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HomeMy WebLinkAboutPR 20139: OPPORTUNITY ZONES, CENSUS TRACTS WITHIN PORT ARTHUR P. R. NO. 20139 2/22/2018 FB RESOLUTION NO. A RESOLUTION AUTHORIZING THE DESIGNATION OF OPPORTUNITY ZONES FOR ALL ELIGIBLE CENSUS TRACTS WITHIN THE CITY OF PORT ARTHUR WHEREAS, the Tax Cuts and Jobs Act established Opportunity Zones to spur private investment in distressed communities throughout the county; and WHEREAS, Opportunity Zones are a new community development program to encourage long-term investment in low-income communities; and WHEREAS,the Opportunity Zones program provides a tax incentive for investors to re- invest their unrealized capital gains into Opportunity Funds that are dedicated to investing into Opportunity Zones; and WHEREAS, the Opportunity Zones program uses low-income community census tracts as the basis for determining areas eligible for Opportunity Zone designation as show in Exhibit "A"; and WHEREAS, the designation of Opportunity Zones have a 90-day determination period from the date of enactment and the Governor will submit recommendations prior to March 21, 2018 and designation will be finalized no later than April 30, 2018. WHEREAS, the City Council and the City of Port Arthur Section 4A Economic Development Corporation deem it in the public interest to establish Opportunity Zones within the eligible census tracts of the City of Port Arthur as shown in Exhibit"A" NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS: Section 1. That the facts and opinions in the preamble are true and correct. P. R. NO. 20139 2/22/2018 FB Section 2. That the City Council of the City of Port Arthur authorizes the designation of the attached census tracts as shown in Exhibit "A" as eligible for designated Opportunity Zones. Section 3. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of A.D., 2018, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor Councilmembers NOES: Derrick Freeman,Mayor ATTEST: Sherri Bellard, City Secretary Page 2 P. R. NO. 20139 2/22/2018 FB APPROVED AS TO FORM: Guy N. Goodson, PAEDC Attorney V D Valecia . T,ize , City Attorney APPROVED: Floyd Batiste, PAEDC CEO Page 3 P. R. NO. 20139 2/22/2018 FB EXHIBIT "A" PA 1 ,..z , .. 'i, .1,1, : • x`; v ella ifill z 4 3 ..‘• 4 . II fD N, O t y cr / N .-f 21) N. .. .. - N 3 Q / v 2 n 4 i "4 N _O • 1.,' , lir O �{ 11.83 ' al tD LT Q I % di o •• N -c z o m 3 ,"• -I n 4.0ler - -, o m m v c 45- A el'n o N Q- a v p c Igt, o_ N O d Z• F O A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A .0. A A ci -n -I N 00 CO CO 00 CO 00 CO 00 00 00 00 CO CO CO CO 00 00 00 00 CO 00 NJ NJ NJ NJ NJ NJ NJ V NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ NJ N 00 CO CO 00 03 IV NJ NJ 00 CO CO NJ NJ NJ 00 CO Co NJ NJ CO CO m N n 0 in A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A ,y O O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Z n N N N N N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0. 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N N A N W W U1 W N N W W N N N N W N NJ A W N W N W N W N N N W Ul N W 01 CD < 0 U1 V1 CO O N V1 00 N N (0 l0 A V1 W N V1 lO l0 W l0 A 00 00 O 00 01-, O V W 00 O In W N > O. rD = 10 O1 O 00 N A cn O A N V U1 (D U1 NJ U1 V A (n N O t0 O A co V CO N l0 O W lD W O V nO W t0 N W V LO V CO A O A V N A O N A N O t0 A A W Ul LID 00 A CO V A O LA N CO N 1/1 .< The New Markets Tax Credit(NMTC)Program supports activities in eligible Low-Income Communities(LICs),which are defined by statute as population census tracts with a poverty rate of 20 percent or greater or a median family income(MFI)at or below 80 percent of the applicable area median family income(26 USC§45D(e)).Section 223 of the American Jobs Creation Act of 2004(P.L.108-357,118 Stat.1418)amended the definition of LICs to include,among other things,census tracts in High Migration Rural Counties with a median family income at or below 85 percent of the applicable area median family income.A High Migration Rural County is any county which,during the 20-year period ending with the year in which the most recent census was conducted,has a net out-migration of inhabitants from the county of at least 10 percent of the population of the county at the beginning of such period.The CDFI Fund has identified the following census tracts that,based on 2011-2015 American Community Survey U.S.Census Bureau data,qualify under this special provision.These are census tracts that have become eligible for NMTC investments pursuant to the American Jobs Creation Act.A list of these qualifying census tracts is below. 