Posting Language
Title
Approve a resolution authorizing the City Manager to award, negotiate, and execute Historic Preservation Fund grant agreements and allocations for Fiscal Year 2024-2025 for historic preservation and restoration projects and activities in an amount not to exceed $32,748,586. Funding: $32,748,586 is available in the Parks and Recreation Department’s Fiscal Year 2024-2025 Special Revenue Historic Preservation Fund for historic preservation and restoration projects in accordance with Texas Tax Code Section 351.101(a)(5).
De
Lead Department
Parks and Recreation Department.
Fiscal Note
Funding in the amount of $32,748,586 is available in the Parks and Recreation Department’s Fiscal Year 2024-2025 Special Revenue Historic Preservation Fund for historic preservation and restoration projects in accordance with Texas Tax Code Section 351.101(a)(5).
Prior Council Action:
October 4, 2018 - Council approved Resolution No. 20181004-033 directing the City Manager to allocate the Historic Preservation Fund Fiscal Year 2019 budget in the following manner on a 10-0 vote: 70 percent for City historic facilities and sites in accordance with Texas Tax Code Section 351.101(a)(5); 15 percent% for potential future historic acquisitions or major preservation projects that would be frequented by tourists and convention delegates; and 15 percent for the Heritage Preservation Grant Program.
April 8, 2021 - Council approved Resolution No. 20210408-005 transferring in and appropriating $2,400,000 from the Fiscal Year 2020-2021 Austin Convention Center Capital Fund to provide relief funds to stabilize Austin's tourist economy and address the loss of iconic venues and businesses that promote tourism and the hotel and convention industry. Transfers to the Special Revenue Fund began following Council direction to transfer $15 million over the next five years starting in Fiscal Year 2020-2021. As of Fiscal Year 2024-2025, Special Revenue Fund transfers totaled $12.4 million of the $15 million.
For More Information:
Melissa Alvarado, Heritage Tourism Manager, Parks and Recreation Department, 512-974-7870; Tim Dombeck, Business Process Specialist, (512) 974-6716.
Council Committee, Boards and Commission Action:
February 5, 2025 - The Historic Landmark Commission was briefed by the Heritage Tourism Division staff for approval of the Fiscal Year 2024-2025 Heritage Preservation Grant recommendations.
Additional Backup Information:
The Heritage Tourism Division of the Parks and Recreation Department, formerly the Economic Development Department, manages tourism programs to fund preservation projects and activities that promote heritage tourism to historic sites and museums through a competitive application and review process. Funds for preservation grant agreements and allocations are derived from a portion of the revenues from the City’s Hotel Occupancy Tax. Texas Code, Chapter 351.101(a)(5) authorizes Hotel Occupancy Taxes to be used to promote tourism and the convention industry through the use of those funds for historic restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums. Applicants must use the funds for preservation-related and history-informing projects or activities that promote Austin as a heritage tourism destination.
Historic Preservation Fund Fiscal Year 2024-2025 recommended grant agreements and allocations are shown in Table A attached to the proposed resolution, for the total amount of $32,748,586. Allocations are organized by categories identified in Resolution No. 20181004-033. In summary, $16,977,042 is planned for Capital Improvement Projects and Operational Projects for City-owned historic facilities and sites. Expenditures include $13,779,000 for nine capital preservation projects for City-owned historic facilities and $3,198,042 for operating and tourism promotions for programs and projects for the Parks and Recreation Department and the Austin History Center. The Heritage Tourism Division briefed the Historic Landmark Commission for approval of the Fiscal Year 2024-2025 Heritage Preservation Grant recommendations budgeted for $3,205,855. In addition, $10,065,689 is budgeted for a Potential Future Historic Land Acquisition or Major Preservation Project as approved by the City Council and $2,500,000 is budgeted for the transfer to the Special Revenue Fund to contract with Rally Austin through the Financial Services Department for implementation and disbursement of the Iconic Venue Fund and associated support fees. The Fiesta Gardens Complex is recommended to receive gap funding in the amount of $2,016,383 utilizing the Historic Acquisition or Major Preservation Projects Fund to support the Rehabilitation Phase I Construction project. The Fiesta Gardens Complex is listed in the National Register of Historic Places, therefore all work on the facilities in the complex will conform to the Secretary of the Interior’s Standards for Rehabilitation. Past community engagement for this project occurred in 2020.
City-owned capital improvement projects at historic sites were assessed by staff and approved by the Law Department for the Historic Preservation Fund Fiscal Year 2024-2025 focused on the following factors: historic landmark designation; evidence of tourism impact; equitable geographic distribution of projects throughout the City; department-assigned level of importance; shovel-readiness; and leveraged costs with other private funds, in order to develop a recommendation to fund tourism-serving projects from the 70 percent allocation within the Historic Preservation Fund.
Following a competitive process, staff evaluated Heritage Preservation Grant applications to ensure that proposed projects meet State mandates, guidelines, criteria, and program requirements. Applications from non-profit, commercial, and government entities with a historic designation that meet the criteria were evaluated and scored by an external panel consisting of commissioners, tourism, preservation, and community building representatives that considered and prioritized investments while focusing on tourism impact; preservation impact; project management, budget, accessibility, and impact.
Table A includes a list of organizations recommended for a Fiscal Year 2024-2025 Heritage Preservation Grant. Contracts within the City Manager’s authority are being approved by the City Manager and are shown for informational purposes only. No Council action is required on the contracts within the City Manager’s authority.