ON MULTIPLE STREAMING CHANNELS, AND THEY SENT US A LOT OF REALLY INTERESTING STATS ON THAT. UM, THE BIGGEST ONE BEING, UH, 38 MILLION MINUTES VIEWED. I DON'T REALLY KNOW HOW TO COMPREHEND THAT NUMBER, BUT IT SOUNDS LIKE IT WAS, UH, VIEWED BY A LOT OF PEOPLE, UM, OVER THE FOUR DAYS AND IT OUTPERFORMED LAST YEAR. AND SO, UH, OVERALL THOUGH, UM, THE, THE EVENT, UH, CHANGED, UH, SOME OF THEIR LAYOUT AND I THOUGHT IT WAS, UH, A MUCH BETTER THIS YEAR WITH CHAMPIONSHIP COURTS LOCATION. AND I THINK PEOPLE WERE JUST REALLY HAPPY WITH BEING OUT THERE. IF WE COULD JUST CONTROL THE WIND, UH, WIND AND PICKLEBALL DON'T GO GREAT TOGETHER. SO, UM, THIS PAST WEEKEND WE HOSTED THE, OR PARTNERED AND HELPED HOST THE, UH, MCKINNEY HISTORIC HALF THE FIRST, UH, TIME TO HAVE THAT EVENT HERE IN MCKINNEY. WE HAVEN'T HAD A DEBRIEF WITH THEIR, UH, EVENT ORGANIZERS JUST YET, BUT THAT'S COMING UP SOON. UH, WE HAVE RECEIVED, UM, A FEW, UH, UH, NOTES FROM PEOPLE, UH, ONE OF THEM BEING A DOWNTOWN RESTAURANT THAT, UM, SAID THAT THE MORNING BOOST, UH, REALLY HELPED, UM, LEVEL OUT WHAT WOULD'VE BEEN A PRETTY SLOW SATURDAY BASED ON THE WEATHER. AND SO THEY'RE REALLY THANKFUL FOR HAVING THAT EXTRA BOOST IN THE MORNING. UH, WE HAVE, WE DON'T HAVE THE DATA YET, BUT WE DID GO THROUGH JUST A LIST OF, UM, RESULTS AND WE COUNTED 23 STATES, UH, IN ATTENDANCE, UM, FROM THE, THE RACERS THAT WERE THERE. AND SO, UH, WE'LL GET OFFICIAL DATA AND, UH, AND PRESENT THAT TO YOU GUYS. BUT JUST THOUGHT IT WAS PRETTY INTERESTING TO SEE THAT. UM, JUST BY SCROLLING FOR A FEW SECONDS, YOU COULD COUNT PEOPLE FROM, UM, THAT MANY DIFFERENT PLACES. COMING TO MCKINNEY. UH, I DO WANT TO THANK THE STAFF AND THE TEAM FOR HO UH, FOR RUNNING A WATER STATION, UH, GETTING THERE, UH, BEFORE THE SUN ROSE TO FILL UP GATORADE AND WATER. WE REALLY APPRECIATE YOU GUYS. MR. GRIMES, THANK YOU FOR JOINING THE TEAM AND, AND, AND, UH, HELPING, UH, THE, THE RACERS GET HYDRATED AS THEY RAN THROUGH. AND OF COURSE, EMILY MYRICK ON HER 5K KEITH ON HIS HALF. UH, AND ERIC, I GOT TO PARTICIPATE AND I, YEAH, I THINK THAT WAS IT. BUT IT WAS A GREAT EVENT. UM, THIS WEEK WE, WE DON'T STOP, WE GO STRAIGHT INTO THE INTERNATIONAL GIRLS CUP. WE HAVE THE, UH, THE CER KICKOFF CEREMONY TODAY, UM, AT CRAIG RANCH SOCCER. THERE ARE APPROXIMATELY 150 TEAMS IN TOWN, UH, AT LEAST 10 OF THOSE, UM, BEING INTERNATIONAL. AND, UH, WE'RE LOOKING FORWARD TO THEM HAVING ANOTHER GREAT YEAR. UH, KEEPING THE SOCCER THEME WORLD CUP. UH, IT'S, UH, WE'RE, WE'RE OFFICIALLY ON THE HEELS OF THE WORLD CUP NOW. WE'VE BEEN TALKING ABOUT IT FOR I FEEL LIKE FOREVER. UM, AND IT, AND IT'S HERE, UH, FOR MCKINNEY. WE'RE WORKING ON, UM, A, UH, FULL BRANDING CAMPAIGN THEMED THE SUMMER OF SOCCER. UM, OUR TEAM'S WORKING ON, UH, ON KIND OF THE CREATIVE BEHIND THAT. WE'LL ACTUALLY SHOW SOME OF THE HOTELIERS, UH, LATER TODAY AT THE HOTELIER MEETING. UH, TUFTS IS GONNA SERVE KIND OF AS OUR HOME BASE FOR, UH, FOR ALL THINGS WORLD CUP. THEY'VE GOT, UM, A TON OF TVS INSTALLED. THEY JUST INSTALLED SEVEN MORE. UM, AND THEY ARE GETTING READY TO HOST PEOPLE ALL OVER THAT VENUE. UM, THROUGHOUT THE SUMMER, THEY WILL SHOW EVERY MATCH OF THE WORLD CUP, AND WE WILL TRY TO MAKE SURE THAT PEOPLE, RESIDENTS, AND VISITORS ALIKE KNOW THAT THAT'S A GREAT PLACE TO, TO COME AND ENJOY, UH, THE COMRADERY AROUND SOCCER. UM, AS I MENTIONED, WE HAVE A HOTELIER MEETING, UH, AFTER THIS TODAY WE HAVE ABOUT 35 RSVPS FROM OUR, FROM OUR HOTELIERS. IT'S A MIXTURE OF, UM, OWNERS, GMS, UH, DIRECTOR OF SALES AND AND BEYOND. AND SO IT'S A GREAT, UH, OPPORTUNITY TO GET EVERYBODY COLLABORATING TOGETHER IN MCKINNEY AND TALKING ABOUT WHAT'S AHEAD. UM, AND THE LAST THING IS WE'RE JUST ENTERING, UH, WITH SPRING. IT'S NOT ONLY BUSY WITH EVENTS, BUT IT'S ALSO KIND OF KICKS OFF TRAVEL SEASON FOR A LOT OF OUR TEAM. UH, BETWEEN, UM, TRADE SHOWS AND EVENTS. TONY'S ABOUT TO GO TO SPORTS ETA AND REPRESENT MCKINNEY. UM, WE'VE GOT SEVERAL OTHER EVENTS. SO ALL THROUGHOUT APRIL, I DON'T THINK THERE'S A WEEK WHERE WE'RE ALL IN THE OFFICE TOGETHER 'CAUSE WE WILL ALL BE DOING SOMETHING. [00:30:01] SO, UH, IT'LL BE A BUSY TIME, BUT IT'S A GOOD OPPORTUNITY TO CONTINUE TO PROMOTE MCKINNEY AND ALL THE GREAT WORK. AND I'LL STAND FOR ANY QUESTIONS, ANYONE, OR I'LL SIT FOR QUESTIONS. , SORRY I'M NOT STANDING. ALL RIGHT, THANK YOU. ALL [26-0234 Presentation on the Hotel Occupancy Tax (HOT) By Scott Joslove, President & CEO of THLA] RIGHT. MOVING ON TO REGULAR AGENDA ITEM TWO SIX DASH 2 0 2 3 4 PRESENTATION ON THE HOTEL OCCUPANCY TAX VIA SCOTT JOS LOVE PRESIDENT AND CEO OF TEXAS HOTEL AND LODGING ASSOCIATES. HELLO, MADAM CHAIR AND MEMBERS OF THE, UH, COMMITTEE. UM, I AM GLAD TO BE HERE. I'M SCOTT JAZA, PRESIDENT, CEO OF THE TEXAS HOTEL AND LODGING ASSOCIATION. I'VE BEEN IN THAT CAPACITY NOW FOR 26 YEARS. AND BEFORE THAT I WAS THE LEAD ATTORNEY FOR THE TEXAS MUNICIPAL LEAGUE AND CHIEF OF MUNICIPAL AFFAIRS FOR TWO ATTORNEY GENERALS IN TEXAS. MY ROLE WHEN I GOT HIRED 26 YEARS AGO WAS TO CREATE A LIAISON. THEY WANTED SOMEONE WHO COULD WORK BOTH WITH CITIES AND COUNTIES AS WELL AS WITH THE HOTEL INDUSTRY AND CREATE PARTNERSHIPS THAT WOULD PROMOTE A POSITIVE BUSINESS ENVIRONMENT FOR THE CITY AND FOR THE LODGING AND TOURISM INDUSTRY. SO I'VE DONE HUNDREDS AND HUNDREDS OF THESE SPEECHES WHEN I WAS WITH TML AND NOW WITH THE HOTEL, UH, INDUSTRY AND WORKING WITH CONVENTION AND VISITORS BUREAUS ON THE PROPER USE OF THE LOCAL HOTEL TAX. WERE A NUMBER OF YOU AT MY LAST PRESENTATION. I THINK A A COUPLE OF Y'ALL WERE, YEAH. WELL I KNOW YOU HAVE SOME TURNOVER. SO I'M GONNA COVER THE HIGHLIGHTS OF WHAT ARE THE NINE USES IN THE TWO PART TESTS. AND IF YOU HAVE ANY QUESTIONS, FEEL FREE TO ASK IN ROUTE. I'M GLAD TO ANSWER THEM. WHEN YOU THINK. WHEN I FIRST STARTED WITH THE MUNICIPAL LEAGUE, I USED TO DO TALKS FOR MAYORS AND COUNCIL MEMBERS ABOUT WHAT CAN YOU USE YOUR GENERAL REVENUES FOR? AND THE LARGEST REVENUE FOR MOST CITIES IS YOUR PROPERTY TAX. AND PROPERTY TAX YOU CAN USE FOR ANY PUBLIC PURPOSE UNDER STATE LAW, ANY PUBLIC PURPOSE. IT COULD BE FOR TOURISM, LAW ENFORCEMENT, ROADS, STREETS, HEALTHCARE, ANY PUBLIC PURPOSE, YOUR GENERAL 1% CITY SALES TAX, SAME THING, ANY PUBLIC PURPOSE. BUT THEN CITIES OFTEN HAVE SPECIAL REVENUE SOURCES LIKE A SALES TAX FOR ECONOMIC DEVELOPMENT. WHAT DO YOU THINK YOU COULD USE THAT FOR? ECONOMIC DEVELOPMENT, , THERE YOU GO. YOU GET A CAR. AND, AND SO IT IS A DEDICATED TAX, EVEN THOUGH YOU MIGHT WANT TO USE IT FOR, UH, LAW ENFORCEMENT. IT'S DEDICATED UNDER ARTICLE 51, 90 0.6 OF THE TEXAS STATUTES TO ECONOMIC DEVELOPMENT FOR A FOUR A OR FOUR B SALES TAX. WHAT ABOUT IF YOU HAVE A HOSPITAL DISTRICT, WHAT COULD YOU USE THAT FOR? IT'S GETTING EASIER. , ANYBODY, LET'S GO WITH HOSPITALS. HOSPITALS WINS IT, YOU GET A CAR. UM, IT'S ALSO A DEDICATED TAX. YOU COULDN'T USE IT FOR TOURISM OR, OR OR OTHER PURPOSES. IT'S DEDICATED TO THAT. WHAT TYPE OF TAX DO YOU THINK THE HOTEL OCCUPANCY TAX IS? , IT'S A DEDICATED TAX . OKAY. WHAT THAT MEANS IS YOU MAY HAVE WONDERFUL PROGRAMS AT THE CITY LEVEL. YOU MAY HAVE LOTS OF NEEDS THAT YOU WANT TO FUND, BUT UNLESS YOU CAN'T USE IT