Sunday, February 05, 2012
Incentives to do business in Roanoke
Luanne Rife
Recent columns
- Stop throwing money out the windows
- Point/Counterpoint gets a makeover
- All too quick to judge
- The public should always feel welcome
From the RoundTable blog
Usually when economic development initiatives appear within the pages of the newspaper, it is to spread word of significant investment in our area. News items tell of projects like the one announced Thursday by Gov.Bob McDonnell, that one of Roanoke's largest employers, Advance Auto Parts, will invest $8 million in expanding its corporate headquarters and will create 75 new jobs during the next three years.
Tucked into the press release was this statement:
"The company is eligible to receive benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development. Through its Virginia Jobs Investment Program, the Virginia Department of Business Assistance will provide funding and services to support the company's recruitment and training activities."
What is left unsaid is this good news: Incentives that fill in funding gaps to make a project feasible aren't for just corporate giants like Advance Auto Parts.
Most anyone in Roanoke desiring to launch or expand a business can tap into one or more of a dozen or so programs intended to encourage business growth and to redevelop old buildings and brownfields into new uses.
To help explain some of the programs, Roanoke recently hosted a well-attended workshop on commercial grants and tax credits at the Roanoke Higher Education Center. Two hours was not nearly enough time to provide for all but a glimpse of many of the programs offered. But it was long enough to leave attendees with the impression that it would be foolish to embark on any venture in the city — whether it's renovating a building, launching a start-up or taking on an expansion — without first dropping by Roanoke's Department of Economic Development.
I spoke afterward with Lindsay Hurt, who as an economic development specialist helped to organize the workshop. Her best advice: "Contact us."
If the city doesn't have a program that directly addresses someone's needs, it has the networks, resources and know-how to put him in touch with an agency that might.
Two of the most well-known programs that have had a large impact in Roanoke are the use of federal and state historic tax credits. Since their use began in Roanoke in 2002, some 100 projects accounting for $213 million in investment have occurred. Many would not have been affordable to undertake without the tax credits. Allison Blanton of planning and architecture firm Hill Studio explained the bones of the programs to workshop attendees, and Patrick Murtaugh of accounting firm Dixon Hughes Goodman fleshed out the complexities in using or syndicating the tax credits.
Many lesser known, but useful, programs complement the historic tax credits and are far simpler to access, like the state's Real Property Investment Grant, worth up to $100,000 (20 percent of construction costs exceeding a $100,000 investment) or the city's facade program (one-third of construction costs up to $25,000).
Not as well known are other enterprise zone grants like the parking lot/landscaping one that also rebates a third of the cost of improvements, again up to $25,000, that help not only in sprucing up the appearance of a vacant lot but work to correct storm-water runoff.
And there are more programs to rebate development fees; help with water, fire and sewer hookups; encourage fire-suppression retro-fit; exempt taxes on improvements that increase a building's assessed value; even pay for alarms. For instance, Roanoke offers a small security grant of up to $500 that, while not a substantial sum, could be a welcome amount to a fledgling entrepreneur with ideas and ambition that exceed her bank balance.
And there are other lesser known programs. Hurt said that she finds many unaware of the city's entrepreneurial district that offers loan collateral, training for business owners and employees and even market analyses through a partnership with Virginia Tech that helps a business determine where to focus business growth three to five years out.
Not all incentives are available in every part of the city, as some are targeted for specific areas that need encouragement. But owners of businesses, both large and small, won't know what is available unless they ask.
They can start by looking at some of the programs on the city's website, roanokeva.gov/econdevl and through the state's website, bos.virginia.gov. Hurt can be reached at 853-5405.
Rife is on The Roanoke Times editorial board.
