Economic development corporations are legal entities with the statutory authority to spend economic development sales tax dollars. The corporations are town-chartered and governed by a town-appointed board of directors. The corporations are referred to by the type of economic development sales tax uses approved by the voters, Type A and Type B. Northlake has two economic development corporations with a half cent sales tax dedicated to each. The Northlake Economic Development Corporation (EDC) is the town's Type A corporation, and the Northlake Community Development Corporation (CDC) is the town's Type B corporation.
*Type A and Type B were formerly referred to as 4A and 4B. The section numbers used to identify the two different types of EDCs changed effective April 1, 2009 as the Development Corporation Act was codified into the Local Government Code.