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Forsyth seeks new job tax credits
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Cumming – A $4,000 tax credit for every new job created in a section of Forsyth County is Commissioner Patrick Bell's attempt at stimulating the economy.
Bell presented an Opportunity Zone application process with the help of county staff, including Planning & Development Director Jeff Chance, his assistant director, Tom Brown, and Brian Dill, vice president of Economic Development for the Cumming-Forsyth Chamber of Commerce.
The first step, to adopt a resolution of necessity, was approved at the commissioners' regular meeting on Oct. 15.
That Forsyth would need the help of a program by the Georgia Department of Community Affairs typically targeting "blighted" areas seems unlikely. However, Bell and County Attorney Ken Jarrard explained that the program has several criteria that show need.
The Opportunity Zone includes property along Ga. 400 and primarily in the Hwy. 306 and Hwy 369 area north of Cumming. Most of that land is depicted as commercial use in the Future Land Use Map. The area has high unemployment, approaching 9 percent in July 2009, and a high number of foreclosures. The application and resolution of necessity are based on that information.
Bell said he knew it was hard to believe that the 13th most affluent county in the nation needs help.
"But we do have pockets of significant poverty," he said. "I know we need jobs."
The plan not only creates jobs, it creates jobs within an area that has a significantly lower than average graduation rate in the county and higher than average incidents of domestic and substance abuse.
The first-term commissioner said he wanted to take some areas of the county that had significant infrastructure investment, but limited development, to encourage those who might be looking to build to choose the opportunity area.
Mike Evans, who is on the DCA board, and Sen. Jack Murphy, helped the county work with the DCA to develop an application. Commissioner Brian Tam has been helping with the process as well, Bell said, as did Nicole McCoy, executive director of the Forsyth County Community Connection.
The county's Urban Redevelopment Plan and request for Opportunity Zone to the DCA must show the area is underdeveloped. The county is designated at Tier 4 now. Attaining Tier 1 status would qualify businesses creating new jobs in the Opportunity Zone for $3,500 annual tax credits per job for five years, with only two new jobs required as a minimum.
This would be applied to 100 percent of the income tax liability and payroll withholding.
The county's Development Authority has its own $500 job credit, which would bump the tax credit up to $4,000.
Dill said an advantage of gaining Tier 1 status is that the lower level requires a minimum of 25 new jobs to gain the tax credits, while this top level has no minimum.
"It's real dollars off these companies' bottom lines," Bell said.
Bell said the great thing about this is that it's the state money, not Forsyth County money.
The commission approved creation of an Urban Redevelopment Plan and of an Opportunity Zone application, which has a Nov. 2 deadline by the DCA.
Tags: Cumming, Forsyth County
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