Chapter 3.45
ENTERPRISE ZONE
Sections:
3.45.010 Statement of purpose.
3.45.020 Boundaries and date established – Transition.
3.45.040 Deferral of increased assessed property value.
3.45.050 Certain grant incentives.
3.45.060 Repealed.
3.45.070 Other incentives established by regulation.
3.45.080 Designation of enterprise zone administrator.
3.45.090 Application for incentive created herein.
3.45.010 Statement of purpose.
In accordance with Title 59.1, Chapter 22, of the Virginia Code, it is the purpose of this chapter to promote business and industrial growth within the area designated as the Staunton enterprise zone by means of tax incentives, deferrals, grants, and other incentives and initiatives to stimulate real property improvements and new job creation that will serve the best interests of the city of Staunton. (Ord. 2007-06; Ord. 2006-23. Code 1985, § 12-191; Ord. 5-24-90; Ord. 3-14-91, § A).
3.45.020 Boundaries and date established – Transition.
(1) The boundaries of the Staunton enterprise zone are as set forth on the map entitled “Staunton Enterprise Zone 2010 – 2020 (with 2010 Expansion),” dated January 1, 2010, as maintained in the office of the Staunton enterprise zone administrator, the provisions of which map are incorporated fully herein by reference. The Staunton enterprise zone as shown on the map dated January 1, 2010, is established and designated effective January 1, 2010, solely for purposes of eligibility for benefits that may be provided by the Commonwealth of Virginia under the applicable provisions of Title 59.1 of the Virginia Code and implementing regulations of the Commonwealth of Virginia.
(2) With respect to the enterprise zone set forth on the map entitled “Staunton Enterprise Zone 2010 – 2020 (with 2010 Expansion),” dated January 1, 2010, the benefits provided in SCC 3.45.040 and 3.45.050, and the regulations promulgated under SCC 3.45.070, shall be measured from January 1, 2010.
(3) Any application made on or after January 1, 2010, for incentives shall be regarded as an application as to the zone established and the corresponding benefits allowed by the city under the provisions of this chapter in effect for such purposes as of January 1, 2010. Any application made before January 1, 2010, shall be regarded as an application made as to the zone established and the corresponding benefits allowed by the city under the provisions of this chapter in effect for such purposes immediately prior to January 1, 2010. No business firm which received any benefits allowed by the city under the provisions of this chapter in effect for such purposes immediately prior to January 1, 2010, shall be eligible for benefits allowed by the city under the provisions of this chapter in effect as of January 1, 2010, unless and until the business firm satisfies all of the requirements as to the zone established and benefits allowed by the city as of January 1, 2010. (Ord. 2010-17; Ord. 2008-28; Ord. 2007-06; Ord. 2006-23. Code 1985, § 12-192; Ord. 5-24-90; Ord. 3-14-91, § A; Ord. 2-25-93).
3.45.030 Definitions.
As used in this chapter:
(1) “Average number of full-time employees” means the number of full-time employees during each payroll period of a business firm’s taxable year divided by the number of payroll periods.
(a) In calculating the average number of full-time employees, a business firm may count only those full-time employees who worked at least one-half of the normal work days during the payroll period. Paid leave time may be counted as work time.
(b) For a business firm which uses different payroll periods for different classes of employees, the average number of full-time employees of the firm shall be defined as the sum of the average number of full-time employees for each class of employees.
(2) “Business firm” means any for-profit business entity, incorporated or unincorporated, which is authorized to do business in the commonwealth of Virginia.
(a) The term “business firm” includes partnerships and small business corporations electing to be taxed under Subchapter S of the federal Internal Revenue Code, and which are not subject to state income tax as partnerships or corporations, but the taxable income of which is passed through to and taxed as income of individual partners and shareholders.
(b) The term “business firm” does not include homeowners associations as defined by the Internal Revenue Code, Section 528.
(3) “Employee of a zone establishment” means a person employed by a new business firm who is on the payroll of the firm’s establishment(s) within the zone. In the case of an employee who is on the payroll of two or more establishments of the firm, both inside and outside of the zone, the term “employee of a zone establishment” refers only to such an employee assigned to the firm’s zone establishment(s) for at least one-half of the normally scheduled workdays for such employee.
