Leesburg may seek ‘rural zone’ designation

March 07--LEESBURG -- A special "rural zone" designation could provide tax credits for job creation, investments and renovation of downtown properties in Leesburg, city officials learned Tuesday.

At Tuesday night's Leesburg City Council meeting, Rozanne Braswell, who heads Lee County's Planning, Zoning and Engineering department, informed city officials of an annual grant opportunity that could go hand-in-hand with plans to preserve the community's historic district while attracting tourism and new businesses.

The Georgia Department of Economic Development, in partnership with the Department of Community Affairs, selects up to 10 communities for the rural zone designation each year. By offering economic development incentives, the program targets rural downtown areas that have been adversely impacted by economic conditions.

Among those incentives is a job tax credit of up to $2,000 per new full-time job equivalent created. The credit is renewable for up to five years, not to exceed $200,000 total or $40,000 each year.

Braswell said that a new job equivalent can mean one full-time, 40-hours-per-week employee or a combination of part-time employees working 40 hours weekly.

"The credit is for a small storefront or business owner who opens a business and creates jobs," Braswell said.

Another incentive offered through the rural zone program is an investment credit for up to 25 percent of the purchase price of a property. Renewable for five years, the credit is not to exceed $125,000 total, or $25,000 per year. The credit is designed for those who purchase a building downtown.

A third incentive is a rehabilitation credit of up to 30 percent of a building's qualified rehabilitation costs, not to exceed $150,000 total over a five-year period, or $30,000 per year. The credit is designed to help offset development costs associated with the rehabilitation of certified investor properties.

According to Braswell, Lee County does not qualify for tier-based tax incentives for job creation because the county has too high an average income level.

Mayor Jim Quinn explained that Leesburg is a Tier 4 community, while Albany is a Tier 1. While Albany qualifies for low-income job creation incentive programs, Leesburg does not.

"Becoming designated a rural zone, however, would provide tax credits for new jobs," Quinn said. "These rural zone incentives could help us as we develop our downtown district, and I am especially pleased that credits are offered for full-time or part-time jobs, since so many of the jobs are just part-time. With this, a business can hire two part-time employees to equal one full-time employee. That's great."

Quinn said he believes small businesses could benefit from some of the incentives offered through the rural zone program.

To be eligible, a city or county applying must have a population of less than 15,000 people, must have a high concentration of historic commercial structures at least 50 years old, must prove economic distress, must be in compliance with state requirements regarding comprehensive planning and reporting, must submit a feasibility study or market analysis identifying business activities that can be supported by the zone, and must submit a strategic master plan.

Quinn said he believes Leesburg meets all of the criteria and it would just be a matter of preparing and submitting paperwork.

"The first step would be to apply and be chosen for the rural zone designation and then to, hopefully, get some of those incentives and tax breaks," he said. "If that happens, it would be a great opportunity for our downtown businesses."

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