At its April 23 meeting, the Henrico Board of Supervisors approved a resolution that would make changes to the Henrico portion of the City of Richmond North/Henrico County Enterprise Zone by removing about 166 acres of residential developments and government-owned property and adding 194 acres of commercial and industrial properties that will become eligible for incentives. Enterprise zones enable localities to target areas – typically older commercial locations – for redevelopment, using local and state incentives.
The Enterprise Zone, created in 2003, is currently 3,793 acres. During the past three years, Henrico businesses within the zone have received more than $8.6 million in direct financial benefits.
“The enterprise zone is an important component of the county’s economic development and commercial revitalization program,” explained Henrico Community Development Manager David Sacks.
Another change would increase the maximum grant size allowed for businesses and remove certain incentives that are now offered countywide. The changes now need approval from the Richmond City Council (expected in June) before submission to the Virginia Department of Housing and Community Development for final approval. Property owners who would be affected by the changes already have been notified.
In another matter, the board introduced an ordinance that would increase the threshold for business license taxes, meaning businesses earning between $500,000 and $1,000,000 would not have to pay license taxes. (Currently, only businesses earning less than $500,000 qualify for the exemption.) Businesses earning more than $1 million would be able to deduct $1,000,000 before calculating their license taxes. The board will vote on the change during its May 28 meeting.
