Helping Make Dallas Top Destination Tourism 050712
Content
Making Dallas a Top 5 Destination Tourism PID
Economic Development Committee May 7, 2012
Office of Economic Development www.dallas-ecodev.org
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Purpose
Provide the Economic Development Committee with a brief overview of the Tourism Public Improvement District (TPID) and its role in making Dallas a Top 5 tourism destination. Request approval for Council action on the following items
• May 23, 2012 - Call public hearings to be held on June 13, 2012 to consider creation of the TPID & set TPID assessment rate • June 13, 2012 - Hold public hearings and consider creation of the TPID & set TPID assessment rate
Office of Economic Development www.dallas-ecodev.org
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Background - Public Improvement Districts (PIDs)
Public Improvement Districts (PIDs) are locally created districts that can be used to fund physical improvements or additional services within a defined area. Property owners pay a special annual assessment used to fund eligible PID expenditures The City of Dallas currently has nine PIDs located throughout the City: •
• • • Deep Ellum PID DID – Dallas Downtown Improvement District Knox Street PID Lake Highlands PID • • • • • Oak Lawn – Hi Line PID Prestonwood PID Southside PID Uptown PID and Vickery Meadow PID
A summary of the Dallas PID Policy is contained in Appendix B.
Office of Economic Development www.dallas-ecodev.org
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Background – Special Purpose PIDs
State law modified in last legislative session to allow creation of PIDs with non-contiguous property.
• • Previously, state law required PIDs to be geographically contiguous Legislation allows establishment of PIDs for tourism-related purposes but not require the assessed properties to be geographically contiguous
Composed solely of hotels of 100 rooms or more. Primary focus is attracting conventions and group meetings. Allowed to fund any item provided by state law. Tourism PID would be the City’s first Special Purpose PID and first non-contiguous property PID.
Office of Economic Development www.dallas-ecodev.org
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Background – TPID Map
There are just over 100+ room hotels located in Dallas. The largest concentrations of hotels meeting this criteria are in downtown Dallas, the Love Field area, the Stemmons Corridor (IH-35E) and the LBJ Corridor (IH-635). The map on this page shows concentrations of hotels in the proposed TPID. A complete list of 100+ room hotels is contained in Appendix C.
Office of Economic Development www.dallas-ecodev.org
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Making Dallas a Top 5 Tourism Destination
Current funding for Dallas Convention & Visitor’s Bureau (DCVB) is below the amount being spent by competing cities. Here are current annual convention marketing expenditures by city:
• Dallas - $5.4M (increasing to $15M if this proposal adopted) • Las Vegas - $95.5M • Orlando - $35.9M • Atlanta - $11.3M • San Diego - $9.5M • San Antonio - $12.7M • Houston - $7.9M
Office of Economic Development www.dallas-ecodev.org
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Making Dallas a Top 5 Tourism Destination
Twenty-five years ago, Dallas was among the top five destinations for meetings and conventions. Since then:
• Cities across country built comparable convention facilities • Cities built convention center hotels adjacent to facilities • Cities spent substantial money marketing themselves
For Dallas to regain its position as a Top Five Tourism Destination
• Aggressively market area/facilities to meeting planners • Aggressively market area to meeting attendees
Office of Economic Development www.dallas-ecodev.org
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Making Dallas a Top 5 Tourism Destination
The increased funding is part of a program developed by the DCVB to make Dallas a Top 5 Tourism Destination. Dallas currently is ranked in the Top 10 destinations. Creation of Tourism PID initiated by local hotels and the DCVB to allow Dallas to:
• Provide adequate incentives to encourage organizations to bring large conferences, conventions and meetings to Dallas • Enhance marketing and incentive programs to help increase hotel stays within the City
The estimated annual budget of TPID will average $11.2M – to be used for marketing and incentives for convention attraction
Office of Economic Development www.dallas-ecodev.org
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Tourism PID – Funding
Funding generated through a 2% assessment on hotel roomnights that are sold at Dallas hotels with 100 or more rooms The Tourism PID assessment would only include 2% fee collected from hotel guests Hotels will utilize schedule and process currently in place for payment of city hotel occupancy taxes to submit Tourism PID assessments to the City Upon implementation of Tourism PID, total assessment per hotel room night 15%:
• 13% - Hotel Occupancy Tax (7% to City; 6% to State) • 2% - TPID assessment fee
Office of Economic Development www.dallas-ecodev.org
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Tourism PID – Creation Requirements
Petition Requirement
• Petition of support from owners representing at least 60% of total value of all properties meeting PID requirements (hotels with 100+ rooms) AND • Petition of support from EITHER at least 60% of property owners of all properties meeting PID requirements OR at least 60% of the total area of properties meeting PID requirements (hotels with 100+ rooms). Applicant (DCVB) submitted formal application containing:
• • • Petitions Service Plan for TPID Budget & Supporting Information
Office of Economic Development www.dallas-ecodev.org
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Tourism PID – Creation Requirements
Petition Received exceed minimum requirements • Petitions received reflected support for the Tourism PID property owners representing:
• 83.7% of Property Value • 68.9% of Total Property Owners • 69.5% of Total Land Area
Tourism PID Property Values Total Accounts within the PID* Accounts supporting PID % Supporting the creation of the Tourism PID $1,308,974,180 $1,095,216,250 83.67% Area (SF) 14,809,812 10,287,496 69.46% Record Owners 106 73 68.87%
*60.0% of taxable value and 60.0% all record owners.
