Types of Incentives Available
(Cont.)
Qualifying for Incentives
In order to qualify for incentives, the proposal must meet at least one of the following criteria: · Capital Investment by a New Business of at least $500,000 · Capital Investment by Existing Businesses of at least $250,000 · Creation of Additional Employment at a minimum salary level of 20% above the County’s current Average Income level · The Location or Expansion of a Targeted Business Incentives will only be made available for office, industrial and manufacturing style prospects, except in those cases involving the expansion of an existing business. When evaluating an existing business that does not meet the above criteria, the County will consider the following items: · · · · Length of time company has been located in the County Potential increases in tax revenue to the County The proposed project’s impact to surrounding areas Potential benefits the proposed project may provide for the County.
· Infrastructure Improvement Fund – designed to provide assistance with infrastructure improvements for new development projects. Funds will be provided through the Economic Development Opportunity Fund and may be used for site and infrastructure construction or improvements. ·Application to the Governor’s Opportunity Fund – the County will assist with the application to the Governor’s Opportunity Fund and will consider matching any award from the fund, up to $100,000. Additionally, the County will work closely with the Virginia Economic Development Partnership and the Virginia Department of Business Assistance to identify other potential assistance opportunities that may be available from the state. In select cases, the County may provide matching funds to state incentives. The total value of the incentive will be tied to the expected rate of return from generated revenues for the County over a three year period. This timeframe may be extended up to five years at the County’s discretion. All financial incentives will be tied to performance milestones that the prospect must meet. A Clawback Provision may be written into all financial incentive agreements, at the County’s discretion.
Spotsylvania County
Guide to Business Incentives
Spotsylvania County Government
COUNTY ADMINISTRATION
There is no Merchant’s Capital Inventory Tax in Spotsylvania and manufacturers do not pay a Business License Tax.
9104 Courthouse Road, PO BOX 99 Spotsylvania, VA 22553 Phone: 540-507-7010 Fax: 540-507-7019 Email: cadmin@spotsylvania.va.us
DEPARTMENT OF ECONOMIC DEVELOPMENT
10304 Spotsylvania Avenue, Suite 440
Fredericksburg, VA 22408
Phone: 540-507-7210 Fax: 540-507-7207 Email: economicdevelopment@spotsylvania.va.us
Revised August 17, 2006
Introduction
There are many factors that make Spotsylvania County a good location for business. Its strategic location, highly skilled and productive workforce, excellent quality of life and pro-business climate are just a few of the assets Spotsylvania County has to offer. This guide focuses on local incentive programs. Additional incentives may be available from the state to further reduce the cost to the prospect. To support its pro-business climate, Spotsylvania County offers a number of potential incentives that may be considered. Incentives include financial assistance, infrastructure development, tax credits and exemptions, marketing assistance and customized training assistance. These performance-based incentives, which may be available to both new and existing businesses looking to expand, are designed to promote business growth and reduce the costs of opening or expanding a business in Spotsylvania County.
Types of Incentives Available
The following is a list of potential business development incentives that may be considered for a project. Each project and situation will be evaluated separately and incentive packages will be tailored to fit the specific needs of the company.
· Interest Free or Low Interest Loans – used for capital investment, such as the purchase of real property or for the leasing of equipment, fixtures and inventory. Interest rate and payback period will be set by the County, based on the company’s needs. · Payment of Water and Sewer Connection Fees – available in cases where water and sewer service needs to be extended or capacity increased to a particular location. · Payment of Development Review and Permitting Fees –fees payable to the County for the development and review of submitted plans and for required permits may be drawn from the Economic Development Opportunity Fund. · Escrow Fee Deference – defer the collection of fees on speculative office and industrial facilities (to include “flex space”) until the facility is at least 50% occupied. · Training Assistance – by partnering with local educational institutions and the Virginia Employment Commission, training programs may be developed, tailored to fit a particular company’s needs. · Site Acquisition and Preparation – a Grant of up to $100,000 to be drawn from the Economic Development Opportunity Fund to be used specifically for site development costs (including grading, drainage, paving and utility extension); transportation access improvements; the extension of water and sewer lines and connection fees and development review and permit fees. This assistance is only available to businesses which do not qualify for the state’s Governor’s Opportunity Fund.
Types of Incentives Available
(Cont.)
· Industrial Development Revenue Bonds – tax exempt bonds used to assist businesses with the purchase of land, buildings or equipment. Bonds are issued through the Spotsylvania County Economic Development Authority. · Rebate of Taxes – provide a percentage of the local sales tax revenue for the expansion of an existing business, for the redevelopment of an existing facility or for a new prospect location. A cap on the total amount of this assistance will be set and payments may be spread over a period of up to five years. · Marketing of Vacant Facilities – designed to assist existing Spotsylvania County businesses which are relocating from one existing County location to another. This assistance will include, but is not limited to, placing the vacant site on the County’s website, as well as making certain that the site is listed with both the Fredericksburg Regional Alliance and the Virginia Economic Development Partnership. ·Fast Track Development Review, Permitting and Inspections – the priority processing of site and building plans for targeted industries. This 30-day approval process may also include a reduction in site plan and site development fees. Early grading and footing and foundation permits allow for site work to begin while the final site and building plans are being reviewed. ·Existing Industry Investment Grant – designed to encourage the continued investment and expansion in the County by an existing business. Funds may be used for modernization, adding capacity, facility or site expansion or training of additional employees. Companies must have been operational in the County for at least five years and must at least maintain current and stable employment levels.