City Council Resolution — original pdf

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RESOLUTION NO. WHEREAS, iconic venues and other local tourist destinations have been forever lost resulting in the tourist destinations; and economy and real estate boom, and WHEREAS, iconic venues and local tourist destinati ible for launching WHEREAS, a recent Billboard List (And Why It Matters) speaks to oss the country and struggling without revenue and insufficient nce due to the continuing COVID-19 pandemic; and WHEREAS, the Billboard artic l list of permanently closed venues by state, listing fif l exas, eight of which are in Austin and being the city ures; and WHE ssfully provided a means to save these resulting in the loss of such places as the iconic Thre dquarters and Shady Grove, Barracuda, Plush, Scratchouse, -2-One Bar, and North Door; and WHE -19 public health crisis continues to negatively impact our tourist related economies due to the general public limiting their travel, public health limitations on the ability to gather, and subsequent requirements of social distancing; and 1 of 9 WHEREAS, businesses that promote tourism and the hotel and convention industry are faced with nearly complete loss of operating income due to COVID-19 precautions on top of the pre-COVID conditions of rising rents; and WHEREAS, despite best efforts by the City Council and staff, relief funds to assist with expenses have fallen significantly short to meet the need and to date have been unable to address the loss of iconic venues and tourist destinations that serve WHEREAS may be possible federal fun uch as SAVES funding, could be utilized to stabilize WHEREAS, from around the world; and reputation for live musi attracts visitors WHEREAS, culin venues founded in Austin, and unique to Austin, pr nd convention industry by defining tha e filled with distinctive experiences for visitors foun of those contributing essential talents and businesses thrive upon r and WHE Council Resolution No. 20200326-091 directed City Management to prioritize all necessary resources available to address the public health and economic crises connected to the emergency declaration related to COVID-19; and WHEREAS, Austin City Council Resolution No. 20200326-091 further directed the City Manager to consider possible options for reassessing other uses of and repurposing of existing Hotel Occupancy Tax (HOT); and 2 of 9 WHEREAS, Texas Attorneys General have affirmed that cities must determine in the first instance whether an expenditure of hotel occupancy tax revenue is proper under Texas Tax Code Section 351.101 and have discretion in determining what expenditures promote tourism; and WHEREAS, council is determining certain iconic culinary, music and arts venues and spaces may be preserved, restored, acquired, constructed, improved, enlarged, equipped, repaired, operated, and ma romote tourism and the convention and hotel industry as: (1) as preserved historic sites under 351.101( (2) visitor information centers under Texas T 351.001(8) and 351.101(a)(1); and WHEREAS, Ordinance 20171 for the full 15% allocation from HOT funds for historic preserva pportunity to capture those and previously Fiscal Year unrealized f currently co preservation WHE OT funds for historic preservation for the e not fully realized at the 15% and those total approximately $30.6 million and signate a portion of these funds for allowable WHEREAS, Visitor Information Centers are evolving as is the Convention Center industry as a whole and there is opportunity to redefine Visitor Information Centers as destinations that provide an authentic Austin experience in their original locations and that both inform and entertain visitors with and about authentic Austin culture; and 3 of 9 WHEREAS, by securing these originating locations as historic sites or, at least in part, as unique Visitor Information Centers would allow these iconic venues and tourist destinations significant to and and status as a tourist destination; WHEREAS, businesses that promote tour vention generation once COVID-19 precautions are RE, BE IT RESOLVED BY THE CITY COUNCIL OF AUSTIN: The City Council declares and d y, arts, music, and creative venues and spaces as esse mponents in promoting tourism and the hotel and convention i and further serve as the BE IT FUR The C ng forward a budget amendment to transfer a on HOT fundin nt of $2.4M, to be established and drawn from nds currently appropriated with existing 15% cultural arts servation allocations as well as the Live Music Fund, as allowed under Texas Tax Code, Section 351.101(a)(1), (a)(5),and (b). The allocation from HOT funds is to be drawn from what would have been allocated in FY17 through FY18 to the Historic Preservation Fund had it been fully funded at the allowable 15% and potentially other HOT funds available and allowable for use per State law for Visitor Information Centers. 4 of 9 BE IT FURTHER RESOLVED, The City Manager is directed to bring back the budget amendment of $2.4M with an action to contract with the Austin Economic Development Corporation (AEDC) to manage the funds, no later than January 27, 2021. The components of the program to be included in the AEDC contract are described in the Be It Resolved below. BE IT FURTHER RESOLVED, total funding of $15M. BE IT FURTHER RESOLVED, The City Manager is directed to provide an .5M payments into the Iconic Venue Fund over the nex ch a goal of The City Manager is directed to h action as is appropriate to contract with the Austi oration (AEDC) to manage the s Tax Code Chapter 351 for the purpose of implemen ural Preservation, restoration, acquisition, nlarging, equipping, repairing, operations, a rovided for under Texas Tax Code Section 351.101(a)(1 BE IT FUR D, The City Manager is directed to include in the Agreement being negotiated with the AEDC, this project shall initially consider, but not be limited to, the locations listed in Attachment A as potential projects. These locations are currently identified on the Visit Austin website as tourist destinations and listed as and Agreement terms 5 of 9 shall include a requirement that the AEDC consider at least the following criteria when identifying locations: Value to tourism as a destination; Need for assistance to avoid loss; Interest in participating and securing the venue as a recognized iconic tourist destination; contributions; Proven track record of business success, as w Agreement to participate in arrangements suc o replenish the Fund in a manner that further se additional authentic creative tourist destinations in the fu Interest in serving IT FURTHER RESOLVED, The City Manager with the AEDC the Fund be structured Recogniz and unique br ations for tourists and for touring musician ly and internationally; Consider t sites are considered in historically underserved neighborh sites that are owned, managed, or serving as incubator for creatives from diverse communities. Provides a means to sustain these sites fabric and status as a destination, and promotes tourism and the convention and hotel industry; 6 of 9 Provides a means to sustain the creative community sector to further establish Austin as the epicenter where creatives are equitably supported in their endeavors; Uses funds for preservation, restoration, acquisition, construction, improvement, enlarging, equipping, repairing, operation, and/or maintenance of the site, including but not limited to the following activities: Purchase of locations with a lease-back creation of a permanent revenue stream permanently preserve venues and spaces revenues and support permanent preserv providing a means to s future; Provides creative structuring sponsive to the unique circumstances of the propert operator and others ing the business as an sm industry; and effort to further these types of e initial list of locations; es the tourist experience in Austin by preserving destination experiences that are unique to and involved ico Pro sup Redefine and prom Provides support for additional visitor destinations to participate, as an example, as Ambassadors through creation of a program that provides compensation to those who train, designate staff and assistance, information, and service to visitors of Austin. 7 of 9 ADOPTED: __________, 2020 ATTEST: __________________________ Jannette S. Goodall City Clerk 8 of 9 ATTACHMENT A. List of Initial Locations for Consideration The EDO shall initially consider, but not be limited to, the locations listed below as potential Fund projects. These locations are currently identified on the Visit Austin website as tourist destinations and listed as and Historic Scoot Inn Victory Grill Broken Spoke Continental Club Hole in the Wall The Little Longhorn Sal Mohawk y Tonk Saxon Pub Elephant Room 9 of 9