The URL can be used to link to this page

Home My WebLink AboutOrdinance 27648-05-2025ORDINANCE NO.27648-05-2025 AN ORDINANCE LEVYING SPECIAL ASSESSMENTS FOR THE COSTS OF CERTAIN IMPROVEMENTS AND SERVICES BENEFITTING A CERTAIN ADDITIONAL HOTEL PROPERTY IN PUBLIC IMPROVEMENT DISTRICT 18 — TOURISM DURING THE REMAINDER OF FISCAL YEAR 2024-2025; SETTING CHARGES AND LIENS AGAINST PROPERTY IN THE DISTRICT AND AGAINST THE OWNER THEREOF; PROVIDING FOR THE COLLECTION OF THE SPECIAL ASSESSMENTS; PROVIDING FOR DUE DATES, PENALTIES, AND INTEREST; PROVIDING FOR RELIANCE ON ORDINANCE AND RECITALS IN EVENT OF A SUIT; PROVIDING A SEVERABILITY CLAUSE; PROVIDING THAT ORDINANCE IS CUMULATIVE OF ALL NON -CONFLICTING PRIOR ORDINANCES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Chapter 372 of the Texas Local Government Code ("Code") authorizes the creation of a public improvement district consisting of non-contiguous territory in which is located hotels meeting certain criteria, with owners/operators of such hotel properties being subject to assessment to pay for the services and benefits provided by the district; WHEREAS, on August 29, 2017, the City Council adopted Resolution No. 4837-08-2017, establishing Public Improvement District No. 18 - Tourism ("PID") in accordance with Section 372.0035 and other applicable sections of the Code; WHEREAS, on August 18, 2020, April 13, 2021, September 14, 2021, April 26, 2022, May 21,2024, and August 27, 2024, the City Council adopted Resolution Nos. 5264-08-2020, 5382-04- 2021, 5467-09-2021, 5561-04-2022, 5958-05-2024, and 5998-08-2024 respectively, expanding the boundaries of the Tourism PID (Resolution Nos. 5264-08-2020, 5382-08-2021, 5467-09-2021, 5561- 04-2022, 5958-05-2024, and 5998-08-2024 are collectively referred to as the "Expansion Resolutions"); WHEREAS, on April 22, 2025, the City Council conducted a public hearing on the following matters related to the PID: (i) further expansion of the PID to include one additional hotel property, the Le Meridian Hotel, located at 811 Commerce Street, Fort Worth, Texas 76102, and the advisability of the improvement and services to be provided ("Services"), and (ii) the 2024-2025 assessment for the additional hotel property (M&C No. 25-0375); WHEREAS, on May 13, 2025, the City Council conducted a second public hearing on the above -stated PID matters and took the following actions: • Adopted a Resolution to further Expand the PID ("Expansion Resolution') to include the one additional hotel property listed in Exhibit A, which is attached hereto and made a part of this Ordinance for all purposes (such property hereinafter being referred to as "Hotel Parcel" and the hotel located thereon being referred to as a "Qualifying Hotel'), pursuant to Section 372.0121 and other applicable sections of the Code; • Approved the revised 2024-2025 assessment roll; and Ordinance No. 27648-05-2025 Page 1 of 5 Adopted this Ordinance levying special assessments on the Hotel Parcel for the remaining Fiscal Year 2024-2025. WHEREAS, the Texas Comptroller of Public Accounts has indicated that owners/operators may seek reimbursement in an amount equal to the special assessment from hotel guests, with such reimbursement being a mandatory charge that is subject to state and local hotel tax (Texas Comptroller Opinion Letter 201111277L, November 8, 2011); WHEREAS, it is proposed that the owner/operator of the Hotel Parcel be assessed at a rate of two percent (2%) of the consideration received from occupancy of any sleeping room furnished by the Qualifying Hotel, which assessments will be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code; and WHEREAS, notice of the above -stated public hearings on April 22, 2025, and May 13, 2025, ("Public Hearings") was published and mailed in accordance with state law, and all persons desiring to be heard were given a full and fair opportunity to be heard at the Public Hearings. