Res 153-2015
Transcription
Res 153-2015
COUNTY COUNCIL OF WICOMICO COUNTY, MARYLAND 2015 Legislative Session Legislative Day No. 20 Resolution No. 153-2015 Introduced by: The President of the Council at the request of the County Executive RESOLUTION TO AUTHORIZE AN APPLICATION FOR THE RENEWAL OF THE CITY OF FRUITLAND-WICOMICO COUNTY ENTERPRISE ZONE. WHEREAS, Maryland's Enterprise Zone Program Is "a joint effort between the State and local governments to provide tax incentives to businesses and property-owners located in some of the State's most economically distressed communities"; and WHEREAS, the City of Fruitland and Wicomico County created an Enterprise Zone In 1995 for the purpose of encouraging development of the area encompassed within the boundaries of such zone; and WHEREAS, the Enterprise Zone is located within the corporate limits of the City of Fruitland, but includes a parcel contiguous to the City of Fruitland that Is within Wicomico County, but not within the City of Fruitland; and WHEREAS, the City of Fruitland and Wicomico County wish to renew the Enterprise Zone In order to Improve the economic development potential within the boundaries of said zone. NOW, THEREFORE, BE IT RESOLVED, by the County Council of Wicomico County, Maryland that the application for the renewal of the City of Fruitland-Wicomico County I Enterprise Zone, In substantially the form attached as Exhibit" A", Is hereby approved. Done at Salisbury, Maryland, this 61h day of October, 2015. ATIEST: ~-~ COUNTY COUNCIL OF WIC MICO COUNTY, MARYLAND Matth w E. Creamer, Council Administrator CERTIFICATION ~dopted with Amendments ----' Failed _ , Withdrawn _ This Resolution was Adopted County Council on October 6, 2015. ~..t~ Certlfledby Maftrl; E.Creamer. Council Administrator by the COVER SHEET Name of Local Jurisdiction: Name of Proposed Zone: City of Fruitland Wicomico County Fruitland Enterprise Zone Nature of Application: Redesignation I Renewal of Existing Zone Approximate Land Area: 111.58 Acres Eligibility Criteria: Unemployment Criteria Contact for further information: John D. Psota, City Manager(</~ P~ 401 East Main Street P.O. Box F Fruitland, MD 21826 Tel: 410-548-2809 Fax: 410-548-7450 Email: jposta@cityoffrui tland.com Authorized Signatures CITY OF FRUITLAND 401 EAST MAIN STREET P.O. ORA WER F FRUITLAND, MARYLAND 2182~120 '1 ~ U:l'IIO\E: ~IU-5-IS-21lll \I>:\II'- ~A.\ : ~~~J....~?.tq_J Jo.\\: ~10-!411-U..._. ~l,,\\0 UAKI.lNl HRK. Prcs1dcnt GLORIA J ORTil, Treasurer RA \'MO"lO ll C \RE). Counc1lor ROL\NO II I' \l Ml RSR. Counc lcr CIIARilS 1\ICIIOI S, C'ounc1lor JOIIX D 1'\0H. C1ty M:magcr KAYE l·LLLN fllmt.\S. Cuy ClcrL MAR" I> S\\ liT, lkpul) Treasurer MICI!r\ll J 1'111 U IPS, Ch1cf of Po ICC MICHAl LGIBBO'I~. l'ubhc \\ .1rl.:s llin."ttor RO~Al !l PCI~LLWSKI., Code lnf,1rccmcnt Ofc ANDRE\\ C. ~IITCIII' Ll. JR, C11~ SJI citllr September 15, 2015 County of Wicomico, Maryland Attention: County Council President John Cannon P.O. Box 870 Salisbury, MD 21803-0870 Re: City of Fruitland Enterprise Zone Rcdesignation Application Dear Council President Cannon: Please accept the enclosed enterprise zone application for the redesignation of the Fruitland Enterprise Zone. We request redesignation of our enterprise zone consisting of approximately ttl acres which expired June 2015. Redesignation of this zone will enhance our ability to recruit new industry and corporate operations to the City of Fruitland, Wicomico County and Maryland. Thank you for your consideration and for your partnership in our cooperative economic development initiatives. ~..,._... ~ .............. /carlene Kerr City Council President DK/Ijp Enclosure COUNTY EXEC EXHIBIT I t1 ENTERPRISE ZONE APPLICATION CITY OF FRUITLAND & WICOMICO COUNTY, MARYLAND Fruitland Enterprise Zone Submitted: September 15,2015 Application for Rcdcsignation of State Enterprise Zone City of Fruitland- Wicomico County, Maryland Table of Contents Sections Expression of Consent: Resolution of County Council ........••....••.........................................................................