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:

  • Priority 1 – the most favored type of project – i.e., creates new private sector jobs.
  • Priority 2 – less desirable than priority 1 projects, but preferable to priority 3 type projects.
  • Priority 3 – generally projects of a public nature, which do not create private sector jobs.
Private Sector Projects (Priority 1)
  • 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/econdevhb2008.pdf
  • Adds value to the community’s property tax base and results in the collection of additional property tax.
  • Results in increased sales tax collections.
  • 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.
  • An example of such a project would be a profit-making business that creates “primary jobs”.
Hybrid Projects (Priority 2)
  • 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.
  • Likely to result in property being removed from the tax base.
  • May or may not require the hiring of additional City employees, depending on how the project is structured.
  • Brings additional business to existing businesses, creates conditions favoring the creation of new businesses,
  • and results in the collection of additional sales tax.
  • 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)
  • Does not create new private sector primary jobs.
  • Removes a property from the community’s property tax base – i.e., property taxes are no longer paid on the property.
  • 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.
  • Serves primarily a community social purpose.
  • Depending on the type of project, it could result in the collection of some additional sales tax.
  • An example of such a project would be a recreational facility.