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11.20.2025 EDC Agenda Packet TOWN OF TROPHY CLUB ECONOMIC DEVELOPMENT CORPORATION REGULAR MEETING AGENDA November 20, 2025 6:00 PM Council Chambers 1 Trophy Wood Drive Trophy Club, Texas 76262 CALL TO ORDER AND ANNOUNCE A QUORUM PUBLIC COMMENT(S) This is an opportunity for citizens to address the Board/Commission on any matter pursuant to Texas Government Code Sec. 551.007. The Board/Commission is not permitted to discuss or take action on any presentations made concerning matters that are not listed on the agenda. Presentations are limited to matters over which the Board/Commission has authority. Speakers have up to three (3) minutes or the time limit determined by the Presiding Officer. Each speaker must have submitted their request to speak by completing the Speaker’s Form or may email tdixon@trophyclub.org REGULAR ITEMS 1. Consider approval of the September 22, 2025, Joint Town Council/Economic Development Corporation meeting minutes and the October 15, 2025, Economic Development Corporation meeting minutes. 2. Discuss the Economic Development Corporation Board's roles and responsibilities. 3. Discuss and consider the appointment of an EDC Board president, vice president, secretary, treasurer, and assistant secretary. 4. Discuss the Economic Development Corporation members’ role as the TIRZ Board. 5. Discuss state-compliant incentive programs for commercial projects. ADJOURN The Board/Commission may convene into executive session to discuss posted items as allowed by Texas Government Code Sections 551.071 through 551.076 and Section 551.087. Notice is hereby given that a quorum of the Town of Trophy Club Town Council may be in attendance at this meeting. The Town Council will not deliberate or take any action. CERTIFICATION I do hereby certify that the Notice of Meeting was posted on the official bulletin board at the Town Hall for the Town of Trophy Club, Texas, in a place convenient and readily accessible to the general public at all times on the following date and time: November 10, Page 1 of 86 2025, at 2:15 p.m., and said Notice of Meeting was also posted concurrently on the Town’s website in accordance with Texas Government Code Ch. 551 of the Texas Government Code. /s/ Tammy Dixon Tammy Dixon, Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682-237-2900, 48 hours in advance, and reasonable accommodations will be made to assist you. Page 2 of 86 ECONOMIC DEVELOPMENT CORPORATION COMMUNICATION MEETING DATE: November 20, 2025 FROM: Tammy Dixon, Town Secretary AGENDA ITEM: Consider approval of the September 22, 2025, Joint Town Council/Economic Development Corporation meeting minutes and the October 15, 2025, Economic Development Corporation meeting minutes. BACKGROUND/SUMMARY: The Town Council and Economic Development Corporation held a Joint Work Session on September 22, 2025, and the Economic Development Corporation held a Regular Meeting on October 15, 2025. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: N/A ATTACHMENTS: 1. 09.22.2025 Joint WS TC EDC Minutes 2. 10.15.2025 EDC Minutes ACTIONS/OPTIONS: Move to approve the September 22, 2025, Joint Town Council/Economic Development Corporation meeting minutes and the October 15, 2025, Economic Development Corporation meeting minutes. Page 3 of 86 Town of Trophy Club Joint Work Session Town Council and Parks & Recreation Board Meeting Minutes – September 22, 2025, 6:00 p.m. 1 Trophy Wood Drive, Trophy Club, Texas 76262 CALL WORK SESSION TO ORDER Mayor Tiffany called the work session to order at 6:00 p.m. and the Economic Development Corporation Board (EDC) at 6:23 p.m. after a quorum of the EDC was established. COUNCIL MEMBERS PRESENT Jeannette Tiffany, Mayor Rhylan Rowe, Mayor Pro Tem Stacey Bauer, Council Member Place 1 Jeff Beach, Council Member Place 2 Dennis Sheridan, Council Member Place 3 Garry Ash, Council Member Place 5 Steve Flynn, Council Member Place 6 ECONOMIC DEVELOPMENT CORPORATION BOARD MEMBERS PRESENT James Calaway, Secretary Greg Fox (arrived at 6:23 p.m.) Scott Hinshaw Joseph Longo ECONOMIC DEVELOPMENT CORPORATION BOARD MEMBERS ABSENT Teri Addington, President Allan Pedersen Garrett Wallace STAFF MEMBERS PRESENT Brandon Wright, Town Manager Tammy Dixon, Town Secretary Dean Roggia, Town Attorney Tamara Smith, Assistant to the Town Manager Chase Ellis, Director of Parks and Recreation Jason Wise, Fire Chief Matt Cox, Director of Community Development April