••. Written Confirmation for a State Priority Funding Area Determination (Map Attached) ...••....•......•................... Documentation of Eligibility ............••..•..•........•............••.......................................................................................•.... Maps: Enterprise Zone Map, Vicinity Map, Tax Map Parcel Listings and Identification of Properties ....................................................................•..•.•.............................. Enterprise Zone Certified Businesses list ................................................................................................................. Other Maps: Zoning Map and Map Showing Statistical Area of Eligibility (Census Tract 105.2.) Written Narrative ......................................................................................................................................................... Goals & Objectives, local Standards and Education & Training Opportunities .................................................... Management of Zone .................................................................................................................................................. Enterprise Zone Acreage Justification ....................................................................................................................... Evidence & Certification of a Public Hearing: Public Notice, Attendance list & City Resolution of Support Evaluation of History and Benefits ............................................................................................................................. Strategy of the Zone .................................................................................................................................................... Comparison of Economic Strategy for the Redesignation with that of Existing Zone ........................................ Fruitland's Merits ......................................................................................................................................................... Miscellaneous: Planned State & Local Capital Improvements to the Proposed Zone ......................................... Lally Hogan. Governor David R. Cra1g, Secretary Wendi W. Peters, Deputy Secretary Boyd K. Rutherford, Lt. Governor Maryland Department of Planning To: Ms. Linda J. Powell From: Ms. Melissa Appler Date: August 10, 20 15 Subject: Enterprise Zone- Priority Funding Area Determination I. JURISDICTION: Wicomico County, Maryland 2. PROPERTY NAME, ADDRESS: City of Fruitland Enterprise Zone The parcels included in this determination are provided in the accompanying map, outlined in red and identified in the map legend as "Enterprise Zones." 3. PRIORITY FUNDING AREA STATUS: The properties outlined in the attached map are "IN" the Priority Funding Area certified by Wicomico County and/or the City of Fruitland meeting the mapping criteria in the Annotated Code of Maryland, Finance and Procurement Article § 5-78-02. 301 West Preston Street - Suite 1101 - Ba!t more ~ Maryland • 21201 Tel: 410.767.4500 - Toll Free. 1.877 767.6272 - T1Y users: Maryfand Relay - Planning Mary and.gov f'Z.2I CHy of Frullland Enterprise Zone ' //.: Heritage Area In Locally Designated Growth Areas 0 Parcel PFA Munldpal PFA Q Munldpel PFA Comment Area Annexed but not PFA (3 PFA Comment Area I 0.15 0.075 I 0 I 0.15 Miles Eligibility Requirements for an Enterprise Zone The City ofFruitland and the portion of Wicomico County which make up the Fruitland Enterprise Zone meet the criterion for enterprise zone eligibility under the Unemployment Rate Area requirement. Under this requirement, the area in which the zone is located must have an unemployment rate greater than 8.95%. Using the Unemployment Rate (ACS) American Community Survey - 2013-5 year estimates (S2031 ). Based on Census Tract 105.02, Wicomico County, Maryland, the adjusted 18 mos. ratio ofCT to County Unemployment rate is 11.06%. (Please see attached) UE Rate must be greater than 150% of US UE Rate US