During its regular session on December 9, Lynchburg City Council will hold a Public Hearing to consider the Enterprise Zone Incentive Amendment.
Lynchburg is an active participant in the Virginia Enterprise Zone Program, with two Enterprise Zones identified by DHCD as #2 and #46. The zones were established to provide incentives for businesses to locate or expand, stimulating economic development within the designated areas. The program offers state-level incentives authorized by the General Assembly, along with local incentives crafted by municipalities to target local economic development needs.
In a regular review of the Enterprise Zone program, the Office of Economic Development found several issues with the local incentive that required amendment. OED noted that the existing local incentive: was in part duplicative of state incentives; could be more directly aligned with local development trends and return on investment; could better support the small- and medium-sized businesses that make up the majority of commercial entities in the zones; could better meet program best practices; and could be structured for improved tracking and budgetary oversight.
Working closely with the Department of Community Development, the City Assessor and the Commissioner of Revenue, OED amended the local incentive to address the issues noted above. The new incentive no longer duplicates state incentives while more effectively supporting greater aggregate investment within the zones made by small- and medium-sized businesses. Importantly, the economic impact of the amended incentive can be more easily tracked and its fiscal impact known and managed. DHCD has given preliminary approval of the amended incentive and its permission to proceed with the amendment application process.
In order to accomplish this amendment, City Council is required to conduct a public hearing regarding the proposed incentive amendment. The proposed amendment may positively impact tax receipts as greater aggregate business growth and investment are supported in the Enterprise Zones and the fiscal impact of the local incentive can now be tracked and managed.
For more information, please contact (434) 455-4490.