Q&A with Austin’s Mayoral Candidates

1.) For every hotel tax dollar that the City of Austin uses to promote tourism and hotel activity, it generates many multiples of that amount in city tax revenues and economic activity for Austin businesses, including over 50,000 jobs and $6 billion impact to the community at large.  The Austin Convention and Visitors Bureau (ACVB) is tasked to promote hotel and tourism activity within the City of Austin.  There are now over 31,000 hotel rooms to fill in Austin, with an additional 4,500 rooms slated to come on line within the next three years.   Yet, the Austin CVB receives the lowest amount of local hotel tax funding of all major Texas cities to promote Austin as a destination for group and convention activity.  The amount of local hotel tax funding for marketing that the Austin CVB receives from the hotel tax is 57% below the average amount of funding that is provided to CVBs within the cities that we compete with nationally for convention and group activity.

QUESTION: Do you support working to amend the Austin City Budget in future years to try to bring Austin CVB’s local hotel tax funding to a more competitive level with the cities we compete with throughout Texas and nationally for convention and group activity?

Sheryl Cole:
Yes.

Mike Martinez:
Tourism and Conventions are critical elements of our economy. I certainly support appropriate funding for the CVB so it can continue to provide the best service necessary to promote Austin. An increase in funding is an investment in the future and potential for future dollars to come into the city. Unlike other investments, we see a very real return dollar for dollar when the CVB is able to attract more events, conventions and tourism to the city. Better communication among the CVB, AHLA, DANA, and GARA along with city staff and elected leaders will help us evaluate our local needs. We can determine what level of funding should be in our budget and how to prioritize future initiatives through the HOT allocation and formula for distribution. This is the level of attention Austin needs from its next mayor. We must ensure there are policies in place that support all of our industries and economic sectors to maintain our vibrant economy. That can take the form of increased funding or regulatory changes to target areas that impact our night time economy.

During our special events, we see our basic city services stretched thin when thousands of people are downtown. During big events I have seen and we have heard from APD, city staff and venue owners that things can get out of hand. We should continue the conversation about how best to handle the resulting factors associated with our success. I would like to propose creating an entertainment license whose purpose would be to ensure our venues are all safe, responsible and compliant while streamlining the permitting administrative process and adding consequences for habitual public safety violations. This would mean that instead of getting multiple permits (sound permits, fire inspection, etc,), there would be one, and the permit would be good for two years. An entertainment license would create a better environment downtown year round. Since we close down 6th Street on weekends, we should program it with street performers like you see in pedestrian areas in other culturally vibrant communities. Creating food truck courts on the cross streets are another possibility to help abate alcohol intake and create more opportunities for our growing food truck culture in Austin. This type of activation would increase safety, promote better circulation and ensure the right level of interaction. I commit to regularly meet with the Austin Hotel and Lodging Association, the Downtown Austin Neighborhood Association, the Texas Bar and Nightclub Association, the Greater Austin Restaurant Association, and the Red River Cultural District so that Austin can remain a successful tourist and convention destination.

It is imperative that the City of Austin has a state of the art convention center that can successfully compete in the global convention and trade show market. The current Austin Convention Center, now in its 22nd year of operation, will require constant capital investment in order to remain competitive. In addition, the Austin Convention Center Department is currently engaged in developing a Long Range Master Plan that will provide a structure for the next 20 years. Based on the growth and success of the Austin market, the Long Range Master Plan likely will recommend a major expansion of the Austin Convention Center. Based on the limited land options in and around the current facility, expansion may require big changes to the neighborhood, including relocation of historic buildings and possibility of closing or relocating streets that may significantly change the look of downtown.

Steve Adler:
Tourism is very important to Austin and its economy and Austin needs to be competitive with other cities for convention and group activity. The Austin market is currently underserved with hotel rooms and the additional hotel rooms coming on line will make us more competitive (as we are already seeing with future bookings) with cities that have been able to offer greater contiguous options for convention visitors. But the various elements of being competitive take many forms. Our current hotel room demand, intermittently weighted towards special events, requires a level of room supply and restaurant capacity that at other times should be filled with increased convention and group activity, and this effort should be supported. Further, I believe the mayor’s office and its power to convene could be used to focus effort and attention on expanding and growing the leisure travel offerings, activities, and events in this city so as to increase hotel, restaurant, and hospitality demand during the “other than” convention and special event driven shoulder seasons. I would consider providing greater support in the future if necessary to ensure our convention center, visitor bureau, and related capacity are competitive.