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. The Public Hearings are hereby closed, and any and all protests and objections, whether herein enumerated or not, are hereby overruled. SECTION 2. The City Council, from all evidence before it, including all information provided to it and considered in the Public Hearings, finds that the assessments described herein on the Hotel Parcel should be made and levied in a manner that results in imposing the costs of the Services on the Qualifying Hotel and Original Qualifying Hotels that are similarly benefitted from the provision of those Services. The apportionment of those costs will be based on the special benefits accruing to the Qualifying Hotel and the Original Qualifying Hotels on account of the Services provided. As a result, the Qualifying Hotel and Original Qualifying Hotels that sell more guest rooms will pay a greater portion of the costs of the Services because those properties will have received a greater benefit from the promotions and marketing comprising the Services. The City Council further finds that this method of assessment is fair and equitable and results in an apportionment of the costs of the Services that complies with applicable law. SECTION 3. In accordance with Section 372.017, Texas Local Government Code, in order to pay the costs of the Services provided during the remaining Fiscal Year 2024-2025, the City hereby levies a special assessment against the owner/operator of the Hotel Parcel in an amount equal to two percent (2%) of Ordinance No. 27648-05-2025 Page 2 of 5 the consideration received from the occupancy of any sleeping room furnished by the Qualifying Hotel, which assessments will be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code. This is effective on the date that the Expansion Resolution is adopted by the City Council. SECTION 4. The assessments levied hereunder, together with reasonable attorney's fees and cost of collection, if incurred, are hereby declared to be and are made a lien upon the Hotel Parcel and Qualifying Hotel, and are a personal liability and charge against the real and true owners of such properties, whether such owners are correctly named herein or not. Such liens shall be and constitute the first enforceable lien and claim against the Hotel Parcel and Qualifying Hotel, superior to all other liens and claims, except state, county, school district and city ad valorem taxes. A copy of this Ordinance will be filed with the County Clerk of each county in which a Hotel Parcel and Qualifying Hotel are located, and when so filed constitute complete and adequate legal notice to the public concerning the liens hereby assessed against the parcel of property and the owners thereof. The sums assessed against the Hotel Parcel are due at the same time that hotel occupancy taxes on the Qualifying Hotel located thereon become due, and shall become delinquent if not paid by the applicable deadlines for hotel taxes remittance established by Chapter 32, Article II of the City Code. The entire amount assessed against the Hotel Parcel shall bear penalty and interest, from and after the respective due date at the same rate as prescribed Chapter 32, Article II of the City Code, for hotel tax. SECTION 5. If default shall be made in the payment of any assessments, collection thereof shall be enforced by suit in any court of competent jurisdiction, and said City shall exercise all of its lawful powers to aid in the enforcement and collection of said assessments. SECTION 6. The total amount assessed against the respective parcel of property and the owners thereof is in accordance with the proceedings of the City hereto and is permitted by applicable law. SECTION 7. Full power to make and levy reassessments and to correct mistakes, errors, invalidities, or irregularities in the assessments are, in accordance with the law in force in this City, vested in the City. SECTION 8. In any suit upon any assessment or reassessment, it shall be sufficient to allege the substance of the provision recited in this Ordinance and that the Recitals hereto are in fact true, and further allegations with reference to the proceedings relating to such assessment and reassessment will not be Ordinance No. 27648-05-2025 Page 3 of 5 necessary. SECTION 9. Should any portion, section, or part of a section of this Ordinance be declared invalid, inoperative, or void for any