DCEO Enterprise Zone Data Assistance Program Presented by Melissa Henriksen SIU-Edwardsville East St. Louis, IL September 26, 2014 Enterprise Zone Data Assistance Program Purpose of EZ Data Assistance Program Purpose • The program identifies the Local Labor Market Area (LLMA) for each Enterprise Zone (EZ) applicant using the site. • Based on the LLMA selected, the program identifies and organizes the data and materials needed for 7 of the 10 qualifying criteria for EZ applications. – Optional support offered for Employment Opportunities & Tax Base Improvement Plan data on cost recovery basis . • Applicants are NOT required to use this web site. It is designed to simplify data collection and tabulation. A frequently asked questions section is used to guide users in the application process. • This program only provides data needed for the ten eligibility criteria. No scoring is done. Applicants must submit the materials on paper copy to DCEO by December 31, 2014. The following presentation provides a description and considerations for each criterion. For the full application, the applicant can add more information to the tests as long as documentation is provided. The applicant can also choose to use or not use a test to demonstrate eligibility (Three tests required). Automatically Generates the LLMA based on Census Tracts in the Enterprise Zone Criteria for selection of LLMA : 1. Census Tracts in which the Enterprise Zone resides. 2. A Census Tract providing 10% of the commuting workforce to the Enterprise Zone to qualify as part of the LLMA. 3. Flexibility is provided allowing applicants to include additional Tracts that do not send 10% or more of message that the LLMA and map are customized). REMEMBER: If you choose to customize the LLMA instead of the LLMA provided under the criteria approved by DCEO, the applicant must be able to justify the LLMA based on analysis (commuting patterns, employment, etc.). GIS Shape files of proposed EZ can be sent ahead of time to CGS staff to verify LLMA as well. Test 1 – Unemployment (Automated)-LLMA County Tracts in LLMA Adams 101.00 Adams 102.00 Adams 103.00 Adams 104.00 Adams 105.00 Calculated LLMA Total Rate Meet Threshold? Ratio Illinois Unemployment Rate for 2012: 9.2% No 11.2% Yes 121.7% No 15.5% Yes 168.5% 120% of Illinois Unemployment Rate: 11.0% No 12.5% Yes 135.9% The most recent unemployment rates and figures from the Illinois Department of Employment Security (IDES) are used by tract and compared to the Illinois unemployment rate to determine the threshold of 120% or more (annual average). Test 2 – Employment Opportunities (EZ & LLMA) Designation will result in the development of substantial employment opportunities by creating or retaining a minimum aggregate of 1,000 full-time equivalent jobs due to an aggregate investment of $100,000,000 or more, and will help alleviate the effects of poverty and unemployment within the Local Labor Market Area. On full application applicants are encouraged to describe how the creation and retention of full-time equivalent jobs and new investment will help alleviate the effects of poverty and unemployment with the Local Labor Market Area. Test 2 – Employment Opportunities (EZ & LLMA) Estimating the economic impact of proposed strategies involves using an economic impact program (IMPlan). These programs can estimate direct and indirect/induced jobs. Several programs exist and this page will provide contact information for agencies willing to provide this service on a cost-recovery basis (approximately $1,500). Examples of data that must be provided by applicant: • Estimated jobs to be created • Estimated investment • Industries to be located in the EZ (NAICS) IMPLan is not required and there may be other sources where similar analyses can be obtained. Test 3 – Poverty (Automated)-LLMA • • Number of people in poverty and households receiving food stamps is derived from the most current five-year American Community Survey data from the Census Bureau. Those eligible for the Free/Reduced Lunch program are reported by the Illinois State Board of Education in the Report Card data. A) up to 10 points for the poverty rate in the LLMA B) up to 10 points for the percentage of children in participating schools and institutions in the LLMA are eligible for free and reduced-price meals C) up to 10 points for the percentage of households in the LLMA that receive SNAP benefits; and D) up to 10 points for the severity of (A) through (C). Test 4 – Abandoned Coal Mine, Brownfield or Federal Disaster Areas (Partially Automated)-EZ • This test, since it involves mines, brownfields and disaster areas that reside in the enterprise zone, will be done manually by CGS staff after receipt of the GIS shape file from applicants. • Federal Disaster Areas are identified at the County level only. • Applicants can verify if their mines or brownfields are on the state and/or federal priority lists which increases the point values awarded on the full application (contact information will be provided on web site under this test). Test 5 – Large Scale Business Closings-LLMA (not including federal facility closures-provided by applicant on full application) Tract # Date Name of Facility Employees Impacted 9602.00 12/30/2012 Chrysler 1,225 9602.00 06/05/2013 AVAYA Inc 58 9576.00 06/30/2013 Rotonics Manuf. 