Bee Cave EDC reviews Type B economic-development powers, sets strategic-plan timeline

The Bee Cave Development Corporation received a training on the scope of Type B economic-development powers under the Texas Local Government Code and set a timetable to begin a strategic plan that will guide the board's budget recommendations.

Julie Pierson, who presented the training and identified herself on the record as the presenter and as holding a role with the City of Taylor, summarized the legal limits and permitted uses for Type B EDC funds. She told the board that Type B authorities allow smaller cities greater flexibility than Type A EDCs to fund certain community and amenity projects, including ‘‘land, buildings, equipment, facilities, and targeted infrastructure and improvements’’ and community amenities such as parks, stadiums, auditoriums, trails and related concessions and parking. Pierson noted that some uses (for example, water supply or cleanup of contaminated properties) may require voter approval.

Pierson also emphasized statutory limits on economic-development spending that seeks to promote or develop "primary jobs," a term she said is defined in statute and limited to certain NAICS categories. She said eligibility will be evaluated for each applicant through an impact analysis and staff report that identifies whether the activity meets the statutory test. "Type B really gave smaller cities more flexibility to add some other types of projects," Pierson said on the record.

The presentation addressed several practical constraints and existing city resources. Staff explained that road maintenance in Bee Cave is supported by a portion of a sales tax dedicated to road maintenance and that routine infrastructure maintenance is generally financed from that fund; by contrast, EDC funds would normally support new connectivity or capital projects. Board members asked if staff maintains a dashboard or prioritization tool for streets and utilities; staff said capital-project prioritization and condition-assessment work is performed by city staff and that the EDC's funding decisions would be coordinated through the city manager's office.

Board members discussed promotional spending limits. Pierson said the EDC can spend up to 10% of annual funds on promotional purposes and must meet attorney-general guidance for such expenditures. The board was told that any programs or expenditures must be approved by the Bee Cave City Council under state law and that council has access to the corporation's books and authority over director appointments and removals.

Staff noted Magnolia Theatre as an applicant that has received the new Request for Economic Development Funding packet; Pierson said the final draft of the packet had been reviewed by legal counsel and provided to the applicant. The board also discussed aligning priorities with the council and holding a joint meeting as part of the strategic-plan process.

On the record the board set a planning timeline that staff summarized as follows: kickoff at the next EDC session; a proposed joint meeting with city council in March (recorded as "March 0" on the meeting transcript); a staff draft to the board in April (recorded as "April 0"); and a final draft returned for approval in May (recorded as "May 0"). Pierson told the board the goal is to finalize the strategic plan in time to inform the EDC budget path by the July 1 bylaw deadline to submit a budget to the city.

No formal funding decisions were taken during the training; the board scheduled further work on the strategic plan and the Request for Economic Development Funding packet for a subsequent meeting.