Item Coversheet
City Clerk

DATE:

1/30/2020

MEMO:

2020-06

TO:

Honorable Mayor Julie Moore Wolfe and City Council Members

FROM:

Scot Wrighton, City Manager

Jon Kindseth, Deputy City Manager

Greg Crowe, Planning and Development Manager


SUBJECT:  

Resolution adding territory to the Decatur Macon County Enterprise Zone (EZ) for an economic development project on a vacant parcel north of 104 N. Ashland Ave in Mt. Zion for Decatur Orthopedic Center, LLC.

 
SUMMARY RECOMMENDATION:  

City Staff recommends approval of this item amending the boundaries of the local Enterprise Zone to allow Decatur Orthopedic Center to expand their current facility located at 104 Ashland Avenue by constructing a new building located on the adjoining vacant parcel north of 104 Ashland Avenue in Mt. Zion and to provide a connector strip to the existing EZ.

 
BACKGROUND:  

The EZ is an economic development tool that can provide incentives to spur local economic development.  The current zone has been in existence since 2016 with the passage of new related state statutes and has served as a critical tool in supporting local economic development activity. 

In partnership with a land developer, Decatur Orthopedic Center, LLC (DOC) is requesting addition of parcel 09-13-33-378-017 to the existing Enterprise Zone (see request letter attached) to allow for an construction of a larger facility to allow additional space for their expected growth and increase in employment. The project is expected to cost more than $6,500,000 and will allow DOC to retain their existing 22 employees and increase their employment to more than 25 employees.  The amendment is critical due to the 5-year property tax abatement and the sales tax exemption on construction materials available in the Zone.

All amendments to the Enterprise Zone boundaries require approval from all the local government members of the Zone. 
STAFF REFERENCE:  Additional questions can be forwarded to Scot Wrighton at 217-424-2801 (swrighton@decaturil.gov) or Greg Crowe at 217-424-2786 (gcrowe@decaturil.gov). 
BUDGET/TIME IMPLICATIONS:  None. 
ATTACHMENTS:
DescriptionType
ResolutionResolution Letter