Staff recommends adoption of the resolution supporting the nomination of three areas located within the cities of Eustis, Leesburg, and Mascotte for inclusion in Lake County’s designated Florida Enterprise Zone.
Early in 2011, at the urging of various entities within Lake County (including the City of Leesburg) the Lake County Economic Development staff began working with the County’s local Legislative Delegation in Tallahassee to create a state Enterprise Zone serving Lake County.
Following an examination of the state statutes governing the creation of enterprise zones, and research involving population and demographic information, three possible sites were identified as meeting the criteria for an enterprise zone – one in Eustis, one in Leesburg, and one in Mascotte.
Section 290.0055 (Local nominating procedure) of the Florida Statutes outlines the following procedures which are to be used for adopting an Enterprise Zone:
(1) If, pursuant to s. 290.0065, an opportunity exists for designation of a new enterprise zone, any county or municipality, or a county and one or more municipalities together, may apply to the department for the designation of an area as an enterprise zone after completion of the following:
(a) The adoption by the governing body or bodies of a resolution which:
1. Finds that an area exists in such county or municipality, or in both the county and one or more municipalities, which chronically exhibits extreme and unacceptable levels of poverty, unemployment, physical deterioration, and economic disinvestment;
2. Determines that the rehabilitation, conservation, or redevelopment, or a combination thereof, of such area is necessary in the interest of the public health, safety, and welfare of the residents of such county or municipality, or such county and one or more municipalities; and
3. Determines that the revitalization of such area can occur only if the private sector can be induced to invest its own resources in productive enterprises that build or rebuild the economic viability of the area.
The Florida Enterprise Zone Program offers various tax incentives to businesses located within the designated enterprise zones. In addition, local governments may also offer their own incentives. Following is a list of incentives that are made available to businesses located in an Enterprise Zone under the Florida Enterprise Zone Program:
Ø Jobs Tax Credit (Sales Tax) - Allows a business located within an Urban Enterprise Zone to take a sales and use tax credit for 20 or 30 percent of wages paid to new employees who reside within an enterprise zone. To be eligible, a business must create at least one new job. The Sales Tax Credit cannot be used in conjunction with the Corporate Tax Jobs Credit).
Ø Jobs Tax Credit (Corporate Income Tax) - Allows a business located within an Urban Enterprise Zone to take a corporate income tax credit for 20 or 30 percent of wages paid to new employees who reside within an enterprise zone. The Corporate Tax Credit cannot be used in conjunction with the Sales Tax Credit.
Ø Business Equipment Sales Tax Refund - A refund is available for sales taxes paid on the purchase of certain business property, which is used exclusively in an Enterprise Zone for at least 3 years.
Ø Building Materials Sales Tax Refund - A refund is available for sales taxes paid on the purchase of building materials used to rehabilitate real property located in an Enterprise Zone.
Ø Property Tax Credit (Corporate Income Tax) - New or expanded businesses located within an enterprise zone are allowed a credit against Florida corporate income tax equal to 96% of ad valorem taxes paid on the new or improved property.
Ø Sales Tax Exemption for Electrical Energy - A 50% sales tax exemption is available to qualified businesses located within an Enterprise Zone on the purchase of electrical energy, if the municipality has reduced the municipal utility tax by at least 50%.
Ø Community Contribution Tax Credit Program - Allows businesses a 50% credit on Florida corporate income tax, insurance premium tax, or sales tax refund for donations made to local community development projects. Businesses are not required to be located in an enterprise zone to be eligible for this credit.
Ø Property Tax Exemption for Childcare Facilities - Provides an exemption from ad valorem property tax for licensed childcare facilities operating in areas designated as enterprise zones.
While adoption of an Enterprise Zone is not in-and-of-itself a guarantee that businesses will locate or expand within the Zone, it does provide a community with an additional “tool” to place within its economic development tool box.
1. Adopt the prepared Resolution, either as submitted or with such changes as the City Commission may deem advisable.
2. Such alternative action as the Commission may deem appropriate
Fiscal Impact: No specific fiscal impacts affecting the City of Leesburg have been identified by City staff at this time. Successful attraction of a company or the expansion of an existing company within the boundaries of the proposed Enterprise Zone, which loosely coincides with the boundaries of the Carver Heights CRA, would most likely have a positive impact on the area in terms of new job creation and an increase in the area’s tax base.
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA SUPPORTING LAKE COUNTY'S NOMINATION OF THREE AREAS LOCATED WITHIN THE CITIES OF EUSTIS, LEESBURG, AND MASCOTTE FOR INCLUSION IN A FLORIDA ENTERPRISE ZONE; AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the State of Florida enacted the Florida Enterprise Zone Act, Sections 290.001 – 290.016, Florida Statutes, to incentivize and induce private investment in distressed areas, in order to restore the economic productivity of such areas and create economic opportunities; and
WHEREAS, by enacting Section 290.00728, Florida Statutes, the Florida Legislature has authorized Lake County to apply to the State Office of Tourism, Trade and Economic Development (OTTED) for designation of an enterprise zone of up to ten square miles within Lake County; and
WHEREAS, the Lake County Board of County Commissioners wishes to nominate three areas comprising almost ten square miles located within the cities of Eustis, Leesburg, and Mascotte (Exhibit B attached), as the County’s designated enterprise zone (the “Enterprise Zone”); and
WHEREAS, the Lake County Board of County Commissioners has determined that the nominated area meets the criteria of Section 290.0055(1)(a), and wishes to induce private investment in the Enterprise Zone in order to promote economic rehabilitation and revitalization of the nominated area; and
WHEREAS, designation of an Enterprise Zone is consistent with the City of Leesburg’s Strategic Plan economic goals.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the City Commission supports the nomination of the Lake County Enterprise Zone and confirms the determination that the area designated within the City of Leesburg (Exhibit A attached) meets the criteria of Section 290.0055(1)(a), Florida Statutes.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 12th day of September 2011.
Enterprise Zone Legal Description – Leesburg
Begin at the northwest corner of Urick Street (1-5407) and CR 468 in Section 9, Township 19, Range 24, run east along Urick Street to Thomas Ave (1-5108), run Southerly along Thomas Ave to the intersection of Tally Road (1-5109) in Section 15, Township 19, Range 24, run east along Tally Road to Timber Road, run South along Timber Road to the intersection of the Seaboard Coast Line Railroad in Section 22, Township 19, Range 24, run westerly along the Seaboard Coast Line Railroad to Thomas Avenue in Section 22, Township 19, Range 24, run south along Thomas Ave to SR 44, run west along SR 44 to CR 468 in Section 28, Township 19, Range 24, run north along CR 468 to POB, less all lakes and wetlands,
Begin at the intersection of Thomas Ave (1-5108) and West Main Street in section 27, Township 19, Range 24, run east along Main Street to US Highway 27, run south along US Highway 27 to the intersection of US Highway 27and CR 25A in section 2, Township 20, Range 24, run northerly along the Abandoned Seaboard Coastline Railroad until it intersects with SR 44, run west along SR 44 until it intersects with Lone Oak Drive, run north along Lone Oak Drive to West Main Street, run West to POB, less all lakes and wetlands.