Cedar Park builds on business model
Cedar Park builds on business model
Written by Mandy Hobby Tuesday, 07 November 2006
Portion of sales tax revenue provides funding for projects
Fifty-seven percent of Cedar Park voters approved a proposition Nov. 7 to allow the 4A Economic Development Tax Corporation to fund, maintain and operate an entertainment facility.
After several attempts to fund the facility through other means, the City Council voted in August 2006 to put the proposal to use 4A sales tax money on the November ballot.
What is 4A and 4B?
The State approved a bill in 1989 to create economic development taxes, 4A and 4B, that help smaller Texas communities like Cedar Park build economic programs and offer business incentives.
Cedar Park adopted both 4A and 4B taxes in 1999 when voters passed a half cent sales tax to be used for each corporation.
4A Corporation
The 4A Economic Development Sales Tax Corporation is run by a Board of Directors and overseen by Phil Brewer, Cedar Park economic development director. The five-member board is responsible for setting policy and approving strategic plans Brewer and his team present.
“The 4A Corporation is responsible for quality of life projects, and it is able to provide performance-based incentives to primary job businesses,” Brewer said. “These are the businesses that are defined by the state as a company that provides services or products shipped out of the local economy.”
The 4A board works with primary job businesses in Cedar Park like Complete Books & Auto Supply, ETS Lindgren and BMC Millwork by providing funding based on job creation and salaries. The corporation was able to reimburse portions of roads and infrastructure for the new Cedar Park Regional Medical Center being built at FM 1431 and US 183A with sales tax dollars because it qualifies as an eligible commercial project that can receive 4A funding.
The City is also able to offer future businesses incentives with 4A monies. Brewer said that cities being able to offer incentives to potential businesses has become the norm, but is not considered a deal maker.
“I always say that incentives don’t make a bad deal good; they just make a good deal better,” Brewer said. “Our board is briefed on every project and they usually meet with a company representative before any deals are made.”
4B Corporation
The 4B Community Development Corporation also consists of a five member economic development board, but is geared towards community improvements like streets, transportation, parks, and entertainment projects.
“The 4B corporation manages the expenditure of funds that enhance overall community development like constructing roadways and intersections that provide pedestrian accessibility,” Duane Smith, Cedar Park planning and transportation director said. “It is a return of sales tax money to the community.”
US 183 Corridor Enhancement
One of 4B’s projects, the US 183 Corridor Enhancement Project, began four years ago and aims to allocate money for partnerships between the local businesses and property owners along the 183 corridor.
“The project was set up to not only improve the aesthetics of such a busy corridor, but to also address safety issues,” Smith said. “It will be a great impact when adjacent property owners can come together and combine access, coordinate driveways and align for safety.”
Even with the 4B corporation’s ability to provide project participants 75 percent of their eligible expenditures, only two businesses, Dr. Michael Farst’s family dentist office and Joe Jooya’s two properties across from city hall at 519 and 605 N. Bell, have participated.
Smith said the reasons so few businesses have responded to the initiative is because of the high number of out-of-state property owners and because owners are concerned they will be forced to make improvements.
“This is one of the most hazardous corridors for drivers and pedestrians,” Smith said. “With this project, we want to improve safety and improve the access to businesses along the corridor.”
4A - Economic Development Sales Tax Corporation
- Responsible for promoting and developing new and expanded business enterprise, assisting and enhancing economic development of the city
- Board of Directors manages affairs and daily operations overseen by Phil Brewer and staff
- 4A Board of Directors:
- President: Lowell Moore
- Dr. Stephen Foster
- Kelly Brent
- Two vacancies
- What this means for residents:
- funds water, sewer and road construction around retail developments
- offers performance-based incentives to businesses increasing sales tax revenue
4B - Cedar Park Community Development Corporation
- Projects include streets, roads, transportation systems, public parks and facilities, municipal facilities, sports facilities and entertainment projects
- Corporation has power to acquire, maintain, lease and sell property
- Board is comprised of seven members appointed by the City Council
- 4B Board of Directors:
- President: Brian Rice
- Don Olson
- Maria Talamo
- Kevin Harris
- Brian Haulotte
- Ryan Wood
- Brian Dougherty
- What this means for residents:
- funds construction of roads to undeveloped service in commercially zoned area
- funds street realignment for safety and easier access to businesses
Revenue generated from the $9 million sales tax revenue: $2.1 million for 4A & 4B
Cedar Park Boards & Commissions
- Board of Adjustment
- Created for purpose of interpreting or modifying zoning
- regulations, approving variances to building setbacks and special exceptions to ordinances, hearing and determining cases regarding alleged violations of ordinances concerning the preservation of public safety, hearing and deciding appeals that allege error in an order, requirement, decision or determination by code interpretations
- Board Members
- Chair: Alan Yore
- Richard Keith
- Bob Marstiller
- David Powers
- Kevin Haywood
- Planning and Zoning Commission
- Review body that makes recommendations to Council regarding land use issues, including zoning requests, subdivision plats, changes to the zoning ordinance, amendments to and updates to the comprehensive master plan
- Board Members
- Chair: Mike Perez
- Barbara Shaffer
- Bobbie Fuller
- Barry Hunter
- Patrick Girard
- Michael McCluskey
- Lloyd Gardner
- Parks and Recreation Advisory Board
- Advises in planning and development of park and recreational facilities and municipal grounds
- Evaluates and recommends to the Council on matters concerning establishment, maintenance and operations of all parks within city
- Researches and evaluates necessary regulations or ordinances governing use
- Board Members
- Chair: David Neely
- Scott Rogers
- Mike Tangorra
- Jack Arnold
- George Denny
- Jesse Holguin
- Tourism Advisory Board
- Overseen by the Chamber of Commerce and is tasked with increasing and enhancing public awareness of benefits resulting from hospitality industry and potential contribution offered to community
- Identifies and promotes all aspects of the city to attract potential tourist and convention goers
- Board Members
- Chair: Don Raulie
- Jerry Rose
- Shawn Washington
- Don Moore
- Anisa Bhaiwala
- Robert Schoen
- Reinvestment Zone Board
- Tax increment investment zone that covers 470 acres of land in Cedar Park bounded by New Hope Road, US 183A, FM 1431 and the railroad
- Facilitates public improvements to allow and encourage development of the mixed use downtown district which merges retail, office, entertainment and civic uses with a variety of high quality, high value, high density single and multi-family housing to create a close-knit, pedestrian friendly urban core
- Board Members
- Torsten Weirich
- Bill Lee
- Alan Hill
- Belinda Heffelfinger
Source: City of Cedar Park
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