Frequently Asked Questions

The City of Victoria’s 2024 Community Center and Fairgrounds Master Plan calls for an expansion that would allow Victoria to attract larger events like concerts and rodeos.  Additionally, the updated existing facility will also be able to hold multiple large private and community events at the same time. 

It was determined that the $35 million project could be financed by a combination of existing financial resources and one new additional option. The existing resources are certificate of obligation bonds from the City’s existing capital improvement plan, existing sales tax funds from the Victoria Sales Tax Development Corporation, and existing City hotel occupancy dollars. In addition, the Mayor and City Council have proposed creating a new Venue Tax on hotel rooms and car rentals. The Mayor and Council voted unanimously in February 2025 to ask Victoria voters to consider the Venue Tax on the May 3 election ballot to supplement the existing financial resources available in order to reach the $35 million needed for the full expansion and renovation.

The proposed expansion plans include the addition of a new 3,000-fixed-seat covered arena with the ability to increase capacity to 4,500 for concert style events. The renovation and reorganization of interior spaces within the existing Community Center would enable the current building to host several unique/large events simultaneously while also updating technological capabilities. The Master Plan also calls for updated lighting, sound, a kitchen, restrooms, air conditioning, and disability access to improve the patron experience. Lastly, site upgrades include enhancing the fairgrounds, lighting, adding RV hook ups, improving drainage and increasing parking availability. 

The Venue Tax is designed to create a source of funding to help finance venue projects as outlined by State Law. Our venue project is the Victoria Community Center.  The Venue Tax would be a 2 percent on hotel room nights in Victoria and a 5 percent daily tax on car rentals in the city.

The Venue tax will not affect any Victoria resident’s property tax rate or bill. It will be paid by those staying in hotels inside city limits,  which are largely out-of-town visitors. The motor vehicle tax will be paid by anyone renting a car within Victoria city limits. 

Up to an estimated $35 million.

The new Venue Taxes are estimated to cover approximately $11 million of the total cost of $35 million. Other funding sources for the project will primarily include certificate of obligation bonds from the City’s existing capital improvement plan, existing sales tax funds from the Victoria Sales Tax Development Corporation, and existing City hotel occupancy tax dollars.

Improvements to the fairgrounds will include adding RV hookups, lighting, and permanent outdoor restroom facilities. Other general site upgrades include improved parking, lighting, and circulation flow.

Building a completely new facility that relocates and replicates what is currently existing would cost around $80 million, not including the cost of purchasing land, compared to $35 million to expand and renovate the existing Victoria Community Center.  

The Venue Tax will not affect the property tax rate and will be paid exclusively by anyone renting a hotel room or a renting avehicle in Victoria. Certificiates of Obligation (COs) are expected to be another funding source. However, costs associated with the COs are stemming from retiring debt. 

The new arena would be built behind the existing arena, with barn and stall access off to the immediate side.

The design would start in June 2025 and be completed by the end of the calendar year. Construction would begin in March 2026 at the conclusion of the 2026 Livestock Show. Substantial completion is expected by January 2027 in time for the 2027 Livestock Show. 

The Community Center's renovation is expected to occur in phases. This will allow the facility to continue to host public and private events.

North Street is currently being scheduled in the Capital Improvement Plan. The section of North Street in front of Patti Welder Middle School between Laurent and Ben Jordan is being prioritized and will be rebuilt in 2026-2027. It is expected that the section of North Street in front of the Community Center will occur after that. 

No. Both of the new venue taxes being considered are regulated by state law and must be used for improvements of the adopted venue project, the Victoria Community Center. 

In 2024, Victoria had over 3,000 hotel room night stays from events alone, and the Community Center itself had more than 11,000 visitors who traveled more than 50 miles to come here.

Bexar, Cameron, McLennan and Harris are among the Texas counties that also charge a 5 percent Venue Tax on motor vehicle rentals. The City of San Antonio charges a 2 percent Venue Tax on hotel rentals that was used for their Convention Center expansion.

On the contrary, the Venue Tax will help the City to fund this project without taking away funds from other important projects. In essence, the venue tax creates a new funding source that will have little to no impact on our residents, allowing existing funds to be used for roads, salaries, and other ongoing City initiatives.

Event organizers looking for smaller venues will still have options at other businesses and locations across Victoria. However, the largest alternative venue for a concert or staged presentation has a fixed seating capacity of 3,200. The new Community Center arena will be expandable up to 4,500, offering an option for larger events that was previously unavailable. Similarly, the new Community Center Expo Hall (former arena) will provide banquet space for 900+, offering a new option for larger banquets in Victoria.

The taxes can be retired but can also continue to be utilized for improvements of the venue project if the project is re-authorized.

The scope of this project focuses on the Community Center and immediate fairground area, only. Improvements to the Adult Sports Complex and any additional sports-centric field improvements in the adjacent area are not part of the scope of this project. Those improvements are to be considered at a later date.

No. All of the funding for this project is from specialized sources that must be used for specific purposes. Under state law, the Venue Tax can only be used for a venue project, existing hotel tax funds can only be used to promote tourism, and Victoria Sales Tax Development Corporation funds can only be used for community and economic development. Similarly, Certificates of Obligation (CO bonds) can only be used for one-time expenses/capital projects and cannot be utilized for salaries or any recurring expenditures.

Yes. The improvements to the facility—including technological improvements, reorganizing of spaces and expanded venue capacity—are intended to allow the facility to host many different types of events that could not be hosted before, as well as hosting multiple events at the same time.

The City considered the pros and cons of private investment in developing the upfront capital funding plan. We are planning to pursue naming rights opportunities in the future to generate ongoing revenue for operations and maintenance in order to keep rental costs low.

The $11M revenue projection is based on annual revenue produced by hotels and car rental businesses in Victoria. This revenue is estimated at approximately $700K per year, which will be used to pay off the referenced $11M cost over time.

The City is required to maintain a reserve in our debt service fund to help cover payments if annual revenues fall short for any particular year. This is how the City currently manages its existing debt service funds as well. The City has never had an issue of not being able to fulfill a debt service payment from this fund; however, if the reserve were to fall short, any additional funds needed would come from the overall Hotel Occupancy Tax fund, since the Venue Tax’s revenue bond mechanism is paid out of this fund.