Duluth Initiating, Revisiting Economic Development Incentives

Now that the economy seems to be reviving, Duluth city government and staff are initiating and revisiting economic development and redevelopment incentives.

The Duluth City Council authorized staff to file an application with the Georgia Department of Community Affairs to create a Duluth Opportunity Zone at its June 10 meeting.

Several anticipated developments in the downtown area and others in the zone could benefit from this designation.

There are 288 eligible parcels in the proposed Duluth OZ, which extends outward from Buford Highway and Pleasant Hill Road. (See map.)

Companies that locate in the zone and create at least two jobs get a $3,500 Georgia income tax credit per job. A large business creating 500 jobs for five years could receive $89,750,000 in tax credits. A small business creating 10 jobs for five years could earn $175,000 in tax credits.

The process of designating the zone should be complete by January 2014, according to Duluth Economic Development Manager Chris McGahee.

Also at its June 10 meeting, the council authorized Bleakly Advisory Group Inc. to start preparing an amendment to the city's Tax Allocation District (TAD) at a cost of $12,900. The TAD is located along the Buford Highway corridor extending north and south from its intersection with Duluth Highway,

TADs encourage redevelopment and provide funds for infrastructure improvements.

The amendment would reduce the size of the district from 444 acres to 110 acres, focus on more immediate redevelopment opportunities, reset the valuation base, and seek Gwinnett County and school district consent to a much smaller TAD focused around downtown Duluth. (See maps.)

Duluth Planning Director James Riker updated the council on the TAD amendment progress during the council's July 22 work session. 

Some changes in the proposed OZ and the amended TAD may be made based on input from city council members and others.

Duluth also has agreed to seek approval of Census Tract 502.17 as a Less Developed Census Tract through Partnership Gwinnett. This designation allows benefits similar to an Opportunity Zone, but not as extensive.

This tract runs along Buford Hwy from Hwy. 120 to Old Peachtree Road in Duluth. Companies who locate in this tract are rewarded with tax credits for creating jobs. A company that creates at least five jobs could receive a $3,500 Georgia income tax credit per job.

Partnership Gwinnett is seeking this designation from the Georgia Department of Community Affairs for census tracts in Lawrenceville, Suwanee, Duluth, Norcross and Peachtree Corners. 

The council authorized the mayor to sign a participation letter at its July 8 meeting. Partnership Gwinnett will market the properties.

This tract, which abuts the proposed Duluth Opportunity Zone, includes vacant land along Sugarloaf Parkway available for potential development.