Unemployment18-Month Average (Jan 2014- Jun 2015) = 5.967% Must be greater than 8.95°/a Geography Census Tract1, Wicomico County, Maryland Census Tract2, WICOmico County, Maryland Census Tract 3, Wicomico County, Maryland Census Tract4, Wicomico County, Maryland Census TractS, Wicomico County, Maryland Census Tract101.01, Wicomico County, Maryland Census Tract 101.02, Wicomico County, Maryland Census Tract 102, Wicomico County, Maryland Census Tract 103, Wicomico County, Maryland Census Tract104, Wicomico County, Maryland Census Tract 105.01, Wicomico County, Maryland Census Tract105.02 , Wicomico County, Maryland Census Tract106.03, Wicomico County, Maryland Census Tract106.04, Wicomico County, Maryland Census Tract106.05, Wicomico County, Maryland Census Tract106.06, Wicomico County, Maryland Census Tract 107.01, Wicomico County, Maryland Census Tract 107.02, Wicomico County, Maryland Census Tract 108, Wicomico County, Maryland Unemployment Rate (ACS) 11.9 17.2 32.3 12.7 10.1 6.9 14.2 20.6 5 10 5.3 15,4 7.2 10.4 5.9 5.2 7.3 12.5 9.9 WICOMICO County UE Rate (ACS) 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 Ratio of CT to County UE Rate 113.33% 163.81% 307.62% 120.95% 96.19% 65.71% 135.24% 196.19% 47.62% 95.24% 50.48% 146.67% 68.57% 99.05% 56.19% 49.52% 69.52% 119.05% 94.29% County 18-mos average (DLLR) 7.54% 7.54% 7.54% 7.54% 7.54% 7.54% 7.54% 7.54% 7.54% 7.54% 7.54% 7.54% 7.54% 7.54% 7.54% 7.54% 7.54% 7 .54% 7.54% Adjusted 18-mos CTUE 8.55% 12.35% 23.19% 9.12% 7.25% 4.95% 10.20% 14.79% 3.59% 7.18% 3.81% 11.06% 5.17% 7.47% 4.24% 3.73% 5.24% 8.98% 7.11% Eligible YIN FALSE YES YES YES FALSE FALSE YES YES FALSE FALSE FALSE YES FALSE FALSE FALSE FALSE FALSE YES FALSE v I Data Extracted on August 5, 2015 "US UE Rate": BLS· CPS Labor Force Statistics "Unemployment Rate (ACS)": American Community Survey-2013-5 year estimates (52031) "Wicomico County UE Rate": American Community Survey-2013-5 year extimates (52031) "Ratio of CT to County UE Rate": Divide Census Tract Level Unemployment "Unemployment Rate (ASC)" by "WICOMICO County UE Rate (ASC)" "County 1 8-mons average (DLLR}" : Maryland Department of Labor, Licensing and Regulation "Adjusted 18-mos CT UE": Census Tract level unemployment rate after the small area adjustment-apply "Ratio of CT to County UE Rate" to "County 18-mos average (OLLR) ,,.·· ..,''f\'"' '-"~>&V-"<..' :. ·~4·, \..;..---; ~-- "-~~,~ ~ · / ·{.'1~/(" ::-;: "" ' \ ~ - ·•. )~ ~·~\~'9:,:3~~·~1,{·:-.:~>:\ ·~ ··\/.•: r ~ " 'P·' \ ~ ·~?,"1' ·~ )!. · -'J •.. • 1._ 1.;.0 .,., • '""· ·····"-·" '"~"'V/' .., r :~!~·~~·-· · t; ~:,4' ~ .. -;'! 1 z ~ou 0 n. _, .. 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' -..:; \ - - •~ •....: :H~IVr,'l·n'1':\: ....U. ~§. .~ \.~\ : ~J J:J 'l:t.l> - ..., ...• 1 • ·•79 ...... .,. ~ 1 . ' ·.. .-.............. -- ••••• . • ' \ l- • ~·· ' . u . ~ ,.,_ \ -:. \ _ ... .--r:--. ~ ' .,· ••..., 1'·~·...:..0.·• ., -- ·l''- •. .,'• . . . \ "\ /•""""~:'"" .~ /-=t.. l ...·" - ·~ . f ·:.., \ ... \ \ •\ \ ~<y: !' /f., \,\ ..' ~~-~. '•V"·~~'V /•· ...'\ ~ 1 -\" \ \ {~• .. .. . • ,/ /\ / · ' ....~ ... "-?";....... ·---..:J - / .::7 7/ \ ~pASS .- _.... - _::e::---~·~l City of Fruitland Enterprise Zone - D ·. l o t' "'\. t ' ·I tl'i~l • .,. , • / I Enterprise Zone City of Fruitland Corporate Limits 1000 2000 3000 F..C ,....,_,"...:;...~l!P-!.'_.J,=============::============~ Vicinity Map The zone includes three improved properties. Parcel 679 is improved with warehousing facilities and several small business locations. Parcel 681 has been subdivided into four lots, two of which have been improved with warehousing facilities filled to capacity. Parcel 93 is improved with a I 60,000 sq. ft. facility that is houses several businesses, to include a manufacturing operation and its space is filled to capacity. Parcel 122 is undeveloped. The Fruitland Enterprise Zone is close to area amenities and serves as a "gateway" to the entire community. .. :: - :: I .... .. .. . ... ~;: !.s ~ ~ § 0 ~ § .. ~ \ \ \ ----·-·-- ·--· / .