The Port Arthur Economic Development Corporation wants to decide if they’re a Type A or Type B.

This had nothing to do with a personality assessment. Rather, the PAEDC Board of Directors had a discussion of a possible 4B ballot proposition to address the city of Port Arthur Community Development Initiatives at their regular meeting on Monday night at 501 Procter St. The drop-dead date to get everything organized for an election is Feb. 16.

The PAEDC is currently a Type A EDC.

Director Floyd Batiste said under a Type A the PAEDC’s funds are very restrictive for industrial/manufacturing development and for job creation.

“With a Type B, we get all of this now (under a Type A) and address quality of life issues,” he said.

One focus of the PAEDC is downtown development. For instance, a Type B can incentivize small business to come downtown.

Some background on economic development corporations from the Texas Comptroller of Public Accounts reads the Development Corporation Act of 1979 gives cities the ability to finance new and expanded business enterprises in their local communities through economic development corporations (EDCs). Chapters 501, 504 and 505 of the Local Government Code outline the characteristics of Type A and Type B EDCs, authorize cities to adopt a sales tax to fund the corporations and define projects EDCs are allowed to undertake.

Type A EDCs are typically created to fund industrial development projects such as business infrastructure, manufacturing and research and development. Type A EDCs can also fund military base realignment, job training classes and public transportation

Type B EDCs can fund all projects eligible for Type A, as well as parks, museums, sports facilities and affordable housing. However, Type B EDCs are subject to more administrative restrictions than Type A.

A potential election date could be May 5, 2018, the second Saturday in the month. A notice to be provided of the election needs to be at least 71 days prior to the date of the election on Feb. 16, 2018.

Type A and B are funded by a sales tax of one-eighth to one-half of one percent. The total combined local sales tax can’t exceed two percent.

Batiste gave an example of putting $1.1 million aside for three years and use that for leverage under a Type B. He added that there are now many jobs available in Southeast Texas and more people would come here if there were more emphasis on quality of life.

Under Type A, the EDC must be very specific on what they will do when they set aside money and know the cost of the project. Currently, Batiste said he doesn’t have enough money to leverage anything.

The Port Arthur City Council could appoint seven EDC members to a Type B board. Likewise, up to four councilmembers may serve. It would be a totally different corporation from the present Type A EDC board.

They would serve at the pleasure of the city council, serve two-year terms, may be reappointed, three members may not be city officials and they must be city residents if the population is under 20,000.

Both Type A and B can do land, buildings, equipment facilities, expenditures, targeted infrastructure and improvements as eligible projects.

While Type A usually focus on developing industries, a Type B cultivates communities.

Some on the board were concerned about the city council getting control of the EDC’s money. Director Kenneth Marks said the PACC and the PAEDC all want the same thing and move the city forward and make the city more habitable.

Ingrid West Holmes, board president, agreed with Marks and said the PAEDC board knows there are some elected officials who care and want to move the city forward.

Attorney Kate Leverett gave the pros and cons of being either a Type A or a Type B.

Under a Type B, there is more flexibility to set aside revenue. The cons are different board members would be serving on a different entity.

Batiste said after Harvey, the city needs more dedicated funds to make the city better.

“We have to do something to better our city,” said Director Darrell Anderson. “It’s important we give incentives to smaller businesses.”