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Terrell EDC outlines limits and opportunities of Type A vs. Type B sales-tax projects

April 12, 2025 | Terrell, Kaufman County, Texas


This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

Terrell EDC outlines limits and opportunities of Type A vs. Type B sales-tax projects
Amy, a representative of the Terrell Economic Development Corporation (EDC), gave the Park and Downtown Improvement Corporation an overview of how the city’s Type A and Type B economic-development sales-tax funds may be used and where the EDC has focused spending historically.

The presentation emphasized that Type A funds are narrowly prescribed for primary-job projects — manufacturing, distribution, aviation-related parks, and similar uses — and that Type B funding, which voters must approve, allows a broader set of activities including certain quality-of-life and downtown projects. Amy said voters have approved carving one quarter of local sales tax for Type B projects while three quarters remains for Type A projects. She also described specific past investments the EDC supported, including infrastructure tied to the Buc-ee’s/Crossroads development and recruiting major employers such as Nucor, Walmart and AutoZone.

That legal and procedural distinction matters because some board members asked whether downtown requests (facade grants, public plazas, parklets) could be financed by the EDC. Amy said Type B can cover a wider set of uses but noted statutory limits and that some actions (for example, direct grants to retail) are restricted under Type A unless a voter-approved Type B authorization applies. She advised the paddock board that projects outside the downtown/park geographic limits would require coordination and, in some cases, voter approval.

Board members asked practical questions about what counts as a “primary job,” whether a grocery store might qualify, and whether the EDC can donate land or otherwise structure incentives. Amy said grocery stores are typically treated as retail (and therefore outside the typical Type A primary-job box) but noted that packaging of incentives and a voter-approved Type B or other local exceptions can change possibilities. She described job grants, infrastructure support for industrial projects and marketing/recruitment activities the EDC uses to attract businesses.

Amy and other panelists cited past Terrell wins — including a March infrastructure contribution of $250,000 tied to the Buc-ee’s/Crossroads project — to illustrate how EDC funds have been used for roads, water and sewer in advance of business-park or retail development. She also said Type B rules change slightly when a town’s population exceeds 20,000, advising the board to be aware of census-driven adjustments.

Why it matters: the paddock board is updating its strategic priorities and will meet jointly with the EDC and outside consultants; understanding the statutory differences between Type A and Type B funds helps the paddock target grants and capital projects that are legally allowable and avoid proposals that would require a voter referendum.

Board members asked for comparative examples from other cities (Georgetown, Sulphur Springs, Waxahachie and Kaufman were mentioned) and Amy offered to provide additional documentation and examples before the joint strategic-planning session so the paddock board can see how other municipalities structure A/B splits and downtown-focused programs. The joint meeting and consultant recommendations were described as the next step for aligning expectations and funding priorities.

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Scribe from Workplace AI
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