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Sugar Land

Cultural/Entertainment District
Summary Sheet
 The Cultural/Entertainment District is a project that combines  If passed, the election propositions will not increase the sales
more than a decade of citizen surveys, parks master plans, City tax rate or impact residents’ property taxes.
Comprehensive Plans and Economic Development plans with
the efforts of a citizen task force; the combined input identifies  There are three venue taxes proposed for the development of
five specific venues to be developed by or on behalf of the City the Cultural/Entertainment District:
on approximately 1000 acres of undeveloped land near the Uni- 
Ticket Tax of up to 10% face value of the tickets sold
versity of Houston at Sugar Land campus. The City Council has in the Cultural / Entertainment District
adopted a conceptual master plan that identifies a 52-acre tract
currently leased by the city from the University of Houston as the 
Parking Tax of up to $3 per car. Would apply only to
anticipated location for the project and its initial development. parking in the Cultural / Entertainment District
Specific elements identified for the Cultural/Entertainment Dis- 
2% Increase in Hotel Occupancy Tax Rate. Rate would
trict are a minor league baseball stadium, indoor concert venue increase from current 7% to proposed 9%. Would apply
of 6,500 seats, festival site, full-service hotel and convention to all hotel rooms rented in Sugar Land
center, and cultural arts facility.
 The 4A Corporation, also known as the Sugar Land Develop-
 The City Council appointed a 25-member citizen task force in ment Corporation, is a non-profit corporation formed by the
May 2007 to develop a vision statement. That task force created City of Sugar Land through a public vote in 1993 to undertake
the initial vision statement for the City on which the specific economic development activities in Sugar Land. The 4A Corpo-
entertainment district components were included. The City ration can only be used for economic development purposes.
Council reconstituted the visioning task force in June 2008
to review the proposed funding tools. The task force recom-  Communities across the country have identified the benefits
mended City Council proceed with calling the election which of pursuing the development of entertainment districts to
has resulted in the four proposed ballot propositions. promote economic development and quality of life. In Texas,
there are at least seven communities currently considering or
 City Council called an election for Nov. 4 to allow voters to undertaking similar projects. Those communities include Al-
decide whether to utilize funds from the 4A Corporation and len, Cedar Park, Corpus Christi, Frisco, Grand Prairie, McKinney
venue taxes to fund the development of a Cultural/Entertain- and Round Rock.
ment District.

The four ballot propositions:


Proposition A Proposition B
Increases the authority of the CityÛs 4A Corporation Increases the authority of the CityÛs 4A Corporation
to be able to develop minor league baseball. to be able to develop a festival site and indoor
concert venue.

Proposition C Proposition D
If approved, creates special venue taxes for use in If approved, creates special venue taxes for use in
funding costs associated with the development of funding costs associated with the development of
minor league baseball. a festival site and indoor concert venue.