Office of Economic Development www.dallas-ecodev.org
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Tourism PID – Duration
Five years After the five year period, the district can be:
• Renewed – following same petition process • Refined – following same petition process • Dissolved – no action taken to renew PID operations
New hotels may only be added to TPID upon renewal The TPID Board of Directors and the Hotel Association of North Texas have agreed not to oppose City utilizing provisions of Brimer Bill to fund other eligible venues in future (see Appendix D)
Office of Economic Development www.dallas-ecodev.org
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Tourism PID – Structure
Annually, Board of Directors is responsible for creating a budget that is subject to City Council’s approval. DCVB staff will act as the administrative entity that implements programs authorized by the TPID Board.
Office of Economic Development www.dallas-ecodev.org
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Tourism PID – Board of Directors
Oversight by ten member TPID Board of Directors appointed for a two year term and include the following representatives:
• Three (3) representatives from Dallas hotels with 1000+ rooms • Three (3) representatives from Dallas hotels with 300 – 999 rooms • Three (3) representatives from Dallas hotels with 100 – 299 rooms • One (1) ex-officio/non-voting representative from the Dallas Convention & Visitor’s Bureau (CEO) • Two of the nine voting members must represent hotels located within two miles of the Dallas Convention Center
The members are appointed from participants in the TPID
Office of Economic Development www.dallas-ecodev.org
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Tourism PID – Funds & Expenditures
Estimated to initially generate $10 million annually and produce average annual collections of $11.2 million over the five year term of the PID. The TPID Budget is contained in Appendix A. Funding will be used for the following expenditures: • Incentives - 50% of TPID budget used to provide incentives to bring more conventions, meetings and visitors to Dallas • Marketing - 45% of TPID budget allocated for marketing efforts • Administration - 5% of TPID budget dedicated for administrative expenses
• City’s costs related to collections fully recovered
Office of Economic Development www.dallas-ecodev.org
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Tourism PID – Oversight
TPID Board responsible for oversight of the district’s budget/service plan and any proposed changes to service plan on an annual basis. TPID budget and assessment rate must be approved annually by City Council
• Subsequent to City Council’s approval, TPID Board will oversee implementation of Service Plan
TPID will submit quarterly financial statements reviewed by City staff. Annual, independently audited, financial statements submitted to City staff for review.
Office of Economic Development www.dallas-ecodev.org
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Tourism PID – Recommendation/Benefits
Staff recommends authorization of Tourism PID Benefits to City
• • • • Estimated increase in Hotel Occupancy Tax (HOT) Revenues of $7M annually Estimated revenue of $700K on HOT on PID assessment (City share $375K) Increases amount of marketing/branding for Dallas at no direct cost to City Ability to fund Arts/Culture Marketing activities including hiring a cultural tourism manager within the DCVB, creation of advertising with a cultural tourism focus and encouragement for cultural tourism groups to seek funding for impactful events through TPID (see Appendix E).
Office of Economic Development www.dallas-ecodev.org
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Tourism PID – Recommendation/Benefits (cont)
Benefits to DCVB
• TPID will provide an average additional $11.2M in funds annually that can be utilized to further DCVB mission
Benefits to Convention Center
• • Provides Convention Center with $500,000 of annual support for maintenance (DCVB contract) Potential to increase convention business and related revenues
Office of Economic Development www.dallas-ecodev.org
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Tourism PID – Recommendation/Benefits (cont)
Benefits to Hotels
• • • Improved convention business will increase room occupancy and rates in all hotels Improved perception of Dallas as a tourism destination may increase the duration of visitor stays Increased Hotel Occupancy Tax revenue can lead to additional Convention Center improvements, and an increased level of marketing of Dallas as a Tourism Destination
Office of Economic Development www.dallas-ecodev.org
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Pending Items
City Council Agenda – May 23, 2012
• Call a Public Hearing for creation of the Tourism PID • Call a Public Hearing to set Tourism PID assessment rate
City Council Agenda – June 13, 2012
• Hold Public Hearing and consider creation of Tourism PID • Hold Public Hearing and consider setting Tourism PID assessment rate
Office of Economic Development www.dallas-ecodev.org
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Appendix A – TPID Proposed Budget/Service Plan
Office of Economic Development www.dallas-ecodev.org
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Appendix B - Dallas PID Policy
PIDs are governed by state law (Chapter 312). A City policy related to local administration of the PID program was originally adopted in December 2005 and last amended on October 28, 2009. Property owners petition the City to create a PID. City Council approval is required to create a PID. PID revenue is collected as part of the standard tax collection process. To date, all PID assessments are based on property value. Individual PIDs are governed by property owner elected boards and managed by a specifically formed non-profit organization or homeowners’ association.
Office of Economic Development www.dallas-ecodev.org
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Appendix B - Dallas PID Policy (cont)
State law requires that City Council annually adopt an updated PID Service Plan, hold a public hearing and set the PID assessment rate for each district for the upcoming year. To create a PID, property owners petition the City Council to adopt a special assessment on all property within PID boundaries for the purpose of improving services and infrastructure with the PID boundaries. For new PIDs and PID renewals, the City requires that Owners representing at least 60% of the value and 60% of all record Owners or 60% of land area support the creation of a new or renewing PID.