Duvall, Director of Finance Denise Deprato, Director of Human Resources Patrick Arata, Chief of Police WORK SESSION ITEM Page 4 of 86 Town Council/EDC Joint Work Session Meeting Minutes – September 22, 2025 Page 2 1. Presentation and discussion on the small area plan for The Grove at TC. (Tamara Smith, Assistant to the Town Manager). Town Manager Brandon Wright presented background on the Small Area Plan for The Grove at Trophy Club, including its guiding principles—community space, connectivity, thriving businesses, and flexibility for future development. The discussion emphasized creating a vibrant mixed-use hub while maintaining adaptability for developers. Council and EDC members generally agreed the plan should remain broad enough to guide development without restricting private sector proposals. Feedback emphasized: • Avoiding multifamily rental housing, with any residential component limited to owner-occupied units. • Ensuring that green space is thoughtfully integrated into commercial development rather than designated as large stand-alone amenities. • Maintaining flexibility so the plan serves as a vision and marketing tool to attract developers, rather than a prescriptive site layout. • Addressing long-term challenges such as parking and connectivity. Mayor Tiffany invited public comment. The following residents spoke on potential impacts to adjacent neighborhoods, including building height, buffering, and traffic: Richard Beaty, 18 Hillcrest Court Jan Beaty, 18 Hillcrest Court Mike Evans, 20 Hillcrest Court Based on the discussion, staff will revise the draft Small Area Plan to clarify that any residential within mixed-use development must be owner-occupied, ensure references to green space reflect thoughtful integration into commercial opportunities, and maintain the plan as a flexible vision and marketing tool to guide future development. ADJOURNMENT Mayor Tiffany adjourned the work session at 7:00 p.m. ____________________________ Jeannette Tiffany, Mayor Attest: _______________________________ Tammy Dixon, Town Secretary Page 5 of 86 Town Council/EDC Joint Work Session Meeting Minutes – September 22, 2025 Page 3 ____________________________ Teri Addington, President Attest: _______________________________ Tammy Dixon, Town Secretary Page 6 of 86 Town of Trophy Club Economic Development Corporation Meeting Minutes October 15, 2025, 6:00 p.m., Regular Meeting 1 Trophy Wood Drive, Trophy Club, Texas 76262 CALL TO ORDER President Addington called the meeting to order at 6:01 p.m. EDC BOARD MEMBERS PRESENT Teri Addington, President Allan Pedersen, Vice President Greg Fox Joseph Longo EDC BOARD MEMBERS ABSENT James Calaway, Secretary Scott Hinshaw Garrett Wallace STAFF PRESENT Brandon Wright, Town Manager Tamara Smith, Assistant to the Town Manager Tammy Dixon, Town Secretary PUBLIC COMMENTS There were none. REGULAR ITEMS 1. Consider approval of the July 23, 2025, Economic Development Corporation Regular Meeting Minutes. Director Longo moved to approve the July 23, 2025, meeting minutes as corrected. Director Fox seconded the motion. VOTE ON THE MOTION AYES: Addison, Pedersen, Fox, Longo NAYES: None ABSENT: Calaway, Hinshaw, Wallace VOTE: 4-0-3 EXECUTIVE SESSION/OPEN SESSION Pursuant to the Open Meetings Act, Chapter 551, the Economic Development Corporation Board convened into a Closed Executive Session at 6:01 p.m. and reconvened into Regular Session at 6:18 p.m. in accordance with the Texas Government Code regarding: Page 7 of 86 EDC Meeting Minutes – October 15, 2025 Page 2 a. Section 551.087 Deliberation regarding economic development negotiations. 1. Discuss Thrive Business Grant Applications. No Action Taken. 5. Consider approval of submitted grant applications for the approved amounts under the Thrive Business Grant. Vice President Pedersen moved to approve the Thrive Business Grant application for Grace Development #1 in the amount of $20,000 and authorize the Town Manager to negotiate, and the Economic Development President and Town manager to execute a performance agreement with the applicant and recommend approval of same to the Town Council. Director Fox seconded the motion. VOTE ON THE MOTION AYES: Addison, Pedersen, Fox, Longo NAYES: None ABSENT: Calaway, Hinshaw, Wallace VOTE: 4-0-3 ADOURN President Addington adjourned the meeting at 6:19 p.m. _____________________________ Teri Addington, President ATTEST: ____________________________ Tammy Dixon, Town Secretary Page 