Enterprise zones reactivated

Senators gave final approval April 3 to a bill that reactivates and modernizes an economic development program in Nebraska.

LB800, introduced by Omaha Sen. Heath Mello, reauthorizes and updates the Enterprise Zone Act.

Under the bill, the state Department of Economic Development will designate five areas as enterprise zones, with no more than one zone in a city of the metropolitan class and no more than one zone in a city of the primary class.

An enterprise zone will be required to meet two of the following criteria:
• the area’s population had decreased by 10 percent;
• the average unemployment is at least 200 percent of the state average; or
• the average poverty rate exceeds 20 percent for the total federal census tract.

Projects located within a designated enterprise zone will be given preference for various business incentive and grant programs. Enterprise zone designations will last for 10 years and projects within the zones will receive preference for funding from the Job Training Cash Fund, Business Innovation Act and Affordable Housing Trust Fund.

LB800 passed on a 49-0 vote.