Web Site for LLMA Enterprise Zone Applications

Report
DCEO Enterprise Zone Data Assistance Program
Presented by
Sherrie Taylor and Norman Walzer
to
101st Illinois Municipal League Conference
Hilton Chicago Hotel
Chicago, IL
September 19, 2014
Enterprise Zone Data Assistance Program
Purpose of EZ Data Assistance Program
Purpose
• The program identifies the Local Labor Market Area (LLMA) for each Enterprise Zone (EZ) applicant
using the site.
• Based on the LLMA selected, the program identifies and organizes the data and materials needed
for 7 of the 10 qualifying criteria for EZ applications.
– Optional support offered for Employment Opportunities & Tax Base Improvement Plan data on cost recovery basis .
• Applicants are NOT required to use this web site. It is designed to simplify data collection and
tabulation. A frequently asked questions section is used to guide users in the application process.
• This program only provides data needed for the ten eligibility criteria. No scoring is done.
Applicants must submit the materials on paper copy to DCEO by December 31, 2014.
The following presentation provides description and considerations for each criterion.
Automatically Generates the LLMA based on Census
Tracts in the Enterprise Zone
Criteria for selection of LLMA:
1. Census Tracts in which the Enterprise Zone resides.
2. A Census Tract providing 10% of the commuting workforce to the
Enterprise Zone to qualify as part of the LLMA.
3. Flexibility is provided allowing applicants to include additional Tracts
that do not send 10% or more of their workforce to the Enterprise Zone
tracts, or to remove tracts.
Test 1 – Unemployment (Automated)
Rate
County
Pass Test?
Ratio
Tracts in LLMA
Adams
101.00
Adams
102.00
Adams
103.00
Adams
104.00
Adams
105.00
Calculated LLMA Total
Illinois Unemployment
Rate for 2012:9.2%
No
11.2%
Yes
121.7%
No
15.5%
Yes
168.5%
120% of Illinois
Unemployment Rate:
11.0%
No
12.5%
Yes
135.9%
The most recent unemployment rates and figures from the Illinois Department of Employment
Security (IDES) are used by tract and compared to the Illinois unemployment rate to determine the
threshold of 120% or more.
Test 2 – Employment Opportunities
Estimating the economic impact of proposed strategies involves using an
economic impact program. Several programs exist and this page will provide contact
information for agencies willing to provide this service on a cost-recovery basis
(approximately $1,500).
It is not required and there may be other sources where similar analyses can be
obtained.
Test 3 – Poverty (Automated)
Number of people in poverty
and households receiving food
stamps is derived from the most
current five year American
Community Survey data from
the Census Bureau. Those
eligible for the Free/Reduced
Lunch program are reported by
the Illinois State Board of
Education in the Report Card
data.
Test 4 – Abandoned Coal Mine, Brownfield or Federal
Disaster Areas (Partially Automated)
This test, since it involves mines, brownfields and disaster areas
that reside in the enterprise zone, will be done manually by CGS
staff after receipt of the GIS shape file from applicants.
Test 5 – Large Scale Business Closings
(not including federal facility closures)
Tract #
Date
Name of Facility
Employees Impacted
9602.00
12/30/2012
Chrysler
1,225
9602.00
06/05/2013
AVAYA Inc
58
9576.00
06/30/2013
Rotonics Manuf.
600
9577.00
01/03/2014
Menzies Aviation
92
9577.00
01/05/2014
ARAMARK
85
Calculated LLMA Total
2,060
Tract #
State Facility
City
Date
# Affected
9602.00
Dwight Correctional
Dwight
2012-08-31
350
9576.00
Tamms Correctional
Tamms
2012-08-31
300
Calculated LLMA Total
650
Test 6 – Vacant Structures
Industrial and Commercial Structures
Tract # Industrial
Square Footage
Vacant
Vacancy Rate
9872.00
350,000
12,000
3.4%
9876.01
270,000
0
0%
9876.02
58,000
58,000
100%
TOTAL LLMA
678,000
70,000
10.3%
Describe industrial/commercial properties not used because of age, deterioration, relocation of the former occupants, or
cessation of operation. (To be added by applicants)
Test 7 – Tax Base Improvement Plan
The applicant demonstrates a substantial plan for using the
designation to improve the State and local government tax
base, including income, sales, and property taxes.
