The Kemp Economic Development Corporation (EDC) is dedicated to bringing businesses to the city that will provide necessary services to residents as well as do projects that will enhance the overall quality of life for the community.
The Kemp EDC became a 4B Economic Development Corporation in October of 2004. Prior to that they were a 4A Corporation. Becoming a 4B Corporation lifted some of the more restrictive limitations on projects that the EDC could do.
The Development Corporation Act of 1979 is the law that regulates the use of the economic development sales tax. Economic Development Corporations are the legal entities with the statutory authority to spend economic development sales tax dollars. The corporations are city chartered and governed by a city appointed board of directors.
HB 2928, which was passed in 2005 by the Texas Legislature, allows EDC's created by cities with less than 20,000 residents to spend 4B revenues on direct incentives to promote new and expanded business development and to attract retail establishments to their communities.