2018 Tennessee Code
Title 13 - Public Planning and Housing
Chapter 28 - Enterprise Zones
Part 2 - Local Enterprise Zone Act
§ 13-28-206. Criteria for depressed areas -- Application.

Universal Citation: TN Code § 13-28-206 (2018)
  • (a) Depressed areas proposed to be designated as "enterprise zones" by the municipality shall meet the following criteria:

    • (1) The area is within the jurisdiction of the municipality;

    • (2) The boundary of the area is contiguous and includes, if feasible, vacant or underutilized lands or buildings which are conveniently accessible to area residents;

    • (3) If the area is located in a metropolitan statistical area with a population of fifty thousand (50,000) or greater, the population of the area shall be at least four thousand (4,000); if the area is not located in a metropolitan statistical area, the population of the area shall be one thousand (1,000) or more as determined under the most recent census;

    • (4) The area shall be in a jurisdiction or "pocket of poverty" that is urban development action grant (UDAG) eligible; and

    • (5) The area shall be one of pervasive poverty, unemployment and general distress, and have:

      • (A) An average rate of unemployment in such areas for the most recent twenty-four-month period for which data is available of at least one and one-half (11/2) times the average national rate of unemployment for such twenty-four-month period;

      • (B) A poverty rate of at least twenty percent (20%) or more in all census tracts;

      • (C) At least seventy percent (70%) of the households in the area with incomes below eighty percent (80%) of the median income of the households of the government designating such area; or

      • (D) A total population decrease of at least twenty percent (20%) during the period between the last two (2) decennial censuses.

  • (b) Any municipality may designate any area meeting the criteria of subsection (a) within its jurisdiction as a depressed area. Such municipality may then make written application to the board to have such area or areas declared to be an enterprise zone. Such application shall include a description of the location of the area or areas in question and such other information as the board may require to satisfy itself that the criteria of subsection (a) have been met. Such municipality shall hold at least one (1) public hearing in the proposed zone at least thirty (30) days prior to the preparation of the application, and residents of the proposed zone shall be actively involved in the preparation of the application.

  • (c) The written application submitted by the municipality should indicate the community's willingness to assume the duty and responsibility to:

    • (1) Devise and implement a program to improve public safety within the enterprise zone;

    • (2) Give priority to the use of community development block grant (CDBG) funds, urban development action grant (UDAG) funds, and local capital improvement funds within an enterprise zone;

    • (3) Assist the board in certifying employers to be eligible for the benefits of this part;

    • (4) Study and consider the desirability of amending or repealing certain local regulations and ordinances which might be impeding growth and development;

    • (5) Assist the board in evaluating progress made in any enterprise zone within its jurisdiction; and

    • (6) Make appropriate local tax or other regulatory concessions which are not in violation of constitutional requirements.

  • (d) Nothing contained within this part shall be construed to authorize a municipality to offer or make concessions pertaining to county taxes or regulations. Likewise, nothing contained within this part shall be construed to authorize a county to offer or make concessions pertaining to municipal taxes or regulations.

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