The city’s Board of Commissioners passed plans for the expansion of Union City’s Urban Enterprise Zone at their meeting on Feb. 6. The Urban Enterprise Zone is a state-designated area in which urban businesses can charge a lower sales tax (3 percent) in order to lure shoppers. The money from the sales tax goes back to help the towns make improvements in their business districts.
According to state statute, an Urban Enterprise Zone can expand by 10 percent every five years. Union City’s zone is now in its fifth year.
“[The expansion] will attract new businesses and will increase tax revenues,” said Department of Public Works Commissioner Tina Yandolino at the meeting.
The plans will include some of the city’s larger businesses that previously hadn’t been included in the zone.
UEZ Coordinator Amada Avila named Maaco, Palermo Plumbing and Frank’s Carpets as some additional businesses that are included in the new plan.
The plans that were drafted by Dan Spatz, a planning consultant with Community Housing and Planning Associates in Fort Lee, will increase the 68-acre zone by approximately 6.8 acres.
In order to change the shape of the zone, some streets that don’t have businesses on them will be removed from it.
“We eliminated a few existing blocks that were residential,” said Spatz.
The residential blocks eliminated were on Bergenline Avenue and 16th Street, 18th and West streets, 16th Street and Summit Avenue, and 15th Street and Summit Avenue.
The plans were unanimously approved by the Board of Commissioners and will be sent to the state for approval.
“I feel confident that the state will give approval for this,” said Spatz.
“[This expansion] should generate a lot of additional sales tax that will come back to the city,” said Peter DeGast, president of the Urban Enterprise Zone Redevelopment Board, a board consisting of merchants that works as an advisory board to the city’s UEZ.
Union City has already used UEZ funds to implement a litter clean-up project within the zone and to install new street lamps as part of an ongoing improvement project. The city is currently looking to use UEZ money to fund a fa