Office of Economic Development www.dallas-ecodev.org
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Appendix B - Dallas PID Policy (cont)
In new Single-Family PIDs, the City will require that Owners representing at least 66.7% of the value and 66.7% of all record Owners or 66.7% of land area support the creation of a new PID. In Dallas, PIDs are authorized for a period of no longer than seven (7) years with the option of renewal. The renewal process requires preparing a budget, service plan and assessment plan for the district and having property owners sign a petition supporting renewal of the PID.
Office of Economic Development www.dallas-ecodev.org
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Appendix B - Dallas PID Policy (cont)
A PID application for creating or renewing a PID shall include a section that clearly identifies the benefit of the PID to the affected property owners and to the city as a whole, an assessment plan, and also evidence of insurance. PID applications include a map and a legal or clear description of the property included in the District.
Office of Economic Development www.dallas-ecodev.org
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Appendix B - Dallas PID Policy (cont)
Most of the PIDs are in mixed-use districts but the PID policy allows for the establishment of PIDs in residential districts like Prestonwood. The PID Policy does NOT allow the creation of PID Districts in undeveloped subdivisions. PIDs are required to be self-sufficient and not adversely impact ordinary service delivery of the City. PIDs in Dallas will be allowed to fund any item provided by state law.
Office of Economic Development www.dallas-ecodev.org
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Appendix B - Dallas PID Policy (cont)
PID assessments are typically based on a set rate applied to total property value. The maximum PID assessment in Dallas shall be $0.15 per $100 valuation. PID assessments in the Tourism PID will be a set fee based on hotel collections on rooms. Administrative expenses, including costs for day to day City Staff administration, for a PID are limited to 15% of the total budget in any year.
Office of Economic Development www.dallas-ecodev.org
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Appendix B - Dallas PID Policy (cont)
A PID Service Plan shall contain procedures for the termination of the PID without imposing unintended costs on the City of Dallas. A PID cannot be dissolved without a petition from property owners and must be sufficient as for creation or renewal in accordance with Chapter 372, Section 372.005(b). All PID management entities are required to:
• Submit quarterly reports on activities and expenditures • Have an independent annual audit • Hold an annual open meeting with at least 2 weeks notice to all property owners for input on the budget and service plan
Office of Economic Development www.dallas-ecodev.org
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Appendix C – List of Hotels in TPID
Hotel Name Street No. Street Name Rooms
SHERATON DALLAS HILTON ANATOLE HOTEL HYATT REGENCY DALLAS OMNI DALLAS HOTEL RENAISSANCE DALLAS HOTEL FAIRMONT DALLAS WESTIN PARK CENTRAL HOTEL HILTON DALLAS LINCOLN CTR WESTIN GALERIA DALLAS ADOLPHUS HOTEL BUDGET SUITES OF AMERICA DALLAS MARRIOTT CITY CENTER STERLING HOTEL DALLAS CROWNE PLAZA HOTEL DALLAS MKT CNTR BUDGET SUITES OF AMERICA TX RADISSON DALLAS LOVE FIELD HOTEL MAGNOLIA HOTEL (THE) CROWNE PLAZA DOWNTOWN DALLAS DOUBLETREE HOTEL CAMPBELL CENTER RADISSON HOTEL-DALLAS CROWNE PLAZA SUITES #15517 BUDGET SUITES OF AMERICA EMBASSY SUITES DALLAS MARRIOTT SUITES
400 2201 300 555 2222 1717 12720 5410 13340 1321 8150 650 1055 7050 9519 1241 1401 1015 8250 6060 7800 10222 13131 2493
N OLIVE ST N STEMMONS FWY REUNION BLVD LAMAR N STEMMONS FWY N. AKARD STREET MERIT DR LBJ FREEWAY DALLAS PKWY COMMERCE ST N STEMMONS FWY N PEARL ST REGAL ROW N STEMMONS FWY FOREST LN W MOCKINGBIRD LN COMMERCE ST ELM ST N CENTRAL EXPY N CENTRAL EXPY ALPHA RD N WALTON WALKER BLVD N CENTRAL EXPY STEMMONS FWY
1840 1620 1194 1001 556 545 545 500 432 421 408 407 360 354 348 348 330 304 300 300 295 282 279 266
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Office of Economic Development www.dallas-ecodev.org
Appendix C – List of Hotels in TPID
LE MERIDIEN DALLAS NORTH W DALLAS VICTORY SHERATON SUITES MARKET CENTER EMBASSY SUITES HOTEL RADISSON HOTEL WYNDHAM / HOLIDAY INN SELECT-LOVE EMBASSY SUITE-MARKET CNTR WILSON WORLD HOTEL DOUBLETREE HOTEL MARKET CENTER HILTON DALLAS PARK CITIES ROSEWOOD CRESCENT HOTEL RITZ-CARLTON DALLAS WARWICK MELROSE DALLAS REGAL ROW HOSPITALITY LLC HOLIDAY INN DALLAS MARKET CENTER MCM ELEGANTE HOTEL PALOMAR HOTEL DALLAS WYNDHAM DALLAS PARK CENTRAL ALOFT DALLAS DOWNTOWN RAMADA PARK CENTRAL HOTEL MOTEL 6/STUDIO 6 #6035 COURTYARD BY MARRIOTT HOLIDAY INN ARISTOCRAT HOTEL THE STONELEIGH HOTEL & SPA HOTEL MARRIOTT HYATT SUMMERFIELD SUITES DALLAS/LINCOLN 13402 2440 2101 3880 11350 3300 2727 2325 2015 5954 400 2121 3015 1575 4500 2330 5600 8051 1033 8102 2395 2150 1933 2927 10325 8221 NOEL RD VICTORY PARK LN N STEMMONS FWY W NORTHWEST HWY LBJ FREEWAY W MOCKINGBIRD LN N STEMMONS FWY N STEMMONS FWY MARKET CENTER BLVD LUTHER LANE CRESCENT CT MCKINNEY AVE OAK LAWN AVE REGAL ROW HARRY HINES BLVD W NORTHWEST HWY N CENTRAL EXPY LBJ FREEWAY YOUNG STREET LBJ FREEWAY STEMMONS TRL MARKET CENTER BLVD MAIN ST MAPLE AVE N CENTRAL EXPY N CENTRAL EXPY 258 252 251 248 244 244 244 240 227 224 220 218 205 203 200 199 198 194 193 192 188 184 172 170 160 155
