The council voted in November to authorize a grant of up to $60,000 based on $10 per room night booked by festival attendees.
Aschelle Morgan, One Spark community outreach and engagement manager, attended Thursday to address the council and said that while only 385 rooms were tracked as being booked for the April 17-21 event, the event had a much greater impact on the local hospitality industry and economy.
Morgan said revenue from the hospitality tax on hotel rooms was up 17 percent in April compared to April 2012, which equates to 1,380 room nights.
She also presented testimonials from Downtown businesses to support the positive economic impact of One Spark.
Bill Prescott, who serves on the One Spark advisory board, said many attendees booked hotel rooms through online vendors rather than traditional channels that are tracked and easily documented.
He estimated there were more than 3,000 room nights generated by the event.
Prescott said the estimated attendance for the five-day festival was 130,000 and 46,000 people rode the Skyway during One Spark.
Prescott also cited the national and international exposure One Spark and the city received.
"I can't think of any event in the past 5-10 years that meant so much to Jacksonville," he said.
Paul Astleford, Visit Jacksonville president and CEO, the council's marketing arm, said One Spark was not like an organized convention with registered attendees.
He said that made it difficult to arrive at an accurate count of room nights booked because of the festival.
Sonny Bhikha, a council member who owns hotels at the Beaches, said that while he didn't experience increased business from One Spark at his properties, he supported awarding the maximum grant amount.
"One benefit of One Spark is it's a multiple-night event. It's something that's growing. It can be a signature event for Jacksonville," he said.
City Council President Bill Gulliford, who serves as council chair, said "new projects demand seed money" to establish their value.
He said that unless the Council Finance Committee amends the proposed 2013-14 City budget, next year's One Spark festival, scheduled in April, is a $1 line item.
One Spark Executive Director Joe Sampson did not attend the meeting, but said Thursday the approval of the entire grant amount "showed a lot of forward thinking" by the council and the reconsideration was a vote of confidence in the future of the event.
"They saw the difference One Spark made for the city," he said.
In his report to the Council, Astleford said the hospitality industry in Northeast Florida is on the rebound.
Hotel revenue is up $6.5 million this year compared to last, with demand increased by 48,000 room nights and a $4 increase in the average daily rate.
He said Visit Jacksonville achieved 116 percent of its goal of 176,000 group sales room nights booked.
"We're well above 200,000 room nights," he said.
The Duval County Tourist Development Council on Thursday reconsidered the terms of a grant and approved a $60,000 contribution to the inaugural One Spark crowdfunding festival.