reason by a court of competent jurisdiction, such decision, opinion, or judgment will in no way impair the remaining portions, sections, or parts of sections of this Ordinance, which remain in full force and effect. SECTION 10. This Ordinance is cumulative of all other ordinances and appropriations amending the same except in those instances where the provisions of this Ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 11. This Ordinance takes effect and is in full force and effect from and after the date of its passage. AND IT IS SO ORDAINED. APPROVED AS TO FORM AND LEGALITY: LAWreizce-G. aomG Eer Larry Collister, Sr. Assistant City Attorney M&C: 25-0422 Adopted: Mav 13.2025 �00 �00 0000°°o-"Ot' 00 OAG 000 0�c 0 °o° oo* G 0 0o or ATTEST: Jannette S. Goodall, City Secretary Ordinance No. 27648-05-2025 Page 4 of 5 EXHIBIT "A" OUALIFYING HOTEL AND HOTEL PARCEL Account Name Address City, State, Zip Rooms Le Meridien 811 Commerce Street Fort Worth, TX 76102 188 Ordinance No. 27648-05-2025 Page 5 of 5 REVENUES City of Fort worth Three Year Service Plan Public Improvement District No. 18 - Tourism - MidYear Update PID Assessments Use of Fund Balance Total Funds Available for Use EXPENSES Incentives & Sales Efforts Marketing and Research (Promotion/ Advertising) Site Visits & Familiarization Tours Cultural Enhancements through Marketing and promotion of the Arts Operations & Administration City Administrative Fee Total Budgeted Expenses FY24/25 FY25/26 FY26/27 $ 7,750,000 $ 8,060,000 $ 8,380,000 $ 7,750,000 $ 8,060,000 $ 8,380,000 $ 3,962,925 $ 4,122,575 $ 4,287,375 2,693,250 2,801,750 2,913,750 153,900 160,100 166,500 577,125 600,375 624,375 307,800 320,200 333,000 55,000 55,000 55,000 $ 7,750,000 $ 8,060,000 $ 8,380,000 Tourism PID Hotels Updated as of 4/22/2024 (Account Name Address City, State, Zip RMS IAC Hotel Fort Worth - Downtown 610 Main St Fort Worth, TX 76102 252 (Aloft Downtown Fort Worth 300 Throckmorton Fort Worth, TX 76102 180 (American Airlines Training and Conference Center 4500 American Blvd. Fort Worth, TX 76155 299 (Autograph Collection Downtown Fort Worth 512 Main St. Fort Worth, TX 76102 165 (Avid Hotel 320 Samuels Ave. Fort Worth, TX 76102 104 Bowie House 3700 Camp Bowie Blvd. Fort Worth, TX 76107 106 Budget Suites of America - Fossil Creek 3500 NE Loop 820 Fort Worth, TX 76137 366 Candlewood Suites - DFW South 4200 Reggis Drive Fort Worth, TX 76155 174 Courtyard by Marriott - Alliance 3001 Amador Dr. Fort Worth, TX 76244 127 (Courtyard by Marriott - Blackstone 609 Main Street Fort Worth, TX 76102 203 (Courtyard by Marriott - Stockyards 2537 Main St. Fort Worth, TX 76164 124 (Courtyard by Marriott - University Drive 3150 Riverfront Fort Worth, TX 76107 130 (Courtyard by Marriott - West at Cityview 6400 Overton Ridge Boulevard Fort Worth, TX 76132 104 IDalworth Inn 812 E. Felix Street Fort Worth, TX 76115 120 (DFW Airport Marriott South 4151 Centreport Boulevard Fort Worth, TX 76155 295 (DFW Marriott Hotel and Golf Club at Champions Circle 3300 Championship Pkwy Fort Worth, TX 76177 286 Embassy Suites Hotel - Downtown Fort Worth 600 Commerce Street Fort Worth, TX 76102 156 (Extended Stay America - City View 5065 Bryant Irvin Rd Fort Worth, TX 76132 104 (Fairfield Inn & Suites Downtown 1010 Houston Fort Worth, TX 76102 110 (Fairfield Inn & Suites Fossil Creek 3701 NE Loop 820 Fort Worth, TX 76137 106 (Four Points by Sheraton Fort Worth 6828 North Freeway Fort Worth, TX 76137 113 Hampton Inn and Suites - West/1-30 2700 Green Oaks Fort Worth, TX 76116 105 (Hampton Inn and Suites - DFW South 4201 Reggis Court Fort Worth, TX 76155 116 (Hampton Inn and Suites Downtown Fort Worth 1001 Commerce St. Fort Worth, TX 76102 245 (Hilton Fort Worth 815 Main Street Fort Worth, TX 76102 294 Hilton Garden Inn - Fort Worth Alliance Airport 2600 Westport Parkway Fort Worth, TX 76177 127 Hilton Garden Inn - Medical Center 912 Northton Street Fort Worth, TX 76104 157 (Holiday Inn - DFW Airport South 14320 Centre Station Road Fort Worth, TX 76155 143 Holiday Inn Express - Downtown 1111 W Lancaster Fort Worth, TX 76102 132 Holiday Inn North - Fossil Creek 4635 Gemini Place Fort Worth, TX 76106 126 IHome2 