600 9577.00 01/03/2014 Menzies Aviation 92 9577.00 01/05/2014 ARAMARK 85 Calculated LLMA Total 2,060 Tract # State Facility City Date # Affected 9602.00 Dwight Correctional Dwight 2012-08-31 350 9576.00 Tamms Correctional Tamms 2012-08-31 300 Calculated LLMA Total 650 Test 6 – Vacant Structures-LLMA Industrial and Commercial Structures Tract # Industrial Square Footage Vacant Vacancy Rate 9872.00 350,000 12,000 3.4% 9876.01 270,000 0 0% 9876.02 58,000 58,000 100% TOTAL LLMA 678,000 70,000 10.3% • Full application will ask applicants to describe industrial/commercial properties not used because of age, deterioration, relocation of the former occupants, or cessation of operation. (Added by applicants on full application) • CoStar is the most accurate data available, HOWEVER, no data source is 100% complete. There will also be a demolition table with counts and sq. footage. Applicant should review materials and add to the full application. Test 7 – Tax Base Improvement Plan The applicant demonstrates a substantial plan for using the designation to improve the State and local government tax base, including income, sales, and property taxes. Information is provided for applicants to contact CGS-NIU to conduct a more detailed analysis of the economic impact at a cost of $1,500. The LOCI program generates information on sales, income, and property tax bases using information provided by applicants. (This is an optional arrangement for applicants and contact information is provided on the web site.) Test 8 – Public Infrastructure Improvement Plan (1) An inventory of the public infrastructure that demonstrates that significant public infrastructure exists in the LLMA to support economic development at the time of the application. (2) A three-year public infrastructure improvement and development plan for each municipality and/or county applicant government. The applicant can either • prepare these documents specifically for application; • attach existing plan(s) if the plan(s) meets the minimum requirements. • (If existing plan(s) does not meet the minimum requirements, the plan(s) can be submitted with an addendum that provides the supplemental information necessary to meet Test #8). There is no requirement to prepare another Capital Improvements Plan. Test 9 – Career Skills Programs-LLMA Tract # School Name 9876.00 Bolingbrook High School 9877.00 Joliet Junior Community College ACT Work Keys Skills Standard Certification • ACT Participation may include some private high schools (lists will be provided). Applicant can contact additional schools if not on the ISBE list for verification and documentation. • Contact community colleges and training facilities not on the Illinois Manufacturers’ Association if applicant knows of other training provided but not listed. Test 10 – Equalized Assessed Valuation-LLMA The increase in equalized assessed valuation of industrial and/or commercial properties in the 5 years prior to the date of application in the local labor market area is equal to or less than 50% of the State average increase in equalized assessed valuation for industrial and/or commercial properties, as applicable, for the same period of time as reported by the Illinois Department of Revenue. If the change in EAV in the State of industrial and/or commercial properties in the 5 years prior to the date of application is negative, then the applicant should instead demonstrate that the decrease in EAV of industrial and/or commercial properties in the 5 years prior to the date of application in the local labor market area is equal to or greater than 50% of the State average decrease in EAV for industrial and/or commercial properties, as applicable, for the same period of time as reported by the Department of Revenue. Test 10 – Equalized Assessed Valuation-LLMA • The county aggregated information is available from the Department of Revenue office on the DCEO/CGS site. • Applicants should contact their respective County Assessor’s office for each county in the Local Labor Market Area to obtain this information for the tracts. • Contact information for all counties will be downloadable for the respective assessor’s offices. • While not many entire counties meet the criteria, certain tracks may. Property Class (statewide) Commercial Industrial Commercial & Industrial Residential Commercial, Industrial, & Residential % Change in EAV, 2008-2012 -21.0% -15.8% -19.6% -17.3% -18.1% 50% Higher Than Statewide Loss -31.5% -23.8% -29.4% -26.0% -27.1% Prototype prepared by the Center for Governmental Studies, NIU # of Counties Meeting Threshold 0 4 0 3 0 16 Next Steps • Web site will go live on 10/1 as www.enterprisezonesillinois.com – Currently the site hosts FAQs, login for a ListServ (register) where questions can be posed and updates are posted, legislation, application, and other useful tools. • Copies of this Power Point and other information are available under Resources on the web site. • An instructional webinar will be held on October 9, 2014 at 12:00 noon. – Live questions will be answered. • Technical assistance on web site usage is available from: Sherrie Taylor, (taylor@niu.edu) or 815-753-0925. Prototype prepared by the Center for Governmental Studies, NIU 17 For Additional Information, Contact: Sherrie Taylor Research Associate taylor@niu.edu 815-753-0925 Center for Governmental Studies 148 North Third Street DeKalb, IL 60115 www.NIUCGS.org 18 Notes ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________ ________________________________________________ 19