Proposal For
Opportunity Zone IdentificationA Spatial Approach
Presenter, Duane Treadon
Advisor, Patrick Kennelly, Ph.D
Opportunity Zone Identification Outline
Background
Why an Opportunity Zone
OZ Law Spatial Relationship
The Process
Getting to Final Product
Assigned to explore OZ for Victoria Place Urban Redevelopment Area
GEOG 586 Spatial Analysis
Developed a GIS approach for identification of potential OZ areas
Approached GA Dept. of Community Affairs with concept
Opportunity Zone Identification Background
So, what is an Opportunity Zone
and how can it benefit communities?
Opportunity Zone Identification What is an OZ
•Jobs creation incentive program
•Allows for the maximum Job Tax Credit allowed under law -$3,500 per job created
•Requires at minimum the creation of 2 jobs
•Job Tax Credit is used against 100% of income tax liability and withholding
•Expands the definition of “business enterprise” to include all businesses of any nature
The program reduces the businesses' overall Georgia Corporate tax liability allowing cash to stay with the business and thus the community.
So, what is an Opportunity Zone
and how can it benefit communities?
Opportunity Zone Identification What is an OZ
•Communities realize benefits through
•Job creation
•Business expansion/ relocation into economically depressed areas
•Increased retail, service, and industry options
•Positive growth for declining areas
The program reduces the businesses' overall Georgia Corporate tax liability allowing cash to stay with the business and thus the community.
Businesses often funnel these savings back into the community by creating more jobs and economic opportunities.
Opportunity Zone Identification Opportunity Zone Defined
Rules Of
DEPARTMENT OF COMMUNITY AFFAIRS
CHAPTER 110-24-1
OPPORTUNITY ZONE JOB TAX CREDIT PROGRAM REGULATIONS
110-24-1-.01 Program Description, General Guidance, and Definitions
110-24-1-.02 Threshold Criteria for Boundaries and Designation 110-24-1-.03 Application for Designation 110-24-1-.04 Policies, Procedures, Limitations, Reporting and
Adjustment of Boundaries 110-24-1-.05 Opportunity Zone Tax Credit
Opportunity Zone Identification Opportunity Zone Defined
DEPARTMENT OF COMMUNITY AFFAIRS110-24 OPPORTUNITY ZONE JOB TAX CREDIT PROGRAM
CHAPTER 110-24-1OPPORTUNITY ZONE JOB TAX CREDIT PROGRAM REGULATIONS
110-24-1-.01 Program Description, General Guidance, and Definitions 110-24-1-.02 Threshold Criteria for Boundaries and Designation
1. “Areas Displaying Pervasive Poverty” shall be defined as census block groups with 15% or greater poverty and any “adjacent to” census block groups as determined from data in the most current United States decennial census.
2. “Underdevelopment” shall generally be defined as areas where appropriate data indicates a lack of development activities as evidenced through higher vacancy rates along with data indicating that business license fees, building permits, development fees, or other similar measures of business activity in the nominated area are significantly lower than the activity within the local governing body's jurisdiction as a whole. Underdevelopment must be supported by appropriate data as detailed under 110-24-1-.03(4)(b).
3. “General Distress” shall generally be defined as adverse conditions within the nominated area other than those of Underdevelopment. Examples of such adverse conditions include, but are not limited to, higher than average unemployment, a high incidence of crime or code enforcement actions, a higher than average number of abandoned, deteriorated or dilapidated structures, deteriorated infrastructure, and substantial population decline. General Distress must be supported by appropriate data as detailed under 110-24-1-.03(4)(b).
4. “Blight” shall generally be defined as the conditions described for “slum area” pursuant to the Urban Redevelopment Law at O.C.G.A. § 36-61-2(18) and/or the conditions described for “blighted or distressed area” pursuant to the Redevelopment Powers Law at O.C.G.A. § 36-44-3(7)(A).
Opportunity Zone Identification Spatial Relationship
Language of the Law lends itself to Spatial Analysis
Pervasive Poverty, Under Development, General Distress, Blight.
Pervasive Poverty Underdevelopment General Distress General Blight
U.S. Census poverty rate by Block Group
Building Permit Activity Crime Incident Establishment of an Urban Redevelopment Area
Abandoned/Dilapidated Structure
Abandon/Dilapidated Structure
Vacant Parcel Infrastructure
Non-active Business License Code Enforcement Case
Depressed Property Values Population Decline (US Census)
Opportunity Zone Identification Data Design
Building Permit Activity
Abandon/Dilapidated Structure
Vacant ParcelNon-active Business License
Depressed Property Values
Conditions of Underdevelopment
Use Simple Binary Value Coding
Crime IncidentAbandon/
Dilapidated Structure
Poor Infrastructure
Code Enforcement
Case
Population Decline
Conditions of General Distress
Opportunity Zone Identification Data Input
CRITICAL
Optional DataBut Helpful
FOR JOIN
Simple Binary Value Coding
0 = Does not meet condition 1 = Does meet condition
To Be Populated by Field Calculator
Opportunity Zone Identification Data to GIS
Using the Join Data function unite the OZ_TEMPLATE table with the Parcel layer shapefile.
Once complete coded OZ values are ready for analysis.
Opportunity Zone Identification Data Calculations
Field Calculator for UnderdevelopedField Calculator for DistressedField calculator for Combined Value
Opportunity Zone Identification Deliverables
End Products to be Delivered to DCA:
•White Paper for posting on DCA website describing OZ identification tool
•Instructional document on how to use OZ Identification tool
•Section A covering data enter using supplied Excel spreadsheet
•Section B covering import and utilization of data in ArcMap
•Excel File for use by local communities in coding criteria conditions for OZ
•ArcMap Field Calculator files for use in calculating coded values
•Map template to DCA standards for display of results
Opportunity Zone Identification Timeline
Contact DCA with proposal June 2011
Refine concept based on DCA comments June-July 2011
Present concept proposal to DCA Staff Aug, 08, 2011
Prepared “white paper” describing tool Aug 2011
Develop tool based on DCA needs Aug-Sept 2011
Submit deliverables to DCA October 03, 2011
Revise as needed for DCA October 2011
Anticipate acceptance of tool from DCA November 07, 2011
Present project during SHRUG Workshop November 09, 2011
Complete In Progress
Opportunity Zone Identification Capstone Presentation
2011 SHRUG GIS WorkshopNovember 9th and 10th
Florida State Convention Center
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