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Council hears HOT-fund plan including $2M phase for Nance Farm and tourism investments for ARC
Summary
Staff proposed using HOT funds to support a strategic tourism plan for 2027 with a $2.75M proposed package that would allocate approximately $2M to Nance Farm Phase 1 and funds to marketing, arts promotion, wayfinding, and branding to position ARC and DeSoto's sports complexes for regional events.
The city's HOT (hotel occupancy tax) presenter briefed council on fund balances and a proposed strategy to use fund balance and annual revenue to invest in tourism infrastructure and marketing. Staff said DeSoto currently has 11 hotels (two delinquent) and that HOT revenues historically total about $1.4 million annually; year-to-date receipts were lower at about $460,750 with $167,000 in expenditures recorded.
For the FY2027 plan staff proposed a $2.75 million program that would include a $2 million Phase 1 allocation to Nance Farm, $210,000 for citywide promotion and advertising, $225,000 for arts promotion, $200,000 for wayfinding and signage, and $115,000 for branding and tourism efforts. Staff noted legislative restraints on HOT eligible uses and described a prior legislative effort (with Senator Royce West) to expand marketing uses that did not pass but could be reintroduced for potential effect by Sept. 1, 2027. Council asked how HOT funds might support ARC tournaments and the sports complexes; staff said HOT rules allow multi-day tourism events and that staff is pursuing a strategic plan to market facilities to tournament vendors and regional organizers.
