Page 351 - Southlake FY22 Budget

SPECIAL rEVEnUE FUnDS EXPEnDITUrES

SALES TAX DISTrICTS

community enhancement

deVeloPment corPoration (cedc)
In May 2015, Southlake voters overwhelmingly approved
the reallocation of a portion of the CCPD half-cent sales tax
for the purpose of constructing and operating a recreation
center through a Community Enhancement and Development
Corporation (CEDC). The CCPD half-cent sales tax was reduced
to a one-eighth cent tax and the remaining three-eighths
was reallocated to address recreational and economic
development needs for the City, as permitted by State law,
through the CEDC.

The CEDC is a Type A corporation that can expend funds
for a wide variety of projects. Type A tax can be used to
fund the provision of land, buildings, equipment, facilities,
expenditures, targeted infrastructure and improvements that
are for the creation or retention of primary jobs in specific
industries. Type A districts are also allowed to cover Type B
projects (like The Marq) if voters authorize specific Type B
projects in the ballot language for Type A districts. The May
2015 voter-approved ballot stated the funding is “... to be used
for projects authorized by Chapters 504 and 505 of the Texas
Local Government Code, including specifically a community
entertainment and recreational center and land, buildings,
equipment, facilities, or improvements that provide new or
expanded business enterprises that create or retain primary
jobs as authorized by Section 505.155 of the Texas Local
Government Code, including maintenance and operation costs
of an authorized project.”

The CEDC, which is governed by a seven-member Board of
Directors, began collecting the sales tax in October 2015.

Fund Utilization
The three-eighths cent tax collected for this corporation was
largely used to construct Phase 2 of The Marq Southlake,
known as Champions Club. Phase 1 of The Marq, which
includes Legends Hall, Aria amphitheater, and the Southlake
Senior Activity Center, was funded using a combination of General Fund and Southlake Parks Development
Corporation cash.

The 82,000 square-foot Champions Club held its grand opening in April 2019 and includes: a fitness center, a two
court gymnasium, indoor turf fieldhouse, outdoor turf field, indoor pool, jogging track, indoor playground, relaxing
outdoor terrace, group fitness classes, personal training, classrooms, and party rooms.

The CEDC pays for the debt associated with the $37.4 million in construction costs. The corporation also provides
funding to supplement the operating expenses for The Marq Southlake not recovered with facility and program fees.
Finally, a portion of the funds are for economic development initiatives.

350 FY 2022 City of Southlake | BUDGET BOOK
WWW.CITYOFSOUTHLAKE.COM