City of Acworth Economic Redevelopment Incentives

Transcription

City of Acworth
Economic Redevelopment Incentives
Prepared by
Atlanta Regional Commission Staff
March 2009
Atlanta Regional Commission
BACKGROUND
Acworth is a suburban city in Cobb County, located approximately thirty miles northwest of
Atlanta, GA. The population of the city has grown rapidly in the past twenty years, from 4,500
in 1990 to an estimated 19,000 in 20071. Acworth is expected to experience much future
growth through redevelopment of its downtown and commercial areas. To facilitate targeted
redevelopment, the City needs a range of economic tools and incentives to encourage the
interest and investment of the development community and to ensure that redevelopment
projects support the community’s future planning goals.
In the spring of 2008, the City was awarded assistance through the Community Choices
program of the Atlanta Regional Commission (ARC) to develop a menu of economic
development incentives to assist the City of Acworth with redevelopment of some of its
commercial areas. This includes analyzing the City’s existing incentives, researching best
practices from around the region and across the country, and discovering funding options to
assist in implementation. The result of this research has been compiled into the following
menu of economic redevelopment incentives and options for the City. The document is
organized into the following sections:
•
•
•
•
Program Management
Financial Incentives
Permitting Incentives
Other Opportunities
Many of the incentives researched from other cities are sustained by dedicated funding sources
through city or state governments. With this understanding, Appendix E has been included to
provide additional funding options unique to our region or the State of Georgia for programs
such as the ones mentioned here.
PROCESS
Economic redevelopment incentives outlined in this report were derived from the following
process.
May 2008
Collection of Economic incentive information, ordinances, documents,
etc. from the City of Acworth
June 2008
Meeting with stakeholder committee to determine project scope and
deliverables
July-September 2008 Research, collection and organization of information about economic
incentives (particularly related to redevelopment) in the Atlanta region,
Georgia and other parts of the country
1
U.S. Census Bureau, American FactFinder. Accessed January 2009.
October 2008
Presentation of draft menu of incentives, stakeholder meeting to
determine incentive programs and strategies from other cities relevant to
the City of Acworth
November 2008February 2009
Further research on incentive programs relevant to the goals and needs
of the City of Acworth
March 2009
Compilation of research and information on various programs into final
report
PROGRAM MANAGEMENT
TARGETED INCENTIVE PACKAGES & EMPOWERMENT ZONES
With targeted incentive packages, specific areas are set aside to be eligible for funds under
certain programs. Areas may be community improvement districts, tax allocation districts, or
another designation created by each individual city. The examples here show that cities choose
different ways to offer targeted incentives with a variety of funding mechanisms.
Pittsburgh, PA
Targeted incentives apply only to the Technology Zone, which is a federally designated
Enterprise Zone. Businesses within this area apply for federal programs and incentives.
Chicago, IL
Special Service Areas (SSA), similar to Business Improvement Districts, are the chosen means of
designation. Member businesses agree to tax themselves, with proceeds spent on
infrastructure improvements, pedestrian upgrades, and security improvements. Taxes are
collected through Cook County, IL and disbursed to the individual SSAs.
Champaign, IL
A tax increment financing area (TIF) encompassing the Downtown area and East University
Avenue area are eligible for special incentives. The program targets the redevelopment of
commercial and residential structures. More information can be found in Appendix A of this
document.
Gainesville, FL
Incentives apply only to state-designated Enterprise Zones and are eligible to receive local tax
breaks and state incentives. The incentive menu can be found in Appendix A of this document.
Knoxville, TN
Targeted assistance is offered for designated enterprise zones and others (Five Points
Commercial Development, Market Square Development and Jackson/Depot Redevelopment
Area). This takes the form of mostly Enterprise Zone assistance, including home repair program
and a blighted properties redevelopment program.
Savannah, GA
The city offers tax incentives to businesses locating along Ogeechee Rd., Augusta Ave., Waters
Ave. and Wheaton St. corridors. A SPLOST was passed in November 2002 and provided an
estimated $245 million over five years.
While most of these cities offer either funding through strictly Enterprise Zone programs or
locally initiated TIFs, Acworth is able to use the Downtown Development Authority boundary as
a zone to which they seek to offer targeted incentives toward redevelopment. Such programs
could include storefront rehabilitation grants, tax incentives, and assistance with infrastructure
upgrades.
INCENTIVE SCORECARD SYSTEM
San Antonio, TX
The City of San Antonio offers a variety of incentives to promote targeted development, job
creation and community growth in both residential and commercial/industrial projects. In June
2006, the City Council adopted changes to the Incentive Scorecard System (ISS) which identifies
certain incentives for projects that achieve a qualifying score during the application process.
The evaluation and application is an automated process to determine if a project qualifies for
any City incentives. The ISS online process is used to facilitate and expedite the award of
targeted development incentives. The ISS establishes criteria for administrative approval of
incentives for qualifying development projects and serves as an evaluation tool to determine
the public benefit of a proposed project. The ISS is easy to use, minimizes subjectivity and
identifies specific criteria to qualify for incentives. It is intended to establish clear expectations
of performance and accountability.
The Incentive Scorecard System can be accessed by visiting
http://www.sanantonio.gov/toolkit/scorecard.asp.
BUSINESS RETENTION AND EXPANSION PROGRAM
Tampa, FL
The Greater Tampa Chamber of Commerce is in the process of carrying out a Business
Retention Program as a part of its duty to the metropolitan Tampa area. Interviews will be
conducted with approximately 300 businesses annually to collect information on business
needs. Businesses are provided with trend information on growth issues and needs. The
Chamber’s Local Business Retention and Expansion subcommittee focuses on uncovering the
topics that most affect the local business community and works to build solutions.
Charlotte, NC
The City of Charlotte has found a great deal of success among local businesses after hiring a
Business Corridor Liaison. The liaison works one-on-one with local businesses in a certain
geographical area to assist them with city services and connect them with sources of
information and at times, financing. The City Council took initiative to fund this position out of
the city’s general fund.
FINANCIAL INCENTIVES
BROWNFIELD INCENTIVES
Brownfields present a significant challenge to redevelopment in urban and suburban areas
alike. Former manufacturing facilities have left contaminated soil and water, as well as sites
that are often cut off from traditional infrastructure networks. Cities incentivize the cleanup
and redevelopment of brownfield areas in many different ways. Examples here use federal or
state programs to accomplish this, though the State of Georgia offers assistance through
several programs.
Dallas, TX
Brownfield redevelopment is funded through the EPA Brownfields Cleanup Revolving Loan
Fund.
Charlotte, NC
A special tax incentive is offered to developers seeking to redevelop brownfields and is funded
through the North Carolina Department of Environment and Natural Resources.
US Environmental Protection Agency
The federal brownfields program includes funding for grants to assess and clean up brownfields
properties, as well as funds to establish job training programs and revolving loan funds for
cleanups. These grants are available on a competitive basis to communities and non-profit
corporations. This program is funded through the Environmental Protection Agency.
State of Georgia Brownfields Program
The Georgia Brownfields program provides liability limitations for those wishing to purchase,
clean up and redevelop brownfields properties. After assessing contamination on a property
and conducting necessary cleanup of soil and source material, qualifying prospective
purchasers of brownfields properties can obtain a limitation of liability. The limitation of
liability relieves the new owner of liability for groundwater cleanup, as well as liability for third
party claims arising from the release.
Georgia also provides tax incentives for brownfields redevelopment. The brownfields tax law
allows property owners to apply for “preferential assessment” of the brownfield property. The
preferential assessment reduces property taxes for ten years, or until the certified assessment
and cleanup costs are recouped, whichever occurs first.
More information about programs offered through the State of Georgia is included in Appendix
B.
BUSINESS EQUITY LOAN
Business equity loan programs often seek to stimulate small business investments in target
areas of cities. Loans can be offered to service, retail and manufacturing businesses. While the
examples given may not offer options for Acworth, the Community Development Block Grant
Loan (CDBG) Guarantee Program may provide funds to aid startup businesses.
Charlotte, NC
This program offers equity loans to startup businesses within the I-277 uptown loop. The City's
loan works in connection with a primary loan from a bank. The bank, having identified a gap in
project financing, requests the City to participate in the project. The bank loan is contingent
upon City approval to participate in the project. Funding for this project comes from City’s
general fund.
Dallas, TX
Equity loans are provided through a partnership between area certified development
companies (CDCs) and local banks. The City has no official role in offering formal funding.
CDBG Loan Guarantee Program
Funds for this program are raised through the sale of notes through federal underwriters
following the Department of Community Affairs’ guarantee of the financing to the U.S.
Department of Housing and Urban Development (HUD). General purpose, “non-entitlement”
local governments are eligible. Local governments may (for projects approved by the Georgia
Department of Community Affairs) re-loan the proceeds to for-profit businesses and local
development authorities that may serve as eligible sub-recipient borrowers.
CORNER STORE LOAN PROGRAM
Loans are offered to property or business owners in recreating the historic neighborhood store.
Funding for the program can be used to restore or construct the facade of a mixed-use building
which faces two intersecting streets and includes a commercial use on the street level.
Charleston, SC
Loan funds are offered through the Local Development Corporation, a non-profit tasked with
redevelopment in a three-county area surrounding Charleston. Initial program funding was
provided by the National Trust for Historic Preservation, but has now been discontinued.
Savannah, GA
The program is a joint effort of the Savannah Renewal and Development Authority (SDRA) and
the City of Savannah. Funding comes from the SDRA to offer individual loans.
Acworth could utilize CDBG funds or special loans through the Economic Development
Administration to offer incentives to corner stores or retail properties that meet certain criteria.
INFRASTRUCTURE IMPROVEMENT ASSISTANCE
This grant program provides funds for the construction or improvement of transportation
infrastructure, such as roads and traffic signals, required to accommodate new facilities.
Gainesville, FL
The Infrastructure Improvement Assistance Program is a program of the State of Florida,
operated through the Enterprise Florida group. A main criteria for assistance is that the
alleviation of the problem must serve as an inducement for a specific company's location,
retention, or expansion project and create or retain jobs for Floridians.
Charlotte, NC
The program in Charlotte was formerly funded through the City’s general fund, but had been
discontinued in the past year. Staff found that the program was not providing incentive to
companies that would not have otherwise located in the area.
REVOLVING LOAN FUND
Many cities have found the Economic Development Administration’s Revolving Loan Fund (RLF)
to be useful in providing funding to support area businesses. Charleston’s Local Development
Corporation relies on this fund heavily to offer low interest loans to businesses within their
three-county area of operation.
The RLF is available to any new or existing business engaged in a manufacturing, retail or
service enterprise. Funds may be used for the acquisition and improvement of land, buildings,
plant facilities and equipment, new construction or renovation of existing facilities,
modernization, demolition and site preparation and/or working capital. Loans of $60,000 can
be made with significant job creation or retention, one (1) job for every $25,000 loaned. Loans
can be made up to 30% of the project cost.
RLF program financing will not be offered for a term longer than the life of the asset financed. A
standard term for financing will be seven (7) to ten (10) years. This term will vary, however,
dependent on the life of the assets involved and the financing needs of the business/industry
for the project. A business/industry may be offered a term up to twenty (20) years for real
estate and up to fifteen (15) years for machinery and equipment with the maximum term not to
exceed the life of the asset.
Interest rates are determined on a case-by-case basis with a minimum interest rate of 4%. All
projects are rated dependent on risk. Rates are fixed for the term of the loan. Each loan will be
secured by appropriate collateral, mortgages or liens in addition to a promissory note. New
and existing business owners will be required to invest up to 20% of the total project costs.
