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HomeMy WebLinkAbout96-04 ORDINANCE No. 96-4 An Ordinance to Amend the Town of Pulaski Code to Establish Enterprise Zone Incentives Adopted: March 19, 1996 Effective: March 19, 1996 - 300 - • Ordinance Number 96- 4 An Ordinance to Amend the Town of Pulaski Code to Establish Enterprise Zone Incentives Enterprise Zones Article 1 Town of Pulaski Enterprise Zone Section 1 Statement of Purpose The Virginia Enterprise Zone Act of the Code of Virginia, as amended, authorizes the establishment of an enterprise zone. It is the purpose of the Enterprise Zone Act, and of this Article, to stimulate business and neighborhood growth within the area so designated as the Town of Pulaski Enterprise Zone by means of state income tax credits, employment grants and local incentives more particularly set forth herein. Section 2 Boundaries of the Town of Pulaski Enterprise Zone The boundaries of the Town of Pulaski Enterprise Zone are as set forth on the map entitled, "Map of the Town of Pulaski Enterprise Zone," which is on file in the office of the Director of Economic Development of the Town of Pulaski, Virginia, the area of which has been declared an enterprise zone by the Governor . of the Commonwealth of Virginia for a period of twenty (20) years in accordance with the Virginia Enterprise Zone Act. Section 3 Definitions and Qualifications. The definitions and qualifications of the Town of Pulaski Enterprise Zone are as set forth in the July 1995 Virginia Enterprise Zone Program documents entitled: • Instructions for Requesting State Tax Credits for Existing Businesses Form EZ-SE • Instructions for Requesting State Tax Credits for New Businesses Form EZ-SN • Instructions for Requesting State Tax Credits for Real Property Improvements Form EZ-SR • Instructions for Requesting State Job Grants Form EZ-SJ And additional definitions concerning local incentives are as set forth in Section 4 of this document. All forms previously mentioned in this section are on file in the office of the Director of Economic Development of the Town of Pulaski, Virginia. Note: A new business is a business not previously conducted in the Commonwealth of Virginia by such taxpayer and that begins operation in the Town of Pulaski Enterprise Zone after January 1, 1996 for State incentives and March 19, 1996 for local incentives. An existing business is one that was actively engaged in the conduct of trade or business before January 1 1996 in the area • prior to such an area being designated as the Town of Pulaski Enterprise Zone. See forms above for clarification. Section 4 Local Enterprise Zone Incentives Incentive: 1) Business Loan Program -This program is designed to address attraction or expansion of new or existing businesses by providing "gap" financing not covered by commercial banking. Funds can be used for acquisition or renovation of buildings, purchasing machinery and equipment and some working capital. The general limitations on applicability are 1) Loan program will not comprise more than 45% of the financing for the project with bon ower providing at least 10%. 2) Funded project should create or maintain at least one job for every $10,0001ent. 3) Project must be eligible under Title I of the Housing and Community Development Act of 1974. A complete listing of the loan program guidelines a.re as set forth in the document entitled, "Town of Pulaski UDAG Revolving Loan Fund Guidelines," which is on file in the office of the Director of Economic Development of the Town of Pulaski, Virginia. 2) Rezoning Fee Waiver -Businesses locating to or within the zone will receive a waiver from foes associated with all three componerrts of the rezoning process. Fee waived are as follows: 1) $75 flat fee, 2) cost of legal advertisement estimated at $100 and 3) cost of certified mailings to adjacent property owners estimated at $20. Note: This does not exclude the business from complying with all rezoning procedures. 3) Building Permit Fee Waiver -Waiver of building permit fees up to $300 for business locating to or within the zone. This is intended to help reduce startup costs for • new businesses. Note: Businesses must still obtain a building pernut where applicable. 4) Utility Improvements Support -The town will consider, on a case by case basis, making business specific utility improvements within the zone. Maintenance, improvements and additional lines may be required by new businesses or in expanding current businesses. Case by case basis only to businesses creating a minimum of 25 permanent jobs. Town reserves the right to make all, partial or no utility improvements in each case. 5) Rehabilitated Real Estate Tag Abatement - A tax exemption on the increase in assessed property value resulting from rehabilitation of commercial and industrial buildings. This will enhance the option of reusing older buildings of which many are designated historic structures within our commercial historic district. Limitations on Applicability: 1) Rehabilitation costs must be at least $10,000, 2) five year period, and 3) must follow commercial historic district guidelines if applicable. 