Enterprise Zone

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Enterprise Zone

An Enterprise Zone is a specific geographic area targeted for business development and revitalization. Enterprise Zones are designed to encourage new development and expansions in these areas by offering local, state and federal tax and cash grant incentives to property owners and businesses investing within the zone boundaries.

Currently, the city has two Enterprise Zones.

Zone 1 includes the downtown district and extensive commercial/industrial areas along New Hope Rd, the US 250/340 corridors and South River. Within Zone 1, there are special local incentives targeted to the Downtown Sub-Zone.

Zone 2 includes the Waynesboro Office/Industrial Park and adjacent land near the I-64/Rosser Avenue interchange.

This downtown landmark, originally built in 1908 for the First National Bank of Waynesboro, now houses the Heritage Museum on the first floor and six apartments on the second. Situated in the heart of Waynesboro’s Enterprise Zone, this building’s revitalization was partially funded with the Virginia Enterprise Zone Real Property Investment Grant.

Virginia Real Property Investment Grant

The Real Property Investment Grants encourage investment in both old and new commercial buildings within the Enterprise Zone by reimbursing up to 20% of the costs of renovation and construction.

Investors must make real property improvements of at least $100,000 to qualify for renovations or $500,000 for construction of a new building. Cash reimbursements are capped at $100,000 for projects with less than $5 million invested and at $200,000 for projects investing more than $5 million.

State Job Creation Grant

Businesses creating new jobs in the Enterprise Zone that pay at least 175% of the federal minimum wage and providing health benefits may be eligible for a cash grant of up to $500 per job per year for five years – firms that pay at least 200% of the federal minimum wage and providing health benefits may be eligible for a cash grant of up to $800 per job per year for five years.

Real Estate Tax Abatement

Property or business owners making significant improvements to a downtown building located in the Enterprise Sub-Zone may be eligible for real estate tax abatement. Eligible renovations must increase the assessed value of the building by at least 60% but not increase the square footage by more than 15%. Applications are required before any work is completed, as the City will assess the value of the building before and after all renovation work. If eligible, the assessed value of the property will be reduced by an amount equal to the increase in assessed value resulting from the rehabilitation of the structure for a period of seven years.

Job Creation

Businesses or non-profits locating or expanding into a facility that has been vacant for the past six months; received at least $25,000 in renovation or construction work; and is in a target industry, may be eligible for a local job creation grant of $250 per year for three years up to four jobs.

Façade Grant

The Façade Improvement Grants are reimbursement grants, available for 50% of the total project cost, up to a maximum of $5,000. An applicant may apply for reimbursement for more than one façade when buildings front on more than one street. Only one elevation is eligible in a single fiscal year.

Qualified Applicant: Any owner of a downtown building, or any tenant or prospective tenant having the building owner’s written approval.
Qualified Areas: The downtown area in which buildings are eligible consists of parcels within the Enterprise Sub-zone with a special focus on the Main Street District.
Qualified Improvements: Any exterior improvements to the property façade, including walls, windows, awnings, lighting, signage, and landscaping. Routine maintenance is not eligible.
Improvement Standards: All façade improvements must conform to the design plan submitted and approved by the WDDI Design Committee.

Application Process: Each Applicant must submit one original and two copies to the offices of Waynesboro Downtown Development, Inc. The order in which complete applications are received determines the order of fund approval. Funding is contingent on annual appropriations by the Waynesboro City Council.

Sidewalk and Landscaping Grant

Qualifying applicants may receive 50% of landscaping or sidewalk improvement costs, up to a maximum of $4,000. Applications may include improvements to all sides of the property that are located within the Enterprise Zone and are generally required to exceed the minimum requirements of the City’s landscaping ordinance or site development review to qualify.

Qualified Applicant: Any owner of a downtown building, or any tenant or prospective tenant having the building owner’s written approval.
Qualified Areas: The downtown area in which buildings are eligible consists of parcels within the Enterprise Sub-zone with a special focus on the Main Street District.
Qualified Improvements: Any exterior improvements to the property façade, including walls, windows, awnings, lighting, signage, and landscaping. Routine maintenance is not eligible.
Improvement Standards: All façade improvements must conform to the design plan submitted and approved by the WDDI Design Committee.

Application Process: Applications will typically be reviewed on a monthly basis by the Design Committee of WDDI for certification of appropriate design criteria and the Economic Development Authority for approval of funding. Funding is contingent on annual appropriations by the Waynesboro City Council.

For a summary chart of the state and local incentives, click here.