South Padre Island Council approves architect for convention center expansion funding

In a recent workshop held by the South Padre Island City Council on July 2, 2025, discussions centered around the ongoing expansion of the Convention Center, a project that has been in the works for over a decade. The meeting highlighted the financial mechanisms supporting this initiative, particularly the 2% venue tax, which was approved by voters in 2016. This tax applies to short-term rentals and is designed to fund community projects, including the Convention Center expansion.

City officials, including Mayor Pinkerton and CFO Rod, provided updates on the project's financial status. The venue tax currently has a fund balance of approximately $15.5 million, which is expected to grow to $16.5 million by the end of the fiscal year. The city anticipates generating an additional $2.5 million in revenue for the upcoming fiscal year, indicating a healthy financial outlook for the project.

The venue tax is crucial as it does not impact local residents' property taxes or general fund revenues. Instead, it relies solely on funds generated from visitors, ensuring that the financial burden does not fall on the local community. This tax is earmarked for various enhancements, including the Convention Center expansion, which aims to improve facilities for events and tourism.

CFO Rod elaborated on the potential for borrowing against the local hotel occupancy tax, which could provide additional funding for the expansion. The city collects around $12 million from this tax, compared to $3 million from the venue tax, suggesting a greater capacity for financing larger projects through this revenue stream.

The meeting also touched on the extensive community engagement surrounding the Convention Center project, with 146 public meetings held since 2011. This level of involvement underscores the importance of the Convention Center to the local economy and community identity.

As the city moves forward, the Council's commitment to transparency and financial responsibility will be critical in ensuring the successful completion of the Convention Center expansion. The next steps will involve continued discussions on budget allocations and potential borrowing strategies to maximize the project's impact on South Padre Island's tourism and economic development.