The Terrell Economic Development
Corporation
The
Terrell Economic Development Corporation (TEDC) was formed in
1990 after the passage of a $.005 sales tax proposition. Terrell
was one of the first cities in the State to implement this program
and has aggressively sought projects using the dollars generated.
The main criteria used in the allocation of funding are the number
of jobs created and total economic impact. A minimum of 15 jobs
and $500,000.00 investment is required to qualify for assistance. Each
project is judged on its own merit, with types of jobs created
and payroll the most important. Assistance available from TEDC
is in the form of:
- Low Interest Loans
- Grants
- Infrastructure Improvements
- Land Purchase
The TEDC currently owns the 750-acre Metrocrest
Business Park,
a fully developed park with four lane streets and all utilities,
and the Airport Industrial Park, adjacent to Terrell Municipal
Airport. To apply for assistance from TEDC, request an application
from the Chamber office
and submit it with all the necessary support documents.
Tax Abatement
All taxing entities in the City of Terrell have adopted
a policy for tax abatement for new/existing business and industry
locations in Terrell.
(a) Central Business District
To qualify for central business district abatements, businesses:
- Must increase the ad valorem tax value of a property by
at least $150,000 in new construction in the central business
district, or
- Must increase the ad valorem tax value of a property by
at least $50,000 in rehabilitation of an existing structure
in the central business district.
(b) Enterprise Zone (Metrocrest Business
Park and the Airport Business Park)
To quality for tax abatements in Terrell Enterprise Zones,
businesses:
- Must add at least 25 new or retained jobs, and
- Must increase the ad valorem value of a property by at
least $500,000 in new construction, or
- Must increase the ad valorem value of a property by at
least $250,000 in rehabilitation of an existing structure.
Procedural Guidelines
For more information on applying for abatements contact the
Terrell Chamber of Commerce or fill out the information
request form.
Additional Opportunities for New Industries:
Urban Development Action Grant
The Urban Development Action Grant (UDAG) Program of
the U.S. Department of Housing and Urban Development (HUD) is
designed to encourage private development projects in eligible
cities. Funds are available for a wide variety of commercial,
industrial, and mixed use projects which:
- Help revitalize the city's economic base
- Provide new permanent employment opportunities
- Cannot work without the UDAG
Funds may be used for fixed asset financing. There is
no minimum or maximum project amount. UDAG loans, however,
generally range from 15% to 25% of the project's cost.
Projects in which the UDAG loan is less than $100,000 are unusual.
Some up-front equity investment is generally required, although
the specific amount is negotiable.
Industrial Revenue Bonds (I.R.B.) $10,000,000
Issue
The Terrell Economic Development Corporation is authorized
under State Law to issue I.R.B. The corporation will work
with the Texas Commerce Department in the issuance of I.R.B.
Terrell passed the $.005 sales tax for economic development
in 1990. We currently generate approximately $800,000.00
annually. These funds can be used for grants, low interest
loans, land purchases, utility extension, etc.
Texas Capital Fund
The City of Terrell is qualified to submit applications
for an eligible activity to the Texas Department of Commerce.
Businesses with a three-year track record are desirable, but not
mandatory. There are no limitations on the personal net
worth of the business owners. Complete applications are
selected on a statewide competitive basis with scoring allowed
for (1) community distress, (2) benefits to low/moderate income
persons, (3) private leverage, (4) number of employees and (5)
other.
What are the terms?
Loan Amount: Must not exceed $800,000
Purpose of Loan: Fixed Assets, Working Capital
Maturity of Loan: Flexible - typically tied to the economic
life of the assets purchased with the loan
Rate of Interest: Flexible - typically low rate financing
from 3 to 8%
If approved, the state awards the city a grant. The grant
is then loaned to the project principal(s). The repayment
funds to the city are recycled for other economic development
or community development activities.
Job Training Partnership Act
$250,000 in job training assistance. For additional
information contact the Terrell Chamber of Commerce or fill
out the information request form.
Terrell
has everything your company needs to grow and prosper.