Title
Virginia Enterprise Zone Update
Purpose
PURPOSE/BACKGROUND:
Update to provide familiarization with the Virginia Enterprise Zone Program and recent activity within Hampton's zones.
Discussion:
The Virginia Enterprise Zone (VEZ) initiative is a collaboration between the Commonwealth of Virginia and local governments, aimed at boosting job creation and investment in real property. This program seeks to stimulate economic growth and rejuvenate economically challenged areas at both local and regional levels. The program should complement other local, state and federal economic development activities to create an improved climate for private sector investment, development and expansion within the targeted areas. An enterprise zone is not intended to be a stand-alone program nor a single "intervention" instrument.
Originating in 1982, VEZ began as a tax credit initiative. Subsequently, the Enterprise Zone Grant Act of 2005 replaced the prior tax credit benefits with two new grants: the Real Property Investment Grant (RPIG) and the Job Creation Grant (JCG). These grants are tied to performance, necessitating companies to meet specific job creation criteria and/or complete real property investments before becoming eligible for grant consideration. The tax credit program reached its official conclusion in 2019
Virginia comprises 45 enterprise zones, covering approximately 245 square miles. These zones are located within 21 cities, 34 counties and 12 towns. In the 2024 Grant Year, 18 out of the 45 zones have been categorized as joint zones, which includes zones designated jointly by counties and towns before 2005. Additionally 12 localities, Hampton being one of them, have two enterprise zone designations.
Impact:
Hampton's utilization of its two Enterprise Zones which offers access to state and local incentives, serves as a key component to the department's incentive portfolio. Hampton's zones geographically align with our master plans allowing us to further both new development and redevelopment opportunities tied to Council policy initiatives as well as the Strategic Plan elements of the Community Plan. In the 2024 Grant Year, eight grants were awarded to Hampton companies valued at $701,357.18.
Recommendation:
Rec
Receive briefing, no action is required of Council.
Body
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