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City manager urges state hotel‑tax capture and venue vote planning to fund Lubbock civic center
Summary
City staff outlined a phased, 60,000‑square‑foot first phase for a new Civic Center and recommended triggering a Project Financing Zone to reserve state hotel‑tax increments while the city refines scope and costs before any voter measure.
City staff presented updated concepts and a financing plan for a proposed Civic Center expansion, recommending that the council trigger a Project Financing Zone (PFZ) to set aside state hotel‑tax revenue while the city finalizes scope and cost estimates.
The city manager told the council that the CSL needs assessment and follow‑up design work led to a preferred two‑phase approach, with Phase 1 defined as a roughly 60,000‑square‑foot expansion intended to grow market capture while keeping the existing exhibit hall open during construction. The manager said staff and consultants have been refining scope and performing local cost checks to replace out‑of‑market estimates.
To preserve a funding stream while design work continues, staff recommended triggering the PFZ in August 2026 so that, as of Jan. 1, 2027, the state will lock the base amount and hold incremental hotel‑tax receipts in a suspense account for up to five years. The manager explained that "from that date, you have 5 years to, quote, 'initiate your project,'" and that once the city initiates the project the state will release the set‑aside dollars for capital debt service.
Staff also discussed a venue (hotel/occupancy) tax option that would require voter approval; staff emphasized that the city will not have those dollars until voters approve an election. Council members repeatedly pressed for firmer cost estimates and public materials before any ballot question, saying they preferred to delay a vote rather than risk a failed measure based on preliminary numbers.
Council members and staff agreed on two practical priorities: continue narrowing construction and soft‑cost estimates over the next several months and use the PFZ trigger to reserve available incremental revenue while staff prepares a transparent package for voters. No formal action or vote was taken; staff was directed to return with refined budgets, firmed assumptions about timing and election options, and public‑facing materials for community engagement.
The council indicated it wants the civic center question presented when staff can show a clear scope and a credible financing plan—staff suggested that could mean aiming for a later election if necessary rather than a premature November vote.
