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 Results

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

Opportunity Zone Identification Discussion

• Comments

•Thoughts

•Discussion