Pryor board votes to amend hotel‑motel allocation; creates grant reserve and tiered application system

The Hotel‑Motel Tax Allocation Board in Pryor voted April 30 to recommend that City Council amend Resolution 2014‑10, changing how hotel‑motel tax revenues are allocated, establishing a grant/reserve account and adopting a three‑tier application framework to prioritize events likely to generate hotel stays.

Board leadership proposed reallocating the board's distribution so that the Pryor Area Chamber's share would be reduced to 30%, Main Street would remain at 10%, and Pryor Public Schools would receive 10% (restoring a portion of the school allocation after discussion). The remainder — 50% of the annual hotel‑motel receipts — will be placed into a separate allocation pool intended for grants and to build a reserve for larger future projects.

The resolution amendment also adds a tiered application system intended to guide award decisions: - Tier 1: primarily local events not expected to draw significant outside attendance (lower likelihood of approval absent demonstrated impact). - Tier 2: local/regional events expected to draw out‑of‑area attendees for a one‑day event (applicants must explain how funds increase attendance and tax return). - Tier 3: multi‑night events or series with local/regional targets that are more likely to generate hotel stays and taxable activity (higher priority).

The board discussed how the change would allow it to build a reserve, described as a rolling fund the board intends to grow so it can match or co‑fund larger projects such as a water park or facility improvements. The chair said the board previously treated a 10% reserve as if it were saved but discovered it had been reallocated in practice; under the proposed amendment the reserve would be kept separate from annual allocation disbursements.

Lisa Miller, superintendent of Pryor Public Schools, asked the board not to eliminate the district's share entirely and described how hotel‑motel proceeds deposited to the district's activity funds cover items state law bars from the district's general fund. “By state law, we cannot use what’s called our general fund…to purchase food or to purchase any clothing items,” Miller said, adding those restrictions mean the activity fund is needed for hospitality rooms, tournaments and district events that bring visitors to town.

A representative of the Pryor Area Chamber offered to reduce the chamber's allocation and asked for clarity about how much of its allocation must be spent on direct tourism promotion versus fixed operational costs, saying the chamber has fixed costs and also runs tourism promotion programs. The board and chamber representative discussed reporting and receipt documentation to ensure transparency.

Board members also discussed adding short‑term rental collections (Airbnb/VRBO) and possible future state collection of the tax, both of which board members said could increase the overall fund available for allocations and reserves.

After discussion the board voted to recommend the amendment to City Council with the following changes as presented: reduce the chamber allocation to 30%, restore a 10% allocation to Pryor Public Schools, remove the older specific reference to "Band Day" from the resolution, and adopt the 50% grant/reserve approach and tiered application language. Roll‑call votes recorded Hawkins, Allen, Majors, Williams and Dickinson voting yes; the motion passed.

The board chair said the amended resolution will be revised for clarity, reviewed by city staff and submitted to city council for consideration; the amended text is expected to be finalized before July so it will apply to the new fiscal year allocations.