Visit Austin outlines TPID rollout, seeks interim funds as convention center closes

Visit Austin President and CEO Tom Noonan told the Austin Tourism Commission on Feb. 12 that the newly formed Tourism Public Improvement District (TPID) will begin collecting a 2% per‑room fee on April 1, with the city remitting the first TPID funds to Visit Austin around mid‑August.

Noonan said the TPID collections will follow a three‑month initial remittance cycle — "we'll collect in April, May, and June. It'll go through the city process, and we'll probably see our first check in mid August," — and that Visit Austin's board has approved about $500,000 to provide interim funding until the first city disbursement arrives. He also said Visit Austin is pursuing a bank revolving line of credit to advance some TPID activity earlier, subject to legal review.

The timing matters because the Austin Convention Center is scheduled to close for construction about May 1. Noonan said the TPID funds are intended in part to support sales and marketing efforts to maintain hotel occupancy during the center's closure so the city does not miss a key summer revenue window.

Noonan described the TPID's membership and governance. He said 35 people applied for 13 initial TPID board seats and named the TPID officers: Jeff Donahoe of the Hyatt Regency as chair, Scott Blaylock of the JW Marriott as vice chair, and Andy Patel (Aloft Austin Northwest) among the officers. By Visit Austin bylaws and the TPID formation, a majority of the TPID board must be hospitality‑industry entities. Noonan said the TPID assessment applies only to room charges, not to other hotel purchases, and that participating hotels must have more than 100 rooms and be located inside the city of Austin.

Noonan also described Visit Austin's move to a new visitor center in the historic Phillips Building, a ground‑floor renovation of about 7,500 square feet that will include retail, a coffee shop and an event/meeting space. He said Visit Austin signed a 10‑year lease on the Phillips Building and expects the new location to be more centrally located for downtown visitors.

Commissioners asked how TPID monies will flow. Noonan said TPID fees will be collected by the City of Austin alongside the hotel occupancy tax and then transmitted to Visit Austin after the city's processing steps and the three‑party agreement among the city, the TPID and Visit Austin is finalized. He said that final city partnership agreement — specifying stewardship, spending roles and oversight — will return to city council in February, March or early April as the last legal step.

Noonan cautioned that although the council approved the TPID on Dec. 12, 2024, collections were delayed past Jan. 1 to avoid holiday implementation issues for hotels; the start date was set to April 1 so hotels would have time to onboard the fee. He described a TPID “board summit” and said the TPID board is meeting monthly for at least its first year.

The commission heard no formal motions regarding the TPID during the meeting; the presentation was an informational briefing and follow‑up questions were limited to clarifications about timing, governance and the visitor center lease.

Visit Austin's interim funding plan, the TPID collection schedule and the convention center closure together frame the agency's near‑term priorities: generate bookings and marketing activity to offset lost convention room nights and use the TPID to build a larger sustained marketing budget over the TPID term.

Noonan and Visit Austin staff said attorneys and the city will review any borrowing or early‑funding options to ensure legal compliance before any funds are advanced.