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Virginia Enterprise Zone Program
Rewarding Investment – Revitalizing Community

The Virginia Enterprise Zone application site for grant year 2011 is now open The Enterprise Zone program is now accepting applications. To access instruction manuals, required forms, and to submit your application please visit the EZ Application Submission System.

*All application materials must be submitted to DHCD by April 2, 2012.* Electronic submission will close at 11:59 PM on April 2, 2012 and all hard copies must be post-marked no later than April 2, 2012

For more information about the Enterprise Zone Program, the Real Property Investment Grant (RPIG) or the Job Creation Grant (JCG), contact Lauren Fink at lauren.fink@dhcd.virginia.gov.


Established by the General Assembly in 1982, the Virginia Enterprise Zone program is a partnership between state and local government that stimulates job creation and private investment within designated areas throughout the state. Currently, Virginia has more than 50 designated enterprise zones.  See VEZ map


Virginia Enterprise Zones Announces How-to-Qualify Workshops
The Virginia Department of Housing and Community Development (DHCD) will hold two Virginia Enterprise Zone (VEZ) How-to-Qualify Workshops on the dates specified below. These workshops will provide detailed instructions on qualifying for the VEZ Real Property Investment Grant (RPIG) and the Job Creation Grant (JCG).  The workshops are free and open to the public. Below is a list of workshops that are currently being offered:

Thursday, January 19, 2012; 1:30-4 p.m. City Council Chambers, 116 W Beverley St. Staunton, VA, 24401.  (Parking directly behind City Hall in the Johnson Street Parking Garage)

Friday, January 20, 2012; 1-3:30 p.m. Portsmouth Partnership Briefing Center, 200 High St. Suite 203 Portsmouth, VA 23704 (Parking behind PPBC in the Middle Street Parking Garage)

Please register using the link below.  If you have questions, please contact Lauren Fink at Lauren.Fink@dhcd.virginia.gov or (804) 371-7121.

Register


Virginia Enterprise Zone Local Zone Administrators’ Web Conference
If you would like to review the presentation of the Local Zone Administrators’ Web Conference that was held October 26, 2011, you may click here.

To listen in on the audio recording of the Web Conference, click here.

Job Creation Grant Revisions

The Virginia Enterprise Zone (VEZ) job creation grant program was amended to change the eligibility for job grants in areas with unemployment rates that are equal to or more than one and one-half times the state average. Currently positions paying less than 175 percent of the federal minimum wage are not eligible for the job grants. The amendment to the statute will allow otherwise eligible businesses in high unemployment areas paying 150 percent of the federal minimum or $10.88 to receive grants. High unemployment area zones authorized by this new provision are listed below.

2011 Enterprise Zone High Unemployment Area Designated Communities

Brunswick County - Zone 32

Martinsville City - Zones 36 & 54

Carroll County - Zone 27

Mecklenburg County Zones 38 & 56

Chilhowie Town - Zone 51*

Patrick County - Zone 22

Clarksville Town - Zone 56

Petersburg City - Zones 10 & 47*

Covington City -  Zone 53*

Pittsylvania County - Zone 57

Danville City - Zones 1 & 57

Pulaski County Zones 25 & 40

Franklin City - Zone 18*

Pulaski Town - Zone 41

Halifax County - Zone 15

Saltville Town - Zone 51

Henry County - Zones 36 & 54

Smyth County - Zones 6 & 51*

Hillsville Town - Zone 27

South Boston Town - Zone 15

Hopewell City - Zone 9

South Hill Town - Zone 38

LaCrosse Town - Zone 38

Stuart Town - Zone 22

Lawrenceville Town - Zone 32

Wythe County - Zone 11

*The following communities in joint zones are NOT HUAs: Allegany County, Dinwidde County, Southampton County, Washington County, Clifton Forge Town and Glade Spring Town and businesses in these communities are not eligible for the reduced wage threshold. Source: DHCD based on the LAUS Unit and Bureau of Labor Statistics 2009 Annual Virginia Unemployment Report (May 2010)

Funding Allocation Revisions

The Virginia Enterprise Zone (VEZ) grant program was amended to allow Job Creation Grants (JCG) to receive funding priority. The amendment charges DHCD with fully funding the JCGs and thus they will not be subject to pro-ration. The remaining funds will be allocated to the Real Property Investment Grants (RPIGS) and the amount paid to each RPIG applicant will be pro-rated proportionally should the grant requests exceed the remaining amount of funding.

State Incentives

Two grant-based incentives are available, Job Creation Grants and Real Property Investment Grants. For more information on the grants’ eligibility criteria, see the Virginia Enterprise Zone grant information table

  • Job Creation Grants are based on:
    • Permanent full time job creation over a four job threshold, exceeding threshold wage rates* , and the availability of health benefits;
    • Personal service, retail, food and beverage positions are not eligible to receive job creation grants; and
    • The amount of the grant will be based on the wages paid for those grant eligible positions.
  • Real Property Investment Grants are based on:
    • Qualified real property investments made by any individual or entity to a commercial, industrial, or mixed use building or facility in a designated Virginia Enterprise Zone;
    • An investment of greater than $100,000 for rehabilitation projects (grants are issued for up to 20 percent of anything spent in excess of the $100,000 threshold)
    • An investment of greater than $500,000 for new construction projects (grants are issued for up to 20 percent of anything spent in excess of the $500,000 threshold)
    • The grant is capped at $100,000 per building or facility for investments less than $5 million, and $200,000 for investments of $5 million or more.
  • If a business firm previously qualified or has signed an agreement with the Virginia Department of Housing and Community Development (DHCD) and is eligible to receive the General Income Tax Credit, application materials are available for these pre-2005 incentives.
Wage Rate Threshold* Grant Per PFTE Eligible Businesses
$10.88 $500 HUA Business
$12.69 $500 All Business
$14.50 $800 All Business

Local Incentives:

In addition to these state incentives, each locality offers its own package of incentives tailored to their unique needs. To find out whether a business or real property is located within an enterprise zone, or to learn more about a specific zone’s local incentive package, see the contact list of Local Zone Administrators.


 
   
   
   
   
   
 

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