By Karen Gleason
The 830 Times
Del Rio voters will go to the polls May 7 to seat four members of the city council, but they will also decide on what type of economic development corporation the city will have.
Del Rio City Council members on Jan. 25 approved an ordinance calling a special election to determine if local voters want to dissolve the existing Type A economic development corporation the city currently has and replace it with a Type B economic development corporation.
Del Rio voters in May 2016 created the city’s first Type A economic development corporation, which was funded by a sales and use tax of one-eighth of 1 percent.
If voters this year decide they want to establish a Type B economic development corporation, that same sales and use tax of one-eighth of 1 percent will be used to fund it instead with “no net increase in sales and use taxes collected by the city,” according to the ordinance.
But what exactly is a Type A economic development corporation, and what is a Type B economic development corporation?
An excellent overview of both can be found on the web site of the Texas State Comptroller at the following: https://comptroller.texas.gov/economy/local/type-ab/
The comptroller’s web site explains that Type A economic development corporations (EDCs) “are typically created to fund industrial development projects such as business infrastructure, manufacturing and research and development.”
The web site notes that “Type A EDCs can also fund military base realignment, job training classes and public transportation.”
The comptroller’s web site explains that Type B EDCs “can fund all projects eligible for Type A, as well as parks, museums, sports facilities and affordable housing.”
“However, Type B EDCs are subject to more administrative restrictions that Type A,” the web site reads.
Type A revenue may be used to pay for “land, buildings, equipment, facilities expenditures, targeted infrastructure and improvements for projects including manufacturing and industrial facilities, recycling facilities, distribution centers, and small warehouse facilities; research and development facilities, regional or national corporate headquarters facilities, primary job training facilities operated by higher education institutions, job training classes, telephone call centers and career centers not located within a junior college taxing district; certain infrastructure improvements that promote of develop new or expanded business enterprises; aviation facilities; commuter rail, light rail or commuter bus operations; port-related facilities, railports, rail switching facilities, marine ports, inland ports; and maintenance and operating costs associated with projects.”
Type B revenue may pay for all of the above, plus “land, buildings, equipment, facilities expenditures, targeted infrastructure and improvements for projects including professional and amateur sports and athletic facilities, tourism and entertainment facilities, convention facilities and public parks; related store, restaurant, concession, parking and transportation facilities; related street, water and sewer facilities; and affordable housing,” the state comptroller’s web site explains.
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Contact the author at delriomagnoliafan@gmail.com