20-year %Median Family County Income(MFI)/Area 2010 Census Tract population Income 2011-1015 Number FIPS code loss 1990- (between$09-85% GEOID 2010 census MFI) 01087231601 -13.9% 82.1 05039970300 -15.6% 84.8 08017960600 -23.4% 84.4 17067953800 -10.6% 80.4 17067954200 -10.6% 84.5 17067954300 -10.6% 84.4 17193958100 -11.2% 83.4 19003950200 -17.2% 84.5 19009070300 -16.6% 81.6 19025950200 -16.0% 8L6 19035080100 -14.4% 84.9 19137960400 -11.1% 81.4 19147960200 -11.7% 82.0 19147960400 -11.7% 84.7 19151780100 -23.3% 82.3 20013480600 -10.3% 82.8 20029977100 -13.5% 82.2 20047969700 -19.8% 85.0 20063955100 -16.6% 83.2 20073965600 -14.8% 81.5 20073965800 -14.8% 83.0 20077961600 -15.3% 81.2 20077961800 -15.3% 83.1 20117040701 -13.6% 81.8 20117070182 -13.6% 80.2 20141474100 -20.7% 82.3 20165972200 -13.9% 83.6 20167973800 -11.0% 81.5 20183475800 -24.1% 80.2 20201978600 -18.0% 84.8 20201978700 -18.0% 84.4 22115950703 -15.5% 80.4 23003950400 -17.3% 83.7 23003950900 -17.3% 80.8 23003951000 -17.3% 83.6 23003952100 -17.3% 82.2 23003952500 -17.3% 84.9 26069000200 -14.3% 82.1 26069000600 -14.3% 83.0 26071000100 -10.3% 80.5 26071000500 -10.3% 80.8 26131970300 -23.4% 81.5 27011950100 -16.2% 84.4 27043460100 -14.1% 84.6 27043460300 -14.1% 81.7 27063480300 -12.1% 84.6 27071790300 -18.3% 82.4 27073180100 -18.7% 82.3 27073180200 -18.7% 84.1 27089080400 -14.1% 83.5 27107960200 -14.1% 80.5 27107960300 -14.1% 81.8 27129790100 -11.0% 81.7 27129790500 -11.0% 83.6 27129790600 -11.0% 80.9 27173970100 -10.7% 83.7 27173970300 -10.7% 80.2 27173970400 -10.7% 84.7 29041470300 -14.9% 83.5 30023000300 -10.2% 83.5 30071060200 -17.6% 80.8 30109000100 -14.6% 81.3 31003979600 -16.1% 84.7 31015975800 -26.0% 82.0 31021963400 -12.8% 83.8 31041971700 -10.8% 83.1 31089974100 -17.2% 82.7 31125966100 -12.6% 84.8 31161951700 -19.0% 84.4 31169963100 -21.2% 81.6 31175971400 -17.6% 81.6 38037965900 -32.5% 82.8 38041964700 -28.1% 80.3 38043966800 -26.9% 84.9 45005970300 -11.2% 81.5 46003973600 -13.6% 84.9 46097961600 -27.0% 83.5 46123971600 -18.5% 81.3 48045950200 -16.9% 81.6 48387950100 -10.2% 84.8 48389950200 -13.1% 84.6 54059957100 -20.5% 82.9 54101970300 -14.7% 85.0 The New Markets Tax Credit(NMTC)Program supports activities in eligible Low-Income Communities(LICs), which are defined by statute as population census tracts with a poverty rate of 20 percent or greater or a median family income(MR)at or below 80 percent of the applicable area median family income(26 USC §450(e)):"(1)IN GENERAL—The term'low-income community'means any population census tract if—"(A) the poverty rate for such tract is at least 20 percent,or"(B)(i(in the case of a tract not located within a metropolitan area,the median family income for such tract does not exceed 80 percent of statewide median family income,or"(ii)in the case of a tract located within a metropolitan area,the median family income for such tract does not exceed 80 percent of the greater of statewide median family Income or the metropolitan area median family income.Subparagraph(B)shall be applied using possessionwide median family income in the case of census tracts located within a possession of the United States."Source: http://cdfifund.gov/docs/2000_nmtc_statute.pdf Data Sources.A total of six variables(2011-2015 ACS)were downloaded from the Census Bureau Fact Finder website(http://factfinder2.census.gov)for the 50 states,the District of Columbia and Puerto Rico for different geographies: 1)51701:census tract poverty rate;2)B19113:census tract median family Income in the past 12 months;3)52301:census tract employment status;4)B19113:state median family income in the past 12 months;this variable with 50 observations was downloaded for the 50 states,DC and Puerto Rico;5)819113:"Core Based Statistical Area"(CBSA)median family income;this variable with 955 observations was downloaded for the metropolitan and micropolitan areas and merged with the census tracts using the CBSA variable below:July 2015(OMB Bulletin No.15-01).6)CBSA metropolitan and micropolitan area designation for counties was downloaded from the Census Bureau website (http://www.census.gov/population/metro/),based on the designations made by the Office of Management and Budget.Data corresponds to July 2015(OMB Bulletin No.15-01).Other variables:population 801003. In addition,the territory data was separately