46 S G M A G A Z I N E | S P R I N G / S U M M E R 2 0 1 9 B U S I N E S S + C U LT U R E 47 Toccoa. This year, the state has designated the cities of Avondale Estates, Greensboro, Hartwell, Hogansville, Jesup, Locust Grove, Monticello, Sylvester, and Waycross as Rural Zones. “We never had this kind of growth before,” says Glover, referencing the impact of the rural tax credits. “It’s important to know that the tax credits are also available for the expansion of existing businesses downtown, they just have to add the equivalent of two new jobs.” While downtowns, especially in smaller rural communities, represent significant historical importance, the economic vitality for some have been in decline over the past few decades. Georgia’s rural zones were created by the General Assembly to stimulate economic growth through three tax credits. With a domino effect, it starts with the creation of two full-time equivalent jobs, which allows a $2,000 credit for each new full-time equivalent employee per year, for up to five years and not to exceed $40,000 in credits each year. Once the job requirement is met, businesses can apply for an investment tax credit that represents 25 percent of the building’s purchase price, up to $125,000 and claimed over five years. The third tax credit covers 30 percent of the building’s qualified rehabilitation costs, but not to exceed $150,000, with the credits prorated equally over three years. “It all starts with creating the two full-time jobs,” says Glover, who has worked for the City of Bainbridge since 1999. “A business can’t get the investment and rehabilitation credits without the job creation.” Not an indefinite incentive, the rural zones are only valid for five years. “Our designation in Bainbridge is up in 2023,” says Glover. “If someone wants to buy a building during the last year, they will still get their full five years of tax credits.” Construction Abounds In its first year of Rural Zone status, 32 properties were sold in downtown Bainbridge, creating approximately The rural tax credits have been our saving grace. All the pieces of the puzzle have started being put together. The local businesses are wanting to be more involved, and we have young entrepreneurs opening businesses. It is all those little incremental shifts that are allowing us to grow. - AMANDA GLOVER, EXECUTIVE DIRECTOR OF THE BAINBRIDGE DDA Heather and Tyler Thomas, pictured with their daughter Vivienne, moved to Bainbridge from Tallahassee to open The American. The couple’s next project is a boutique hotel in Downtown Bainbridge. Gallagher and Nicole Dempsey moved to Bainbridge to open a microbrewery and become part of the downtown revitalization movement. $2 million in sales. From the properties sold, seven new businesses were established, adding 55 new jobs to downtown. Glover says that though it might be a little distracting, the sounds of jackhammers and construction noises represent prosperity. “When I walk around downtown there is a lot of activity and excitement.” With a growing list of renovations that have been completed or recently started, Glover says there is still a lot of space available. On the west side of the square, Diablo’s Southwest Grill adds another eating establishment to downtown. The highly anticipated Southern Philosophy Brewery is set to open this summer. Owners Gallagher and Nicole Dempsey moved to Bainbridge last year to establish a microbrewery. With a lot of charm, but in need of work, the Dempseys purchased an historic building on Broughton Street, ideally situated on the square. From the rustic hardwood floors and exposed brick walls to incorporating unclaimed wood from a family farm, Gallagher Dempsey has completed about 60 percent of the renovations himself. “I have been playing with the idea of opening a brewpub for a long time,” Dempsey says. “We came here to visit and fell in love with the downtown area.” With the rural tax credits as an incentive, Dempsey says it was really about the whole package. “I saw potential here; and a lot of things were happening in downtown.” Considered a microbrewery, Southern Philosophy will serve homebrew craft beers and cocktails, along with artisan pizza and light food choices. Just down the street, Tyler and Heather Thomas opened The American in 2017, a year ahead of eligibility for the rural tax credit. With the renovation excitement escalating in downtown, the DOWNTOWN PAT GALLAGHER PAT GALLAGHER