FOR GENERAL PUBLIC PURPOSES, IT HAS TO BE A PURPOSE THAT IS OUTLINED UNDER CHAPTER 3 51 OF THE TAX CODE. SO IT'S NOT JUST A, UH, UH, UH, WHETHER OR NOT IT MAKES SENSE OR WHETHER OR NOT IT'S A GOOD PURPOSE. TO GIVE YOU AN EXAMPLE, I GOT A CALL FROM A MAYOR OF A COMMUNITY IN THE DALLAS METROPLEX WHO ASKED ME, WE ARE PUTTING IN A NEW WATER TREATMENT PLANT AND WE'D LIKE TO USE HOTEL OCCUPANCY TAX FOR THE WATER PLANT. AND I SAID, WELL, MAYOR, UM, HELP ME TO UNDERSTAND WHY YOU THINK THAT WOULD BE AVAILABLE OUT OF THE HOTEL TAX. HE SAID, WELL, OUR TOURISTS ARE COMPLAINING THAT THE WATER DOESN'T TASTE GOOD. AND HE SAID, SO WE FEEL IF WE, IF WE, UH, DO THE WATER TREATMENT PLAN AND USE THE HOT TAX, UM, WE'LL BE ABLE TO USE IT FOR THAT PURPOSE. AND I SAID, MAYOR, I'M CONCERNED THAT THAT DOESN'T, IT FALLS ASTRAY OF THE LAW. AND SO HE ASKED FOR AN ATTORNEY GENERAL OPINION, THEY GOT AN ATTORNEY GENERAL OPINION THAT SAID, NO, IT FALLS ASTRAY OF GENERAL INFRASTRUCTURE. YOU CAN'T USE IT FOR PURPOSES, YOU KNOW, THAT ARE INDIRECTLY PROMOTE TOURISM. IT HAS TO BE SOMETHING THAT HAS A DIRECT PROMOTION OF TOURISM IN THE HOTEL AND CONVENTION INDUSTRY. UH, ANOTHER EXAMPLE IS I HAD A MAYOR CALL ME FROM A SMALLER COMMUNITY WHO ASKED ABOUT USE OF THE HOTEL TAX FOR TENNIS COURTS. AND AT THAT TIME WE ONLY HAD FIVE CATEGORIES. AND I WENT OVER THE CATEGORIES WITH THE MAYOR AND I SAID, MAYOR, THE, UH, TENNIS COURTS, THE FIRST CATEGORY IS, IS UM, CONVENTION CENTERS. AND HE SAID, WELL, SCOTT, WE CAN PUT OUT EXTRA CHAIRS AND SEATING . AND I SAID, BUT THAT'S NOT YOUR PRIMARY [00:35:01] USE OF THAT FACILITY, CORRECT? HE SAID, NO. AND I SAID, CONVENTION CENTERS WOULDN'T WORK. I SAID, REGISTRATION AND CONVENTION DELEGATES IS THE SECOND CATEGORY. HE SAID, WELL, WE'RE NOT REGISTERING ANYBODY. THAT'S NOT GONNA WORK. AND I SAID, MAYOR, CATEGORY NUMBER THREE IS ADVERTISING AND PROMOTION. AND HE SAID, WELL, WE CAN PUT UP SIGNS AND PROMOTIONS ON ALL THE FENCES FOR THE, FOR THE COURTS. AND I SAID, YOU CAN PROBABLY PAY FOR THE SIGNS, BUT NOT FOR THE TENNIS COURTS. AND I SAID, CATEGORY NUMBER FOUR IS PROMOTION OF THE ARTS. I SAID, WE'RE GETTING OUTTA THE LAST TWO MAYOR, PROMOTION ARTS. HE SAID, WE COULD PIPE IN MUSIC, SCOTT . AND I SAID, YOU COULD PROBABLY PAY FOR THE MUSIC, MAYBE NOT IF IT'S PIPED IN, IF IT'S KIND OF, YOU KNOW, UH, UH, SOME SORT OF PERFORMANCE, BUT NOT FOR THE TENNIS COURTS. AND FINALLY I SAID, MAYOR, LAST CATEGORY, UM, HISTORICAL RESTORATION AND PRESERVATION. HE SAID, SCOTT, IT'S A REALLY OLD TENNIS COURT. , , BUT YOU'RE NOT RESTORING IT. YOU'RE BASICALLY BUILDING A BRAND NEW ONE THAT'S NOT PRESERVATION AND RESTORATION. THAT'S A NEW TENNIS COURT. AND HE SAID, WITH ALL DUE RESPECT, SCOTT, I'M GONNA ASK FOR AN AG OPINION. AND I SAID, MAYOR, I USED TO WORK FOR THE ATTORNEY GENERAL. TRUST ME, THESE ARE, YOU KNOW, THE OPINIONS COMMITTEE. THESE ARE FOLKS WHO HIS CHILDREN DID NOT PLAY WELL WITH FEATHERS, , YOU KNOW, WHAT DO THEY SAY 98% OF THE TIME AT THE OPINIONS COMMITTEE? NO, THE OTHER 1.9% OF THE TIME HELD TO THE NO . SO I SAID, UNLESS YOU THINK THAT YOU HAVE AN ANSWER THAT'S BLACK AND WHITE CLEAR, THEY'RE GONNA TELL YOU NO. WELL, HE WENT AHEAD AND ASKED AND THEY SURE ENOUGH, THEY SAID, NO, YOU CANNOT SPEND HOTEL TAX ON A TENNIS COURT, EVEN THOUGH IT PROMOTED HOTEL ACTIVITY. THERE WAS A LOT OF REGIONAL TOURNAMENTS, THE HOTELS THAT SIGNED A PETITION SUPPORTING IT. IT WASN'T THAT IT DIDN'T PROMOTE TOURISM, IT'S THAT THERE WASN'T A CATEGORY THAT IT FIT INTO. SO THAT BRINGS ME TO THE TWO PART TEST. THE FIRST PART OF THE TEST, IT'S A TWO-PRONG TEST. EVERY EXPENDITURE OF THE LOCAL HOTEL TAX MUST DIRECTLY PROMOTE TOURISM AND THE HOTEL AND CONVENTION INDUSTRY. NOW MY, I HAD A BLIND ENGLISH TEACHER WHEN I WAS GROWING UP IN HIGH SCHOOL AND SHE USED TO HAVE US DIAGRAM OUT SENTENCES TO GET THE MEANING AND, AND TO REALLY, YOU KNOW, UNDERSTAND THE IMPORT AND HOW WE WERE, YOU KNOW, THINKING ABOUT WRITING. AND SO SHE WOULD'VE SAID, EVERY EXPENDITURE, NOT MOST, EVERY EXPENDITURE MUST DIRECTLY PROMOTE. SO IT'S NOT AN INDIRECT PROMOTION. IF YOU LOOK AT TEXAS LAW LIKE I HAVE FOR OVER 30 YEARS AND INTERPRETED THE LAWS, IT'S VERY RARE FOR THE TEXAS LEGISLATURE TO REQUIRE YOU TO DIRECTLY DO SOMETHING. USUALLY YOU HAVE TO PROMOTE PUBLIC HEALTH AND SAFETY, PROMOTE COMMUNITY DEVELOPMENT, PROMOTE ECONOMIC DEVELOPMENT, WHAT IT, WHATEVER IT MAY BE. BUT IT DOESN'T REQUIRE YOU TO DIRECTLY DO SOMETHING. IN THIS CASE IT SAYS EVERY EXPENDITURE MUST DIRECTLY PROMOTE TOURISM. TOURISM IS DEFINED AS BRINGING PEOPLE FROM ANOTHER CITY OR ANOTHER COUNTY TO YOUR AREA. THERE'S NOT I, IN RESEARCH, WE DEFINE IT USUALLY BY OVER 50 MILES. THE LEGISLATURE JUST SAID ANY OTHER CITY OR ANY OTHER COUNTY COMING CONSTITUTES A TOURIST. BUT IT DOESN'T END THERE. IT SAYS YOU MUST DIRECTLY PROMOTE TOURISM AND THE HOTEL AND CONVENTION INDUSTRY. I ONCE GOT A CALL FROM FRANK GARZA, THE CITY ATTORNEY OF SAN ANTONIO AT THAT TIME, AND HE SAID, SCOTT, I WANT TO GET YOUR OPINION ON THE USE OF HOTEL TAX FOR THIS PROGRAM. AND I SAID, DO YOU GET FOLKS WHO ARE STAYING AT YOUR AREA HOTELS? AND HE SAID, SCOTT, THE STATUTE ONLY SAYS I NEED TO PROMOTE TOURISM. WE GET FOLKS WHO COME IN FROM FOR THE DAY AND THEY LEAVE. BUT THAT WAS OUR TOURISTS AND IT PROMOTES A LOT OF DAY TRAFFIC. AND I SAID, READ THAT STATUTE IN 3 51 0.101 A. READ THAT TO ME. HE SAID, SCOTT, EVERY EXPEND MUST DIRECTLY PROMOTE TOURISM. I SAID, KEEP READING AND THE HOTEL AND CONVENTION INDUSTRY. I SAID, THAT'S THE CHALLENGE. IF IT SAID YOU NEED TO DIRECTLY PROMOTE TOURISM OR THE HOTEL AND CONVENTION INDUSTRY, EITHER WOULD SATISFY THE STATUTE, BUT BECAUSE IT SAYS YOU NEED TO DIRECTLY PROMOTE TOURISM AND THE HOTEL AND CONVENTION INDUSTRY, YOU NEED TO SATISFY BOTH A AND B. YOU NEED TO BRING PEOPLE FROM ANOTHER CITY OR ANOTHER COUNTY. AND IT NEEDS TO HAVE A DIRECT IMPACT ON HOTEL AND CONVENTION ACTIVITY. NOW, HOTEL AND CONVENTION ACTIVITY IS KIND OF A TERM OF ART. NOT EVERY EVENT'S GONNA BE A CONVENTION. A LOT OF OUR CITIES DON'T EVEN HAVE A CONVENTION CENTER, BUT BASICALLY A GATHERINGS HOTEL ACTIVITY IF IT HAS A DIRECT IMPACT. NOW THE BEAUTY OF YOUR LEADERSHIP ON THIS, ON THIS NOW ARE Y'ALL A BOARD OR A COMMITTEE OR A COMMISSION? A BOARD. BOARD. A BOARD. ALRIGHT, THANK YOU. I JUST WANNA MAKE SURE I REFER TO YOU APPROPRIATELY. UM, THE BEAUTY OF YOUR BOARD IS THAT THE STATUTE DOES NOT DEFINE HOW BIG OF A DIRECT IMPACT THAT YOU NEED TO HAVE ON TOURISM AND THE HOTEL AND CONVENTION INDUSTRY. THEY LEAVE THAT [00:40:01] AT YOUR DISCRETION. SO YOU DETERMINE, YOU KNOW, WHAT IS A REASONABLE RETURN. I WOULD ARGUE AS, AS AS BOARD MEMBERS, YOU DON'T WANT TO SPEND 10,000 TO PROMOTE $500 IN HOTEL ACTIVITY, BUT YOU MIGHT SAY THERE'S CERTAIN LEVELS OF RETURN FOR OUR COMMUNITY THAT WE THINK ARE REASONABLE AND, AND OUR FIDUCIARY DUTIES OF BEING ON THIS BOARD. WE'RE COMFORTABLE WITH THAT. ROI SOMETIMES WHEN YOU HAVE AN INITIAL EVENT, YOU MAY NOT HAVE ANY HISTORY AND YOU'RE GONNA ANTICIPATE WHAT THE IMPACT WILL BE. SOMETIMES IT TAKES A COUPLE OF YEARS FOR THINGS TO BUILD UP. SO AGAIN, THAT'S WHAT YOU'LL NEED TO NURTURE AND EVALUATE WHEN YOU'RE MAKING THESE DECISIONS. BUT YOU'RE LOOKING AT EVERY EXPENDITURE MUST DIRECTLY PROMOTE TOURISM AND THE HOTEL AND CONVENTION INDUSTRY. ANY QUESTIONS ABOUT THAT FIRST PART OF THE TEST? YES, SIR. SO I FEEL LIKE THE THE LAST PART, WHAT YOU SAY IS KIND OF TO SU SUPPORT THE HOTELS 'CAUSE THEY'RE THE ONES THAT ARE PAYING IN THIS TAX. SO THEY KIND OF HAVE A VOICE SAYING, I DON'T WANT MY MONEY GOING TO A TENNIS COURT. YOU KNOW, THAT'S KIND OF A PROTECTION FOR THEM. IS THAT KIND OF A SAFE ASSESSMENT TO SAY? IT IS. AND I'LL TELL YOU ONE THING I ALWAYS EXPLAIN TO THE HOTELIERS. 