PILLAR: Growing
AGENDA DATE: August 12, 2026
COUNCIL DISTRICT(S): 1, 2, 3, 5, 6, 7, 9, 10, 11, 12, 13, 14
DEPARTMENT: Office of Economic Development
PRIORITY: Targeted Economic Growth
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SUBJECT
Title
Authorize a public hearing to be held on August 25, 2026 to receive comments concerning: (1) the proposed levy of assessment for the Dallas Tourism Public Improvement District (“District”) in accordance with Chapter 372 of the Texas Local Government Code (“Public Improvement District Act” or “Act”), for the purpose of providing supplemental public services to be funded by special assessments on Dallas hotels with 100 or more rooms; and, at the close of the public hearing on August 25, 2026, (2) consider approval of an ordinance (a) levying a special assessment on Dallas hotels with 100 or more rooms for services and improvements to be provided during FY 2026-27; (b) establishing charges and liens against the property in the District and against the property owners thereof; (c) providing for the collection of the 2026 assessment; (d) requiring City staff to, not later than seven days after the City Council’s approval of the ordinance and FY 2026-27 Service Plan, file a copy of the approved Service Plan with the Dallas County Clerk; and (e) providing an effective date - Financing: This action has no cost consideration to the City (see Fiscal Information)
*In alignment with Economic Development Incentive Policy.
Body
BACKGROUND
Annually, the City Council calls and holds a public hearing to consider the proposed assessment for property in the District and authorizes the Service Plan for the District. This action calls for a public hearing to be held on August 25, 2026 during which any owner of property located within the District may speak for or against the District’s annual Service Plan and assessment, as required by the Act (Chapter 372 of the Texas Local Government Code). After hearing and passing on objections, the City Council may consider an ordinance levying a special assessment on District property.
As the entity with which the City contracts to manage the District, Dallas Tourism Public Improvement District Corporation (DTPIDC) provided City staff with the District’s proposed FY 2026-27 Service Plan and 2026 Assessment Plan for review. Staff found the services and improvements to be advisable and recommends approval, subject to the public hearing.
The proposed assessment values provided herein are preliminary.
The District Service Plan consists of:
(a) Nature of the Services and Improvements. The purpose of the District is to supplement and enhance services provided within the District but not to replace or supplant existing City services provided within the District. The general nature of the proposed services and improvements to be performed by the District includes, but is not limited to: incentives and sales efforts, marketing (promotion/advertising), site visits and familiarization tours, event funding application pool, and related expenses incurred in establishing, administering, and operating the District as authorized by the Act.
(b) Estimated Cost of the Services and Improvements. During the next five-year period, the estimated annual cost of the improvements and services provided by the District is expected to range from a low of $20,789,368.00 in fiscal year (FY) 2030 and to a high of $26,630,205.00 in FY 2031. The total estimated net assessments to be collected during the next five-year period is approximately $108,673,447.00. The District shall incur no bonded indebtedness.
(c) Boundaries. The boundaries of the District are located within the city of Dallas, Dallas County, Texas and City of Dallas, Collin County, Texas. The boundaries of the District are attached to the resolution as shown in Exhibit A and shall solely include non-contiguous hotel properties with 100 or more rooms within the city of Dallas as shown on the attached list marked Exhibit A-1.
(d) Method of Assessment. The District assessment will be levied on hotels with 100 or more rooms (“qualifying hotels”) located within the District. The proposed cost of the services and improvements to be provided shall be assessed in a manner that results in imposing equal shares of the cost of the services qualifying on hotels that are similarly benefited. Under the Act, the apportionment of the cost of the services against property in the District territory must be made on the basis of special benefits accruing to the property because of the services and improvements provided. The total cost of the services and improvements to be provided shall be apportioned at a rate of two percent of room-nights sold at qualifying hotels located within the District territory until the collective total budget for the renewal period is reached. Accordingly, those qualifying hotels that sell more rooms will pay a greater portion of the assessment since those properties benefit more from the promotion and marketing services provided by the District. Rooms that are not subject to the City’s hotel occupancy tax shall not be included for the District assessment. The total assessment must be reviewed and approved annually by the City Council. The future cost of services and improvements that are budgeted in the FY 2026-27 Service Plan may be increased in amounts indicated in subsequent Service Plans, beyond the amount shown subject to the limitations on the assessment per occupied room and the aggregate amount approved in the petition.
