Bee Cave EDC receives Type B funding training and kicks off 2025 strategic plan

Board members attended a training session Feb. 25 that reviewed legal and procedural requirements for Type B economic development corporations and began a strategic-plan kickoff focusing on five priority areas.

A consultant retained for the EDC led a session titled “Funding and incentives for Type B EDCs.” The trainer summarized statutory constraints under the Texas Local Government Code, explained that grants or loans from the EDC must include measurable, contract-style performance agreements and noted a 60-day public-notice period and city-council review are required before funds may be disbursed. The consultant said EDC funding should be used to “fill in the gaps” after applicants demonstrate they have sought conventional financing and should prioritize projects that create or retain jobs, generate sales-and-use-tax impact, or provide infrastructure benefits.

The training covered standard elements of a performance agreement, including required performance metrics, terms of repayment or rebate, reporting obligations and remedies for default. The presenter told directors such agreements can span multiple fiscal years (the presenter said he has seen agreements up to 10 years) but cautioned they must be aligned with the EDC’s budget and coordinated with the city’s finance director and attorney. The EDC’s administrator (Chelsea) was identified as the staff member responsible for monitoring monthly progress reports from applicants and collecting a post‑project survey within six months of agreement termination.

Directors asked about fiscal-year appropriation and monitoring. The consultant said long-term agreements do not automatically terminate at fiscal year end if properly budgeted and approved, but they must be structured with legal review and city oversight. The presenter emphasized documenting other incentives applicants may be receiving so the EDC can evaluate the full incentive package and require reporting of any additional state, county or federal abatements that affect the local benefit.

The board then discussed and authorized next steps for a 2025 strategic plan. The consultant outlined five focus areas: core economic-development functions; workforce development; enhanced collaboration with the city; infrastructure and product development; and local business development. The consultant proposed a three-member steering subcommittee as a practical, nonquorum working group to meet with staff and prepare draft materials for a joint workshop with city council planned for March (third week). Director John Levy volunteered to serve; President Kevin Hite said he would serve and asked for one additional volunteer to complete the subcommittee. Staff indicated a draft plan would be available for review in April with a target for council and budget consideration in May/June.

The training and planning discussion provided the board with specific next steps and assigned monitoring responsibilities to staff.