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<br /> <br />DRAFT FEBRUARY 7, 2012 <br />Focus Area 1 – Expanded economic development toolkit. <br /> <br />La Porte Economic Development <br />Advantages / Disadvantages of Development Corporations <br /> <br />Corporation <br />Advantages <br />Development Corporations are <br />Can act with greater confidentiality and speed <br />sometimes structured the same way as <br />redevelopment authorities. The term <br />Can help to minimize and mitigate the effects of politics on <br />“development corporation” however, <br />development <br />usually connotes a higher degree of <br />Can more effectively deal with tax credits and solicit tax <br />autonomy from City government and is <br />deductible donations from foundations and philanthropic <br />often structured as a private or public- <br />entities <br />private non-profit organization. It is <br />Can act as pass-through vehicles for tax-exempt bonds <br />common for corporations to be <br />involved in activities other than just <br />Disadvantages <br />real estate development to include the <br />Typically exist as a self-supporting entity <br />administration of low-interest loan <br />Frequently suffer from a lack of dedicated public financing <br />pools that support business and <br />Some are not fully established, rather they are just off-shoots <br />economic development. <br />of existing organizations <br /> <br />Operating capital often derives from <br />Source: Kendig Keast Collaborative. <br />the ownership and management of real <br />estate assets, private donations, development and financing <br />La Porte Community Library <br />fees, and fees from tax exempt bonds and special taxes. The La <br /> <br />Porte Economic Development Corporation (EDC) is an example of <br />a development corporation already established in La Porte. It <br />offers a full complement of economic development programs <br />and incentives, which are primarily coordinated by the Economic <br />Development Division of the EDC. The Department and its <br />activities are funded through a collection of a one-half cent sales <br />tax (established in 1999), which must be spent on economic <br /> <br />development projects relating to capital investment and job <br /> <br />The La Porte Community Library is a <br />creation. The most recent activities include the re-nourishment <br />joint venture between the City of La <br />of Sylvan Beach, the ball fields at Pecan Park, the library, and <br />Porte (who is responsible for the <br />infrastructure improvements along Main Street. <br />building and furnishings) and the Harris <br /> <br />County Library System (who staffs and <br />La Porte Redevelopment Authority <br />4 <br />The City of La Porte Redevelopment Authority was set up as a <br />runs the library). Construction of the <br />local government corporation pursuant to the provisions of <br />library was facilitated by the EDC as one <br />5 <br />Chapter 394 of the Texas Local Government Code. The Authority <br />of its first projects. <br />is organized as a public, nonprofit corporation for the “purposes <br /> <br />Source: City of La Porte website. <br />of aiding, assisting, and acting on behalf of the City in the <br /> <br />4 <br /> The City of La Porte Redevelopment Authority was authorized by Resolution No. <br />2009-19 passed on December 11, 2000. <br />5 <br /> Texas Local Government Code, Title 12, Chapter 394. Also known as the Texas <br />Housing Finance Corporations Act of 1987. <br />5.6 <br /> <br />Chapter 5 <br /> <br />