'CAUSE SOMETIMES HOTELS WILL SAY, THIS IS OUR MONEY. YEAH, THIS IS OUR TAX. IT'S NOT, IT'S PUBLIC MONEY. IT'S, IT'S A PUBLIC TAX. AND NO MORE THAN A SALES TAX IS WALMART'S, YOU KNOW, MONEY OR WAL, EVEN THOUGH WALMART COLLECTS THE TAX FROM ITS CUSTOMERS. UM, THE HOTEL TAX IS PUBLIC FUNDING JUST LIKE ANY OTHER TAX, BUT IT IS A DEDICATED TAX AND BACK, OH, UH, 70 YEARS AGO, WELL, LET'S SEE, WAS IT, YEAH, 70 YEARS AGO OR SO WHEN THEY, WHEN THEY ADOPTED THE FIRST HOTEL TAX IN TEXAS AT THE LOCAL LEVEL, IT WAS A COMPROMISE. UM, AT FIRST WHEN THEY LOOKED AT THE TAX, IT WAS A TOURISM TAX AND IT TO ATTRACTIONS, HOTELS AND RESTAURANTS, ALL, EVERYBODY WHO BENEFITS FROM TOURISM BASICALLY AND RESTAURANTS GOT OUT OF IT. ATTRACTIONS GOT OUT OF IT. AND THE ONLY ONES THAT REMAINED UNDER THE TAX AND THAT LEGISLATURE AND AGREED TO BE SUBJECT TO IT WERE HOTELS. AND THE COMPROMISE WAS THE HOTEL INDUSTRY SAID, EVEN THOUGH WE KNOW IF YOU HAVE A BIG EVENT, YOU'RE GONNA FILL UP THE RESTAURANTS, YOU'RE GONNA FILL UP THE ATTRACTIONS AND HOPEFULLY WILL HAVE AN IMPACT ON THE HOTELS. WE'LL SINGLE OURSELVES OUT. AS LONG AS YOU SAY THAT AT LEAST EVERY EXPENDITURE WILL HAVE SOME IMPACT ON US. WE JUST DON'T WANT YOU TO SPEND MONEY ON GENERAL PROGRAMS THAT YOU'RE TAXING ONLY US TO PAY FOR. 'CAUSE HOTELS ALREADY PAY PROPERTY TAX. THEY ALREADY PAY SALES TAX. THEY, IF THEY'RE A FULL SERVICE, THEY PAY MIXED BEVERAGE TAX. YOU KNOW, THEY MAY HAVE FRANCHISE TAX RESPONSIBILITIES DEPENDING ON THE COMMUNITY. SO THE, THE COMPROMISE OF THE LEGISLATURE WAS IF WE'RE GONNA SINGLE OUT ONLY ONE INDUSTRY, THEN WE'RE GONNA MAKE SURE IT HAS AN IMPACT ON THAT INDUSTRY. IS THAT WAS THE COMPROMISE 70 YEARS AGO. GOOD, THANKS. OKAY, SO THAT'S THE FIRST PRONG OF THE TEST. ANY OTHER QUESTIONS ABOUT THE DIRECT IMPACT ON TOURISM IN THE HOTEL AND CONVENTION? ALRIGHT, THE SECOND PART OF THE TEST IS EVERY EXPENDITURE MUST FIT INTO ONE OF NINE STATUTORY CATEGORIES. NOW THE FIRST CATEGORY IS CONVENTION CENTERS. THAT CATEGORY ALSO INCLUDES AUDITORIUMS, EXHIBITION HALLS, UM, ARENAS. UM, SO IT'S, AND BUT THE TEST, IT MUST BE PRIMARILY USED FOR CONVENTIONS AND MEETINGS OF OUT OF TOWN GUESTS IF IT'S, AND PRIMARILY MEANS OVER 50%. SO IF YOU HAVE 10,000 PEOPLE THAT USE THAT CIVIC CENTER OR THAT THAT, THAT THAT FACILITY, THAT CONVENTION CENTER FACILITY, IF YOU HAVE 10,000 PEOPLE USE IT, 5,001 MUST EITHER BE CONVENTION GUESTS OR OUT OF TOWN FOLKS. THE PURPOSE IS THEY DIDN'T WANT TO HAVE EVERY COMMUNITY CENTER OR LOCAL, PURELY LOCAL FACILITY OR PRIMARILY LOCAL FACILITY COMING UNDER THE GUISE OF BEING FUNDED BY HOTEL TAX. SO THEY SAID, IF THAT'S THE PRIMARY USE OF OVER 51%, ANOTHER WAY TO LOOK AT IT'S PULL UP YOUR CALENDAR OF EVENTS. IF YOU HAVE A CALENDAR OF EVENTS AND YOU HAD A HUNDRED EVENTS, AT LEAST 51 OF THEM SHOULD BE USED FOR CONVENTIONS OR OUT OF TOWN MEETING. YOU GET MEETINGS OUT A TOWN GUESS FROM ANOTHER CITY OR ANOTHER COUNTY. AND SO YOU HAVE TO MEET THE PRIMARY USE TEST. ANOTHER SUBCATEGORY, THE CONVENTION CENTER CATEGORY IS VISITOR CENTERS. SO IF YOU HAVE A VISITOR CENTER, YOU CAN FUND THAT UNDER THE, UH, CONVENTION CENTER CATEGORY, BUT YOU CAN ONLY FUND THE PORTION OF THAT COST THAT'S ATTRIBUTABLE TO DIRECT LABOR. THAT IS HANDING OUT DISTRI VISITOR INFORMATION, UH, MATERIALS OR HELPING VISITORS IN, IN, IN, IN, YOU KNOW, FROM ANOTHER CITY OR ANOTHER COUNTY. WE HAD ONE COMMUNITY IN TEXAS THAT HAD AN INFORMATION DESK OUTSIDE OF THEIR WATER UTILITY DEPARTMENT [00:45:01] AND THEY SAID THIS IS THE VISITOR CENTER, BUT THE REALITY WAS THE ONLY ONES GOING THERE, WERE PEOPLE GOING TO PAY THEIR, YOU KNOW, MUNICIPAL COURT CITATION OR THEIR WATER BILL OR THINGS LIKE THAT OR GET A BUILDING PERMIT. IT WAS NOT, YOU KNOW, FREQUENTED BY TOURISTS. WE'VE HAD OTHER FOLKS, WE HAD ONE COMMUNITY, I WON'T MENTION ITS FULL NAME, BUT IT BEGINS WITH OS AND ENDS WITH TIN. HMM. UM, AND THEY WANTED TO, AT ONE POINT THEY CALLED ME AND THEY SAID, SCOTT, WE'RE GOING TO DECLARE EVERY ONE OF OUR, UH, UM, UH, REC PARKS AND REC FACILITIES AS A VISITOR CENTER OR WE'RE GONNA PUT A VISITOR BROCHURE RACK AND THEN THAT WAY WE CAN PAY FOR THE ENTIRE FACILITY. RIGHT. I SAID, YOU COULD PAY FOR THE RACK, BUT NOT FOR THE WHOLE FACILITY. WELL, THEY DIDN'T BELIEVE THAT. SO WE WENT BACK TO THE, UH, LEGISLATURE AND AMENDED THE VISITOR CENTER DEFINITION TO SAY, YOU CAN ONLY PAY FOR THE PORTION OF THE FACILITY THAT'S USED FOR THAT PURPOSE. FOR VISITOR CENTER PURPOSES. YOU CAN'T PAY FOR EVERYTHING BECAUSE YOU PUT A LABEL ON IT. THE SAME THING IS CALLING A A FACILITY OR CIVIC CENTER DOESN'T MAKE IT ELIGIBLE. YOU HAVE TO MEET THE PRIMARY USE TEST. ANY QUESTIONS ABOUT THE CONVENTION CENTER OR CIVIC CENTER VISITOR CENTER? SECOND CAT, I HAVE A QUESTION. HOW MANY, HOW MANY VISITOR CENTERS CAN YOU HAVE IN A CITY? YOU CAN HAVE AS MANY AS YOU WANT. UM, THERE'S NOT A LIMIT ON IT, BUT EACH ONE OF THEM CAN ONLY BE FUNDED TO THE EXTENT THAT THEY'RE USED. LIKE YOU CAN PAY FOR THEIR OVERHEAD, YOU CAN PAY FOR THEIR STAFFING, YOU CAN PAY FOR ALL THEIR COSTS TO THE EXTENT THAT THAT FACILITY IS USED FOR PROMOTING VISITORS AND, AND DISTRIBUTING VISITOR INFORMATION MATERIAL. A CLASSIC EXAMPLE IS IN A LOT OF OUR SMALLER COMMUNITIES IN TEXAS, THE CHAMBER OF COMMERCE OPERATES THE VISITOR CENTER AND THEY DO ECONOMIC DEVELOPMENT OUT OF THEIR, THEIR OFFICE AND THEY DO VISITOR WORK OUT OF THEIR OFFICE. SO THEY OFTEN WANT TO PAY FOR THE ENTIRE FACILITY. BUT WE ALWAYS TELL THEM THAT IF YOU SPEND 30% OF YOUR TIME AND YOUR STAFF FOCUS ON ECONOMIC DEVELOPMENT AND 70% ON TOURISM, YOU SHOULD ONLY COVER 70% OF THE COST OUT OF THE HOTEL TAX. SO YOU LOOK AT WHATEVER THE PERCENTAGE IS, THAT'S PURELY FOR VISITORS AND THAT'S WHAT YOU'RE ELIGIBLE FOR. DOES THAT HELP? MM-HMM . OKAY, GOOD. UM, SECOND CATEGORY IS REGISTRATION OF CONVENTION DELEGATES. THAT'S A BIG CITY EXPENSE WHERE YOU HAVE A BIG CONFERENCE AND THEY HAVE ALL THOSE PEOPLE LINED UP TO GIVE OUT THE MATERIALS. THEY CAN PAY THE STAFF CATEGORY NUMBER. ANY QUESTIONS ABOUT REGISTRATION AND CONVENTION DELEGATES? UH, CATEGORY NUMBER THREE IS ADVERTISING AND PROMOTION. IF YOU BUILD IT, THEY DON'T NECESSARILY COME. YOU GOTTA MARKET. AND I CAN'T TELL YOU HOW IMPRESSED I WAS BY YOUR MARKETING REPORT, UM, THE WORK THAT Y'ALL DO IN SOCIAL MEDIA AND IN MARKETING AND TRACKING ALL THAT. AND AARON IS RESPECTED STATEWIDE FOR HIS PROWESS AS AN AS A CVB DIRECTOR. SO YOU, YOU HAVE A TEAM AND YOU ALSO HAVE THE NATURAL RESOURCES. YOU CAN'T COME TO MCKINNEY WITHOUT BEING IMPRESSED BY LAST TIME I CAME HERE, I