(e) Apportionment of costs between the District and the Municipality as a Whole. The District shall continue to pay the cost of the supplemental services described in the Service Plan by assessment against the hotels with 100 or more rooms within the District, including City-owned qualifying hotels located within the District territory, such as the Omni Hotel.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 13, 2012, the City Council authorized the creation of the Dallas Tourism Public Improvement District for a period of five years, in accordance with the Public Improvement District Assessment Act (the “Act”), and found that the District promoted the interests of the City and conferred a special benefit to the hotels within the District by providing targeted marketing and promotional services intended to increase hotel occupancy and revenue. The City Council designated the DTPIDC as the management entity for the District, authorized a contract for management services between the City, DTPIDC, and the Dallas Convention and Visitors Bureau (“DCVB”), and approved the District Service Plan and annual updates by Resolution No. 12-1581.
On August 10, 2016, the City Council authorized the renewal of the District for a period of 13 years and designated DTPIDC as the management entity for the District by Resolution No. 16-1250.
On September 14, 2016, the City Council authorized an ordinance approving and adopting the District’s final 2017 Service Plan, 2016 Assessment Plan and 2016 Assessment Roll by Resolution No. 16-1505; and Ordinance No. 30210.
On September 13, 2017, the City Council authorized an ordinance approving and adopting the District’s final 2018 Service Plan, 2017 Assessment Plan and 2017 Assessment Roll by Resolution No. 17-1492; and Ordinance No. 30646.
On September 12, 2018, the City Council authorized an ordinance approving and adopting the District’s final 2019 Service Plan, 2018 Assessment Plan and 2018 Assessment Roll by Resolution No. 18-1322; and Ordinance No. 30987.
On September 11, 2019, the City Council authorized an ordinance approving and adopting the District’s final 2020 Service Plan, 2019 Assessment Plan and 2019 Assessment Roll by Resolution No. 19-1444; and Ordinance No. 31325.
On March 25, 2020, the City Council authorized the expansion of the District boundary to include 14 additional hotels by Resolution No. 20-0520.
On September 9, 2020, the City Council authorized an ordinance approving and adopting the District’s final 2021 Service Plan, 2020 Assessment Plan and 2020 Assessment Roll by Resolution No. 20-1358; and Ordinance No. 31634.
On August 25, 2021, the City Council authorized an ordinance approving and adopting the District’s final 2022 Service Plan, 2021 Assessment Plan, and 2021 Assessment Roll by Resolution No. 21-1415; and Ordinance No. 31972.
On June 8, 2022, the City Council authorized the expansion of the District boundary to include six (6) additional hotels by Resolution No. 22-0897.
On August 24, 2022, the City Council authorized an ordinance approving and adopting the District’s final 2023 Service Plan, 2022 Assessment Plan, and 2022 Assessment Roll by Resolution No. 22-1257; and Ordinance No. 32278.
On May 24, 2023, the City Council authorized the expansion of the District boundary to include two additional hotels by Resolution No. 23-0740.
On August 23, 2023, the City Council authorized an ordinance approving and adopting the District’s final 2024 Service Plan, 2023 Assessment Plan, and 2023 Assessment Roll by Resolution No. 23-1176; and Ordinance No. 32528.
On May 22, 2024, the City Council authorized the expansion of the District boundary to include one additional hotel by Resolution No. 24-0816.
On August 28, 2024, the City Council authorized an ordinance approving and adopting the District’s final 2025 Service Plan, 2024 Assessment Plan, and 2024 Assessment Roll by Resolution No. 24-1235; and Ordinance No. 32831.
On August 27, 2025, the City Council authorized an ordinance approving and adopting the District’s final 2026 Service Plan, 2025 Assessment Plan, and 2025 Assessment Roll by Resolution No. 25-1398; and Ordinance No. 33206.
On May 27, 2026, the City Council authorized the expansion of the District boundary to include four new hotels by Resolution No. 26-0930.
The Economic Development Committee was briefed by memorandum regarding this matter on August 3, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=15722123&GUID=F6F91E18-67AB-4323-9563-ED35EFD200BA>
FISCAL INFORMATION
This action has no cost consideration to the City. Assessments remitted from designated hotel properties to the City for disbursement to the District are deposited in a special revenue fund for disbursement to the District’s management entity on a monthly basis. Based on the District’s proposed FY 2026-27 Service Plan budget, fund disbursements for the upcoming year are estimated at $20,581,651.00. For designated hotel properties, the total cost of the services and improvements to be provided shall be apportioned at a rate of two percent of room-nights sold at qualifying hotels located within the District territory until the collective total budget for the renewal period is reached.