History & Governance of Funding Sealy EDC

Sealy Economic Development Corporation
330 Main Street Suite 8 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.

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.