SECURITY GRANT PROGRAM
Charlotte, NC
The Security Grant Program in Charlotte is one of the city’s most effective programs. The
objective of the program is to reduce the opportunity for crime and create a safer environment
for employees and customers. The program is funded through the city’s general fund and
provides 50% reimbursement as follows:
All eligible buildings (unless shopping centers)
Shopping centers under 30,000 sq/ft with at least 3 retail tenants
Shopping centers over 30,000 sq/ft with at least 4 retail tenants
$3,000
$9,000
$15,000
The business applying for funding must be located in the city’s Business Revitalization Area.
Funds will pay for alarm systems (maximum $500 match), gates, security lighting, cameras,
glass windows, doors, ironwork, fencing, locking devices, and other modifications.
SMALL BUSINESS IMPROVEMENT FUND
This fund provides matching Tax Increment Financing (TIF) grants to help small and mid-sized
industrial and commercial companies improve their facilities in specially designated areas of a
city.
Chicago, IL
The program uses TIF revenues to help owners of commercial and industrial properties and/or
tenants within specific TIF districts to repair or remodel their facilities. Program participants
can receive reimbursing grants to cover up to 75% the cost of remodeling work, with a
maximum grant amount of $ 150,000. The grant does not have to be repaid.
If Acworth were to develop a tax allocation district at some point in the future, this assistance
may be offered to select businesses within the downtown area, perhaps in conjunction with
assistance offered to businesses within the DDA area.
SMALL BUSINESS MICROLOAN
Charleston, SC
As a SBA Microloan Intermediary, the Charleston Local Development Corporation provides up
to $35,000 to a small business owner or prospective owner for the operation of a for-profit
business located in Berkeley, Charleston and Dorchester Counties. Proceeds may be used for
working capital, inventory, supplies, fixtures, furniture, machinery and equipment. The moneys
cannot be used to purchase real estate or to refinance existing debt. The loan amount can be
up to $35,000 with no minimum amount. The loan term is for as long as 6 years with no prepayment penalty.
PERMITTING INCENTIVES
DEVELOPMENT FEES REBATE
Windsor, CA
The Town of Windsor’s City Centre West Area has in place a development fee rebate program
that offers rebates on most municipal fees for planning and development applications,
demolition and building permit applications including occupancy permits. This program was
enacted to assist property owners with financing the cost of development. More detailed
information about this program is included in Appendix C.
Longmont, CO
The City of Longmont offers businesses that meet certain criteria a thirty percent building
permit fee rebate. Criteria that must be met are related to job creation, increased property
valuation, a business’ ability to move quickly with construction, consistency with established
City economic development priorities and comprehensive plan goals, and the offering of higher
wages in the community. More detailed information about this program is included in
Appendix C.
PRO-RATED BUSINESS LICENSE FEES
Some cities choose to pro-rate business license fees, offering applicants a 50% reduced rate if
they apply after June 30, or halfway through the fiscal year. Permit departments may also
choose to pro-rate the fee based on the number of months the business is in operation in that
calendar year. Many cities across the country offer this service.
Anderson, SC
The City of Anderson, SC includes the following language regarding the prorating of business
license fees: “The fee required for a new resident business is based upon an estimate of total
gross receipts from the date the business is opened to December 31 of that same year. The
base fee is prorated after July 1 for new resident businesses. Non-resident business license fees
are based upon revenues earned or contracts secured within the City. Nonresident fees are not
prorated.”
PLUMBING, ELECTRICAL, HVAC AND SIGN FEE WAIVERS
Some cities utilize a fee waiver program to incentivize development or redevelopment in
certain areas of the city or to encourage the use of certain products, such as energy efficient
HVAC systems or water heaters.
Huntington Beach, CA
The Building Department has implemented a program which allows consumers to obtain
permits for Residential Energy Efficient Units at no cost. With this program, all permit fees
associated with the energy efficient unit will be waived. Items which qualify for the fee waiver
are listed below:
•
•
•
•
•
High Efficiency HVAC with an AFUE greater than 90
High Efficiency AC with a SEER 14 or higher
Tankless Water Heaters with a minimum energy factor of 0.80
Photovoltaic systems
Solar water heating systems (home or pool)
FAST TRACK PERMITTING
Cities and counties across the country operate fast track permitting procedures for certain
commercial and industrial applicants. Programs vary in organization and review time, but such
a program can provide incentive for developers to locate within the city or rehabilitate existing
structures, as they can move forward with their projects in a more timely fashion. Conditions
may be placed on this incentive to encourage certain types of development/redevelopment or
job creation.
College Station, TX
Commercial and industrial businesses meeting the following criteria are eligible for the Fast
Track Permitting Process:
•
•
•
•
•
The expanding or relocating business must create a minimum of 35 permanent, full-time
jobs within the first 12 months after its expansion or relocation to the area; or
The new or expanding business must invest a total of $3 million in building and
equipment; or
The new or expanding business must produce $2 million in gross annual payroll; and
The proposed site does not require platting, variance or rezoning to accommodate the
new proposed use;
In all instances, the new or expanding business shall have completed the qualifying
process implemented by the Research Valley Partnership on behalf of the Cities and
other local governments, and been identified as a target industry pursuant to the
Incentive Guidelines used in such process.
The College Station Fast Track Permitting Process is outlined in Appendix C.
Arlington, VA
In November 2007, the City of Arlington Inspection Services Division launched its “Fast Track”
permitting services for commercial interior alterations. The Fast Track process is an abbreviated
permit review and approval process developed to expedite permits for interior alterations in
existing commercial buildings. Construction documents for fast track permitting process are
generally reviewed on a while-you-wait basis on the same day the permit application is made.
Commercial interior alterations/renovations that do not involve the following are eligible:
• An increase in gross floor area;
• Any site change including changes to required parking; any exterior changes;
• A change in IBC Use Group;
• Plans that do not qualify for a Zoning walk through review (1st floor or below; garage
levels; top floor; penthouse; trailers; cranes; roof top);
• Any structural modification to the building; or
• More than one floor of the building (multi-level alteration may be submitted to Fast
Tack permitting process on a single-floor basis)
OTHER OPPORTUNITIES
WINDOW DISPLAY PROGRAM
One tool several communities have utilized to facilitate growth in smaller downtown areas is
the coordination of a window display program. This program links area business owners with
vacant storefronts they might use for advertising space. A program like this could easily be
enacted in Acworth with either the City or the Downtown Development Authority overseeing
implementation. All that is needed is a list of locations and someone to periodically check to
see that displays are well-maintained.
Savannah, GA
The Savannah Development Renewal Authority offers public agencies or non-profits the ability
to advertise in vacant storefronts. The SDRA manages the program, while displaying tenants
provide the actual display, labor and maintenance. Unfortunately, SDRA only funds projects
within the Savannah area. A program similar to this could be managed by the Downtown
Development Authority, while providing area businesses valuable advertising space.
BEAUTIFICATION GRANT
Beautification grants may be provided to businesses within the city to encourage more
pedestrian friendly design and the implementation of streetscape plans. The funding
mechanisms for these examples are the city’s general fund and a corporate sponsor.
Roanoke, VA
The City of Roanoke provides grants for landscaping and beautification only in their Enterprise
Zone Two. Awards are funded by the city’s general fund. The program offers to pay for up to
one-third of the cost of improvements or $25,000. Recipient businesses have up to six months
to install improvements.
Austin, TX
A group called Keep Austin Beautiful awards Neighborhood Beautification Grants annually to
support neighborhoods in their efforts to beautify and improve public spaces. Keep Austin
Beautiful designed the program to help groups of residents and neighborhood organizations
take ownership of their local environment, and build a stronger community by developing and
nurturing relationships among neighbors. The program was initially funded by a corporate
partner, Dell, but now is funded through the city’s general operating budget.
HUBZONE EMPOWERMENT CONTRACTING PROGRAM
The HUBZone Empowerment Contracting Program is a program of the Small Business
Administration and seeks to stimulate economic development and create jobs in urban and
rural communities by providing federal contracting preferences to small businesses. These
preferences go to small businesses that obtain HUBZone (Historically Underutilized Business
Zone) certification in part by employing staff who live in a HUBZone. The company must also
maintain a "principal office" in one of these specially designated areas. More information
about this program can be found in Appendix D.
APPENDIX A: TARGETED INCENTIVES
Champaign, IL: Downtown and East University Avenue Targeted Incentives
Gainesville, FL: Enterprise Zone Incentive Menu
MINOR
Redevelopment Incentive Program
Downtown Champaign y East University Ave.
Springfield A
S 4th St
S Mathews Ave
St
NM
arke
t
N Fr
emo
nt S
t
t St
t St
NW
alnu
N Ch
estnu
t
t
cust
S
ater
S
SW
S Lo
S Wright St
S 3rd St
United States Highway 45
Bash Ct
S 2nd St
S Locust St
N Mathews Ave
E White St
S 5th St
SM
arke
t St
Hill
United States Highwa
E Clark St
S 1st St
United States Highway 45
S Chest nu
t St
N Romine St
Besli
W Park St
E University Ave
E Stoughton St
E Green St
N Wright St
E Park St
East University
Avenue
E Healey St
W Hill St
Dublin
E Church St
S 6th St
n St
est e
r St
W Dublin St
N 6th St
Log
a
S Neil St
S Randolph St
S State St
Cottage Ct
S Prairie St
S Elm St
W Green St
E Ch
t
S 1st St
W Clark St
W Healey St
N 6th St
Bail
ey S
N 5th St
este
r St
r St
S 2nd St
W University Ave
Ta ylo
N 3rd St
E Ch
t
N 1st St
W Park Ave
W White St
N 4th St
E Hill St
N 2nd St
N Randolph St
N State St
N Prairie St
N Elm St
W Hill St
Main
S
W University Ave
E Columbia Ave
E Washington St
Downtown
W Church St
Poplar St
W Washington St
N Hickory St
N Neil St
W Columbia Ave
WG
Page 1
MINOR REDEVELOPMENT INCENTIVE PROGRAM
What is the Minor Redevelopment Incentive Program (RIP)?
The Minor RIP is a grant program that provides financial assistance for permanent facade and site
improvements that preserve or enhance the historical and/or architectural character of a property and
that are clearly visible from the public street, and interior alterations to make a building compliant with
accessibility code guidelines. Building maintenance activities are not eligible unless they clearly result in
significantly enhancing the appearance of the property.
All work must be a permanent part of the real estate. Tenant finish work (improvements specifically
related to the use of the building) and professional fees are not eligible, except those professional
expenses required to make a building compliant with accessibility code guidelines. Examples of
potential eligible expenses which may contribute to an aesthetic improvement:

Exterior painting
Removal of false facade
Masonry work
Window replacement/restoration
Woven acrylic awnings (with removable or no signage)
Landscaping, screening, permanent planters
Decorative lighting Decorative fencing
The Downtown and East University Avenue Tax Increment Financing District revenues fund the
Redevelopment Incentive Program.
What is the grant amount?
The Minor RIP grant is 20% of all eligible costs with a maximum of $10,000. The maximum Minor RIP
grant for the life of the program is $10,000, which is included in the overall maximum RIP grant of
$100,000 per property per 5 years.
The grant check is awarded after project completion or upon submittal of copies of invoices and proof of
payment of all related costs.
Please contact the City of Champaign Planning Department at (217)403-8800 for more information on
the Minor RIP. Information is also available about the RIP for comprehensive building or property
improvements.
