Page 292 - CityofSouthlakeFY25AdoptedBudget

Community Enhancement and Development Corporation
(CEDC) Fund
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
Special Revenue Funds
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.

292 FY 2025 City of Southlake | Budget Book