Title of Regulation: 13VAC5-112. Enterprise Zone Grant Program Regulation (amending 13VAC5-112-440, 13VAC5-112-490).

Statutory Authority: § 59.1-541 of the Code of Virginia.

Effective Date: October 17, 2018.

Agency Contact: Kyle Flanders, Policy Analyst, Department of Housing and Community Development, Main Street Centre, 600 East Main Street, Suite 300, Richmond, VA 23219, telephone (804) 786-6761, FAX (804) 371-7090, TTY (804) 371-7089, or email kyle.flanders@dhcd.virginia.gov.

Summary:

The amendments conform the regulation to Chapter 315 of the 2018 Acts of Assembly, to include that changes to an enterprise zone involving the elimination of an area or areas from the zone shall not exceed the statutory maximum size provisions.

13VAC5-112-440. Zone eligibility requirements.

A. To be eligible for consideration, an application for an enterprise zone must meet the requirements set out in this section.

B. Enterprise zones may consist of no more than three noncontiguous areas. The size of the enterprise zone shall consist of the total of the acreage of all noncontiguous areas. The maximum combined land area cannot exceed maximum size guidelines set forth in subdivisions C 1, 2, 3 and, 4, and 5 of this section.

C. All proposed zones shall conform to the following size guidelines:

1. Cities -- minimum: 1/4 square mile (160 acres); maximum: 1 square mile (640 acres) or 7.0% of the jurisdiction's land area or an area that includes 7.0% of the population, whichever is largest. Towns designated as enterprise zones pursuant to former §§ 59.1-274, 59.1-274.1 and 59.1-274.2 of the Code of Virginia shall conform to the size guidelines for cities.

2. For towns designated as enterprise zones under former §§ 59.1-272 through 59.1-278, 59.1-279.1, or 59.1-280.2 through 59.1-284 of the Enterprise Zone Act (§ 59.1-270 et seq. of the Code of Virginia), the size of an enterprise zone shall conform to the size requirements for cities in subdivision 1 of this subsection.

2. 3. Unincorporated areas of counties -- minimum: 1/2 square mile (320 acres); maximum: 6 square miles (3,840 acres).

3. 4. Consolidated cities -- zones in cities the boundaries of which were created through the consolidation of a city and county or the consolidation of two cities shall conform substantially to the minimum and maximum size guidelines for unincorporated areas of counties as set forth in subdivision 2 3 of this subsection.

4. 5. In no instance shall a zone consist only of a site for a single business firm.

Part IX
Procedures for Zone Amendment

13VAC5-112-490. Amendment of approved applications.

A. A local governing body will be permitted to request amendments to approved applications for zone designation in accordance with the procedures and requirements set out in this section. Each jurisdiction participating in a joint zone may amend their portion of the application, including boundaries and incentives, independently of the other participating jurisdictions.

B. The applicant jurisdiction must be current on the submission of annual reports as set forth in 13VAC5-112-550 in order to amend an approved application.

C. The applicant jurisdiction must hold at least one public hearing on the requested amendment prior to its submission to the department. This public hearing may not have been held more than six months prior to the amendment submission. In the case of a boundary amendment that involves the elimination of area or areas, the applicant jurisdiction must separately notify each property owner and business located within the affected area of the proposed amendment prior to holding the public hearing.

D. A request for an amendment must be submitted to the department on Form EZ-2. This form must be accompanied by a resolution of the local governing body and must certify that the applicant jurisdiction held the public hearing required in subsection C of this section prior to the adoption of the resolution. In the case of a joint application, Form EZ-2 must be completed by the jurisdiction requesting the amendment and must be accompanied by Form EZ-2-JA. This form certifies that the other participating jurisdictions are in agreement in filing the request for amendment.

E. An enterprise zone application may be amended annually, at least 12 months from the last amendment application by the jurisdiction. Amendments may be to the entire application or individual sections such as the boundary or incentives.

F. A zone boundary amendment may not consist of a site for a single business firm or be less than 10 acres.

G. A noncontiguous area(s) area may be added to an enterprise zone through a boundary amendment. However, no enterprise zone shall have more than three noncontiguous areas.

H. The total zone acreage resulting from a boundary amendment must conform to the size guidelines set forth in 13VAC5-112-440.

I. Boundary amendments that involve the elimination of area or areas from a zone shall be reviewed on a case-by-case basis by the department with the potential impact on affected businesses and property owners being given primary consideration. Such boundary changes cannot involve more than 15% of the total zone acreage shall not exceed the maximum size provisions of 13VAC5-112-440 C.

J. A county may amend its zone boundaries to include as part of the county's total acreage, acreage in any town located within the county provided it meets the provisions of subsections A through I of this section. This shall not constitute a joint zone and does not provide the town with the ability to make any zone amendments, add noncontiguous areas or give the town its own zone acreage allocation. In such situations, towns may provide local incentives in addition to the county incentives.

K. The department will approve an amendment to local incentives only when the proposed incentive is equal to or superior to that in the original application or any previous amendment approved by the department. The department will approve an amendment of zone boundaries only if the proposed amendment is deemed to be consistent with the purposes of the program as determined by the department.

L. A local governing body that is denied an application amendment shall be provided with the reasons for denial.

FORMS (13VAC5-112)

Application for Enterprise Designation Form, EZ-1 (rev. 2/2015)

Joint Application Agreement Form, EZ-1-JA, (rev. 2/2015)

Enterprise Zone Amendment Application, EZ-2 (undated, filed 9/7/2016)

Enterprise Zone Amendment Application, EZ-2 (undated, filed 8/29/2018)

Joint Amendment Application Agreement Form, EZ-2-JA (undated, filed 9/1/2016)

Local Enterprise Zone Annual Report Form, EZ-3-AR (rev. 5/2016), online form available at https://dmz1.dhcd.virginia.gov/camsportal/Login.aspx

Form EZ-3-AR Business Activity Worksheet (rev. 5/2016)

Job Creation Grant Application Form, EZ-JCG (rev. 11/2015)

Job Creation Grant Application Form, EZ-JCG-HUA (rev. 11/2015)

Real Property Investment Grant Application Form and Supplements, EZ-RPIG (rev. 11/2015)

General Income Tax Credit Application for Existing Firms, EZ-6E (undated, filed 9/7/2016), online form available at https://dmz1.dhcd.virginia.gov/EZApplication/Application6E.aspx

General Income Tax Credit Application for New Firms, EZ-6N (undated, filed 9/7/2016), online form available at https://dmz1.dhcd.virginia.gov/EZApplication/Application6N.aspx

Investment tax Credit Qualification Form, EZ-6I (rev. 1/2015)