Office of Economic Development www.dallas-ecodev.org
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Appendix C – List of Hotels in TPID
RESIDENCE INN DALLAS PARK CENTRAL CANDLEWOOD SUITES DALLAS EMBASSY SUITES SPRING HILL SUITES HOTEL ZAZA COURTYARD DALLAS NW HWY AT STEMMONS DYNASTY HOTEL GROUP LP MARRIOTT #1M4 THE MANSION ON TURTLE CRK MARRIOTT RESIDENCE 312 HYATT SUMMERFIELD DOWNTOWN DALLAS MOTEL 6 HOMESTEAD STUDIO SUITES # 9709 HOMEWOOD SUITES HOT # 69835 SUN SUITES OF DALLAS SUPER 8 MOTEL EXTENDED STAY HOTELS # 9835 CANDLEWOOD SUITES GALLERIA #00663 INTOWN SUITES BROOK RIVER HOMESTEAD STUDIO SUITES # 9708 BRADFORD HOMESUITES ECONO LODGE / BNKRUPTCY LA QUINTA MOTOR INN #706 MOTEL 6 #1339 STUDIO SIX (6) HYATT PLACE DALLAS PARK CENTRAL 7642 7930 14021 1907 2332 2383 10326 2930 2821 6950 2914 12301 18470 2747 10477 9229 9019 13939 8201 12121 16060 1625 10001 4220 9801 12411 LBJ FREEWAY N STEMMONS FWY NOEL RD N LAMAR ST LEONARD ST STEMMONS TRL FINNELL ST FOREST LN TURTLE CREEK BLVD N STEMMONS FWY HARRY HINES BLVD N CENTRAL EXPY DALLAS PKWY N STEMMONS FWY METRIC DR JOHN W CARPENTER FWY VANTAGE POINT DR NOEL RD BROOKRIVER DR COIT RD DALLAS PKWY REGAL ROW N CENTRAL EXPY INDEPENDENCE DR ADLETA BLVD N CENTRAL EXPY 151 150 150 149 148 146 146 146 143 142 141 140 137 137 135 134 134 134 134 133 131 131 129 129 128 128
Office of Economic Development www.dallas-ecodev.org
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Appendix C – List of Hotels in TPID
BEST WESTERN EXECUTIVE INN JOULE HOTEL HYATT PLACE TEXAS MOTEL CORP ANCHOR MOTEL CANDLEWOOD SUITES NORTH DALLAS #00666 RED ROOF INN LA QUINTA INN AND SUITES HOTEL LAWRENCE INTOWN SUITES FOREST LANE HOMESTEAD STUDIO SUITES # 9707 DELUX INN FAIRFIELD INN MOTEL 6 EXTENDED STAY HOTELS STAYBRIDGE SUITES # 00860 HAMPTON INN KNIGHTS INN -- RED ROOF SUBURBAN EXTENDED STAY HOTEL MOTEL 6 LAMPLIGHTER MOTEL MARRIOTT RESIDENCE INN 315 HOLIDAY INN EXPRESS HOTEL & SUITES LA QUINTA MOTOR INN #709 LA QUINTA MOTOR INN #512 HOLIDAY INN EXPRESS HOTEL & SUITES HILTON GARDEN INN EMBASSY SUITES DALLAS UPTOWN HOMEWOOD SUITES AMERICA'S BEST VALUE INN 12670 1530 5229 10230 12525 13685 2421 302 9355 17425 9626 2110 2660 12270 7880 11069 1550 4150 8510 9001 10333 2287 8303 4440 6055 1610 2212 1025 10335 E NORTHWEST HWY MAIN SPRING VALLEY RD HARRY HINES BLVD GREENVILLE AVE N CENTRAL EXPY WALNUT HILL LANE S HOUSTON ST FOREST LN DALLAS PKWY HAWN FWY MARKET CENTER BLVD FOREST LANE GREENVILLE AVE ALPHA RD COMPOSITE DR EMPIRE CENTRAL DR INDEPENDENCE DR E R L THORNTON FWY E R L THORNTON FWY N CENTRAL EXPY W NORTHWEST HWY E R L THORNTON FWY N CENTRAL EXPY LBJ FREEWAY CEDAR SPRINGS RD MCKINNEY AVE ELM ST GARDNER RD 125 125 125 125 122 121 121 120 120 119 118 118 117 116 114 112 111 108 107 105 103 103 102 101 100 100 100 100 100
Office of Economic Development www.dallas-ecodev.org
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Appendix D – Resolution/Brimer Bill
Office of Economic Development www.dallas-ecodev.org
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Appendix E – Arts/DCVB Agreement
Office of Economic Development www.dallas-ecodev.org
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Economic Development Committee May 7, 2012
Office of Economic Development www.dallas-ecodev.org
1
Purpose
Provide the Economic Development Committee with a brief overview of the Tourism Public Improvement District (TPID) and its role in making Dallas a Top 5 tourism destination. Request approval for Council action on the following items
• May 23, 2012 - Call public hearings to be held on June 13, 2012 to consider creation of the TPID & set TPID assessment rate • June 13, 2012 - Hold public hearings and consider creation of the TPID & set TPID assessment rate
Office of Economic Development www.dallas-ecodev.org
2
Background - Public Improvement Districts (PIDs)
Public Improvement Districts (PIDs) are locally created districts that can be used to fund physical improvements or additional services within a defined area. Property owners pay a special annual assessment used to fund eligible PID expenditures The City of Dallas currently has nine PIDs located throughout the City: •
• • • Deep Ellum PID DID – Dallas Downtown Improvement District Knox Street PID Lake Highlands PID • • • • • Oak Lawn – Hi Line PID Prestonwood PID Southside PID Uptown PID and Vickery Meadow PID
A summary of the Dallas PID Policy is contained in Appendix B.
