howeenterprise.com
Howe growth
Monday, February 9, 2015
Page #14
Continued from Page #6
Q: Does Howe have a Type A or Type B Economic Development Corporation? What is the difference? A: The City of Howe is set up as a Type B and have been since the mid-1990's. The Development Corporation Act of 1979 gives cities the ability to finance new and expanded business enterprises in their local communities through economic development corporations (EDCs). Chapters 501, 504 and 505 of the Local Government Code outline the characteristics of Type A and Type B EDCs, authorize cities to adopt a sales tax to fund the corporations and define projects EDCs are allowed to undertake. These Type A's and Type B's are also referred to as 4A and 4B. The Type A sales tax is primarily intended for manufacturing and industrial development. EDCs may use Type A revenue to fund land, buildings, equipment, facilities expenditures, targeted infrastructure and improvements for projects. Type B, which Howe is, 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. Q: What's the process of getting a business here? A: It's like drinking coffee with a fork. There are so many factors and some of those involve things without control such as private property being over-valued to sell to a big company, whereas, a fair market-value deal can make things move much quicker. Any possible deal between business and city will take a long time and will mostly end undone, unfortunately. The need for absolute confidentiality between prospects and the EDC are crucial. If a company deems the city unable to maintain confidentiality, then the deal could go south in a hurry. While the City Administrator's door is wide open to the public, there are certain things that must be kept out of the public due to those very reasons. Loose lips sink ships. It's true.
Photo by Michelle Carney
