Minutes 06/11/2013 - Laserfiche WebLink

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June 11, 2013 Background: • VDHCD is accepting applications from Virginia communities to participate in a competitive process for designation as an EZ. The designation is a state and local partnership and is one of the most effective methods of using incentives to stimulate economic development. Portsmouth's current EZ was established in 2010 and focuses on commercial areas. This application is for a second EZ and focuses on areas along the industrial waterfront. Discussion: • The City's current state-designated EZ has played a role in developing commercial areas of Downtown, Midtown, Victory, and the MAST Center by leveraging state and local incentives to attract development. This proposed EZ will spur economic development in the industrial waterfront areas of West Norfolk, Portsmouth Marine Terminal and the Paradise Creek/Elm Avenue Corridor by offering state and local incentives. Financial Impact • The financial impact is believed to be quite favorable for the City, but the extent to which the new Enterprise Zone will produce additional tax revenue, less the incentives/rebate costs, cannot be determined at this time. Recommended Action: • Adoption of a resolution authorizing the City Manager to submit an application through VDHCD to offer certain incentives and to administer the program. Vision Principle: A Robust Economy for Working Men and Women. Next Steps Following Council Action: • The Local Enterprise Zone Administrator will submit the application to the VDHCD by the June 28, 2013 deadline. Motion by Ms. Psimas, and seconded by Mr. Moody, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION OF THE COUNCIL OF THE CITY OF PORTSOUTH, VIRGINIA, AUTHORIZING AN APPLICATION FOR THE DESIGNATION BY THE COMMONWEALTH OF VIRGINIA, OF A SECOND VIRGINIA ENTERPRISE ZONE THE CITY OF PORTSMOUTH, PURSUANT TO THE VIRGINIA ENTERPRISE ZONE GRANT ACT. WHEREAS, the Commonwealth of Virginia has adopted the Enterprise Zone Grant Act (Va. Code secs. 59.1-538, et seq.) and designed the program with the purpose of stimulating real property improvements and new job creation in localities, and administers the Act through the Virginia Department of Housing and Community Development (VDHCD) and Enterprise Zone Regulations adopted by VDHCD; and WHEREAS, the Enterprise Zone Grant Act allows a locality to apply for designation of up to three enterprise zones, each containing up to three non-contiguous areas; and WHEREAS, the Council of the City of Portsmouth proposes to make an application to VDHCD to request designation of a second enterprise zone to include certain industrial and commercial areas within the West Norfolk neighborhood, near and including the Portsmouth Marine Terminal, and within the Paradise Creek/Elm Avenue area; and WHEREAS, the application is being made to provide for the implementation of certain local enterprise zone incentives by the City of Portsmouth and/or by the Portsmouth Economic Development Authority, subject to the designation of such enterprise zone by the Governor of Virginia; WHEREAS, the attached exhibits show the approximate proposed boundaries of the second Portsmouth Enterprise Zone and proposed local incentives; and