A Municipal Development District is a special purpose district created for the purpose of generating economic development and growth opportunities within the boundaries of the district. The proposed Pecos MDD boundaries are one mile beyond the city limits of Pecos.
WHAT ARE THE DIFFERENCES BETWEEN A TYPE B ECONOMIC DEVELOPMENT CORPORATION (EDC) AND A MUNICIPAL DEVELOPMENT DISTRICT (MDD)?
The City currently has a Type B EDC. The MDD will be able to perform the EXACT SAME types of projects as are currently allowed by our Type B EDC, namely projects related to: amateur sports, athletics, entertainment, tourism, conventions, public parks: including stadiums, ball parks, auditoriums, amphitheaters, concert halls, parks and park facilities; municipal buildings, museums, exhibition facilities, restaurant, concession, parking facilities, area transportation facilities; roads, streets, general municipally owned improvements, water and sewer facilities, drainage, demolition, and other related improvements that enhance any of those items. The major difference is that an MDD can impose a one-half of one percent sales tax in the mile outside of city limits. The EDC can only impose its sales tax within city limits.
WILL THERE BE AN INCREASED TAX BURDEN IF THE TYPE A EDC IS DISSOLVED AND THE MDD IS CREATED BY THE VOTERS?
No, there will be no additional taxes imposed on the citizens. Currently, the Type B EDC is funded by a sales tax of one-eighth of one percent of sales and use tax. Streets maintenance is funded in part by a sales tax of three-eighths of one percent. If the ballot measure is approved by the voters, both of these sales tax will be dissolved and the MDD will be funded by a sales tax of one-half of one percent. The MDD sales tax will not increase over time.