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Date
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May 18, 2009
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Agenda
Item No. 46 Roll
Call No. 09-
Communication No. 09-332 Submitted by: Matthew Anderson, Economic
Development Administrator |
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AGENDA HEADING:
Resolution
of the Des Moines City Council petitioning the Iowa Department of Economic
Development (IDED) for Extension of the Des Moines Gateway Enterprise Zone
(EZ-3).
SYNOPSIS:
City Council is requesting to
petition the IDED to extend the Des Moines Gateway Enterprise Zone for another
10 years. This zone will expire in July
2009 and needs to be extended to continue the effort to revitalize and
redevelop areas within the zone. The
area proposed for extension is bounded generally by I-235 on the north,
Pennsylvania Avenue / East 7th Street to East Vine Street to the Des
Moines River on the east, the Raccoon River on the south and west and 19th
Street to Woodland Avenue to 10th Street on the west. The area includes
the Central Business District and the Riverpoint West development area. The Enterprise Zone Program provides financial
incentives in the form of State corporate income tax credits, sales and service
tax rebates, along with other benefits to attract new residential, commercial
and industrial investment in distressed areas.
The application for enterprise zone certification is attached to the
roll call.
FISCAL
IMPACT: NONE
Amount:
N/A
Funding
Sources: This
is a State of Iowa program and has no impact on the City of Des Moines.
ADDITIONAL
INFORMATION:
On June 21, 1999, by Roll Call
No. 99-2002, the City Council designated the Gateway Enterprise Zone and
submitted an application to the IDED for certification of this zone. On July 22, 1999, the IDED Board of Directors
certified the Gateway Enterprise Zone. On September 24, 2001, by Roll Call
01-2933, the City Council submitted an application to IDED to add another seven
acres to the Gateway Enterprise Zone, which was also approved by IDED.
Beneficiaries of the State
Enterprise Zone Program primarily include developers of housing, office and/or
industrial projects. Applicants must
meet certain State eligibility criteria related to investment, job creation,
wages and benefits and project completion timeframe, in order to qualify for
incentives.
State enterprise zone benefits
include 10% investment, 3% jobs training and 13% research activities tax
credits, as well as, 100% sales tax refunds on materials used and services
provided in construction contracts.
The Gateway Enterprise Zone meets
the State’s eligibility criteria for certification by having a family poverty
rate of 29.9% and a housing vacancy rate of 13.5%, both in Census Tract 51, as well
as a 23.1% family poverty rate in Census Tract 27, all according to the 2000
Census.
The Gateway Enterprise Zone
certification, if approved by IDED, will remain in effect until July 21, 2019. Although incentives must be conferred prior
to the end of the 10-year period, the benefits provided may extend beyond this
timeframe. Enterprise zone certification will assist the City of Des Moines in
retaining, expanding and attracting new investment to this area. The use of State tax benefits will act as leverage
and may reduce the amount of City incentives.
PREVIOUS
COUNCIL ACTION(S):
Date: September 24, 2001
Roll
Call Number: 01-2933
Action: Application
to State of Iowa for Enterprise Zone Certification for Amended Gateway
Enterprise Zone to include an additional seven acres located between Woodland
Avenue and Linden Street and between 15th and 16th Streets. (Council
Communication No. 01-481) Moved by Hensley to adopt. Motion Carried 7-0.
BOARD/COMMISSION
ACTION (S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS: NONE
For more information on this and other agenda items,
please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office
on the second floor of City Hall,