-· \ I -- 7 l 0 !. I ~ ~ ~~~ ~~. ~ ilill i Jl~ i 1:: a lli!l IIIII ;;~ l'ia~ 0 Fruitland Enterprise Zone Properties [Wicomico County, Maryland] Property Descriptions/Owners & Addresses/Locations Map 804, Parcel679 Tax ID# 16-011312 5.45 AC Peninsula Leasing, LLC 404 lrl Lane Fruitland, MD 21826 [317-321 S. Division St.] Map 804, Parcels 681 Tax ID#16-019933 Lot A1, 3. 72 AC TCB Development, Inc 319B S. Division Street Fruitland, MD 21826 [404-A-H, lrl Lane] [400-408 S. Brown St.] Fruitland Business Park Fruitland Business Park, lnc./TCB Development Inc Tax ID#16-019585 319B S. Division Street Lot A4, 9.73 AC Fruitland, MD 21826 Fruitland Business Park Fruitland Business Park, Inc. Tax ID#16-019585 P.0. Box 1594 Lot A3, 1. 71 AC Salisbury, MD 21802 Fruitland Business Park Fruitland Business Park, Inc. Tax ID#16-019585 P.0. Box 1594 Lot A2, 6.75 AC Salisbury, MD 21802 Map 57, Parcel 93 TaxiD#16-005509 31.95 AC Hearne-Crown, LLC Crown Sports Center 28410 Crown Road P.O. Box 0 Fruitland, MD 21826 Map 57, Parcel 94 Tax ID#16-015458 .27 AC James C. Pfautz et al 325 Clopston Hill Sherwood Forest, MD 21405 Map 57, Parcel 122 Tax ID#16-017817 38AC Mary Jane Pfautz et al 12630 Hogue Lane Bealeton, VA 22712 (Brown St. Extended, WS Eden Road] Tax ID#16-043834 14AC Mary Jane Pfautz et al [WS Eden Road, S of Fruitland] Fruitland Business Park (U.S. Rt. 13 @Crown Road to S. Brown St.] Total Fruitland Enterprise Zone Acreage: 111.58 AC Zip Codes: 21826 S. Division Street, lrl Lane, S. Brown Street 21822 Crown Road/Brown Street Extended. [E of Penn R/R @Crown Road] City of Fruitland/Wicomico County Enterprise Zone Certified Businesses I 2 3 4 5 Business Philips Enterprises lTD Ptsp TCB Development, Inc Beach Bounders Gymnastics Academy Millennium Microwave C1earComm Technologies, LLC Year Eligible 1995 2005 2007 2007 2007 Address 321 S. Division Street, Fruitland, MD 21826 400 S. Brown Street, Fruitland, MD 21826 420 lrl Lane, Fruitland, MD 21826 402C S. Brown Street, Fruitland, MD 21826 28410 Crown Road, Fruitland, MD 21826 l If Wicomico County, Maryland 20 10 Census Tracts L 4 Census Tract Boundary 2 o 4Mhs {QI'I$l/ 7fuj I r;:>. c> ).- ~!)jJ " ~ """ Prepared by the Maryland Department of Planning, Projections & Data Analysis I State Data Center Souree: U.S. Census Bureau, 2010 Census Redesignation Narrative The City of Fruitland's Enterprise Zone encompasses approximately 111.58 acres of land located at the southern end of Fruitland's corporate limits and extending into Wicomico County, south of the corporate limits. The zone is positioned between U.S. Route 13, S. Brown and South Division Streets and extends South of U.S. Route 13 as to portion of the Pfautz property. Currently, there are nine (9) businesses located within the zone which provide a mixture of industrial, manufacturing, recreational and retail services. The City of Fruitland and Wicomico County have experienced only six requests for Fruitland Enterprise Zone certification from resident or new businesses since the inception of the zone in 1995. Largely due to the creation of the zone, local developers have committed significant resources toward developing sites which can accommodate businesses and the City of Fruitland has become more organized in economic development initiatives. Since the creation of the enterprise zone: • The City of Fruitland created the Fruitland Economic Development Commission. • The City of Fruitland, through the economic development commission, created a revolving loan fund for resident and new businesses. • Fruitland initiated is own web site and proactively markets the community via the internet. • Fruitland has created an economic development brochure highlighting the amenities of a Fruitland business location. • A local developer has subdivided sites on Parcel 681 of Tax Map 57 and constructed three large industrial buildings designed for new business occupancy. • Vacant land in Salisbury's Northwood Industrial Park in which to construct new industrial facilities is much more limited than it was ten years ago. • Much more development in Fruitland has occurred since the inception of the zone