Making Sense of Georgia’s
Revitalization Tools
Martha Reimann
Office of Downtown Development
Georgia Department of Community Affairs
October 21, 2008
Incremental Changes in Georgia’s
Redevelopment Statues Since 2004
Intended to:
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Utilize State’s existing redevelopment tools in
an innovative fashion
Reward local governments that place “skin in
the game” with access to maximum State Job
Tax Credits
Operate state-wide, wherever “pockets of
poverty” exist in rural, urban and suburban
communities
Support bottom up, locally driven community
and economic development initiatives through
local collaborative partnerships
Goal: To Integrate Benefits of
These Statutes:Statutes
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Enterprise Zone Employment Act –
O.C.G.A. 36-88
Georgia Urban Redevelopment Law –
O.C.G.A. 36-61
Georgia Business Expansion &
Support Act – O.C.G.A 48-7-40.1
Opportunity Zones
Local Enterprise
Zone Benefits
Max State
Job
Tax Credits
Local
Redevelopment
Powers
For-Profit
Focused Geographic
Non-Profit
Businesses &
Areas – 15 to 20% Poverty Partners
Banks
CDBG
Funds
CDBG
Other Federal &Redevelopment Area
State Programs Strategy (RAS)
Creating an Urban
Redevelopment Area

The Brainstorming Phase
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List all possible local applications for the Act
Highlight potential redevelopment areas
containing these potential projects on a map
Eliminate any area that might not be
appropriate for political or other reasons
Superimpose block group boundaries meeting
20% poverty criteria
Definition of a “Slum Area”

Any area where there are a predominance of
buildings or improvements that are conducive
to:
• ill health,
• transmission of disease,
• infant mortality,
• juvenile delinquency,
• crime, or
What
is
a
Slum
Area?
Caused by the such buildings or
improvements being;
 dilapidated,
 deteriorated,
 old,
 obsolescent,
 inadequately designed for ventilation, air,
light, sanitation, or open spaces,
 over populated.
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Raising property values and tax revenues
Reclaiming underutilized land with existing infrastructure investments
Providing more intown housing
Promoting innovative development
Humanizing blighted areas
A Master Plan with “Teeth”
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A URA Plan allows the imposition of conditions
more specific than existing land use regulations.
Conditions in the URA plan run with the property
and control development above and beyond
other land use regulations:
“the provisions of the plan with respect to the
future use and building requirements
applicable to the property covered by the plan
shall be controlling with respect thereto.”
Tax Exempt Bonds
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Redevelopment entity may issue tax exempt bonds
to be repaid with profits from the urban
redevelopment project. May be secured by mortgages
on property within the district.
Bonds issued under this Code section shall not
constitute an indebtedness within the meaning of any
constitutional or statutory debt limitation or
restriction
Bonds can be retired from sources such as grants,
loans and other revenues.
May Promote Redevelopment with Tax
Exempt Revenue Bonds

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Redevelopment entity may issue tax
exempt bonds to be repaid with profits
from the urban redevelopment project.
May be secured by mortgages on property
within the district.
Bonds issued under this Code section
shall not constitute an indebtedness within
the meaning of any constitutional or
statutory debt limitation or restriction
Bonds can be retired from sources such as
grants, loans and other revenues.
Intergovernmental Contracts
•
Can bind local governments for
specific periods of time, even if elected
officials or political climate changes
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Allow things that a local government
cannot do directly
Allows Local Governments to Waive
Inappropriate Development Regulations
 “. . . to plan or replan, zone, or rezone
any part of the municipality or county or
make exceptions from building
regulations”

Examples: Cottage development,
narrower streets, mother in law suites
Property Purchase and
Disposition under the Act
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Sale of property acquired under the act need
not be to the highest bidder
Competitive RFP’s may be solicited and
evaluated
Bidder’s qualifications and the desirability of
their concept plans may be considered
Conditions related to URP must be attached to
deeds and will run with the land
Taxes and Fees

Property owned by the URA is not taxable
unless/until sold to a private party

Local government has the power to levy
special taxes and assessments within the
urban redevelopment area
Preparing and Adopting an Urban
Components
Redevelopment
Plan of the URP
The First Legal Step:
Adoption of a resolution by the city or county finding
that:
• one or more slum areas exist, and
• rehabilitation, conservation, or redevelopment of
such area is in the interest of the public health,
safety, morals, or welfare of the residents of the city
or county.
Next:
Prepare the plan draft and put make it available for
review
Advertise and hold a public hearing to get comments
on the plan
Adoption of the final URA plan by City Council
Preparing an Urban Redevelopment Plan
Data Supporting the Slum Designation
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Lower than average growth in assessed tax value
Fewer new building permits than elsewhere
Deteriorated housing and building conditions
Visual Blight and litter
High crime statistics
Unemployment
Vacancy rates
Bankruptcies and business closings
Substandard public infrastructure
Bad street or lot layout
Fractured or unclear property ownership (clouded
titles)
Delinquent property taxes
Preparing
an Urban of
Redevelopment
Plan
Components
the URP
Required information:
 proposed land
acquisition demolition
and removal (needs to
be fairly specific)
 redevelopment
improvements
 zoning and planning
changes anticipated
 Relationship to definite
local objectives
 appropriate land uses
PreparingComponents
an Urban Redevelopment
of the URPPlan
improved traffic
 public transportation
 public utilities
 recreational/community
facilities and other public
improvements
 Relocation strategy for
displaced
• - residents
• - businesses

