Wednesday, February 20, 2013

The Enterprise Zone

Comment Up

Hey, it's all about economic development. What the heck.  Why not?  Right?

On July 3, 2012, City Commission approved Resolution No. 27-2012, finding an economic need within the City to create an enterprise zone. It authorized staff to proceed with the application process for the creation of an Enterprise Zone. The City Commission adopted Resolution No. 27-2012 because it determined that an area exists in the city which chronically exhibits extreme and unacceptable levels of poverty, unemployment, physical deterioration and economic disinvestment as defined and measured pursuant to section 290.0058, Florida Statutes. This area was never identified.

Last night the city commission voted unanimously to create an Enterprise zone and turn over more of its powers. The zone will be in a mysterious area of the city as the zone was not mentioned or even discussed, in order to stimulate economic development.  It is to incentivize and induce private investment in distressed areas in order to restore the economic productivity of such areas and to create economic opportunities.

It was mentioned that our city is the second poorest city in Palm Beach County and therefore it needs a bunch of help. The question I have is, in July they had an area in mind and last night that area was never discussed. Why? Therefore, it can't be the Mayor's dream of a hotel district. That is not a depressed area of our city. It could possibly be the Park of Commerce because as poor as we are, we can't afford paying even for the infrastructure that is needed in order to develop it.  I suppose this new Board could declare the entire commercial/industrial/mixed-use areas of our city enterprise zones and therefore include the block from Federal to Golfview even if it isn't depressed.  What member of the board would be a citizen at large from that area?  The mobile home park on Boutwell is destined to disappear if government has anything to do about it.

The primary disadvantage of a tax-free enterprise zone is that the businesses operating in the zone will not pay taxes or will only pay a reduced amount. This will cause a big reduction in potential revenue to the city.  Businesses that locate into a tax-free enterprise zone will also have an unfair advantage over other existing local businesses located outside of the zone.

The City will be paying for the  Board's overhead  consisting of 9 members including one citizen at large who lives in the enterprise zone. The city will pay for travel expenses. It will pay for staff.  The city commission will have little say on the decisions made by this board.  The Board will be able to borrow money and make loans. It will be able to execute contracts, something the mayor does by our Charter and by electing her, we want her to do. It will be able to procure insurance and bonds against losses and it will have the powers to assist businesses within the zone. One thing that they will do is to investigate laws that are barriers to their objectives in order to circumvent them to achieve their ends.

Where is the zone? Are there any other enterprise zones  in PB county that we would be competing with? Why would a commission, once again, give up its powers to an appointed Board? What cost will the city have to bear for formulating such a board? If a loan goes unpaid, is the city responsible to pay it back or is it the federal or state government? While enterprise zones were originally intended to provide tax incentives to businesses for locating in impoverished neighborhoods, virtually all state programs have changed their zone designation rules to permit the designation of non-distressed areas as enterprise zones.  Has Florida? Will you be living in an Enterprise Zone?

We have already seen what the CRA has accomplished...little, although they brag about spending $23 million. When the Lucerne condo was built, the CRA gave the developer $1.2 million over a 10 year period from taxes generated by the building. A former commission made a big mistake taking $5 million in bond money that the property owners  have been paying for all these years and gave up control of our beach to Palm Beach County for 30 years just to redesign parking lots and roads that are worse than before.  Are we now going to give up control of our commercial/industrial areas or whatever areas this board declares enterprise zones? Sometimes "free" money and incentives are not free.

Although it was not explained very well last night, Vice Mayor Maxwell wants to have a workshop to inform us after the fact. I am sure that he will explain why giving up tax revenue is well justified to attract economic development and well justified for this Board to be able to take out loans to pay for it all and why we don't have a pot right now to...fix those holes.

10 comments:

  1. "One thing that they will do is to investigate laws that are barriers
    to their objectives in order to circumvent them to achieve their ends."

    Just like the League of Cities
    (LOC) does and many other NGO's
    or Non Governmental Organizations.

