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Election Day Proposed Argyle Municipal Development District

Due to COVID-19, the original election date to vote on the proposed Municipal Development District (MDD) was moved from early May to November 3, 2020. There is information about the MDD on the Town of Argyle’s website, but to help residents understand this subject further, Murray Media Group reached out to Haley Pittman with the Town’s Economic Development Corporation to answer a few questions.

What is a MDD?

Basically, an MDD is a district that Texas municipalities can create to fund economic development projects. The district is funded through a portion of the sales tax within its boundaries. In Argyle’s case, the proposed MDD would include the Town of Argyle and the Argyle Extra-Territorial Jurisdiction (ETJ). The sales tax percentage that would fund the MDD is one-fourth of one percent.

What kind of district is Argyle currently?

Right now, Argyle has a Type B Economic Development Corporation, or EDC. The EDC is also funded through a one-fourth of one percent sales tax, but it is limited to Town boundaries. One of the major differences between the current EDC and the proposed MDD is that the MDD could also collect this sales tax within the Argyle ETJ. The MDD board could use the funds collected for projects within the Town limits or ETJ. If this proposition passes, the EDC would be replaced with the MDD.

What should the community know about a MDD?

I would encourage Argyle residents take a look at our website and familiarize themselves with the map of Town limits and ETJ boundaries to get an idea of the areas where the proposed MDD sales tax would be collected. Another point to consider is that the sales tax will apply to anyone purchasing taxable items within the district, so non-residents visiting Argyle can contribute to the fund when they purchase taxable goods in Argyle or eat at one of our restaurants.

What will residents be voting for?

Residents within Town limits can vote either for or against replacing the EDC with the MDD. Voters within Argyle’s ETJ can vote for the proposition to create the MDD only. This is because the EDC was authorized by voters within Argyle limits when it was created in 2002, so only
that same body of voters can authorize its termination.

According to the Town’s website, the proceeds from the sales tax would be used for a variety of economic development activities, including industrial and manufacturing projects, retail development projects, recreational and/or community facilities projects, housing projects and convention center facilities, and related improvements.

There are a few differences between the Type B EDC and MDD. There is a resource on the MDD webpage that compares the Type B EDCs and MDDs side-by-side so that citizens can really get to know the similarities and differences. To find this information, visit www.ArgyleTX.com/287.

The MDD election will take place with the general election on November 3, 2020 from 7AM to 7PM at Argyle Town Hall, 308 Denton St., Argyle, TX 76226.