Suites by Hilton - Cultural District 3000 & 3012 W Lancaster Ave Fort Worth, TX 76107 114 (Homewood Suites - Fossil Creek 3701 Tanacross Fort Worth, TX 76137 137 (Homewood Suites - Medical Center 2200 Charlie Lane Fort Worth, TX 76104 157 (Hotel Drover, Autograph Collection 200 Mule Alley Drive Fort Worth, TX 76164 200 (Hyatt Place - Alliance Town Center 3201 Alliance Town Center Fort Worth, TX 76177 130 Hyatt Place - Cityview 5900 Cityview Street Fort Worth, TX 76132 127 (Hyatt Place - Stockyards 132 E Exchange FortWorth, TX 76164 100 (Hyatt Place -TCU 2500 West Berry Street Fort Worth, TX 76109 127 Kimpton Hotel 714 Main St Fort Worth, TX 76102 232 La Quinta Inn and Suites - Fort Worth North 2501 Polaris Dr Fort Worth, TX 76137 133 ILa Quinta Inn and Suites - Southwest 6100 Overton Ridge Fort Worth, TX 76132 128 I* Le Meridien 811 Commerce Street (Fort Worth, TX 76102 188 (Omni Fort Worth Hotel I1300 Houston Fort Worth, TX 76102 614 (Quality Inn and Suites - Cattle Baron I2700 S Cherry Lane Fort Worth, TX 76116 109 (Holiday Inn (Previously-Radisson - Fort Worth South Hotel) I100 Alta Mesa East Fort Worth, TX 76134 247 IRadisson Hotel - Fort Worth Fossil Creek I2540 Meacham Street (Fort Worth, TX 76106 247 (Residence Inn -Alliance Airport 13400 North Freeway (Fort Worth, TX 76177 ill (Residence Inn - Cultural District 2500 Museum Way (Fort Worth, TX 76107 150 (Residence Inn - Waterside I5825 Arborlawn Drive Fort Worth, TX 76109 119 (Sandman Signature Hotel I810 Houston Street Fort Worth, TX 76102 240 (Sheraton Fort Worth Hotel and Spa I11601 Commerce Street (Fort Worth, TX 76102 429 ES Suites - (Previously- Residence Inn - Fossil 5801 Sandshell Drive Fort Worth, TX 76137 114 �Sonesta Creek) Sonest Select (Previously Courtyard byMarriott -Fossil 3751 NE Loop 820 Fort Worth, TX 76137 154 Creek) ISpringHill Suites by Marriott - Stockyards I2315 N Main St (Fort Worth, TX 76164 170 ISpringHill Suites by Marriott- University I3250 Lovell Street (Fort Worth, TX 76107 145 TownePlace Suites Downtown 801 E Belknap Fort Worth, TX 76102 140 TownePlace Suites University 3450 W Vickery Fort Worth, TX 76107 128 1WoodSpring Suites Fort Worth (Worthington Renaissance Hotel Total # of Hotels: 59 ' New Hotel Addition 3501 NE Loop 820 200 Main Street Fort Worth, TX 76137 121 Fort Worth, TX 76102 504 mDNT I Th RDII ITRD ROU I R: ed I T.DA .-N.-Ij F-ItIN ITAI-IPro«„Yldd,... I3.RND.PRo 1_ I-.- Igw9. NR Ir.1N.RfTNNdITRNITM.e1. IiDtl y NN¢XMI PRauNSTRNNNG NNDmNRxiG y _D NO I v N.NN AIJTODurx tgDERgN o59)RSIO UNNN mu Nm NDIIGN0.w w ,IVIIAIFFR1wINEY NeFURct 911 NNFN GNNIIIIIXFS IN YrvIEW IMOREN WRT -FT-1-1amVm m,DDD,00D waD eI1DORSUo¢w.tMGIU FOSfIOIUaK w50gYbUlN 1 cOLDrMONv11FIOttxywxEE xcwFxDlEI mumNONRFMT Y RnNRNe CwuN.4 4POOCm uNN.4 tlotma T:` M NaON6GrsRm iDu mNNNOFU m l LDMDIItDx ELxk•laa DEfEx GsraN.LHH va HGKEWwlfismtis oft/4tlm la♦ FOVF]XwFIDWxD511O FKNwsTE1m I Nm-I TOWN mn¢NORM-INLI I -NOT. NO.IRO fXD xelw000 PROW n FORT wOFM TK)c3]) >;O1L0'q a;om I-IOR, IunAR/ 13,mAn a,Lm.Dn 14tl1® 11In,aD .-AA. NNNDtt eLIanDN 1 COVIIDNDNMIIFOrt RLftEiON Dn-ICIIEI mumNOrvaNNOT DowxrowrrtwDRM /uasrDxE r WLRq/y n r MRTxfl.tvnONE aRDln NNlxn fm Mllw sr FORT, wgnN o/gRlNrowxecaDlaln wN.RTEDarrNmltluc ulss DEUHrKwrn wnlxnmv fn-TxoalrurtY ltl1. EEGH rtYn sr /unlx TF 1DRDm i4a.roD IDm,® am IR,__ Nxw Im'NOry MNFxn DNR) ['wuM Ost N-F/m TxMux1 E.m It. rtgNNRlstu6Ntu Fa rurl ANN. NTI[LNOi„NrtYOYMIX aE MTry n m SDOAn 14Smgm ®pm µfmpm 2.21 IT=:sm mwttND NNRIIon wEsr NT RrrvIEw QNLR-D T Rlm mE NmnoNRNa I Inu ND INULT11Lb Tx NH DTx FbOF xew rowan NPR lmn u xGTONtt amsla 1-2 4)al0m 4]m,® NDSEf T:Nfhd �nxn Tfllua KUIDF /bStalaa Ms4 u[m I,RiODm LfD,® 1 x)TTNOTEINDm-IFIRT NRDNxa'a N NVDNgrt NO�N1DmO w1]ua TiNM mu tlIOENTREFORT DF xRNSt ml IXl ESTwEW xILRRItlo1) N-OND/D.NINarNK.Klbll ND xxx 141m,Dm WwCO 6Dl t ONcic r aDm ma awO_ONxRFrtw Na¢ DNNNwIIxs ORc a NDx0„ELq FRO cs�an n,m4w> n,m4M 14IC M 3311m,0m 21-- y mwwonNr «RNc.Dttvl- x nlnal umn.PR smS oONn _Fo mN SD1511-IFMxm cmV Rm„INI Rtnt 4 Lot lO_q RM bi nttrtewnrt YmNM FORw NDbw puDnnE N[al)] cm-ADOTIO.-III.