    PBC LOC Executive Committee:
    Scott Maxwell, 2nd Vice President
    Vice Mayor, City of Lake Worth
    Vice Mayor Maxwell joined the League's Board of Directors 2010.
    Committees: Policy & Procedures - Chair/Education - Chair/ITE
    Task Force (It's The Economy
    Task Force...stupid?)


    LOC - Legislative Affairs for 2013

    Florida Sunshine Law & Ethics

    "The League of Cities will
    support legislative
    exemptions to the Florida
    Sunshine Law, which can
    exempt local governments and
    advisory committees in matters dealing with criminal justice procedures and sensitive
    Business Development
    incentivization packages as
    appropriate.

    The League will support
    legislation clarifying
    the Sunshine Law as it
    pertaines to advisory
    boards and committees,
    thereby allowing and
    encouraging participation
    by elected officials
    and the general public."


    Economic Development

    "The League of Cities will
    support legislation dedicating
    state economic development
    resources towards small
    businesses, emphasizing
    technical assistance, access to
    capital, public infrastructure
    and urban infill, recognizing
    that 89% of all businesses in
    Florida have 12 employees or
    less."

    Enough said...

    http://www.leagueofcities.com/priorities

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  2. "The primary disadvantage of a tax-free enterprise zone is that the businesses operating in the zone will not pay taxes or will only pay a reduced amount. This will cause a big reduction in potential revenue to the city."----to quantify that---isn't the number $0.00?
    Why are you worrying about a small portion of a big non existant number.
    Do you really not understand the positive nature of new jobs and sales tax revenues of goods and services required to support the new business?

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  3. Yeah, I get that, anonymous. It is the "non-existent" number that I am concerned about because we have not been told what it will cost us to have this board. What is the yearly budget? Etc., etc., etc. Let's just create a board, for some area in this city yet to be determined, to attract business development that may or may not come, etc., etc. etc. The city needs to fill in all the blanks.

    ReplyDelete
  4. Do you really not understand nature and natures laws?

    One kid gets a Popsicle and they ALL want one. (My dad said it was rude to eat one in front of someone if you didn't have enough to share.)

    These theories they come in w/are NOT producing new jobs and sales tax revenues of goods and services required to support the new business!

    HUD even recognizes the problems, how is that hard to understand?

    Bureaucracy has no breath or brains nor any authority to decide who are the winners and losers.

    Plus what are we teaching here -
    fill out a form and get some free stuff. Please explain how that is remotely called sustainability?

    They should look forward to a time, and that not a distant one, when corruption in this, as in the country from which we derive our origin, will have seized the heads of government, and be spread by them through the body of the people; WHEN THEY WILL PURCHASE THE VOICES OF THE PEOPLE, AND MAKE THEM PAY THE PRICE. Human nature is the same on every side of the Atlantic, and will be alike influenced by the same causes. The time to guard against corruption and tyranny, is before they shall have gotten hold on us. It is better to keep the wolf out of the fold, than to trust to drawing his teeth and talons after he shall have entered. ~ Thomas Jefferson

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  5. Why, so the anti everything crowd can start attacking anything positive it may bring?

    You all are doing a great thing by discouraging any business from coming here.

    Anti heights for hotels in the hotel district.

    Anti CRA initiatives.

    Anti volunteering to help city sponsored events.

    Anti Enterprise Zone because it might just attract business.

    Anti home owner occupied housing in our deteriorating neighborhoods.

    Anti spending $23 million dollars in our city instead of elsewhere.

    Anti selling our electric utility even if it means lower utility bills for everyone..... especially .... wait for it..... that's right.... businesses.

    That's why the moniker CAVE Citizens Against Virtually Everything

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  6. LOL
    You can't see the forest for the, oops, free stuff.

    Do you have any clue as to why we are 16.5 TRILLION DOLLARS IN DEBT?

    What ever happened to businesses that used to have great products that people wanted to buy...went out and took out a loan and started without free hand-outs? What ever happened to that? We are all so used to special favors at the expense of someone out there. Is this just trickle up poverty?

