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R2020-130 2020-07-13RESOLUTION NO. R2020-130 A Resolution of the City Council of the City of Pearland, Texas, establishing a limited purpose Convention and Visitor's Bureau ("CVB") Grant Program, pursuant to Chapter 380 of the Texas Local Government Code, for the reinvestment of certain hotel occupancy tax revenues back to hotels located in the City. WHEREAS, the COVID-19 pandemic has created significant challenges for the hotel industry in the City; and WHEREAS, the CVB is seeking opportunities to partner with local hotels in the City during the COVID-19 crisis to reinvest back to the hotels, on a one-time basis, a portion of the hotel occupancy funds generated by their hotels; and WHEREAS, the City has the authority under TEX. CONST., article III, section 52-a, and Chapter 380 of the Texas Local Government Code to make loans or grants of public funds for the purposes of promoting local economic development and stimulating business and commercial activity within the City; and WHEREAS, Pursuant to Section 351.101 (a) (3) of the Texas Tax Code, revenue from the hotel occupancy tax may be used to promote tourism and the hotel industry for the advertising and conducting solicitations and promotional programs to attract tourists to the municipality or its vicinity; and BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the CVB Grant Program, attached hereto as Exhibit "A" and incorporated for all purposes, is hereby approved. Section 2. The City Manager or his designee is hereby authorized to administer the CVB Grant Program as approved. PASSED, APPROVED and ADOPTED this the 13th day of July, A.D., 2020. TOM EID MAYOR RESOLUTION NO. R2020-130 ATTE CRYSTAL N. ROAN, TRMC, CMC CITY SECRETARY APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY Visit Pearland — Texas— Pearland Convention & Visitors Bureau (CVB) Recovery Grant Program Overview: The Pearland Convention & Visitors Bureau Recovery Grant Program is designed to assist Pearland hoteliers with financial assistance due to the Coronavirus pandemic. This program provides limited financial assistance through a grant structure over a two-month period to hotels severely impacted. Structure: ■ The Pearland Convention & Visitors Bureau allocated a carryover of hotel occupancy funds of $500,000 from FY2019 to FY2020 for the restoration of the Railroad Depot. These funds will be reappropriated to a one-time incentive specifically designated for the CVB Recovery Grant Program in FY2020. ■ The Pearland Convention & Visitors Bureau will partner with approved hotels for a two-month period. Hotels may opt -in to the program by completing an application and meeting specific eligibility requirements. On a monthly basis, participating hotels must comply with key performance indicators to receive each monthly disbursement. ■ Monthly disbursements shall be calculated by the CVB based on the percentage of hotel occupancy tax revenue a hotel property generated to the City over a 15 -month period. ■ Use of funds by the hotels must comply with Chapter 351 of the Tax code and limit the expenditure of grant funds on expenses related to the promotion of advertising and conducting solicitations and promotional programs to attract tourists to the municipality. Examples of qualifying monthly expenses may include, but not be limited to: franchise fees, salary for critical sales/promotional personnel, third -party advertising, etc. Review Process: The CVB Recovery Grant Program is not automatic, hotels must meet eligibility requirements and complete an application. Applications will be accepted between August 5-15, 2020 for review by the Pearland Convention & Visitors Bureau to ensure completeness and eligibility. Applicants will be notified of the status of their application within 5 days of receipt. Eligibility: The CVB Recovery Grant Program can assist hotels that 1) pay hotel occupancy tax to the City of Pearland and 2) are in good -standing on HOT payments. Hotels wishing to apply for the program must meet the following criteria: o Hotel must be within the City Limits of Pearland and/or remit Hotel Occupancy Tax to the City of Pearland; o Must be a registered business with the Texas Secretary of State and be in good standing; o Must be compliant with all City of Pearland ordinances; o Be in good standing and not indebted to the City of Pearland; o Be willing to provide follow up documents as requested. Visit Pearland — Texas — ii Key Performance Indicators (KPI): The CVB Recovery Grant program requires hotels accepted in the program to provide the following documents to receive the second monthly disbursement. Hotels wishing to participate in the program must have the ability to provide the following documents for the second disbursement. o Monthly profit/loss statements; o Payment receipt for franchise fees/marketing expense; o Payment receipt for third -party advertising expense; o Payment receipt for critical sales personnel salary expense; o Payment receipt for brand loyalty rewards expense; o Payment rec o eipt for promotion related expense. KPI documents to support the first disbursement should be assembled in a packet either in PDF format emailed to trohrbacher(a-)pearlandtx.gov or delivered in person to the Pearland CVB office at 11200 Broadway Street, Suite 1390. The packet will need to be received with a minimum of 10 days for review prior to the second disbursement being released. KPI documents in a packet format to support the second disbursement should be emailed or delivered in the same manner as above on or before January 31, 2021 to remain compliant with the terms of the CVB Recovery Grant Program. Any questions related to the program requirements can be directed to Tracy Rohrbacher, Interim Director, Pearland CVB at 281-997-5972 or trohrbacherCa.pearlandtx.gov. Visit Pearland� Texas Pearland Convention & Visitors Bureau (CVB) Recovery Grant Program Application Please complete the information below and submit to the Pearland Convention & Visitors Bureau via email at trohrbacher(D_pea rlandtx.gov along with a signed W9. Applicant Information Name of Applicant: Name of Business: Business Address: Email address: Phone: Name of Business Owners (including investors): Business Impacts What are the impacts to your business from Covid-19? Please check all that apply. Reduced hours of operation Inability to serve customers Interrupted supply/deliveries from vendors Increased operating costs Employee layoffs/furloughs Revenue decline Decreased customers Other Employees Please describe how many employees you employed prior to the impact; how many you currently have and how many you anticipate in the future as a result of Covid-19. 3 Full Time Part Time How many did you have on January 1, 2020 How many did you have on March 1, 2020 How many did you have on April 1, 2020 How many do you anticipate in 30 des from application date? 3 Visit Pearland — Texas Business Revenue Please describe the revenue impact to your business as a result of Covid-19. Percentage revenue decline March 2020 Less than 5% 5-10% 10-25% 25%+ Percentage revenue decline April 2020 Less than 5% 5-10% 10-25% 25%+ Percentage revenue decline May 2020 Less than 5% 5-10% 10-25% 25%+ Business Expense Please describe the impact to your business expenses as a result of Covid-19. Percentage expense increase April 2020 Less than 5% 5-10% 10-25% 25%+ Percentage expense increase May 2020 Less than 5% 5-10% 10-25% 25%+ Percentage expense increase June 2020 Less than 5% 5-10% 10-25% 25%+ Promotion Plan Please provide information regarding your hotels efforts to promote your property through the remainder of FY2020 (September 30, 2020). Attach documents if you have a separate plan already outlined. 4 Visit Pearland Texas— Required Documents with Application W9 ,Promotion plan I certify that all the information provided is true and accurate to the best of my ability and financial information has not been manipulated. I understand that the information submitted in this application may require additional supporting documentation to the Pearland Convention & Visitors Bureau. I understand the Pearland Convention & Visitors Bureau will not accept incomplete applications. I understand the Pearland Convention & Visitors Bureau may grant or deny applications at its sole discretion. I understand if approved, I will need to provide KPIs to receive the second monthly disbursement. I understand my business is not entitled to a grant. Signature Date