Brownwood City Council members will consider calling a May 7 special election for changing the Brownwood Economic Development Corp. to a different type of organization that would broaden the projects on which it could spend sales tax revenue, including retail development.
Council members will take up that topic when they meet at 9 a.m. Tuesday. If council members approve calling the election, voters will be asked to approve the replacement of the existing BEDC Type A with an organization known as a Municipal Development District (MDD).
Tuesday evening, Early City Council members will be given a presentation on types of economic development corporations. That presentation will be followed by “discussion and consideration of the City Council to proceed with reorganization” of the EEDC, the council’s agenda states.
The Early council meets at 6 p.m.
As a 4A corporation, the BEDC can spend sales tax revenue on manufacturing and industrial development, but not retail development, Brownwood City Attorney Pat Chesser told council members earlier this month.
Council members could have opted to ask voters to approve a Type B economic development corporation, which can spend money on retail and community development in numerous categories including land, buildings, facilities and improvements related to professional and amateur sports, athletic, tourist, convention, public park, affordable housing and water supply projects, Chesser said earlier.
Council members instead will consider calling the election for the creation of an MDD. Chesser said an MDD, which includes all of the 4A and 4B projects as well as a civic center hotel.
Changing the BEDC’s status to a 4B or an MDD has been a topic of discussion among city and BEDC officials for several years.
Changing the status requires the approval of voters, Chesser said earlier.