Warren County, VA
 
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Board of Supervisors of Warren County as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Subdivision of land — See Ch. 155.
Taxation — See Ch. 160.
Zoning — See Ch. 180.
[Adopted 11-15-1993; amended in its entirety 1-7-1997]
This article shall be known and may be cited as the "Warren County Enterprise Zone Ordinance."
[Amended 8-18-2015[1]]
The Virginia Enterprise Zone Grant Act, § 59.1-538 et seq., of the Code of Virginia, as amended, authorizes the County of Warren to make written application to the Department of Housing and Community Development for the declaration of an area within the County as an enterprise zone. It is the purpose of the Enterprise Zone Act, and of this article, to stimulate business and industrial growth within the area so designated as the Front Royal Enterprise Zone by means of state income tax credits, state sales tax exemptions and local incentives more particularly set forth herein.
[1]
Editor’s Note: This ordinance also provided that it be effective 9-1-2015.
[Amended 8-18-2015]
The boundaries of the Front Royal Enterprise Zone are as set forth on that map titled "Front Royal Enterprise Zone" which is on file in the office of the County Administrator, and includes those properties shown on the map within the Royal Phoenix Business Park site (former Avtex site), the Old Virginia Industrial Park, Royal Village commercial and residential properties, and Viscose City properties. It is the purpose of this article to help stimulate real property improvements and new job creation by, among other things, one or more of the following: the reduction of permit fees; the reduction of user fees; the reduction of business, professional and occupational license tax; partial exemption from taxation of substantially rehabilitated real estate pursuant to Virginia Code § 58.1-3221; adoption of a local enterprise zone development taxation program pursuant to Article 4.2 of Chapter 32 of Title 58.1 of the Code of Virginia; and by other local incentives as allowed by Virginia Code § 59.1-543.
As used in this article, the following definitions shall apply:
BUSINESS FIRM
Any business entity authorized to do business in the Commonwealth of Virginia, including those entities subject to the state income tax on net corporate rate income (§ 58.1-400 et seq., Code of Virginia), or a public service company subject to a franchise or license tax on gross receipts; or a bank, mutual savings bank or savings and loan association; or a partnership or sole proprietorship. A 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 taxes as partnerships or corporations, and includes limited liability companies, the taxable income of which is passed through to and taxed on individual partners and shareholders. However, a business firm does not include organizations which are exempt from state income tax on all income except unrelated business taxable income as defined in the Federal Internal Revenue Code, 26 U.S.C. § 512, nor does it include homeowners' associations as defined in the Federal Internal Revenue Code, 26 U.S.C. § 528.
[Amended 8-18-2015]
COUNTY
The County of Warren, Virginia.
ENTERPRISE ZONE
The Front Royal Enterprise Zone, an area declared or to be applied for declaration by the Governor of the Commonwealth of Virginia to be eligible for the benefits accruing under the Virginia Enterprise Zone Act, Virginia Code § 59.1-539 et seq.
[Amended 8-18-2015]
EQUIVALENT EMPLOYMENT OR JOB
Forty hours per week of an hourly week (or the salaried equivalent). A single equivalent job may be represented by one employed individual, or by multiple employed individuals whose aggregate hours of employment (or salaried equivalent) equal 40 hours per week.
[Amended 8-18-2015]
EXISTING BUSINESS
Any business firm operating or located within the Enterprise Zone on September 1, 2015, or within the County of Warren prior to its location within the Enterprise Zone. A business which retains the same ownership and which was operating or located within the Enterprise Zone on September 1, 2015, or within the County of Warren prior to location within the Enterprise Zone shall not be defined as a new business, even if the name or entity (corporate or otherwise) has changed.
[Amended 8-18-2015]
LOCAL GRANT
A grant program developed by and administered through the Front Royal-Warren County Economic Development Authority with the prior approval of the Board of Supervisors.
[Amended 8-18-2015]
NEW BUSINESS
A business firm operating within the Enterprise Zone after September 1, 2015, having had no prior business located within the County of Warren.
[Amended 8-18-2015]
TOWN
The Town of Front Royal, Virginia.
[Amended 8-18-2015]
A. 
In order to qualify for any local incentives under this article, a business firm must be a new business located within the boundaries of the Enterprise Zone, and not an existing business, and must provide the following [and thereby, upon the accomplishment of Subsection A(1) and (2), below, hereinafter become a "qualified business" for purposes of this article]:
(1) 
Said new business firm must provide and hire in said business at least 25 full-time equivalent jobs. Said employment shall represent new jobs, not positions previously established within the town's corporate limits.
(2) 
Said new business firm must invest a minimum of $500,000 in the rehabilitation, renovation, new construction or other building or site improvements in said new business in the Enterprise Zone.
[Amended 8-18-2015[1]]
A. 
Building permit fee incentives. Qualified business firms located within the Enterprise Zone shall be entitled to a reduction of 50% of building permit fees if applicable applied for during the first five years that the qualified business firm is located within the Enterprise Zone.
B. 