-OOL-60I rt 11-R-NDmeoxsb -IRlI IF, ;sIIh1 n.m 3,fi;T31 n.ln am Nm¢mwfJrowx Doallowr FNPR1FmINxNNO OOwxr ORMM0.wsTE Dw.t Tx]b1I lib,® I-- SM¢fODELU.x 1 gV.fTON INN ANDwSltS ofwsoulxM x EOFiwgR N Nmlt ml T:naxi tllimRx T:�uhd Ma NOFRT - mu NmiNFOGISR T011rt NgDDN /bSt 1t11a 11 NNNwVEONENl1c OE-RTA-NebTtlm xorkl2V ODTILNwoDD IRwxGtt1501659a ScaMm 1.3n)af R.- f.N!}m I¢m -III wORTN DORFtNTOANNwNnoN lxxum OLOOMMUUn btN .1-NXITx mm VN N IwTvnwrx mwnowNlOm DVGFEExwNY Cwn NlglmoxM a...x ;e4DD a5m® ia3 T43m,DD11 1 NuxrtoNlNM.wD SNT¢wEn/Ib 1 ONIORrNNgnxES FO N -II NOr.M fn-RIFF nE!DR- I%]S- IORT wgIONOWW11owN eNYlllb afuwEMlFW wbFMxV ttL 3ml O5NW 1D I 3,. .® 5m}m IfJf].fn i w wM MFpt:utExrU LT.. FORT x OxGKwx Fr "OOMMOIn f1 FORT— I NsSoo NOT. L r ltlDOulAf F[xn to a I F NOIRR.=laywxrfNlmTl11NF m m I-- asAm 15,35DpOD y ENNFOn FORTNINNLE NNNORT IN1 N14m]I TaNhd NIINKEGIm1.'V XIrONGNwxwN 0.NtSNLI-I. DrsT111a NLNIEEwwR IF nFmNOMFxru 0.V bOrNNYE1._a D,.I- t -1 totlxpeD ..1 F..=ARN nNIOnID¢¢ EDLIDSYwNM En r..a GFM1 .1�R NHw )pOFOYwE xOtOwOSDO TE1N•F/celEwLrtwNNY�Ngx /IztR_. NNNnERMI551ONVNlrvV vgxEbnSUF[Y SNp_)sm v]m1 NRI_.,RC, r wESTMONDrillnLc OFw NOTELGw3Hlic I9asDm 1ST,® ;an,mp 10as,® 1- y NOUE.S000nllTFSrvro$M1UfEcwL06TR x.'r Nxw„¢rvxlroN NiwD¢rvxlloN Oimfn/Gnfhd IReMron wonx rNrxDsllc 1 aIMEaFF[vn el wclmxwlmm YNTwgT ruu NDTDNDaaIn1D TNIRMFwT wogx PRNTM[DL3[ a NIMETFFFKwr el YnOmTx wl® MIMRTIONEbFtM-NI-RESIINWEWnuNu[1a5 a 34mf.TEO cygcm nsam ams,nD R" m,mt NOMEwaoD Nn¢uFDMwIcpTU 1.mDUNww FifTSNmTxrtW 0.xtiF-11nL Nwl NIWTT.WIIFTW [IIWEE /uE WJx I11g0® 1yOU,o'q raaFOHFRSN¢aDTr mMuuNinw FwrLNwrnEsmcerNmmR3.sD�t1 namwnNTgNngraxucllalcfoDmNmFEw gnwumunaufnsw] ctxTFF 'AIPZRtaLaR �nNm NnrGa DRc iDal NVA,D„DIaI ON - mNumu rowx aN NuueETDwaNnNfenRl.Lw: rurlNmNTgmNUNFa 1xH5TN EOmuGrtvw cmvXwwolrgxR�t)lotnf cnoarNmnnox t1.s .l9R zDm® 11a].a ..NOTEI nw Ot RLFRI NR NLrtELIF m NHRtO I'.)m,Dw 1 -11 mks MDTDNRblaInT1-N TExN ENF_UNIHFNtt RwaFw1FOO_. Tx aI- FMrwvET gIWMNTowE3Ya ivwt/I Ory of 11 ..A- At.,"D 1 y LEL FORT f.T�YOFMNM_ TDwNRm lwmm hNLxNNFNLEn•TEIRxvIOEwmtaiulm/1m N[NXmSTN aa) tR1Y NOT .u[ UMIAKE Tx -I a.D;Ds IX11.1 a.D1%s RSD,fa 111AN y NaN„NxNix NlDsuasburxwm LAORR At.N ]SO NDFrNrs.w M[N[xnIV EF1Ow.DOO ON /L'I1NLM tFID111Oi.114 a35MWLy McmvXw)mrtgx /Iwttl.lNbxmlwD ru NOTEUL1c -- Iel;sn I= 4DLw) 1.2 ;Dun y xoTEl smrWnox fi Rlb NIXIOON RloaNd„oNOU10o uLmNN ONRrOnwgnx R-NERxw Cm NwaNH nE CO DMus n alv _AIO RmpKD xm. RD NOLIVONnRmUNORII]N EOMIO 1 NF Of OW FORT INONM PRNTNEFYRT xb1 FNrIE NH ITE lvuVSTtam %,3aSN Itf 4nlID y RLN:FIbNwNNVtl myhfaDN ImTxop ,TO I WmrRDHNweaEnNlRixonLlwn IVNlCl1c q4m 24. m.m®D IFEC FUEEO-.*Nero DI1NIltt INx4lm-11i E6MOx OWB Nlfnn 06irow�ee N MINEeRIV I.K gNRXzk MFmNuT sN bOw RTHHOTEl uJm,m0 Ii)lm0 3.nlOm 21. FEx t FmodUINN CV iDNY Mn RT¢ y w INN N ONM tl]f9Mf ON_ mu am MUSEUNwxr I -a NIRRI-1-11Nn Rbti X1N 1 ]mR NOoxNmmox waxlRTN FORT WOnxl __D, N1.Stt aa] s0)NxxTIOx DrIt 2 VNq 2. 1n Elubw6R Nw'roNO SSµNx )SwOm III-- 1- ISJl- 2nl Ni- MAOn wNEM w TFFNDE111 Lo¢ FORT-TNrz]61T.3m1 F.nnE. ],Ygmt fWN1)DwMToNxWIlw.NTiwIMxlf m NINCNEINDgNwSWIR MONVNDEVEI]PMET1D1)55WeROAAI VS , ,, TxNoNrOFti. Nm YN O 51 ON- I TIDx /itw1N I N .- n,Iwm0 al,== SLRrorvMxggn'-01 F91Y =ZRIATIMNIAR101 I 12o EWS NG.tm„gN ebtL1NLF1 1RmsT0W NH It., ervulttlnD3 mNHlatt UxnIF MD„Dl1 /ba tlneni ]Ilf MNG9a1/ L1OSu R.D4om At- R/sD,m) T¢DOwxTOWN sY„¢ F31aa3 GNINd 3)w tl tt CODq fDRm0 f ab,OD f.lm,® 1 M xmEi y RDME NO-OTEL wmmNKNms1n¢ rqR« xm. Y RDwa NODN toaL iSm NbOF/mLw NOENAAL wr wDAi ix>Sa1t x • cRLne/ FOOITOWNIIv 11TNVINRITROIEIn NMEIOKMD-4 NFN pUNONT-IN GMrRUME RFRIT MDMa!fn111'am1 W).V] RO_ 4Rn,aT xm. AtRONOTI�lwxmEl wl .-.IEL ImMwEUNH e6w mNND M rNlrtt DUERIzIINEua DF marnlusR� F3aLHe NtluJDrzaoa 3 'R amlm b 91- 114nf I LENwwEN uNHlwx-mNNNu r 01- ma RucoMNnan FOIITwDONLRwwNTOwN- 1111 21G wxm.-T .Do IN....It-Nuh»uD a.m- a,Sm,mD Dw I VN« % IeM/NFl % NolPro«„les % TOuI 1,IRE,lfD,t35 SIOEL 303.561 1- 59 lDO% 40% 69),696,141 6DY. 121.5366 6 6 35.4 1. lnr,llemed 951,115,384 B1.)9% .xee -1- IJ«OMI'.. 