Page 2
Redevelopment Incentive Program Application
Applications must be reviewed and approved before the project begins. Work completed
prior to Staff review is ineligible. If there is a significant change in the scope of the
project after the application has been approved, the applicant must re-apply using the
new scope of the projects.
Minimum Requirements

One Minor RIP application for the property per fiscal year (July 1 – June 30).
The property has received less than $100,000 in RIP assistance over the last 5 years.
If the property contains an historic structure, the original character will be maintained.
The principal use of the property shall not be sale of package liquor or an adult-only
sexually oriented business for a minimum period of ten years from the date of completion
of the project. ‘Principal use’ shall have the same meaning as in the Zoning Ordinance of
1996, or any amendment thereto.
Any debts owed to the City by the applicant or building owner are paid.
If the applicant does not own the property, the applicant has the written permission of the
property owner. (Please attach a letter from the owner granting the applicant permission
to complete the proposed improvements.)
Does this project meet all design guidelines included in this packet
The Project has adequate bank or other financing.
Applicant Name:
Business Name:
Applicant Mailing Address:
Applicant Phone Number:
Fax:
E-mail:
Grantee Name:
Grantee Social Security Number OR
Federal Employer Identification Number (FEIN):
Building Name:
Address:
Property owner(s):
Phone:
Property owner(s) Mailing Address:
General Project Description:
Received/Reviewed (date)
Staff Signature
Page 3
Project Cost Worksheet: Exhibit A
Tenant finish costs and professional fees are not eligible.
Prepared by:
Contractor Name:
Date:
Contractor Phone Number:
Description of Work
TOTAL
Facade
$
Site
$
Total
$
Total Tenant Finish Costs: $
** If the applicant is performing the labor, professional estimates for the work must be sought
and submitted. Labor fees which exceed these professional estimates are ineligible.
Please submit application to: City of Champaign Planning Department
102 North Neil Street
Champaign, IL 61820
Page 4
Effective January 1, 2002
What is the Urban
EZ program?
What are the
advantages?
What are the
limitations?
How do I receive
the credit?
Allows businesses
located in a Florida
enterprise zone, who
collect and pay
Florida sales and use
tax, a monthly credit
against their tax due
on wages paid to
new employees in a
new full-time job
who have been
employed by the
business for at least 3
months and are
residents of a Florida
enterprise zone or
are Welfare Transition
Program participants.
This incentive provides
a credit of 20% of
wages paid to new
eligible employees
who are residents of
a Florida enterprise
zone. If 20% or more
of the permanent,
fulltime employees are
enterprise zone, the
credit is 30%.
The credit is limited to the amount of tax due on each return.
There is no refund or
carry-forward for
credit in excess of the
tax due.
Form DR-15ZC must
be submitted to
an Enterprise Zone
Coordinator and DOR
within 6 months after
the new employee is
hired.
This credit is not
available if the
Enterprise Zone Jobs
Tax Credit against
Corporate Income Tax
is taken.
Within 10 working
days of receiving a
completed tax credit
application, DOR will
notify the business
that the application
has been approved.
Allows businesses
located in an
enterprise zone
who pay corporate
income tax a
corporate income tax
credit for the wages
ENTERPRISE ZONE
paid to new
JOBS TAX CREDIT
employees in a new
(Corporate Income Tax) full-time job who
§220.181,
have been employed
Florida Statutes
by the business for
at least 3 months
and are residents of
zone or are Welfare
Transition Program
participants.
This incentive provides
a credit of 20% of
wages paid to new
eligible employees
who are residents of
zone. If 20% or more of
the permanent,
full-time employees
are residents of a
Florida enterprise
zone, the credit is 30%.
Firms must earn more
than $5,000 to take
advantage of the
credit.
A five-year carryforward provision is
available for unused
portions of past
credits.
This credit is not
available if the
Enterprise Zone Jobs
Tax Credit against
Sales and Use Tax is
taken.
ENTERPRISE ZONE
JOBS TAX CREDIT
(Sales & Use Tax)
§212.096,
Florida Statutes
The credit is limited
to 24 months if the
employee remains
employed for 24
months.
Form F-1157Z, which
requires a list of
names and addresses
of eligible employees,
must be certified by
The Federal tax
burden may increase an Enterprise Zone
since state tax liability Coordinator and
submitted with the
is reduced. The
business’ corporate
amount of the credit
income tax return.
also must be added
back to Florida
taxable income.
{Page 1 of 4}
SALES TAX REFUND
FOR BUSINESS
MACHINERY AND
EQUIPMENT
USED IN AN
ENTERPRISE ZONE
§212.08(5)(h),
Florida Statutes
SALES TAX REFUND
FOR BUILDING
MATERIALS
USED IN AN
ENTERPRISE ZONE
§212.08(5)(g),
Florida Statutes
{Page 2 of 4}
What is the Urban
EZ program?
What are the
advantages?
What are the
limitations?
A refund is available
for sales taxes paid
on the purchase of
certain business
property, (e.g.
tangible personal
property such as
office equipment,
warehouse
equipment, and
some industrial
machinery and
equipment), which
is used exclusively in
an enterprise zone
for at least three
years.
This incentive reduces
the cost of purchasing
new and used
qualified tangible
personal property that
is used in an enterprise
zone.
Business equipment
must have a sales
price of at least
$5,000 per unit.
A refund is available
for sales taxes paid
on the purchase of
building materials
used to rehabilitate
real property located
in an enterprise zone.
This incentive
reduces the cost of
rehabilitating real
property that is
located in an
enterprise zone.
The total amount of
the sales tax refund
must be at least $500,
but no more than the
lesser of $5,000 or
97% of the tax paid
per parcel of property.
If 20% or more of the
permanent, full-time
employees of the
business are residents
of a Florida enterprise
zone the refund will
be no more than the
lesser of $10,000 or
97% of the tax paid
per parcel.
How do I receive
the credit?
Form DR-26S and
Form EZ-E must be
certified by an
Enterprise Zone
The maximum refund Coordinator for the
per application will be enterprise zone in
no more than $5,000 which the business is
or 97% of the tax paid. located, and must be
If 20% or more of the filed with the
permanent, full-time Department of
Revenue within
employees of the
business are residents 6 months of when the
of a Florida enterprise business equipment
is purchased or when
zone, the refund will
the tax due.
be no more than the
lesser of $10,000 or
97% of the tax paid.
Multiple applications
may be submitted.
Form DR-26S and
Form EZ-M certified
by an Enterprise Zone
Coordinator must
be filed with the
Department of
Revenue within 6
months of when the
improvements
are certified as
being substantially
complete or
within 90 days
after the property
is first subject to
assessment.
What is the Urban
EZ program?
New or expanded
businesses located
in an enterprise zone
are allowed a credit
on Florida corporate
income tax equal to
96% of ad valorem
taxes paid on the
ENTERPRISE ZONE
new or improved
PROPERTY TAX CREDIT
property (the
(Corporate Income Tax)
assessment rate
§220.182,
varies by county).
Florida Statutes
What are the
advantages?
What are the
limitations?
Any unused portion of
the credit may be
carried forward for five
years.
Firms must earn more
than $5,000 to take
advantage of the
credit.
The credit can be
claimed for five years,
up to a maximum
of $50,000 annually,
if 20% or more
employees are
enterprise zone
residents; otherwise
the credit is limited to
$25,000 annually.
How do I receive
the credit?
Businesses must file
Form DR-456 with
the county property
appraiser before
April1 of the first year
The Federal tax
burden may increase, in which the new or
since state tax liability expanded property
is subject to
is reduced. The
assessment. An
amount of the credit
Enterprise Zone
must also be added
Coordinator will
back to Florida
certify Form F-1158Z
taxable income.
and provide copies to
the Department of
Revenue. Firms must
include copies of
receipts for applicable
ad valorem taxes paid
with tax returns and
Form F-1158Z.
{Page 3 of 4}
What is the Urban
EZ program?
A 50% sales tax
exemption is
available to qualified
businesses located
in an enterprise zone
on the purchase of
electrical energy. If
20% or more of the
permanent, full-time
SALES TAX EXEMPTION employees are
FOR ELECTRICAL
ENERGY USED IN
enterprise zone,
AN ENTERPRISE ZONE the exemption is
100% of sales tax.
§212.08(15),
This exemption is
Florida Statutes
only available if
the municipality in
which the business
is located has passed
an ordinance to
exempt enterprise
zone businesses
from 50% of the
municipal utility tax.
What are the
advantages?
The 50% or 100%
exemption of state
sales tax on utilities
and the 50%
abatement of
municipal utility tax
isavailable for up to
five years.
What are the
limitations?
How do I receive
the credit?
The tax exemption
is limited to
municipalities that
have passed an
ordinance to reduce
the municipal utility
tax for enterprise zone
businesses. If 20%
or more of the
businesses employees
are residents of an
enterprise zone, the
business will receive a
larger abatement.
Form DR-15JEZ must
be filed with an
application certified
by an Enterprise Zone
Coordinator for the
zone in which the
business is located.
For additional information on Florida’s Enterprise Zone programs contact your local Enterprise Zone coordinator or:
Burt VonHoff
Office of Tourism, Trade and Economic Development
T 850.487.2568 · E-Mail: [email protected]
{Page 4 of 4}
Enterprise Florida, Inc.
The Atrium Building • Suite 201 • 325 John Knox Road • Tallahassee, FL 32303
T: 850.298.6620 • F: 850.298.6659
www.eflorida.com
Rev. 03/07
APPENDIX B: BROWNFIELDS ASSISTANCE
GEORGIA BROWNFIELDS 101
Introduction
Both federal and state governments have become increasingly concerned about environmental and
economic blight caused by contaminated property. Often contaminated properties are not cleaned up
because economic factors make it too difficult or there is the appearance that it would be too difficult. The
name that has been coined for these properties is “Brownfields.” Developers often do not consider
redeveloping such properties, preferring to develop “greenfield,” or uncontaminated, properties instead.
Brownfield properties may languish in a contaminated, unproductive state for years, contributing to
neighborhood decay and urban blight in addition to posing risks to human health and the environment.
Recent federal and state legislation has been enacted to provide incentives for the cleanup and
redevelopment of Brownfields properties. The goals of federal and state Brownfields legislation are to:
•
•
•
•
Enhance protection of human health and the environment,
Reduce urban sprawl by encouraging in-fill redevelopment,
Revitalize neighborhoods, and
Increase community tax base by returning these underutilized properties to productive use.
Q. What is a Brownfield?
A. There are both federal and state definitions of Brownfields, with important differences:
The US Environmental Protection Agency defines a federal Brownfield as:
“Real property, the expansion, redevelopment, or reuse of which may be complicated by the presence
or potential presence of a hazardous substance, pollutant, or contaminant and includes land
contaminated by petroleum or petroleum products, a controlled substance as defined in the Controlled
Substance Act, or mine-scarred land.”
The State of Georgia does not explicitly define Brownfields but instead establishes specific criteria for a
property to qualify for state Brownfields incentives. Properties in Georgia cannot be considered a Brownfield
until a release of a hazardous substance has been discovered through environmental sampling.
Both federal and state Brownfields laws exclude properties that:
– Are listed on the National Priorities List (Superfund Sites),
– Are the subject of a judicial or administrative order,
– Have a planned or ongoing removal action (cleanup) under federal law, or
– Have a hazardous waste facility permit.
