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The 23-year-old former Livingston midfielder started the move which led to David Fox rifling the opening goal into the top corner of the Bantams net and, just before half-time, Hoolahan stroked home a penalty after Andy Morrell had been fouled in the box by Jermaine Johnson.
Hoolahan created two more goals after the break - both for Scottish striker Keigan Parker.
The first came from a delicate flick into the penalty area which Parker slotted beneath City keeper Donovan Ricketts and Parker's second came from a long throughball by Hoolahan.
Below-par Bradford, who started the match brightly enough, lost their way after the break and towards the end their fans chanted: "You're not fit to wear the shirt."
Jermaine Johnson managed a late consolation for City, firing low into the net when the home defence had gone AWOL, but things went from bad to worse for the visitors in stoppage-time.
Joe Brown, who was only in the side after David Graham pulled out at the last minute, was sent off after a clash with Blackpool centre-half Michael Jackson.