Economic Development Corporations (EDCs)

Subchapter C of Chapter 501 of the Texas Local Government Code details the types of “Projects” EDCs are authorized to undertake, including:

• • The land, buildings, equipment, facilities, expenditures, targeted infrastructure, and improvements that are:
    1. For the creation or retention of “primary jobs,” and
    2. Found by the board of directors to be required or suitable for the development, retention, or expansion of:
       • Manufacturing and industrial facilities;
       • Research and development facilities;
       • Military facilities, including closed or realigned military bases;
       • Transportation and parking facilities;
       • Sewage or solid waste disposal facilities;
       • Recycling facilities;
       • Air or water pollution control facilities;
       • Water facilities;
       • Distribution centers;
       • Small warehouse facilities capable of serving as decentralized storage and distribution centers;
       • Primary job training facilities for use by institutions of higher education; or
       •  Corporate headquarters facilities.
  • Infrastructure to promote businesses related to
    • Streets, rail spurs, utilities, drainage and related improvements,
    • Telecomms and internet improvements,
    • Beach remediation along the Gulf of Mexico

“Primary Job” does not refer to just any job and is defined in Section 501.002(12).

Type A:

• Infrastructure and industrial development focus.
• Can undertake traditionally Type B projects after an election.
• City can create only 1 Type A corp.

 Type B:

• “Projects” can affect the land, buildings, equipment, facilities, expenditures and improvements included in the definition of “Project” above.
• Subchapter D of TLGC Chapter 505 details the additional authorized projects.
• For a Type B corporation authorized to be created by a municipality with a population
  of 20,000 or less, “project” also includes the land, buildings, equipment, facilities,
  expenditures, targeted infrastructure, and improvements that promote new or expanded business development.

Other Resources:

• The Texas Comptroller of Public Accounts has a nice breakdown of Type A and B Economic Development Corporations and the different types of projects each is authorized to undertake.
• The Texas Economic Development Council gives annual awards to creative and successful EDC programs from around the state. Ultimately, it’s a list of good ideas. Check out Sugarland’s “Sweet Cash” program.
• Resolution of the City of New Braunfels, Texas approving an EDC project related to design of public trails.

 

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