Fiscal Note
There is no direct budgetary effect of this resolution beyond the commitment of available staff time. Creation of a Foreign Trade Zone will provide waivers of federal duty and excise taxes to eligible companies that locate in zones and conduct international business.
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Supporting the Dane County Regional Airport's application to the Federal Foreign Trade Zone (FTZ) Board to establish a Foreign Trade Zone in South Central Wisconsin. Resolution also supports consenting to the inclusion of specific property currently owned by the City of Madison, but under contract with T. Wall Properties (called The Center for Industry and Commerce), inside the boundaries of the to be created Foreign Trade Zone. |
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Preamble
The Foreign-Trade Zones Act of 1934, as amended (19 U.S.C. 81a-81u) was passed to establish zones that expedite and encourage foreign commerce. The subsequent regulations [Title 15, Chapter IV, Part 400 of the code of Federal Regulations (15CFR400), Pages 48-65 as Revised January 1, 1998] provide the legal framework for accomplishing this purpose in the context of evolving U.S. economic and trade policy, and economic factors relating to international competition. Once a Foreign Trade Zone is established, eligible business may locate inside the zone and begin international commerce. The process is officially implemented through the designation of geographical areas, where commercial merchandise receives the same Customs treatment it would if it were outside the commerce of the United States. Merchandise of every description may be held in the Zone without being subject to Customs duties and other ad valorem taxes. This tariff and tax relief is designed to lower the costs of U.S.-based operations engaged in international trade and thereby create and retain the employment and capital investment opportunities that result from those operations.
WHEREAS the future of the City of Madison's Place-Based Economy is tied to an "increased emphasis on attracting, retaining and growing our private sector partners", as stated in the Mayor's Healthy City initiative; and
WHEREAS local communities committed to long-term sustainability can strengthen their economies by helping local enterprises expand their trade area into global markets; and
WHEREAS the City of Madison, Dane County, and our neighboring communities need to continue to find ways to create and modify existing business development tools that generate increased private investment and job creation through enhanced competitiveness in foreign trade; and
WHEREAS federal legislation dating back to 1934 exists to assist local communities help small business compete in the global marketplace through lower duties, tariffs, and relief from ad valorem taxes on the goods that they produce and enhance; and
WHEREAS the Dane County Regional Airport has studied the need for and effectiveness of a Foreign Trade Zone (FTZ) in Greater Dane County by hiring consultants over the past two years to survey the economic climate for foreign trade zones, including an analysis of companies in South Central Wisconsin that might benefit from FTZ availability; and
WHEREAS several South Central Wisconsin communities, including Madison, DeForest, Windsor and Arlington have supported the investigations to form a Foreign Trade Zone connected to the Dane County Regional Airport; and
WHEREAS following a two-year investigation, the Dane County Regional Airport submitted an application to Foreign Trade Zone Board in Washington D.C. that included several sites tied to interested business and property owners who wish to utilize FTZ amenities; and
WHEREAS the City of Madison needs to officially support the continued efforts of Dane County Regional Airport's efforts to establish a FTZ in South Central Wisconsin; and
WHEREAS the City of Madison needs to officially consent to the inclusion of co-developed property owned by the City of Madison, but under contract with T. Wall Properties (The Center for Industry and Commerce) in the planned boundaries of the proposed South Central Wisconsin Foreign Trade Zone; and
WHEREAS if successful, the Dane County Regional Airport will administer the new South Central Foreign Trade Zone for all proposed and future sub zones of the FTZ; and
WHEREAS the cost of administering the FTZ is expected to be recovered by Dane County Regional Airport through a fee charged to businesses applying for FTZ services; and
WHEREAS other organizations such as the areas Chambers of Commerce, Madison Area Technical College, Madison Gas and Electric, Alliant Energy and local developers enthusiastically endorse the creation of a FTZ in this region; and
WHEREAS the designation of a FTZ in this region provides Greater Madison and other areas served by the Dane County Regional Airport with the opportunity to position itself within the national and world economy as a global center of importance.
NOW, THEREFORE BE IT RESOLVED that the Common Council supports the City of Madison's participation in a Dane County Regional Airport application for a Foreign Trade Zone serving South Central Wisconsin.
BE IT FURTHER RESOLVED that The City of Madison does expressly support and consent to the inclusion of its property (Lots 10-50, 51-61, 70-73 in future phases in The Center for Industry & Commerce in Madison, Wisconsin) within the South Central Foreign Trade Zone.
BE IT FURTHER RESOLVED that the Office of Business Resources of the Department of Planning and Development will continue to be the City's liaison to the FTZ if designated and report to the Economic Development Commission and Common Council annually on its activities and results.
BE IT STILL FURTHER RESOLVED that the Mayor and City Clerk are hereby authorized to execute, deliver, and record such documents and to take such other actions as shall be necessary or desirable to accomplish the purposes of this Resolution.