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Home My WebLink AboutORD 6292 ARC CODE ENTERPRIZE ZONE EMPLOYMENT Augusta Richmond GA DOCUMENT NAME: 0 r din 611(2[-/ 118/1B, DOCUMENT TYPE: OreLl nCLnte YEAR: ~OOO BOX NUMBER: I 0 FILE NUMBER: I Lj ~q D NUMBER OF PAGES: 2 r T' c:r (" . l,\ ,.-.;.~"-;- ~~f~i .} ~....: " '\'.... ';;'. .' .' ORDINANCE NO. fi?q? AN ORDINANCE AMENDING THE AUGUST A-RICHMOND COUNTY CODE SO AS TO ADD CHAPTER 4, TITLE 2 SO AS TO PROVIDE FOR ENTERPRISE ZONES PURSUANT TO THE GEORGIA ENTERPRISE ZONE EMPLOYMENT ACT OF 1997, AS AMENDED (O.C.G.A. ~ 36-88-1, et seq.); TO PROVIDE TAX INCENTIVES AND OTHER INCENTIVES; TO ESTABLISH QUALIFICATIONS FOR THE ESTABLISHMENT OF ENTERPRISE . ZONES; TO OUTLINE POLICIES AND PROCEDURES FOR THE ADMINISTRATION OF THE ENTERPRISE ZONE; TO ESTABLISH THE "LANEY-WALKER ENTERPRISE ZONE"; TO PROVIDE AN EFFECTIVE DATE AND FOR OTHER PURPOSES. BE IT ORDAINED BY THE AUGUSTA-RICHMOND COUNTY COMMISSION, and it is hereby ordained by authority of same as follows: SECTION 1. The Augusta-Richmond County Code, Title 2, is hereby amended by adding a new Chapter to be designated as Chapter 4, entitled "Enterprise Zones" which shall read as follows: CHAPTER 4 ARTICLE 1 ENTERPRISE ZONES S 2-4-1. PURPOSE. The Augusta-Richmond County Commission desires to create the proper economic and social environment to induce the investment of private resources in productive business enterprises located in an area meeting criteria established by the Enterprise Zone Employrpent Act of 1997, as amended (O.C.G.A. S 36-88-1), and to provide employment to residents of such area. S 2-4-2. PROCEDURES. Whenever the necessary conditions exist in a designated area to qualify the area as an Enterprise Zone as provided in O.c.G.A. S 36-88-6, the Commission by Ordinance may establish such area as an Enterprise Zone, which designation shall continue for a period of ten (10) years unless redesignated as an Enterprise Zone for an additional period. . - "'_ .i ,. \ , " .. . f~' S 2-4-3. QUALIFICATIONS. An area to be redesignated as an Enterprise Zone shall meet the criteria as provided for in O.C.G.A. S 36-88-6. 9 2-4-4. INCENTIVES. Augusta shall provide the following incentives in an area designated as an Enterprise Zone, including tax incentives, to qualifying businesses in accordance with the definition of such businesses outlined in the Enterprise Zone Employment Act, which incentives are not applicable throughout the city: (a) The Augusta-Richmond County Commission shall exempt qualifying businesses from state, county, and municipal ad valorem property taxes, excluding property taxes imposed by school districts, that would otherwise be levied on the qualifying business and service enterprises in accordance with the following schedule: (l) One hundred percent of the property taxes shall be exempt for the 'first five years; (2) Eighty percent of the property taxes shall be exempt for the next two years; (3) Sixty percent of the property taxes shall be exempt for the next year; (4) . year; and (5) .Forty percent of the property taxes shall be exempt for the next Twenty percent of the property taxes shall be exempt for the last year. (b) Other incentives that may be granted will be negotiated on a case-by-case basis by the Augusta-Richmond County Commission through the Housing and Neighborhood Development Department and could include exemption from any or all of the following: (1) Building Permit Fees (2) Sign Permit Fees (3) Business License Administrative Fee (4) Rezoning Fees (5) Engineering Fees (6) Other local fees authorized by the Augusta-Richmond County Commission, as applicable. S 2-4-5, AUTHORIZED AGENCY. The Augusta-Richmond County Commission is the authorized a"gency to act in all matters pet1aining to the Enterprise Zone and reserves the power to grant the incentives listed above to qualifying businesses in accordance with the 2 .. I' " . ~ . ,-, , '. I i \ , 1 authorization powers granted local governments in the administration of the Enterprise Zone in the Enterprise Zone Employment Act of 1997 (O.C.G.A. S 36- 88-1, et seq.).. S 2-4-6. LIASON. The Augusta-Richmond County Commission directs and designates its Director of Housing and Neighborhood Devel~pment as liaison for communication with the Georgia Department of Community Affairs; the Georgia Department of Industry, Trade, and Tourism; the business community; and all others to oversee Enterprise Zone activities and administration, and communications with qualified businesses, and to recommend to the Commission the establishment of Enterprise Zones, S 2-4-7. ENFORCEMENT. The Augusta-Richmond County Commission has the power to administer, require, and enforce compliance with the provisions of this chapter and to adopt such administrative rules