(4) “Full-time employee” means an employee of a zone establishment who works at least 35 hours per week during the business firm’s weekly payroll period, or two or more individuals who together share the same job position and together work 35 hours per week during the business firm’s weekly payroll period for that one position, provided the time worked totals at least 1,750 hours during the business firm’s taxable year. The term “full-time employee” does not include a partner member or shareholder in the new business firm or an unpaid volunteer worker.
(5) “In good standing” means that the business firm or new business firm has satisfied all of the requirements of the commissioner of revenue and of the treasurer of the city, including the payment in full of all license taxes, real estate taxes, and other taxes, levies, fees, charges, interest, and penalties, and has paid in full all other fees, charges, and claims of any nature whatsoever imposed by or owed to the city or related entities of the city. The determination of whether a business firm is “in good standing” shall be made by the enterprise zone administrator upon consideration of a certification provided by the commissioner of revenue, the treasurer of the city, and by any other authorized official of the city or related entities of the city and upon consideration of other information as the zone administrator deems appropriate.
(6) “Marketing expenses” means out-of-pocket costs paid by a business firm for advertising, public relations, graphic design work and printing related to advertisement, promotion, or brand development, or other out-of-pocket costs paid for general business promotion.
(7) “New or expanding business” means an enterprise which has increased its number of employees, expanded its facilities, or invested additional new capital in facilities, plant or equipment as part of a written plan and effort to grow its revenues and profits.
(8) “Property owner” includes any person or entity, regardless of form, having legal title to real property. (Ord. 2010-17; Ord. 2007-06; Ord. 2006-23. Code 1985, § 12-193; Ord. 5-24-90; Ord. 3-14-91, § A; Ord. 7-25-91).
3.45.040 Deferral of increased assessed property value.
(1) Any business firm or property owner who makes repairs, renovations or other structural or interior improvements to their industrial or commercial property in the enterprise zone, increasing the assessed value of the property by at least 40 percent, shall receive a five-year deferral of increased assessment of property value for real estate tax purposes with respect to such improvements.
(2) The business firm or property owner claiming the deferral shall file in the Staunton enterprise zone administrator’s office an application on the form approved by the city assessor, requesting the deferral provided hereunder by not later than January 1st of the real estate tax year for which the exemption is claimed.
(3) No business firm or property owner shall be eligible for the deferral provided hereunder unless:
(a) The required building permits have been obtained;
(b) The business firm or property owner is in good standing;
(c) The city assessor has verified in writing to the Staunton enterprise zone administrator that the requirement to increase the assessed value by at least 40 percent has been satisfied; and
(d) A final certificate of occupancy has been issued by the city.
(4) Any business firm or property owner qualifying for the deferral of increased assessment of property value and who, as part of a new development or redevelopment, has not less than 50 percent pervious surface area of the commercial or industrial property, may receive one additional year of deferral. (Ord. 2010-17; Ord. 2007-06; Ord. 2006-23. Code 1985, § 12-194; Ord. 5-24-90; Ord. 3-14-91, § A).
3.45.050 Certain grant incentives.
(1) A business firm in good standing shall be eligible to apply for one or more of the following specific grants through an annual application process administered by the enterprise zone administrator on behalf of the economic development authority (EDA) of the city of Staunton, to the extent not inconsistent with the terms of a contribution agreement to be entered into between the EDA and the city, in amount(s) equal to:
(a) One thousand dollars per full-time employee of a zone establishment when such business firm creates a minimum of 15 new full-time jobs, provided:
(i) Each such employee earns at least 300 percent of the federal minimum wage;
(ii) The new business firm has been in full operation in the transaction of business in the enterprise zone for at least one year immediately prior to applying; and
(iii) The total grant available to any one business is limited to $25,000;
(b) Fifty percent of the machinery and tools or personal property tax collected by the city for a period of three years when such business firm has acquired and is assessed each such year on a basis that reflects an increase of at least $1,000,000 in additional machinery and tools or an increase of at least $500,000 in additional personal property, respectively, when compared to the year immediately prior to the three-year period. The amount of the grant shall be calculated based on the increase in machinery and tools tax or personal property tax paid by the business and not the total amount.