Q. Why would anyone want to develop a Brownfield property?
A. Location, location, location. Many of these properties are in desirable locations, but haven’t been
developed to their full potential due to contamination issues. These properties either have the potential to
be profitably redeveloped using private funding, or they could provide benefits to communities if public
funding can be obtained. And, the state and federal incentives have been created in order to provide extra
encouragement to redevelop these Brownfields.
Q. What federal and state Brownfields incentives are available?
A. The federal Brownfields program includes funding for grants to assess and clean up Brownfields
properties, as well as funds to establish job training programs and revolving loan funds for cleanups. These
grants are available, on a competitive basis, to communities and non-profit corporations.
The Georgia Brownfields program provides liability limitations for those wishing to purchase, clean up and
redevelop Brownfields properties. After assessing contamination on a property and conducting necessary
cleanup of soil and source material, qualifying prospective purchasers of Brownfields properties can obtain
a limitation of liability. The limitation of liability relieves the new owner of liability for groundwater cleanup, as
well as liability for third party claims arising from the release.
Georgia also provides tax incentives for Brownfields redevelopment. The Brownfields tax law allows
property owners to apply for “preferential assessment” of the Brownfield property. The preferential
assessment reduces property taxes for ten years, or until the certified assessment and cleanup costs are
recouped, whichever occurs first.
Q. What are the main steps in redevelopment of a Brownfield?
A. They vary somewhat with different projects, but generally include:
• Community or business strategic plan/redevelopment vision/partners
• Property selection/eligibility
• Property access/ownership issues
• Financing – public or private
• Environmental assessment (sampling and characterization of contamination)
– soil contamination
– source material
– groundwater
– risk assessment
• Corrective Action Plan (for on-site soil and source material)
• Compliance Status Report (CSR) reports findings and certifies cleanup is complete
• Limitation of Liability issued
• Redevelopment (Marketing, partnerships, long-term strategic planning, design guidelines,
incentives - including limitations on liability)
• Application for preferential tax assessment
Q. Are sites listed on the State Superfund list eligible for Brownfields incentives?
A. Yes. As long as there are no outstanding liens against the property under the State Superfund Program,
the site can qualify as a Brownfield. (The site does NOT need to be listed on the Hazardous Site Inventory
to qualify, but there must be a pre-existing release of a hazardous constituent on the property.)
Resources:
Contact:
www.state.ga.us/epd/environ/
www.epa.gov/brownfields/
Madeleine Kellam, Georgia Brownfields Coordinator; (404) 657-8645;
[email protected]
draft
APPENDIX C: PERMITTING ASSISTANCE
Windsor, CA: Development Fees Rebate Program
Longmont, CO: Permit Fee Rebate Program
College Station, TX: Fast Track Permitting Process
CITY CENTRE WEST
COMMUNITY IMPROVEMENT PLAN
DEVELOPMENT AND BUILDING FEES REBATE
GRANT PROGRAM
The rebate would apply to most municipal fees for
planning and development applications, and to
Demolition and Building Permit applications including
occupancy permits.
PURPOSE OF INCENTIVE
This grant program is intended to assist property
owners with financing the cost of the development
process by providing a grant to offset some of the
amount for all applicable Development and Building
Permit fees.
DETAILS OF THE PROGRAM
1. The Development and Building Fee Rebate
Grant Program is specific to the City Centre West
Community Improvement Project Area, as defined
in the City Centre West Community Improvement
Plan.
2. The Development and Building Fee Rebate Grant
Program will consist of a grant program, whereby
registered property owners or assignee will be
eligible to receive a one-time grant in the amount
of up to 100% of the eligible Development
Application and Building Permit Fees, including
Official Plan and Zoning By-law Amendments,
Minor Variances, Consents to Sever, Site Plan
Control and Development Agreements, Plans
of Subdivision and Condominium, Rental Housing
Protection Act applications, Sign Permit
applications, Street and Alley closures, Sidewalk
Café applications and Encroachment Agreements. Condominium conversions are not eligible for the Development Fees rebate portion of this project.
3. A project will be considered eligible for the
Development and Building Fee Rebate Grant Program if it meets the “Bronze” Design Performance Level and above as described in the Performance Base Design Guidelines for City Centre West, and meets the intent of the City Centre West Community Improvement Plan and any other document deemed to be relevant as determined by the City Planner.
4. The amount of the grant would be determined
based the Design Performance Level achieved
by the development. Consistent with the
philosophy of the Community Improvement Plan
that rewards higher levels of performance; the
actual grant amount will be more favourable for
developments that achieve higher Design
Performance Levels. Following are the
grants and grant amounts available for each
Design Performance Level:
• A grant in the amount of 50% for all
Development Application fees and 50%
of Building Permit fees, except for all third
party disbursement and/or legal costs, such
as advertising fees, registration of documents,
(or $10,000, whichever is less) will be
available for developments that achieve a
“Bronze” Design Performance Level.
of Building Permit fees, except for all third party
disbursement and/or legal costs, such as
advertising fees, registration of documents,
“Silver” Design Performance Level.
of Building Permit fees, except for all third party
disbursement and/or legal costs, such as
advertising fees, registration of documents,
“Gold” Design Performance Level.
5. Following the completion of the approved work
and final building inspection by the Building and
Development Department, the Development and
Building Fee Rebate Grant Program grant will be
provided for approved projects.
6. A completed Development and Building Fee
Rebate Grant Program application form must be
submitted and approved by the City at the time of
application for a Building Permit. Any work
commencing prior to City approval will not be
eligible for the program. The Development and
Building Fee Rebate Grant Program will not be
retroactively applied to developments where
building permits were issued prior to the
commencement of the program.
Schedule 5: City Centre West Financial Incentive Programs
MMAH Approved July 27, 2006
5-17
CITY CENTRE WEST
COMMUNITY IMPROVEMENT PLAN
7. Property owners who are in arrears of property
taxes or any other financial obligation are not
eligible to receive the Development and Building
Fee Grant.
8. The provision of any Development and
Building Fee Rebate Grant Program will be
administered on a first come first served basis to
the limit of available funding in accordance with
any administrative rules governing this and other
grant or loan programs.
9. A Development and Building Fee Rebate Grant
Program grant may be received by an eligible
recipient in combination with any other municipal
program offered by the City Centre West
Community Improvement Plan. However, in
accordance with the Planning Act, the total of this
rebate and any other grants and loans provided
by the municipality to the developer, either
individually or collectively, cannot exceed the cost
of rehabilitating the subject land and buildings.
AREAS OF APPLICABILITY
The Development and Building Fee Rebate Gran
Program is applicable to development proposals
on all public and private properties within the City
Centre West Community Improvement Project Area.
The Program will be applied to both public and
private property in accordance with the details of the
program described above.
PROGRAM BUDGET
City Council will establish a budget for the
implementation of the City Centre West Community
5-18
Schedule 5: City Centre West Financial Incentive Programs
MMAH Approved July 27, 2006
Improvement Plan. The budget amount available
for the Development and Building Fee Rebate Grant
Program shall be determined annually by City Council. City Council may cancel the Development
and Building Fee Rebate Grant Program at its discretion.
Revised 3/19/2007
CITY OF LONGMONT
ECONOMIC DEVELOPMENT BUSINESS PERSONAL PROPERTY TAX REBATE
AND BUILDING PERMIT FEE REBATE PROGRAM
ADMINISTRATIVE PROCEDURES
A.
Preface
In 1986, the Longmont City Council, Chamber of Commerce, and Longmont Area
Economic Council (LAEC) discussed methods of stimulating additional
commercial/industrial growth and development as well as how to encourage
expansion of existing commerce and industry within the Longmont community. As a
result, the Council implemented a program to provide relief from certain City
building permit fees when new development or redevelopment occurred, believing
that the new jobs would provide a greater long term community benefit beyond the
short term collection of building-related fees. This program has evolved over time,
and has recently changed after receiving information from the LAEC regarding the
desirability of offering Business Personal Property Tax rebates, for four consecutive
years, to eligible applicants as another option for new and expanding industry. The
following information and criteria would then be used when evaluating an applicant’s
merits and eligibility for the City of Longmont’s Economic Development Business
Personal Property Tax rebates or the Building Permit Fee Rebate program.
B.
Criteria for Consideration in City Business Personal Property Tax Rebate or
Building Permit Fee Rebate Program
The following criteria, if achieved with new or expanding development, will have the
greatest impact on the economic health of the community.
Job Creation: The creation of primary jobs will have a spin-off effect of greater
employment and more dollars available to be spent in the community for goods and
services. This results in a healthier marketplace and business climate which should
also stimulate greater sales tax collection for the City. In order to be eligible for the
program an applicant must agree to increase its number of primary jobs by at least
10%, with a minimum of 10 new jobs, during the initial year after receiving a
certificate of occupancy. That same number of jobs must also be maintained for the
full four years resulting in a net increase of overall jobs as initially represented in
order to receive the personal property tax rebate for those four years.
Increased Property Valuation: The City's General Fund is aided further when the
community's tax base is strengthened. A new development of substantial size will
provide the City with increased property taxes collected, although this revenue will
not be realized until the year following completion of construction.
Company’s Ability To Meet Economic Development Goals Within A Given
Time Frame: The need for economic stimulation is immediate and little is gained if
L:\DELVECCH\Economic Development\Economic Development Incentives Rebate Program.doc
1
Revised 3/19/2007
only speculative development is proposed. The ability to commence a project in the
short term (e.g., one year after applying for the economic incentive) stimulates
further development, places the project on the tax rolls, and generates income to the
community in a reasonable period of time.
Consistent With Established Economic Development Priorities And/Or
Longmont Area Comprehensive Plan Goals: New and expanding industries are
desirable provided they show this consistency. The economic development program
formulated by the City of Longmont and the Longmont Area Economic Council
(LAEC) gives preference to businesses and firms which:
•
Show growth potential and diversify the economy
•
Benefit other industries in the local economy and generate high multiplier
effects
•
Meet employment needs of local residents
•
Generate new tax revenues
•
Meet environmental and aesthetic standards of the community.
•
Make relatively efficient use of valuable land resources
Goals that relate specifically to the Longmont Area Comprehensive Plan include:
•
Encourage orderly growth of industrial development, leaning more toward
high value, clean industries
•
Coordinate development of industrial areas consistent with area-wide and
redevelopment goals
•
Strive for a well-balanced, diversified and stable economic base in order to
provide job opportunities for Longmont residents and a dependable tax base
for the City
•
Create and maintain a business environment that encourages the retention,
growth, and continued profitability of existing businesses which benefit the
city, its tax base and its residents
Higher Wages – consideration should be given to those employers willing to pay
wages at least 5% above the Boulder County average which amounts to
$25.20/hour. This average is based on 2006 information and would be annually
updated based on information from the Colorado Department of Labor. The
employer would need to indicate how the average of all new employees would meet
2
Revised 3/19/2007
this criterion. Hopefully, having a higher wage will better enable Longmont residents
to live and work within the City.
C.
Process for Consideration of City Economic Development Business Personal
Property Tax Rebates or Building Permit Fee Rebate Program.
A company wanting to be considered for Economic Development Business Personal
Property Tax or Building Permit Fee rebates should complete the application forms
in the appendix of this report and submit them to the City Community Development
Department Director who will then review the project against the applicable criteria
and, if criteria are met, will authorize a 50% rebate of the incremental increase in
Business Personal Property Tax (for four years) or a 30% Building Permit Fee
Rebate. Any rebate desired beyond that which is granted administratively must be
reviewed and approved by the City Council. Upon approval of the application, an
agreement will be drawn up by the Longmont City Attorney (see attachment #1) to
allow rebate of the Business Personal Property taxes or Building Permit Fees once
conditions of the agreement are met.
