The simple description is that they are allowances for Texas cities to enter into agreements with private entities in order to provide assistance for economic development.
The are named after Chapter 380 of the Texas Local Government Code.
- Click here for a presentation by the Texas City Attorney Association about the agreements.
- Click here for the actual code.
Here's a description from the Comptroller's Office:
Chapter 380 of the Local Government Code authorizes municipalities to offer incentives designed to promote economic development such as commercial and retail projects. Specifically, it provides for offering loans and grants of city funds or services at little or no cost to promote state and local economic development and to stimulate business and commercial activity.
In order to provide a grant or loan, a city must establish a program to implement the incentives. Before proceeding, cities must review their city charters or local policies that may restrict a city's ability provide a load or grant.
There is a comparable agreement - 381 - that allows counties to offer similar incentives.
You can also find a good run description by clicking on the website of the International Business District. From what I can see the district appears to be promoting 380's to individuals and business who seek to work with them.
The City of Houston has entered into over a dozen 380 agreements since they were established - no more than six can be funded at one time.
- Click here for a list of them.
The Parker Administration has entered into a great number of these - we had a question in class about her tenure in office and what she has accomplished. She makes the argument that these agreements have increased the economic vitality of certain areas of town and the quality of life there as well.
That doesn't mean they have not been controversial. One of the agreements was with the developer who helped build a Walmart in the Heights. Critics argued that the largest corporation in the US did not need a local tax abatement, but it got one anyway.
Here are a few related links that ought to help fill in gaps. One of the areas where I am deficient is in discussing land use policy on the state and local level. Hopefully this helps fill in some of that gap.
- Residents don't like details of 380 agreement.
- Mayor Parker defends incentives to lure development.
- Comment of the day.
- That mysterious 380 agreement.
