Page 365 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

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. Special Revenue Funds

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, the 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.

Additionally, in 2026, the Board recommended adoption of new guiding principles and cost-sharing
guidelines for the Corporation. These guidelines are incorporated into the City’s financial policies as part
of the budget and clarify how costs are shared between the corporation and the general fund.

FY 2027 City of Southlake | Budget Book 365