To summarize the basic features of the City Economic Development Business Personal
Property Tax Rebate or Building Permit Fee Rebate Programs:
1.
Any relocating or expanding primary employer is eligible to apply for the Business
Personal Property Tax rebate or Building Permit Fee Rebate at the time of applying
for a building permit or no later than receiving a certificate of occupancy. A primary
job is defined as one from a company which sells the majority of its goods or
services outside Boulder County. (Form D-1)
2.
The proposed project must satisfy enough criteria to receive at least 8 points to be
considered eligible for a 50% rebate of the incremental increase in Business
Personal Property Tax or a 30% Building Permit Fee Rebate. (Form D-2)
3.
The company must sign an agreement (attachment #1) assuring that the respective
criteria will be met within one year from the issuance of a Certificate of Occupancy
(Form D-4). The personal property tax rebate would be for four (4) consecutive
years with the first year rebate occurring within 6 months after one full taxable year
of occupancy. The Building Permit Fee Rebate would be granted prior to receiving a
certificate of occupancy.
4.
The program will be administered within the Community Development and Finance
Departments and subject to appeal to the City Manager. An applicant may also
appeal the decision to the City Council.
3
Revised 3/19/2007
D.
ECONOMIC DEVELOPMENT BUSINESS PERSONAL PROPERTY TAX REBATE
OR BUILDING PERMIT FEE REBATE PROGRAM
Instructions for Application
1.
Company completes Forms D-1, D-2 and signs D-4, submitting additional
information available to verify projected economic impact on the community. Submit
all forms and supplemental information to the Community Development Department
Director for review and approval.
2.
Form D-2: This form identifies six specific thresholds with points given to each
criterion that the proposed project can meet. At least 8 points must be obtained to
allow a project to qualify for the (50%) rebate of the incremental increase in
Business Personal Property Tax or (30%) Building Permit Fee rebate program.
3.
Form D-3: Calculation of Development (Permit) Fee Rebate or Personal Property
Tax Rebate eligible to be granted and calculated by City staff.
4.
Form D-4: Economic Development Business Personal Property Tax Rebate or
Building Permit Fee Rebate Certification form that must be signed by the applicant’s
Chief Executive Officer and properly notarized.
5.
If Business Personal Property Tax rebate is granted, it will be issued by the Finance
Department within 6 months following full payment of personal property taxes
pursuant to an agreement (attachment #1) prepared by the City Attorney. If a Fee
Rebate is granted, it will occur prior to receiving a certificate of occupancy.
4
Revised 3/19/2007
FORM D-1
CITY OF LONGMONT
APPLICATION FOR ECONOMIC DEVELOPMENT BUSINESS PERSONAL PROPERTY
TAX REBATE OR BUILDING PERMIT FEE REBATE PROGRAM
COMPANY: ____________________________________________________________
ADDRESS: ____________________________________________________________
CONTACT PERSON: ____________________________PHONE:__________________
DESCRIPTION:
(Briefly describe project, jobs, capital investment, acreage/square
footage, etc.) In order to be eligible for the Business Personal Property Tax rebate or
Building Permit Fee Rebate, the applicant must demonstrate that primary jobs will be
established at salaries at least 5% above the average for Boulder County and be increasing
the base number of jobs by 10% or 10 during the initial year of receiving a certificate of
occupancy. (Please attach additional information if necessary)
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
LOCATION: ______________________________________________________________
5
Revised 3/19/2007
FORM D-2
CITY OF LONGMONT
BUSINESS PERSONAL PROPERTY TAX REBATE OR BUILDING PERMIT FEE
REBATE CRITERIA CALCULATION
CRITERIA (Check each area that applies)
*To be eligible, a new or existing employer must be
increasing total jobs by 10% or a minimum of 10 during the
initial year of receiving a certificate of occupancy
Points
Achieved
Total
Points
Possible
1.
Hire at least 30% of new employees who will live in Longmont
1
2.
Project meets Longmont Area Comprehensive Plan goals and
policies.
1
3.
Project will help diversify the local economic base.
1
4.
For each new job, Company will pay at least 5% above the
average salary in Boulder County which is currently $25.20/hr.
5
5.
Company will institute a training program for Longmont
residents to meet the skill needs of the company within 1 year.
1
6.
Other conditions contributing to Council’s economic goals and
objectives ( e.g. jobs based on intellectual patents)
1
TOTAL
10
Of the 10 points possible, a project shall have a minimum of 8 points to be considered for
a 50% rebate of incremental Business Personal Property Tax or 30% Building Permit Fee
Rebate
*Primary Jobs -- Defined as employment from a company which sells the majority of its
goods and services outside of Boulder County.
6
Revised 3/19/2007
FORM D-3 COMPLETED BY CITY STAFF
CALCULATON OF CITY DEVELOPMENT FEES/
PERSONAL PROPERTY TAX REBATE
Date:
Project Name:
Step 1: Record Level of Fee Adjustment
Points achieved by meeting criteria from Form D-2:
Fee Adjustment Schedule:
8+ points = 30% rebate of City Development Fees or
50% rebate of Business Personal Property Tax
Step 2: Amount of City Fees from Project
City Development Permit Fees
Eligible to be Rebated
I
Fee Requirement
II
% Rebate
1. Building Permit
$
% $
2. Plan Check
$
% $
3. Electric Connection
4. Transportation Community
Investment Fee (for infill
projects only – 50%)
5. City Sales Tax
$
% $
$
% $
$
% $
6. Grading Permit
$
% $
Total
$
% $
III
Net Amount
Due
Business Personal Property Tax
$
% $
(50%)*
* Use valuation from County Assessor’s records, multiply by .29, then multiply by
Longmont’s current mill levy 13.24.
Note: City staff will be responsible for completing this form
7
Revised 3/19/2007
FORM D-4
CITY OF LONGMONT
ECONOMIC DEVELOPMENT BUSINESS PERSONAL PROPERTY TAX REBATE OR
BUILDING PERMIT FEE REBATE CERTIFICATION
This certifies that the information submitted to the City of Longmont in application for a
Business Personal Property Tax rebate or Building Permit Fee Rebate consideration is
accurate and true in all aspects.
It is further certified that the project for which this Business Personal Property Tax
rebate or Fee Rebate is being applied must meet the conditions of the agreement within 1
year after the certificate of occupancy is issued. The applicant also understands that City
representatives will be contacting the company to verify the number of new employees and
salaries identified on Form D-2.
It is understood and hereby agreed upon that any failure to comply with the
certifications herein attested to may result in the invalidation of any incentive offered and
result in the immediate revocation of any Business Personal Property Tax rebated or
Building Permit Fees rebated. Further legal remedy (e.g. financial audits) may also be
pursued as determined by the City.
Chief Executive Officer
Date signed
SUBSCRIBED AND SWORN BEFORE ME THIS_____day of _______________, 200___
My Commission Expires______________
__________________________________
Notary Public
BUSINESS PERSONAL PROPERTY TAX OR BUILDING PERMIT REBATE GRANTED:
__________________________________
Community Development Director
__________________________
Date
__________________________________
City Manager (Appeal)
__________________________
Date
March 19, 2007
8
FAST TRACK PERMITTING PROCESS
The Client's Committment
(red)
Pre-application
Conference
The City's Committment
(blue)
Team formation to
customize timeline in
partnership with client
Client
determines
this time
frame
Project Design Phase:
your design professionals develop
construction plans
City's Development
Review Team is
available to consult
weekly with your
design professionals
Full submittal of
construction plans
Site Plan
Utility & Drainage
Building
Completion of
Plans Review
Client
determines
this time
frame
Revised construction
plans submitted
10 days
Final approval
10 days
APPENDIX D: HUBZONE PROGRAM
SBA HOME
Who We Are
HUBZone
PRO-Net
SEARCH
The HUBzone Empowerment Contracting program provides federal contracting
opportunities for qualified small businesses located in distressed areas. Fostering
the growth of these federal contractors as viable businesses, for the long term,
helps to empower communities, create jobs, and attract private investment.
COMMENTS
Program History
The HUBZone Empowerment Contracting program was enacted into law as part
of the Small Business Reauthorization Act of 1997. The program falls under the
auspices of the U.S. Small Business Administration. The program encourages
economic development in historically underutilized business zones - "HUBZones"
- through the establishment of preferences.
SBA's Hubzone program is in line with the efforts of both the Administration and
Congress to promote economic development and employment growth in
distressed areas by providing access to more Federal contracting opportunities.
How the HUBZone Program Works
•
•
•
•
•
The U.S. Small Business Administration (SBA) regulates and implements
the program,
determines which businesses are eligible to receive HUBZone contracts,
maintains a listing of qualified HUBZone small businesses Federal
agencies can use to locate vendors,
adjudicates protests of eligibility to receive HUBZone contracts, and
reports to the Congress on the program's impact on employment and
investment in HUBZone areas.
Publication of Final Rule
The final rule for the HUBZone Empowerment Contracting Program was
published on June 11, 1998. The interim Federal Acquisition Regulation (FAR)
FAC 97-10, FAR Case 97-307 was published on December 18, 1998 to give
effect to the contracting component of the program on January 4, 1999. The
comment period for the FAR expired on February 18, 1999. The final rule is
expected to be published in mid to late April.
Eligibility
A small business meets all of the following criteria to qualify for the Hubzone
program:
•
•
it must be located in a "historically underutilized business zone,"
it must be owned and controlled by one or more U.S. Citizens, and
•
at least 35% of its employees must reside in a HUB Zone.
Historically Underutilized Business Zone
A "HUBZone" is an area that is located in one or more of the following:
•
•
•
a qualified census tract (as defined in section 42(d)(5)(C)(i)(I) of the
Internal Revenue Code of 1986);
a qualified "non-metropolitan county" (as defined in section 143(k)(2)(B)
of the Internal Revenue Code of 1986) with a median household income
of less than 80 percent of the State median household income or with an
unemployment rate of not less than 140 percent of the statewide
average, based on U.S. Department of Labor recent data; or
lands within the boundaries of federally recognized Indian reservations.
Types of HUBZone Contracts
A competitive HUBZone contract can be awarded if the contracting officer has a
reasonable expectation that at least two qualified HUBZone small businesses will
submit offers and that the contract can be awarded at a fair market price.
A sole source HUBZone contract can be awarded if the contracting officer does
not have a reasonable expectation that two or more qualified HUBZone small
businesses will submit offers, determines that the qualified HUBZone small
business is responsible, and determines that the contract can be awarded at a
fair price. The government estimate cannot exceed $5 million for manufacturing
requirements or $3 million for all other requirements.
A full and open competition contract can be awarded with a price evaluation
preference. The offer of the HUBZone small business will be considered lower
than the offer of a non-HUBZone/non-small business-providing that the offer of
the HUBZone small business is not more than 10 percent higher.
Goaling
The Small Business Reauthorization Act of 1997 increases the overall
government wide procurement goal for small business from 20% to 23%. The
statute sets the goal for HUBZone contracts as follows: 1999 - 1%; 2000 - 1 ½ %;
2001 - 2%; 2002 - 2 ½ %; 2003; and each year thereafter - 3%.
Affected Federal Agencies
Until September 30, 2000, the HUBZone Empowerment Contracting Program
applies only to the procurements of the following Federal agencies: U.S.
Department of Defense (DOD), U.S. Department of Agriculture (USDA), U.S.