increasing the awareness of Fruitland as a viable business location. New entities include the Wal-Mart SuperCenter and adjacent shopping center, Texas Roadhouse and the creation of Prosperity Business Park that is currently home to Denny's Restaurant, Hampton Inn Suites and Hebron Savings Bank. • Crown Sports Center was annexed into Fruitland and the City has encouraged that business entity to take advantage ofbenefits that the Enterprise Zone has to offer by becoming certified and to which it would be entitled to under this requested redesignation. • Additionally, as result of the Crown Sports Center annexation, the City has made capital investments in the utility infrastructure in that area of the enterprise zone, which will allow for future water and sewer extension to an area favorable for industrial/economic development. • The economy of our current enterprise zone is consistent with its industrial park designation. The major employers are Millennium Microwave and ClearComm Technologies. Additional businesses include DIY Marine, Peninsula Water Conditioning, Tl Mobility, Ryder Truck Rental, Inc., Delmarva Gymnastics Academy, Jeff's Auto Repair, Morgan ' s Towing and Core first. • The condition of the buildings in the enterprise zone are modem, attractive and well maintained, and project an appearance consistent with progressive growth potential. It should be noted that all of the available buildings in the enterprise zone are currently occupied to capacity and are thriving, but land is ready for construction of additional such facilities on request. • The creation of the zone has helped our city enhance our economic development initiatives. Given the activities cited above, we believe that redesignation will result in further economic benefits to Fruitland, Wicomico County and the State of Maryland. GOALS AND OBJECTIVES The City of Fruitland and Wicomico County's overall goal and purpose in applying for redesignation of the enterprise zone is to continue to encourage industrial and commercial growth. The growth will result in job creation, reduce the unemployment rate, and support other local businesses. Growth within the zone will also increase the City and County tax base which will allow the local governments the ability to improve services for their local citizens. The specific goals of the Enterprise Zone that will help to implement the overall objectives of the program are as follows: • • • To attract new tenants to existing commercial properties in the area. To encourage commercial and industrial development within the zone. To encourage existing commercial and industrial entities to expand. LOCAL STANDARDS Businesses must meet appropriate government standards for • • • • • • Zoning Subdivision regulations Building Codes Permit Requirements All local Ordinances State/Local Storrnwater Management Codes and Regulations An existing business entity within the Enterprise Zone which expands must make a capital investment of at least $50,000 and/or create a minimum of two new jobs. A new business entity within the Enterprise Zone must make a capital investment of at least $50,000 and/or create a minimum of two new jobs. EDUCATION AND TRAINING OPPORTUNITIES A number of educational and training opportunities are available to serve as additional incentives for employers locating in the Fruitland Enterprise Zone. Salisbury University offers a wide range of courses at undergraduate and graduate levels. The university's outreach organization (BEACON) assists employers in various initiatives including trend analysis and development of industry-specific studies. Wor-Wic Community college offers a wide array of"job-specific" and general study courses designed to improve skill levels of individuals. Wor-Wic also customizes courses for employers. The Career and Technology Education Center at Parkside High School encourages student participation in various trades and improves skills among students entering the labor force. Salisbury-Wicomico - Economic Development (SWED) is proud to serve as a liaison to programs. The One