What happened: The Midland Development Corporation (MDC) approved an economic development agreement on Monday, April 13, to support a new 8,000-square-foot veterinary diagnostic and surgical hospital. MDC Executive Director Sara Harris said the project addresses a growing gap in local veterinary care by expanding access to advanced services that remain limited in Midland.

The MDC agreement includes up to $160,000 in performance-based cash reimbursements, meaning MDC pays funds only after the company creates and sustains jobs for at least one year. If the company fails to meet its obligations, the agreement allows MDC to recover funds through clawback provisions. The project is expected to generate 32 jobs, including veterinarians, administrative staff, and support roles.

Catch up quick: Midland voters created the MDC in 2002 as an economic development entity funded by a dedicated 0.25% city sales tax. For fiscal year 2025–26, the city council approved an MDC budget of $16.2 million. As of FY 2024, MDC held more than $28 million in cash and investments. MDC dedicates roughly 35% of its annual revenue to infrastructure investment.

As a Type A economic development corporation, MDC focuses on projects that create jobs, including industrial development, infrastructure, and business recruitment. Harris said the project qualifies under state law for Type A funding because veterinary services fall under the North American Industry Classification System codes for scientific and technological services.

The big picture: One public speaker pointed to a national trend of private equity firms acquiring veterinary practices, which can drive up costs and reduce local control. The commenter suggested projects like this could help maintain independent, locally focused services in Midland.

A representative of the project reinforced that point, stating the hospital aims to provide high-quality care while addressing affordability and access concerns. The facility also plans to introduce advanced services, including CT and MRI capabilities, which are not widely available locally.

Go deeper: The $160,000 performance-based incentive represents a small share of MDC’s $16.2 million budget for fiscal year 2025-26. Harris also reported during the meeting that MDC’s financial position remains strong. According to financials presented at the meeting, MDC has not made any significant incentive disbursements in recent months, while revenue continues to outperform expectations.

Sales tax collections are currently running 22% above budget, tracking toward roughly $15 million for the fiscal year. Financial statements included in the board packet show MDC maintaining substantial available resources, with cash and investments supporting ongoing project commitments and future incentives.