Adopt the resolution authorizing the Planning Department to submit a State \n \n Opportunity Zone application (for renewal) to the Georgia Department of \n \n Community Affairs (DCA).
Approval
Pending
Background
The Georgia Opportunity Zone is a tax credit program sponsored by the Georgia
Department of Community Affairs. This is a program that offers state job 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
have 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.
The original Opportunity Zone was approved in 2015 and was intended to be
renewed in 2025. However, DCA wanted the Opportunity Zone to run concurrent
with the Enterprise Zone, which was extended in 2018; thus, it had to be
renewed much earlier than anticipated.
Analysis
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 a State
Opportunity Zone application to the Georgia Department of Community Affairs