or regulations as are necessary to implement same, including, but not limited to, the requiring of reports and data information from businesses within the Enterprise Zone to verify compliance with this Chapter and state law, S 2-4-8. CONTRACTUAL AGREEMENT. A qualifying business shall enter into a contractual agreement that outlines the incentives offered to the business and the guidelines for the recapture, revocation, or reimbursement should the terms of the contract be violated by the target business. S 2-4-9-2-4-19, RESERVED. ARTICLE 2 S 2-4-20. ZONE". DESIGNATION OF "LANEY-WALKER ENTERPRISE The Augusta-Richmond County Commission hereby designates the area hereinafter described as an Enterprise Zone to be knowri as the "Laney-Walker Enterprise Zone", to wit: BOUNDARY DESCRIPTION Beginning at a point, which is the intersection of the centerlinesof 1 ih Street and Walton Way; thence, in a southeasterly direction along the centerline of Walton Way for a distance of 3075 feet, more or less, to a point of intersection with the centerline of ih Street; thence, in a southwesterly direction along the centerline of 3 ; 7 --: \... / ;' . . , , 7th Street a distance of 2070 feet, more or less, to a point of intersection with the centerline of Laney- Walker Boulevard; thence, in a northwesterly directi~n along. the centerline of Laney- Walker Boulevard a distance of 1210 feet, more or less, to point of it:1tersection with the centerline of James Brown Boulevard (9th,Street); thence, in a southwesterly direction along the centerline of James'.~rown Boulevard a distance of 1560 feet, more or less, to point of intersection wIth the centerline of Wrightsboro Road; thence, in a northwesterly direction along. the centerline of Wrightsboro Road a distance of 3850 feet, more or less, to'il poirtt of intersection with the centerline of Augusta Avenue; thence, in a northeasterly direction along the centerline of Augusta A venue a distance of 1685 feet, more or less, to a point of intersection with the centerline of Laney- \Valker Boulevard; thence, in a northwesterly direction along the centerline of Laney-Walker Boulevard a distance of 120 feet, more or less, to a point of intersection with the centerline of R. A. Dent Boulevard; thence, in a northeasterly direction aloi}g tfi~.~ centerline of R.A. Dent Boulevard a distance of 1910 feet, more or less, tq a'.''poihf of intersection with the centerline of D'Antignac Street; thence, in a sotit1ieasterlyi~.,., direction along the centerline of D'Antignac Street a distance of 950 feet, more or ': less, to a point of intersection with the centerline of 1 ih Street'; thence, in a ' northeasterly direction along the centerline of 1 ih Street a ~istance of 69Q.. feet, more or less, to a point of beginning, ~' ~, ( c,__",_ .-." -.- SEC~TIGN2':-'-This ordinance shall become effective immediately yponadoption. ." ; SECTION 3. All Ordinances or parts of ordinances in, ~onflict herewith are hereby repealed. ,- :~-~ t -;0. ... ';. ",..., / f Duly adopted this 20th day of ATTEST: 15t Reading July 5. 2000 2nd Reading July 20 00 Published in the Augusts Chronicle August 8, 2000 ': 4 .. . 4-: ,. . ~.... l 'j '< ,r . , , ~- . > . ENTERPRISE ZONE DESIGNATION CRITERIA EV ALUA TION OF PROPOSED LANEY WALKER ENTERPRISE ZONE Designation Criteria* Pervasive Poverty - State law requires that 20% of the residents be below the poverty line in each of the census block groups and that 30% of the residents be below the poverty line in at least half of the census block groups. The Laney Walker Enterprise Zone meets this standard. Unemployment - State law requires that the unemployment rate for each census tract be at least 10% higher than the state average (1998 state average was 4.2%), The Laney Walker EnterprIse Zone meets this standard. General Distress - State law requires that there be evidence of general distress in the nominated area. Examples of general distress include, but are not limited to, a high incidence of crime, abandoned or dilapidated structures, and substantial population decline. Evidence of general distress in the Laney Walker Enterprise Zone includes lack of maintenance on buildings and property, existence of abandoned or dilapidated structures, underutilization of land, and population decline. The Laney Walker Enterprise Zone meets this standard. Underdevelopment .-:-State law requires that the level of development in the nominated area be at least 20% lower than development activity citywide. This can be indicated by data on land disturbance. permits, business' license fees, development fees, or other similar data. Information on underdevelopment in the Laney Walker Enterprise Zone is still being collected. *Note: Nominated area must meet three of the four criteria. ,> ',..; , " j ':; .