DDA Moves to Apply for Rural Zone Designation, Citing Limited Window

The Trenton Downtown Development Authority voted Feb. 19 to move forward with applying for Georgia’s Rural Zone designation, a state program that provides targeted tax incentives for investment and job creation in small-town downtown districts.

The item was added to the agenda during the meeting and approved as part of new business. Members agreed the designation should be pursued, with the DDA gathering information for the application and the city of Trenton itself submitting the application, pending city approval. 

President and CEO of the Alliance for Dade Sandy White told the authority the Rural Zone program is funded by the legislature, and there is some urgency surrounding the application, as it may not continue beyond the current cycle.

“From what I understand from the state level, this year will be the last year you can apply,” White said.

The Rural Zone program targets downtown areas that have experienced economic decline. If approved, the designation lasts five years and allows qualifying businesses and investors to claim three types of state tax credits: a Job Tax Credit, an Investment Credit and a Rehabilitation Credit.

The Job Tax Credit provides $2,000 per new full-time equivalent jobs per year for up to five years. The credit cannot exceed $200,000 total or $40,000 per year. To qualify, a business must create at least two new full-time equivalent positions within the designated zone.

The Investment Credit equals 25 percent of the purchase price of a building within the downtown district, capped at $125,000 total or $25,000 per year. The Rehabilitation Credit equals 30 percent of qualified rehabilitation expenses, capped at $150,000 total or $50,000 per year. Both require the creation and maintenance of at least two new full-time equivalent jobs.

White said the credits are designed specifically for downtown commercial districts, not industrial parks or areas outside city limits.

“Rural Zone designation is really the only way you can get state tax credits that will help small businesses like retail businesses that have two or more employees,” she said.

According to materials provided at the meeting from the Georgia Department of Community Affairs, eligible communities must have a population under 15,000 and demonstrate economic distress through poverty rates, vacancy or blight in the downtown area. Communities must also submit a feasibility study or market analysis identifying business activities that can be supported in the zone, along with a master or strategic plan to guide investment.

The program is administered jointly by the Department of Community Affairs and the Georgia Department of Economic Development. Both groups review Rural Zone applications, and the Department of Community Affairs administers the program for approved areas.

White referenced her previous experience working in Hawkinsville, where the city secured a Rural Zone designation and saw multiple downtown properties renovated using the available credits.

“It works,” she said, describing how one investor rehabilitated several long-neglected buildings after the designation was approved.

Authority members indicated the limited timeframe makes the Rural Zone application the board’s immediate focus.

The authority also discussed the possibility of pursuing a larger streetscape grant that would fund sidewalk improvements, landscaping and potentially underground utilities along the downtown corridor.

Board member Jon Wylie said he would be willing to help explore that option, noting interest in long-term improvements to the downtown area.

“If we’re going to do it, do the whole thing,” White said of any potential streetscape effort, cautioning that such projects often take several years from planning to construction and require both city and county financial participation.

Industrial Development Authority Executive Director Evan Stone said early conversations with city and county leadership would be necessary before any formal application for streetscape funding could move forward.

While the streetscape discussion remains ongoing, members agreed the Rural Zone application will take precedence due to the narrowing application window.

Caption: DDA Chair Wesley Bethune and DDA members Larry Moore and Jon Wylie at the Authority’s recent meeting. The DDA is exploring additional ways to attract businesses to downtown Trenton.