Agenda Notes:
On September 10, Council will be asked to approve a resolution requesting the North Carolina Secretary of Commerce to designate an Urban Progress Zone (UPZ) in Charlotte. This is in accordance with the Article 3J Tax Credit Program approved by the Legislature in 2006, which replaced the William S. Lee Tax Credit Act. Article 3J Tax Credits also replaced State Development Zones with smaller, more poverty-focused Urban Progress Zones.
Tax Credits & Urban Progress Zones:
Article 3J provides certain tax credits to eligible businesses statewide, which can be used to offset up to 50% of the business' state tax liability. Businesses located within a UPZ receive enhanced Article 3J Credits. While Article 3J is administered by the State Department of Commerce, the role of City Council is to request the Secretary of Commerce to designate the zone. Since late 2006, City staff and the Chamber have worked together to develop the proposed zone to maximize the benefits for Charlotte. Article 3J Credits became effective on January 1, 2007; however, staff delayed requesting the UPZ designation until the N.C. General Assembly corrected some technical flaws in the original legislation.
Smaller, More Focused Zone:
Under the legislation, areas designated as UPZ's cannot exceed 15% of a City's area. This constraining factor, along with specific guidelines for drawing a UPZ resulted in a much smaller and more focused zone. Census tracts high in poverty (greater than 20% according to the most recent census) are the primary targets for the new UPZ, but adjacent areas are allowed as long as they have a high level of non-residential zoning (>50%) and do not exceed 35% of the total zone area.
Many areas formerly in the State Development Zone are ineligible for inclusion in the UPZ. As the attached maps indicate, the most noticeable differences are in North and East Charlotte. These areas are still eligible for tax credits, but not at an enhanced level. The new criteria allow us to include census tracts near the airport which are attractive sites for headquarters and warehousing companies.
Attached are the maps of the proposed UPZ and the former State Development Zone, as well as a summary sheet for the Article 3J Tax Credit Program. Staff is available to answer any questions you have prior to the September 10 Business Meeting.
Information Items:
Council's Community Safety Committee has been discussing the issue of amending the city ordinance regarding peddlers to include door to door solicitors. The Committee requested a review of the issue in response to citizen complaints regarding door to door solicitors in neighborhoods.
A staff review of the issue identified two options: amending the peddling ordinance to include solicitors, thus requiring them to have a permit to solicit, or educating the public on ways to deal with solicitors.
A number of issues emerged during the discussions:
- There is no evidence of a crime problem related to door to door solicitations
- There is no way to accurately document the magnitude of the problem; it may vary by neighborhood and may be seasonal
- Non commercial solicitors (charities, political organizations, etc.) are protected under the First Amendment and are likely the majority of the solicitors in the area
- Requiring permits for solicitors would create workload issues for the County Tax Office which issues the permit
- Arrests of individual solicitors for not having a permit does not reach the company employing solicitors
- Arrests of solicitors for not having a permit could be time consuming for police, keeping officers from working on more significant problems
The Committee accepted a staff recommendation to address the issue through community education for the time being. Police community coordinators will talk with neighborhood associations regarding several options:
- Placing No Trespassing signs at driveways or front doors
- Not answering the door or purchasing products from solicitors
- Calling 911 if an individual in the neighborhood displays behavior that makes him appear to be a suspicious person
Tips may also be placed on CMPD's website, in water bills, or provided by 311 call takers.
In April 2007, CMPD added a call category that relates specifically to solicitors. The committee will reevaluate this issue in April 2008 when CMPD has a year of data that may provide a better sense of whether door to door solicitations are a significant problem.
Public/private municipal WIFI initiatives across the country have begun to encounter significant financial and operational issues in the last several months which is an indicator that perhaps the business model of collaborative public and private initiatives is not sound. Cities such as San Diego, Houston, Denver, San Francisco, Milwaukee and others have stepped back from their original plans as their partner, EarthLink Municipal Networks, restructures and lays off approximately 50% of their workforce.
In the same timeframe, the Community WIFI Committee has also completed its process of examining the business case for a partnership in Charlotte with a recommendation to not move forward in seeking a public/private partnership here. The committee represents Charlotte,
Mecklenburg County, Duke Energy, UNC-Charlotte, and the Chamber of Commerce.
The Restructuring Government Committee voted unanimously to defer further staff action in pursuing a private partner at their August 30, 2007 meeting, with staff to maintain monitoring of the WIFI marketplace in order to take advantage of specific applications of wireless technology that may not require a full system build out.
Dunkin Donuts opened in the last week of June. Bellacinos Pizzas and Grinders will open no later than the week of September 10th. This restaurant will occupy slightly over 4,100 square feet and will serve alcohol. The franchisee has another location in Harrisburg. A Request for Council Action for the remaining space will be on the September 24th City Council agenda.
