EDC – De Leon Industrial Development Corporation Board

Community Profile

Board Members:

Joe Burnett, President

Gayle Stroud, Vice-President

Matthew Iley, Secretary/Treasure

Todd Anders

Ryan Sides

Teresa Baird, EDC Coordinator

Marilyn Harbour, City Representative

Budget: 

2010-2011 Budget

Meeting Dates & Time:

The De Leon EDC Board meets once a month on the second Tuesday at 5:30 pm at the De Leon City Hall Council Room.  Meetings are open to the public.

**Overview of the De Leon EDC**

• It is a 4A EDC which is restricted to manufacturing and industrial activity.

Oversight

• The City governing body and the Board of the EDC oversee the 4A Corporation
• The EDC Board; is made up of five (5) members with no statutory criteria for selection.
• It is require to have the approval from the City governing body for all projects
• Subject to public notice and hearing requirements

Local Implementation

• 4A sales and use tax of 1/4% approved by voters on May 3, 2003.
• Adopted by Council on May 8, 2003.
• Resolution was passed on April 8, 2003 providing the creatio of the EDC Board, approved the Articles of Incorporation and named the initial Board.
• Board’s first meeting and election of officers was April 8, 2003.
• Board meets once a month on the 4th Thursday of the month

Powers and Duties

• Generally, has all powers and duties of a non-profit corp.  except to extent are limited by or inconsistent with the Develpt. Corp. Act

Projects/Expenditures

• Receive 4A funds and funds under Chapter 380.002(b) & (c) of Local Gov’t Code
• Acquire, construct, improve, maintain, equip and furnish projects
• Sell, lease, make secured and unsecured loans; when selling, not subject to bidding reqs. of Local Got. Code, but must receive fair market value
• Grant lessee option to purchase
• Donate, exchange, convey, sell, or lease or personal property to an institution of higher education.
• Issue bods to defray all or part of cost of project; specific requirements
• Mortgage or pledge any or all of its projects
• Sue or be sued in corporate name
• Have corporate seal
• Make and alter bylaws consistent with law and article of incorporation
• Cease activity and terminate existence by voluntary dissolution
• Expend proceeds of the economic devlpt. tax for purpose authorized by Statute
• Costs for which expenditures can be made include the following:

1. 1. Land and facility improvements: cost of acquisition, construction, improvement, and expansion of land and buildings.
   2. Machinery and supplies:   the cost of machinery, equipment, inventory, raw materials and supplies.
   3. Financial transaction costs:  cost of financing charges, interest prior to and during construction, and necessary reserve funds.
   4. Planning costs:  cost of research and development, legal services, development of plans and specifications, surveys, and cost estimates; and other expenses necessary or incident to determining
   5. Cleanup costs:  the cost of cleaning up contaminated property ONLY IF approved by voters; statutory wording on the ballot.

• All such expenditures must be part of an approved project
• Projects is defined as follows:
  • Manufacturing and industrial facilities
  • Can expend funds for administrative expenses necessary to put a project into operation.
  • Can expend funds for administration of the EDC – staff and the EDC operational overhead
  • Can expend funds for required training for economic development officials
  • Can contract with other entities for provision of services or to carry out projects
  • Can obtain health insurance, liability coverage, workers comp coverage, property insurance coverage for directors and employees through City; City must probably be reimbursed
  • Can obtain retirement benefits for EDC staff through City Secretary
  • Can undertake projects outside of the City Secretary
  • May use reverse auction procedure for purchasing
  • Enforce agreements or mortgages
• Cannot
  • Expend funds except as authorized by statute; must be associated with project
  • Expend funds for maintenance and operating expenses of an ongoing project
  • Own or operate any project as a business except as lessor, seller or lender (is an exception related to closed military facilities)
  • Receive anything of value from City other than designated funds w/o reimbursing City
  • Exercise power of eminent domain except via action of City Board of Commission
• Non-Profit Corporation Act accounting and fiscal responsibility provisions apply
• Corp. Bylaws requires keeping records of account and for an annual financial audit
• Statute requires:
  • Annual report to State Comptroller’s office by Feb. 1 every year; form and content specified in statue
  • Regular reporting to City (Sections 21 and 23)
• Bylaws:
  • Annual report to City Council
• Training
  • 2001 addition to the Statute requires that beginning Jan. 2002, all economic development directors, city managers and/or city attorneys compete state approved training once every two years; failure to do so could result in $1000.00 fine.

• Oversight by City Council
  1. Appointment power
     • Discussed above, “…serve at the pleasure of the governing body.”
  2. Approval of projects
     • Section 21 of the DCA requires that the City governing body
       • Approve all programs and expenditures of the EDC
       • review financial statements of the corporation annually
     • Section 23 (a)(12) states that the powers of the corporation are subject to control of the governing body of the City at all times
  3. Access to books and records
  • • Section 21 of DCA requires that the City shall annually review financial statements of the corp. and will have access to the books and records of the EDC at all times.