WENT AND HUNG OUT AROUND YOUR DOWNTOWN AND ATE AND WALKED YOUR, WALKED AROUND AND IT'S, IT'S JUST SUCH A CHARMING, WONDERFUL PLACE TO VISIT. AND YOU AND, AND PEOPLE GO AWAY HAPPY. SO YOU HAVE THE BEAUTY OF THEY LEAVE THEIR MONEY AND THEN THEY GO AWAY, WHICH IS EXACTLY WHAT YOU WANT OUT OF IT, . SO, UM, IT'S, IT'S THINGS ARE WORKING AND YOU'RE, AND YOU'RE PROMOTING THEM AND YOU'RE CELEBRATING THEM AND YOU'RE PRESERVING THEM. SO ADVERTISING AND PROMOTION CAN BE YOUR SOCIAL MEDIA CAMPAIGN, IT CAN BE MARKETING, UM, IT CAN BE SPONSORSHIPS. LIKE WHEN YOU HAVE ALL YOUR SPORTING EVENTS, EVEN THOUGH RIGHT NOW THERE'S NOT A CATEGORY THAT YOU FIT INTO FOR SPORTING EVENTS, YOU COULD DO IT UNDER A SPONSORSHIP, UNDER IT'S A PROMOTION OF, OF YOUR CITY IN, IN ORDER TO GET THEM AT THIS EVENT OR A PROMOTION OF THIS ACTIVITY. SO, AND THAT'S SUCH AN IMPORTANT, UH, CAPACITY. THERE'S NO LIMIT. IN FACT, THERE'S A MINIMUM YOU HAVE TO SPEND AT LEAST ONE SEVENTH, WHICH IS JUST OVER 14% ON ADVERTISING AND MARKETING. BUT I DON'T KNOW OF ANY CITY THAT SPENDS ONLY 14%. MOST CITIES SPEND BETWEEN 30 AND 70% ON MARKETING. ANY QUESTIONS ABOUT ADVERTISING? AND ANOTHER THING THAT ADVERTISING PROMOTION IS GETTING FOLKS ON DIFFERENT WEBSITES, UH, DOING FAM TOURS. YOUR YOUR OWN WEBSITE. I KNOW Y'ALL LIST THROUGH A PARTNERSHIP WITH US, ALL OF YOUR HOTELS ON TEXAS LAUNCHING.COM. UH, TOURISM WIDGET OR THE WIDGET ON TOUR. UH, UM, OH, IT'S, OH SHOOT, IT'S ANOTHER, UH, THERE'S THE TRAVEL TEXAS WEB TRAVEL TEXAS WEBSITE, AND I THINK TOUR TEXAS WEBSITE IS THE THIRD ONE. AND SO, UH, THAT MARKETING GETS YOU, UH, UH, LISTED ON THESE SITES AND IT PROMOTES YOUR HOTEL ACTIVITY. UM, ADVERTISING AND PROMOTION. ANY QUESTIONS ABOUT [00:50:01] ADVERTISING AND PROMOTION? OKAY, CATEGORY NUMBER FOUR IS PROMOTION OF THE ARTS. IT'S EVERY CONCEIVABLE ART TOUR, TEXAS. THANK YOU. UM, EV EE EVERY CONCEIVABLE ART FORM IS INCLUDED FROM PAINTING TO DRAMA TO FILM, TO SCULPTURE, TO POETRY THEY LIST. AND THEN THERE'S A CATCHALL FOR ANY OTHER, YOU KNOW, UH, PERFORMING ART OR, OR, OR YOU KNOW, UH, ART FORM THAT, THAT THAT IS CONCEIVED. SO VIRTUALLY ANY ART FORM YOU CAN PROMOTE IT. BUT REMEMBER IT'S A TWO PART TEST. IT'S NOT ENOUGH THAT IT'D BE A PROMOTION OF THE ARTS. IT ALSO HAS TO HAVE AN IMPACT ON TOURISM IN THE HOTEL AND CONVENTION INDUSTRY. WE HAD A ATTORNEY GENERAL'S OPINION THAT CAME OUT OF THE CITY OF LAKEWAY, TEXAS. AND THEY HAD CALLED ME AND ASKED WHETHER OR NOT THEY COULD USE HOTEL TAX ON A QUILT DISPLAY AT THEIR SENIOR CITIZEN CENTER. AND I SAID, WELL, YOUR SENIOR CITIZEN CENTER IS IT FREQUENTED MOSTLY BY LOCALS? AND THEY SAID YES. AND THEY SAID, BUT IT'S A PROMOTION OF THE ARTS. AND I SAID, WELL, QUILTING IS AN ART FORM AND GENERALLY A QUILTING DISPLAY I THINK YOU COULD HAVE IS A PROMOTION OF THE ARTS. BUT THE QUESTION IS WHETHER OR NOT IT, UM, WOULD HAVE A DIRECT IMPACT ON TOURISM AND HOTEL AND CONVENTION ACTIVITY. 'CAUSE AT YOUR SENIOR CITIZEN CENTER, YOU, YOU KNOW, IT'S, IT'S PURELY LOCAL BY YOUR OWN ADMISSION. WELL, THEY WENT AHEAD AND ASKED FOR AN AG OPINION. THE AG SAID IT'S NOT ENOUGH THAT SOMETHING PROMOTE THE ARTS. YOU ALSO HAVE TO SHOW THAT IT HAS A DIRECT IMPACT ON TOURISM AND THE HOTEL AND CONVENTION INDUSTRY. SO IT IS TRULY A TWO PART TEST. UM, THERE IS A CAP ON THE AMOUNT YOU CAN SPEND ON THE, UH, ARTS CATEGORY. NO MORE THAN 15% OF YOUR TOTAL HOTEL TAX. SO IF YOU HAD A HUNDRED THOUSAND IN HOTEL TAX REVENUES, YOU'D ONLY SPEND 15,000 HISTORIC. ANY QUESTIONS ON PROMOTION OF THE ARTS? NOW, PROMOTION OF THE ARTS, I WOULD NOTE FOR YOU IS, UM, GENERALLY, UH, SPONSORSHIP OF EVENTS, MAYBE PAYING FOR CERTAIN COSTS AT DIFFERENT EVENTS. AND YOU SHOULD BE ASKING THEM TO MEASURE WHAT THEIR IMPACT IS AND REPORT BACK TO YOU IN WHATEVER WAYS THEY CAN. WE WORK WITH ARTS GROUPS ACROSS THE STATE AND TEXANS FOR THE ARTS ON HOW TO HELP QUANTIFY THAT AND, AND GIVE EXAMPLES. UM, BUT YOU NEED TO MAKE SURE THAT WHEN YOU HAVE AN ARTS EVENT LIKE THAT AND, AND YOU'RE FUNDING AND YOU'RE DOING YOUR FUNDING AND APPLICATION PROCESS, THAT THEY UNDERSTAND IT'S NOT ONLY ABOUT THE ARTS, IT'S ABOUT, UH, COVERING THOSE COSTS THAT, THAT ARE ELIGIBLE DUE TO THEIR IMPACT ON TOURISM AND HOTEL ACTIVITY. IT IS NOT FOR PHYSICAL FACILITIES OF THE ARTS. SO IF YOU HAVE A COST FOR AN EVENT, THAT'S ONE THING, BUT IF FOR THEIR MORTGAGE OR FOR BUILDING, YOU KNOW, A NEW FACILITY, THE ATTORNEY GENERALS HAS SAID, THERE'S NO WORDING IN THE STATUTE THAT SUGGESTS YOU COULD DO CONSTRUCTION COSTS OR PHYSICAL FACILITY COSTS, YOU KNOW, IN TERMS OF IMPROVING IT OR RENOVATING IT. ANY OTHER QUESTIONS ABOUT ARTS? OKAY, FIFTH CATEGORY IS HISTORICAL RESTORATION AND PRESERVATION. THAT'S THE CATEGORY FOR HISTORIC REENACTMENTS. IT MAY BE FOR A MUSEUM. THAT CATEGORY HAS BEEN, UH, DOES HAVE WORD ABOUT, UH, IT HAS WORDING THAT SUGGESTS IT COULD BE USED FOR A PHYSICAL FACILITY. AND WE HAVE SOME MUSEUMS IN TEXAS THAT HAVE BEEN BUILT AND MAINTAINED UNDER HISTORICAL RESTORATION AND PRESERVATION BECAUSE THE RESTORE AND PRESERVE IT, YOU HAD TO HOUSE IT IN A FACILITY. SO HISTORIC RESTORATION AND PRESERVATION. THERE'S ALSO A CAP AND NO MORE THAN 15% OF THE TOTAL HOTEL TAX CAN BE SPENT ON HISTORICAL RESTORATION AND PRESERVATION. ANY QUESTIONS ON THAT? WAS THAT 15% ANNUALLY OR? IT'S 15% ANNUALLY. BUT, BUT IN SOME CITIES THEY, WHEN THEY WANTED TO GO BACK AND HAVE A BIG PROJECT, SOMETIMES THEY'LL SAY, WELL, WE DIDN'T SPEND 15% LAST YEAR OR THE YEAR BEFORE, SO WE'RE GONNA ACCUMULATE OVER THAT THREE YEAR PERIOD AND THEN TRY TO SPEND MORE, AS LONG AS WE CAN SHOW THAT IT OVER TIME IT WAS NO MORE THAN 15%. ANY OTHER QUESTIONS ABOUT HISTORICAL RESTORATION AND PRESERVATION? CATEGORY NUMBER SIX IS SPORTING RELATED EVENTS. THAT'S, AND FOR ANY CITY WITHIN A COUNTY OF UNDER A MILLION POPULATION, YOU'RE JUST OVER A MILLION IN COLLIN COUNTY. SO YOU DON'T QUALIFY, BUT YOU CAN DO A LOT OF YOUR SPORTING STUFF. UNDER THE ADVERTISING AND PROMOTION CATEGORY, WE'RE GOING TO PROPOSE AMENDING THAT STATUTE TO HELP OUT MCKINNEY AND OTHER CITIES THAT ARE IN A COUNTY THAT IS EITHER, UH, UH, TOO LARGE. UM, SO IT DOESN'T QUALIFY. SO IT'LL NOW SAY ANY CITY OF UNDER 500,000 POPULATION. YOU GUYS ARE JUST SHY OF 500,000 [00:55:01] I THINK, RIGHT? QUITE A BIT. SHY. . WE'RE GONNA CLOSE BE THERE FOR A LITTLE WHILE. . UM, I THINK YOU HAVE SOME ROOM TO GROW, BUT IF YOU'RE A CITY OF UNDER 500,000, WE'RE GONNA PROPOSE THAT ANY CITY OF UNDER 500,000 AT THE CAPITOL, UH, IN AUSTIN, UH, NEXT SESSION SHOULD BE AUTHORIZED TO USE SPORTING RELATED, UH, EVENT MONEY OUT OF THE HOTEL TAX. THANK YOU. WE, WE TRY, WE LISTENED TO AARON . SO SPORTING RELATED EVENTS, UM, THAT WOULD BE ANY SORT OF EVENT COST SPONSORING A DINNER TO GETTING THE FIELDS OR THE, UH, ARENA OR THE FACILITY READY FOR THAT EVENT. IT WOULD NOT BE IN DOING A RENOVATION OR A NEW FACILITY OR AN ADDITION TO A FACILITY. IT'S EVENT SPECIFIC. CATEGORY NUMBER SEVEN IS SPORTING RELATED FACILITIES. THIS IS SOMETHING THAT I'D LIKE TO WORK WITH YOUR TEAM IF YOU'D BE UP FOR IT. UH, IT BRACKETS IN CERTAIN CITIES AND CURRENTLY MCKINNEY IS NOT BRACKETED IN, YOU INVEST IN A FACILITY THAT YOU MIGHT