    Just give me the details so I can make a fair judgment.

    ReplyDelete
  7. Once again you have no idea what ou are talking about. (If you even wrote the article).
    Cities/states have been giving out incentives for businesses to move for years. Your conservative hero Rick Perry was just out in California promising huge incentives to companies to move to Texas. Oother cities in Palm Beach COunty that are much better of financially than Lake Worth have been providing incentives to lure companies for years.
    You need to do some research (if you even wrote this article).

    ReplyDelete
  8. Who wrote it? You think it stupid but then you don't think I wrote it. So if I didn't write it, someone else didn't know what in hell they were talking about. Since I wrote it, you just don't get anything I said. Are we supposed to accept everything like a blind puppet Is that your theory of representative government? I asked for the details, friend.

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  9. Lake Worth has the Park of Commerce
    a valuable property which not one Commission has been able to develop,into an ENTERPRISE ZONE!
    A Citizens had created a viable plan for such Zone in that Park of Commerce, immediately voted own by the idiots.spouting excuses for their total stupidity , lack of business savviness and vision. Lake Worth's park of Commerce is A perfect Enterprize Zone!I would market it with innovative methods ,I know one natural candidate business)and find immediate developers who would build tax revenue generating businesses. But one cannot be stupid!Primiveness and rudeness to Citizens does not cover up the lack of ability to create businesses with revenue creation.The criminally stupid have always wanted to destroy the most attractive part of Lake Worth:its' cozy,friendly intimate small low-rise Downtown and Town's architecture,
    Florida generates billions in tourism dollars because of beautiful Old Florida,
    not to look at ugly,non descript condos,sad concrete boxes for human storage.Boxes of two wall separated by sliding door for access of day light, like in penitentiaries.That is not what attract people and tourims to Florida,and Lake Worth is a prime example fo reason for coming to Florida.Why did the commentators come to Florida?To look at condo's,concrete boxes without character for human storage???
    The present element is not excelling in business savvy either.It wants to destroy the character of Lake Worth ,its' intimate architecture and as a result created warm friendly athmosphere.It does not know and understand it or expects kick back from developers, the usual reason.
    when a govt. is not representing the people they can go to referendum to correct the rude primitives.

    ReplyDelete
  10. Just found this goodie!
    Like the research sources!

    There is an unknown government in
    California (and Lake Worth).

    This unknown government currently
    consumes 10% of all property taxes statewide
    — $2.9 billion in 2004.
    It has a total indebtedness of over $61 billion.
    It is supported by a powerful Sacramento lobby and backed by an army of lawyers,consultants, bond brokers and land developers.

    Unlike new counties, cities and school
    districts, it can be created without a vote of the citizens affected.

    Unlike other governments, it can incur
    bonded indebtedness without voter approval.

    Unlike other governments, it may use the power of eminent domain to benefit private interests.

    This unknown government provides no
    public services. It does not educate our children, maintain our streets, protect us from crime, nor stock our libraries

    It claims to eliminate blight and promote economic development, yet there is no evidence it has done so in the half century since it was created.

    Indeed, it has become a rapidly growing drain on California’s public resources, amassing enormous power with little public awareness or oversight.

    This unknown government is
    Redevelopment.

    It is time Californians (and Lake Worthians) knew more about it.

    State law allows a city council to create a redevelopment agency (Enterprise Zone's too) to administer one or more “project areas” within its boundaries.

    An area may be small, or it can encompass the entire city.
    (Just like 3.5.13 Enterprise Zone Approval MIGHT do - or so we've been told)

    These project areas are governed by a
    redevelopment agency with its own staff and governing board, appointed by the city council.

    Thus, an agency and city may appear to be one entity. Usually city councils appoint themselves as agency board members, with council meetings doubling as redevelopment meetings.

    Legally, however, a redevelopment
    agency is an entirely separate government authority, with its own revenue, budget, staff and expanded powers to issue debt and condemn private property.

    ReplyDelete