211,694,851 18.)1% I aNl59.9)x 29.63Y 11 32.209: City of Fort Worth, Texas Mayor and Council Communication DATE: 05/13/25 M&C FILE NUMBER: M&C 25-0422 LOG NAME: 17PID18 MIDYEAR FY25 SUBJECT (ALL) Conduct Public Benefit Hearing Concerning the Following Matters Related to Fort Worth Public Improvement District No. 18 — Tourism: (1) Expansion of the Tourism Public Improvement District to Include One Additional Hotel, (2) the Updated and Revised Fiscal Year 2024- 2025 Budget and Three -Year Service Plan, and (3) the 2024-2025 Assessment for the Additional Hotel Property; Adopt Resolution Authorizing and Expanding the Tourism Public Improvement District to Include One Additional Hotel Property; Approve Attached Revised 2024- 2025 Assessment Roll; Adopt Ordinance Levying Special Assessments on the Additional Hotel Property for Fiscal Year 2024-2025; Adopt Resolution Updating and Revising the Tourism Public Improvement District's Fiscal Year 2024-2025 Budget and Three -Year Service Plan; and Adopt Appropriation Ordinance (PUBLIC HEARING - a. Staff Available for Questions: Crystal Hinojosa; b. Public Comment; c. Council Action: Close Public Hearing and Act on M&C) RECOMMENDATION: It is recommended that the City Council: 1. Conduct a Public Benefit Hearing Concerning the following matters related to Fort Worth Public Improvement District No. 18 — Tourism: (1) Expansion of the Tourism Public Improvement District to include one additional hotel property, (2) the updated and revised Fiscal Year 2024-2025 Budget and Three -Year Service Plan, and (3) the 2024-2025 Assessment for the additional hotel; 2. Adopt the attached Resolution: (i) making certain findings concerning the nature and advisability of special improvements and services to be provided for the benefit of the additional hotel to be included in the Tourism Public Improvement District, the estimated costs of such improvements and services, the method of assessment, the boundaries of the Tourism Public Improvement District, and the apportionment of costs between the Tourism Public Improvement District and the City, as a whole; and (ii) authorizing and expanding the Tourism Public Improvement District to include one additional hotel property; 3. Direct City Staff to record a copy of the Assessment Ordinance in the real property records of the appropriate county no later than the seventh (7th) day after adoption by the City Council; 4. Approve the attached revised 2024-2025 Assessment Roll; 5. Adopt the attached ordinance levying special assessments on the additional hotel property for Fiscal Year 2024-2025, 6. Adopt the attached resolution updating and revising the Tourism Public Improvement District's Fiscal Year 2024-2025 Budget and Three - Year Service plan; and 7. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Fort Worth Public Improvement District 18 - Tourism Fund in the amount of $350,000.00, from available, unreserved fund balance, for the purpose of funding mid -year budget adjustments. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to conduct a public hearing concerning the expansion of the Tourism Public Improvement District (PID) to include one additional hotel property, the updated and revised Fiscal Year 2024-2025 budget and three-year service plan, and the 2024-2025 assessment for the additional hotel, along with certain actions related thereto. On August 29, 2017, the City Council adopted Resolution No. 4837-08-2017, establishing the Tourism PID (Establishing Resolution). The City Council subsequently adopted Resolution Nos. 5264-08-2020 (August 18, 2020), 5382-04-2021 (April 13, 2021), Resolution No. 5467-09- 2021 (September 14, 2021), Resolution No. 5561-04-2022 (April 12, 2022), 5958-05-2024 (May 14,2024), and 5998-08-2024 (August 27, 2024) expanding the boundaries of the Tourism PID to include additional hotel properties (Expansion Resolutions). Exnansion of the Tourism PID Boundaries and Petition: The current boundaries of the Tourism PID consist of noncontiguous areas authorized under Section 372.0035 of the Texas Local Government Code (Code) consisting solely of hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth. A list of the hotels that are included within the boundaries of the Tourism PID is included in the Original and Expansion Resolutions and attached hereto. Senate Bill (SB) 804, 87th Texas Legislature (2021), which went into effect on