WANT TO PUT EXTRA LIGHTING OR AN EXTRA SCOREBOARD OR MORE SEATING OR MORE FIELDS OR MORE, YOU KNOW, STATIONS FOR THE SPORTS, UM, OUTLETS AND THINGS LIKE THAT, THAT ALLOW YOU TO COMPETE FOR VARIOUS TOURNAMENTS. YOU'RE ALREADY DOING GOOD SPORTS ACTIVITY. THIS MAY BE ABLE TO TAKE YOU TO THE NEXT LEVEL OF WHAT YOU COULD HOST. YOU'RE CURRENTLY, UH, NOT BRACKETED IN, BUT EVERY SESSION THEY HAVE BILLS THAT ALLOW ADDITIONAL CITIES TO BE BRACKETED TO DO SPORTING RELATED FACILITIES. NOW TO PARTICIPATE IN THAT CATEGORY. IT'S KIND OF A COMPLICATED FORMULA. YOU CAN SPEND AS MUCH AS YOU WANT ON THE HOTEL TAX FOR THE FACILITY, BUT TO WHATEVER YOU SPEND, YOU HAVE TO SHOW OVER THE NEXT FIVE YEARS AFTER YOU COMPLETE THAT EXPENSE, THAT, THAT, THAT, THAT, THAT, THAT INVESTMENT YOU HAVE TO SHOW OVER THE NEXT FIVE YEARS, YOU GENERATE AT LEAST THAT AMOUNT IN HOTEL NIGHT REVENUE. SO IF YOU SPEND HALF A MILLION DOLLARS ON A SWIMMING COMPLEX, THEN YOU WOULD SHOW OVER THE NEXT FIVE YEARS YOU SPENT, YOU GOT AT LEAST 500,000, HALF A MILLION IN HOTEL NIGHT REVENUE. THAT COULD BE A HUNDRED THOUSAND PER YEAR. AND IT COULD BE FROM EXISTING EVENTS. LET'S SAY YOU HAD A, A SWIMMING FACILITY THAT WAS DOING 150,000 A YEAR IN HOTEL NIGHT ACTIVITY WHEN YOU LOOKED AT ALL THEIR, YOU KNOW, THEIR BOOKINGS, THAT WOULD GIVE YOU AN ELIGIBILITY AFTER FIVE YEARS OF, LET'S SEE, WHAT IS THAT? 750,000? IS THAT RIGHT? YEAH, I THINK SO. UM, WHATEVER THE, SO IT COUNTS EXISTING ACTIVITY PLUS ANY NEW GROWTH IN ACTIVITY OVER THE NEXT FIVE YEARS. IF YOU DON'T MAKE THAT NUMBER, LET'S SAY OVER FIVE YEARS, YOU ONLY DID 300,000, BUT YOU HAD INVESTED 500,000, YOU'D HAVE TO PAY THE HOTEL TAX FUND BACK 200,000. THE CITY WOULD, FROM ITS GENERAL FUND. SO BASICALLY THE, THE, THE STORY BEHIND THAT IS WHEN WE NEGOTIATE WITH MUNICIPALITIES, WE SAID, WE DON'T WANT YOU TO PUT MORE MONEY INTO A PHYSICAL FACILITY THAN YOU'LL EVEN SEE IN RETURN WITHIN FIVE YEARS. AND THE RETURN IS NOT HOW MUCH HOTEL TAX YOU GEN, YOU KNOW, YOU GENERATE. IT'S AN EASIER STANDARD. YOU JUST HAVE TO SHOW AT LEAST THAT AMOUNT IN HOTEL NIGHT ACTIVITY. AGAIN, WE DON'T WANT YOU TO SPEND 500,000 IN HOTEL TAX IN ORDER TO GENERATE A HUNDRED THOUSAND IN HOTEL NIGHT ACTIVITY. IT JUST MAKES NO SENSE. UM, ANY QUESTIONS ABOUT SPORTING RELATED FACILITIES? IS THAT STILL ON YOUR AGENDA, AARON, TO I THINK THAT'S SOMETHING THAT OVERALL WE'D LOVE TO TALK ABOUT. UH, I DON'T KNOW THAT YOU HEARD, UH, UH, CITY MANAGER GRIMES REPORT, BUT WE'RE WORKING ON A RFQ RIGHT NOW WITH, UH, FOR A 230 ACRE SPORTS COMPLEX IN NORTH MCKINNEY, UH, WHICH WILL BE BRAND NEW IN ADDITION TO THE, THE OTHER SPORTS FACILITIES WE HAVE IN MCKINNEY THAT ARE, THAT ARE, UM, GROWING ALL THE TIME WE'RE IN DALLAS. I THINK WE'RE SHORT, YOU KNOW, A HUNDRED SOCCER FIELDS OR MORE JUST TO KEEP UP WITH THE DEMAND. AND SO THAT WOULD BE, UH, SOMETHING I THINK WE'RE INTERESTED IN. I WOULD THINK IT'D BE, AND WHAT'S IMPORTANT TOO, IT'S BEAUTIFUL THAT YOU'RE, YOU ALREADY HAVE EXISTING FACILITIES AND YOU'RE GETTING A NEW ONE IS THAT THIS CAN BE USED ON ANY FACILITY. IT HAS TO BE EXISTING, IT HAS TO BE CITY OWNED, AND IT HAS TO HAVE HOSTED AT LEAST, UH, 10 REGIONAL STATE OR NATIONAL TOURNAMENTS. WELL, ALL YOUR FACILITIES, I THINK, WITHIN A YEAR. AND SO MOST FACILITIES, IF YOU HAVE A SPORTS FACILITY, ARE GONNA HOST FAR MORE THAN THAT IN A YEAR. AND SO ONCE YOU HAVE THAT BUILT AND YOU HAVE THAT HISTORY, YOU'LL BE, IT'LL BE ELIGIBLE UNDER THIS NEW STATUTE. SO THE MONEY THAT YOU ARE INVESTING INTO THE FACILITY, THAT HAS TO BE DIRECTLY ATTRIBUTED TO EVENTS AT THAT THING OR JUST LIKE OVERALL IN THE POT FUND? UM, OH, THAT'S AN INTERESTING QUESTION. I THINK IT HAS TO BE, UH, UH, IT HAS TO GENERATE AT LEAST THAT AMOUNT IN, IN, UH, UM, THAT'S AN INTERESTING QUESTION. I HAVEN'T THOUGHT ABOUT. COULD IT BE JUST CITYWIDE INCREASING THE OVERALL CITYWIDE HOTEL I ATTRIBUTION IS TYPICALLY OUR HARDEST. [01:00:01] UM, I THINK IF YOU COULD SHOW THAT YOU HAD INCREASED HOTEL ACTIVITY WHEN YOU BUILT THAT FACILITY, YOU WOULD NEED TO, YOU WOULD NEED TO PROBABLY ASSIGN IT TO THE EVENTS THAT WERE HELD. NOW, IT MAY BE THAT IT WASN'T ALL IN ONE HOTEL, MAYBE A SERIES HOTELS OR BLOCKS OF HOTELS, BUT YOU WOULD NEED TO ATTRIBUTE IT, I THINK, TO EVENTS AT THAT FACILITY OR WOULD MAKE THAT STANDARD KIND OF MEANINGLESS. SO, UM, BUT IT'S AN, THAT'S AN INTERESTING QUESTION THAT I'VE NEVER BEEN ASKED. THAT'S UNUSUAL, SO YOU'RE WELCOME. OH YEAH, YOU'RE WELCOME. UM, ALL RIGHT, SO SPORTING RELATED FACILITIES, THAT'S CATEGORY NUMBER SEVEN. CATEGORY NUMBER EIGHT IS TRANSPORTATION BETWEEN, UH, TOURISTS AT HOTELS AND AREA ATTRACTIONS. AND THAT WAS, OH, UH, UH, STATE REP OUT OF THE DALLAS AREA HAD A, UH, DOWNTOWN AREA SHE WANTED TO PROMOTE. SO SHE WANTED TO DO A SHUTTLE BETWEEN THE HOTELS AND THE DOWNTOWN AREA. WE HELPED HER TO PASS IT SO THAT IT CAN'T BE USED FOR GENERAL CITY TRANSIT. IT'S ONLY TO BE USED FOR TOURISTS. YOU CAN HAVE NON TOURISTS ON IT, BUT THEY HAVE TO BE THE PRIMARY USE OF THAT SORT OF FACILITY. TYPICALLY, IT'S WHEN YOU HAVE AN EVENT AND YOU MAY NOT, YOU MAY HAVE PEOPLE AT DIFFERENT BED AND BREAKFASTS OR LO LIMITED SERVICE, LODGING OR OTHER FULL SERVICE HOTELS. YOU'LL PICK EACH OF THEM UP FOR MAYBE A BIG EVENT DOWNTOWN OR SOME, SOME OTHER ATTRACTION. YOU PAY FOR THE SHUTTLE TO BRING THEM AND TAKE THEM, YOU KNOW, THE BUS OR THE SHUTTLE TO BRING THEM ALL TO THAT EVENT. ANY QUESTIONS ABOUT TOURISM RELATED TRANSPORTATION? THE FINAL CATEGORY NUMBER NINE IS TOURISM RELATED SIGNAGE. AND THAT'S WAY FINDING SIGNS TO ALL YOUR ATTRACTIONS, EVERYTHING HISTORICAL, EVERYTHING ARTISTIC, YOUR VISITOR CENTER. IT WOULD NOT BE NEW STREET SIGNS OR WELCOME TO MCKINNEY. IT COULD BE, UH, UH, TOURISM RELATED SIGNAGE FOR WHERE YOUR HOTELS ARE, WHERE YOUR RESTAURANTS AND, AND ATTRACTIONS OR RETAIL ARE. IT CAN BE ALL THAT, BUT IT, IT, IT'S NOT GENERAL CITY INFRASTRUCTURE. IN FACT, THERE'S A PROVISION IN THE HOTEL TAX LAW THAT WAS ADDED, UH, UH, A NUMBER OF YEARS AGO THAT SAYS THE LOCAL HOTEL TAX CAN MAY NOT BE USED FOR GENERAL REVENUE OR GENERAL INFRASTRUCTURE PURPOSES. SO IT SPECIFICALLY SAYS IT'S NOT FOR LAW ENFORCEMENT, IT'S NOT FOR STREETS, IT'S NOT FOR GENERAL CITY HALL OR THE THINGS THAT YOU WOULD USE YOUR PROPERTY TAX FOR. AGAIN, IT'S A DEDICATED TAX WITH DEDICATED PURPOSE. THOSE ARE THE NINE USES. 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 SHUTTLES AND TRANSPORTATION. I MEAN, AND, UH, DIRECTIONAL SIGNAGE, WAYFINDING AND TOURISM DIRECTIONAL SIGNAGE. SO THOSE ARE THE NINE CATEGORIES. AND OF COURSE, EVERY EXPENDITURE NEEDS TO DIRECTLY PROMOTE TOURISM AND THE HOTEL AND CONVENTION INDUSTRY. ANY OTHER QUESTIONS? ANY OTHER THINGS YOU'VE WANTED TO SPEND THE MONEY ON, BUT YOU WEREN'T SURE YOU THOUGHT THERE WAS A GRAY AREA THAT YOU WANT TO ASK ABOUT? I DO HAVE A QUESTION. SO OUR MARKETING COMMITTEE WORKED ON A, WELL, THE CITY VISIT MCKINNEY HAS A GRANT, AND YOU KNOW, AARON, WE TALKED ABOUT THIS AND CITY COUNCILMEN FELT THIS, YOU KNOW, BUT WE DO, NOBODY'S REALLY APPLYING FOR THAT GRANT. ARE OTHER CITIES KIND OF SEEING THE SAME THING? 