Chapter 380 & Chapter 381 Agreements
Chapters 380 and 381 of the Texas Local Government Code are short, broad statutes that give municipal and county governments the authority to provide a grant of funds to a developer or other entity completing development which supports: development and diversification of the economy of the state, elimination of unemployment or underemployment in the state, or development or expansion of commerce in the state.
Chapter 380 and 381 Agreements can be used independently or in conjunction with one another and/or other special districts in order to incentivize development. Incentives are typically drawn from increment values of sales tax and property tax revenues but no bonds are required to reimburse the developer, making it an advantageous choice over a MUD or TIRZ. Funds from the Agreement may then be monetized as a revenue stream for one of these special districts, in some situations. Knudson, LP has worked on numerous agreements across the state and has garnered clients between $3 and $25 million per deal. Check out our project sheets to get an idea of what we’re capable of. Let Knudson, LP share our expertise with you.