A newly created plan by city leaders could bring millions of dollars to the City of Corpus Christi.
The motion to create a Project Financing Zone (PFZ) was approved by city council at Tuesday's meeting. That zone consists of a three-mile radius around the American Bank Center Complex. Hotel-associated tax revenues will be redirected into that zone.
KRIS 6 Neighborhood News Reporter Alexis Scott spoke with Economic Development Director Arturo Marquez about why the new plan could benefit the entire city.
“It allows the city to get state taxes back into the community and reinvest back into the American Bank Center," Marquez said.
The PFZ concept was initially enacted in 2013 by the Texas Legislature to provide state-funded financial assistance for convention center expansion and renovations in Dallas and Fort Worth.
During the 88th legislative session, the Texas Legislature approved House Bill 5012, which would allow the City of Corpus Christi to create the designated PFZ. Several different taxes will be collected from nearly 20 hotels within the radius.
“We’re going to be receiving back the Hotel Occupancy Tax the state collects, that’s 6% on the Hotel Occupancy Tax" Marquez mentioned. "Then we’re also going to collect any sales tax that the particular hotels generate at the state level, then the Mixed Beverages [Tax]."
Any new hotel built inside that radius will be added to the zone.
The plan is expected to bring the city at least $70.8 million over the next 30 years. Marquez said the PFZ doesn't take extra money out of the resident's pockets. Instead, it recycles that money directly back into the city.
“The local taxpayer does not have to necessarily have to pay into this. It’s the visitors that are coming," Marquez explained. "When people come to visit Corpus Christi and stay at the hotels, they’re paying that tax.”
Now that city leaders have given the thumbs up for the Project Financing Zone, the Economic Development Department will finalize the details and present it to the Texas Comptroller’s Office next year for final approval.
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