'CAUSE OF THIS FUNDS ARE THERE, BUT I THINK WE'RE TALKING ABOUT DOING SOMETHING ELSE WITH IT. YEAH, I CAN GIVE A LITTLE MORE, UH, BACKGROUND ON THAT. UM, WE, WE'VE HAD A GRANT, UH, FOR FESTIVALS AND EVENTS TO APPLY FOR A NUMBER OF YEARS. UM, I WANT TO SAY AT AROUND YEAR SEVEN, UH, PART OF THAT GRANT APPLICATION REQUIRED A, UH, HOTEL REPORT, A PICKUP REPORT, OR SOME TYPE OF, UH, SOME TYPE OF PROOF THAT THERE WAS MM-HMM . THAT IT GENERAT GENERATED OVERNIGHT STAYS. UM, WE WERE SEEING, UH, OUT OF EVERY APPLICANT, I THINK WE, WE, WE LOOKED AT THE DATA, ONLY TWO FOR SEVEN YEARS ACTUALLY PICKED UP ROOM NIGHTS. AND SO I THINK WHENEVER I READ THE STATUTE AND I SEE THAT, UM, IT HAS TO DIRECTLY FUND TOURISM AND, AND HOTEL AND OVERNIGHT STAYS, UH, WE TALKED AS A GROUP THAT, HEY, WHEN YOU HAVE THAT MUCH DATA AND YOU'RE SEEING THAT THESE ARE GREAT EVENTS, UH, FOR THE COMMUNITY, BUT YOU KNOW, IF YOU'RE SEEING ONE DAY EVENTS THAT ARE, UM, YOU KNOW, UH, DOWNTOWN FOR A SATURDAY, AND THEN THEY, THEY'RE NOT A TWO DAY EVENT, THEY'RE NOT GENERATING OVERNIGHT STAYS AT THIS POINT. WE HAVE TO KIND OF HOLD OUR APPLICANTS ACCOUNTABLE TO THAT SECOND TIER. UM, AND SO WE'VE KIND OF TWEAKED OURS TO REQUIRE A MINIMUM OF 25 ROOM NIGHTS, UM, TO QUALIFY. UM, WE LOOKED AT A FEW OTHER TEXAS CITIES AND WE FOUND THAT THEY WERE REQUIRING A MINIMUM OF 50. AND WE WERE LIKE, WELL, LET'S CUT THAT IN HALF AND, AND EVEN BE MORE GENEROUS AND, [01:05:01] AND REQUIRE 25 AS THE MINIMUM JUST TO START. WE DO HAVE OUR, UH, COMMUNITY DEVELOPMENT CORPORATION PARTNERS IN THE ROOM, AND THEY HAVE A PROMOTIONAL AND TOURISM GRANT THAT'S A LOT BIGGER THAN OURS FROM THEIR HALF-CENT SALES TAX. AND EVERY ONE OF THOSE EVENTS WERE BEING FUNDED BY THAT PROGRAM THAT THE ONE DAY, YOU KNOW, ARTS FESTIVALS AND THINGS LIKE THAT. AND SO CURRENTLY WE'RE SITTING WITH THE 25 ROOM NIGHT MINIMUM TO QUALIFY. BUT, UM, THAT DOES MEAN THAT MOST PEOPLE, WELL, ALL THE PEOPLE FOR THE MOST PART THAT WE'RE APPLYING EXCEPT FOR ONE, UH, DON'T QUALIFY FOR OUR GRANT, OUR PROMOTIONAL GRANT, UM, FOR FESTIVALS AND EVENTS. SO I GUESS THAT'S KIND OF THE QUESTION IS, IS, UH, IS IS THAT TOO STEEP OR IS, I MEAN, I THINK I, I THINK YOU MAKE THAT DETERMINATION AND THERE'S A COUPLE THINGS, KIND OF PRO TIPS I MIGHT OFFER. ONE, IF YOU HAVE A PROGRAM LIKE THAT WHERE THEY CAN APPLY FOR FUNDS, A LOT OF TIMES ARTS AND HISTORICAL AND APPLI AND OTHER TYPES OF NON-PROFIT APPLICANTS HAVE A LIMITED STAFF OR LIMITED KNOWLEDGE ON HOW TO MEET YOUR CRITERIA. AND SO TO THE EXTENT THAT YOU HAVE A SUCCESSFUL APPLICANT MAKE A MODEL APPLICATION THAT'S ALL FILLED OUT THAT WAS FUNDED, AND HOW THEY DOCUMENT AND SAY, HEY, I KNOW IT'S, YOU ALWAYS WORRY ABOUT HOW TO FILL THIS OUT. WE HAVE A MODEL APPLICATION THAT'S FILLED OUT THAT GOT AWARDED FUNDS. GIVE US THIS TYPE OF INFORMATION. AND, AND WITH THIS TYPE OF BACK BACKUP, AND YOU'LL BE IN, YOU KNOW, THE WINNING CATEGORY OF LIKELY BEING ELIGIBLE. SO THE EASIER THAT YOU MAKE IT FOR THEM TO APPLY, UM, SECONDARILY YOU CAN WORK WITH THEM. AND I, I OFTEN BELIEVE THAT ANY EVENT CAN GO FROM A NONT TOURISM AND HOTEL ACTIVITY EVENT INTO A TOURISM AND HOTEL ACTIVITY EVENT IF YOU DO THE RIGHT THINGS. TO GIVE YOU AN EXAMPLE, I HAD A COMMUNITY WHO CALLED ME ABOUT WHAT ABOUT FUNDING USING HOTEL TAX TO FUND OUR BATTLE OF THE BANDS. AND I SAID, WELL, WHEN DO YOU HOLD THE EVENT? AND THEY SAID, WE HOLD IT ON A THURSDAY NIGHT FROM SIX TO EIGHT. AND I SAID, WELL, DO YOU GET ANY OVERNIGHT ACTIVITY? DO YOU HAVE ANY ? HE SAID, NO, SCOTT, THEY DRIVE IN AND THEY DRIVE OUT. AND I SAID, WHAT IF YOU WERE TO MOVE IT TO MAYBE START AT SEVEN, HOLD IT TILL NINE, AND THEN HAVE AN EVENT ON SATURDAY. IT COULD BE A, A JURIED COMPETITION, AND THEN HAVE THEM COME BACK FOR A BRUNCH ON SUNDAY TO CELEBRATE THE WINNERS, YOU KNOW, OR TO STAY TILL SUNDAY TO CELEBRATE THE WINNERS. THAT'S EXACTLY WHAT THEY DID. AND THEY TOOK THAT EVENT FROM HAVING NO HOTEL ACTIVITY TO FILLING ALL OF THE HOTELS WITHIN THEIR LITTLE LOCAL COMMUNITY. 'CAUSE IN A BATTLE OF THE BANDS OF THESE HIGH SCHOOL BANDS, THE PARENTS CAME, THE GRANDPARENTS CAME, NEIGHBORS CAME, TEACHERS CAME. BUT IT USED TO BE THEY JUST DROVE IN AND DROVE OUT. NOW IT WAS CONVENIENT FOR THEM JUST TO, INSTEAD OF DRIVING THERE BACK AND FORTH WITH THEIR KIDS, THEY JUST STAYED OVERNIGHT. MM-HMM . SO THERE'S A WAY TO SAY, CAN YOU MAKE THIS ON A WEEKEND? OR CAN YOU MAKE THIS INTO A TWO DAY OR A THREE DAY EVENT? AND THEN YOU COULD BE ELIGIBLE. IT'LL PROVIDE MORE IMPACT FOR ALL YOUR RESTAURANTS AND YOUR RETAIL. UM, IT'LL ALSO, AND SOMETHING THAT'S IMPORTANT FOR YOU TO EDUCATE ON YOUR CITY COUNCIL MEMBERS ON HOTELS ARE VALUED ON THE INCOME APPROACH. THAT MEANS THAT THE MORE HOTEL ACTIVITY THAT YOUR HARD WORK GENERATES IN MCKINNEY, IT ALSO INCREASES THE PROPERTY TAX BASE FOR THE CITY OF MCKINNEY. BECAUSE IF WE, IF WE GENERATED ANOTHER 10,000 IN REVENUE AT OUR HOTEL, THEN THAT'S GONNA BE 10,000 MORE THAT'LL BE MULTIPLIED BY THAT MULTIPLIER TO DETERMINE WHAT OUR PROPERTY VALUE IS. SO IT'S NOT JUST A DEDICATED TAX OR, OR THESE AUXILIARY TAXES, IT'S ALSO YOUR MAIN TAX SOURCE, WHICH IS PROPERTY TAX. MM-HMM . AND I THINK, UH, ANOTHER THING, SCOTT, TOO, WE'VE SEEN, UH, WE LIVE IN A DATA RICH ENVIRONMENT TODAY WHERE WE CAN GET STATISTICS ON ON EVENTS. YEAH. AND IN MCKINNEY AND IN THIS REGION, UH, WITH A MILLION PEOPLE JUST WITHIN 15 MILES OF US, IN, IN ALL IN ALL DIRECTIONS, WE CAN FILL UP A, AN OCTOBER FEST IN DOWNTOWN WITH 75,000 PEOPLE OVER THE WEEKEND WITHOUT HAVING TO REALLY REACH OUT BEYOND, TOO FAR BEYOND OUR, UH, OUR REGIONAL WALLS. AND SO WE SEE IN, IN OUR DATA A LOT OF TIMES THAT, UH, LIKE 90% OF THE PEOPLE OR MORE ARE COMING FROM JUST A REALLY SHORT RADI, UH, SHORT DRIVE RADIUS FROM, UH, MCKINNEY HERE. AND SO THAT'S ANOTHER CHALLENGE WE'VE HAD WITH, UH, SUPPORTING SOME CERTAIN EVENTS WITH, UM, WITH HOTEL TAXES, UH, THEM NOT GENERATING OVERNIGHT STAYS, UM, YOU KNOW, BASED ON THAT. AND, AND EVEN ONE NIGHT WOULD'VE BEEN, UH, WE WOULD'VE BEEN THRILLED TO SEE LIKE ONE NIGHT GENERATED, LIKE THAT WAS REPORTED BACK, BUT WE WEREN'T EVEN GETTING THAT. AND THAT'S KIND OF WHAT LED US TO TWEAKING THAT. UM, OF COURSE IT CAN BE TWEAKED AGAIN, BUT I DO THINK WHAT I'M HEARING TODAY IS THERE HAS TO BE SOME PROOF OF HOTEL GENERATION MAY NOT HAVE TO BE 25 ROOMS, BUT SOMETHING, THERE HAS TO BE SOME ABILITY TO DIRECTLY PROMOTE TOURISM AND HOTEL ACTIVITY. NOW, IN SOME COMMUNITIES, I WILL TELL [01:10:01] YOU THAT THEY MAY HAVE A FESTIVAL THAT THEY SAY AT, UH, WE'LL, WE WILL DO IT UNDER ADVERTISING AND PROMOTION WILL ONLY PAY FOR YOUR MARKETING IF YOU SHOW THAT IT'S BRINGING ENOUGH PEOPLE IN TO REALLY MARKET US AS A DESTINATION. SO IF I COME INTO MCKINNEY AND I SEE THAT, MY GOODNESS, I DIDN'T REALIZE THEY HAD ALL THESE RESIDENT, UH, ALL THESE HOTELS. I DIDN'T REALIZE THEY HAD ALL THESE RESTAURANTS AND ALL THIS HISTORY. AND YOU CAN DECIDE WHETHER OR NOT IT'S AN EFFECTIVE MARKETING TOOL TO GET MORE HOTELS AND HOTEL ACTIVITY FROM FUTURE EVENTS. BUT SO THAT, THAT WOULD BE THE ONLY KINDA WORKAROUND IF THERE WAS, IF THERE WAS AN INTEREST IN, IF IT WAS THAT HIGH OF A PR EVENT, YOU COULD LOOK AT IT AS A MARKETING