The development tool known as an Enterprise Zone is supposed to be for depressed areas that need the particular attention of government to attract private sector investment. The state is preparing to authorize 97 E-Zones in the next several years that would provide income, sales, and property tax breaks for business location.
But, Thomas Cafcas of the incentive think tank "Good Jobs First" says research shows Enterprise Zones do not get at the issue they were created to address, urban blight.
"That's the question with Enterprise Zones, right? If economic activity occurs in an area, it doesn't necessarily mean that people that live close to that area or within that area are necessarily benefiting from those jobs. "
Cafcas says locating a business within blight does not mean workers will choose to live nearby. Cafcas says Enterprise Zones are not people based, but place based policy that tends to move around existing jobs.
He says studies show E-zones also do nothing for the backbone of economic activity, small and medium sized business. Existing Enterprise Zones sunset by July of 2016. Many cities are preparing new applications.