by Bradley Parsons
Staff Writer
The City got a boost in its efforts to develop distressed areas at downtown’s fringe when the State agreed last week to expand Jacksonville’s Enterprise Zone.
The decision from the governor’s office allows tenants of three select office parks north, south and west of downtown to apply for tax breaks on hiring and expansion. The expansion covers the North Side’s Imeson Industrial Park, the Phillips/Pine Forest corridor south of downtown and the Westside’s Cecil Field site.
The sites represent three areas high on the City’s wish list for development. The Jacksonville Economic Development Commission has steered several high-profile projects to Imeson and Cecil Field in the last year.
Imeson was selected as the site for Kaman Aerospace’s proposed $20 million expansion and Sears Logistics Services’ proposed 55-acre expansion. Both would likely be eligible for the tax breaks.
Having Cecil Field designated as an Enterprise zone should help the City’s plans to turn the former military base into an aerospace industry park.
Available refunds for capital improvements, equipment and expansion have been the most widely-claimed tax breaks by businesses in the existing Enterprise Zone, which covers all of downtown, said Joe Whitaker, the JEDC’s Enterprise Zone coordinator.
The Phillips Highway corridor was identified by a citizen advisory commission as an area that could most benefit from the tax breaks and the hoped-for development.
“We all saw the potential for the zone to benefit downtown’s development. These were areas that the citizens groups we talked to thought could use some help as well. It was important to them that areas outside of downtown got some favorable treatment as well,” said Whitaker.
The City is still looking for ways to raise awareness of the zone by businesses already operating within. Whitaker estimated about 5 percent of eligible businesses actually apply for the breaks, which could return up to $5,000 on an $83,000 equipment investment. By increasing awareness of the tax breaks, the JEDC could spur development without spending City money on incentives, said Whitaker.
The JEDC thinks the tax benefits could be a particular help to downtown’s small businesses. The commission has searched for a way to encourage small business development, and Whitaker said the Enterprise Zone’s tax breaks for hiring could be big step in that direction if more businesses take advantage.
The JEDC has tried to make the process more accessible. Small business owners often find themselves awash in paperwork and regard the Enterprise Zone’s application process as a nuisance, said Whitaker. The JEDC now allows businesses to apply for the tax breaks on the City’s web site.
Whitaker said the tax savings available is too substantial to be disregarded, especially by cash-strapped small business owners.
“We’re seeing better participation, but some small businesses still have a prejudice about the process that can be a difficult thing to overcome. But savvy business owners are starting to realize this is a way to expand their businesses and save tax revenue,” said Whitaker.