Randall Stephens:
Yes.

Todd Phelps:
It sounds compelling, I would definitely entertain the idea, lets also talk about how we can let those that come here for conventions and tourism know that we are working on an all of the above plan to solve the city’s traffic crisis so that they can feel confident in their ability to get around in an timely manner when they are here.

2.) It is imperative that the City of Austin has a state of the art convention center that can successfully compete in the global convention and trade show market.  The current Austin Convention Center, now in its 22nd year of operation, will require constant capital investment in order to remain competitive. In addition, the Austin Convention Center Department is currently engaged in developing a Long Range Master Plan that will provide a structure for the next 20 years.  Based on the growth and success of the Austin market, the Long Range Master Plan likely will recommend a major expansion of the Austin Convention Center.  Based on the limited land options in and around the current facility, expansion may require big changes to the neighborhood, including relocation of historic buildings and possibility of closing or relocating streets that may significantly change the look of downtown.

QUESTION: What is your stance on expansion of the convention center and it’s importance to the continued growth of Austin’s visitor industry?

Sheryl Cole:
I support the expansion of the convention center. It is a critically important component of the economic prosperity we are currently experiencing. For the industry to remain competitive, we need to bring industry and community stakeholders together to develop a long-range master plan for the convention center, and also coordinate those efforts with the University of Texas.

Mike Martinez:
The Convention Center serves a critical role in the City’s ability to accommodate and welcome events and organizations to Austin. I support exploring all options for expanding the Convention Center while ensuring we meet the needs of surrounding businesses and residents and maintaining the character of downtown. Austin’s hotel tax rate is currently 15%, with the state hotel tax, city hotel tax, and city venue tax for the convention center combined. In the past, County officials have publicly commented on possibly supporting a county hotel tax to fund the Expo center or other facilities. However, these facilities contribute very little to overnight hotel activity. Furthermore, a county hotel tax would preclude the city from undertaking future endeavors that do contribute to hotel activity, such as convention center expansion. Historically, City of Austin council members and mayors have all opposed any efforts by Travis County to impose a hotel tax.

Steve Adler:
Austin would best be served with a state of the art convention center. Having a world-class convention center is an important component of Austin’s continued success in attracting and maintaining tourism and business. I look forward to receiving and reviewing the Long Range Plan for the Convention Center as it concerns a possible expansion. I do not go into the process adverse to closing streets or reshaping parts of downtown near the convention center, as changing the look of downtown in the future generally might need to be considered. I need more information on the possible relocation of historic buildings.

Randall Stephens:
I am in favor of taking citizen input on this topic, evaluating proposals, and provided City Council reaches a consensus in favor of such an expansion will press forward to place the issue on city-wide ballots.

Todd Phelps:
I would need to listen to input from local residents before making any decision and then seek to find a win-win result for residents and the future of tourism in Austin. Austin’s hotel tax rate is currently 15%, with the state hotel tax, city hotel tax, and city venue tax for the convention center combined. In the past, County officials have publicly commented on possibly supporting a county hotel tax to fund the Expo center or other facilities. However, these facilities contribute very little to overnight hotel activity. Furthermore, a county hotel tax would preclude the city from undertaking future endeavors that do contribute to hotel activity, such as convention center expansion. Historically, City of Austin council members and mayors have all opposed any efforts by Travis County to impose a hotel tax.

3.) Austin’s hotel tax rate is currently 15%, with the state hotel tax, city hotel tax, and city venue tax for the convention center combined. In the past, County officials have publicly commented on possibly supporting a county hotel tax to fund the Expo center or other facilities. However, these facilities contribute very little to overnight hotel activity. Furthermore, a county hotel tax would preclude the city from undertaking future endeavors that do contribute to hotel activity, such as convention center expansion. Historically, City of Austin council members and mayors have all opposed any efforts by Travis County to impose a hotel tax.

