Council Tables HOT Funding After Debate Over Scoring Fairness

SAN ANGELO, TX — The San Angelo City Council tabled a vote Tuesday on Hotel Occupancy Tax (HOT) funding allocations following an extended discussion over scoring criteria, transparency, and unexpected reductions for long-funded arts organizations.

Council members said several groups were surprised by lower funding recommendations under a new scoring process and expressed concerns that expectations were not clearly communicated. After debate, the council voted unanimously to table the item and bring it back at a future meeting, with most members indicating support for restoring funding levels to at least the previous year.

During discussion, members questioned whether the scoring process placed adequate weight on hotel activity, often described as “heads in beds.” Some also suggested simplifying the application requirements and reviewing the evaluation rubric before next year’s cycle.

Earlier in the meeting, the council unanimously approved awarding Task Order No. 8 to Kimley-Horn for the design of North Chadbourne pedestrian and drainage improvements, totaling $1,299,900, noting that the project is part of a previously awarded federal grant and will connect improvements north to the Coliseum area.

Council members later approved a series of Tax Increment Reinvestment Zone (TIRZ) updates, including new policies, funding principles, and flexibility allowing applicants to proceed “at risk” with construction prior to council action. A motion passed 7-0.

The council then approved four private TIRZ projects in the North zone totaling $300,000. The vote was 6-1, with one council member objecting over concerns about funding duplex-based residential development rather than commercial-focused reinvestment. Patrick Keeley was the lone dissenting vote. 

Five South TIRZ projects were also approved, including façade improvements, historic renovation work, and accessibility upgrades. One South project — the Copper Bull redevelopment at 215 W. Twohig — passed unanimously after the applicant’s $75,000 request for fire suppression and alarm systems received full funding.

The council also agreed unanimously to allocate $100,000 annually for 10 years in TIRZ funding to assist with public safety technology, including drone response and camera integration for rapid situational awareness. Council also approved TIRZ funding for dangerous and boarded building remediation, allocating $200,000 over the next three years to help secure or clear unsafe commercial properties within the TIRZ districts.