[HISTORY: Adopted by the Board of Supervisors
of Warren County as indicated in article histories. Amendments noted
where applicable.]
[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:
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]
The County of Warren, Virginia.
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]
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]
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]
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]
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]
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:
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:
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.
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.
The County of Warren, Virginia.
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).
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.
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.
