Title
Consider/Discuss/Act on the Grant Committee's Recommendations to Transition the Tourism Grant Program to a Tourism Incentive Program
Summary
COUNCIL GOAL: Goal 1: Direction for Strategic and Economic Growth, Objective 1B (diversify revenue sources and expand tourism to become a "Live, Work, & Play" community).
Goal 4: Financially Sound Government, Objective 4C (balance resources generated by hotel occupancy tax and fees).
MEETING DATE: August 25, 2026
DEPARTMENT: Visit McKinney (McKinney Convention & Visitors Bureau)
CONTACT: Aaron Werner, Executive Director, Visit McKinney
RECOMMENDED BOARD ACTION:
* Staff recommends the Visit McKinney Board of Directors approve the Grant Committee's recommendation to transition the Tourism Grant Program to a Tourism Incentive Program, reallocating the program's $30,000 annual allocation into the Tourism Incentive Fund.
ITEM SUMMARY:
* The Visit McKinney Grant Committee reviewed the Festival & Event Hotel Occupancy Tax (HOT) Grant Program and recommends transitioning it into the existing Tourism Incentive Program. Since 2021, the grant program has distributed $81,750 while generating only 72 verified room nights, a low return on HOT dollars. Staff and the committee recommend moving the program's $30,000 annual allocation into the incentive fund, which currently holds $50,000 and is nearly fully committed for FY26, creating a single $80,000 incentive pool.
No new funding is requested; the change reallocates existing HOT-funded dollars. The consolidated fund positions Visit McKinney to compete for the youth sports, conference, and corporate group business already generating significant room nights.
BACKGROUND INFORMATION:
* Visit McKinney proposes retiring the standalone Festival & Event HOT Grant Program and consolidating its funding into the existing Tourism Incentive Program.
* The grant program is outdated and underutilized. Since 2021 it has distributed $81,750 and generated only 72 room nigh...
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