Department of Health and Human Services (HHS), U.S. Department of
Transportation (DOT), U.S. Department of Energy (DOE), U.S. Department of
Housing and Urban Development (HUD), U.S. Environmental Protection Agency
(EPA), U.S. National Aeronautics and Space Administration (NASA), U.S.
General Services Administration (GSA), and U.S. Department of Veterans Affairs
(VA).
APPENDIX E: FUNDING OPTIONS
SMALL BUSINESS ADMINISTRATION CDC/504 PROGRAM
Overview
The CDC/504 loan program is a long-term financing tool offered by the US Small Business
Administration (SBA) for economic development within a community. The 504 Program
provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as
land and buildings. A Certified Development Company is a nonprofit corporation set up to
contribute to the economic development of its community. CDCs work with the SBA and
private-sector lenders to provide financing to small businesses. There are about 270 CDCs
nationwide, with each covering a specific geographic area.
Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender
covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC
(backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost,
and a contribution of at least 10 percent equity from the small business being helped.
Maximum Award
The maximum SBA award is $1,500,000 when meeting the job creation criteria or a community
development goal. Generally, a business must create or retain one job for every $50,000
provided by the SBA except for "Small Manufacturers" which have a $100,000 job creation or
retention goal (see below).The maximum SBA debenture is $2.0 million when meeting a public
policy goal.
The public policy goals are as follows:
• Business district revitalization.
• Expansion of exports.
• Expansion of minority business development.
• Rural development.
• Increasing productivity and competitiveness.
• Restructuring because of federally mandated standards or policies.
• Changes necessitated by federal budget cutbacks.
• Expansion of small business concerns owned and controlled by veterans (especially
service-disabled veterans)
• Expansion of small business concerns owned and controlled by women.
The maximum debenture for "Small Manufacturers" is $4.0 million. A Small Manufacturer is
defined as a small business concern that has:
• Its primary business classified in sector 31, 32, or 33 of the North American Industrial
Classification System (NAICS); and
• All of its production facilities located in the United States.
In order to qualify for a $4 million 504 loan, the Small Manufacturer must 1) meet the definition
of a Small Manufacturer described above, and 2) either (i) create or retain at least 1 job per
$100,000 guaranteed by the SBA [Section 501(d)(1) of the Small Business Investment Act (SBI
Act)], or (ii) improve the economy of the locality or achieve one or more public policy goals
[sections 501(d)(2) or (3) of the SBI Act].
Eligible Expenditures
Proceeds from 504 loans must be used for fixed asset projects such as: purchasing land and
improvements, including existing buildings, grading, street improvements, utilities, parking lots
and landscaping; construction of new facilities, or modernizing, renovating or converting
existing facilities; or purchasing long-term machinery and equipment.
The 504 Program cannot be used for working capital or inventory, consolidating or repaying
debt, or refinancing.
Terms, Interest Rates and Fees
Interest rates on 504 loans are pegged to an increment above the current market rate for fiveyear and 10-year U.S. Treasury issues. Maturities of 10 and 20 years are available. Fees total
approximately three (3) percent of the debenture and may be financed with the loan.
Collateral
Generally, the project assets being financed are used as collateral. Personal guaranties of the
principal owners are also required.
Eligible Businesses
To be eligible, the business must be operated for profit and fall within the size standards set by
the SBA. Under the 504 Program, the business qualifies as small if it does not have a tangible
net worth in excess of $7.5 million and does not have an average net income in excess of $2.5
million after taxes for the preceding two years. Loans cannot be made to businesses engaged in
speculation or investment in rental real estate.
Capital Development Companies
Capital Partners
6445 Powers Ferry Road, Suite 210
Atlanta, Georgia 30339
Phone: (404) 475-6000
Georgia Small Business Capital
4500 Hugh Howell Road, Suite 640
Tucker, Georgia 30084
Phone: (404) 373-8601
DEPARTMENT OF COMMUNITY AFFAIRS LOCAL DEVELOPMENT FUND
Overview
The purpose of the Local Development Fund is to provide eligible recipients with limited state
financial assistance to meet important local community development or improvement needs
without supplanting other major sources of assistance. All municipalities, counties,
consolidated governments, and joint partnerships of municipal, county and consolidated
governments are eligible to apply for grants from the Local Development Fund.
Eligible and Ineligible Activities
Eligible Activities: Activities implementing approved plans prepared in accordance with the
Georgia Planning Act of 1989 or the Georgia Comprehensive Solid Waste Management Act
including, but not limited to, affordable housing and special needs housing activities, downtown
development, tourism and related marketing activities, recreation improvements, community
facilities, and historically appropriate improvements of governmental buildings currently on the
National Register of Historic Places.
Ineligible Activities: Include, but are not limited to, basic government services such as general
construction of, or general improvements to, city halls, county courthouses and public safety
facilities. The Local Development Fund cannot be used for administrative, overhead expenses
or anything that would violate the gratuity clause of the State Constitution.
Eligible Recipients
In order to receive a Local Development Fund grant, the applicant must be at the time of grant
award:
• In compliance, if applicable, with the requirements of the Local Government Financial
Management Act;
• A Qualified Local Government, if applicable, as outlined in the Georgia Planning Act of
1989;
• In compliance, if applicable, with the Service Delivery Strategy law; and
• Able to demonstrate that it can contribute a minimum of 50% of the total project cost in
local cash or in-kind match.
Application
Applicants can only submit one application per competition per community. This includes
communities that are part of a joint application as well.
Grant Limits & Match Requirements
Single-community applications cannot exceed $20,000 in Local Development Fund grant
assistance. Joint applications must demonstrate a need for joint submission and cannot exceed
$50,000 in Local Development Fund assistance.
In all cases, no more than 50% of the total project cost can be paid for by the Local
Development Fund and any other state funds. A local cash or in-kind match no less than dollar
for dollar of the grant amount is required. The match must be available for expenditure at the
time of the grant award. Funds expended prior to the date of grant award cannot be counted
as match. Each party to a joint application must demonstrate that it will contribute, in some
way, to the required local match.
Application Requirements
All applications must be submitted on the Application Form provided by the Department and
shall also include the information described below. The entire application package, including
supporting documentation such as maps and pictures, should be limited to no more than 12
pages. A complete application will include statements on the project description, source and
use of funds, and service delivery strategy consistency.
Contact
Georgia Department of Community Affairs
60 Executive Park South, NE
Atlanta, GA 30329
Phone: (404) 679-4940
http://www.dca.state.ga.us/economic/financing/programs/ldf.asp
STATE PREFERENTIAL PROPERTY TAX ASSESSMENT PROGRAM
FOR REHABILITATED HISTORIC PROPERTY
Overview
This incentive program is designed to encourage rehabilitation of both residential and
commercial historic buildings by freezing property tax assessments for eight and one-half years.
The assessment of rehabilitated property is based on the rehabilitated structure, the property
on which the structure is located, and not more than two acres of real property surrounding the
structure.
Eligible Properties
The property must be listed or eligible for listing in the Georgia Register of Historic Places either
individually, or as a contributing building within a historic district.
Requirements to Participate
1) The cost of rehabilitation must meet the substantial rehabilitation test. This test is met
by increasing the fair market value of the building by the following percentages. The
county tax assessor is the official who makes this determination.
•
•
•
Residential (owner-occupied residential property): rehabilitation must increase
the fair market value of the building by at least 50%.
Mixed-Use (primarily owner-occupied residential and partially income-producing
property): rehabilitation must increase the fair market value of the building by at
least 75%.
Commercial and Professional Use (income-producing property): rehabilitation
must increase the fair market value of the building by at least 100%.
2) The property owner must obtain preliminary and final certification of the project from
HPD.
3) Rehabilitation must be in accordance with the Department of Natural Resources’
Standards for Rehabilitation and must be completed within two years.
Contact
Historic Preservation Division
Department of Natural Resources
34 Peachtree Street, NW; Suite 1600
Atlanta, GA 30303
Phone: (404) 656-2840
GEORGIA STATE INCOME TAX CREDIT PROGRAM
FOR REHABILITATED HISTORIC PROPERTY
Overview
The program provides property owners of historic homes who complete a Department of
Natural Resources-approved rehabilitation the opportunity to take 10% of the rehabilitation
expenditures as a state income tax credit up to $5,000. If the home is located in a target area,
as defined in O.C.G.A Section 48-7-29.8, the credit may be equal to 15% of rehabilitation
expenditures up to $5,000, and for any other certified structure, the credit may be equal to 20%
of rehabilitation expenditures up to $5,000. The credit is a dollar for dollar reduction in taxes
owed to the State of Georgia and is meant to serve as an incentive to those who own historic
properties and wish to complete a rehabilitation. The credit will not exceed $5,000 for any
single project in any 120-month period.
Eligible Properties
The property must be eligible for or listed in the Georgia Register of Historic Places. To find out
if a property qualifies, please contact the Historic Preservation Division’s National Register
specialist at 404-651-5911.
Does the rehabilitation have to be reviewed and approved?
Yes, the rehabilitation must meet DNR’s Standards for Rehabilitation. The Department of
Natural Resources’ Historic Preservation Division reviews all projects to certify that the project
meets the Standards according to DNR Rules 391-5-14.
How much does a project have to cost to qualify?
Every project must meet the substantial rehabilitation test and the applicant must certify to the
Department of Natural Resources that this test has been met. The substantial rehabilitation test
is met when the qualified rehabilitation expenses exceed the following amounts:
1) For a historic home used as a principal residence, the lesser of $25,000 or 50% of the
adjusted basis of the building
2) For a historic home used as a principal residence in a target area, $5,000
3) For any other certified historic structure, the greater of $5,000 or the adjusted basis of
the building
At least 5% of the qualified rehabilitation expenditures must be allocated to work completed to
the exterior of the structure. Acquisition costs and costs associated with new construction are
not qualified rehabilitation expenses.
PRESERVE AMERICA GRANTS
Overview
Preserve America grants offer planning funding from the Federal Government to support
communities that have demonstrated a commitment to preserving, recognizing, designating,
and protecting local cultural resources. Grants are available to assist local economies find selfsustaining ways to promote and preserve their cultural resources through heritage tourism.
Who May Apply
• Designated Preserve America Communities *
• Designated Preserve America Neighborhoods *
• Certified Local Governments (CLG) in the process applying or having received Preserve
America Community designation (the Preserve America designation application must be
received by the Advisory Council on Historic Preservation prior to the grant deadline)
• State Historic Preservation Offices (SHPO)
• Tribal Historic Preservation Offices (THPO)
* Preserve America Communities and Preserve America Neighborhoods located within a
federally designated National Heritage Area are eligible provided that they are not currently
receiving Federal funds from the National Heritage Area management entity.
For information on how to be designated as a Preserve America community, contact the
Advisory Council on Historic Preservation at (202) 606-8503, email [email protected], or visit
www.preserveamerica.gov.
Eligible Expenditures
Preserve America grants support planning, development, and implementation of innovative
activities and programs in heritage tourism such as surveying and documenting historic
resources, interpreting historic sites, planning, marketing, and training. Successful applicants
will emphasize creative projects that promote and preserve the community’s cultural
resources. Successful projects will involve public-private partnerships and serve as models to
communities nationwide for heritage tourism, education, and economic development. Projects
must fit one, and only one, of the categories listed below. Please see the example projects at
the end of this document.
•
•
•
•
•
Research and Documentation
Interpretation and Education
Planning
Marketing
Training
Grant Amounts
The minimum grant request is $20,000 Federal share (resulting in a total project cost of
$40,000). The maximum grant request is $250,000 (resulting in a total project cost of
$500,000). Please note that the selection panel may, at its discretion, award less than the
minimum grant request.