Stop Career Center, operated by the Lower Shore Workforce Alliance, serves employers locating in the Fruitland Enterprise Zone. Job seekers can use the center as a primary resource in job searches and career development. Management of the Zone The Fruitland City Council will be responsible for the management and administration of the Enterprise Zone. City Manager John Psota is the council's designated agent for administering the zone and submitting the annual report. The City Manager will keep in touch with local business owners in the Enterprise Zone to provide tax credit information, which would include the local standards for eligibility and an application for certification. If eligible, certification letters would be issued to the qualified businesses and copies of those letters would be provided to DBED. Major policy decisions will be the responsibility of the Fruitland City Council in conjunction with the Wicomico County Council. These bodies will both work to promote and publicize the Fruitland Enterprise Zone. The Executive Director of Salisbury-Wicomico Economic Development will undertake various outreach initiatives to businesses that may benefit from the zone. Greater than 160 Acres Justification The proposed redesignation of the enterprise zone encompasses approximately 111.58 acres. EVIDENCE AND CERTIFICATION OF PUBLIC HEARING Enclosed are copies of the City Council public hearing notice which was published ten days prior to the meeting and posted at several local sites as well as sent to the Salisbury Daily Times and posted on the City web site. Also enclosed is a copy of the city council meeting attendance list. (See following attachments) CITY OF FRUITLAND 401 EAST MAIN STREET P.O. DRAWER F FRUITLAND, MARYLAND 21826-0120 n :t.El'IIOM:: .llG-~21!00 ,\mil'\'. FAX :.lll~~7.t.<;(J m~A"O: FAX: .lll~~ DARLENE KERR. President GLORIA J. ORTIZ. Treasurer RAYMOND IJ. CAREY. Councilor ROL,\ND II. PALM~R SR., Councilor CHARLES NICIIOLS, Councilor JOliN D.I'SOfA. City Manager RA \'E ELLEN fi!OMAS. City Clerk MARK D. SWIFT. Deputy Treasurer MICIIAI:L J. I'IIILLIPS, Chief of Police MICIIAI:L GIIJIJONS, Public Works Dirl'Ctor RO!IIAI.D I'.CISZEWSI\1., Code Enforcement Ofc ANDRE\\' C. MITCHELL JR., City Solicitor PUBLIC HEARING CITY OF FRUITLAND TUESDAY, SEPTEMBER 8, 2015 ENTERPRISE ZONE AT7:45 P.M. The Fruitland City Council will conduct a public hearing on the above date and time to solicit input on a proposal to renew the Fruitland/Wicomico County Enterprise Zone for a new 10 year term. The Enterprise Zone is an incentive program of tax incentives and other benefits designed to attract new industry or to motivate existing industry to expand. The Enterprise Zone was originally established in 1995 and was renewed in 2005. It consists of approximately 111 acres within and outside the City limits. The area is bordered by South Division Street, South Brown Street, South Fruitland Boulevard and the U.S. Route 13 By-Pass. The City Council will meet at City Hall, 401 East Main Street, to hear public testimony prior to submitting an application to renew the Enterprise Zone designation. For further information, call 410-548-2809. John D. Psota City Manager Ad 8/30 PUBUC HEARING CITY OF FRUITLAND TUESDAY, SEPTEMBER 8, 2015 ENTERPRISE lONE AT7:4SP,M, The Frui!land City Council will conduct a public hearing on the above date and time to solicit input on a proposal to renew the FruitlandiWicomlco County En· terprise Zone for a new 10 year tenm. The Enterprise Zone is an incentive program of tax incentives and other benefits designed to attract new industry Of' to motivate existing industry to expand. The Enterprise Zone was originaRy es· tablished in 1995 and was renewed in 2005. II consists of approximately 111 acres within and outside the City limits. The area is bordered by South Division Street, South Brown Street, South Fruit· land Boulevard and the U.S. Route 13 By·Pass. The City Council wil meet at City Hal, 401 East Main Street, to hear public testimony prior to submitting an application to renew the Enterprise Zone designation. For further inlonmatlon, call 41().548-2809. John D. Psota City Manager p/ly 8130, '15 CITY OF FRUITLAND MEETING ATTENDANCE ROSTER PLEASE SIGN IN DATE: NAME 1--ML. ADDRESS '(..,~~ ~ ~ ~\t...... M:iD~ G;,~~ t...s-.