Office of Economic Development www.dallas-ecodev.org
3
Background – Special Purpose PIDs
State law modified in last legislative session to allow creation of PIDs with non-contiguous property.
• • Previously, state law required PIDs to be geographically contiguous Legislation allows establishment of PIDs for tourism-related purposes but not require the assessed properties to be geographically contiguous
Composed solely of hotels of 100 rooms or more. Primary focus is attracting conventions and group meetings. Allowed to fund any item provided by state law. Tourism PID would be the City’s first Special Purpose PID and first non-contiguous property PID.
Office of Economic Development www.dallas-ecodev.org
4
Background – TPID Map
There are just over 100+ room hotels located in Dallas. The largest concentrations of hotels meeting this criteria are in downtown Dallas, the Love Field area, the Stemmons Corridor (IH-35E) and the LBJ Corridor (IH-635). The map on this page shows concentrations of hotels in the proposed TPID. A complete list of 100+ room hotels is contained in Appendix C.
Office of Economic Development www.dallas-ecodev.org
5
Making Dallas a Top 5 Tourism Destination
Current funding for Dallas Convention & Visitor’s Bureau (DCVB) is below the amount being spent by competing cities. Here are current annual convention marketing expenditures by city:
• Dallas - $5.4M (increasing to $15M if this proposal adopted) • Las Vegas - $95.5M • Orlando - $35.9M • Atlanta - $11.3M • San Diego - $9.5M • San Antonio - $12.7M • Houston - $7.9M
Office of Economic Development www.dallas-ecodev.org
6
Making Dallas a Top 5 Tourism Destination
Twenty-five years ago, Dallas was among the top five destinations for meetings and conventions. Since then:
• Cities across country built comparable convention facilities • Cities built convention center hotels adjacent to facilities • Cities spent substantial money marketing themselves
For Dallas to regain its position as a Top Five Tourism Destination
• Aggressively market area/facilities to meeting planners • Aggressively market area to meeting attendees
Office of Economic Development www.dallas-ecodev.org
7
Making Dallas a Top 5 Tourism Destination
The increased funding is part of a program developed by the DCVB to make Dallas a Top 5 Tourism Destination. Dallas currently is ranked in the Top 10 destinations. Creation of Tourism PID initiated by local hotels and the DCVB to allow Dallas to:
• Provide adequate incentives to encourage organizations to bring large conferences, conventions and meetings to Dallas • Enhance marketing and incentive programs to help increase hotel stays within the City
The estimated annual budget of TPID will average $11.2M – to be used for marketing and incentives for convention attraction
Office of Economic Development www.dallas-ecodev.org
8
Tourism PID – Funding
Funding generated through a 2% assessment on hotel roomnights that are sold at Dallas hotels with 100 or more rooms The Tourism PID assessment would only include 2% fee collected from hotel guests Hotels will utilize schedule and process currently in place for payment of city hotel occupancy taxes to submit Tourism PID assessments to the City Upon implementation of Tourism PID, total assessment per hotel room night 15%:
• 13% - Hotel Occupancy Tax (7% to City; 6% to State) • 2% - TPID assessment fee
Office of Economic Development www.dallas-ecodev.org
9
Tourism PID – Creation Requirements
Petition Requirement
• Petition of support from owners representing at least 60% of total value of all properties meeting PID requirements (hotels with 100+ rooms) AND • Petition of support from EITHER at least 60% of property owners of all properties meeting PID requirements OR at least 60% of the total area of properties meeting PID requirements (hotels with 100+ rooms). Applicant (DCVB) submitted formal application containing:
• • • Petitions Service Plan for TPID Budget & Supporting Information
Office of Economic Development www.dallas-ecodev.org
10
Tourism PID – Creation Requirements
Petition Received exceed minimum requirements • Petitions received reflected support for the Tourism PID property owners representing:
• 83.7% of Property Value • 68.9% of Total Property Owners • 69.5% of Total Land Area
Tourism PID Property Values Total Accounts within the PID* Accounts supporting PID % Supporting the creation of the Tourism PID $1,308,974,180 $1,095,216,250 83.67% Area (SF) 14,809,812 10,287,496 69.46% Record Owners 106 73 68.87%
*60.0% of taxable value and 60.0% all record owners.
