R2018-71 Adding Territory to the Decatur Macon County Enterprise Zone Decatur Memorial Hospital

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Item Coversheet Page 1 of 1 in Economic&Community Development DATE: 6/18/2018 MEMO: No. 18-20 TO: Honorable Mayor Julie Moore Wolfe and City Council FROM: Tim Gleason,City Manager Billy Tyus,Deputy City Manager Raymond Lai,Director of Economic&Community Development SUBJECT: Resolution adding territory to the Decatur Macon County Enterprise Zone(EZ)for an economic development project at the intersection of West Kenwood Ave.and North Church Street in Decatur for Decatur Memorial Hospital(DMH) SUMMARY RECOMMENDATION: City Staff recommends approval of this item amending the boundaries of the local Enterprise Zone to encompass a proposed 60,000-sq.ft.four-story medical office building in Decatur,just east of DMH's main entrance(see attached map)and to provide a connector strip to the existing EZ. BACKGROUND: A separate but related resolution to rescind the previously approved Resolution 2018-28 is also included in this same City Council meeting agenda. In essence,with this newly recommended resolution,additional territory and a connector strip are now being proposed in order to accommodate a new medical office building in the proposed EZ expansion area. 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. Forty-nine(49)completed/committed projects representing approximately$133 million in direct investment have benefitted from the availability of enterprise zone benefits since 2016. The investment supported the creation of 560 new positions and the retention of more than 3,890 other employees. In partnership with a land developer,DMH is requesting addition of properties to the existing Enterprise Zone(see previous request letter attached)to incorporate the construction of a 60,000-sq.ft.,four-story medical office building,representing an investment of approximately$16 million. It is expected that the construction of this facility will provide construction jobs for local skilled trades people and will accommodate 90-100 employees after it opens. The building will house multiple medical specialties enabling DMH,one of the top 10 employers in Decatur,to attract and retain critical medical services. The amendment is critical due to the 5-year property tax abatement and the sales tax exemption on construction materials available in the Zone. STAFF REFERENCE: Additional questions can be forwarded to Tim Gleason at 217-424-2801(tgleason@decaturil.gov)or Raymond Lai at 217-424-2727(rlai@decaturil.gov). BUDGET/TIME IMPLICATIONS: None ATTACHMENTS: Description Type Resolution Resolution Letter Supporting Documentation Backup Material https://decatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=1581 6/18/2018