Performance Agreements
The White Oak Economic Development Corporation (EDC) may engage in any project authorized under Local Government Code Chapter 505 by way of a written performance agreement that includes the following:
The White Oak Economic Development Corporation (EDC) may engage in any project authorized under Local Government Code Chapter 505 by way of a written performance agreement that includes the following:
- A schedule of additional payroll or jobs to be created or retained;
- The capital investment to be made by the business enterprise; and
- The terms for repayment of the EDC's investment if the business fails to meet the performance requirements specified in the agreement.
It is ultimately the EDC Board's decision whether the applicant is given a low-interest loan or a grant as an incentive. The process begins when the applicant fills out and returns an Application for Assistance.
The Development Corporation Act allows Type B EDCs to provide incentives for projects related to creation or retention of primary jobs that are normally Type A projects. However, the Act allows more flexibility with the projects that a Type B EDC can offer where the creation or retention of primary jobs are not required. Texas Local Government Code §501.152-154 describes these projects in further detail.
Texas Capital Fund
The City of White Oak is considered a "nonentitlement" city and therefore is qualified to apply for a grant from the Texas Department of Agriculture's Texas Capital Fund. This is an economic development tool designed to provide financial resources for public infrastructure or real estate needed to assist a business that commits to create and/or retain permanent jobs. The real estate and/or improvements must be owned by the community and leased to the business. The application process is available on a monthly and competitive basis. Only units of general local government are eligible applicants. Click here for more information.
The City of White Oak is considered a "nonentitlement" city and therefore is qualified to apply for a grant from the Texas Department of Agriculture's Texas Capital Fund. This is an economic development tool designed to provide financial resources for public infrastructure or real estate needed to assist a business that commits to create and/or retain permanent jobs. The real estate and/or improvements must be owned by the community and leased to the business. The application process is available on a monthly and competitive basis. Only units of general local government are eligible applicants. Click here for more information.
Chapter 380 Economic Development Agreements
Chapter 380 of the Local Government Code authorizes municipalities to offer a limitless range of incentives designed to promote state or local economic development. Specifically, it allows for the provision of loans and grants of city funds, as well as the use of city staff, city facilities, or city services, at minimal or no charge, to promote local industrial, commercial, and retail business development. A city may condition the incentive upon the creation of employment, construction of improvements, continued operations in a city for a stated period, or other public consideration.
Chapter 380 of the Local Government Code authorizes municipalities to offer a limitless range of incentives designed to promote state or local economic development. Specifically, it allows for the provision of loans and grants of city funds, as well as the use of city staff, city facilities, or city services, at minimal or no charge, to promote local industrial, commercial, and retail business development. A city may condition the incentive upon the creation of employment, construction of improvements, continued operations in a city for a stated period, or other public consideration.
A municipality and a business prospect may tailor an economic development incentive agreement to address their unique needs. The agreement can be structured to promote a broad range of economic development programs, as long as:
- The program serves a public purpose
- The state legislature amended Article III, §52-a of the Texas Constitution in 2005 to allow for the creation of programs and making of loans and grants of public money for the public purposes of :
- Development and diversification of the economy of the state;
- The elimination of unemployment or underemployment in the state;
- The stimulation of agricultural innovation;
- The fostering of the growth of enterprises based on agriculture; or
- The development or expansion of transportation or commerce.
- The state legislature amended Article III, §52-a of the Texas Constitution in 2005 to allow for the creation of programs and making of loans and grants of public money for the public purposes of :
- The projects are funded by current revenue or authorized debt
- Funds used should include the amount in the city budget or funded through authorized proceeds. Bonds may be issued only if first authorized by voters in an election held on the issue.
- The municipality complies with its Charter and applicable statutes
- The City of White Oak is a home rule city governed by state statutes and its home rule charter. A particular action may not be prohibited by a state statute, but its charter may dictate otherwise.
Examples of 380 agreements include:
- Funding for the renovation of shopping center or other business facilities conditioned on the generation of a certain level of sales tax revenue with the use of the sales tax revenue to fund the grant.
- Use or loan of city personnel, equipment, and facilities for economic development projects.
- Lease of city owned land or buildings to business.
- Construction of roads, sewers, site or building improvements, or infrastructure improvements or funding for the same.
- Construction and development fees, e.g. building, plumbing.
- Funding for business acquisition of real property, improvements, equipment, and fixtures.
- Rent subsidies.
- Funding for relocation expenses, landscaping, or other amenities.
- Funding for advertising, promotion, marketing, travel, travel expenses, billboards, or advertisements for business.
- Providing or funding training and education for specific business or companies.
Texas Leverage Fund
The Texas Leverage Fund (TLF) allows economic development corporations to leverage future sales tax revenues to support job retention or creation. TLF loans provide flexible financing terms to match the unique needs of communities, with maturities of up to 15 years available. TLF loans are low-cost and EDCs are eligible to borrow four to five times their annual sales tax revenues.
The Texas Leverage Fund (TLF) allows economic development corporations to leverage future sales tax revenues to support job retention or creation. TLF loans provide flexible financing terms to match the unique needs of communities, with maturities of up to 15 years available. TLF loans are low-cost and EDCs are eligible to borrow four to five times their annual sales tax revenues.
Loan proceeds must be used to pay eligible costs of projects as defined by the Economic Development Act of 1979. Examples of eligible costs include land, buildings, machinery, equipment for manufacturing and industrial operations, sports, athletic, entertainment, and public park purposes and events.
Texas Product/Business Fund
The Texas Product/Business Fund provides asset back financing to companies currently doing business in the state. Texas companies or out-of-state/international companies doing business in the state are eligible to apply.
The Texas Product/Business Fund provides asset back financing to companies currently doing business in the state. Texas companies or out-of-state/international companies doing business in the state are eligible to apply.
The Texas Business Incentives and Programs Overview from the Texas Governor's office offers great information regarding state incentives and programs