AGENDA CAPTION:
Title
Receive a presentation from Destination Services regarding the creation of the Heritage Tourism and Preservation Grant, and provide direction to the City Manager.
Body
Meeting date: November 18, 2025
Department: Destination Services - Rebecca Ybarra
Amount & Source of Funding
Funds Required: Yes
Account Number: 12024227.52600
Funds Available: $375,000
Account Name: Historic Funding
Fiscal Note:
Prior Council Action: Funding allocated by City Council during budget workshops.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Economic Vitality
Quality of Life & Sense of Place
Choose an item.
Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☒ Economic Development - Choose an item.
☐ Environment & Resource Protection - Choose an item.
☐ Land Use - Choose an item.
☐ Neighborhoods & Housing - Choose an item.
☐ Parks, Public Spaces & Facilities - Choose an item.
☐ Transportation - Choose an item.
☒ Core Services
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Choose an item.
Background Information:
City Council directed staff to allocate Hotel Occupancy Tax as allowed by State of Texas Statue for heritage tourism and preservation projects that promote or enhance our local history and heritage in San Marcos. Funds are determined annually by budget capacity and approved by City Council during the budget process.
The Heritage Tourism and Preservation grant was created to offer nonprofit organizations an opportunity to apply for funding assistance for projects and events that engage visitors and residents which serves to promote tourism through historic preservation projects and activities rooted in local history and heritage.
Funds may be requested for capital, planning, experiential educational, or marketing projects at historically or culturally significant sites that market the site's history to engage new audiences and tourists, and for events or projects promoting San Marcos’ history and heritage to the public and tourists. Grant expenses are restricted to project related costs and may not be used for venue operations, administrative salaries, or parts of a project that are not directly related to heritage tourism and preservation.
Destination Services staff developed the policy with assistance from Planning and Development Services, Administration, and Public Works staff. The grant will be administered by Arts and Heritage staff.
Final grant awardees and amounts are decided by members of the Heritage Tourism Panel which is made up of City staff from our administrative, historic preservation, facilities, and tourism departments.
The grant application will be hosted in the same grant portal as the City’s Arts and Cultural Grants. A link will be posted at SMTXarts.com, a microsite of VisitSanMarcos.com.
Texas Tax Code Section 351.101(a)(5) allows a municipality to allocate up to 15% of annual hotel tax collections to support heritage tourism and preservation programs and organizations, as permitted by the Texas Tax Code, and may be used for the following:
To enhance historical restoration and preservation projects or activities, or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums that are likely to attract tourists and hotel guests. Texas law does not limit such funding to structures that are owned by a public or nonprofit entity, or to whether the project is listed on a historic registry, but the city may choose to impose such limitations by city ordinance or policy.
It is not enough that a project or activity event merely be historical in nature; Texas law requires that the historical related expenditure also directly promote tourism and the hotel and convention industry.
Council Committee, Board/Commission Action:
Presented to the Historic Preservation Commission on November 6, 2025. No comments or suggestions offered.
Alternatives:
Click or tap here to enter text.
Recommendation:
Click or tap here to enter text.