On February 25, 2025, the McKinney grant committee convened to discuss significant changes to the city's hotel occupancy tax (HOT) grant program, aimed at enhancing the effectiveness of funding for local events. The meeting highlighted the need for a more structured approach to ensure that grant funds are utilized efficiently and effectively to generate overnight stays in McKinney.

The committee reported that over the past three years, $81,750 had been distributed through the event marketing grant, resulting in only 72 room nights generated. This raised concerns about the effectiveness of the current grant guidelines, as many applicants reported zero room nights. In response, the committee proposed new criteria to better align with state standards and to maximize the impact of the HOT funds.

One of the key changes is the introduction of a minimum requirement of 25 room nights for events to qualify for grant funding. This threshold was set after reviewing practices from other cities, where the common minimum was found to be 50 room nights. The committee decided to lower this figure to accommodate local conditions while still encouraging events that attract overnight visitors.

Additionally, the grant application process will now be simplified. Instead of a marketing reimbursement model, funding will be based on actual room nights generated, verified through hotel reports. This shift aims to reduce paperwork and streamline the application process, allowing for quicker approvals. The committee also eliminated the previous two-cycle application system, transitioning to a rolling grant process that enables applicants to submit requests as needed.

The committee emphasized that these changes are designed to foster growth in local events and ensure that funding is directed toward initiatives that can demonstrate a tangible increase in hotel occupancy. The new guidelines will also encourage events to develop marketing strategies that target visitors from outside the immediate area, thereby enhancing the potential for overnight stays.

As the committee prepares to implement these changes, they expressed optimism about the positive impact on McKinney's tourism and hospitality sectors. The revised grant program is expected to be live on the city’s website shortly, with a press release to announce the updates and encourage event organizers to apply.

In conclusion, the meeting underscored a proactive approach to enhancing McKinney's event funding strategy, aiming to better serve the community and stimulate local economic growth through increased tourism. The committee remains committed to monitoring the effectiveness of these changes and is open to further adjustments based on the outcomes observed in the coming years.