Spurring Job Creation Through Private-Public Partnerships By Bridging the “Financing Gap” with Economic Development Programs

New Ways to Grow Jobs – Georgia’s innovative approach Opportunity Zones offer incentives and tax credits to attract jobs……………. Revitalization Area Strategies rewards partnerships to implement comprehensive strategies

Page 3 Revitalization Area Strategies (RAS) and Opportunity Zones (OZs) Purpose Both programs encourage local governments to build strategies for redeveloping “blighted” areas

Page 4 Encourages local governments to build strategies for redeveloping “blighted” areas RAS CD focus – CDBG Local gov’ts can get bonus points & apply annually Apps submitted with State CDBG Annual competition Usually older residential areas 20% CT poverty threshold OZs ED focus – State program but is CDBG friendly Enhanced Job Tax Credit for businesses State-wide eligibility Apps accepted any time Usually older commercial and/or industrial areas 15% CBG or ‘adjacent to’

Page 5 What is the OZ program? Provides an enhanced Job Tax Credit to eligible businesses The OZ designation criteria require the targeting of areas that display “Pervasive Poverty, Underdevelopment, General Distress, and Blight”. The designation criteria are met by the targeting of poverty areas that are in decline, suffering from disinvestment and are in need of redevelopment and revitalization. Enhanced job tax credit through the Georgia Business Expansion & Support Act – O.C.G.A

Page 6 Rural areas with sluggish economies and blighted industrial, commercial and residential areas Brownfields Historic Downtowns Declining commercial corridors Deteriorating in-town neighborhoods Pockets of urban poverty in otherwise affluent counties Traditional industrial development Promising Uses of OZs

Page 7 Opportunity Zones Applicable Statutes ▪Georgia Urban Redevelopment Law – O.C.G.A and/or ▪Enterprise Zone Employment Act – O.C.G.A ▪Georgia Business Expansion & Support Act – O.C.G.A

Page 8 Local Redevelopment Tools – Urban Redevelopment Law (O.C.G.A ) Provides cities and counties the power to rehabilitate, conserve or redevelop a blighted area Local government must adopt a resolution finding the area is blighted and that redevelopment is necessary Local government must adopt an urban redevelopment plan for the target area

Page 9 Local Redevelopment Tools - Enterprise Zone Employment Act (O.C.G.A ) State Enterprise Zone Criteria ▪Poverty ▪Unemployment ▪General distress ▪Underdevelopment ▪Blight Local property tax breaks for Commercial and Residential Property Other Local Incentives

Page 10 Opportunity Zones O.C.G.A (c)(4) General Strategy is fairly simple ▪Use existing redevelopment statutes in an innovative fashion ▪Reward local governments that undertake redevelopment and revitalization with access to maximum State Job Tax Credits ▪Operate state-wide, wherever “pockets of poverty” exist in rural, urban or suburban communities ▪Support bottom up, locally driven community and economic development initiatives through local collaborative partnerships

Page 11 Opportunity Zone Tax Credit Incentives: the maximum Job Tax Credit allowed under law - $3,500 per job created the lowest job creation threshold of any job tax credit program - 2 jobs use of Job Tax Credits against 100 percent of income tax liability and Withholding expansion of the definition of "business enterprise" to include all businesses of any nature

Page 12 Zebulon Redevelopment Project - Before

Page 13 Zebulon Redevelopment Project - After

Page 14 Zebulon - Redevelopment Grant SourceAmountUseAmount RDF $344,496 Construction $279,496 Architectural $14,500 Contingencies $30,000 Administration $20,500 City $3,400Daily Inspection $2,400 Audit $1,000 DDA$199,000Acquisition$134,000 Stabilization $65,000 Proposed Bus. $541,580Known Investments$541,580 Total$1,088,476 $1,088,476

Page 15 Zebulon-GCF Loan to Bookstore SourceAmountUse Amount GCF $114,280 Acquisition$114,280 Bank $142,850Acquisition $37,406 Build-out $93,000 FF&E $12,444 Owner Eq. $28,570Inventory $27,120 Working Capital $1,450 Total$285,700$285,700

Page 16 Elberton-W.O. Jones Building

Page 17 Elberton-W.O. Jones SourceAmountUseAmount DD RLF $192,492 Rehab.$192,492 RDF $500,000Rehab. $480,000 Grant Admin. $20,000 DDA$151,946Equity (bldg.)$151,946 Total$844,438$844,438