Tourism Grant Program and Hotel Occupancy Tax Funding

Tourism Grant Program and Hotel Occupancy Tax Funding is sponsored by City of Odessa. The City of Odessa's Tourism Grant Program provides funding for qualifying programs and events that enhance tourism and increase hotel/motel usage in Odessa.

**Tourism Grant Program and Hotel Occupancy Tax Funding Guidelines** The City of Odessa's Tourism Grant Program provides funding to enhance qualifying programs and events, which will increase tourism and hotel/motel usage in Odessa. By law of the State of Texas, the City of Odessa collects a Hotel Occupancy Tax (HOT) from hotels, short-term rentals, bed and breakfasts, and other lodging facilities.

Under state law, the revenue from the HOT Funds may be used only to directly promote tourism and enhance the convention and hotel industry. Chapter 351 of the Tax Code states that the use of HOT Funds is limited to: 1. Convention Centers and Visitor Information Centers.

The acquisition of sites for the construction, improvement, enlarging, equipping, repairing, operation, and maintenance of convention center facilities or visitor information centers, or both; 2. Registration of Convention Delegates: the furnishing of facilities, personnel, and materials for the registration of convention delegates or registrants; 3.

Advertising, solicitations, and promotions that directly promote tourism and the hotel and convention industry: advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrations to the municipality or its vicinity; 4.

Promotion of the arts that directly promote tourism and the hotel and convention industry: that the encouragement, promotion, improvement, and application of the arts, including the instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture photography, graphic and craft arts, motion picture, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution and exhibition of these major art forms; 5.

Historical restoration and preservation activities that directly promote tourism and the hotel and convention industry: historical restoration and preservation projects or activities, or advertising and conducting solicitation and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums; 6.

Sporting event expenses that substantially increase economic activity at hotels: expenses, including promotional expenses, directly related to a sporting event in which the majority of participants are tourists. The event must substantially increase economic activity at hotels within the city or its vicinity. 7.

Funding transportation systems for transporting tourists from hotels to and near the city to any of the following destinations: 1. The commercial center of the City. 2.

A convention center in the City. 3. Other hotels in or near the City; or 4.

Tourist attractions in or near the City. 8. Signage directing tourists to sights and attractions that are visited frequently by hotel guests in the municipality.

## **Eligibi****lity and Priority for Hotel Tax Funds** The City of Odessa collects a Hotel Occupancy Tax (HOT) from hotels, motels, short-term rentals, and bed and breakfasts. The use of HOT Funds revenue is limited to expenditures that directly enhance and promote tourism and the convention and hotel industry.

Priority will be given to those events and entities based on their ability to generate overnight visitors and tourism revenue to Odessa. Funding requests should not exceed 25% of the estimated gross hotel night revenue expected to be generated or sustained by the event. If an event, project, or program will not generate trackable hotel night activity, it is not eligible for receipt of Hotel Occupancy Tax Funds.

Events can prove this potential to generate overnight visitors by: * Historic information on the number of hotel room nights used during previous years of the same events; * Current information on the size of a room block that has been reserved at area hotels to accommodate anticipated overnight guests attending the event, requesting Hotel Tax Funds.

* Historical information on the number of guests at hotel or other lodging facilities that attended the funded event; and/or * Providing examples of marketing programs and activities that are likely to generate and encourage overnight visitors to Odessa lodging properties.

## **City Policy and HOT Funds Grant Application Process** The HOT Funds Advisory Board of the City of Odessa accepts applications from organizations and businesses during a defined application period. The application period will be announced by the City each year. Grants awarded during the defined application and approval process have an implementation date of October 1 st following the grant approvals.

Applicants who can’t justify a request for the maximum amount are advised to request only an amount for which they may qualify. 1. To be considered for HOT Funds, applicants must complete the application, include the required attachments, and deliver the complete application packet to the City of Odessa by the application deadline.

2. Applications will be reviewed by the HOT Funds Advisory Board for completeness and considered at the earliest possible regularly scheduled meeting. The applicant (or a suitable designee) will be notified one week prior to the Board meeting of the time and place to present their application.

Applicants will be expected to present their application to the Board. 3. Requests approved by the HOT Funds Advisory Board will be presented as recommendations to the City Council for official approval during the adoption of the City’s annual budget.

The applicant will be notified by email of the Advisory Board’s preliminary recommendations in late May. Final awards will be determined in September and communicated to the applicant. Contract distribution for the awards will follow the Council’s official decision.

## **Use of Revenues from the Event** A portion of the revenues from any event and/or project receiving funding assistance from the Hotel Occupancy Tax Funds should be channeled back into the future costs of operating that same event or the continued operation of the project. Applicants are on notice that documentation of how funds were spent must reflect actual costs and be supported by proofs of payment.

The Post-Event Report and proofs of payment must show receipts that reflect actual monies paid. HOT Funds will be paid based on proof of payment. As a general rule, all funding requests should be fifty percent or less of the applicant’s total projected revenue from the event/program.

All applicants must submit complete financial statements, including a profit/loss statement, income statement, and balance sheet from the most current year. A proposed event or project budget, including projected revenue and expenses, along with projected revenue and expenses from any previous years’ events, must be submitted with the application. HOT funding may be paid out in two payments.

Fifty percent (50%) of an awarded HOT Grant may be paid prior to the event by submitting an invoice for the first half of the awarded amount to the City’s Finance Director after initial Board approval. The remaining fifty percent (50%) may be submitted for payment by invoice along with the Post-Event Report documentation.

Applicants may choose to receive one full payment for the total amount of the awarded funding, payable after receipt of the completed approved Post-Event Report. Invoices may be submitted to the City of Odessa for the appropriate amount by emailing the Director of Finance. Complete documentation and invoices will be submitted to the appropriate departments for approval and processing.

The complete Post-Event Report is due within 60 days of the event/project/program completion. If the complete Post-Event Report and final invoice are not submitted within 60 days from the event date, the entity approved for funding forfeits the remaining payment. Any promotional materials (brochures, website, advertisements, event sponsor signage, etc.) using HOT Funds must include the City of Odessa logo website as appropriate.

Contact the City's Communications Office and Discover Odessa to obtain the correct brand assets to use for each promotional item. The City encourages event organizers to consider partnership agreements with other applicants to promote programs and events. Cooperation between entities can result in more effective use of funds, and a list of entities is available from the City of Odessa upon request.

## **Use of Local Vendors** Event organizers are encouraged to patronize Odessa businesses for food, supplies, materials, printing, etc. A list of local vendors is available upon request.

## **Supplemental Information** Submit the following documents along with your application: * Samples of advertising planned and copies of any marketing from previous events * Schedule of activities or events relating to the proposed event/project * Last fiscal year’s financial statement (profit and loss statement) for your organization as a whole * Your organization’s budget for the current year; a copy of the 501 (C) (3) Internal Revenue Service documentation letter, if applicable