Council creates Addison Tourism Public Improvement District, approves 2% assessment on qualifying hotels
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Summary
After a petition from hotel owners, council approved creation of a tourism public improvement district and an ordinance authorizing a 2% assessment on taxable room nights for hotels of 50+ rooms; the funds will support marketing, sales, research and administration under a hotel-led nonprofit board.
The Addison City Council on Feb. 25 approved creation of an Addison Tourism Public Improvement District (TPID) applicable to hotels of 50 or more rooms and adopted an ordinance authorizing a 2% assessment on taxable room nights at qualifying hotels.
Mary Rosenblatt, director of marketing and tourism, told the council the TPID model — authorized under Chapter 372 of the Texas Local Government Code — allows hotels to levy a self‑assessment to fund destination marketing and sales. Rosenblatt said the town’s petition process exceeded the required thresholds: by appraised value the petitions reached about 75% (above the 60% threshold) and also met owner‑count and surface‑area thresholds.
The TPID service plan approved by council allocates revenues toward marketing and internet promotion, expanded sales outreach including sports and national sales, a TPID hotel support program with sales incentives, tourism research and an administrative allowance for the marketing department. Rosenblatt said the nonprofit board overseeing TPID spending will be comprised of Addison hoteliers and that the town’s marketing and tourism staff will administer the program under board oversight. She said the first remittance is expected with May hotel tax collections for stays after April 1.
Why it matters: Rosenblatt and Scott Joss (Texas Hotel & Lodging Association), who attended as a resource witness, said TPIDs let local hoteliers pool funds to attract additional room nights and sport/event business; the council’s approval makes the TPID operational pending billing updates by the hotels and changes to the town’s remittance forms.
Councilmember Darren asked about oversight; the consultant said annual service plans and quarterly financial reporting will be provided to council. Councilmember Marlon moved approval and the motion passed on a voice vote with no recorded opposition.
Ending: With the TPID in place, Rosenblatt said the town and hotel owners will implement billing changes, update hotel billing software and begin remittances under the approved service plan.
