The Moab City Council has approved a resolution allowing the city to apply for an extension of the area’s designation as an enterprise zone. The five-year designation was last renewed in 2008.

Ken Davey, Moab city’s economic development specialist, said in a presentation to the council that the program is designed for small, rural areas that tend to have higher unemployment combined with lower wages than urban areas. Cities with a population of less than 10,0000 people and counties with a population below 50,000 are eligible for the designation.

The state-run program is administered by the Utah Governor’s Office of Economic Development. The enterprise zone program provides additional tax credits to businesses located within the designated areas and which do not collect sales tax or are not construction related. Davey said those credits are meant to encourage businesses to pay slightly higher wages to employees.