The Floydada Economic Development Corporation (EDC) was incorporated in the State of Texas as a Type B non-profit in the year 2000 in accordance with the IRS Code 1986. Its establishment was designed to create primary jobs for the City of Floydada and the surrounding area. The Corporation is governed by a seven member Board of Directors that are appointed by the City Council of Floydada.
As a Type B Corporation in the State of Texas, the Floydada EDC can legally participate in a number of development efforts. Its mission is to develop promising economic opportunities using innovation, local resources, and a positive spirit that will promote the quality of life and guarantee the vibrancy of our area.
In the 1991 Legislative Session, the State Legislature authorized a new type of sales tax, a Section Type B sales tax. This legislation authorized a one-half cent sales tax to be used by certain cities to promote a wide range of civic and commercial projects. These include all permissible projects allowed by the Texas Development Corporation Act of 1979, Article 5190.6, Section 4A. Items that can be funded include, without limitations, development of industrial and manufacturing concerns, parks, auditoriums, learning centers, open space improvements, athletic and exhibition facilities and other related improvements and/or maintenance and operating costs of the publicly owned and operated projects.
The Section Type B tax also can be used to fund the provision of land, buildings, equipment, facilities, expenditures, targeted infrastructure and improvements that are for the creation or retention of primary jobs for projects such as manufacturing and industrial facilities, research and development facilities, military facilities, including closed or realigned military bases, transportation facilities, sewage or solid waste disposal facilities, recycling facilities, air or water pollution control facilities, distribution centers, small warehouse facilities, primary job training facilities for use by institutions of higher education, regional or national corporate headquarters facilities, eligible job training classes, certain career centers and certain infrastructural improvements that promote or develop new or expanded business enterprises.
However, the Section Type B tax can additionally fund projects that are typically considered to be community development initiatives. For example, authorized categories under Section Type B include, among other items, land, buildings, equipment, facilities, expenditures, and improvements for professional and amateur sports facilities, park facilities and events, entertainment and tourist facilities, and affordable housing. Also, the Section Type B tax may be expended for the development of water supply facilities or water conservation programs. However, in order to undertake a water supply facility or water conservation program, the facility or program has to be approved by a majority of the qualified voters of the city voting in an election called and held for that purpose. As of September 1, 2005, certain Section Type B development corporations are allowed to do projects that promote new and expanded business development, which could include retail projects.
Board of Directors