Information is provided for applicants to contact one of
several agencies willing to conduct a more detailed
analysis of the economic impact at a minimal cost. The
LOCI program generates information on sales, income,
and property tax bases using information provided by
applicants.
(This is an optional arrangement for applicants.)
Test 8 – Public Infrastructure Improvement Plan
Upload 3- Year PIIP or CEDS
for each municipality
and/or county applicant
government
Test 9 – Career Skills Programs
Tract #
School Name
9876.00
Bolingbrook High School
9877.00
Joliet Junior Community College
ACT Work
Keys
Skills Standard
Certification
Test 10 – Equalized Assessed Valuation
The increase in equalized assessed valuation of industrial and/or commercial
properties in the 5 years prior to the date of application in the local labor market area
is equal to or less than 50% of the State average increase in equalized assessed
valuation for industrial and/or commercial properties, as applicable, for the same
period of time as reported by the Illinois Department of Revenue.
If the change in EAV in the State of industrial and/or commercial properties in the 5
years prior to the date of application is negative, then the applicant should instead
demonstrate that the decrease in EAV of industrial and/or commercial properties in
the 5 years prior to the date of application in the local labor market area is equal to or
greater than 50% of the State average decrease in EAV for industrial and/or
commercial properties, as applicable, for the same period of time as reported by the
Department of Revenue.
Test 10 – Equalized Assessed Valuation
• Applicants should contact their respective County Assessor’s office for each County
the Local Labor Market Area resides to obtain this information for the tracts.
• The County aggregated information will be available on the site from the
Comptroller’s office.
• Contact information for all counties will be downloadable for the respective
Assessor’s offices.
% Change in EAV,
Property Class (statewide)
2008-2012
Commercial
-21.0%
Industrial
-15.8%
Commercial & Industrial
-19.6%
Residential
-17.3%
Commercial, Industrial, & Residential
-18.1%
50% Higher Than
Statewide Loss
-31.5%
-23.8%
-29.4%
-26.0%
-27.1%
Prototype prepared by the Center for Governmental
Studies, NIU
# of Counties
Meeting
Threshold
0
4
0
3
0
15
Next Steps
• Web site will go live on 10/1 as www.enterprisezonesillinois.com
• Copies of this power point and other information are available under
Resources on the web site.
• An instructional webinar will be held on October 9 at 12:00 noon.
• Technical assistance on web site usage is available from:
Sherrie Taylor, ([email protected]) or 815-753-0925.
Prototype prepared by the Center for Governmental
Studies, NIU
16
For Additional Information, Contact:
Sherrie Taylor
Norman Walzer
Research Associate
Senior Research Scholar
[email protected]
815-753-0925
[email protected]
815-753-0933
Center for Governmental Studies
148 North Third Street
DeKalb, IL 60115
www.NIUCGS.org
17
Notes
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18
Identify County(ies) Containing the Enterprise Zone
Map available to
visually select tracts:
Select County
Sample County
Select Tracts
101.00
102.00
102.01
102.02
Selected Tracts
101.00
102.00
102.02
Requirements to create an Enterprise Zone:
a) Contiguous Area. The area is contiguous, area has a solid continuous boundary. Boundaries shall be clearly
defined and follow natural or man-made entities such as rivers, highways, and boundaries of units of government. The
zone area may exclude wholly surrounded territory within its boundaries.
b) Calculating Total Area. The minimum is 1/2 square mile and the maximum is 12 square miles, or 15 square
miles if the zone is located within the jurisdiction of four or more counties or municipalities, excluding lakes or
waterways. If the EZ is a joint effort of three or more units of government, or two or more units of government if
located in a township divided by a municipality of 1,000,000 or more inhabitants, and where the certification has been
in effect at least one year, the minimum ½ square mile and the maximum is 13 square miles, excluding lakes and
waterways. Boundaries that are connecting strips shall be not less than three, nor more than 10, feet wide. Waterways
shall not be used as connecting strips.
c) Coverage of Area. The areas must:
1) be entirely within a municipality; or
2) be entirely within the unincorporated areas of a county, except when reasonable need is established for
the zone to cover parts of more than one municipality or county; or
3) comprise all or part of a municipality and an unincorporated area of a county.
