An attempt to spur downtown development in Clarkesville got a small boost this week. The Georgia Department of Community Affairs (DCA) designated 6 properties as part of an “Opportunity Zone” (OZ). Businesses located on those properties can now get tax credits for creating jobs. Those credits make hiring employees less expensive.
Last spring, the city had the whole of downtown declared an “Enterprise Zone” which gives property owners a small break on taxes and fees associated with doing business. Clarkesville City Manager Barbara Kesler said they hoped the whole area would be included in the new OZ but it didn’t work out that way, “It’s great but, unfortunately, it’s just very limited.”
The OZ status extends to the fire damaged buildings on the downtown square, the former Sweetbreads location and a parcel across Bridge Street from downtown (see map).
“As the (DCA) commissioner explains in the letter, the original intent of the program was focused on the redevelopment of small areas. So I guess they were serious when they said ‘small areas,’” Mayor Terry Greene quipped.
City Attorney Janney Sanders says the state program is very selective, “They’re not granting very many OZ requests at all,” he explains “I suspect that it is because of the fire that we got approved.”
Mayor Greene says the city will make the best of the situation, “We’re fortunate to get this area so we’ll just go with what we’ve got.”
The city is in the process of restoring the buildings damaged by fire in 2014. As Now Habersham reported on March 29, Clarkesville City Council is looking for the most cost effective way to get those buildings back in use quickly.
Opportunity Zone Tax Credit Incentives:
- the maximum Job Tax Credit allowed under law – $3,500 per job created
- the lowest job creation threshold of any job tax credit program – 2 jobs
- use of Job Tax Credits against 100 percent of Georgia income tax liability and withholding tax
- provides for businesses of any nature to qualify, not just a defined “business enterprise”