\\c..vl-~ fVJ\-:J w~ X':,~ t=r~~,J... h-~-\'\.c..n ~\ RESOLUTION NO. 2015-2 OF THE CITY OF FRUITLAND A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FRUITLAND, A MUNICIPAL CORPORATION OF THE STATE OF MARYLAND, APPROVING AN APPLICATION TO THE STATE OF MARYLAND FOR THE RENEWAL OF THE FRUITLAND ENTERPRISE ZONE, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE NECESSARY DOCUMENTS. WHEREAS, the City Council of the City of Fruitland has had an approved State of Maryland Enterprise Zone for more than ten years; and WHEREAS, the Wicomico County Council has also designated the Fruitland Enterprise Zone and worked cooperatively to implement the Fruitland Enterprise Zone; and WHEREAS, the majority of the Fruitland Enterprise Zone is located within the corporate limits of the City, but includes a parcel contiguous to the City and within Wicomico County, but not within the City, and which are entirely within Priority Funding Areas and/or County Certified Areas; and WHEREAS, the original Enterprise Zone contains a ten-year sunset clause which ended June 14, 201S;and WHEREAS, the City Council of the City of Fruitland desires to renew the Fruitland Enterprise Zone for a not her ten-year term; and WHEREAS, the City Council of the City of Fruitland desires to continue to work cooperatively with the Wicomico County Council on the implementation of the Fruitland Enterprise Zone. NOW, THEREFORE, BE IT ENACTED, ORDAINED AND RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRUITLAND, MARYLAND, that it hereby applies for the renewal of the Fruitland Enterprise Zone; and BE IT FURTHER ENACTED, ORDAINED AND RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRUITLAND, MARYLAND, that the Fruitland City Manager be, and he hereby is authorized to execute the required application containing, among other documents, the following: 1. 2. 3. 4. 5. Boundaries of the Enterprise Zone; Management Plan; Local Standards and Incentives; Marketing and Promotion Plan; and Such other documents as may be necessary to effect this Resolution. This Resolution shall become effective immediately upon its adoption. ADOPTED this 8th day of September, 2015. ATTEST: CITY COUNCIL OF THE CITY OF FRUITLAND Roland H. Palmer, Sr. Charles L. Nichols Effective Date: September 8, 2015 History and Benefit of the Enterprise Zone The City of Fruitland, Wicomico County Enterprise Zone Designation was first designated in 1995. Only one business became certified. It was renewed in 2005, during that period five other businesses were certified. While there was very little activity during the first ten year period, the second ten-year period began to experience a little more growth from 2007 to the present. During the past seven years the six certified businesses located in the zone have created approximately 30 new jobs and have maintained an annual workforce of approximately 98 jobs. Businesses have invested approximately $53,000. Additionally, non-certified businesses have invested approximately $119,000. While these numbers may seem small in comparison to other cities or towns, it is our expectation that this modest growth will continue to develop. The impact on the community is measured in terms of job creation and stability. Also, the program has been instrumental in the increased tax base which in tum provides the resources needed to support the public services on which our local citizen have come to rely. Strategy of the Zone The Fruitland Enterprise Zone seeks to create an attractive environment for new business, industry and commerce for the City of Fruitland, Wicomico County and the State of Maryland. Salisbury's Northwood Industrial Park, a 350-acre park established in the early 1970's is nearing capacity. Originally designed to attract manufacturers and other industrial businesses and designated as an enterprise zone nearly