Approve the attached ordinance to readopt the existing boundaries of the city's \n \n Enterprise Zone, known as the "Columbus Business Development Center" for \n \n another ten-year period.
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. It was readopted in 2008 and expanded in 2014 to include the Liberty
District. 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"