DEAL. OKAY. I THINK THAT'S AN INTERESTING CAVEAT THERE. MM-HMM . AND THEN I THINK WHAT YOU'VE SAID ABOUT MAYBE ENCOURAGING SOME OF THE STRONG, LIKE ONE DAY EVENTS TO SOMEHOW MAYBE TURN INTO A TWO DAY EVENT, UM, I THINK THERE'S A LOT OF ROOM FOR GROWTH THERE. I AGREE. YEAH. UH, THE SECOND PIECE TO THAT'S BEEN A LITTLE BIT OF A CHALLENGE IS THAT, UM, UH, WITH COMMUNITY DEVELOPMENT CORPORATION, THEY MAY GET LIKE A $12,000 GRANT FOR PROMOTING THEIR EVENT FROM THAT ORGANIZATION, UM, THROUGH THEIR EVENT GRANT. AND THEN WE HAD ONE, AND THEN THE ARTS COMMISSION, UM, ALSO HAD ONE ONE. AND SO AT TIMES YOU WOULD HAVE ONE EVENT, GET THREE, YOU KNOW, DIFFERENT BUCKETS. UM, AND SO THAT WAS SOMETHING ELSE THAT'S BEEN MENTIONED IS TRYING TO, YOU KNOW, WE, THE COMMUNITY DEVELOPMENT CORPORATION DOES AN INCREDIBLE JOB AT SUPPORTING THOSE, UH, THOSE EVENTS. AND THEIR PART OF THEIR MISSION IS ALSO TOURISM. UM, IT'S JUST FUNDED DIFFERENT THAN, YOU KNOW, HOTEL MOTEL TAX. AND SO TRYING TO BALANCE, UM, HOW MUCH WE'RE DISTRIBUTING OUT AS WELL, UM, AS A CITY, EVEN THOUGH IT'S DIFFERENT BUCKETS, UM, TO THESE TYPE OF EVENTS. WELL, I KNOW THAT YOU WERE TALKING ABOUT WHAT A DATA RICH ENVIRONMENT WE ARE THAT WE CAN BY PEOPLE'S PHONES. UM, LIKE I KNOW WHERE ALL OF YOU WENT LAST NIGHT. UM, KIDDING. , UH, UH, KIND OF LIKE, WELL, WAIT A MINUTE. NOT SOMEONE WAS FOLLOWING ME. YEAH. UM, IT'S, IT'S, UH, THERE'S SO MANY OPPORTUNITIES WHERE SOMEBODY FOLLOWS ONE OF YOUR ADVERTISEMENTS OR, OR SOLICITATIONS, AND WE CAN SEE WHERE THEY, WHERE THEY FREQUENT. IF YOU'RE GOING TO FUND SOMETHING LIKE MARKETING OR ADVERTISING, I WOULDN'T DO THAT ENDLESSLY AND MAKE IT INTO AN ENTITLEMENT. I WOULD SAY, LOOK, WE'RE WILLING TO FUND YOU FOR THIS YEAR OR THIS TWO YEAR PERIOD. WE'LL TRACK DURING THAT EVENT WHERE WE'RE SEEING WHAT, WHERE PEOPLE ARE FREQUENTING AND WHETHER OR NOT, AND IT'S THE SAME THING AS GOING TO A TRADE SHOW. YOU WOULDN'T GO TO THE SAME TRADE SHOW EVERY YEAR IF YOU CAME BACK WITH NO LEADS IN THIS CASE. YOU DON'T WANT TO ADVERTISE AN EVENT IF YOU COME UP WITH THAT. NO, NO HOTEL NIGHTS, NO LEADS FOR FUTURE EVENTS. SO I'D LOOK AT SOME OBJECTIVE CRITERIA THAT THIS IS SEED MONEY. WE'RE GONNA INVEST IN MARKETING, BUT IF WE DON'T GENERATE ANY ADDITIONAL EVENTS, IF YOUR EVENT DOESN'T BRING PEOPLE TO, TO, TO WANT TO COME BACK AND WE CAN TRACE THAT, YOU KNOW, OF HOW THEY HEARD ABOUT US. IT'S NOT A GREAT ADVERTISEMENT OR A GREAT PROMOTION TO PROMOTE HOTEL AND TOURISM ACTIVITY. SO I WOULD, I WOULD DEVELOP SOME CRITERIA AND, AND, AND, AND HELP THEM TO UNDERSTAND HOW THEY CAN SHOW THAT IMPACT AND PARTNER WITH THEM THROUGH YOUR RESEARCH MECHANISMS. ANOTHER TOOL THAT I'M JUST GONNA MENTION BRIEFLY, IT'S, IT'S THE BIGGEST ECONOMIC DEVELOPMENT TOOL IN THE LAST 30 YEARS IS TOURISM PUBLIC IMPROVEMENT DISTRICTS. WE STARTED THE FIRST DISTRICT IN DALLAS, AND THIS IS SOMETHING THAT YOU GUYS HAVE ALL THE TOOLS AVAILABLE RIGHT NOW TO BE ABLE TO USE IT VERY EFFECTIVELY. UM, A TOURISM DISTRICT, UH, CITIES TYPICALLY HAVE DOWNTOWN DISTRICTS. THEY HAVE NEIGHBORHOOD DISTRICTS THAT ALL INVEST IN ADDITIONAL IMPROVEMENTS BY ASSESSING THEMSELVES AND THEIR PROPERTY TAXES SAYING, WE WANT A NEW PARK, WE WANT MORE LAW ENFORCEMENT, WE WANT NEW LIGHTING, NEW STREETS AND SIDEWALKS FOR OUR NEIGHBORHOOD, OR THINGS LIKE THAT. AND SO WE'RE GONNA CREATE A NEIGHBORHOOD DISTRICT OR A DOWNTOWN DISTRICT. THEN THE TOURISM INDUSTRY CAME TO THE LEGISLATURE. I CAME REPRESENTING THEM AND SAID, BACK IN 2011 AND SAID, WE'D LIKE TO BE ABLE TO DO A TOURISM DISTRICT THAT'S SOLELY COMPOSED OF HOTELS, AND THE HOTELS HAVE TO BUY A MARGIN OF OVER 60% OF ALL THE HOTELS WITHIN THE DISTRICT, WHICH IS USUALLY CITYWIDE. THAT'S ANY LODGING UPPER. AND YOU SET THE THRESHOLD OF HOW MANY ROOMS THEY NEED TO HAVE. THEY HAVE TO GET SIGNATORIES TO, UH, ASKING THE CITY TO CREATE A TOURISM PUBLIC IMPROVEMENT DISTRICT. AND THEN THEY WILL ASSESS THEMSELVES, UM, THE COST OF THAT DISTRICT. SO THERE'S NO COST OF THE CITY. IT DOESN'T AFFECT YOUR MAXIMUM HOTEL TAX RATE. IT DOESN'T AFFECT ANYTHING ABOUT THE CITY. THE CITY'S REIMBURSED FOR ANY COST. BUT THOSE FUNDS ARE USUALLY, UH, UH, RAISED BY A PERCENTAGE OF EACH ROOM NIGHT SALE. SO IF [01:15:01] I HAVE A HUNDRED DOLLARS ROOM NIGHT, TYPICALLY THE TOURISM PIT IS A 2% FEE. THAT'D BE A $2 FEE ON THAT ROOM NIGHT. AND SO YOU'RE, YOU'D HAVE A HUNDRED, $2, A HUNDRED DOLLARS ROOM RATE, $2, UH, TOURISM PIT FEE. AND THAT WOULD ALL BE SUBJECT TO THE HOTEL TAX AT THE STATE AND LOCAL LEVEL. SO IT BUMPS UP YOUR HOTEL TAX A LITTLE BIT, BOTH AT THE CITY LEVEL, AT THE STATE LEVEL. AND IT CREATES A FUND IN DALLAS. AFTER THEY CREATED THE FIRST TOURISM PUBLIC IMPROVEMENT DISTRICT, THEY DOUBLED THE NUMBER OF CITY-WIDES THAT THEY GOT IN DALLAS YEAR OVER YEAR. THEY DOUBLED THEIR CONVERSION RATE FOR GETTING MAJOR EVENTS. WHY? BECAUSE, AND THIS IS SOMETHING WE DIDN'T REALIZE FOR CONVENTION VISITORS BUREAUS, EVEN AS BIG AS DALLAS, IS THAT THEY RUN OUTTA MONEY TO USE FOR PROMOTING, YOU KNOW, FOR SPONSORING EVENTS. AND SO THEY BID ON THE NUMBER OF EVENTS THAT THEY HAVE IN THEIR BUDGET. TYPICALLY CITIES WHERE THEY'LL HAVE TO SPEND MONEY ON A CONVENTION CENTER, THEY HAVE A PERCENTAGE THAT GOES TO THE ARTS PERCENTAGE THAT GOES TO HISTORICAL. AND THEN THEY MAY HAVE SOME STUFF THAT'S GOING TO SPORTING RELATED EVENTS. THEY MAY HAVE A VISITOR CENTER THEY'RE PAYING FOR THINGS LIKE THAT. AND THEN THE LEFTOVER MONEY THAT THEY HAVE TO DO AS INCENTIVES AS PART OF THEIR SALES BUDGET IS LIMITED. SO YOU BID ON AS MANY EVENTS THAT YOU CAN QUALIFY FOR OUT OF THAT LIMITED FUND. WHEN YOU DRAMATICALLY INCREASE THAT FUND, YOU'RE ABLE TO BE MORE LUCRATIVE IN ALL YOUR BIDS, AND YOU'LL BE ABLE TO BID ON A LOT MORE PIECES OF BUSINESS AND DO, AND THEN ALSO, IT'S NOT JUST ON SALES. YOU'RE ALSO ABLE TO DO NEW MARKETING, THE AREAS THAT WOULD BE INTERESTED IN YOUR COMMUNITY, BUT YOU NEVER HAD THE FUNDS TO MARKET TO THEM. SO HOTELS HAVE GONE BEHIND THIS. 'CAUSE LIKE I SAID, IN DALLAS, IT WAS SO EFFECTIVE, IT INCREASED OCCUPANCY CITYWIDE BY 16%, THE RETURN ON INVESTMENT FOR EVERY DOLLAR THEY SPEND IN MARKETING. I MEAN, IN, IN SALES THEY GOT $16 IN ROOM NIGHTS. NOBODY SEES THAT KIND OF ROI AND EVERYONE. WE HAVE 10 TOURISM DISTRICTS SINCE DALLAS FORMED. IT WAS SO SUCCESSFUL. WE THEN GOT A NEW DISTRICT IN ARLINGTON, THEN FORT WORTH AND SAN ANTONIO, CORPUS CHRISTI, WACO, DENTON, ADDISON, FRISCO, UM, AND AUSTIN. AND, UM, AND WHO AM I MISSING? UM, DID I SAY ARLINGTON? MM-HMM . OKAY. WELL, THERE'S, THERE'S ONE OTHER CITY. UM, YEAH, THERE'S ONE OF THE CITY. BUT, UM, ANYWAY, WE HAVE 10 TOURISM PUBLIC IMPROVEMENT DISTRICTS. UM, THE SUCCESS IS NOT ONLY IN BIG CITIES, LIKE, LIKE IN, UH, UH, DALLAS, WACO'S BEEN TREMENDOUSLY. WACO IS SO SUCCESSFUL. HOTEL OWNERS THAT HAVE PROPERTIES IN WACO ARE NOW ASKING PROPERTIES IN PFLUGERVILLE AND, AND OTHER AND CITY AND OTHER CITIES THAT THEY HAVE PROPERTIES. AND PLEASE LET US DO A TOURISM PUBLIC IMPROVEMENT DISTRICT AND THE SECRET SAUCE OF THAT DISTRICT. UM, AND YOU GUYS ARE, SO, I, I ENJOYED HEARING, AND I'M SORRY I WAS A LITTLE BIT LATE. MY UBER WASN'T WORKING VERY WELL THIS