thirty years ago, Northwood has been a great success. Fruitland recognizes the need to provide industrial land for new businesses and for the expansion of other businesses. The Fruitland Enterprise Zone is comprised of 111 acres, zoned for industrial use, adjacent to Norfolk Southern' s main rail line, adjacent to the U.S. Route 13 bypass and within Wicomico County's Priority Funding Area. The Fruitland Zone provides a southern balance to Salisbury's Northwood Industrial Park. A portion of the zone (parcels 679 and 681) is currently within the corporate limits ofthe City of Fruitland. Fruitland has been and will continue to be aggressive in annexation and the extension of municipal water and sewer services to areas ofthe zone currently outside corporate limits. The park will target light industrial businesses, distribution facilities and corporate users. A local developer has created a small cluster of businesses on Parcel 679. That same developer has developed (lots have been drawn and a storm water management system has been installed) an additional twenty acres on Parcel 681. This developer has advised the City that plans exist to construct additional buildings to accommodate business tenants in the near future, and that businesses have approached him expressing a desire to relocate to the City's industrial park. Fruitland's Enterprise Zone marketing will continue to be conducted through local, regional and national brokers, site location consultants, the offices of Salisbury-Wicomico Economic Development (SWED) in strong cooperation with Maryland's Department of Business and Economic Development, the Fruitland Economic Development Commission and the City of Fruitland. SWED continues to play a vital role in the growth ofWicomico's industrial base through business retention and attraction initiatives. SWED, in cooperation and partnership with Maryland's Department of Business and Economic Development maintains an ongoing outreach program assisting businesses with site selection, financing, training and other services. The renewal of the Fruitland Enterprise Zone will enhance our ability to attract quality jobs to the City of Fruitland and Wicomico County, Maryland. Comparison of Economic Strategy for the Redesignation with that of Existing Zone. The City's Economic Strategy has not changed since our last request in 2005 with exception of the loss ofthe proposed manufacturing/distribution operation that planning to locate on Parcel 122. Unfortunately, issues arose that proved too time consuming and costly for the developer to resolve. However, it is still the city's desire to have every opportunity available for future development of that parcel as well as continued growth and development of all other areas within the enterprise zone. FRUITLAND'S MERITS STRENGTHS • • • • • • Progressive, business-friendly City Government Access to rail and highway systems, close to air and water transport Superior schools, (New in Fruitland City Limits, Bennett Middle School, Opened Fall 2015) Enterprise Zone Available work force Small town atmosphere with Eastern Shore quality of life OPPORTUNITIES • • Able to take advantage of lower taxes and start-up costs Lack of heavy competition INCENTIVES • • • • • Property tax relief and income tax benefits through Enterprise Zone Inventory tax relief on manufacturing equipment Deferred or share costs associated with annexation, construction, expansion City support with marketing effort Competitive water and sewer rates PLANNED STATE AND LOCAL CAPITAL IMPROVEMENTS TO THE PROPOSED ZONE Currently, the City provides water and sewer and police services to the Fruitland Business Park (Parcels 679 and 681 ). No additional capital projects are planned for that portion of Enterprise Zone. Additionally, the City has included all of the area included in the Enterprise Zone and beyond, in our planning area for future services. Our five-year Capital Improvements plan proposes to extend water and sewer services to two large parcels, one of which is parcel 93, annexed in May of2013, and parcel 122.