Governor Warner Announces New Enterprise Zones
Governor Warner Announces New Enterprise Zones
Bedford, Hampton, Hopewell, Petersburg, Lee County, and Wythe County receive enterprise zones to attract new businesses and jobs
Governor Mark R. Warner today designated new enterprise zones in the cities of Bedford, Hampton, Hopewell, and Petersburg and in Lee County and Wythe County. These six zones are the first to be designated under the newly restructured Virginia Enterprise Zone program. Each locality will use state and local enterprise zone incentives to help create new jobs, promote private investment, and improve the overall economic growth.
"This is another important step toward creating more jobs and more opportunities in Virginia's distressed communities," said Governor Mark Warner. "The restructured Virginia Enterprise Zone program targets enterprise zones to communities that need them most. The changes also increase accountability of state incentives to maximize and protect the Commonwealth's investment in new jobs and new businesses."
The Virginia Department of Housing and Community Development administers the Virginia Enterprise Zone program. Enterprise zones support job creation and private investment by providing state and local financial incentives and tax relief to qualified businesses and investors. The program has supported $655 million in private investment and the creation of more than 37,700 jobs since 1995.
"The Commonwealth's Aaa bond-rating, low tax rates, and skilled workforce help make Virginia an excellent place for business," said Secretary of Commerce and Trade Michael J. Schewel. "The new enterprise zone benefits give Virginia's more distressed communities an additional tool to attract business, so that they too can participate in the economic growth that has benefited so much of the Commonwealth."
The six designations mark the first zones to be designated under the restructured program, which went into effect July 1, 2005. The zones are designated for 10 years and can be renewed for up to two, five-year periods. Previously enterprise zones were designated for 20 years. All zones designated prior to 2005 will expire at the end of their 20-year period.
The Virginia Enterprise Zone program started in 1984. When program regulations sunset in 2004, the Warner Administration changed the program to target zones to distressed communities, promote transparency by reflecting the cost of enterprise zone grants in the state budget, and improve accountability by switching from tax credits to grants. The new grant system will also promote flexibility and benefit businesses unable to use the prior tax credit incentives. Performance grants will be based on new job creation and investment.
The Department of Housing and Community Development (DHCD) received applications from nine localities. The designations to the cities of Bedford, Hampton, Hopewell, and Petersburg and in Lee County and Wythe County were made after a competitive application process. This marks the first ever enterprise zone in Lee County. The designations will be retroactive back to January 1, 2005.
"The enterprise zone program has a long and successful history in business growth and job creation," said Bill Shelton, DHCD Director. "The program's new features will enhance our ability to bring zone incentives to areas that are in the greatest need of the program and are able to make the most of the program's benefits."
For more information about the VEZ program call (804) 371-7030 or go to the DHCD Web site.
http://www.governor.virginia.gov/Press_Policy/Releases/2005/Sep05/0919.htm