Title
Consider approving Resolution No. 2026-069 authorizing the City Manager or designee to approve, execute, and administer Corporate Loyalty and Event Incentive Program agreements; and take appropriate action.
Body
BACKGROUND:
The City of Farmers Branch utilizes the Corporate Loyalty and Event Incentive Program as a strategic tool to generate hotel room nights, increase hotel/motel occupancy tax (HOT) revenues, and support tourism-related economic activity. The program provides performance-based rebates to companies and organizations that utilize Farmers Branch hotels for business travel, events, and tournaments.
Under the program, eligible participants receive a rebate (typically $5 per room night) after meeting minimum room-night thresholds and verifying hotel stays. All incentives are contingent upon actual hotel usage and the collection of hotel occupancy taxes, ensuring a direct return on investment for the City.
The program has demonstrated measurable success. For example, a recent corporate loyalty participant generated:
• 10,085 room nights
• Approximately $69,957 in hotel occupancy tax revenue
• Nearly $1 million in direct visitor spending
This performance highlights the program’s effectiveness in driving economic activity while maintaining a pay-for-performance structure.
DISCUSSION:
Currently, individual agreements and modifications under the Corporate Loyalty and Event Incentive Program may require City Council approval, which can limit the City’s ability to respond quickly to business opportunities, particularly in competitive tourism and event markets. Approval of Resolution No. 2026-069 will establish a more efficient administrative process by authorizing the City Manager to approve and administer these agreements in accordance with established program guidelines.
This approach maintains Council oversight through policy direction and funding approval while allowing staff to efficiently execute agreements, respond to market conditions, and maximize tourism-related economic impact.
FISCAL IMPACT:
Estimated projected revenue impact of $330,000 to the Hotel/Motel Fund
POSSIBLE COUNCIL ACTION:
1. I move to approve Resolution No. 2026-069 as presented.
2. I move to approve Resolution No. 2026-069 with modifications.
3. I move to table the issue for further study or take no action.
ATTACHMENT(S):
1. Resolution No. 2026-069
2. Corporate Loyalty Terms and Conditions