City Council - Special Meeting

uh for a contribution of $15,000 uh from the hot fund uh to go towards lodging uh when they come into town for their production. The production has been moved to January 18th through the 27th. Um and so they would be coming in during that time. They'll need approximately 22 rooms uh for a period of 10 or 11 days. Uh they've got some funding from other sources. I believe the total cost of the hotel arrangements is about 22,500. Uh they've got some funding and sponsorships from other uh donations. Uh but they're looking for the final 15,000 and asking if it's possible to take that from the hotel occupancy tax. I think before we move forward with any other uh deliberations though uh we need to talk about um and publicly announce some potential conflicts of interest uh from from members so that everything is public and above board. Um and so Molly's going to have some forms. Um and so

recuse myself. Uh you don't have to

you don't have to because what we've got is uh Tony you're you're connected through your sister uh Jim Ays is connected through being given a acting part in the movie and Becky is connected through her role as a production assistant. Um and so a quorum of the council are connected to this movie production. Um and so under the open meetings act, if if a quorum has to recuse themselves from the discussion, then it stops the entire meeting. And so as long as everybody announces uh their connection to this issue and fills out the paperwork, they can then participate in the conversation. They can actually vote on the issue if they choose to so that we can still conduct business. Uh I just want to make sure that we are open and transparent that we've got several connections uh to this movie production. Uh the city of commerce is uh participating in an inind uh method. We're donating a lot of time and material to help make it happen. They'll have access to city hall. They'll actually film one or two scenes inside of city hall. So there's connections all the way through this. uh doesn't prevent us from doing uh the project or participating. Uh I just want to make sure that we've publicly [snorts] cleared those hurdles. Um and so if you have any questions about that, I'd be happy to answer them.

I I would like to to just to have on the records that I am assisting with production, but there's no financial gain. I decline that.

Okay. All right. Jim is going to be paid so well for his uh role, he'll probably start an endowment. Yeah, I'm presently in the market for an agent. So, if you have any connections, [snorts] so mayor, the request was for uh $15,000. So, there's a couple of different points of discussion on this. The first is, is this even eligible for funding through the hot funds program? Uh without going to great length, [clears throat] state of Texas controls very specifically what hotel occupancy tax funding can be spent on. Uh it's known as the Texas two-step. The first step is does it put heads in beds? Uh will this event bring people to our community and then stay in hotels within our community? [clears throat] The fact that we've really got one hotel and this is going to take 22 rooms over a 10 to 11 day period clearly satisfies the first heads and beds test for this event. The second step of the two-step then is if it does put heads in beds, then does it fall into one of I believe nine funding categories. And one of those categories is [clears throat] promotion of the arts and motion picture uh films and the production of motion pictures is considered part of that arts category. So staff does believe that the request meets both of the steps within the Texas two-step uh to be uh permissible and allow for funding. Uh the final consideration is is that any dollars that would be spent through this would go directly to the Magnus Hotel. And so the hotel occupancy tax was

created to promote and fund tourism. Um, and that kind of activity specifically to benefit the hotels within the community. And so almost 100% of our hot funds come from revenues generated at the Magneson. And so this expense would actually go right back to the Magnus and benefit them directly, which was the intent of the hot fund program in the beginning. And so staff believes that this meets all of the phases of the Texas twostep and can be considered for funding. Finally, uh the current fund balance of our hotel occupancy tax fund or the hot fund is sitting right at $100,000. Um and so the request for uh $15,000 would come out of that $100,000 fund balance.

Okay. council. Um, it's [clears throat] up for discussion. Are there any questions for Mr. Lisbby at this point in time concerning the legitimacy as he explained the application of the hot fines to the arts as well as to the hotel? Are there any questions amongst the council as far as the legitimacy of the council participating in discussions and votes? Okay, there being none, may I have a motion?

I move that we amend the um 2025-09-04 adopted budget for 2026. um specifically the amendment to the hotel hop funds for 15k to be paid to the magnes um in January. [snorts] Okay, second. We have a motion in the second. All in favor say I. I.

Any oppose like sign? Motion carries. Um, Miss Jacobson, the forms that we need to sign. Have them here. Okay. So, that is all the business that we have tonight. So, with that, at 5:38, I close the special city council meeting for the city of Commerce, Texas.