4A Corporation

In 1989, the Texas Legislature amended the Development Corporation Act of 1979 by adding Section 4A, which allows for the creation of local development corporations that could be funded by the imposition of a local sales tax dedicated to economic development.

The MEDC-4A was established on September 08,1997 following the passage of one-half (1/2) of one-percent (1%) sales tax dedicated to economic development by the residents of Magnolia. MEDC-4A, is a non-profit, tax-exempt Texas Corporation, which is a separate entity from any other board or commission of the City of Magnolia.

The types of projects permitted under Section 4A typically facilitate manufacturing and industrial activity, however the MEDC-4A has authorization to fund Type 4B projects.  Under Section 4A sales tax dollars can be used on to fund the provision of land, buildings, equipment, facilities, targeted infrastructure and improvements that are for the creation or retention of primary jobs and that the Corporation’s Board deems suitable for manufacturing and industrial facilities, research and development facilities, recycling facilities, distribution centers, primary job training facilities for use by institutions of higher education, and regional or national corporate headquarters facilities. The goal is to ensure that Magnolia fully focuses on the future and remains an "Open for Business" community. The 4A is an important link between business and the Magnolia community.

The 4A meets in regular session monthly to conduct the business affairs of the Corporation on the second Thursday of each month at 4:00 p.m. The meetings are held at City Hall in the Sewall Smith Council Chambers.

Annually, MEDC-4A develops a fiscal year budget and  projects based on sales tax projections that require approval from the city council. The 4A is overseen by the development corporation’s board of directors and by the city council. The 4A is subject to both the Open Meetings Act and the Public Information Act, therefore; accurate meeting minutes are considered permanent records.