Office of Economic Development www.dallas-ecodev.org
11
Tourism PID – Duration
Five years After the five year period, the district can be:
• Renewed – following same petition process • Refined – following same petition process • Dissolved – no action taken to renew PID operations
New hotels may only be added to TPID upon renewal The TPID Board of Directors and the Hotel Association of North Texas have agreed not to oppose City utilizing provisions of Brimer Bill to fund other eligible venues in future (see Appendix D)
Office of Economic Development www.dallas-ecodev.org
12
Tourism PID – Structure
Annually, Board of Directors is responsible for creating a budget that is subject to City Council’s approval. DCVB staff will act as the administrative entity that implements programs authorized by the TPID Board.
Office of Economic Development www.dallas-ecodev.org
13
Tourism PID – Board of Directors
Oversight by ten member TPID Board of Directors appointed for a two year term and include the following representatives:
• Three (3) representatives from Dallas hotels with 1000+ rooms • Three (3) representatives from Dallas hotels with 300 – 999 rooms • Three (3) representatives from Dallas hotels with 100 – 299 rooms • One (1) ex-officio/non-voting representative from the Dallas Convention & Visitor’s Bureau (CEO) • Two of the nine voting members must represent hotels located within two miles of the Dallas Convention Center
The members are appointed from participants in the TPID
Office of Economic Development www.dallas-ecodev.org
14
Tourism PID – Funds & Expenditures
Estimated to initially generate $10 million annually and produce average annual collections of $11.2 million over the five year term of the PID. The TPID Budget is contained in Appendix A. Funding will be used for the following expenditures: • Incentives - 50% of TPID budget used to provide incentives to bring more conventions, meetings and visitors to Dallas • Marketing - 45% of TPID budget allocated for marketing efforts • Administration - 5% of TPID budget dedicated for administrative expenses
• City’s costs related to collections fully recovered
Office of Economic Development www.dallas-ecodev.org
15
Tourism PID – Oversight
TPID Board responsible for oversight of the district’s budget/service plan and any proposed changes to service plan on an annual basis. TPID budget and assessment rate must be approved annually by City Council
• Subsequent to City Council’s approval, TPID Board will oversee implementation of Service Plan
TPID will submit quarterly financial statements reviewed by City staff. Annual, independently audited, financial statements submitted to City staff for review.
Office of Economic Development www.dallas-ecodev.org
16
Tourism PID – Recommendation/Benefits
Staff recommends authorization of Tourism PID Benefits to City
• • • • Estimated increase in Hotel Occupancy Tax (HOT) Revenues of $7M annually Estimated revenue of $700K on HOT on PID assessment (City share $375K) Increases amount of marketing/branding for Dallas at no direct cost to City Ability to fund Arts/Culture Marketing activities including hiring a cultural tourism manager within the DCVB, creation of advertising with a cultural tourism focus and encouragement for cultural tourism groups to seek funding for impactful events through TPID (see Appendix E).
Office of Economic Development www.dallas-ecodev.org
17
Tourism PID – Recommendation/Benefits (cont)
Benefits to DCVB
• TPID will provide an average additional $11.2M in funds annually that can be utilized to further DCVB mission
Benefits to Convention Center
• • Provides Convention Center with $500,000 of annual support for maintenance (DCVB contract) Potential to increase convention business and related revenues
Office of Economic Development www.dallas-ecodev.org
18
Tourism PID – Recommendation/Benefits (cont)
Benefits to Hotels
• • • Improved convention business will increase room occupancy and rates in all hotels Improved perception of Dallas as a tourism destination may increase the duration of visitor stays Increased Hotel Occupancy Tax revenue can lead to additional Convention Center improvements, and an increased level of marketing of Dallas as a Tourism Destination
Office of Economic Development www.dallas-ecodev.org
19
Pending Items
City Council Agenda – May 23, 2012
• Call a Public Hearing for creation of the Tourism PID • Call a Public Hearing to set Tourism PID assessment rate
City Council Agenda – June 13, 2012
• Hold Public Hearing and consider creation of Tourism PID • Hold Public Hearing and consider setting Tourism PID assessment rate
Office of Economic Development www.dallas-ecodev.org
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Appendix A – TPID Proposed Budget/Service Plan
Office of Economic Development www.dallas-ecodev.org
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Appendix B - Dallas PID Policy
PIDs are governed by state law (Chapter 312). A City policy related to local administration of the PID program was originally adopted in December 2005 and last amended on October 28, 2009. Property owners petition the City to create a PID. City Council approval is required to create a PID. PID revenue is collected as part of the standard tax collection process. To date, all PID assessments are based on property value. Individual PIDs are governed by property owner elected boards and managed by a specifically formed non-profit organization or homeowners’ association.
Office of Economic Development www.dallas-ecodev.org
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Appendix B - Dallas PID Policy (cont)
State law requires that City Council annually adopt an updated PID Service Plan, hold a public hearing and set the PID assessment rate for each district for the upcoming year. To create a PID, property owners petition the City Council to adopt a special assessment on all property within PID boundaries for the purpose of improving services and infrastructure with the PID boundaries. For new PIDs and PID renewals, the City requires that Owners representing at least 60% of the value and 60% of all record Owners or 60% of land area support the creation of a new or renewing PID.
