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HomeMy WebLinkAbout96-29Ordinance No. 96-29 i Ordinance Amending Ordinance 96-4 Ordinance to Amend the Town of Pulaski Code to Establish Enterprise Zone Incentives • Adopted: November 19, 1996 Effective: January 1, 1996 • 376 Ordinance No. 96-29 • Ordinance Amending Ordinance Number 96- 4 An Ordinance to Amend the Town of Pulasla 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: Anew 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. 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 crnnmercial banking. Funds can be used for acquisition or r•~ovation of buildmgs, 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 borrower providing at least 10%. 2) Funded project should create or maintain at least one job for every $10,000 legit. 3) Project must be eligible ugrdes Title I of the Housing and Community Development Act of 1974. A complete listing of the loan program guidelines are 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 fees associated with all three components of the rezoning process. Fee waived are as follows: 1) $75 flat fee, 2) cost of legal advertiserrrerrt 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 irrterrded to help reduce startup costs for new businesses. Note: Businesses must still obtain a building permit where applicable. • 4) Utility Improvements Support -The town will cAnsider, on a case by case basis, making business specific utility improvements within the zone. Maintenance, improvements and additional litres 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) Rebabiiitated Real Estate Tax Abatement - A tax excm on the increase in assessed properly value resulting from rehabilitation of commercial and industrial buildings. This will enhance the option of reusing older buildings of which marry 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 comme'r'cial historic district guidelines if applicable. 6) Business Occupation License Fee Rebate - A full rebate of occupational license fees far new business locating widen the proposed zone. This is intended to help reduce startup costs for riew businesses. Limitations on Applicability: Rebate will be given fcx' first two years only. 7) 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 requiremerrts. Limitations on Applicability: 1) 37P • Building construction costs must exceed $50,000 and 2) credit for first three years ~Y• 8) Fire Preverrtion Assistance -New or existing businesses within the zone can request the town's Fire Deparhneart to visit their site and assess the fire prevention program. Furthermore, specific fire prevention opportunities wsll be discussed 9) 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) Cearte~ for Economic Devekopment in Edwards Hall, if available. Limitations on Applicability: Use and availability of this space will be de~nined by NRCC with occupancy not to exceed one year. 10) Accelerated Devebpmerrt 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. 11) Real Estate Market Assistance -The Impartment of Economic Development will create a database of real estate properties within the propt>sed 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. • 12) Crime PYevention 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 13) 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. 14) 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 arvd local pride. Limitations on Applicability: i) Architecture Review Board approval is needed in advance, 2) landscaping costs must exceed $5,000 and 3)landscaping design costs must exceed $500. 15) Labor Pool and Demographic Information -Businesses can request customized demographic and labs 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. ~1~ • 16) 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 amowrts 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 Grant housing guidelines.. 17) Housing Rehabilitation Taz Abatement - A tax exemption on the increase in assessed property value resulting from rehabilitation of residential buiklmgs. This will allow residents an expense relief period between paying for a rehabilitation and the increased taxes associated with this endeavor. Limitations ~ Applicability: 1) Rehabilitation costs must be at least $5,000, and 2) the abatement is for a five year period. 18) Elderly and Disables Citroen Real Estate Taz Relief - Up to 80 percent of ek~ly 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. • 19) Economic Devebpment Stimulus Program -The program returns half of the increase in real estate and machinery and tools taxes, from the rounty, 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 creatixig a minimum of 100 new permanent jobs and 2) prior approval frown the county. Section 5 Application Local Any business fum 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 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 fait to maintain the requisite qualifications for the receipt of local Enterprise Zone • incentives, the Enterprise Zone Administrator shall inform the business firm in 3~0 • 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 January 1, 1996 and was originally adopted on the 19th day of March, 1996 and readopted this 19th day of November, 1996. John Johnston _ Aye • Lane R Penn Aye Bettye Steger Aye W.H. Schrader, Jr. A_v __e W. Edgar Hale gy~_ James M. Neblett A3TP Pauline G. Mitchell A 3~ Charles W. Stewart A~7a By,l~ ~ Andrew L. Graham, Mayor ATTEST: G • ..9~dR~L~'Q Ru Harrell Clerk of Council • ~ ~! I, Ruth A. Harrell, Clerk of the Council of the Town of Pulaski_ Virginia, do hereby certify that the foregoing Ordinance No. 96 29 is a true and correct copy of the ordinance set out and adopted this 19th day of November, 1996.