Agencies | Governor
Virginia Regulatory Town Hall
Department of Housing and Community Development
Board of Housing and Community Development
Enterprise Zone Grant Program Regulation [13 VAC 5 ‑ 112]
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1/29/18  10:21 am
Commenter: Ashley Wolfe, Pittsylvania County Economic Development

Enterprise Zone Regulation

When Pittsylvania County Staff began their comprehensive enterprise zone amendment process, we realized that much of our existing designated zones were being highly under-utilized with new homes, schools, that had been built in the zone and/or the lack of needed industrial infrastructure.  To make better use of the zones, Staff reviewed the possibility of shifting the under-utilized zone acreage to existing industrial parks and strategic economic development properties that were not in the zone.  After Staff tabulated the desired acreage to be amended (deleted and added), we realized that there was a maximum deletion clause in the Virginia Administrative Code (13VAC5-112-490. Amendment of Approved Applications) that restricted requested deletions to 15% of the zone total acreage. 

Delegate Danny Marshall has submitted HB 431 that would ammend the Code of Virginia, supersede the Virginia Administrative Code, and would result in the removal of the maximum deletion clause and instead provide that the cumulative net acreage of the zone, after requested deletion and addition amendments, cannot exceed the maximum and minimum zone acreages as given in subsection C of § 59.1-542.

By this proposed bill removing the maximum deletion requirement, it gives locales more flexibility in better utilizing their zones and removes the issue of comprehensive enterprise zone amendments taking multiple years due to locales having to piecemeal the requests to meet the 15% maximum deletion cap.  It will also remove the burden from DHCD staff, of trying to calculate and keep track of the percentage of total zone deletion during an amendment process. This flexibility will enable host localities to experience greater impacts from the zones and will put Virginia in a better position to “win” more projects by having appropriate land zoned for these real property investment and job creation-based incentives.

The proposed bill also clarifies the land area requirements associated with designated enterprise zones, by including language from the appropriate Virginia Administrative Code section (13VAC5-112-440. Zone Eligibility Requirements), which clearly states the minimum and maximum acreage for designated zones within cities, towns, and unincorporated areas of Counties (also known as rural Virginia).

Pittsylvania County, and its Board of Supervisors, thank Delegate Marshall for sponsoring this bill.  We sincerely believe that its passage will result in making an already effective economic development tool and program even better, which both directly and indirectly results in improving the public health, safety, and welfare.

CommentID: 63397