Henrico expands development incentive program, amends tax credits
Program aims to spur redevelopment
Henrico County announced this week it is creating a redevelopment incentive program for parts of the county that are in need of renovation.
Henrico Investment Program was unanimously approved by the county board Tuesday, and the program is expected to launch in January. Incentives for development and reinvestment will be available for projects along parts of Mechanicsville Turnpike, Staples Mill Road, Patterson Avenue, West Broad Street and Williamsburg Road, according to a county news release. The board also amended the county’s commercial rehabilitation tax credit program to allow more buildings to qualify, including if they grow in size.
Under the state’s Enterprise Zone program, Henrico County and other localities offer grants and other incentives to support improvements and demolition of existing buildings on properties in designated areas, determined as needing further investment by the state. Henrico’s new program will allow the county to offer similar incentives outside of its 6-square-mile Enterprise Zone. Incentives include:
- Allowing sign grants to include removal, refurbishment or replacement of signs attached to buildings
- Increasing the demolition grant to a maximum of $100,000 based on a building’s size
- Expanding the building facade grant to include building system improvements and roof improvements
Since 2004, the county has allowed a seven-year partial real estate tax exemption when renovated buildings’ assessed values increase by at least 40%, but not if they grow more than twice their original size. The amendment by the board this week allows nonresidential buildings greater than 20,000 square feet to qualify if the expanded portion is 125% or less of the building’s original size, and nonresidential buildings smaller than 20,000 square feet can qualify regardless of their original size.
“With the new Henrico Investment Program and amended commercial tax credit program for rehabilitated buildings, Henrico and the Board of Supervisors show once again their commitment to encouraging reinvestment in the county’s mature areas and to helping businesses, particularly small businesses, to grow and thrive,” Anthony J. Romanello, executive director of the Henrico Economic Development Authority, said in a statement.