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Other Funding Sources
Although most EDCs rely on sales tax receipts for the bulk of their revenues, there are several other funding sources available.
Grants
EDCs may accept grants from any public or private entity including federal, state, and local governments; individuals and corporations.
Accepting Loans and Issuing Bonds
EDCs also may accept loans and issue bonds with city council approval.
Interest from Project Loans
EDCs may act as a lender to businesses in connection with projects and charge interest on loans. The interest earned on these loans is income for the EDC.
User and Admission Fees
Some EDCs operate public facilities such as arenas and stadiums as projects and receive revenues from user fees and/or admission ticket sales. These proceeds are revenue for the EDC.
Real Estate Profits
EDCs also may acquire land to sell for business development projects. Profits from these transactions must be returned to the EDC's project fund to finance future business development programs.
Disclaimer
This information should not be construed as, and is not a substitute for, legal advice.
Cities are urged to consult the Attorney General's Economic Development Handbook and their own legal counsel for any questions or interpretations of economic development laws.