Test 2 – Employment Opportunities
Designation will result in the development of substantial
employment opportunities by creating or retaining a
minimum aggregate of 1,000 full-time equivalent jobs due
to an aggregate investment of $100,000,000 or more, and
will help alleviate the effects of poverty and unemployment
within the local labor market area.
Test 3 – Poverty (Automated)
All or part of the local labor market area has a poverty rate of
at least 20% according to the latest data from the U.S. Census
Bureau, 50% or more of children in the local labor market area
are eligible to participate in the federal free or reduced-price
meals program according to reported statistics from the State
Board of Education, or 20% or more households in the local
labor market area receive SNAP benefits according to the latest
data from the U.S. Census Bureau.
Test 4 – Abandoned Coal Mine, Brownfield or
Federal Disaster Areas
An abandoned coal mine or a brownfield (as defined in Section 58.2 of the
Environmental Protection Act [415 ILCS 5]) is located in the proposed zone area,
or all or a portion of the proposed zone was declared a federal disaster area in
the 3 years preceding the date of application. A brownfield site must be listed
in the Illinois Environmental Protection Agency Site Remediation Program
database. More points will be awarded for abandoned coal mines in the
proposed Enterprise Zone that are a priority 1 or 2 site, as determined by the
Illinois Department of Natural Resources, Office of Mines and Minerals, Division
of Abandoned Mined Lands Reclamation. More points will be awarded for
brownfields in the proposed Enterprise Zone that are listed on the U.S.
Environmental Protection Agency's National Priorities List.
Test 5 – Large Scale Business Closings
(Automated from WARN* data)
The local labor market area contains a presence of large employers
that have downsized over the years, the local labor market area has
experienced plant closures in the 10 years prior to the date of
application affecting more than 50 workers, or the local labor market
area has experienced State or federal facility closures in the 5 years
prior to the date of application affecting more than 50 workers.
*WARN = Illinois Worker Adjustment and Retraining Notification Act
Test 6 – Vacant Structures
Based on data from Multiple Listing information or other suitable
sources, the local labor market area contains a high floor vacancy rate
of industrial or commercial properties, vacant or demolished
commercial and industrial structures are prevalent in the local labor
market area, or industrial structures in the local labor market area are
not used because of age, deterioration, relocation of the former
occupants, or cessation of operation.
Test 7 – Tax Base Improvement Plan
The applicant demonstrates a substantial plan for using the
designation to improve the State and local government tax base,
including income, sales, and property taxes.
Test 8 – Public Infrastructure Improvement Plan
Significant public infrastructure is present in the local labor market area in addition to a plan for
infrastructure development and improvement. Applicants shall provide an inventory of the
public infrastructure that demonstrates that significant public infrastructure exists in the Local
Labor Market Area to support economic development at the time of the application. Applicants
shall provide a three-year public infrastructure improvement and development plan for each
municipality and/or county applicant government that provides for large, physical
improvements that are permanent in nature and that are needed for the functioning of the
community, including transportation, utilities, etc.
The plans shall include:
• a listing of the capital improvement projects,
• the plan for financing the projects,
• a timetable for the construction or completion of the projects, and
• justification for the projects.
Test 9 – Career Skills Programs (Automated)
High schools or community colleges located within the
local labor market area are engaged in ACT Work Keys,
Manufacturing Skills Standard Certification, or industrybased credentials that prepare students for careers.

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