8 of 86 ECONOMIC DEVELOPMENT CORPORATION COMMUNICATION MEETING DATE: November 20, 2025 FROM: Tamara Smith, MSL, Assistant to the Town Manager AGENDA ITEM: Discuss the Economic Development Corporation Board's roles and responsibilities. BACKGROUND/SUMMARY: The mission of the Trophy Club Economic Development Corporation (EDC) is to promote economic development within the Town and the State of Texas in order to eliminate unemployment and underemployment, and to promote and encourage employment and the public welfare of, for, and on behalf of the town by undertaking, developing, providing, and financing projects under the Economic Development Act and as defined in Section 4B of the Act. The EDC is responsible for designing a strategy each year for the expenditure of the 1/2 cent sales and use tax receipts received by Trophy Club. These funds may be used for the purposes defined in the Development Corporation Act. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: N/A ATTACHMENTS: 1. Presentation ACTIONS/OPTIONS: This agenda item is being presented for discussion purposes only. No action will be taken by the Economic Development Corporation Board. Page 9 of 86 Economic Development Corporation Board Roles and Responsibilities Page 10 of 86 Purpose and Authority of the EDC Page 11 of 86 The Trophy Club Economic Development Corporation (EDC) was created as a nonprofit public corporation to: •Promote, assist, and enhance economic development within the Town of Trophy Club. •Eliminate unemployment and underemployment and improve public welfare. •Finance and undertake projects that promote commercial, industrial, and manufacturing growth. •Carry out activities permitted under Section 4B of the Texas Development Corporation Act of 1979. Primary Purpose Page 12 of 86 Governance and Oversight •The Board manages and controls all property and affairs of the Corporation. •It operates subject to Town Council oversight and in accordance with the Articles of Incorporation, Bylaws, and state law. Roles and Responsibilities Page 13 of 86 Project Planning and Execution The Board develops, finances, and implements projects designed to promote economic growth. These projects may include: •Infrastructure improvements •Parks, recreation, and community facilities •Land acquisition for development •Industrial or commercial enhancement projects Roles and Responsibilities Page 14 of 86 Budget and Financial Management The Board prepares an annual budget, submitted to the Town Council for approval at least 60 days before the fiscal year begins. It authorizes expenditures only as approved by the Town Council. It manages all corporate funds, ensuring they are deposited, invested, and used according to Texas Law and Town policies. Roles and Responsibilities Page 15 of 86 Meeting and Reporting The Board holds regular and special meetings to conduct EDC business. It must report periodically to the Town Council on financial status and ongoing projects. The secretary records meeting minutes and maintains official EDC records. Roles and Responsibilities Page 16 of 86 Purpose and Authority of the EDC Page 17 of 86 President •Presides over meetings and directs overall operations. •Executes documents and represents the EDC in official matters. Vice President •Acts in the absence of the President and carries out delegated duties. Treasurer •Oversees funds, investments, and accounting. •Ensures compliance with state financial regulations and Town auding requirements. Secretary •Keeps all meeting minutes and records. •Certifies corporate documents and manages legal correspondence. EDC Duties Page 18 of 86 Functional Duties and Annual Planning The EDC is also tasked with: •Designing and executing an annual strategy for the use of sales and use tax receipts dedicated to economic development. (Budget) •Submitting an annual economic development plan and oversight report to the Town Council by August 1st of each year. (Business Plan) •Engaging in partnerships or agreements to enhance development opportunities, subject to Council approval. EDC Duties Page 19 of 86 Questions Page 20 of 86 social media | email | website Page 21 of 86 ECONOMIC DEVELOPMENT CORPORATION COMMUNICATION MEETING DATE: November 20, 2025 FROM: Tammy Dixon, Town Secretary Tamara Smith, MSL, Assistant to the Town Manager AGENDA ITEM: Discuss and consider the appointment of an EDC Board president, vice president, secretary, treasurer, and assistant secretary. BACKGROUND/SUMMARY: According to Article III, Section 1 of the Bylaws of the Trophy Club Economic Development Corporation, "The Officers of the Corporation shall be a president, vice president, and secretary and a treasurer, and such other officers as the Board may, from time to time, elect or appoint." Section 6, which pertains to the naming of Board members, specifies: "The president, each vice president, and the secretary shall be named from among the members of the Board. The treasurer and any assistant secretaries may, at the option of the Board, be persons other than members of the Board, but they may be employees of the Town." The EDC meeting scheduled for November 20, 2025, marks the second meeting following the Council's appointment of the new board members. During this meeting, the board will take on the task of selecting a board member to serve as the president, vice-president, treasurer, secretary, and assistant secretary for the term spanning from October 20, 2025, to September 30, 2026. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: N/A ATTACHMENTS: 1. EDC Incorporation ACTIONS/OPTIONS: Staff recommends that the EDC Board appoint an EDC Board president, vice president, and secretary from among the Board members. Additionally, staff recommends the Board nominate the Town Manager and/or his designee as Treasurer and nominate the Town Secretary and/or her designee as Assistant Secretary. Page 22 of 86 Page 23 of 86 Page 24 of 86 Page 25 of 86 Page 26 of 86 Page 27 of 86 Page 28 of 86 Page 29 of 86 Page 30 of 86 Page 31 of 86 Page 32 of 86 Page 33 of 86 Page 34 of 86 Page 35 of 86 Page 36 of 86 Page 37 of 86 Page 38 of 86 ECONOMIC DEVELOPMENT CORPORATION COMMUNICATION MEETING DATE: November 20, 2025 FROM: Tamara Smith, MSL, Assistant to the Town Manager AGENDA ITEM: Discuss the Economic Development Corporation members’ role as the TIRZ Board. BACKGROUND/SUMMARY: At the June 23, 2025, Town Council Meeting, the Town Council appointed the Economic Development Corporation (EDC) Board to serve as the Tax Increment Reinvestment Zone (TIRZ) Board. The TIRZ is an economic development tool which is designed to attract investment and redevelopment by dedicating the increase in property tax revenues, known as the tax increment, to funding public infrastructure improvements. When a TIRZ is established, a base property value is set. As property values increase due to development, the additional tax revenue generated from the base is deposited into a dedicated fund. These funds may be used to finance public improvements and economic development incentives, such as roadway and utility projects, within the zone. Once the TIRZ expires, all tax revenues revert to the general taxing authorities. Background The Town of Trophy Club formally created TIRZ #1 in 2013 through Ordinance No. 2013-23, following initial groundwork laid in 2007. The zone encompasses the area surrounding Trophy Wood Drive and State Highway 114 and is set to expire in 2034, or earlier if specific conditions are met. The TIRZ has supported several development projects through developer participation agreements. Notably, the Bread Winners and HG Sply projects received reimbursements based on a percentage of the zone’s incremental revenue, with final payments made in December 2024 totaling $1,047,334. As of the end of 2024, the TIRZ fund balance was approximately $70,000. Connection to the Small Area Plan The Small Area Plan includes significant portions of land already located within TIRZ #1. The same financing structure could be expanded to support future development projects. The TIRZ Page 39 of 86 boundary may also be extended to include additional portions of the Small Area Plan area, subject to approval by both the TIRZ Board and the Town Council. In addition to TIRZ funding, the EDC maintains a separate tax revenue fund that can serve as a complementary funding source. As of September 30, 2024, the EDC fund balance was approximately $2.5 million. Governance and Structure The TIRZ Board currently oversees the Tax Increment Financing Plan for the area surrounding Trophy Wood Drive and SH 114. Under State law, the Town Council may serve as the TIRZ Board, a practice often used to strengthen fiscal oversight and ensure alignment with municipal priorities. Alternatively, the EDC Board may continue serving in this capacity, as it has previously managed the TIRZ. Although the Town Charter generally prohibits Council Members from serving on