Office of Economic Development www.dallas-ecodev.org
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Appendix B - Dallas PID Policy (cont)
In new Single-Family PIDs, the City will require that Owners representing at least 66.7% of the value and 66.7% of all record Owners or 66.7% of land area support the creation of a new PID. In Dallas, PIDs are authorized for a period of no longer than seven (7) years with the option of renewal. The renewal process requires preparing a budget, service plan and assessment plan for the district and having property owners sign a petition supporting renewal of the PID.
Office of Economic Development www.dallas-ecodev.org
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Appendix B - Dallas PID Policy (cont)
A PID application for creating or renewing a PID shall include a section that clearly identifies the benefit of the PID to the affected property owners and to the city as a whole, an assessment plan, and also evidence of insurance. PID applications include a map and a legal or clear description of the property included in the District.
Office of Economic Development www.dallas-ecodev.org
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Appendix B - Dallas PID Policy (cont)
Most of the PIDs are in mixed-use districts but the PID policy allows for the establishment of PIDs in residential districts like Prestonwood. The PID Policy does NOT allow the creation of PID Districts in undeveloped subdivisions. PIDs are required to be self-sufficient and not adversely impact ordinary service delivery of the City. PIDs in Dallas will be allowed to fund any item provided by state law.
Office of Economic Development www.dallas-ecodev.org
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Appendix B - Dallas PID Policy (cont)
PID assessments are typically based on a set rate applied to total property value. The maximum PID assessment in Dallas shall be $0.15 per $100 valuation. PID assessments in the Tourism PID will be a set fee based on hotel collections on rooms. Administrative expenses, including costs for day to day City Staff administration, for a PID are limited to 15% of the total budget in any year.
Office of Economic Development www.dallas-ecodev.org
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Appendix B - Dallas PID Policy (cont)
A PID Service Plan shall contain procedures for the termination of the PID without imposing unintended costs on the City of Dallas. A PID cannot be dissolved without a petition from property owners and must be sufficient as for creation or renewal in accordance with Chapter 372, Section 372.005(b). All PID management entities are required to:
• Submit quarterly reports on activities and expenditures • Have an independent annual audit • Hold an annual open meeting with at least 2 weeks notice to all property owners for input on the budget and service plan
Office of Economic Development www.dallas-ecodev.org
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Appendix C – List of Hotels in TPID
Hotel Name Street No. Street Name Rooms
SHERATON DALLAS HILTON ANATOLE HOTEL HYATT REGENCY DALLAS OMNI DALLAS HOTEL RENAISSANCE DALLAS HOTEL FAIRMONT DALLAS WESTIN PARK CENTRAL HOTEL HILTON DALLAS LINCOLN CTR WESTIN GALERIA DALLAS ADOLPHUS HOTEL BUDGET SUITES OF AMERICA DALLAS MARRIOTT CITY CENTER STERLING HOTEL DALLAS CROWNE PLAZA HOTEL DALLAS MKT CNTR BUDGET SUITES OF AMERICA TX RADISSON DALLAS LOVE FIELD HOTEL MAGNOLIA HOTEL (THE) CROWNE PLAZA DOWNTOWN DALLAS DOUBLETREE HOTEL CAMPBELL CENTER RADISSON HOTEL-DALLAS CROWNE PLAZA SUITES #15517 BUDGET SUITES OF AMERICA EMBASSY SUITES DALLAS MARRIOTT SUITES
400 2201 300 555 2222 1717 12720 5410 13340 1321 8150 650 1055 7050 9519 1241 1401 1015 8250 6060 7800 10222 13131 2493
N OLIVE ST N STEMMONS FWY REUNION BLVD LAMAR N STEMMONS FWY N. AKARD STREET MERIT DR LBJ FREEWAY DALLAS PKWY COMMERCE ST N STEMMONS FWY N PEARL ST REGAL ROW N STEMMONS FWY FOREST LN W MOCKINGBIRD LN COMMERCE ST ELM ST N CENTRAL EXPY N CENTRAL EXPY ALPHA RD N WALTON WALKER BLVD N CENTRAL EXPY STEMMONS FWY
1840 1620 1194 1001 556 545 545 500 432 421 408 407 360 354 348 348 330 304 300 300 295 282 279 266
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Office of Economic Development www.dallas-ecodev.org
Appendix C – List of Hotels in TPID
