NEWS RELEASE - March 29, 2006

S.E.E.D. To Stay 4A

SSweetwater, Texas (March 29, 2006) – The Sweetwater Enterprise for Economic Development Corporation (S.E.E.D.) believes the organization’s current status as a 4A tax entity is exactly the type of organization it should be for the sake of Sweetwater’s future.

S.E.E.D.’s mission is to assist in the capacity of the creation and retention of jobs in the Sweetwater area. As a 4A organization, S.E.E.D. is focused on providing businesses the best opportunity for the development, thereby ensuring consistent economic growth for our area.

In 1979, Texas Legislature passed the Development Corporation Act. This Act allowed municipalities to create non-profit organizations called Development Corporations, designed to promote new and expanded industry within that municipality. Prior to 1987, development of these companies relied solely on private funding. In 1989, Texas Legislature amended the Act by adding Section 4A. This section states that any development corporation can be funded by the imposition of local sales and use tax dedicated to economic development provided that it be voted and approved by city voters. As a 4A entity, S.E.E.D. is committing itself to the business development of Sweetwater within the 11 categories it is allowed to assist with. A few of these categories are: Improvements to existing infrastructure, job training, funding distribution centers, corporate headquarter relocation and recycling facilities. By limiting itself within the Section 4A guidelines, S.E.E.D. can ensure that the tax allotment it receives is funding 100% business development for Sweetwater and the area.

Sweetwater is one of over 300 cities that have adopted the Section 4A tax. S.E.E.D. is confident in Sweetwater’s community enhancement initiatives, and plays an active role as a partner in the activities. S.E.E.D. board members believe a 4A organization is in the best interest of Sweetwater and future economic development. By narrowing its focus solely to business creation, S.E.E.D. is better able to provide Sweetwater with a higher quality of life and continued economic growth.