other boards or commissions, State law supersedes that provision for TIRZ Boards, expressly allowing Council Members to serve. On June 23, 2025, Town Council direction was to appoint the EDC Board members to the TIRZ Board. Membership Requirements The TIRZ Board will consist of eight (8) members, the seven (7) members of the EDC Board, plus one (1) representative appointed by Tarrant County, if the County opts to participate. This structure would be authorized under Ordinance No. 2013-23 and the existing interlocal participation agreement. Applicable Statute Texas Tax Code, Section 311.009(a) states: “The board of directors of a reinvestment zone consists of at least five and not more than fifteen members... Each taxing unit other than the municipality or county that designated the zone that levies taxes on real property in the zone may appoint one member of the board if the taxing unit has approved the payment of all or part of the tax increment produced by the unit into the tax increment fund... The governing body of the municipality or county that designated the zone may appoint not more than ten directors to the board; except that if there are fewer than five directors appointed by taxing units other than the municipality or county, the governing body may appoint more than ten members, provided the total membership does not exceed fifteen.” BOARD REVIEW/CITIZEN FEEDBACK: N/A Page 40 of 86 FISCAL IMPACT: N/A LEGAL REVIEW: N/A ATTACHMENTS: 1. Presentation ACTIONS/OPTIONS: This agenda item is being presented for discussion purposes only. No action will be taken by the Economic Development Corporation Board. Page 41 of 86 Trophy Club Tax Increment Reinvestment Zone (TIRZ) Page 42 of 86 TIRZ Zone Page 43 of 86 A Tax Increment Reinvestment Zone (TIRZ) is a special area set up to encourage new investment and redevelopment. When property values in the zone go up, a portion of the extra property tax revenue (called the tax increment) is collected and used to pay for public improvements—like roads, utilities, and other projects that make the area better for businesses and residents. TIRZs help stimulate growth in areas that might not attract development on their own. TIRZ Zone Page 44 of 86 TIRZ Zone 2014 Anticipated Development Page 45 of 86 TIRZ Zone 2025 Developed Zoning Map Page 46 of 86 TIRZ Creation and Financial Standing Page 47 of 86 • 2007: Resolution 2007-01 laid groundwork with tax abatement guidelines. • 2013: Ordinance 2013-23 officially created Reinvestment Zone Number One. • 2014: Ordinance 2014-01 approved the Project and Financing Plan. • 2016: Ordinance 2016-24 amended the budget and incentive agreements. Trophy Club TIRZ Creation Page 48 of 86 Trophy Club TIRZ#1 Effective Date: August 19, 2013, after adoption of Ordinance 2013-23 Expiration Date: The earlier of (i) December 31, 2034, or an earlier termination date designated by an ordinance adopted after the effective date of this Ordinance or (ii) the date on which all project costs, tax increment bonds and interest on those bonds have been paid in full. Page 49 of 86 TIRZ Developer Agreements Tract 2, Lot 2R-2 (Bread Winners) with developer OTD, TC, LLC Zone will pay to Developer the Zone Reimbursement at a rate of 22.4966% of total incremental revenue generated from the entire Zone for twenty (20) years, or until such time as a maximum principle amount of $592,667.89 and all interest which Developer had paid to a third party, is paid to Developer in Zone Reimbursements, whichever occurs first. Such payments shall be collateral and made annually in December. Tract 1, Lots 1 and 2 (HG Sply) with developer OTD TC Compound, LLC Zone will pay to Developer the Zone Reimbursement at a rate of 12.5034% of total incremental revenue generated from the entire Zone for twenty (20) years, or until such time as a maximum principle amount of $407,332.11 and all interest which Developer had paid to a third party accumulated is paid to developer in zone reimbursements, whichever occurs first. Such payments shall be made annually in December. Final payment fulfilling the commitment of the TIRZ paid in December 2024 – Final funds disbursed $1,047,334. Page 50 of 86 TIRZ Fund balance as of 12/31/2024 approx. $70,000 Page 51 of 86 TIRZ Purpose, Responsibilities, Term Page 52 of 86 The TIRZ Board of Directors is created to help manage and oversee the development and financial operations of the Reinvestment Zone Number One in Trophy Club. The Zone’s