1983-06-08 Workshop Meeting - Laserfiche WebLink

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• KNOX W. ASKINS, J. D., P. C. ATTORNEY AT LAW 702 W. FAIRMONT PARKWAY P. O. BOX 1218 JOHN D. ARMSTRONG, J.D. LA PORTE, TEXAS 77571-1218 ASSOCIATE April 13, 1983 Honorable Mayor and City Council CITY OF LA PORTE City Hall La Porte, Texas 77571 Dear Ladies and Gentlemen: TELEPHONE 713 471.1888 At the recent meeting of the City of La Porte Industrial Develop- ment Corporation, at which the application of La Quinta Motor Inns, Inc., for Industrial Development Bond Financing was approved, the applicant made mention of the possible amount of hotel occupancy tax which its facility might raise, when in operation. Heretofore, the City of La Porte has had only limited hotel facilities. It appears that, in the future, with La Quinta, and other companies which have expressed an interes, such as Travel Lodge, that a fairly substantial amount of hotel rooms, of first class quality, will be erected in La Porte in the coming years. Article 1269j-4.1 is the legislative authority ofr cities to levy a hotel occupancy tax. I have enclosed with this letter a copy of that act. You will note that although the act has a great deal of discussion of revenue bonds,. nevertheless, a city can levy the tax and spend the revenue without having to issue revenue bonds. Basically, the City of La Porte could levy a tax, not to exceed 4$ of the price of the room, and thereafter dispose of the revenue as shown in Section 3C of the act. The tax could be used for the maintenance of our existing civic center buildings; historical preser- vation and restoration, which could be done directly by the City, or, perhaps, by the City under contact with the local Heritage Society. You will note that if the occupancy tax is levied, if the tax is 3~ or less, 2 of 1~ of the cost of the hotel room, shall be used for advertising and conducting solicitation programs to acquaint users with public meeting and convention facilities, and "for promotion of tourism and advertising of the City and its vacinity either by the City or through contract with persons or organizations selected by the City." If the tax is in excess of 3~, then la must be devoted to advertising purposes. The City could possibly contract with the Chamber of Commerce, as to the advertising, as the Chamber routinely publishes maps, brochures, and the like which promote the City. ~-~