Northlake voters will hit the polls for the May 2 election, where they’ll get the chance to decide on the creation of a Northlake Municipal Development District and a replacement tax with it.
The MDD is expected to replace the town’s Type A and Type B Economic Development Corporations.
“A municipal development district is a special purpose district created by the town to generate economic development and growth opportunities within the boundaries of the district,” said the town.
The proposed Northlake MDD boundaries will include the town limits of Northlake and “most of the Town’s Extra-Territorial Jurisdiction (ETJ).”
It will not include residential properties located in Belmont Fresh Water Supply District No. 1, also known as Northlake’s part of Harvest, but will include commercial properties in the Harvest area that generate sales tax for the town.
Voters will decide the fate of the proposed MDD in the upcoming May 2 election through two ballot propositions.
According to the town, voters within town limits will vote on Proposition A and B, but voters in the town’s ETJ will only vote on Proposition A.
Funds for the MDD will be generated though purchases made on taxable items inside the boundaries of the Northlake MDD. Anyone making a purchase within the boundary, whether they live in Northlake or not, will pay the tax that funds the MDD.
Northlake said it intends to use MDD funds for a variety of economic development activities, as is authorized by state law.
That includes industrial and manufacturing projects, recreational and/or community facilities projects, housing projects, convention center facilities and related improvements.
Currently, the town has Type A and Type B EDCs, which can generate funds for similar projects to an MDD, but the funds can only be collected within town limits.
The MDD will allow the town to also collect sales tax from its ETJ for MDD fund uses.
If voters approve the MDD, it will become effective once the Texas State Comptroller has time to make the specific changes and notifications, which the town expects to take about six months.
Once the MDD is created, a board of at least four directors would govern the district.
According to the town, Northlake’s Town Council will decide how many directors will serve on the board and appoint them.
In addition, the town said it will adopt policies and guidelines that will govern the actions of the MDD Board, including requiring all actions of the board be subject to review by Town Council.
If voters do not approves the creation of the MDD, the town will continue to utilize the EDCs and another election to establish an MDD may not be held for another year.
Whether the MDD is created or not, the town’s existing 2% sales tax will remain at 2% with residents not seeing a tax increase.
Election Day is May 2 and early voting will run from April 20 through April 28.
For more information, view an infographic from the Town of Northlake’s Facebook page.