goal is to promote economic development and reinvestment in this specific area of town. Page 53 of 86 Composition of the Board •The Board consists of five (5) members. •On June 23, 2025, the Town Council moved to direct staff to change the membership of the TIRZ board to align with the EDC board members. •Each taxing unit (Tarrant County) that contributes funds to the TIRZ may appoint one member but is not required to do so. •The Town Council appoints the remaining members as needed and selects the chairperson. •Members serve staggered two-year, with some initial members serving one-year terms to start. Page 54 of 86 Main Responsibilities Board member serve in an advisory and planning capacity, not as independent decision-makers. TIRZ board member duties are: •Making recommendations to the Town Council on how the Zone is managed and operated. •Preparing and adopting a project plan and reinvestment zone financing plan. (Project Plan was adopted in 2014) •These plans outline proposed public improvements and the financing strategy. •Once adopted, the Board submits these plans to the Town Council for approval. •Overseeing administration and operation of the zone in line with Chapter 311 of the Tax Code. Page 55 of 86 • Public infrastructure improvements • Incentive agreements for development • Administrative costs related to TIRZ operation Approved Uses Page 56 of 86 Powers the Board Does Not Have The Board cannot: •Issue bonds or other debt instruments. •Impose taxes or fees. •Exercise eminent domain (the power to take property for public use). •Give final approval to the project or financing plan (that power remains with the Town Council). Page 57 of 86 Term and Impact The TIRZ—and therefore the Board—exists until December 31, 2034, or until all financial obligations of the Zone are met. The Board plays a key role in ensuring that the Zone’s projects are implemented responsibly and in the public interest, while the Town retains final authority. Page 58 of 86 Small Area Plan 1.A significant portion of the land within the Small Area Plan Project falls under the boundaries of TIRZ #1. 2.TIRZ is a tool to encourage new development and redevelopment. Page 59 of 86 Questions Page 60 of 86 social media | email | website Page 61 of 86 ECONOMIC DEVELOPMENT CORPORATION COMMUNICATION MEETING DATE: November 20, 2025 FROM: Tamara Smith, MSL, Assistant to the Town Manager AGENDA ITEM: Discuss state-compliant incentive programs for commercial projects. BACKGROUND/SUMMARY: One of the Town Council’s Strategic Plan objectives for supporting business is to develop policies that foster a positive business environment and enhance Trophy Club’s commercial aesthetics and cohesion. As part of this initiative, the Council aims to collaborate with the EDC to promote state-compliant incentive programs for commercial projects and establish clear business standards. During the FY 2026 Budget discussion, the EDC allocated $150,000 to support this effort. Tonight, the EDC Board will discuss potential focus areas and the types of initiatives the Board would like to pursue. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: For FY 2026, the EDC allocated $150,000 to incentive programs. LEGAL REVIEW: N/A ATTACHMENTS: 1. Presentation ACTIONS/OPTIONS: This agenda item is being presented for discussion purposes only. No action will be taken by the Economic Development Corporation Board. Page 62 of 86 Incentive Programs Page 63 of 86 Definition of Primary Job A job that is available at a company for which a majority of the products or services of that company are ultimately exported to regional, statewide, national, or international markets infusing new dollars into the local economy; and is included in one of the 16 NAICS sector codes: crop production, animal production, forestry and logging, commercial fishing, support activities for agriculture and forestry, transportation and warehousing, correctional institutions, utilities, scientific research and development services, securities commodity contracts and other financial investments and related activities, manufacturing, wholesale trade, management of companies and enterprises, information, telephone call centers, and mining. Page 64 of 86 Grant Incentives Page 65 of 86 Authority:Local Gov’t Code §§501.101–505.158 Description:The EDC can provide grants or loans to businesses that create or retain primary jobs or improve local business conditions. Requirements: •Must serve