DEPARTMENT: Convention & Visitors Bureau
DEPARTMENT HEAD: Casandra Matej, Director
COUNCIL DISTRICTS IMPACTED: All
SUBJECT:
Briefing on the Convention & Visitors Bureau Structure - Articles and Bylaws.
SUMMARY:
This item provides a briefing regarding the process to transition the San Antonio Convention and Visitors Bureau (SACVB), a municipal government organization, to a non-profit corporation by officially filing the Articles of Incorporation and Bylaws with the State of Texas and Internal Revenue Service.
BACKGROUND INFORMATION:
In April 2015, Mayor Taylor appointed a 13-member CVB Structure Task Force that included leaders from the hospitality industry, business community and the City of San Antonio. The Task Force was chaired by then SeaWorld President Dan Decker and was charged with identifying the ideal CVB structure that would afford a greater competitive advantage for the City and as a destination.
The CVB Structure Task Force presented its findings and recommendation to the Mayor and City Council at the December 9, 2015 B-Session. The recommendation was to transition the CVB from a municipal government organization to an independent nonprofit corporation. The proposed new structure will increase the speed to market and presents opportunities to diversify the organization’s revenue sources.
On February 18, 2016 a Resolution was approved to initiate the process to transition the from a city governmental function to an independent nonprofit corporation. The Resolution included an amendment that City Council reviews the associated governing documents prior to filing with the Texas Secretary of State.
Since then, City staff has formulated the Articles & Bylaws for the non-profit corporation and specifically addressed key areas associated to the corporation’s transparency as well as the accountability and composition of Board. Staff has also solicited input and reviewed the governing documents with the Mayor and Council. In summary, the articles of incorporation establish the organization’s form and define the entity’s purpose. The bylaws outline the board composition, terms, and officers and also include information on an organization’s record keeping and meeting procedures.
ISSUE:
This briefing will begin the process for creation of the corporation which includes filing with the Texas Secretary of State, applying for an Employer Identification Number (EIN), and applying for 501(c)(6) designation with the Internal Revenue Service. This process is expected to take about 6 to 12 months, with the majority of this time attributed to receipt of the 501(c)(6) designation.
FISCAL IMPACT:
This item has no immediate fiscal impact. Staff will return to City Council in late summer with a Management Agreement between the City and the Corporation and will present any fiscal impacts at that time.
RECOMMENDATION:
Staff recommends approval of the item included in this memorandum.