6) Business Occupation License Fee Rebate - A full rebate of occupational license fees for new business locating within the proposed zone. This is intended to help reduce startup costs for new businesses. Limitations on Applicability: Rebate will be given for first two years only. 7) Additional Machinery and Tools Tag Abatement - A tax exemption on the • increase in assessed machinery and tools tax resulting from the addition of machinery and tools used to expand existing operations. This will expedite expansion efforts by 302 reducing the capital costs. Limitations on Applicability: 1) Applies only to new businesses and 2) credit will be given for only the first three years. 8) New Machinery and Tools Tax Abatement - A fifty (50) percent tax exemption on the machinery and tools tax on new machinery placed in the proposed zone by a new business. This will expedite expansion efforts by reducing the capital costs. Limitations on Applicability: 1) Applies only to businesses currently located in the zone and 2) credit will be given for only the first three years. 9) New Building Tax Abatement -Fifty (50) percent tax credit on the assessed value of a new building within the zone. This will allow businesses that are unable to find satisfactory space in existing buildings to build new structures to accommodate specialized needs and square feet requirements. Limitations on Applicability: 1) Building construction costs must excced $50,000 and 2) credit for first three years only. 10) Fire Prevention Assistance -New or existing businesses within the zone can request the town's Fire Department to visit their site and assess the fire prevention program. Furthermore, specific fire prevention opportunities will be discussed. 11) Temporary Office Space -New companies locating in the New River Valley, in which the Town of Pulaski is located, will be given free office space at the New River • Community College's (NRCC) Center for Economic Development in Edwards Hall, if available. Limitations on Applicability: Use and availability of this space will be determined by NRCC with occupancy not to exceed one year. 12) Accelerated Development Assistance -Businesses locating to or within the zone will receive one-stop fast-track business development assistance including permit processing, zoning and rezoning information and any other development services. The town's economic development staff will be called to assist applicants who are within the zone when they arrive. 13) Real Estate Market Assistance -The Department of Economic Development will create a database of real estate properties within the proposed zone and develop an on- line GIS database. All real estate inquiries to this department will receive customized listings and information, and enterprise zone information including incentives. 14) Crime Prevention Assistance -New or existing businesses within the zone can request the town's Police Department to visit their site and assess the crime prevention program. Furthermore, specific crime prevention or public safety problems will be discussed. 15) Architecture Design Assistance -The town will reimburse businesses up to $250 of their architectural design costs when making major exterior rehabilitation's to a historic structure. This will reduce the cost of renovating a historic commercial structure and aid in revitalizing this area. Limitations on Applicability: 1) Architecture • Review Board approval is needed in advance, 2) rehabilitation must exceed $10,000 and 3) architectural design costs must exceed $1,000. 303 16) Landscape Design Assistance -The town will reimburse businesses up to $250 of their landscape design costs with the addition of new landscaping. This will further beautify the area increasing tourism appeal and local pride. Limitations on Applicability: 1) Architecture Review Board approval is needed in advance, 2) landscaping costs must exceed $5,000 and 3)landscaping design costs must exceed $500. 