To

Mayor and Council

Subject

Opportunity Zone Application

Initiator

Planning Department

Recommendation

Adopt the resolution authorizing the Planning Department to submit an \n \n Opportunity Zone application to the Georgia Department of Community Affairs

Approval

Pending

Background

The opportunity zone is a tax credit program sponsored by the Georgia

Department of Community Affairs. This is a program that offers state tax

credits based on job creation in low to moderate income areas. The intent is

help redevelop blighted areas in older neighborhoods or commercial corridors

and to attract jobs. To be considered for this zone, an area must be within the

Enterprise Zone; contain 15 percent or more of the population in poverty; be an

area of pervasive poverty, blight underdevelopment, and general distress; and,

an area that has a high crime rate, unemployment, or low education and income.

The Planning Department has assembled an application which is required in order

to be designated.

Analysis

On January 13, City Council was briefed on the opportunity zone application.

The benefits for such a program would encourage the development of new

businesses in these areas, while offering a maximum of $3,500 tax credit per

job created. Only the state can authorize the designation and approval of these

zones.

Financial Considerations

If approved, the Opportunity Zone would provide state tax abatements to

qualified businesses, while promoting economic development in low to moderate

income areas.

Projected Annual Fiscal Impact Statement

There is no anticipated annual fiscal impact to city's budget.

Legal Considerations

The City Attorney has reviewed and approved the submission for this

application.

Recommendations/ Actions

Adopt the resolution authorizing the Planning Department to submit an

Opportunity Zone application to the Georgia Department of Community Affairs

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