a public purpose (e.g., job creation, economic diversification). •Must include performance agreements (required by §501.158). •Recapture or claw-back clauses are required if job targets are not met. Common Uses: •Site development or building improvements •Equipment purchases for expanding industries •Job creation grants for qualifying employers Grant Incentives Page 66 of 86 Sec. 501.101 PROJECTS RELATED TO CREATION OR RETENTION OF PRIMARY JOBS. In this subtitle, "project" includes the land, buildings, equipment, facilities, expenditures, targeted infrastructure, and improvements that are: (1) for the creation or retention of primary jobs; and (2) found by the board of directors to be required or suitable for the development, retention, or expansion of: (A) manufacturing and industrial facilities; (B) research and development facilities; (C) military facilities, including closed or realigned military bases; (D) transportation facilities, including airports, hangars, railports, rail switching facilities, maintenance and repair facilities, cargo facilities, related infrastructure located on or adjacent to an airport or railport facility, marine ports, inland ports, mass commuting facilities, and parking facilities; (E) sewage or solid waste disposal facilities; (F) recycling facilities; (G) air or water pollution control facilities; (H) facilities for furnishing water to the public; (I) distribution centers; (J) small warehouse facilities capable of serving as decentralized storage and distribution centers; (K) primary job training facilities for use by institutions of higher education; or (L) regional or national corporate headquarters facilities. Grant Incentives Page 67 of 86 Sec. 505.158 PROJECTS RELATED TO BUSINESS DEVELOPMENT IN CERTAIN SMALL MUNICIPALITIES. (a)For a Type B corporation authorized to be created by a municipality with a population of 20,000 or less, "project" also includes the land, buildings, equipment, facilities, expenditures, targeted infrastructure, and improvements found by the corporation's board of directors to promote new or expanded business development. (b)A Type B corporation may not undertake a project authorized by this section that requires an expenditure of more than $10,000 until the governing body of the corporation's authorizing municipality adopts a resolution authorizing the project after giving the resolution at least two separate readings. Grant Incentives Page 68 of 86 Infrastructure Incentives Page 69 of 86 Authority:Texas Local Gov’t Code §§501.103 and 505.155 Description:The EDC can fund public infrastructure improvements that directly support new or expanding businesses. Eligible Projects: •Streets, drainage, water, wastewater, utilities, broadband, site prep, parking •Must be for a qualifying “project” (as defined by statute) Example:EDC pays for off-site improvements needed for a commercial development. Infrastructure Incentives Page 70 of 86 Sec. 501.103 CERTAIN INFRASTRUCTURE IMPROVEMENT PROJECTS. In this subtitle, "project" includes expenditures that are found by the board of directors to be required or suitable for infrastructure necessary to promote or develop new or expanded business enterprises, limited to: (1) streets and roads, rail spurs, water and sewer utilities, electric utilities, or gas utilities, drainage, site improvements, and related improvements; (2) telecommunications and Internet improvements; or (3) beach remediation along the Gulf of Mexico. Infrastructure Incentives Page 71 of 86 Sec. 505.155 PROJECTS RELATED TO BUSINESS ENTERPRISES THAT CREATE OR RETAIN PRIMARY JOBS. For purposes of this chapter, "project" includes land, buildings, equipment, facilities, and improvements found by the board of directors to promote or develop new or expanded business enterprises that create or retain primary jobs, including: (1) a project to provide public safety facilities, streets and roads, drainage and related improvements, demolition of existing structures, general municipally owned improvements, and any improvements or facilities related to a project described by this subdivision; and (2) any other project that the board of directors in the board's discretion determines promotes or develops new or expanded business enterprises that create or retain primary jobs. Infrastructure Incentives Page 72 of 86 Tax-Related or Partner Incentives Page 73 of 86 Authority:Tex. Loc. Gov’t Code §§380.001 and 381.004 Description:Allows cities or