}

Columbus Consolidated Government

Council Meeting

12/2/2008


To
Mayor and Council
Subject
Readoption of the Enterprise Zone
Initiator
Planning Department
Recommendation
Approve the attached ordinance to readopt the existing boundaries of the city's \n \n Enterprise Zone, known as the "Columbus Business Development Center".
Approval
Approved
Background
In 1997, the Georgia legislature adopted the ?Enterprise Zone Employment Act,?

which is to encourage revitalization in areas within the city that are

suffering from disinvestment, underdevelopment, and economic decline. To

qualify as an Enterprise Zone, the area must demonstrate three of the following

five criteria: pervasive poverty, unemployment, general distress,

underdevelopment, and general blight. To meet these criteria, evidence must

come from the following: census and state unemployment data; condition of

structures and the infrastructure; and the economy. In order to encourage

businesses to locate or expand in the Enterprise Zone, incentives in the form

of tax credits exemptions and waivers of certain local fees are offered as

allowed under the Act. These incentives do not include school district property

taxes or property taxes imposed for general obligation debt. The legislature

also established that the area designated as an Enterprise Zone should remain

in existence for ten years from the first day of the calendar year immediately

following its designation as an Enterprise Zone.



On April 7, 1998, Council adopted the original Enterprise Zone and named it the

"Columbus Business Development Center". Since that time the Enterprise Zone

was expanded in 2000 to allow residential uses as established by state law, and

again in 2001 to expand the boundaries to include the East Wynnton/Lawyers Lane

area. State law mandates that an Enterprise Zone may only be in existence for

a period of ten (10) years. Unless readopted by the local government, the

Enterprise Zone itself would expire.

Analysis
The existing Enterprise Zone is scheduled to expire on January 1, 2009. The

Planning Department is working to provide Council with a detailed report on the

existing Enterprise Zone, including an analysis of the future needs for this

zone. Due to the shortness of time left in this calendar year, the Planning

Department is recommending that the existing Enterprise Zone and its

boundaries, be readopted for another ten (10) year period. Readopting the

existing Enterprise Zone will provide the continuation of this economic

project, while allowing staff to complete its analysis of the zone and any

recommendations for future improvements.
Financial Considerations
Upon approval by the Council, those businesses that are engaged primarily in

manufacturing, warehousing and distribution, processing, telecommunications,

tourism, research and development industries; and new residential construction,

residential habilitation, or other rehabilitation of existing structures in the

enterprise zone would be exempt from state and local ad valorem property taxes

for a period of ten years. This exemption would be transferable to another

owner within that ten-year period. The exemption would be based upon the

following schedule:



One hundred percent of the property taxes shall be exempt for the first five

years

Eighty percent of the property taxes shall be exempt for the next two years

Sixty percent of the property taxes shall be exempt for the next year

Forty percent of the property taxes shall be exempt for the next year; and

Twenty percent of the property taxes shall be exempt for the last year



A full description of the program is attached an an exhibit to the ordinance.
Projected Annual Fiscal Impact Statement
Legal Considerations
The zone will stay in effect for a minimum of ten (10) years. Developments that

occur in the tenth year are still eligible for the full ten-year exemption in

taxes, according to the above schedule.
Recommendations/ Actions
Approve the attached ordinance to readopt the existing boundaries of the city's

Enterprise Zone, known as the "Columbus Business Development Center"



.