03-04-04 La Porte Development Corporation Minutes

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Economic Development Sales W (96-302) Page 3 of8 sales tax to clean up contaminated project sites. A corporation created under ~4A cannot assume, or pay principal or interest on, debts that existed before the city created the corporation. ~4B Sales Tax The tax provides cities with a wider range of uses for the tax revenues because it is intended to give communities an opportunity to undertake a project for quality of life improvements, including economic development that will attract and retain primary employers. Cities may use money raised by this sales tax for a wide variety of projects including land, buildings, equipment, facilities expenditures and improvements related to projects defined in Section 2 of the Act (same uses as authorized for ~4A) or found by the board of directors to be required or suitable for use for: . professional and amateur sports (including children's sports) and athletic facilities; tourism and entertainment facilities; convention and public park purposes and events, (including stadiums, ballparks, auditoriums, amphitheaters, concert halls, parks and open space improvements, museums, exhibition facilities); . related store, restaurant, concession, parking and transportation facilities; . related street, water and sewer facilities; and . affordable housing. To promote and develop new and expanded business enterprises that create or retain primary jobs, a city may provide: . public safety facilities; . recycling facilities; . streets and roads; . drainage and related improvements; . demolition of existing structures; . general municipally owned improvements; . maintenance and operating costs associated with projects; and . any other project that the board determines will contribute to the promotion or development of new or expanded business enterprises that create or retain primary jobs. Before spending g4B sales tax revenue, a corporation is required to hold at least one public hearing on the proposed project that will be funded by this tax. ~4B corporations may, following a separate election to gain voter approval, spend their ~4B sales tax for a water supply, water conservation program or to clean up contaminated project sites. Reporting Requirements of ~4A and ~4B Corporations The 1997 Legislature added g4C to the Development Corporation Act requiring ~4A and g4B corporations to file an annual report with the Texas Comptroller of Public Accounts by February 1. The report must include the corporation's economic development objectives, total revenues and expenditures for the preceding fiscal year, a breakdown of these expenditures and a list of the corporation's assets. The report form and instructions for http://www.window.state.tx.us/taxinfo/taxpubs/tx96 _ 302 .html 8/1712004