Created by the voters in 2001, the Clute Economic Development Corporation, is an entity organized under Section 4B of the State's Development Corporation Act. The CEDC's primary purpose is to promote and fund economic development projects to enhance the City. It is authorized to collect sales tax at a rate of 0.5%, to issue bonds (the CEDC currently has 1 outstanding Certificate of Obligation), has the power of eminent domain, and can condemn property, but only with City Council approval. Two of its most notable projects are the Dixie Drive reconstruction and the remodel of the Police Department and City Hall facilities. It is subject to the Texas Open Meetings and the Public Information Act.
The City Manager currently fills the position of the Executive Director of the Clute EDC.