Board of County Commissioners October 14, 2014

Enterprise Zone Program Background Incentives Success and Limitations Recommendations from the Enterprise Zone Development Agency (EZDA)

Enterprise Zone Program Background Incentives Success and Limitations Recommendations from the Enterprise Zone Development Agency (EZDA)

Enterprise Zone Program Established statewide in 1982 Offers tax refunds/credits to businesses that invest in the Enterprise Zones (EZ) Two Enterprise Zones in Orange County –Orange County Enterprise Zone –South Apopka Enterprise Zone Census Block Groups in the EZ must have at least 20% poverty rate and half of the Block Groups must have poverty rates of at least 30% Scheduled to sunset at the end of 2015

Enterprise Zone Program Orange County Enterprise Zone Created in 1995 Boundaries were amended in 2006

Enterprise Zone Program South Apopka Enterprise Zone Created in 1999 Replaced Lake Apopka EZ in 2005 Boundaries were amended in 2006

Enterprise Zone Program Enterprise Zone Development Agency (EZDA) 9 member board, appointed by the Board of County Commissioners EZDA meetings held quarterly

Enterprise Zone Program Background Incentives Success and Limitations Recommendations from the Enterprise Zone Development Agency (EZDA)

Sales Tax Benefits Sales tax credit for job creation Sales tax refund on business equipment Sales tax refund on building materials Corporate Tax Benefits Job credits Property tax credits Community contribution Child care facility Ad Valorem tax exemption

Enterprise Zone Program Background Incentives Success and Limitations Recommendations from the Enterprise Zone Development Agency (EZDA)

Enterprise Zone Program Success of the Program Since 2002, $3.3 M Provides incentives for urban development –SoDo, Amway Center, Aloft Hotel –Future: Dr. Phillips Performing Arts Center, Orlando Magic Complex, and soccer stadium Catalyst for new home construction

Enterprise Zone Program Estimated Value of Enterprise Zone Incentives Processed, 2005 – 2014

Enterprise Zone Program Limitations of the Program Small businesses are not utilizing the program No “simple” online way to confirm addresses in the Enterprise Zones Small businesses cannot meet $5,000 threshold for business equipment and business materials incentives Finding members for the EZDA, due to statutory restrictions

Enterprise Zone Program Background Incentives Success and Limitations Recommendations from the Enterprise Zone Development Agency (EZDA)

Enterprise Zone Program EZDA Recommendations Continue to support EZ Program Create online applications Advocate for separate thresholds for small and large businesses

Enterprise Zone Program EZDA Recommendations Provide support for employer paid job training and certifications Research tax rebates on power bills for EZ businesses Reduce impact fees in EZ

Enterprise Zone Program EZDA Recommendations Increase program marketing Coordinate with municipalities on economic redevelopment strategies