counties to provide grants, loans, or rebates of taxes/fees to promote economic development. Use with EDC: •The EDC can fund or administer parts of a 380 Agreement. •The Town can layer its 380 tools with EDC grants for a stronger incentive package. Example:A property tax rebate combined with EDC-funded infrastructure. Tax-Related or Partner Incentives Page 74 of 86 Sec. 380.001 ECONOMIC DEVELOPMENT PROGRAMS. (a) The governing body of a municipality may establish and provide for the administration of one or more programs, including programs for making loans and grants of public money and providing personnel and services of the municipality, to promote state or local economic development and to stimulate business and commercial activity in the municipality. For purposes of this subsection, a municipality includes an area that: (1) has been annexed by the municipality for limited purposes; or (2) is in the extraterritorial jurisdiction of the municipality. (b) The governing body may: (1) administer a program by the use of municipal personnel; (2) contract with the federal government, the state, a political subdivision of the state, a nonprofit organization, or any other entity for the administration of a program; and (3) accept contributions, gifts, or other resources to develop and administer a program. (c) Any city along the Texas-Mexico border with a population of more than 500,000 may establish not-for-profit corporations and cooperative associations for the purpose of creating and developing an intermodal transportation hub to stimulate economic development. Such intermodal hub may also function as an international intermodal transportation center and may be colocated with or near local, state, or federal facilities and facilities of Mexico in order to fulfill its purpose. Tax-Related or Partner Incentives Page 75 of 86 Chapter 381 authorizes counties to establish and administer programs to stimulate business and commercial activity, and provide loans, grants, or services to businesses or other entities as economic development incentives. If the EDC wants to pursue a Chapter 381 partnership with Tarrant County, it can do so through an interlocal or economic development agreement, and that would allow Trophy Club to accept and coordinate incentives from the county if they’re working together on a joint development project. This is usually done when both the County and Municipality can benefit from the project. Or they are sharing costs or incentives. Tax-Related or Partner Incentives Page 76 of 86 TIRZ Incentives Page 77 of 86 Authority:Chapter 311, Tax Code Description:Captures the increase in property tax value (“increment”) in a zone to fund improvements in that area. Use with EDC:EDC can co-invest in infrastructure or enhancements in the zone. TIRZ Increment Page 78 of 86 What is a TIRZ? A Tax Increment Reinvestment Zone (TIRZ) is a designated area established to encourage new investment and redevelopment. It works by capturing the additional tax revenue (tax increments) generated from increased property values within the zone and reinvesting it to fund public improvements such as infrastructure, streets, and utilities. A TIRZ helps stimulate growth in areas that may not otherwise attract timely private development. Page 79 of 86 What is Tax Increment? When a Town creates a TIRZ, a record is made of all taxable value of property within that zone. The year the TIRZ is created is the base year. The appraised value of property within the zone during the base year is the base value. As development or redevelopment occurs, the appraised value of the property in the zone should increase. The difference between the increased appraised value and the base value is the captured appraised value . Page 80 of 86 Property Tax Abatement Incentives Page 81 of 86 Authority: Chapter 312, Tax Code Description: City, County, or other taxing entities may abate a portion of property taxes for a set time (usually 5–10 years). Use with EDC: The EDC can partner to provide supplemental grants or reimbursements. Property Tax Abatement Incentives Page 82 of 86 Compliance Checklist Page 83 of 86 Confirm the project qualifies under State Law. Include a written performance agreement. Obtain Town Council approval when required. Maintain transparency and reporting for EDC audits and the Comptroller’s database. Compliance Checklist Page 84 of 86 Questions/Discussion Page 85 of 86 social media | email | website Page 86 of 86