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Commission backs TXCDBG downtown application and a $50,000 HOT pilot for tourism events

City Commission of Ennis · March 17, 2026
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Summary

Ennis commissioners approved submitting a Texas Community Development Block Grant downtown revitalization application (maximum $1,000,000) with a $50,000 local match and adopted a pilot program to use hotel-occupancy-tax funds for eligible tourism events (up to $50,000); staff emphasized eligibility, the 'heads-and-beds' test, reimbursement rules and competitive selection.

The Ennis City Commission voted to submit a Texas Community Development Block Grant (TXCDBG) application for downtown revitalization and to commit $50,000 in local matching funds. Staff described eligible activities — sidewalk rehabilitation, pedestrian improvements, ADA work, lighting and streetscape — and said the grant process is two-phased with a competitive final application due in August.

Separately, the commission approved a pilot program to use Hotel Occupancy Tax (HOT) revenues for tourism event support. Staff said the Texas Comptroller requires that HOT expenditures put “heads in beds,” so applicants must document how events increase overnight stays; funding is reimbursement-based and requires robust documentation. Staff noted use of Placer AI and other data to verify visitor patterns and suggested the pilot will be advertised to nonprofit event organizers likely to produce overnight stays.

A correction was made to the TXCDBG resolution to reflect a $50,000 local match (the draft listed $100,000 in one section). Commissioners asked how projects and funds will be prioritized; staff said applications will be evaluated on safety, ADA compliance and demonstrated ability to generate overnight stays, and that award decisions will be made at the state level for the grant and locally for HOT disbursements. The motion to approve both the TXCDBG application (with the corrected match amount) and the HOT pilot passed unanimously.