Posting Language
Title
Approve an ordinance designating a geographic area of the City as Project Financing Zone Number One, City of Austin, Texas, allowing the City to use certain incremental hotel-associated tax revenue, including certain hotel occupancy taxes, sales taxes, and mixed beverage taxes, to finance qualified projects, requesting that the Texas Comptroller of Public Accounts deposit the State's incremental hotel-associated tax revenue from the zone into a suspense account held in trust for the City's financing of qualified project activities in the zone, and providing a zone expiration date of 30 years from the date of designation of the zone. Funding: This item may result in increased revenue for eligible City projects from certain State hotel-associated tax revenues.
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Lead Department
Convention Center.
Fiscal Note
The PFZ is projected to result in an additional revenue of $1.3 million for eligible Qualified Project costs in Fiscal Year 2024-2025. Revenue is expected to increase in future years.
Prior Council Action:
October 19, 2023 - Council approved two contracts related to design and engineering services and preconstruction and construction services with LMN | Page and JE Dunn/Turner, respectively.
June 10, 2021 - Council approved Resolution No. 20210610-005 on an 11-0 vote and Resolution No. 20210610-096 as amended on an 11-0 vote, approving the Construction Manager at Risk methodology for Convention Center redevelopment and expansion.
For More Information:
Trisha Tatro, Director, Austin Convention Center Department, 512-404-4218.
Additional Backup Information:
During the 88th Texas Legislative session, Austin was added to a list of cities eligible to utilize a new funding stream for qualified projects. H.B. 5012, passed on June 13, 2023, and effective on September 1, 2023, allows the City to designate a Project Financing Zone (PFZ or Zone).
A PFZ allows an eligible city to create a three-mile zone centered around a qualified projec...
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