HomeMy WebLinkAboutR-98-0635J-98-657
6/15/98
RESOLUTION NO. U 8- 6 3 5
A RESOLUTION, WITH ATTACHMENT, NOMINATING THE
GEOGRAPHIC AREA KNOWN AS THE CITY OF MIAMI STATE
ENTERPRISE ZONE ("ZONE"), AS SET FORTH IN
EXHIBIT A ATTACHED HERETO, FOR PARTICIPATION IN
THE STATE OF FLORIDA URBAN JOB TAX CREDIT
PROGRAM IN ACCORDANCE WITH CHAPTERS 212 AND 220,
FLORIDA STATUTES; AUTHORIZING THE CITY MANAGER
TO SUBMIT AN APPLICATION FOR DESIGNATION OF THE
PROPOSED ZONE.
WHEREAS, the Florida Legislature created a new program called
"Urban Job Tax Credit Program (s. 212.097, F.S.) ("Program") to
increase employment opportunities in urban "high crime" areas; and
WHEREAS, the Program is intended to provide tax credits to
eligible new or expanding businesses located within the designated
high crime area; and
WHEREAS, the proposed tax credits (sales or corporate) will
range from $500 to $2,000 for each new job and will be available
after January 1, 1999; and
WHEREAS, the City intends to participate in the Program pursuant
to 1997 Florida Statutes, Chapters 212 and 220 to provide
opportunities to eligible businesses and individuals located within
the designated Zone; and
WHEREAS, the City's State Enterprise Zone Area, established to
ATTACHMENT (S)
I; CONTAINED
CITY COIISSiON
MEETING M
JUN 2 3 M8
Resolution No.
98- 635
promote economic development opportunities in a designated area, is
deemed to be the appropriate area for the new Program;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF
MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the Preamble
to this Resolution are hereby adopted by reference thereto and
incorporated herein as if fully set forth in this Section.
Section 2. The geographic area known as the City of Miami State
Enterprise Zone ("Zone"), as set forth in Exhibit A attached hereto,
is hereby nominated for participation in the State of Florida Urban
Job Tax Credit Program, in accordance with Chapters 212 and 220,
Florida Statutes.
Section 3. This Resolution shall become effective upon its
adoption and signature of the mayor or pursuant to Section 4(g)(5) of
the City Charter and Section 2-36 of the City Code.
PASSED AND ADOPTED this 23rd day of June , 1998.
CAROLLO, MAYOR
/ LA.LTER
QFAM$N, CITY CLERK
RM AND CORRECTNESS:t/
Y ATTORNEY
W2665:csk:LKK
98- 635
Designawd Area for Urban Tax Credit
(City of Miami Portion of Enterprise Zone)
Municipal Boundaries
Text Street Names
Major Streets
Coastline
Enterprise Zone
98- 635
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO:
Honorable Mayor and Members
of the City Commission
FROM: D• /Id4`arsh4a=w
City Manager
RECOMMENDATION:
DATE : June 23, 1998
SUBJECT: Urban Job Tax Credit
Program
REFERENCES:
ENCLOSURES:
FILE :
It is respectfully requested that the Commission approve the attached Resolution
nominating the City of Miami State Enterprise Zone area for participation in the
State of Florida Urban Tax Credit Program, in accordance with the Chapters 212
and 220, Florida Statutes; and authorizing the City Manager to submit an
application for designation of the proposed Zone.
BACKGROUND:
Department of Community Development and Community Redevelopment
Agency would like to request the City Commission approve the City's State
Enterprise Zone designated for the participation in the State's Urban Job Tax
Credit Program.
The Florida Legislature recently created the Urban Job Tax Credit Program to
increase employment opportunities in urban areas. The program is for
predominantly engaged in agriculture, forestry, fishing, manufacturing, public
warehousing and storage, hotels and other lodging places, research and
development, public golf courses and amusement parks. In administering the
credit, the top 15 high -crime areas will be ranked by the State's Office of
Tourism, Trade and Economic Development according to the following five
factors:
1. Overall index crime rate for the geographic area;
2. Overall index crime volume for the area
3. Percentage of reported index crimes that are violent in nature
4. Reported crimes volume and rate of specific property crimes such as
business and residential burglary, motor vehicle theft, and vandalism
5. Arrest rates within the geographic area for violent crime and for such other
crimes as drug sale, drug possession, prostitution, disorderly conduct,
98- 635
vandalism and other public offenses.
Of the selected 15 urban high -crime areas, Tier-1 areas, ranked 1 through 5,
represents the highest crime areas according to this ranking. Tier-2 areas will be
ranked 6 through 10. Tier-3 areas will be ranked 11 through 15 and represents
those areas with the lowest crime rate according to this ranking.
According to the adopted legislation, a new business may apply for a one-time
tax credit at any time during the first year of operation. A new company located
in a tier-1 crime area with 10 or more qualified employees will receive a $1,500
tax credit for each employee. A new company located in a tier-2 crime area with
20 or more qualified employees will receive $1,000 tax credit for each employee.
Similarly, a new company located in a tier-3 crime area with 30 or more qualified
employees will receive a $500 tax credit for each employee.
The legislation also allows eligible existing businesses to participate in the
program. As such, an existing eligible business located in a tier 1 crime area
with 5 or more qualified employees than it had one year prior to date of
application receives a $1,500 tax credit for each employee. Similarly, an existing
company located in a tier-2 crime area with 10 or more or tier-3 crime area with
15 or more qualified employees will receive $1,000 or $500 tax credit
respectively.
An additional credit of $500 is available for new employees who are WAGES
program participant pursuant to ch. 414, F.S. Such employees must be
employed on the date of application date and have been employed less than one
year. This rule applies to both new and existing businesses at all tier levels.
The legislation provides other eligibility criteria for business to receive the credit
and declares that a company must use its high -crime area job tax Credit for
taxes under ch. 220, F.S., regarding corporate income taxes, or ch. 212, F.S.,
regarding tax on sales and other transactions, bot nor both.
The proposed designated area, if approved by the State of Florida, will be a new
layer of substantial economic incentive over the existing Enterprise Zone
Program, promoting business attraction and expansion in the area, and providing
significant employment opportunities for the unemployed individuals.
Enclosure: Proposed Resolution
2
98- f 95