WILMINGTON

By GARY HUFFENBERGER

ghuffenberger@wnewsj.com

The second of three required readings was given Thursday on legislation to create a Green Enterprise Zone (GEZ) in Wilmington. City council’s vote whether to declare and establish such a zone — the first in the nation — is anticipated for July 16, council’s next regularly scheduled session.

There were some financial questions Thursday from Wilmington City Councilman Mike Wallace regarding the proposal, but he seemed satisfied with the answers.

“I guess I just want to make sure I know where we’re headed with this whole thing,” Wallace said at one point.

As the measure is written, city council annually will decide how many dollars will be appropriated to a Green Enterprise Zone line item.

City of Wilmington Treasurer Geoffrey Phillips advised Wallace, “The program now is totally separate from any business income or withholding taxes paid by businesses which really financially had a bottomless hole. But this (current version) will have a limit set by you, by (city) council.”

Phillips said the change in how to fund the financial incentives that would be offered to businesses within the citywide Green Enterprise Zone is “the most important adjustment” that’s been made to date in the process of drafting the ground-breaking legislation.

The nature of the financial incentives was changed from a rebate based on corporate income tax to a grant program based on funding appropriations made by council to a GEZ fund in the city budget.

Wallace also wondered about the application process for interested businesses.

Mark Rembert, a co-director of Energize Clinton County which first advanced the idea locally, replied a GEZ Development Council would set rules on how businesses’ applications will be received.

“I think that will be something the (GEZ) council will work in coordination with city council to establish an application process which is both conducive to the budgeting process of city council but also will allow for an effective grant program so we can make sure we can get money out effectively,” Rembert said.

If enacted July 16, the first available grants would be for 2010, said Phillips.

“The financial impact is totally up to the budgetary process. So, you (city council) will be fully part of that each year in terms of what the appropriation is,” Phillips added.

A key point of a Green Enterprise Zone will be to foster — through financial incentives — green energy investment and related jobs, according to Rembert and city officials.