MORNING, BUT, UM, I LOVED HEARING YOUR REPORTS ABOUT EACH OF YOUR DEPARTMENTS, UH, YOU KNOW, THAT ARE THAT WORK IN THE TOURISM AREA. THEY'RE ALSO GOOD AT WHAT THEY DO. BUT ONE OF THE SECRET SAUCES FOR THE TOURISM DISTRICT IS THE BOARD OF DIRECTORS THAT OVERSEES THIS DISTRICT. AND THIS IS UNIQUE TO TEXAS. UM, WE MADE IT SO THE BOARD OF DIRECTORS ARE SOLELY HOTELIERS WITHIN THE DISTRICT. SO THEY KNOW WHEN THEIR SHOULDER SEASON IS, THEY KNOW WHEN THEIR SLOW SEASON IS. THEY KNOW WHAT MARKETING HAS NEVER WORKED FOR THEM. THEY KNOW WHAT MARKETING THEY HAVEN'T BEEN ABLE TO DO. AND SO THEY MAKE THE DECISIONS AND IT'S MANAGED BY THE CVB AND THEY COME UP WITH THE MARKETING PLAN, THE SALES PLAN, BUT THE HOTELIERS SAY, MAYBE NOT THIS, BUT HOW ABOUT THAT? OR HOW ABOUT A LITTLE MORE IN THIS AREA? AND THAT COMBINATION OF WORKING WITH THE CVB THAT HAS THE EXPERTISE AND THE HOTELIERS THAT ARE ON THE GROUND HAS WORKED INCREDIBLY IN ALL 10 OF THESE DISTRICTS. AND SO THEY'RE SEEING ALL OF THEM HAVE A MINIMUM. ROI, THERE'S NO PRESSURE, UNFORTUNATELY, SOMETIMES WITH THE CVB, YOU FEEL LIKE IF YOU DON'T SPEND ALL THE MONEY IN THAT BUDGET YEAR, YOU'RE NOT GONNA QUALIFY FOR IT AGAIN THE NEXT YEAR. SO THERE'S A PRESSURE, AND EVEN ORGANIZATIONS, THEY WORRY THEY DON'T SPEND IT ALL THE TOURISM PIT, WE REQUIRE AT LEAST $7 IN ROOM NIGHTS FOR EVERY DOLLAR OF SALES INCENTIVES, OR WE DON'T, IT'S NOT AN ELIGIBLE PRODUCT IN MOST OF OUR DISTRICTS. DALLAS REQUIRES 10 TO ONE, I THINK, UH, A LOT OF THE OTHER CITIES, SEVEN TO ONE, SOME FIVE TO ONE. IT'S A MULTIPLE. SO WE HOPE WE'D RATHER HOLD ONTO THE MONEY AND WAIT FOR THE RIGHT PROJECT THAN JUST TO SPEND IT TO MAKE SURE THAT IT'S SPENT. SO IT'S BEEN A VERY, IT'S A IN INTERESTING OPTION THAT YOU MAY WANNA LOOK AT ON DOWN THE ROAD BECAUSE YOU HAVE SO MANY THINGS GOING ON. IT'D BE WONDERFUL BE TO, YOU KNOW, REALLY TAKE, TAKE AIM AT YOUR MARKET SHARE AND YOUR CAPACITY AND PARTNER WITH HOTEL INDUSTRY TO DO IT. YES. I HAD A QUESTION ON TRANSPORTATION. YES. UM, [01:20:01] WITH THE NEW, UH, AIRPORT OPENING SOON, IS THERE ANY OPPORTUNITY TO CREATE SHUTTLES FOR, TO DOWNTOWN MCKINNEY OR TO HOTELS OR THAT AVAILABLE? WELL, IT'S A COMPLICATED AREA. THE STATUTE SAYS SHUTTLES BETWEEN, UH, HOTELS AND AREA ATTRACTIONS. UM, WE, WE ORIGINALLY HAD THE LEGISLATION ALLOWING AIRPORT RUNS. MM-HMM . AND THE TAXI CAB INDUSTRY TOOK THAT OUT OF THE LEGISLATION . SO, BUT I WOULD, I YOU COULD MAKE AN ARGUMENT. YOU COULD MAKE AN ARGUMENT THAT, UM, WELL, THERE'S NOT A REAL GOOD ARGUMENT . WELL, DO WE HAVE TAXI CABS HERE? NO, I HAVE NOT. DO WE HAVE UBER AND LYFT? WE DON'T HAVE THOSE. YEAH. UM, WE HAVE UBER MAYBE, MAYBE SOON. YEAH. I MEAN, YOU COULD ARGUE I GUESS THAT THE, THAT THE AIRPORT, HAVING AN AIRPORT NEARBY IS AN ATTRACTION AND TAKING THEM BACK AND FORTH COULD BE, I MEAN, IT'S A BIT OF A GRAY AREA. I CAN TELL YOU THE HISTORY WAS, WE WANTED TO INCLUDE THAT. 'CAUSE WE THOUGHT THAT WAS A REASONABLE, YOU KNOW, AMENITY TO, TO SPONSOR. UM, BUT IT WAS KILLED AT THE LEGISLATURE. MM-HMM . BY THE COMP YEAH. MEAN PEOPLE. MM-HMM . NOW OUR HOTELS PROVIDING A TRANSPORTATION SERVICE BETWEEN THE HOTEL AND THE MCKINNEY AIRPORT WOULD WORK. IF THAT BECAME AN AMENITY FOR THEM, THAT WOULD BE A BETTER WAY TO PROBABLY DO IT. YEAH. RIGHT. THAT WOULD BE IDEAL. YEAH. THAT'S ANOTHER WAY TO GET THERE. WHAT ARE THE PROVISIONS, UH, FOR LEFTOVER FUNDS? DO THEY JUST SIT IN A, AN ACCOUNT SOMEWHERE? WELL, OFTEN THEY'RE IN A RESERVE ACCOUNT. WHAT I ALWAYS SUGGEST TO FOLKS IS WE KNOW WHAT THE IMPACT OF KEEPING A RESERVE FUND IS. IT'S GONNA GET SOME INTEREST, BUT IT'S NOT GONNA MAKE ANY ECONOMIC ACTIVITY HAPPEN. SO I ALWAYS SUGGEST THAT IF YOU HAVE A LARGE RESERVE, YOU HAVE TO FIRST DECIDE WHAT PERCENTAGE YOU NEED TO KEEP IN RESERVE FOR A RAINY DAY OR FOR NEW OPPORTUNITIES THAT YOU WEREN'T AWARE OF. AND THEN YOU MIGHT, AND THEN THE CITY MAY HAVE A POLICY YOU HAVE TO KEEP AT LEAST THREE MONTHS OR SIX MONTHS IN RESERVE. BUT AFTER YOU GET TO WHATEVER THAT PORTION IS, WHETHER THREE MONTHS, SIX MONTHS, EIGHT, NINE MONTHS IN RESERVE, WHEN YOU GET TO THAT THRESHOLD WHERE RESPONSIBLY YOU HAVE ENOUGH IN CASE OF A PROBLEM OR AN OPPORTUNITY, THEN I WOULD SUGGEST THAT YOU WORK WITH THAT TEAM. AND, AND IF, AND IF YOU'D LIKE, BRING A CONSULTANT AND TO SAY, WHAT FACILITIES AND HOW DO WE RIGHT SIZE OUR FACILITIES AND OUR INVESTMENTS TO, TO TAKE US TO THE NEXT LEVEL? WHERE'S THE BEST USE OF THOSE FUNDS? 'CAUSE WHAT I FIND IS IF YOU DON'T DO THAT AS A BOARD, THE CITY COUNCIL WILL DECIDE THAT FOR YOU. YEAH. MM-HMM . AND BY THE TIME YOU HEAR ABOUT IT, UM, IT WILL BE SOMETHING WHERE THEY ALREADY HAVE THE VOTES ON THE CITY COUNCIL TO DO IT. UM, SO IT'S BETTER TO, YOU KNOW, THERE'S AN OLD CITY MANAGER SAYING THAT IF PEOPLE ARE CHASING YOU WITH PITCHFORKS, GET IN FRONT OF THEM WITH A FLAG AND PRETEND YOU'RE LEADING THE PARADE, . SO I WOULD GET IN FRONT OF THESE IDEAS, UH, WITH THE FLAG. I'D LEAD THE PARADE TO DECIDE, YOU KNOW, UH, GET THERE BEFORE, UH, OTHER FOLKS, YOU KNOW, MAY COMPEL YOU TO GET THERE AND, AND HAVE THE STRONGEST USE BASED ON, ON DIFFERENT TYPES OF, UH, OF, OF OPPORTUNITIES. IN FACT, IF YOU WERE TO DO, AND ERIN AND I HAVE TALKED ABOUT THIS, THAT IF YOU'RE GONNA DO CONSIDER A TOURISM PUBLIC IMPROVEMENT DISTRICT, I WOULDN'T DO THAT THE FIRST THING UNTIL YOU SHOULD HAVE A PLAN FOR YOUR EXISTING RESERVE. 'CAUSE IT'S HARD TO GO TO THE HOTEL COMMUNITY AND SAY, WE WANT TO HAVE ANOTHER EXACTION TO FUND THINGS WHEN WE DON'T HAVE A PLAN WITH X MILLION DOLLARS IN THE BANK. NOW THAT DOESN'T MEAN YOU NEED TO HAVE IT COMMITTED THAT YOU'RE GONNA SPEND ALL OF IT, BUT SAY THIS IS THE PERCENTAGE THAT WE NEED TO KEEP IN THERE FOR OPERATING RESERVES AND FOR, YOU KNOW, OPPORTUNITIES. AND THEN THE REMAINDER OF THIS WE'RE FUND HULU. WE'RE LOOKING AT AS AN INVESTMENT FOR MAYBE A FUTURE SPORTS FACILITY OR A FUTURE CIVIC CENTER OR CONVENTION FACILITY OR AN ARENA OR WHATEVER IT MIGHT BE. PICK OUT WHAT THAT'S GONNA BE AND THEN THAT WILL MAKE SENSE TO EVERYBODY. IT'LL MAKE SENSE TO THE CITY COUNCIL THAT THIS IS EARMARKED FOR THESE PURPOSES. HERE'S WHAT WE'RE GONNA DO FOR MARKETING AND SALES TO TAKE YOU TO THE NEXT LEVEL. DOES THAT HELP? GOOD. MM-HMM . THANK YOU. OTHER QUESTIONS? ANYONE ELSE? OKAY. ALRIGHT. THANK YOU SCOTT. THANK YOU. YOU'RE WELCOME. THAT WAS VERY INFORMATIVE. THANK YOU SO MUCH. THAT MADE MY DAY. THANK. I APPRECIATE IT. . OKAY. AT THIS TIME, WE ALLOW FOR ANYONE FROM THE PUBLIC TO SPEAK ON MATTERS, NOT ON THE AGENDA. I SEE THERE ARE NONE. . MOVING ON TO BOARD AND DIRECTOR COMMENTS. DOES ANYONE HAVE ANYTHING THEY'D LIKE TO SAY? NO. NO. GOOD MEETING. THANK YOU GUYS AGAIN FOR COMING OUT THIS WEEKEND. [01:25:01] IT WAS BRIGHT AND EARLY AND IT WAS SUPER FUN. SO, UM, TAKE ADVANTAGE OF ANY TIME TO VOLUNTEER. THAT'S ALL I ENCOURAGE YOU TO DO. OKAY. UM, MAY I GET A MOTION TO ADJOURN THIS MEETING? I WILL MAKE A MOTION. MOTION BY PATRICK. MAY I GET A SECOND? SECOND. SECOND BY JANIE, PLEASE CAST YOUR VOTE. AYE. AYE. OH, ARE WE ? OKAY, WE GO. . OH. MOTION PASSED. MEETING IS ADJOURNED AT 9:27 AM. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.