downloaded from the Census Bureau Fact Finder website (http://factfinder2.census.gov)for American Samoa,Guam,Northern Mariana Islands,and Virgin Islands: 1) PBG76 and PBG82:census tract poverty rate;2)P8047 and PBG72:census tract median family income in the past 12 months;3)P5038:census tract employment status;4)P1:total population Methodology.Census tracts are eligible for the NMTC program if they meet any of the following criteria. First,tracts are eligible if they have a poverty rate equal to or greater than 20%;or if the tract's median family income in non-metropolitan tracts is equal to or less than 80%of the state median income;or tracts are eligible if the tract's median family income in metropolitan tracts is equal to or less than 80%of the maximum median income of state or CBSA median income. N/A In data cells indicates that either no sample observations or too few sample observations were available to compute an estimate,ora ratio of medians cannot be calculated because one or both of the median estimates falls in the lowest interval or upper interval of an open-ended distribution. The following is a list of variables in this dataset based on 2011-2015 ACS data Variable Name Variable Description and Source The Census Tract number is comprised of 11 digits,including a leading 2010 Census Tract Number APS code zero for states 01 through 09.The first two digits represent the state code.The next three digits represent the county code.And the remaining six digits represent the Census Tract code. CBSA metropolitan and micropolitan area designation for counties was downloaded from the Census Bureau website OMB Metro/Non-metro Designation,July 2015(15-01) (http://www.census.gov/population/metro/),based on the designations made by the Office of Management and Budget.Data corresponds to July 2015(15-01) Census Tract Poverty Rate%(2011-2015 ACS) 2011-2015 American Community Survey(ACS),Variable 51701:census tract poverty rate.http://factfinder2.census.gov Median Family Income%is computed as follows:in the case of a tract not located within a metropolitan area,the median family income for such tract does not exceed 80 percent of statewide median family income,or Census Tract Percent of Benchmarked Median Family Income(%)2011-2015 ACS (il)in the case of a tract located within a metropolitan area,the median family income for such tract does not exceed 80 percent of the greater of statewide median family income or the metropolitan area median family income. Census Tract Unemployment Rate(%)2011-2015 2011-2015 American Community Survey,Variable 51701:census tract poverty rate.http://factfinder2.census.gov Does Census Tract Qualify on Poverty>=20%? Is poverty rate>=20% Does Census Tract Qualify on Median Family Income<=80%7 Is median family income<=80% Does Census Tract Qualify For NMTC Program on Poverty or Income? Does tract qualify as Low Income Community based on poverty or median family income? County County designation(first five digits of census tract number) State Abbreviation State abbreviation State Name State name County Name County name This variable is calculated by dividing the census tract unemployment rate by 8.3 for census tracts located in the 50 states,District of Columbia and Puerto Rico and by dividing the census tract unemployment rate by 9.3 for census tracts located in the Island Areas of the United States (American Samoa,Guam,Northern Mariana Islands and the US Virgin islands).These two geographies have different bases,because the eligibility data for the island Areas of the United States comes from a different Census survey and thus has a different national unemployment rate than the 2011-2015 ACS data. Tract Unemployment to National Unemployment Ratio The following census tracts have different numbers in 2010 vs.2015 2010 Census Tract Number MS cab.GEOID 3011-2015 Census Tr.O Number FI►5 cant.GEOID 02270000100 02158000100 04019002701 04019002704 04019002903 04019002906 04019410501 04019004118 04019410502 04019004121 04019410503 04019004125 04019470400 04019005200 04019470500 04019005300 06037930401 06037137000 36053940101 36053030101 36053940102 36053030102 36053940103 36053030103 36053940200 36053030200 36053940300 36053030300 36053940401 36053030401 36053940403 36053030403 36053940600 36053030600 36053940700 36053030402 36065940000 36065024800 36065940100 36065024700 36065940200 36065024900 46113940500 46102940500 46113940800 46102940800 46113940900 46102940900