June 14, 2021, revised Section 372.0121 of the Code to clarify the ability of cities to add new hotels into an existing Tourism PID. One of the new provisions affects the way in which the City calculates (or recalculates) the percentage threshold for adding new hotels into the Tourism PID. SB 804 requires the City to update and recalculate each of the percentage thresholds set forth below every time a new hotel property is added to the Tourism PID. Conversely, the prior version of Section 372.0121 only required the City to calculate the impact that the new hotel property had on the pre-existing thresholds. For example, under SB 804, the City has to update and recalculate the appraised value of each and every existing property in the Tourism PID each time that a new hotel is added; whereas, under the prior legislation, the City simply carried forward the values of the existing hotel properties from the year the hotel properties entered into the Tourism PID. Section 372.0121, as revised, allows the City Council to include additional properties in the Tourism PID if (i) the property is a hotel and (ii) a sufficient number of the record owners of the real property currently included and proposed to be included in the Tourism PID have consented to be included in the Tourism PID by signing the original petition to establish the district or by signing a petition or written consent to include property in the Tourism PID. The number of consenting record owners is sufficient if (1) the record owners own more than 60% of appraised value of taxable real property liable for assessment in the Tourism PID; and either (i) constitute more than 60% of all record owners of taxable real property liable for assessment in the Tourism PID, or (ii) own, in aggregate, more than 60% of the area of all taxable real property liable for assessment in the Tourism PID. If the addition of the new properties results in these numbers dropping at or below the 60% threshold, then the properties may not be added. Inclusion of the Le Meridien Hotel, located at 811 Commerce Street, Fort Worth, Texas 76102, meets both of the above -stated elements, therefore the hotel may be considered by the City Council for inclusion into the Tourism PID. First, the Le Meridien is a hotel property. With regard to the second element, the City Council found that the previous two petitions (original and expanded) complied with Section 372.005 (b-1) of the Code because they had met the necessary percentages. The property owners, or their duly authorized representatives, for the new hotel property, have signed a petition requesting inclusion within the Tourism PID. This results in an increase to 81.79% of the appraised value of taxable real property liable for assessment, 70.39% for the area of all taxable real property liable for assessment, and 67.80% of record owners liable for assessment. Because the percentages are still above the 60.00% threshold, the properties meet the second element. Nature of the Improvements: The goals of the Tourism PID focus on increasing the economic impact and enhancing competitiveness in conventions, meetings, leisure and sports tourism, and increasing tourism -related economic activity at all times, including during economic downturns and as inventory grows. The Tourism PID projects include incentives and sales efforts, convention and sports marketing and promotion, site visits and familiarization tours, community arts grants, convention services, event funding applications, operations, research, and administration, all of which benefit the hotels within the Tourism PID. Method of Assessment and Apportionment of Costs: The assessment rate will be an amount equal to 2.00% of the consideration received from the occupancy of any sleeping room furnished by a hotel located within the Tourism PID, with such assessment to be collected in the same manner and in accordance with the same procedures as those established for the collection of the City's Hotel Occupancy Tax, as set forth in Chapter 32, Article II of the City Code, as amended. The entire costs of each improvement and service will be paid from the above -stated assessments