QUESTION: If the County were again to propose a new tax for hotels in the
City of Austin, what would your position be?

Sheryl Cole:
I would not support an additional county tax.

Mike Martinez:
I am opposed to the County implementing a new hotel tax. I support working with the County and with stakeholders to improve the Expo Center and other facilities within the City limits in order to realize additional revenue while enhancing our options for entertainment and activity venues. Our Expo center must be
upgraded and events such as Rodeo Austin maintained. Large events, such as SXSW, have recently approached City officials about the possibility of dedicating a portion of surplus hotel tax revenues to cover certain special event expenses. Large events such as SXSW already receive substantial incentives and special allowances from both the city and Austin area hotels. These concessions are proportionate to the economic impact of the event. The Austin CVB, the Austin Hotel and Lodging Association, the Austin Neighborhood Council, and the Austin arts leaders are united in their opposition to use of city hotel tax for this additional incentive program.

Steve Adler:
We need to preserve the city’s ability to provide for future convention center expansion both for its direct and regional benefits and I would oppose efforts that would preclude that ability. I specifically oppose hotel occupancy taxes being used to fund facilities (or for that matter organizations or activities) that do not meet the HOT statute’s standards.

Randall Stephens:
Negative.

Todd Phelps:
Large events, such as SXSW, have recently approached City officials about the possibility of dedicating a portion of surplus hotel tax revenues to cover certain special event expenses.  Large events such as SXSW already receive substantial incentives and special allowances from both the city and Austin area hotels.  These concessions are proportionate to the economic impact of the event.  The Austin CVB, the Austin Hotel and Lodging Association, the Austin Neighborhood Council, and the Austin arts leaders are united in their opposition to use of city hotel tax for this additional incentive program.

4.) Large events, such as SXSW, have recently approached City officials about the possibility of dedicating a portion of surplus hotel tax revenues to cover certain special event expenses.  Large events such as SXSW already receive substantial incentives and special allowances from both the city and Austin area hotels.  These concessions are proportionate to the economic impact of the event.  The Austin CVB, the Austin Hotel and Lodging Association, the Austin Neighborhood Council, and the Austin arts leaders are united in their opposition to use of city hotel tax for this additional incentive program.

QUESTION: What is your position on displacing hotel tax revenues that would otherwise be allocated to the Austin CVB, the Austin Convention Center, and Austin arts entities in order to supplement the incentives provided to events such as SXSW?

Sheryl Cole:
There have been a series of inclusive stakeholder meetings on this very issue, and first and foremost, I need to see the results of that process which is due out to the city council soon.

Mike Martinez:
I support finding an equitable way to support events like SXSW, Trail of Lights, Kite Festival and the other city sponsored events. Currently, these costs are taken from the general fund. As costs continue to rise, we need to reduce the impact on the affected departments. While many events bring substantial hotel
tax revenue, new revenue would be my preferred option for funding events that qualify for reimbursement of certain expenses. State laws requires every expenditure of the local hotel occupancy tax meet a two part test: 1) it must directly promote tourism and the hotel and convention industry; and 2) it must fit into one of nine statutory categories.

Steve Adler:
Generally, “for-profit” special events such as SXSW should not receive funding from the hotel occupancy tax. Such special for-profit events should access city incentives as other for-profit activities or entities upon demonstrating the need and a return on our values (or through accessing a special fund which could be created to fund such for-profit events).

Randall Stephens:
I am not in favor of redirecting funds intended for the Convention Center and Austin arts entities for other purposes such as incentive packages for events such as SXSW.

Todd Phelps:
Austin’s hotel tax rate is currently 15%, with the state hotel tax, city hotel tax, and city venue tax for the convention center combined. In the past, County officials have publicly commented on possibly supporting a county hotel tax to fund the Expo center or other facilities. However, these facilities contribute very little to overnight hotel activity. Furthermore, a county hotel tax would preclude the city from undertaking future endeavors that do contribute to hotel activity, such as convention center expansion. Historically, City of Austin council members and mayors have all opposed any efforts by Travis County to impose a hotel tax.