** 2008 Grant Recipient: City of Kennesaw**
Downtown Directional Wayfinding Signage Program
Kennesaw, Georgia
$50,000
The City of Kennesaw boasts a rich heritage dating to the 1830s when the town was founded in
conjunction with the construction of a rail line through Cobb County. The keystone of the
downtown historic district is the Railroad Depot which now houses museum exhibits, artifacts,
and photographs related to the history of Kennesaw. The City of Kennesaw will develop and
design a consistent, comprehensive and uniform system of directional and way-finding signage
with enhanced pedestrian, vehicular, parking and gateway features.
Contact
Historic Preservation Grants
National Park Service
1849 C Street, NW (2256)
Washington, DC 20240
Phone: (202) 354-2020
Web: www.preserveamerica.gov
REGIONAL ECONOMIC BUSINESS ASSISTANCE (REBA) PROGRAM
General Description
The Regional Economic Business Assistance (REBA) program is a specialized economic
development tool that may be used to enhance Georgia’s competitiveness in attracting
significant economic development projects and as a vehicle for significant local, regional or
state-wide initiatives that will have either short- or long-term economic development benefits.
REBA should not be used when other state or federal programs could be used or when local
funds are sufficient to accomplish economic development goals.
Eligibility Requirements
Generally, REBA funds are targeted for projects in non-rural counties. All applications must
include a recommendation from a state agency whose statutory powers include community
and economic development (e.g., the Georgia Department of Economic Development). REBA
projects should retain or create jobs in Georgia and result in new private investment in Georgia.
Eligible Applicants
Eligible applicants for REBA funding are general-purpose local governments, local-government
authorities, regional development centers, state agencies and state authorities.
Eligible Activities
Eligible activities include, but are not limited to:
• Public land acquisition and site development,
• Public infrastructure improvements,
• Publicly owned machinery and equipment, and
• Publicly owned / privately leased fixed assets and machinery and equipment.
Assistance Amounts
The maximum amount available for economic development projects varies based upon the
recommendation made by the Georgia Department of Economic Development.
Deadlines
Eligible applicants may submit an application at any time.
For information regarding a recommendation for REBA funding contact:
Heidi Green, Deputy Commissioner
Georgia Department of Economic Development
(404) 962-4070
DCA Contact:
Dawn Sturbaum, Incentives Manager
(404) 679-1585
DOWNTOWN DEVELOPMENT REVOLVING LOAN FUND (DD RLF)
General Description
The purpose of the Downtown Development Revolving Loan Fund (DD RLF) is to assist cities,
counties and development authorities in their efforts to revitalize and enhance downtown
areas by providing below-market rate financing to fund capital projects in core historic
downtown areas and adjacent historic neighborhoods where DD RLF will spur commercial
redevelopment.
Eligible Applicants
Eligible applicants under this program shall be municipalities with a population of 100,000 or
less, counties with a population of 100,000 or less proposing projects in a core historic
commercial area, and development authorities proposing projects in a core historic commercial
area in municipalities or counties with a population of 100,000 or less. The ultimate user of
funds may be a private business or a public entity such as a city or development authority.
If the applicant is not the municipality in which the proposed activities will take place, then the
application must include a resolution of support and commitment of cooperation from the
applicable local government.
Eligible applicants must have an existing downtown commercial area that meets two or more of
the following characteristics:
•
•
•
•
•
A significant number of commercial structures fifty (50) years old or older;
Empty storefronts or documentation of an immediate threat to a downtown’s
commercial viability;
A feasibility/market analysis identifying the businesses/activities which can be
supported in the downtown area and a plan for attracting or retaining such
businesses/activities;
A downtown master plan and/or strategic plan designed to guide public or private
investment;
Commitment(s) for private/public funding to support downtown development activities
(from banks, downtown development authorities, local businesses, other government
agencies, etc.) enhancing, directly or indirectly the activity(s) to be financed with the
Department’s loan.
Eligible Activities
Applicants must demonstrate that they have a viable downtown development project and
clearly identify the proposed uses of the loan proceeds. Once approved, funds may be used for
such activities as: real estate acquisition, development, redevelopment, and new construction;
rehabilitation of public and private infrastructure and facilities; purchase of equipment and
other assets (on a limited basis).
Assistance Amounts
The maximum loan is $250,000 per project. At its discretion, the Department may decide to
loan an amount less than the amount requested in an application.
Loan Terms
Interest rate is below-market rates. Repayment period is typically ten years with a fifteen-year
amortization. Security is usually project collateral and personal guarantees.
Application Deadlines
Applications will be accepted throughout the year and as loan funds are available to the
Department.
For further information contact:
Alan Dickerson
Community Development and Finance Division
(404) 486-0224
[email protected]
60 Executive Park South, N.E.
Atlanta, GA 30329-2231
www.dca.state.ga.us
Note: The Department works closely with the Georgia Municipal Association (GMA) through its
Georgia Cities Foundation Program (GCF) to assist Georgia’s downtown communities with
revitalization. For more information on the GCF, visit the GCF website at
www.georgiacitiesfoundation.org or contact Perry Hiott at (678) 686-6207 or by email at
[email protected].
STATE OF GEORGIA CDBG REDEVELOPMENT FUND
General Description
The Redevelopment Fund, a set-aside of the State’s non-entitlement CDBG program, provides
flexible financial assistance including grants and loans to local governments to assist them in
implementing challenging economic and community development projects that cannot be
undertaken with existing public sector grant and loan programs. The Redevelopment Fund will
reward locally initiated public / private partnerships by providing financing to leverage private
sector investments in commercial, downtown, and industrial redevelopment and revitalization
projects that need Redevelopment Fund investment to proceed. While all CDBG funded
projects that create jobs must meet applicable low- and moderate-income criteria, the
Redevelopment Fund will allow projects to be approved using an “eliminating slum and blight”
national objective. The Redevelopment Fund may support and extend DCA’s existing CDBG
programs in order to allow redevelopment projects with “challenging economics” to be made
competitive for DCA, private, and other public funding investments.
Eligible Applicants
Eligible applicants under the Redevelopment Fund program are units of general purpose local
governments classified as “non-entitlement” by the U.S. Department of Housing and Urban
Development. Excluded are entitlement cities, metropolitan cities, urban counties, and other
units of government eligible to participate in HUD’s urban county program. Ineligible applicants
under Georgia’s program are Albany, Atlanta, Augusta-Richmond County, Brunswick, Dalton,
Gainesville, Hinesville, Macon, Marietta, Rome, Savannah, Valdosta, and Warner Robins; the
Athens-Clarke County Unified Government, the Columbus Consolidated Government, Clayton
County, Cobb County, DeKalb County, Fulton County, Gwinnett County, and any incorporated
city within a HUD Entitlement Urban County which chooses to participate with the Urban
County through a cooperating agreement.
Eligible Activities
Eligible activities under the Redevelopment Fund are those identified in Title I of The Housing
and Community Development Act of 1974, as amended, and all eligible activities under the
Department’s EIP, CDBG, and CDBG Loan Guarantee (Section 108) program. Activities are
eligible to the extent that the funded activity meets the slum or blight national objective.
Proposed activities must be based on firm written commitments from local governments and
eligible sub-recipients.
NOTE: For the Redevelopment Fund, the term “sub-recipient” may generally be interpreted as a
business or corporation. However, in cases where the Redevelopment Funds are to be loaned
to or passed through a local development authority, the development authority itself would
also be a “sub-recipient” subject to the same rules and regulations as a benefiting business or
corporation.
Available Financing
The maximum amount of assistance that can be applied for is $500,000. In cases of projects
with exceptional public benefits or need, the Commissioner of DCA may raise the allowable
assistance amount. Projects involving direct loans are underwritten and collateralized using
standard commercial loan documents. Performance criteria for job-creation and investment are
included in the RDF loan agreement. Equity contributions and loan-to-value ratios are set caseby- case. Loans must be fully collateralized. The interest rate and term of an RDF loan are
determined on a case-by-case basis. The average rate is currently 3% and terms of RDF loans
ranged between 4 and 15 years depending on the assets to be financed.
Joanie Perry
60 Executive Park South, NE
Atlanta, Georgia 30329-2231
(404) 679-3173
[email protected]
www.dca.state.ga.us
CDBG LOAN GUARANTEE PROGRAM
Program Description
The CDBG Loan Guarantee Program (Section 108) is a flexible economic and community
development financing tool that can be used for certain large-scale economic development
projects that cannot proceed without loan guarantee assistance. Funds for this program are
raised through the sale of notes through federal underwriters following the Georgia
Department of Community Affairs’ (DCA) guarantee of the financing to the U.S. Department of
Housing and Urban Development (HUD).
Eligible Borrowers
General purpose, “non-entitlement” local governments. Local governments may (for DCAapproved projects) re-loan the proceeds to for-profit businesses and local development
authorities that may serve as eligible sub- recipient borrowers.
Eligible Activities
• Acquisition of real property
• Clearance and removal of slums and blight
• Rehabilitation of real property owned by a public entity
• Site preparation, including construction, reconstruction, or installation of public utilities
or facilities related to the redevelopment or reuse of the real property
• Other economic development activities eligible under the CDBG and EIP program
Loan Amount
Maximum loan amount is $5,000,000
Terms and Conditions
Financing options will vary, but generally loan terms that are less than 10 years are most
competitive. Local governments with sound finances that provide certain “credit
enhancements” may be able to arrange loan terms up to 20 years. In order to be approved by
DCA, all projects will be subject to rigorous underwriting that documents a project’s “economic
viability”. Local governments will generally be required to obligate themselves and document to
DCA’s satisfaction that all debt will be repaid.
Rate
Interest rates are determined by the public market for government debt. Following DCA’s (and
ultimately HUD’s) guarantee of the local debt, the note is “pooled” with other similar notes and
sold to private investors by federal underwriters chosen by HUD. Because the notes are
ultimately backed by the full faith and credit of the United States, the permanent interest rate
on 108 loans will only be a few basis points higher than Treasury bond rates for similar terms.
Interim rates will be a few basis points higher than the LIBOR rate.
Repayment
Repayment is made by the participating local government. Local governments may generate
revenue from leases or loans to sub-recipient entities to assist them in repaying loans.
Underwriting Process
The Department will only “guarantee” financing for projects and local governments that it
determines can generate sufficient revenue to service all debt obligations.
Job Creation
Each funded activity must generally meet a minimum low-and moderate-income benefit
threshold of 70%.
Brian Williamson, Assistant Commissioner
(404) 679-1587
[email protected]
www.dca.state.ga.us
OPPORTUNITY ZONES
Opportunity zones (OZ) offer significant local, state, and federal incentives for the
redevelopment of underdeveloped and blighted areas. OZs exist to better utilize several
existing state statutes to further economic development, entrepreneurship and increases in
private-sector-led investments through locally driven partnerships. By undertaking local
redevelopment initiatives in these underdeveloped and blighted areas, local governments can
obtain an OZ designation that offers significant Job Tax Credits for expanding businesses.