State Enterprise Zone
What is it?
In 1997, the General Assembly enacted the
Enterprise Zone Employment Act, recognizing the
need for revitalization in many areas of Georgia. The
State Enterprise Zone program intends to improve
geographic areas within cities and counties that are
suffering from disinvestment, underdevelopment,
and economic decline, encouraging private
businesses to reinvest and rehabilitate these places
by providing local tax abatement.
Note: Must be “blighted” , not intended for
prosperous or greenfield areas.
State Enterprise Zones
• Property tax exemption -- OCGA §3688-3(1)
•
Abatement or reduction
in occupation
Text
Text
Text
taxes, regulatory fees,
building
Text
inspection fees, and other fees that
would otherwise be imposed on
qualifying business -- OCGA §36-889(a)
State Enterprise Zones
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Area may include one or more abutting
parcels that meet designation criteria
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County & Cities may
jointly designate
Text
Text
Text
zones
Text
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Area may be re-designated if it
continues to meet criteria after expiration
of initial 10 yr. term
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County Property tax exemptions capped at
10% of digest
Property Tax Exemption for Qualifying Enterprises Not to
Exceed:
100% for first five years
80% for next two years
60% for year eight
Text
Text
40% for year nine
Text
Text
20% for year ten
School taxes, sales and use taxes, and taxes imposed
for G.O. debt are excluded
Enterprise must maintain a minimum of five jobs
State Enterprise Zones
Public Benefit Thresholds
Qualifying business or service enterprise must create
five or more new full-time job
Provide “economic stimulus”
with sufficient quantity
Text
Text
Text
and quality as shall be determined
by local
Text
government(s) that designated zone; and when
possible”, 10% of new employees shall be low-and
moderate-income individuals
If residential and/or rehab of an existing structure
where value of improvements > 500% of land value,
exemptions apply to ANY entity
Qualifying business or service
enterprise (for normal EZs)
•
“business enterprise” means retail,
manufacturing, warehousing & distribution,
processing, telecommunications, tourism,
research & development, new residential
construction and rehabilitation
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“service enterprise” means finance, insurance,
real estate activities listed under SIC 60 – 67 or
entities engaged in day-care
State Enterprise Zones
Enterprise Zones must meet at least THREE of these FIVE
criteria:
Pervasive poverty using 1990 Census data. Each
block group must have at least 20% poverty.
Unemployment Rate (average for preceding yr.) at
least 10% higher than State or significant job
dislocation.
Text
Textby lack of building
Underdevelopment evidenced
permits, licenses, land disturbance permits, etc.
lower than development activity within the local
jurisdiction.
General distress and adverse conditions (population
decline, health and safety issues etc.).
General Blight evidenced by the inclusion of any
portion of the nominated area in an Urban
Redevelopment Area. &
Promising Uses for Opportunity
Zones
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Blighted industrial, commercial and residential areas:
Brownfields (contaminated industrial sites)
Declining commercial corridors (greyfields)
Deteriorating in-town neighborhoods (housing and
infrastructure)
Pockets of urban poverty in otherwise affluent
counties
Rural areas with sluggish economies
Underperforming industrial parks in poor census
tracts
HB984 – Job Tax Credits under Georgia
 Business
Compared
to Regular
Enterprise
Expansion
& Support
Act
Zones an Enterprise Zone within in an
Opportunity Zone:
•
Broadens types of eligible businesses (any legal
businesses within the area)
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Lowers threshold to 2 jobs to qualify for the
state’s maximum job tax credit ($3,500 per job
for 5 years)
Opportunity Zones
1 or more Census Block
> 20% Poverty *
Enterprise Zone
Eligible OZ
*Or otherwise meeting 3 out of 5 EZ criteria
Opportunity Zones
1 or more Census Blocks
> 15% Poverty
Urban Redevelopment
Area (OCGA 36-71)
Eligible OZ
Opportunity Zones
1 or more Census Blocks > 15% Poverty
Eligible OZ
State Enterprise Zone
Redevelopment Area
Opportunity Zones
20% Poverty
Brownfield
Site
Warehouse
Distired
Historic Mill
Houses
(Low Income)
Downtown
Proposed
Residential
Infill
HB984 -- Opportunity Zones
20% Poverty
State EZ
Brownfield
Site
Uptown
Warehouse
District
Historic Mill
Houses
(Low Income)
Downtown
Proposed
Residential
Infill
HB984 -- Opportunity Zones
20% Poverty
State EZ
URA Redevelopment Area
Brownfield
Site
Uptown
Warehouse
District
Historic Mill
Houses
(Low Income)
Downtown
Proposed
Residential
Infill
Questions:
Brian Williamson –
Glen Misner –
Steed Robinson –
Martha Reimann –
Enterprise Zone
URA Plans
404.679.1587
bwilliam@dca.state.ga.us
404.679.
gmisner@dca.state.ga.us
404.679.1585
srobinso@dca.state.ga.us
404.378.2307
mreimann@dca.state.ga.us