5.) State laws requires every expenditure of the local hotel occupancy tax meet a two part test:  1) it must directly promote tourism and the hotel and convention industry. 2) it must fit into one of nine statutory categories.

QUESTION: Are you comfortable applying the state law requirement of a direct impact on tourism and the hotel and convention industry for city hotel tax to be expended?

Sheryl Cole:
I am comfortable with the state law requirements regarding the use of HOT taxes.

Mike Martinez:
We must comply with state law, and I will support an evaluation of our use of Hotel Occupancy Tax revenue to ensure we are not in violation of the nine categories. It is in the City’s best interest to use hotel tax revenue toward ventures that support tourism, the hotel industry, and the convention industry given their significant impact on the health of our local economy. I can assure you that this conversation will not be an easy one, but my experience tackling tough policy issues and bringing communities together to find common solutions will be of great benefit. Austin continues to grow rapidly. 35 is a vital international transportation link that has helped bring growth and vitality to our city and our downtown. However, it has become our most congested roadway and is a physical, economic, social and cultural barrier between downtown and east Austin.

Steve Adler:
Yes. Austin should continue to apply state law.

Randall Stephens:
Yes.

Todd Phelps:
I am very supportive of the arts, however I am not convinced that hotel tax revenues are the place to source from, especially since I believe the amount of tax burden currently placed on the hotel industry is excessive. State laws requires every expenditure of the local hotel occupancy tax meet a two part test:  1) it must directly promote tourism and the hotel and convention industry; and 2) it must fit into one of nine statutory categories.

6.) Austin continues to grow rapidly. 35 is a vital international transportation link that has helped bring growth and vitality to our city and our downtown.  However, it has become our most congested roadway and is a physical, economic, social and cultural barrier between downtown and East Austin.

QUESTION: As TxDOT develops its design for long-term improvements for I35 as it runs through downtown, what immediate short-term solutions do you have to curb the traffic problems we face today?

Sheryl Cole:
There aren’t any quick or easy solutions to what’s been a problem 50 years in the making. This November will provide us the opportunity to make down payment on new transit options to increase mobility throughout the city, but an urban rail line won’t solve the problem on its own. We need to invest in bike lanes, allow for ride-sharing transportation networks, and we all together need to make a behavioral changes in how we commute or the distance between work and home. Tele-commuting and flexible work schedules need to be a part of our mobility future. In the near-term, I’m excited for projects like the $9.8 million worth of street improvements to 3rd Street that were a part of the 2010 bond package will help improve our downtown environment for pedestrians. That’ll stitch together many our new hotels, representing 2,000 keys in our downtown market.

Mike Martinez:
Austin’s transportation challenges are decades in the making, and I have been working to tackle them as an Austin City Council Member and as Board Chair of Capital Metro. In the short-term, I propose removing commercial trucks on I-35 within Austin if they do not have a delivery in our city. This proposal would require negotiations with and assistance from CTRMA. However, no single solution will solve our transportation problems, and I fully support including the I-35 projects proposed in the Strategic Mobility Plan on the ballot in November as part of the transportation bond package. Any investments we make must provide the best value to our citizens. I have also worked tirelessly to improve our public transportation system in Austin and will continue my efforts to make Capital Metro even better. We remove over 32 million trips from our roadway each year, and we are only getting better due to the work we have done over the last 4 years. I look forward to continuing my work on transportation and supporting Urban Rail in November. Downtown serves the entire community. Even if Austinites don’t live in or around the urban core, many work and play downtown. Downtown is also the first, and sometimes the only, exposure visitors receive in Austin.

Steve Adler:
The most immediate short-term solution to curb traffic congestion would be for the mayor to use the considerable power of the bully pulpit and the power to convene to rally and get the University of Texas, Travis County, the State of Texas, the City of Austin and a few other large downtown employers actively to participate, encourage, and incentivize voluntary staggering of work schedules (for employees whose jobs are not “time dependent”) and greater telecommuting. Reducing rush hour traffic by just 10% would make a huge difference in commute times and congestion levels. We need to come together as a community to address this problem, especially in the short term since the longer term answers will not provide relief soon enough.