and no City funds will be used to pay any portion of such costs unless such funding is approved by the City Council on a case -by -case basis. Estimated Costs of the Improvements and Services: The total estimated costs for the proposed services and improvements for the life of the Tourism PID (approximately three years) will be $24,190,000.00, which includes an estimated cost of $350,000.00 for the Fiscal Year 2024-2025 Mid -Year Budget Adjustment. The updated and revised budget and three-year service plan is set forth in more detail below and attached. The final version will be subject to approval by the City Council. The estimated costs of the proposed improvements and services to be provided in subsequent years will be subject to future annual budget and service and assessment plans adopted by the City Council in accordance with the Code. The actual costs of improvements and services will be determined in accordance with the approved budget and service plan to be adopted by City Council and will be paid from Tourism PID assessments. Advisability: Staff recommends that the City Council find that these improvements and services are advisable because they will promote the interests of the City and confer a special benefit on the assessed properties within the expanded boundary of the Tourism PID. Staff recommendation: The Petition has been examined, verified, and found by City staff to meet the requirements of the Code. Therefore, staff recommends that the City Council find that the Petition to include the above -stated three hotel properties meets the requirements of the Code. Tourism PID Mid -Year Adiustments The Tourism PID is funded through a 2% assessment on the consideration received from occupancy of any sleeping room furnished by a hotel in the Tourism PID. Due to the most recent forecast analysis, Tourism PID assessment revenue is now projected to be 4.73% or $350,000.00 more than originally budgeted. The budgeted expenses show an increase in each category line item for the current fiscal year service plan (see table below). Revenue adjustments: Llne Items previously Approved Recommendedil Amended to be FY25 Budget Item Mid -Year FY25 Budget Adjusted Adjustment; Item AsssessmentsJ $7,400,000.00 $350,000.001$7,750,000.00j Totals (L $7,400,000.00 $350,000.001$7,750,000.00 Expenditures adjustments: Items Recommended' Amended Line to Previously Approved Mid -Year FY25 Budget be Adjusted FY25 Budget Item Adjustment Item Incentives & Sales Efforts $3,782,675.00 $180,250.00 $3,962,925.00 Marketing and Research (Promotion/ $2,570,750.00 $122,500.00 $2,693,250.00 _Advertising) Site Visits & Familiarization $146,900.00 $7,000.00 $153,900.00 Tours Cultural Enhancements through $550,875.00 $26,250.00 $577,125.00 Marketing and promotion of the Arts Operations & Administration $293,800.00�I 1 $14,000.00I $307,800.00 City Administrative I $55,000.00I $0.00I $55,000.00� Fee `Totals II $7,400,000.001 $350,000.00I$7,750,000.00 Staff supports Fort Worth Tourism PID Corporation and Convention & Visitor Bureau's recommended mid -year budget adjustments. Upon approval of the above recommendations, the total budgeted expenses for FY 2024-2025 will be $7,750,000.00. The revised Budget and three- year service plan will take effect upon approval by City Council. The proposed changes to the Tourism PID's FY 2024-2025 budget complies with the City's reserve requirements. Funding is available for appropriation in the fund balance of the FWPID #18 - Tourism Fund. The beginning balance is $7,902,711.97, After this M&C, the available balance will be $7,552,711.97. The Tourism PID properties are located in ALL COUNCIL DISTRICTS. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that upon approval of the recommendations and adoption of the attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, in the FWPID #18 - Tourism Fund. Prior to any expenditure being incurred, the Economic Development Department has the responsibility to validate the availability of funds. Submitted for Citv Managers Office bv: Jesica McEachern 5804 Oriainatina Business Unit Head: Kevin Gunn 2015 Additional Information Contact: Crystal Hinojosa 7808