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Thursday, December 02, 2004

Enterprise zone grants opportunities

Businesses in the Williamson Road commercial corridor may receive grants, tax credits or tax exemptions.

They're in the zone.

Fleet Transmissions on Roanoke's Williamson Road moved from contemplation of renovations to fix-up realization after company officials learned the city would help foot the bill.

"The old metal shell of the building was scraped, dented and rusted," said Mark Stragand, general manager. It had aged from a tint of tan to a grungy brown.

When Stragand and Gary Collins, owner and president of Fleet Transmissions, learned the business might be eligible for a facade grant from the city, they applied for the grant, were approved and moved ahead with renovations - which continue. Stragand said the city's contribution for street-fronting improvements probably will total about $10,000.

Other businesses in the Williamson Road commercial corridor between Hershberger Road and Orange Avenue might be eligible to receive similar grants, tax credits or tax exemptions. Their eligibility for such state and local government incentives became a reality in June, when Gov. Mark Warner approved the city's application for Enterprise Zone One-A. The zone's new boundaries included the Williamson Road commercial corridor. The designation was retroactive to Jan. 1.

And being in the zone might mean that when government officials tell businesses they are "here to help," businesspeople need not scramble for the nearest exit.

So said Warren Via, president of the Williamson Road Area Business Association, or WRABA, and an account executive for Ntelos.

"I think far too often we in the business community look at government as though there is an adversarial relationship," he said.

But enterprise zone designations, designed to increase development in economically distressed areas through a variety of incentives, can create relationships where "businesses and local and state governments can work hand in hand," he said.

Mike Bailey is a member of WRABA's board of directors, an agent for Nationwide Insurance and a longtime advocate for the busy thoroughfare known as "Roanoke's Main Street." Bailey said he worries people might get the wrong idea if they read that the Williamson Road corridor is a distressed area.

"To me, Williamson Road is an old and dear friend," Bailey said. "You know where her heart is. She just needs a little makeup."

But, like Via and Linda Plunkett, WRABA's executive director, Bailey celebrated the inclusion of the Williamson Road commercial corridor in Enterprise Zone One-A. Related tax credits, job grants for new employees, tax exemptions, facade grants and other incentives could convince businesspeople to improve or expand existing businesses, he said, and could entice other businesses to the corridor.

Bailey said many businesses might not know, for example, that the enterprise zone designation could make them eligible for a business security grant of up to $500, which could help pay for security upgrades recommended by the Roanoke Police Department and its Star City Business Watch program.

Some incentives can require significant investment before they kick in. Some involve more complicated applications than others.

Stragand said Fleet Transmissions' experience applying for the facade grant was positive.

"Actually, I expected a lot more hoops to jump through," he said. "They were very fair about what they covered, which was limited to improvements made to the facade."

Fleet Transmissions, a transmission service and repair shop at 1325 Williamson Road, applied for the grant after hearing from a WRABA member about the enterprise zone designation for Williamson Road, Stragand said. He spoke highly of Linda Bass, an economic development specialist for the city's department of economic development, who helped the company understand the grant and application process.

"She was great to work with," he said.

Today, Fleet Transmissions sports a new, gray metal shell and will soon feature new awnings. The company tackled other improvements, including a new roof, whose costs it knew would not be eligible for facade grant reimbursement.

Bass cautioned that the city's facade grant funds are limited to $100,000 per fiscal year and noted, "I have quite a few applications in the pipeline." Facade grants must be approved in advance of related work. The grant will not reimburse design, engineering or architectural costs.

But Bass also said she is ready and willing to answer questions about enterprise zone incentives and how to apply for them.

"I get calls all the time and I'll spend whatever time it takes to explain the program," she said.

"There was one man I know I talked to at least 50 times. He always apologized for bothering me. But the calls don't bother me. It's my job to help."

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