Randall Stephens:
1.  TXDOT should eliminate lights and improve E183 from SH71 to SH290/183; and build flyover access from Northbound 183 to I-35 – and develop housing and business along E. SH183.
2.  Longer term – Shift focus on development from downtown, to the peripheral areas along Ed Bluestein and Research Blvd. and central North Austin.

Todd Phelps:
Immediately support rideshare 100% which has been historically blocked by various members of the council and some current candidates. Attack the bottlenecks which back up traffic profusely and quickly provide continuous flow intersections. I also think that proposals requiring restaurants and hotels to pay third parties to haul away food waste separate from other trash is non – beneficial, hurts business, and will cause more traffic congestion downtown/city wide. This will also contribute to more pollution over all. Downtown serves the entire community.  Even if Austinites don’t live in or around the urban core, many work and play downtown. Downtown is also the first, and sometimes the only, exposure visitors receive in Austin.

7.) Downtown serves the entire community.  Even if Austinites don’t live in or around the urban core, many work and play downtown. Downtown is also the first, and sometimes the only, exposure visitors receive in Austin.

QUESTION: Given that, what do you think needs to be done to improve and
maintain cleanliness, safety, and walk-ability downtown?

Sheryl Cole:
Downtown is the economic engine of our city. To keep that engine running we have to continue to implement the Great Streets program, that brings life and vitality down to the street level, and to keep those streets clean and safe we must support public safety efforts, including the Downtown Rangers and the downtown community court, and continue to fund and operate the HALO closed-circuit surveillance system in targeted areas. Lastly, I have been a strong advocate for developing the housing for the homeless that will help people off the street and into lives of self-sufficiency. This is the realistic solution to homelessness in our community broadly and while we’ve made significant progress, we still have much more to accomplish in this area.

Mike Martinez:
I co-sponsored an item that directed city staff to craft guidelines for Complete Streets which acknowledged the need to accommodate all forms of transportation in a safe and efficient manner. The city has been moving forward with significant improvements to downtown streetscapes both on the public side and from private projects. The Great Streets program has improved the broad street level experience across all modes of transportation, and the integration of Complete Streets will only enhance what we have already accomplished. As Mayor, I will propose a major public awareness campaign to ensure that all citizens and visitors understand that we must all do our part to keep our city clean. We must ensure that pet owners are responsible and pick up after their pets. We must also do what we can to encourage proper disposal of debris and trash. This is also a major environmental issue that is critical to the water quality of Lady Bird Lake. No one takes better care of their own city than its residents and it’s time we reengage with a program that can truly make a major impact with the most minimal in costs to our taxpayers. Project Connect has spurred a great deal of debate in the community over the future of Austin transit generally, and the future of commuter rail service more specifically.

Steve Adler:
Keeping downtown an attractive and vibrant place is crucial to maintaining Austin’s image as a destination city as well as providing a quality of life that is shared and available to all of Austin’s citizens. We’ve shown we can do a pretty good job providing cleanliness, safety and walkability with some parts of downtown, but there are existing and looming problems that require our attention. For example, East Sixth Street infrastructure (between Congress and IH-35) is in great need of repair and represents an important opportunity to improve cleanliness, safety and walkability by reclaiming and redeveloping the historical and cultural heritage of that district and we should be working with DAA and the local merchants to do this. Sixth Street should be preserved in the context and character of that district rather than it becoming a high speed thoroughfare exiting off IH-35. The area stakeholders (DAA, DTAC, law enforcement, local merchants, and residents) should be working toward greater TABC compliance to address intoxication generally. Any real long-term solution to downtown safety will require creation of permanent housing for the chronically homeless, but the responsibility for this is the community generally and not just downtown businesses. Peak transportation periods downtown need available travel services.

