City council authorizes city attorney to draft MDD ballot proposition

By LYNETTE SOWELL
Cove Leader-Press 

At its Tuesday night meeting, the Copperas Cove city council directed the city attorney to draft a proposition for the November 2017 ballot that will present voters with a proposition to disestablish the present Type “A” Economic Development Corporation and establish a Municipal Development District within the City of Copperas Cove. The vote was cast 5-2, with councilmen Dan Yancey and Jay Manning voting against the measure. 
The idea of changing the current EDC format from a 4A corporation and ultimately into a Municipal Development District would give the city “another tool in its tool bag” for economic development, said place 1 councilman David Morris, who introduced the agenda item on Tuesday evening. The idea of an MDD has been discussed by the council as far back as 2014. Morris then called on city attorney Charlie Zech to explain the process to create an MDD, which if approved by Copperas Cove voters, could be followed by dissolution of the EDC at a separate election.  
Zech said Copperas Cove is not alone in exploring the idea of possibly changing its approach to economic development. 
“We have several clients other than the City of Copperas Cove who have been thinking about dissolving their current type A or type B economic development corporation and adopting a municipal development district.” Zech said the problem with doing that has been all clients, including Copperas Cove, are capped at their 2 percent max for sales tax. 
He also said the state comptroller’s office said that cities creating MDDs can’t hold a simultaneous election to dissolve an economic development corporation, if the MDD would extend to a city’s extraterritorial jurisdiction, or ETJ.
“One of the main benefits of an MDD is that you get to collect sales tax in your extraterritorial jurisdiction. It’s the only sales tax you can collect (in the ETJ),” Zech said. “So depending on the amount of commercial activity in your ETJ, that can be a considerable windfall in extra sales tax.”
The risk for losing sales tax altogether by holding a simultaneous election would then go away. 
“It’s always been my opinion that a city is authorized to hold an election and at a future election dissolve that particular EDC,” Zech said, adding that last week his firm received written confirmation by the general counsel of the office of State Comptroller Glenn Hegar that a city can hold an election to create an MDD, and if that election passes, at future election could then dissolve its EDC. He said the election creating an MDD does two things: it authorizes the boundaries of the municipal development district and it authorizes the adoption of the tax. 
The actual adoption of sales tax would then take place after the MDD board is established and the board itself would adopt the sales tax that extends into the ETJ.
Two agreements between the Hill Country Community Action Association and the City of Copperas Cove were approved by the council, the first for an agreement for operation of the federally funded Head Start Program in Copperas Cove, and the second being an agreement for leasing buildings used for Head Start located at 1008 North Dr. and 1012 North Dr., along with 1202 W. Ave. B. 
Initially, some of the councilman—David Morris, Dan Yancey, and Jay Manning—wanted to see the city have a 10-year lease with HCCAA for the ground lease and building lease. However, that motion was outvoted by the other councilmen, who wanted to stay with the three-year leases prepared by the city. 
City Planner Charlotte Hitchman brought a Complete Streets Policy for the city of Copperas Cove to the council for adoption. 
“It allows the city better compete for funding in economic development opportunities. It helps compete regionally. There are regional dollars, state dollars, federal dollars, and any additional box you can check off helps you complete, not only for transportation dollars but economic development projects too,” Hitchman said. She said this policy could be adopted prior to the release of the city’s transportation master plan this fall. 
Councilman Jay Manning questioned the “vagueness and arbitrary tones” in the policy and made a motion to table the request, which was seconded by councilman David Morris.
“This is not intended as regulation, but a policy that documents our current process already. This is our goal; this is what our policy for transportation decisions will be in the city,” Hitchman explained. Manning’s motion didn’t pass, with the council then voting to pass the adoption of the policy.
Also on Tuesday night, the council approved: 
Expanding the school zone along Risen Star Lane from Nathan Drive to 180 feet southeast of Jonathon Drive. 
$8,500 payment to the Heart of Texas Defense Alliance (HOTDA) on Tuesday evening, after hearing report given by incoming HOTDA executive director, Col. (Ret.) Keith Sledd. 
Approved a request for a professional services agreement with Utility Engineering Group, PLLC in the amount of $58,500 to complete three domestic wastewater discharge permit renewals for the city’s wastewater treatment plants.