STRATEGIC PRIORITY: Economic and Neighborhood Vitality
AGENDA DATE: September 11, 2019
COUNCIL DISTRICT(S): 2, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14
DEPARTMENT: Office of Economic Development
EXECUTIVE: Michael Mendoza
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SUBJECT
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Authorize the fourth amendment to the City of Dallas Public Improvement District (PID) Policy for the creation, renewal, administration and management of PIDs in accordance with the provisions of Chapter 372 of the Texas Local Government Code to allow Tourism Public Improvement District (District) boundary changes in accordance with House Bill 1136 legislation, which was approved this year, allowing the City to include property in a hotel public improvement district if such property could have been included in the District without violating the petition thresholds when the District was created, for the purpose of providing supplemental public services to be funded by assessments on Dallas hotels with 100 or more rooms - Financing: No cost consideration to the City (see Fiscal Information)
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BACKGROUND
The City of Dallas first adopted a PID Policy on December 14, 2005. The City’s PID policy provides uniform rules and guidelines related to the creation of PIDs, PID signature and petition requirements, and PID reporting and financial accountability standards critical to ensuring the fair, uniform, and efficient and management and oversight of PIDs in Dallas.
The City’s current PID policy only permits the addition of new hotels to the District boundary as part of a petition renewal or early repetition process. This proposed amendment would allow new hotels to be added to the boundaries of the District, in accordance with new state House Bill 1316 legislation and Chapter 372 of the Texas Local Government Code. Per House Bill 1316, the governing body of municipalities may add and levy hotel properties to the boundary of an existing hotel PID without requiring their approval on the original hotel PID petition if such property could have been included in the hotel PID without violating the petition thresholds when the hotel PID was created.
By expanding the District boundaries, the City will be able to formally exercise the authority granted by House Bill 1136 to collect funds from designated hotels with over 100 rooms who are voluntarily paying the District assessment as identified by staff during their annual review of the Tourism PID Assessment Roll received by Visit Dallas.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On December 14, 2005, City Council authorized the adoption of the City of Dallas PID Policy for the creation, renewal, administration and management of public improvement districts by Resolution No. 05-3539.
On June 25, 2008, City Council authorized the first amendment to the City of Dallas PID Policy by Resolution No. 08-1782.
On October 28, 2009, City Council authorized second amendment to the City of Dallas PID Policy by Resolution No. 09-2620.
On October 23, 2013, City Council authorized third amendment to the City of Dallas PID Policy by Resolution No. 13-1825.
City Council was briefed by memorandum on August 23, 2019, regarding the proposed boundary expansion of the Tourism PID and hold a public hearing related to proposed Tourism PID expansion on September 11, 2019.
FISCAL INFORMATION
No cost consideration to the City. For designated hotel properties, the total cost of the services and improvements to be provided shall be apportioned at a rate of 2 percent of room-nights sold at qualifying hotels located within the District territory subject to the collective total for the renewal period.