Tourism Commission Rally Austin Bond (November 17, 2025) Proposed Recommendation — original pdf

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RECOMMENDATION FOR ENDORSEMENT OF RALLY AUSTIN BOND PROJECTS City of Austin Tourism Commission Recommendation Number: 20251112-008 These recommendations from the Tourism Commission identify the need to support Rally Austin’s forthcoming bond proposal to support Austin’s thriving tourism economy and long-standing cultural and tourism destinations in Austin facing increased real estate and economic pressure to continue operations as drivers for HOT tax generation. WHEREAS, City of Austin is recognized for its vibrant cultural arts scene and a diverse and creative community, with a decades-long history as the cultural and counter-cultural capital of Texas which enjoys the competing mantras of “'Keep Austin Weird” and the “Live Music Capital of the World”; WHEREAS, on June 25, 2018, Austin City Council adopted ORDINANCE NO. 20180614-067, establishing the Tourism Commission “to provide expertise and recommendations to the city council concerning hotel occupancy tax revenue collected by the city and issues related to and that promote tourism” and to “advise the city council on … matters relating to the allocation, investment, and budgets for the hotel occupancy tax revenue”; WHEREAS, Texas Tax Code Chapter 351, Section 351.101 (a) states that “Revenue from the municipal hotel occupancy tax may be used only to promote tourism and the convention and hotel industry”; WHEREAS, Austin’s cultural, creative, and music sectors are foundational to the city’s identity and economy, contributing over $1.8 billion in annual economic -- including tourism -- activity and supporting thousands of local tourism jobs; WHEREAS, the loss of affordable creative, cultural, and commercial spaces poses a critical threat to Austin’s local music venues, legacy businesses, and community-centered organizations emblematic of Austin’s tourism appeal; WHEREAS, Rally Austin, the City’s first multi-purpose local government corporation, was created by Austin City Council in 2020 to facilitate equitable, community-driven development and deliver projects that generate public benefit – including attracting tourism – while leveraging public, private, and philanthropic resources; WHEREAS, the Keep Austin Ours 2026 Bond Proposal presented by Rally Austin outlines comprehensive strategies for securing cultural, residential and commercial affordability supporting the broader tourism ecosystem, including property acquisition, long-term lease stabilization, capital improvement programs, and expansion of the Austin Cultural Trust; WHEREAS, Rally Austin’s model reduces long-term fiscal risk and administrative burden to the City by independently managing complex real estate and development projects while advancing Council priorities for equity, sustainability, cultural preservation, and increased tourism; and WHEREAS, supporting community-based economic development through the 2026 Bond Program aligns with the Tourism Commission’s commitment to strengthening Austin’s tourism ecosystem and ensuring creative and cultural spaces remain accessible to all tourists and residents; NOW, THEREFORE, BE IT RESOLVED THAT: The Austin Tourism Commission strongly recommends that the Austin City Council support inclusion of Rally Austin’s Keep Austin Ours 2026 Bond Proposal for $259 Million as part of the City’s 2026 Bond Program; and BE IT FURTHER RESOLVED THAT: The Tourism Commission recommends that the Austin City Council receive a formal briefing from Rally Austin on how its organizational structure, partnerships, and resource strategies can be used to: ● Implement programs that secure affordable creative and cultural, residential and commercial spaces critical to a thriving tourism economy; ● Expand the Austin Cultural Trust and related initiatives supporting music and arts venues that draw hundreds of thousands of visitors to Austin each year; ● Reduce risk and administrative burden to the City through independent, community-driven project delivery which can cut red-tape for existing tourism venues; and ● Strengthen Austin’s long-term economic and cultural resilience by investing in local, iconic, legacy and irreplaceable assets central to the Austin tourism and cultural brand. Date of Approval: _____________________________ Record of the vote: (Unanimous on a 7-0 vote, 4-3 vote with names of those voting “No” listed) Attest: _____________________________________________ Daniel Ronan, Chair, Austin Tourism Commission 2