Randall Stephens:
First of all,  special events seem to keep it that way, but “that” can change.  Austin offers a lot the tourists seldom see, including a wide variety of excellent local dining and entertainment establishments outside the downtown area. As for dowtown safety, cleanliness and walkability – we should consider moving the Arch facility away from the downtown tourist district, add a district tax to bar and restaurants to pay for increased police services.  I find personally downtown quite walkable.

Todd Phelps:
As someone who has worked in this area extensively throughout my life, the city should promote the idea of less tolerance for any acts of violence in our entertainment districts. We should also consider implementing possible awareness programs that get the word out that folks who enjoy our bars & music venues are welcome to do just that, but anyone that initiates an act of violence will face the maximum allowable punishment as a matter of public policy. I am also in favor of homeless shelter relocation.

8.) Project Connect has spurred a great deal of debate in the community over the future of Austin transit generally, and the future of commuter rail service more specifically.

QUESTION: If elected or re-elected, what vision for Project Connect would you bring to the table?

Sheryl Cole:
I support the Project Connect vision, adopted by various governmental stakeholders throughout Central Texas. I sit on the LoneStar Rail board, and I would continue to work to ensure connectivity between LoneStar Rail and the Project Connect vision which includes several future phases for a network of public transportation that will provide mobility options to Austinites who today may have few.

Mike Martinez:
Project connect is a fifty year visioning plan. I believe that implementing it will require a mayor who understands our transportation challenges, has been working to solve them and who is ready to lead on day one. My work as Chairman of Capital Metro has provided me the opportunity to work directly on policies to address the challenges Austin faces. During my tenure as Chair, I have helped transform the cash-strapped agency into a model of transparency and improved its stability. We have the highest ridership levels in the agency’s history, and we are now an attractive option for federal and state funding of transit projects. That’s the type of leadership I believe Austin needs in its next mayor. I’ve stated for many years that Austin will only solve its transporation challenges with an affordable mix of roads, rail, sidewalks, bus lanes, and bike paths.

Steve Adler:
It’s hard to imagine the city of Austin in 25 or 30 years without an integrated transit system that includes rail, roads, buses and bikeways. We must continue to push for the interconnectedness and options presented by such a system. At the same time, it is also clear based on studies done by the Texas A&M Transportation Institute that we cannot just build our way out of the problem. We need to change where and how we live in and beyond the urban core and Project Connect must account for this, too.

Randall Stephens:
If the voters approve the current urban rail plan, I will use my skills to see it through.   In any case, I would ask legislators to allow RMA’s such as CTRMA to put rail on area-wide ballots.  I also believe a rail line – as expensive and subsidized as it is, must connect destinations from outside the urban core to employment centers.  IE, the current Red Line provides urban rail and commuter rail functions.  The Red Line could be punched through – down 4th Street,  Southward across a bridge all the way to ABIA and meet that standard for a fraction of the cost of the current urban rail plan.  There is already a station at ACC Highland Mall called “Highland Station”.  Building a tunnel to ACC Highland is duplicative and overly expensive.  If anything, the rail line could be elevated for a lot lower cost. There should be at least two if not three companies bidding to build our urban rail if it is approved by taxpayers at the ballot box.

On highways,  I will proactively move to influence statewide discussion on funding mechanisms.  The intent of HB3588 seems to have been to convert existing state highways into toll roads, and to create new toll roads using any combination of privagtte financing, general obligation bonds, P3 financing or some hybridization thereof followed by tolls and privatized management of the roads.  The SH130 debacle has shown this is a failed model we need to move away from.  I would press TXDOT to immediately seek design-build proposals from contractors to eliminate traffick lights on commuter freeways in the Austin area, and invite all Texas mayors to conference in Austin about funding for Texas highways through Texas cities.  It has been around 30 years since the fuel excise tax was adjusted, and the state is crying poor.  The fuel excise tax and weight / axle based registration fees are the best way to fund county roads and highways.

Todd Phelps:
Irrespective to Project Connect and as someone who grew up in Austin, my vision is for Austin to become the world’s example of a 21st century public transit example that is the envy of all. An Austin that has a transit system which is extremely efficient in function that is also aesthetically pleasing and beautiful in form.