- . " ENTERPRISE ZONE ADMINISTRATIVE POLICIES Incentives and Housing and Neighborhood Development Department Responsibility The incentives outlined in the ordinance above will be administered by the Augusta Housing and Neighborhood Development Department. The department will have the responsibility to process applications, convene a preliminary review committee as applications are received, confer with the Commission, and prepare final documents for Commission approval. The department will keep the Georgia Department of Community Affairs informed of enterprise zone designation and will maintain annual employment records to be filed with the department by qualifying companies by [insert date] of each year. Additionally, the department will coordinate all marketing and communications regarding the enterprise zone. Description of the Incentives and Qualifying Businesses The Augusta-Richmond County Commission, in agreeing to create the enterprise zone shown in Exhibit A, agrees to abate ad valorem property tax for qualifying businesses for ten years as outlined in the preceding ordinance and in accordance with the definitions of qualifying business as set forth in the State of Georgia Enterprise Zone Employment Act of 1997, as amended, as follows: 'Business enterprise'means any business which is engaged primarily in manufacturing, warehousing and. distribution, processing, telecommunications, tourism, research and development industries, new residential construction, and residential rehabilitation. 'Service enterprise' means an entity which is engaged primarily in finance, insurance, and real estate activity or activities listed under the Standard Industrial Classification (SIC) Codes 60 through 67 according to the 1987 edition of the Federal Office of Management and Budget Standard Industrial Classification Manual. A qualifying business or service enterprise is an enterprise which increases employment by five or more new full-time job equivalents in an area designated as an enterprise zone and which provides additional economic stimulus in such zone. The quality and quantity of such additional economic stimulus shall be determined by Augusta-Richmond County on a case-by- case basis. Whenever possible, 10 percent of new employees shall be low-income or moderate- income individuals. Such qualifying business or service enterprise may be new, an expansion or reinvestment of an existing qualifying business or service enterprise, or a successor to such qualifying business or service enterprise. Any qualifying business or service enterprise is an enterprise which employs at least 5,000 persons and which creates ten or more new full-time job equivalents that did not exist prior to [insert date], and which provides additional economic stimulus in such zone. Any business receiving a tax abatements according to the schedule outlined above must maintain a minimum of five new full-time job equivalents to maintain eligibility for the tax exemption. A form for reporting annual employment must be filed with the Housing and Neighborhood Development Department for its review and records. Any project that consists of new residential construction, residential rehabilitation, or other rehabilitation that results in the value of the improvement exceeding the value of the land " / . . ''', f I by a ratio of five to one is eligible for the incentives offered whether or not the project is carried out by a qualifying business or service enterprise. Additional Considerations The Enterprise Zone Employment Act of 1997, as amended, Section 36-88-4(b) empowers the local governing body to make a case-by-case determination of the eligibility of each business for enterprise zone tax abatements and other incentives. Among the considerations may be the following: The value of the business to the economic health and well-being of Augusta-Richmond County and its citizens. Capital investment or reinvestment by the business equal to or greater than the amount of ad valorem tax abated over the first five years of the tax incentive. Consideration for meeting some or all of the following criteria: Locating in a vacant building Demolishing a pre-existing or abandoned structure Assembling four or more tracts of land for one project Creating jobs above the state threshold Creating jobs for residents of the Enterprise Zone and surrounding area Incorporating aesthetic enhancements (i,e,: landscaping, type of facade materials used, exclusion of billboards) 2 . [~Richmond CotJi.1ty, GA library Data . I~~I=~ ,i . _a_ ~ ......-,.-.._ ....'-........tuoo- ---- =--:=:::--=~:=:..~-:"=~ ........CIt....=z-~~~=......... tr.............____.... ._....._............ _J..ac--o..,~ N W+E 500 I o 1000 Feet So ext Parcel D Parcel DTb 500 s PROPOSED LANEY WALKER ENTERPRIZE ZON