Election will be held on November 4

www.sugarlandtx.gov
Sugar Land
Cultural/Entertainment District
Frequently Asked Questions
Q. Will voting for this change the property tax rate? Q. What happens if I don’t vote for all of the ballot propositions?
A. No. The four ballot initiatives do not relate to property taxes. A. Only those propositions that received a majority of the vote
Further, the City Council has committed that residential prop- will be deemed to be approved. To pass all of the tools recom-
erty taxes will not be used in the development of the Cultural/ mended to the City Council all four must receive a majority
Entertainment District. In addition, the propositions will not vote in favor.
increase the sales tax rate.
Q. What is the 4A Corporation?
Q. What is the Cultural/Entertainment District? A. The 4A Corporation, also known as the Sugar Land Develop-
A. The Cultural/Entertainment District is a project that combines ment Corporation, is a non-profit corporation formed by the
more than a decade of citizen surveys, parks master plans, City City of Sugar Land through a public vote in 1993 to undertake
Comprehensive Plans and Economic Development plans with economic development activities in Sugar Land.
the efforts of a citizen task force; the combined input identifies
five specific venues to be developed by or on behalf of the City Q. Why doesn’t the City use the 4A Corporation funds to
on approximately 1000 acres of undeveloped land near the lower my property taxes?
University of Houston at Sugar Land campus. The City Council A. The 4A Corporation is a separate non-profit corporation that
has adopted a conceptual master plan that identifies a 52-acre by state law may only use its funds for economic development
tract currently leased by the city from the University of Houston purposes. Its funds may not be used for general City operations.
as the anticipated location for the project and its initial
development. Specific elements identified for the Cultural/ Q. What are the “Venue Taxes” proposed on the ballot and
Entertainment District are: how are they collected?
 Minor League Baseball Stadium
 Indoor Concert Venue of 6,500 seats A. There are three venue taxes proposed for the development of
 Festival Site the entertainment district. They are:
 Full-service Hotel and Convention Center  Ticket Tax of up to 10% face value of the tickets sold in the
 Cultural Arts Facility Cultural / Entertainment District.
 Parking Tax of up to $3.00 per car. Would apply only to
Q. How many ballot propositions are there? parking in the Cultural / Entertainment District.
 2% Increase in Hotel Occupancy Tax Rate. Rate would
A. There are four ballot propositions. Two for the 4A Corporation increase from current 7% to proposed 9%. Would apply to all
and two for the venue taxes hotel rooms rented in Sugar Land.
Q. What are the four ballot propositions? Q. If the vote is approved does it guarantee there will be minor
A. In summary: league base ball and/or an indoor concert venue in Sugar Land?
 Proposition A increases the authority of the City’s 4A A. No. Approval of the ballot propositions only provides the fund-
Corporation to be able to develop minor league baseball. ing tools to allow the City to negotiate to develop the proposed
 Proposition B increases the authority of the City’s 4A Corpo- venues.
ration to be able to develop a festival site and indoor concert
venue. Q. Is there already a deal in place to build a minor league
 Proposition C, if approved, creates special venue taxes for baseball stadium?
use in funding costs associated with the development of
minor league baseball. A. No. The City has completed a market assessment of the op-
 Proposition D, if approved, creates special venue taxes for portunities to develop a minor league baseball in Sugar Land
use in funding costs associated with the development of a and has received calls expressing interest in the community
festival site and indoor concert venue. from interested parties, but there is no agreement in place to
develop minor league baseball in Sugar Land at this time.
Q. Why are there four ballot propositions?
Q. Is there already a deal in place to build an indoor concert
A. The number and structure of the ballot propositions are deter- venue in Sugar Land?
mined by the laws of the state of Texas and the interpretations
by attorneys in the office of the Texas Attorney General. A. No. The City has completed a market assessment of the op-

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portunities to develop an indoor concert venue in Sugar Land
and has been in discussions with AEG for some time, but there Conceptual
is no agreement in place to develop the indoor concert venue at
this time.
Master Plan
Q. If the ballot propositions are approved will the sales tax
rate increase in Sugar Land?
A. No. The rate will not be affected.

Q. What is the Sales Tax Rate in Sugar Land today?


A. The total tax rate on sales in Sugar Land is 8.25% That 8.25% is
divided between the State of Texas and the City of Sugar Land.
The state of Texas keeps 6.25% and the City collects the other 2%

Q. Has there been any public input into the development of


the Cultural/Entertainment District?
A. Yes. The City Council appointed a 25 member taskforce of
community members in May of 2007 to develop a vision
statement. That taskforce created the initial vision statement
for the City on which the specific entertainment district
components. The City Council reconstituted the visioning
taskforce in June of 2008 to review the proposed funding tools.
The taskforce recommended City Council proceed with calling
the election which has resulted in the four proposed ballot
propositions.
 25 Member Citizen/Owner Taskforce
 12 Public Formal Actions/Discussions
 Council specific actions include:
 CC Workshops, MOU and approval of Visioning Statement
 CC Resolution No. 08-14 Entertainment District Concept
Plan
 4B Budget Adjustments
 Council Acceptance of Sugar Festival Funds from committee
for furtherance of development of the entertainment district
 CSL Contract for Concert Venue Feasibility Study
 CSL Contract for Baseball Feasibility Study
 CSL Council presentations on market assessment for both
indoor concert venue and minor league baseball
 Council reconstitution of the Visioning taskforce to
provide input to Council on venues and calling an election
 Visioning taskforce recommendation to City Council on
calling an election

Q. Is Sugar Land the first community to consider the


development of a Cultural/Entertainment District as
an economic development project?
A. No. Communities all over the country have identified the benefits
of pursuing the development of entertainment districts to pro- 1000-acre track identified by Visioning Task Force
mote economic development and quality of life. In Texas there for the Cultural/Entertainment District
are at least 7 communities currently considering or undertaking
similar projects. Those communities include Allen, Cedar Park,
Corpus Christi, Frisco, Grand Prairie, McKinney and Round Rock.

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