State Legislature Approves Financing Tool for American Bank Center
Will Fund Convention Center Improvements and Expansion
CORPUS CHRISTI, TX – The City of Corpus Christi will benefit from the passage of House Bill 5012, the law allowing the creation of a Project Finance Zone (PFZ) around the American Bank Center.
This finance tool, set up by the state, establishes a PFZ that allows communities to keep the Hotel Occupancy Taxes (HOT) that are collected by hotels, which normally go to the state to fund tourism projects statewide. This PFZ will allow the City of Corpus Christi to keep 4% of the HOT from hotels located within a 3-mile radius of the American Bank Center to fund improvements and the expansion of the convention center. The PFZ is expected to generate about $5 million in the next two years and approximately $192 million over 30 years.
“The redirection of these hotel tax dollars is a testament to the progress we will see in the future of Corpus Christi,” Mayor Paulette Guajardo said. “I want to thank Senator Hinojosa and Chairman Hunter for their unwavering efforts in seeing House Bill 5012 come to fruition during this legislative session.”
“This is a great example of what can be accomplished when we work together,” said Senator Juan “Chuy” Hinojosa. “I am proud to have been a part of this effort, and I look forward to seeing the positive impact it will have on our community.”
For media inquiries, contact Public Information Manager Robert Gonzales at 361-826-3233 or firstname.lastname@example.org.