(2) A business firm in good standing shall be eligible to apply for one or more of the following specific grants available on a first-come, first-served basis beginning July 1st of each year from the EDA of the city of Staunton, to the extent not inconsistent with the terms of a contribution agreement to be entered into between the EDA and the city, in amounts(s) equal to:
(a) Three thousand dollars as a reimbursement of or grant towards the business firm’s interest rate buy-down on start-up or expansion loan; refund of broadband connection fees; $2,000 cultural amenity package, providing tickets and entrance opportunities for Staunton’s local arts and cultural destinations; or $500.00 cash grant for each full-time job created for up to five employees when such employee(s) earn at least 300 percent of the federal minimum wage, as long as the business firm is a new or expanding business firm that meets the definition of a “creative class” target section within the professional, scientific, and technical services sector (NAICS 54), including: 5413 architectural, engineering, and related services; 5414 specialized design services; 5415 computer systems design and related services; 5416 management, scientific, and technical consulting services; 5417 scientific research and development services; 5418 advertising, public relations, and related services; and 5419 other professional, scientific, and technical services.
(b) Fifty percent of marketing expenses in the first six months after opening for new target sector destination retailers in the central business district and Newtown portion of the enterprise zone and a two-year membership to the Staunton Downtown Development Association (SDDA) at no cost, provided:
(i) The grant available to any one business is $5,000 plus the value of the two-year membership to the SDDA.
(ii) If the marketing is conducted with or through a Staunton-based business, reimbursement shall be made at a 100 percent rate rather than a 50 percent match, but the $5,000 incentive cap remains applicable.
(iii) It shall be available only to target section destination retailers including furniture stores, supermarkets or other nonconvenience grocery stores, quality apparel stores, musical instrument retailers, high-end auto dealerships, and book and music retailers.
(c) Two-hundred-dollar scholarship to the Staunton Creative Community Fund, Inc.’s business plan development course available only to minority entrepreneurs when $50.00 is paid as a deposit for course attendance.
(3) If the total amount of grants for which eligible business firms and new business firms have applied exceeds the annual appropriation for such grants, then the amount of grant that each business firm and new business firm is eligible for shall be prorated in a proportional amount.
(4) Such grants shall immediately terminate upon such business firm’s relocation outside the enterprise zone. (Ord. 2010-20; Ord. 2010-17; Ord. 2008-22; Ord. 2007-06; Ord. 2006-23. Code 1985, § 12-195; Ord. 5-24-90; Ord. 3-14-91, § A; Ord. 6-28-95).
3.45.060 Other certain incentives.
Repealed by Ord. 2010-17. (Ord. 2006-23. Code 1985, § 12-196; Ord. 5-24-90; Ord. 3-14-91, § A).
3.45.070 Other incentives established by regulation.
Regulations and rules prescribing procedures effectuating the purpose of this chapter shall be promulgated by the city manager and approved by the city council. Such regulations and rules shall include, but not be limited to, the incentives enumerated in this chapter. (Ord. 2006-23. Code 1985, § 12-197; Ord. 5-24-90; Ord. 3-14-91, § A).
3.45.080 Designation of enterprise zone administrator.
The Staunton department of economic development is hereby designated to administer the enterprise zone with the director of economic development or designee serving as enterprise zone administrator. (Ord. 2006-23. Code 1985, § 12-198; Ord. 5-24-90; Ord. 3-14-91, § A; Ord. 6-28-95).24
3.45.090 Application for incentive created herein.
Business firms may make application for the various incentives set forth herein to the enterprise zone administrator on forms provided by the city of Staunton and available at the office of economic development. (Ord. 2010-17; Ord. 2006-23. Code 1985, § 12-199; Ord. 5-24-90; Ord. 3-14-91, § A).
3.45.100 Validity.
If any section, paragraph, subdivision, clause, or provision of this chapter be adjudged invalid by a court of competent jurisdiction, such adjudication shall not operate to affect the validity of any other part hereof. (Ord. 2006-23. Code 1985, § 12-200; Ord. 5-24-90; Ord. 3-14-91, § A).
3.45.110 Termination date.
This chapter shall terminate, unless continued pursuant to application made to the Commonwealth of Virginia, Department of Housing and Community Development, on December 31, 2020. (Ord. 2010-17; Ord. 2006-23. Code 1985, § 12-201; Ord. 5-24-90; Ord. 3-14-91, § A).