LEDC Update

I have to say, for all the places I’ve lived, I especially enjoy the weather here in Northeast Texas. Yes, it can get hot and almost unbearably humid at times, and yes it can change on a dime before you can have a chance to equip yourself with an umbrella or a winter coat, but at least it never stays one way for very long.

I’ve talked on a lot of the different programs that the LEDC has at its disposal for business retention and expansion in these articles—and for good reason. My chief goal with our organization is to ensure that our existing businesses can grow and flourish.

However, business attraction runs a close second in terms of priority. Not because it is less important than business retention in anyway—quite the opposite. Ensuring that we create an environment amicable to growth is itself a way to attract new businesses. After all, what business would ever seek to locate itself to a place where it would never be able to grow?

However, there are other means that we can use to attract new businesses to our area. We’re empowered by the State of Texas’ Local Government Code to provide many different kinds of direct incentives to businesses. These incentives can take many forms from something simple like job creation credits to whole tax zoning adjustments. The incentive that I’ll be using today’s article to discuss will be Chapter 380 Agreements.

A Chapter 380 Agreement is an agreement that can be entered into between an economic development corporation and a private business that entails a direct grant of funds to the business in exchange for assured economic development in the region. Speaking in specific terms, Chapter 380 Agreements are often leveraged on two key factors—job creation and capital investment.

The LEDC has utilized Chapter 380 Agreements in the past and I’m anticipating us using them in the future as well. In 2015, we entered into a Chapter 380 Agreement with the owners of the Sonic Drive-In located on Highway 59.

In exchange for a grant in the amount of $25,000, we ensured that the business would secure $800,000 in capital investments in our community and create 20 jobs for Lindenites over the course of three years.

While I think that the agreement we entered into in 2015 makes a great example for the concept of Chapter 380 Agreements overall, it is important to keep in mind that these grants can come in all shapes and sizes.

However, the factor that never changes with these grant agreements is that they must come with economic benefits for the region.

I’ve really only managed to scratch the surface of what a Chapter 380 Agreement entails with this article, but I’m fairly confident that I’ll be writing more on these in the near future as we continue to work with new business prospects to secure new investments and job opportunities for the city of Linden.