1'n Labor Pool and Demographic Information -Businesses can request customized demographic and labor pool information reports. Information will be provided in either paper or computer disk form. This information will help companies remain competitive by assessing local market conditions and trends. Limitations on Applicability: Two requests per year. 18) Housing Rehabilitation Loan Program -Residents who's housing is located within the proposed zone can apply for low interest housing rehabilitation loans. This will allow low to moderate residents an economical means of improving their living conditions. Limitations on Applicability: 1) Loan amounts will not exceed $10,000, 2) rehabilitation plans must be approved in advance by the town, 3) funds limited to available funding and 4) must qualify for and adhere to Community Development Block Crrant housing guidelines.. • 19) Housing Rehabilitation Tax Abatement - A tax exemption on the increase in assessed property value resulting from rehabilitation of residential buildings. This will allow residents an expense relief period between paying for a rehabilitation and the increased taxes associated with this endeavor. Limitations on Applicability: 1) Rehabilitation costs must be at least $5,000, and 2) the abatement is for a five year period. 20) Elderly and Disabled Citizen Real Estate Tax Relief - Up to 80 percent of elderly and disabled citizen's real estate tax is credited if criteria is met. Limitations on Applicability: 1) At least 65 years of age or permanently or totally disabled and 2) have a net financial worth under $45,000 (excluding home and up to one acre of land) and a gross income under $15,000. A complete listing of program guidelines can be obtain through the County of Pulaski Commissioner of Revenue. 21) Economic Development Stimulus Program -The program returns half of the increase in real estate and machinery and tools takes, from the county, over aten-year period for plant expansions. This promotes existing industries to expand within the area. Limitations on Applicability: 1) Case by case basis only to businesses creating a minimum of 100 new permanent jobs and 2) prior approval from the county. Section 5 Application Local Any business firm seeking to receive local Enterprise Zone incentives shall make • application to the Enterprise Zone Administrator on forms provided by the Town of Pulaski Department of Economic Development. The Enterprise Zone 304 • Administrator may require the business firm to provide documentation establishing that said business firm has met the requirements for the receipt of local Enterprise Zone incentives. Failure to provide requested documentation shall result in a denial of the business firm's application for local incentives. Upon approval of any business firm application for local Enterprise Zone incentives, the Enterprise Zone Administrator shall submit a written report to the Town Manager indicating the name and address of the qualifying business firm, and the local Enterprise Zone incentives for which it is qualified. The Enterprise Zone administrator may require the business firm to provide additional documentation from time to time to assure that said business firm retains the requisite qualifications for the receipt of local Enterprise Zone incentives. In the event that any business firm shall fail to maintain the requisite qualifications for the receipt of local Enterprise Zone incentives, the Enterprise Zone Administrator shall inform the business firm in writing that it is no longer qualified for the receipt of local incentives, and shall send a copy of said notice to the Town Manager. • State Application for all state incentives, except the job grants, are sent directly to the Commonwealth of Virginia Department of Housing and Community Development. The Town of Pulaski Enterprise Zone Administrator will assist firms with Enterprise Zone forms and other information as needed. Job grant applications will be submitted to the Town of Pulaski Enterprise Zone Administrator, verified, and then sent to the Department of Housing and Community Development. Section 6 Enterprise Zone Administrator The Town of Pulaski Enterprise Zone Administrator shall be the Town of Pulaski Director of Economic Development. This Ordinance is effective as of March 19, 1996 and is adopted this 19th day of March, 1996. John Johnston A~- Lane R. Penn Awe Bettye Steger A-3~ W.H. Schrader, Jr. ~~ • ATTEST: Ru Harrell Clerk of Council Roy H. D' Ardenne, Jr. Aye W. Edgar Hale Aye Alma H. Holston Aye Elbert G. Black Aye By Andrew L. Graham, Mayor 305 I, Ruth A. Harrell, Clerk of the hereby certify that the foregoing Code to Establish Enterprise Zone Ordinance set out and adopted by Council on March 19, 1996. Council of the Town of Pulaski, Virginia, do Ordinance No. 96-4 to Amend the Town of Pulaski Incentives is a true and correct copy of the the recorded vote of the Town. of Pulaski Town Rut A. Harrell, Clerk of Council •