Northampton approves Enterprise Zone proposal

Northampton County unanimously approved a proposal to re-invigorate businesses in the County’s commercial centers Tuesday night. The County adopted an Enterprise Zone, which is a state and local program which seeks to provide eased regulations and fees, as well as financial benefits for businesses.

Speaking on the proposal, County Administrator Charlie Kolakowski said the County has significant issues in its commercial centers.

“If we are going to do this, let’s make it worthwhile,” he said. “We need to provide incentive to businesses.”

The plan introduces several local incentives for businesses within the Enterprise Zone:

• Machinery and Tools Tax Grant: Businesses investing at least $50,000 can receive a grant covering 50% of the increased Machinery and Tools tax for five years.
• Business Personal Property Tax Grant: Similarly, a grant covering 50% of the increased Business Personal Property tax is available for five years to businesses investing a minimum of $50,000.
• Real Estate Tax Grant: For new business construction or rehabilitation not covered by the existing Property Rehabilitation Tax Assessment relief, businesses can get a grant for 50% of the increased Real Estate tax valuation if it exceeds $100,000, available for five years.
• Food/Beverage and Transient Occupancy Tax Grant: Properties outside incorporated Towns can receive a grant up to 50% of the increased tax revenue due to site improvements, utility extensions, or public infrastructure enhancements. These funds must be used for offsetting those specific expenses.
• Development Fees and Permits Rebate: Up to 75% of certain development fees and permits can be rebated.
• Facade Improvement Grant: A grant of up to $2,500 is available for facade improvements, with a one-for-one matching requirement from the business.
• Property Rehabilitation Tax Assessment Relief: The existing Property Rehabilitation Tax Assessment relief program will continue.

These local incentives are supplementary to state or federal incentives. Valuation increases must not come from assets transferred within Northampton County. Grants and rebates will be provided only after the business has made the necessary investments and tax payments.

Cheryl Dalessio, an Old Town Neck resident, said Cape Charles adopted a similar program two decades ago, and it lead to new businesses coming to the town.

“They gained a doctors office with two doctors, and many specialists that came to help the community,” she commented during the public hearing. “They also hired people from the community, so it seems like a win win situation.

The funds will come from a separate line item in the annual budget under economic development. The program’s guidelines can be altered once a year.