- Nephi City will reapply for designation as an enterprise zone
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By Rebecca Dopp
Times-News Correspondent
The Nephi City Council adopted a resolution supporting the re-designation of portions of Nephi City as an enterprise zone by the State of Utah for economic development activities.
"Portions of Nephi City were designated as an enterprise zone in 2009," said Randy McKnight, city administrator. "Based on the council's authorization, we made application to the state and the state approved that designation. Those approvals are only given for a five-year period and then you have to reapply."
The council was asked to consider adopting the resolution supporting the application for the renewed designation.
The Utah Enterprise Zone Program was established in 1988. An enterprise zone comprises an area identified by local elected and economic development officials and designated by the state. Under the program, certain types of businesses locating to, or expanding in a designated zone may claim state income tax credits provided in the law.
Any city or county in the state of Utah may be eligible for enterprise zone designation. Application must be made by a city with 10,000 or less population located in a county with 50,000 or less population, or an Indian Tribe for tribal lands. Applications are reviewed and approved on the basis of economic development need, its quality, and other considerations based on a variety of economic distress factors.
"It's a good program," said Brent Boswell, city and county economic development director. "It's one of those things that when companies ask, 'What can you do for us if we do move there?', this is one of those items we can offer to them."
He said that the state will do quite a bit to attract commercial growth particularly through job creation or remodeling an old building. The state will give an income tax credit at the end of the year that does not affect the city's coffers.
The county also has enterprise zones and also has to reapply every five years.
Some of the areas that are currently designated enterprise zones in the Nephi area are mostly on the extreme north and south of town, east of the golf course, and a few areas near the fairgrounds and railroad tracks. A complete map can be found at mapserv.utah.gov/enterpriseZones/
"Did any businesses come because we were an enterprise zone?" asked Lisa Brough, council member. "Did we have any in those five years?
Boswell said that they anticipated that the businesses would come because of the designation or if they were already here, they would expand. He said that there were a few that came in the last five years, but that it was between the business and the state tax commission.
He said that for grants the businesses have to go through the economic development department to apply, but with this program they don't. He said that his department makes these businesses aware of the program.
"What it does is give rural Utah an advantage," he said.
If Nephi chose not to reapply, then the businesses wouldn't have this opportunity, said Mayor Mark Jones.
"We'd find out who was using it if we took it away," said Boswell.
The resolution says that "whereas Nephi City is currently experiencing significant industrial growth associated with the overall economic prosperity of the State of Utah and its advantageous geographic location; and whereas this growth creates both challenges and opportunities for a community seeking to promote economic vitality while sustaining its quality of life; and whereas Nephi City is eligible to submit an application for designation as a Utah Enterprise Zone; let it be therefore resolved that Nephi City Council hereby supports the submission of Proposal for Enterprise Zone Application for Nephi City to the Governor's Office of Economic Development."
A copy of the application will remain on file with the Nephi City Recorder.
The council approved the resolution.
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