The City and Fort Worth Convention and Visitors Bureau (CVB) are currently parties to a professional services agreement under which the CVB markets and promotes Fort Worth as a business and leisure destination, Mayor and Council Communication (M&C C-26483) (CSC No. 44949, as amended and addended). The initial term of the agreement is for five years, beginning on October 1, 2013 and expiring on September 30, 2018, and includes two options to renew for additional one-year periods each. Staff is recommending to amend the initial term of the agreement such that it expires on September 30, 2021, with the option to renew for two additional one-year periods.
The core marketing services provided by the CVB as part of the Agreement are funded through an allocation of 47 percent of "tax collections", which is defined as revenue that (i) has been generated by the City's seven percent local Hotel Occupancy Tax (HOT) and (ii) is not designated for another purpose. On December 1, 2015, the City Council designated incremental growth in revenue from the City's 7% HOT that is in excess of $18,850,936.00 (baseline amount) and that is generated by hotels inside of the City's Project Financing Zone Number 1 (PFZ) for eligible special projects, including the Multipurpose Arena and future planned improvements at the Convention Center (M&C G-18614). HOT revenue received in excess of the baseline amount is allocated according to the location of the hotel generating the revenue. Incremental growth in HOT generated by hotels inside of the PFZ is designated for use on the eligible special projects. However, the CVB continues to receive 47 percent of HOT revenues up to the baseline amount, plus 47 percent of incremental growth in HOT that is generated by hotels located outside of the PFZ and that is not otherwise designated for a specific use now or in the future. In the Fiscal year 2019 Culture and Tourism Fund budget, this equates to a baseline total of $8,859,940.00, with $1,066,034.00 being the 47% HOT outside of the PFZ, for a final total of $9,925,974.00. |