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Types of Economic Development Projects
Purpose: This
section summarizes the major types of economic development projects
supported by the JTEDC and the priority assigned to each for purposes
of funding:
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Priority
1 – the most favored type of project – i.e., creates new
private sector jobs.
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Priority 2 – less desirable
than priority 1 projects, but preferable to priority 3 type projects.
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Priority
3 – generally projects
of a public nature, which do not create private sector jobs.
Private Sector Projects (Priority 1)
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Creates new private
sector “primary jobs”. See
the State law definition on page 42 of the Handbook on Economic
Development Laws for Texas Cities, included in this packet and
also found by clicking:
https://www.oag.state.tx.us/AG_Publications/pdfs/2006econdevhb.pdf
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Adds value to the
community’s property tax base and results in the collection of
additional property tax.
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Results in increased
sales tax collections.
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Some demands on municipal
services will be created (e.g., water and sewer), for which payment
will be made to the City; however, the hiring of additional City
employees is not required.
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An example of such a
project would be a profit-making business that creates “primary
jobs”.
Hybrid Projects (Priority 2)
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More akin to a public
sector project (see Priority 3 project description above), but can
bring more business to a community; thereby, benefiting local
businesses and resulting in the collection of additional sales taxes.
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Likely to result in
property being removed from the tax base.
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May or may not require
the hiring of additional City employees, depending on how the project
is structured.
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Brings additional
business to existing businesses, creates conditions favoring the
creation of new businesses, and results in the collection of
additional sales tax.
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An example of such a
project would be a visitor center operated for the purpose of bringing
new visitors to the area.
Public Sector Projects (Priority 3)
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Does not create new
private sector primary jobs.
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Removes a property from
the community’s property tax base – i.e., property taxes are no
longer paid on the property.
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Adds to the
responsibilities of the City – e.g., creates an additional workload
for current City employees, the hiring of additional City workers,
and/or makes the City responsible for the upkeep and care of a
property of facilities.
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Serves primarily a
community social purpose.
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Depending on the type of
project, it could result in the collection of some additional sales
tax.
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An example of such a
project would be a recreational facility.
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