Rehabilitated real estate tax exemption. Qualified business firms located within the Enterprise Zone shall receive a rehabilitated real estate tax exemption on the increase in assessed property value resulting from rehabilitation of commercial and industrial real estate and facilities, if applicable, which qualify under the provisions of Virginia Code § 58.1-3220, as amended. The rehabilitated real estate tax exemption shall be extended for a five-year period, upon application showing compliance with the qualifying requirements, on the following basis:
(1) 
An eighty-percent exemption the first year.
(2) 
A sixty-percent exemption the second year.
(3) 
A forty-percent exemption the third year.
(4) 
A twenty-percent exemption the fourth year.
(5) 
A twenty-percent exemption the fifth year.
C. 
Rebate credit of business and occupational license fees and exemptions from machinery and tools taxes, as applicable: Qualified business firms shall be entitled to such rebate credits and partial exemptions of business and occupational license fees and machinery and tools taxes as the Town of Front Royal may by ordinance provide.
D. 
Water and sewer connection charges (tap fee) and building permit fees incentives. Qualified business firms located within the Enterprise Zone shall be entitled to such reductions of municipal water and sewer connection charges (tap fees) as the Town of Front Royal by ordinance may provide.
E. 
Water and sewer line extension benefits. Qualified business firms located within the Enterprise Zone shall be entitled to such relief from assessment or cost for water and sewer line extensions to the property line of the business firm as the Town of Front Royal may by ordinance provide.
F. 
All license fees, building permit fees and water and sewer tap fees shall initially be paid in full by the qualified business firm. The qualified business firm shall then apply for an exemption or rebate credit hereunder, and, upon approval of the application, the qualified business firm will receive a credit on its prepaid fees.
[1]
Editor’s Note: This ordinance also provided that it be effective 9-1-2015.
[Amended 8-18-2015]
Any new business firm seeking to receive local Enterprise Zone incentives shall make application to the Enterprise Zone Administrator on forms provided by the Front Royal/Warren County Industrial Development Authority, dba the Economic Development Authority ("EDA"). The Enterprise Zone Administrator may require the new business firm to provide documentation establishing that said new 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 new business firm's application for local incentives. Upon approval of any new business firm application for local Enterprise Zone incentives, the Enterprise Zone Administrator shall submit a written report to the County Administrator 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 new business firm to provide additional documentation from time to time to assure that said new business firm retains the requisite qualifications for the receipt of local Enterprise Zone incentives. In the event that any new business firm fails to maintain the requisite qualifications for the receipt of local Enterprise Zone incentives, the Enterprise Zone Administrator shall inform the new 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 County Administrator.
The Enterprise Zone Administrator shall be the Executive Director of the Front Royal/Warren County Industrial Development Authority.
[Adopted 8-15-1995; amended in its entirety 1-7-1997]
The Virginia Enterprise Zone Act, § 59.1-270 et seq., 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 industrial growth within the area so designated as the Cedarville Enterprise Zone by means of state income tax credits, state sales tax exemptions and local incentives more particularly set forth therein. The business and industrial growth generated by the establishment of the Cedarville Enterprise Zone is intended to produce high-quality, skilled jobs with good wages in order to provide quality employment opportunities to the citizens of Warren County.
The boundaries of the Cedarville Enterprise Zone are set forth on the map entitled "Map of Cedarville Enterprise Zone," which is on file in the office of the County Administrator of Warren County, Virginia.
As used in this article, the following definitions shall apply:
BUSINESS
A complete system, process or line of commercial, production, manufacturing or other industrial operations conducted by a business firm, which system, process or line functions with its own equipment and machinery, workforce and direct management, all three elements collectively being separate from and not interchangeable with those involved in any other system, process or line.
BUSINESS FIRM
Any business entity authorized to do business in the Commonwealth of Virginia and subject to the state income tax on net corporate rate income (§ 58.1-400 et seq., Code of Virginia); or a public service company subject to a franchise or license tax on gross receipts; or a bank, mutual savings bank or savings and loan association; or a partnership or sole proprietorship. A 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 taxes as partnerships or corporations, the taxable income of which is passed through to and taxed on individual partners and shareholders. However, a business firm does not include organizations which are exempt from state income tax on all income except unrelated business taxable income as defined in the Federal Internal Revenue Code, Section 512; nor does it include homeowners' associations as defined in the Federal Internal Revenue Code, Section 528.
COUNTY
The County of Warren, Virginia.
ENTERPRISE ZONE
An area declared by the Governor of the Commonwealth of Virginia to be eligible for the benefits accruing under the Virginia Enterprise Zone Act (§ 59.1-270 et seq., Code of Virginia).
LOCAL GRANT
A grant program developed by and administered through the Front Royal/Warren County Industrial Development Authority with the prior approval of the Board of Supervisors.
NEW BUSINESS
A business beginning operations within the Cedarville Enterprise Zone after July 1, 1995, having had no prior business location within the County of Warren for a period of more than 12 months. Additionally, after the initial five-year tax incentive and grant period, the tax incentives and credits associated with the Cedarville Enterprise Zone would apply only to newly created businesses in newly created facilities but not to expansions of existing businesses and facilities which previously benefitted from the initial five-year credit period.
