Although most EDCs rely on sales tax receipts for the bulk of their revenues, there are other funding sources available.
EDCs may accept grants from any public or private entity including federal, state, and local governments; individuals and corporations.
EDCs may accept loans and issue bonds with city council approval.
EDCs may act as a lender to businesses in connection with projects and charge interest on loans. The interest earned on these loans is income for the EDC.
Some EDCs operate public facilities such as arenas and stadiums as projects and receive revenues from user fees and/or admission ticket sales. These proceeds are revenue for the EDC.
EDCs also may acquire land to sell for business development projects. Profits from these transactions must be returned to the EDC's project fund to finance future business development programs.
This information should not be construed as, and is not a substitute for, legal advice.
Property owners and school districts are urged to consult their own legal counsel for any questions or interpretations of economic development laws.
For additional information, contact the Data Analysis and Transparency Division via email or at 844-519-5672.