Chapter 3.45
ENTERPRISE ZONE
Sections:
3.45.010 Statement of purpose.
3.45.020 Boundaries and date established – Transition – Termination date.
3.45.030 Definitions.
3.45.040 Deferral of assessed property value.
3.45.050 Certain grant incentives.
3.45.060 Other certain incentives.
3.45.070 Other incentives established by regulation.
3.45.080 Designation of enterprise zone administrator.
3.45.090 Application for incentive created herein.
3.45.100 Validity.
3.45.110 Termination date.
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 – Termination date.
(1) The boundaries of the Staunton enterprise zone are as set forth on the map entitled “Staunton Enterprise Zone (with 2008 Expansion),” dated January 1, 2008, 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, 2008, is established and designated effective January 1, 2008, 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 (with 2008 Expansion),” dated January 1, 2008, the benefits provided herein in SCC 3.45.040, 3.45.050 and 3.45.060, and the regulations promulgated under SCC 3.45.070, shall be measured from January 1, 2008.
(3) Any application made on or after January 1, 2007, 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, 2007. Any application made before January 1, 2007, 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, 2007. 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, 2007, shall be eligible for benefits allowed by the city under the provisions of this chapter in effect as of January 1, 2007, 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, 2007.
(4) The entire enterprise zone shall terminate on December 31, 2009. (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 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 and 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 work days for such employee.
(4) “Full-time employee” means an employee of a zone establishment and 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 or the immediate family of any partner, member or shareholder in the new business firm.
(5) “Immediate family” means the spouse, brothers, sisters, or children of a partner, member, or shareholder of a new business firm.
(6) “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.
(7) “New business firm” means a business firm which begins and continues the operation of a trade or business establishment within a zone after the date of zone designation; and it shall include a business firm with a trade or an establishment that may have been within a previously designated zone but which by bona fide, arm’s-length transaction becomes owned by another person, firm or corporation in which the previous partners, members, or shareholders or any immediate family member has no interest. (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 assessed property value.
(1) Any business firm which makes repairs, renovations or other structural or interior improvements to the industrial or commercial property owned by it in the enterprise zone, by 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 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 shall be eligible for the deferral provided hereunder unless:
(a) The required building permits have been obtained;
(b) The business firm 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. (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 new business firm in good standing shall be eligible to apply for one or more of the following specific grants from the industrial development authority (IDA) of the city of Staunton, to the extent not inconsistent with the terms of a contribution agreement to be entered into between the IDA and the city, in amount(s) equal to:
(a) One thousand dollars a year for not more than each of three years for the employment of an employee of a zone establishment for at least 20 hours during the new business firm’s weekly payroll period, provided:
(i) The time worked by such employee totals not less than 1,000 hours during the new business firm’s taxable year;
(ii) The individual does not have an equity stake and is not a volunteer or immediate family, any partner, member or shareholder of the new business firm;
(iii) 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
(iv) The new business firm has not applied in the same year for the $2,000 grant provided below;
(b) Two thousand dollars a year for not more than each of three years for the employment of at least two full-time employees of a zone establishment, provided:
(i) Each such employee earns at least 300 percent of the federal minimum wage; and
(ii) The new business firm has not applied in the same year for the $1,000 grant provided above.
(2) A business firm in good standing with operations located in an enterprise zone shall be eligible to apply for one or more of the following specific grants from the industrial development authority (IDA) of the city of Staunton, to the extent not inconsistent with the terms of a contribution agreement to be entered into between the IDA and the city, in amount(s) equal to:
(a) One hundred percent of the fees for building, plumbing, electrical, mechanical, sign, special use, and zoning permits, water and sewer connection fees collected by the city as to the business firm’s property located in an enterprise zone, but excluding fire suppression connection fees, provided:
(i) A final certificate of occupancy has been issued by the city; and
(ii) At least one water and sewer account has been activated for the property;
(b) Fifty percent of the machinery and tools tax collected by the city for a period of five years when such business firm has increased its average number of full-time employees of a zone establishment by at least 10 percent but by no fewer than three new full-time employees of a zone establishment over the average number of its full-time employees of a zone establishment in the calendar year immediately prior thereto, provided such employment is continuously maintained without any interruption for the five-year grant period. Such grant shall immediately terminate upon such business firm’s relocation outside the enterprise zone.
(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. (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.
The city manager shall provide for new business firms the following:
(1) Marketing through the office of economic development;
(2) A horticulture group workshop for new business firms through the city department of parks and recreation;
(3) An awards program to recognize new business firms which undertake major renovations of property or create significant new jobs in the enterprise zone through the economic development department; and
(4) Other incentives consistent with the provisions of SCC 3.45.070. (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).
3.45.090 Application for incentive created herein.
New 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. 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, 2009. (Ord. 2006-23. Code 1985, § 12-201; Ord. 5-24-90; Ord. 3-14-91, § A).