A. 
In order to qualify as a qualified business firm for the purposes of this article and to be eligible for the following local incentives: local grants, business and occupational licenses, building permit fees and planning and zoning permit fees, a business firm must conduct at least one new business and locate within the boundaries of the Cedarville Enterprise Zone and meet the following two requirements:
(1) 
A new business must provide at least 25 full-time equivalent jobs. Said employment shall represent new jobs, not positions previously established for a period of more than 12 months within Warren County.
(2) 
A minimum investment of $2,500,000 must be expended in the development and/or new construction of building or site improvements in the Cedarville Enterprise Zone.
B. 
Any qualified business firm located in the Cedarville Enterprise Zone shall be entitled to receive such additional local incentives as may be conferred by the county.
C. 
An existing business as defined by this article shall not be eligible for benefits as provided herein.
A. 
Credit of business and occupational license fees. Qualified business firms shall be entitled to a credit of business and occupational license fees for a five-year period while the business firm is located within the Cedarville Enterprise Zone, upon application showing compliance with the qualifying requirements. During the first year following application approval, the business firm shall be entitled to an eighty-percent credit of its business and occupational license fees. During the second year, the business firm shall be entitled to a sixty-percent credit. During the third year, the business firm shall be entitled to a forty-percent credit. During the fourth year, the business firm shall be entitled to a twenty-percent credit, and, during the fifth year, the business firm shall be entitled to a twenty-percent credit.
B. 
Qualified business firms located within the Cedarville Enterprise Zone with the prior approval of the Board of Supervisors are eligible to receive a local grant from the Front Royal/Warren County Industrial Development Authority upon application therefor and acceptance therefor by such Authority and the entering into an agreement relating to such local grant.
C. 
Time period for incentives and grants. Qualified business firms may select the beginning date for the tax incentives and grant period to begin on January 1 in any year following the year of application approval. The time period for business and occupational license fees and grants (Subsections A and B above) shall run simultaneously. Any taxable expansions of or additions to a qualified business firm which occur during the second five-year period shall be eligible for the remaining period of the incentives and grants.
D. 
Building permit fee and planning/zoning permit fee incentives. Qualified business firms located within the Cedarville Enterprise Zone shall be entitled to a waiver of 50% of building, planning and zoning permit fees (with the exception of electrical inspection fees) for all work applied for during the first five years that the business firm is located within the Cedarville Enterprise Zone or other designated five-year period. The five-year period for this incentive may commence retroactively to the date of the first payment of a building, planning or zoning fee to the county by the business firm or to the same five-year period permitted in Subsection D above. This designation shall be made by the qualified business firm after application approval.
E. 
Taxes and fees. All taxes and license, building, planning and zoning fees shall initially be paid in full by the business firm. The business firm shall then apply for an exemption, and, upon approval of the application, the business firm will receive a credit from the county on its prepaid taxes and fees.
F. 
Accelerated review process. For a qualified business firm located within the Cedarville Enterprise Zone, the review process shall be accelerated as related to the necessary approvals/permits required from the Warren County Planning Commission and Board of Supervisors.
G. 
Technical assistance. The Front Royal/Warren County Economic Development Authority shall provide qualified business firms, located within the Cedarville Enterprise Zone, technical assistance in the preparation of financial packages and grant applications for public and private financing upon the business firm's request.
H. 
Labor pool information. The Front Royal/Warren County Economic Development Authority shall provide labor pool information to qualified business firms, located within the Cedarville Enterprise Zone, upon their request. Such labor pool information includes unemployment rates, educational achievement levels and similar statistical information.
Any business firm seeking to receive local Cedarville Enterprise Zone incentives shall make application to the Enterprise Zone Administrator on forms provided by the Front Royal/Warren County Economic Development Authority. Applications must be submitted no less than 60 days prior to the beginning of any calendar year for which tax incentives are being requested. The Enterprise Zone Administrator may require the business firm to provide documentation establishing that said business firm has met the requirements for receipt of local Cedarville 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's application for local Cedarville Enterprise Zone incentives, the Enterprise Zone Administrator shall submit a written report to the County Administrator indicating the name and address of the qualifying business firm and the local Cedarville 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 receipt of local Cedarville Enterprise Zone incentives. In the event that the business firm shall fail to maintain the requisite qualifications for the receipt of local Cedarville 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 County Administrator.
A. 
The Enterprise Zone Administrator shall be the Executive Director of the Front Royal/Warren County Economic Development Authority.
B. 
The provisions of this article shall be administered in a manner consistent with the Virginia Enterprise Zone Act (§ 59.1-270 et seq. of the Code of Virginia).
C. 
Any business firm may appeal a decision of the Enterprise Zone Administrator to the Warren County Board of Supervisors within 30 days of the date of the decision.
This article shall become effective immediately upon the official designation of the Cedarville Enterprise Zone by the Governor of the Commonwealth of Virginia pursuant to § 59.1-270 et seq., Code of Virginia.