Sealy Economic Development Corporation
Since 1979, Texas law has allowed cities to form economic development corporations to attract businesses and create job opportunities.
In 1989, the Legislature gave eligible cities the option of adopting a dedicated sales and use tax to fund many industrial development projects. Further legislation in 1991 recognized the need of some cities for funds to improve their appeal as places to live, work, and visit. This local sales and use tax became commonly known as the economic development sales tax.
On May 3, 1997, City of Sealy voters elected to adopt this additional sales tax under Section 4B of the Development Corporation Act of 1979. While the Section 4A tax is primarily intended for manufacturing and industrial development, the Section 4B tax provides cities with a wider range for the use of the tax revenues because it is intended to give communities an opportunity to undertake projects to provide for quality of life improvements, including economic development. In accordance with State law, the City created the Sealy Economic Development Corporation (SEDC) and appointed a board of directors to administer the Section 4B sales tax revenues. The City began collecting the additional half percent economic development sales tax effective October 1, 1997.
Grants & Incentives
Business Improvement Grant Program
The Business Improvement Grant Program aims to promote business growth in Sealy by offering grants to fund improvements that lead to increased business activity. If you’re starting a new business or expanding an existing one and planning to upgrade your façade or signage, you might want to apply for this grant from the Sealy EDC. If you are currently located or looking to locate in the Downtown District area, we have a grant category to assist with permanent plumbing and electrical improvements in addition to the above-referenced grants. If you have any questions regarding this program please contact the Sealy Economic Development Corporation.
- Click to view the Historic District and Business Improvement Grant Program Guidelines and Criteria
- Click to view and complete the Historic District and Business Improvement Grant Program Application
- Downtown District Map
Completed applications must be submitted to the Executive Director on or before the first Tuesday of each month to be considered at the next regular SEDC board meeting. Late applications will not be accepted. The board meets on the third Tuesday of each month.
Please note: No grant will be awarded for work that has been started, in progress, or completed. In addition, the grant APPLICANT is responsible for obtaining all applicable city permits related to the improvement project, and failure to do so will render the applicant ineligible to receive grant funding.
It is advised that ANY APPLICANT review their plans for improvements prior to applying for a grant with the City of Sealy Economic Development Corporation located at 313 Main Street Sealy, TX 77474 Phone: 979-627-6127
Business Incentives and Tax Abatement
The City of Sealy and the Sealy Economic Development Corporation have developed an economic development incentives package as a means of attracting commercial prospects to the Sealy area. We are committed to the promotion of quality development within the City and to improving the quality of life for its citizens. The City will consider providing incentives to appropriate businesses in accordance with the procedures and criteria outlined in the various policies. We strongly encourage that you discuss potential incentives with the City Manager early in the stages of development.
In furtherance of these purposes, the City of Sealy will, on a case-by-case basis, give consideration to providing economic incentives to applicants in accordance with the Chapter 380, Economic Development Incentive Policy. Please click on the following link to view the Chapter 380 policy that was approved by city council on May 12, 2021: City of Sealy Tax Abatement Policy 2021
If you are requesting financial assistance from the Sealy Economic Development Corporation, the applicant must submit a letter with the required supporting documentation. The below business information form must be completed and submitted to the Sealy EDC, prior to any construction or improvements to the proposed new or expanding project. Each project is evaluated on a case-by-case basis and subject to the availability of funds.
DISCLAIMER: The material contained in this section is provided for informational purposes only and cannot be construed as a commitment.
State of Texas Incentive And Financial Programs
The State of Texas offers a variety of incentives and programs to qualifying companies. We will work closely with the State of Texas incentive program representatives on potential qualifying projects.
DISCLAIMER: The material contained in the Summary of State Incentives is provided for informational purposes only and cannot be construed as a commitment.
Sealy Economic Development Corporation
313 Main Street, Sealy, TX 77474
Establishment, Funding Source & Governing of the Sealy EDC:
- The Texas Legislature adopted the Development Corporation Act of 1979 to give cities the ability to raise funds and finance economic and community development efforts through the creation of economic development corporations.
- The Texas Local Government Code chapters 501, 504, and 505 define the scope of economic development corporations.
- Corporations are either identified as “Type A” or “Type B” organizations depending on the authority approved by the voters as included in the election ballot language and by the type of sales tax revenue uses approved by the voters.
- The voters of the City of Sealy approved the formation of the Sealy Economic Development Corporation (Sealy EDC) in 1997.
- The Sealy EDC is considered a Type B corporation, funded by a one-half cent sales tax collection, as approved by the voters.
- Sealy EDC is incorporated as a nonprofit corporation for the purpose set forth in the Articles of Incorporation.
- In accordance with Sealy EDC bylaws, EDC Board of Directors shall be appointed by and shall serve at the pleasure of the Sealy City Council. The Board consists of seven (7) members who reside in Sealy, each serving two (2) year terms.
- The Sealy EDC Board meets monthly, on the 4th
- Sealy City Council Oversight Responsibilities Per Texas State Law, the Sealy City Council is to approve all programs and expenditures of the Sealy EDC and annually review any financial statements of the corporation; it is entitled access to all of the Corporation’s books and records at all times; (Texas Government Code, Section 501.073)
How Type B Sales Tax Revenue Can Be Used:
The Type B sales tax may be used for any project eligible under Type A rules and several other project types, including quality of life improvements. Type B corporations may pay for land, buildings, equipment, facilities, targeted infrastructure and improvements for:
- 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.
To promote and develop new and expanded business enterprises that create or retain primary jobs, a Type B EDC may fund:
- public safety facilities;
- recycling facilities;
- streets, roads, drainage and related improvements;
- demolition of existing structures;
- general municipally owned improvements; and
- maintenance and operating costs associated with projects.
Type B EDCs also may seek voter approval to spend Type B sales tax funds for a water supply, water conservation program or cleanup of contaminated property.
*Information taken directly from the Texas Comptroller website at comptroller.texas.gov
This list is not comprehensive and for informational purposes only.
Business Recruitment, Retention and Expansion Opportunities
If you are interested in opening a NEW business, EXPANDING your current business or would like to discuss BUSINESS RETENTION please call to schedule a meeting at your convenience.
Exceptions for Small Cities and Landlocked Communities
Type B EDCs created by cities with a population of 20,000 or less and those classified as landlocked communities may use sales tax proceeds to fund projects that promote new or expanded business development that do not create or retain primary jobs.