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Council hears proposed Enterprise Zone boundary expansion, revised incentives; public hearing held
Summary
Economic development staff proposed amendments to Staunton’s Enterprise Zone—adding West End and other commercial areas while removing mostly residential parcels—and recommended five revised incentive programs to increase utilization; council opened and closed a public hearing and will consider ordinances at a future meeting.
Jessica Blythe, assistant director for economic development, presented proposed amendments to the City of Staunton Enterprise Zone at the Sept. 25 meeting, recommending boundary changes and a new, simplified set of incentives aimed at increasing local use of the program.
Blythe told council enterprise-zone incentives in Staunton have been underutilized and that previous incentive language and boundary configurations dated to 2010–2016. She said the proposed changes would prioritize commercial and industrial parcels—especially along West Beverly and Churchill Avenue—while removing 180 parcels (mostly residential) that are not eligible by right. The proposal adds three noncontiguous zones, increases inclusion of full parcels where only partial parcels had been in the zone previously, and aligns the zone with recommendations from the West End plan.
Blythe outlined five proposed incentive categories: a consolidated large-business investment incentive aimed at manufacturing and major capital investment; a façade-renovation grant (up to $10,000 per project with preapproval); a small-business technology and training grant (up to $5,000, 25 percent could be used for training); a job-creation performance grant intended to support wage and training incentives for new hires; and a marketing support grant (up to $2,500, reimbursing 100 percent if a Staunton vendor is used).
Blythe said DHCD (the Virginia Department of Housing and Community Development) reviewed the draft and provided preliminary approval to present the amendments to council; she said the city’s existing local property-tax rehabilitation program would remain and that the enterprise-zone property-tax exemption was not included in the new incentives package to avoid duplication.
She described outreach: stakeholder meetings, business surveys, and coordination with the Economic Development Authority and local partners. She noted the enterprise-zone program budget is currently $20,000 (down from $50,000 in the past) and acknowledged that if take-up increases staff will likely seek larger appropriations in future budget cycles.
Council opened a public hearing on the amendments. Rebecca Bennett of 920 West Beverly Street spoke and asked about removal of a parcel and its effect; Blythe said staff had notified affected property owners of proposed boundary removals and would follow up. No hands were raised on Zoom, the public hearing was closed and Blythe said the item will return to council at the next meeting with ordinances and required materials for formal consideration.
Why it matters: Enterprise-zone incentives can lower barriers to capital investment, façade improvement, job creation and business marketing. Staunton’s proposal focuses incentives toward commercial activity, aligns zoning with the West End development strategy and aims to simplify and promote available grants so more local businesses will apply.
What’s next: The city will prepare ordinances and a locality agreement for council consideration at a future meeting; staff also plans mailings, information sessions and coordination with local business groups to publicize the revised incentives if council adopts the amendments.