Because the local initiatives rely on the innovative use of existing statutes, projects (and
progress) can be realized quickly without bureaucratic delays. By fostering partnerships and
adhering to a core principal of supporting “bottom-up, locally driven” projects, OZs will allow
innovative, multi-faceted policies, programs and projects to emerge quickly. The local initiatives
which, if enacted in areas of 15% or greater poverty, allow an Opportunity Zone designation
include:
The Georgia Urban Redevelopment Law
(O.C.G.A. § 36-61-2)
The Urban Redevelopment Act gives cities and counties in Georgia specific powers to
rehabilitate, conserve or redevelop of any defined geographical area that is designated as an
area of blight. As a prerequisite to exercising these powers, the city council or county
commission must adopt a resolution finding that the area constitutes a blight area as defined
by the Act and that redevelopment of the area is “necessary in the interest of the public health,
safety, morals, or welfare” of the residents of the jurisdiction. In addition to designating by
resolution an “urban redevelopment area” appropriate for redevelopment projects, the Act
requires adoption by the local government of an urban redevelopment plan for the target area.
The Georgia Enterprise Zone Employment Act
(O.C.G.A. § 36-88-1 et seq.)
The State Enterprise Zone Statute allows underdeveloped or blighted areas that meet three of
five criteria (poverty, unemployment, general distress, underdevelopment and blight) for
designation. In Enterprise Zones established through local ordinance, an eligible business that
makes a qualified capital investment and employs five (5) or more employees can qualify for
local property tax abatements and relief from local business fees and regulations.
The State Job Tax Credit Benefit
(O.C.G.A. § 48-7-40.1(c)(4)).
Upon designation as an OZ, businesses that expand or locate within census block groups having
15% or greater poverty included in either a locally designated Enterprise Zone (§36-88-1 et
seq.) and/ or where a local Redevelopment Plan has been adopted pursuant to Georgia’s Urban
Redevelopment Law (§ 36-61-2) may take advantage of the state job tax credit. The credit may
be claimed at $3,500 per eligible new job, with the credit being first applied against 100 percent
of the business’s Georgia income tax liability and any excess credit available to claim against
withholding taxes as long as the proper steps are taken with the Department of Revenue.
In 2008 a Legislative amendment was passed which provides for businesses locating in an OZ to
create only two (2) new jobs to be eligible for the program. The fact that these OZ areas reflect
pervasive poverty allows for any lawful business to claim the job tax credit as opposed to only
defined “Business Enterprises”.
Brian Williamson, Assistant Commissioner
(404) 679-1587
[email protected]
www.dca.state.ga.us
EQUITY FUND (ONEGEORGIA)
Equity Grants and Loans
The Equity Fund provides financial assistance to eligible rural communities to help build
capacity and the necessary infrastructure for economic development. This fund is OneGeorgia’s
most flexible financing tool. Equity is a community and economic development tool providing
financial assistance including grants and loans that promote the health, welfare, safety and
economic security of the citizens of the state through the development and retention of
employment opportunities and the enhancement of various infrastructures that accomplish
that goal.
Eligibility
Eligible recipients of grant and loan funds include general purpose local governments
(municipalities and counties), local government authorities and joint or multi-county
development authorities in rural counties suffering from high poverty rates. Sub-recipients may
be a for-profit or non-profit entity. Financial underwriting of a sub-recipient company is
required.
Available Financing
Grants/Loans may be made up to $500,000 per project: (a) the award amount is dependent on
regional impact; (b) support from neighboring counties; and (c) local investment and
commitment. Up to $1,000,000 per project is available if a project: (a) evidences support by a
multi-county development authority with at least one directly eligible county; and (b) a
revenue/cost sharing agreement between two or more counties is executed; and (c) where the
project will result in substantial multi-county impact. Grant funds for public activities require
local investment and must demonstrate potential return on investment impact. Loan funds for
business growth are made at 3% interest at 5-7 years for machinery and equipment and 20
years for real estate. Loan funds for speculative buildings are made at zero percent interest
with a five-year deferment; however, a marketing plan and local investment are required.
For information on OneGeorgia programs contact:
Nancy Cobb, Executive Director
Cindy Alligood, Project Development Specialist
Phone: (478) 274-7734
Fax: (478) 274-7727
[email protected]
OneGeorgia Authority
1202-B Hillcrest Parkway
Dublin, GA 31021
http://www/onegeorgia/equity.html
ENTREPRENEURIAL AND SMALL BUSINESS LOAN GUARANTEE FUND (ESB)
Purpose
The ESB Loan Guarantee Program provides financial assistance through loan guarantees to
accredited Georgia financial lenders in order to back loans to provide gap financing to spur
small business growth and development in economically stressed counties of the State. Loan
guarantees are available to assist small businesses that would be unable to obtain suitable or
adequate financing on their own.
Eligibility
Any organization meeting the below-referenced “lender” definition is eligible to participate in
the ESB Loan Guarantee Program. “Lender” means a state or federally chartered bank or
lending institution in good standing with the Federal Deposit Insurance Corporation, the
National Credit Union Share Insurance Fund as well as the Georgia Department of Banking and
Finance. The lender must have an established and demonstrated successful lending track
record as documented by financial records and/or statements. The lending institution must
have a physical location in Georgia. The sub-recipient business must be located in one of the
designated rural counties in Georgia.
Available Financing
OneGeorgia Authority will guarantee up to 50% of private bank loans from $35,000 up to
$250,000. The ESB loan fund guarantee also requires a 10% equity injection by the borrower.
The sub-recipient company must meet certain underwriting requirements and make
commitments including job creation/retention.
For information on OneGeorgia programs contact:
Nancy Cobb, Executive Director
Lynn Ashcraft, Finance Officer
Phone: (478) 274-7734
Fax: (478) 274-7727
[email protected]
[email protected]
OneGeorgia Authority
1202-B Hillcrest Parkway
Dublin, GA 31021
http://www/onegeorgia/esb-web/
APPENDIX F: SUPPLEMENTARY RESEARCH
INCLUSIONARY ZONING
Inclusionary zoning (IZ) requires developers to make a percentage of housing units in new
residential developments available to low- and moderate-income households. In return,
developers receive non-monetary compensation-in the form of density bonuses, zoning
variances, and/or expedited permits-that reduce construction costs. By linking the production
of affordable housing to private market development, IZ expands the supply of affordable
housing while dispersing affordable units throughout a city or county to broaden opportunity
and foster mixed-income communities.
Inclusionary zoning, sometimes called "inclusionary housing," can take many forms.
Some IZ programs are mandatory, while others are voluntary or incentive-driven. Some
jurisdictions require developers to construct affordable units within the development, while
others allow affordable units to be constructed in another location. Some require developers
to build the units, while other communities allow developers to contribute to an affordable
housing fund.
Inclusionary zoning is a flexible strategy with a proven track record of meeting a community's
affordable housing needs. IZ has become a common tool in California, Massachusetts, North
Carolina, New Jersey, Colorado, as well as other cities like Santa Fe, New Mexico and
Tallahassee, Florida.
Once common only in suburban jurisdictions, IZ programs are increasingly adopted by urban
communities. Generally, IZ policies have been most effective in areas that are experiencing
growth, since affordable units are only generated if private residential development is occurring
in the community.
Benefits of enacting an inclusionary zoning policy include creating mixed-income, diverse,
integrated communities. Mixed income communities broaden access to well-funded schools,
strong municipal services and emerging job centers. IZ also creates partnerships with the
private sector to build a range of housing suitable for diverse communities.
More information on inclusionary zoning policies currently in effect in cities across the country
can be found at the following address: http://www.policylink.org/EDTK/IZ/resources.html1.
1
PolicyLink.org, Inclusionary Zoning
DISTRICT PARKING
District parking is an option for some communities that provides on-street parking in metered
spaces or off-street parking in combined lots for visitors to certain areas. District parking
programs vary in structure and enforcement, but the City of Acworth could create a plan to
make the best use of existing lots and benefit downtown businesses. Below are examples of
some district parking programs.
San Diego, CA
The Community Parking District Program was established in 1997 as an investment in older
neighborhood commercial districts and is part of the City of San Diego's comprehensive
community and economic development strategy. The program provides small businesses with
a tool to compete with regional shopping malls while maintaining their unique, neighborhood
flavor. It also provides parking impacted communities with a mechanism to devise and
implement parking management solutions to meet their specific needs.
The Community Parking District Program manages the distribution of a portion (45%) of the
revenue from parking meters and other parking related revenues to designated parking
districts. These funds are used by the districts to implement solutions to parking problems.
Such solutions may include: parking lots, parking structures, valet parking,
parking/transportation signage, landscaping, maintenance, and security.
Austin, TX
The City of Austin's first Parking Benefit District was established along San Antonio St, between
MLK and West 26th Street, in January 2006. This street is located in an area generally known as
"West Campus." In 2006, City Council approved a zoning overlay in the area called the
University Neighborhood Overlay (UNO) that aims to increase residential density. The revenue
from the parking meters in the Parking Benefit District will go towards constructing streetscape
improvements, such as improved sidewalks, curb ramps and street trees, to improve the
pedestrian environment as the residential density of West Campus increases.
The Austin Parking Benefit District Pilot program was implemented in three phases:
•
Phase One: Presentations to Neighborhoods and Application Period (Oct. - Nov. 2005)
City staff held informational meetings in neighborhoods with known spillover parking
problems, and in other neighborhoods as requested. Announcements about the
program and request for applications were made via newspaper, the City of Austin
website, radio announcements on KUT 90.5 and a letter sent to registered
neighborhood associations. To ensure that a Parking Benefit District is started in a
neighborhood supportive of the program, interested neighborhoods had to apply for
the program.
•
Phase Two: Neighborhood Selection and Consultation (Nov. - Jan. 2005) City of Austin
staff received one application from property owners along San Antonio St, between MLK
and West 26th Street. Notices announcing selection of the neighborhood were mailed
to property owners and tenants within and around the proposed Parking Benefit
District. City of Austin staff met in December and January with the selected
neighborhood and nearby businesses to plan location of meters/pay stations, determine
maximum time(s) on meters appropriate for area and identify the available alternative
transportation options and the various, appropriate avenues to promote them.
•
Phase Three: Installation of Meters/Pay Stations and Start of Outreach (Jan. 2005- Aug.
2006) Implementation consisted of installing the parking meters in areas agreed upon
between the neighborhood and city staff and beginning the promotion of alternative
transportation options to those driving and parking in the neighborhood. The public
outreach component was intended to create an awareness of transportation
alternatives for those that drive into and park in the neighborhood. Decals with the
message to try alternative transportation were added to the parking meters. Revenue
(less maintenance and expenses) from the meters is accrued in a Capital Improvement
Project (CIP) fund dedicated to pedestrian, bike, and transportation improvements in
the neighborhood. On an as-needed basis, the neighborhood will have an opportunity
to inform staff and the City Council if they want to use the revenue for improvements or
wait until more revenue is collected.
Stockton, CA
The City of Stockton's Central Parking District (CPD) administers the City's surface lots and
parking structures in the Downtown area, including the Stewart Eberhardt Parking Structure
located at El Dorado Street and Weber Avenue. The CPD is operated by an Advisory Board
appointed by the City Council. Capital improvements, maintenance and operating expenses of
the CPD are funded by an ad valorem assessment on all property located within the District,
charges for monthly and hourly parking privileges and other income from contract agreements
with other entities.
NEIGHBORHOOD-LEVEL RETAIL
Concerned with the size and scale of larger commercial developments and the traffic they
create, many communities across the country are examining mixed-use zoning categories and
how they may be applied to their commercial or downtown areas. Retail that incorporates
upper floor residential space adds value, a sense of community, and after-hours security.
The American Planning Association Model Mixed Use Ordinance is a great resource for
communities seeking to develop a mixed use ordinance that takes into account the character of
an area or areas. This document may be tailored to fit the needs of each community.