Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, November 30, 1995 TAG: 9511300042
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: JEFF STURGEON STAFF WRITER
DATELINE: LENGTH: Long
Roanoke is among three Western Virginia communities that now can beef up business investment with enterprise zones. Gov. George Allen on Wednesday approved zones in Northeast Roanoke, the Martinsville area and Pulaski County.
Allen expanded the 11-year-old enterprise zone program, which rewards companies for establishing or expanding businesses in depressed areas. For providing jobs to poor and middle-income residents, businesses are rewarded with tax breaks and other incentives. Roanoke also plans to improve living standards for people whose homes are near the industrial tracts.
Allen approved 14 new zones while he attended a community development conference in Hampton. The action brings to 45 the total number of such special zones in the state.
Locally, the designation frees thousands of dollars of state and local assistance for existing and future businesses in the Roanoke Centre for Industry and Technology, where a third of the land is vacant, and the older Statesman Industrial Park, where buildings and streets need attention.
Roanoke also pledged to invest $450,000 in neighborhood and household improvements in and near the zone, saying those steps would help ensure growing companies the workers they need.
That aspect of the program will furnish some new sidewalks, streetlights and repairs for homes. Exactly where the improvements go will be determined later.
The Roanoke zone is situated north of Orange Avenue and east of the railroad tracks that parallel Hollins Road. It measures 1,020 acres - an area equal to 770 football fields - and complements an earlier, somewhat larger zone downtown in which various building renovations and projects have been completed.
City Manager Robert Herbert has said taxes paid by industries in the zone will most likely exceed public money spent under the program during the next five years. City leaders don't know the up-front cost to taxpayers of the business incentives, however, which depends on the level of interest.
"It's fantastic," said John Frye, owner of Tread Corp., and head of a loose association of Statesman Industrial Park businesses. "Most business people out here will see it as a positive step by the city to support existing businesses."
In the Martinsville area, the new zone encompasses properties of many of that area's major employers, including Tultex, DuPont, Hooker Furniture, Pulaski Furniture, Stanley Furniture, Bassett Furniture Industries and Bassett-Walker Inc. Martinsville's uptown commercial district also is included.
The zone, measuring nearly 4,000 acres, is a joint project of Martinsville and Henry County and straddles their common border. Both governments have agreed to lower power and machinery and tools taxes on qualifying businesses. Martinsville will cut in half the fee to dump building-demolition waste at the city landfill to encourage replacement of old buildings.
"It's a tremendously positive message to our local businesses," said Martinsville City Manager Earl B. Reynolds Jr.
In Pulaski County, the governor blessed proposals for a 839-acre enterprise zone encompassing New River Industrial Park and other areas and a second, 320-acre zone in the town of Pulaski.
ROANOKE'S NEW ENTERPRISE ZONE
Here are some of the terms of the Northeast Roanoke enterprise zone approved Wednesday:|
nBusinesses that install $1 million worth of new equipment will pay half the usual machinery and tools tax for three years, a savings of $25,000.
nBusinesses that spend $50,000 to repair or replace buildings that are at least 15 years old will not pay a higher real estate tax because of the improvement for five years, or until the tax savings reaches $75,000.
nThose constructing buildings worth $250,000 will pay reduced connection fees, or no fee at all, for water and sewer service.
nCompanies that give full-time, permanent jobs to sufficient numbers of low- to moderate-income people will receive a 60 percent to 80 percent reduction in their state corporate income tax.
nCompanies that create at least 10 full-time jobs and invest $250,000 in the zone will receive $1,000 per employee hired from the zone or $500 for other new workers.
BENEFITS PLANNED FOR RESIDENTS
nFive homes will get new $5,000 kitchens.
nFive homes will get $5,000 central heating systems.
nTen substandard homes will be rehabilitated.
nThe city will install $50,000 worth of sewer and water line per year for five years to connect households to the public utility systems.
nThe city will provide free sewer hookups for homes on septic tanks.
nThe city will install up to 10 street lights and four-tenths of a mile of sidewalk and curb.
by CNB