Item 09 - ACC and ACME_Commission Presentation.pdf — original pdf

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Convention Center + Public Benefit Austin Convention Center + AACME February 2, 2026 Hotel Occupancy Tax Collections for Culture How HOT Revenue Supports Arts and Culture in Austin ▪ HOT funds come from visitors who stay in hotels ▪ HOT funds do not come from local property taxes ▪ State law allows up to 15% each for Cultural Arts + Historic Preservation (30% cap total) ▪ Austin is already at the cap ▪ The only way to grow the cultural allocation is to grow the base HOT revenue 3 Tourism Funding + The Creative Economy More visitors in Austin More hotel stays More Hotel Occupancy Tax collections More Cultural/Music/Heritage Funding 4 What Cultural Funding Supports Today ▪ Annually, the City receives $50+ million in requests for HOT funding: ▪ 2024: $22M in grants awarded to 532 artists & cultural organizations ▪ 2023: $16M in grants awarded to 673 artists & cultural organizations ▪ 2021: $5.7M in grants awarded to 356 artists & cultural organizations ▪ 2020: $11M in grants awarded to 361 artists & cultural organizations ▪ 2019: $11M in grants awarded to 361 artists & cultural organizations ▪ Grant funds flow to: ➢Music + Live Music Fund ➢Heritage Preservation projects ➢Cultural Arts Grants ➢Creative business support ➢Festivals + event production ➢Public art initiatives 5 Benefits to Austin & the Creative Community What are the risks of not completing the Convention Center? ▪ Losing potentially millions in: o Cultural funding tied to visitor revenue o Sales tax revenue ▪ Thousands of lost jobs in the hospitality industry, including local restaurants, retail, and other entertainment venues ▪ nearly $18 million in Art in Public Places (AIPP) opportunities would cease to exist if construction is stopped 7 Beyond the Revenue: Additional Benefits ▪ HOT revenue supports: ➢ Artists ➢ Local entertainment venues, retail, restaurants ➢ Local business, including creative sector ➢ Nonprofits ➢ Community cultural organizations ➢ Residents + tourists (access/experience) ▪ What are other community benefits? ➢ Affordable or subsidized event and meeting space for community groups, cultural organizations, and creative practitioners. ➢ Increased programming partnerships, including festivals, showcases, and creative industry events. ➢ Expanded tourism activity, which supports local performers, vendors, hospitality workers, and cultural venues. ➢ Long-term stabilization for cultural funding streams ➢ Public art opportunities at the Convention Center site ➢ Increased national profile for Austin’s creative sectors ➢ Spillover visitation to events, museums, venues, districts 8 Summary Summary Redeveloped Convention Center → Increases visitor capacity Increased visitor stays → Increases HOT revenue Increased HOT revenue → Increased investment to local creatives 10 Questions?