Chapter 380 Economic Development Agreements


Chapter 380 of the Local Government Code authorizes municipalities to offer incentives designed to promote economic development. 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.

The City of Brownwood works with the Brownwood Municipal Development District (BMDD) on recruitment and expansion projects for local business and industry. Many times, the City of Brownwood will use a Chapter 380 agreement in partnership with economic development agreements through the BMDD to customize incentive packages for new or expanding businesses.

The BMDD takes the lead in business recruitment and incentives, but Chapter 380 agreements can include items not offered through the BMDD. Comprehensive incentive packages are calculated through economic impact analysis and subject to approval by the BMDD board of directors and the Brownwood City Council. Incentives are customized based on the merits of the project on a case by case basis.