LE MERIDIEN DALLAS NORTH W DALLAS VICTORY SHERATON SUITES MARKET CENTER EMBASSY SUITES HOTEL RADISSON HOTEL WYNDHAM / HOLIDAY INN SELECT-LOVE EMBASSY SUITE-MARKET CNTR WILSON WORLD HOTEL DOUBLETREE HOTEL MARKET CENTER HILTON DALLAS PARK CITIES ROSEWOOD CRESCENT HOTEL RITZ-CARLTON DALLAS WARWICK MELROSE DALLAS REGAL ROW HOSPITALITY LLC HOLIDAY INN DALLAS MARKET CENTER MCM ELEGANTE HOTEL PALOMAR HOTEL DALLAS WYNDHAM DALLAS PARK CENTRAL ALOFT DALLAS DOWNTOWN RAMADA PARK CENTRAL HOTEL MOTEL 6/STUDIO 6 #6035 COURTYARD BY MARRIOTT HOLIDAY INN ARISTOCRAT HOTEL THE STONELEIGH HOTEL & SPA HOTEL MARRIOTT HYATT SUMMERFIELD SUITES DALLAS/LINCOLN 13402 2440 2101 3880 11350 3300 2727 2325 2015 5954 400 2121 3015 1575 4500 2330 5600 8051 1033 8102 2395 2150 1933 2927 10325 8221 NOEL RD VICTORY PARK LN N STEMMONS FWY W NORTHWEST HWY LBJ FREEWAY W MOCKINGBIRD LN N STEMMONS FWY N STEMMONS FWY MARKET CENTER BLVD LUTHER LANE CRESCENT CT MCKINNEY AVE OAK LAWN AVE REGAL ROW HARRY HINES BLVD W NORTHWEST HWY N CENTRAL EXPY LBJ FREEWAY YOUNG STREET LBJ FREEWAY STEMMONS TRL MARKET CENTER BLVD MAIN ST MAPLE AVE N CENTRAL EXPY N CENTRAL EXPY 258 252 251 248 244 244 244 240 227 224 220 218 205 203 200 199 198 194 193 192 188 184 172 170 160 155
Office of Economic Development www.dallas-ecodev.org
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Appendix C – List of Hotels in TPID
RESIDENCE INN DALLAS PARK CENTRAL CANDLEWOOD SUITES DALLAS EMBASSY SUITES SPRING HILL SUITES HOTEL ZAZA COURTYARD DALLAS NW HWY AT STEMMONS DYNASTY HOTEL GROUP LP MARRIOTT #1M4 THE MANSION ON TURTLE CRK MARRIOTT RESIDENCE 312 HYATT SUMMERFIELD DOWNTOWN DALLAS MOTEL 6 HOMESTEAD STUDIO SUITES # 9709 HOMEWOOD SUITES HOT # 69835 SUN SUITES OF DALLAS SUPER 8 MOTEL EXTENDED STAY HOTELS # 9835 CANDLEWOOD SUITES GALLERIA #00663 INTOWN SUITES BROOK RIVER HOMESTEAD STUDIO SUITES # 9708 BRADFORD HOMESUITES ECONO LODGE / BNKRUPTCY LA QUINTA MOTOR INN #706 MOTEL 6 #1339 STUDIO SIX (6) HYATT PLACE DALLAS PARK CENTRAL 7642 7930 14021 1907 2332 2383 10326 2930 2821 6950 2914 12301 18470 2747 10477 9229 9019 13939 8201 12121 16060 1625 10001 4220 9801 12411 LBJ FREEWAY N STEMMONS FWY NOEL RD N LAMAR ST LEONARD ST STEMMONS TRL FINNELL ST FOREST LN TURTLE CREEK BLVD N STEMMONS FWY HARRY HINES BLVD N CENTRAL EXPY DALLAS PKWY N STEMMONS FWY METRIC DR JOHN W CARPENTER FWY VANTAGE POINT DR NOEL RD BROOKRIVER DR COIT RD DALLAS PKWY REGAL ROW N CENTRAL EXPY INDEPENDENCE DR ADLETA BLVD N CENTRAL EXPY 151 150 150 149 148 146 146 146 143 142 141 140 137 137 135 134 134 134 134 133 131 131 129 129 128 128
Office of Economic Development www.dallas-ecodev.org
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Appendix C – List of Hotels in TPID
BEST WESTERN EXECUTIVE INN JOULE HOTEL HYATT PLACE TEXAS MOTEL CORP ANCHOR MOTEL CANDLEWOOD SUITES NORTH DALLAS #00666 RED ROOF INN LA QUINTA INN AND SUITES HOTEL LAWRENCE INTOWN SUITES FOREST LANE HOMESTEAD STUDIO SUITES # 9707 DELUX INN FAIRFIELD INN MOTEL 6 EXTENDED STAY HOTELS STAYBRIDGE SUITES # 00860 HAMPTON INN KNIGHTS INN -- RED ROOF SUBURBAN EXTENDED STAY HOTEL MOTEL 6 LAMPLIGHTER MOTEL MARRIOTT RESIDENCE INN 315 HOLIDAY INN EXPRESS HOTEL & SUITES LA QUINTA MOTOR INN #709 LA QUINTA MOTOR INN #512 HOLIDAY INN EXPRESS HOTEL & SUITES HILTON GARDEN INN EMBASSY SUITES DALLAS UPTOWN HOMEWOOD SUITES AMERICA'S BEST VALUE INN 12670 1530 5229 10230 12525 13685 2421 302 9355 17425 9626 2110 2660 12270 7880 11069 1550 4150 8510 9001 10333 2287 8303 4440 6055 1610 2212 1025 10335 E NORTHWEST HWY MAIN SPRING VALLEY RD HARRY HINES BLVD GREENVILLE AVE N CENTRAL EXPY WALNUT HILL LANE S HOUSTON ST FOREST LN DALLAS PKWY HAWN FWY MARKET CENTER BLVD FOREST LANE GREENVILLE AVE ALPHA RD COMPOSITE DR EMPIRE CENTRAL DR INDEPENDENCE DR E R L THORNTON FWY E R L THORNTON FWY N CENTRAL EXPY W NORTHWEST HWY E R L THORNTON FWY N CENTRAL EXPY LBJ FREEWAY CEDAR SPRINGS RD MCKINNEY AVE ELM ST GARDNER RD 125 125 125 125 122 121 121 120 120 119 118 118 117 116 114 112 111 108 107 105 103 103 102 101 100 100 100 100 100
Office of Economic Development www.dallas-ecodev.org
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Appendix D – Resolution/Brimer Bill
Office of Economic Development www.dallas-ecodev.org
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Appendix E – Arts/DCVB Agreement
Office of Economic Development www.dallas-ecodev.org
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