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Board discusses EDC authority to buy or lease property; counsel says authority is broad but project terms matter
Summary
The EDC reviewed statutory authority and potential constraints on purchasing or leasing property. Counsel said most enabling statutes for E‑type economic development entities allow land and equipment as part of a project, but specifics depend on the project agreement and should be negotiated; no purchase or lease action was taken.
The Hollywood Park EDC on Nov. 4 discussed whether and under what conditions the corporation could buy or lease property to further local economic development. Kenneth (board member) asked staff to summarize the authority; legal counsel responded that most statutes that enable economic development activity allow land acquisition as part of a project.
"When you go through the various statutes that relate to a type E ... most of them include land as part of a project," counsel said, adding that the question becomes the project's purpose and the "strings" that the board or partners would place on conveyance or reuse. Counsel recommended developing a clear project roadmap before negotiating a purchase or lease and said an executive session would be appropriate for discussions about specific property and terms.
Board members discussed several hypothetical uses: purchasing raw land to subsidize a developer, buying a building to lease as shared office space for small businesses, and using property to catalyze other private investment. Members noted EDCs generally are not intended to be operating entities; any long‑term ownership would likely be structured with a clear public purpose and contractual restrictions.
Why this matters: EDC land acquisition can be a tool to shape local economic outcomes, but it raises questions about geographic justification, restrictions on use, and the public purpose required for public funds.
What happens next: The board discussed next steps including additional legal research, the possibility of an executive session for property‑specific negotiations, and further outreach to interested parties. No acquisition or lease was authorized at this meeting.
