>> Fairfax, County's new economic incentive program was
created to encourage development in older commercial
areas of the county called commercial revitalization
districts.
The goal is to attract new economic activity to these
areas by transforming them into vibrant and attractive mix.
You centers.
The program offers incentives to projects that are consistent
with the comprehensive plan and that meet certain standards
including property consolidation, size, location,
and land use or development tight.
But why are financial incentives needed to transform
these areas
over the past few decades. We have not seen the sought
after economic development coming to some of our older
commercial areas
in order to reverse this trend.
Fairfax County seeks to boost redevelopment consistent with
the comprehensive plan through financial incentives.
The 2017 Virginia General Assembly, adopted legislation
allowing counties to offer regulatory and financial
incentives to private sector developers with the aim of
revitalizing property for economic development,
Fairfax County sees the opportunity presented by the
new legislation and created the economic incentive program
which was adopted by the Board of Supervisors in September
2020.
Now let's take a look at the incentives
through the economic incentive program. Eligible projects are
provided with a variety of regulatory incentives.
These include the expedited scheduling of a zoning
application
can current processing of a comprehensive plan amendment
within associated zoning application
concurrent processing of a site plan and a zoning application
inclusion in the Department of land development services
project management program which provides additional
coordination and oversight throughout the untitled meant
process
and finally a lower overall project value to qualify for
land development services modified processing program
which allows for the issuance of rough grazing permits prior
to full approval of sight and building plans
through the economic incentive program. There are 2 financial
incentives. They can now a crew to a qualifying applicant.
The first is a 10% reduction, a site plan fees.
The second
is a real estate tax abatement
on the difference between the base or pre developments that
you and the final or post development value of the
project
structure must be built to at least substantial completion
for a final valuation to be made.
The abatement is good for period of up to 10 years or the
remaining time in the program.
Let's walk through a prototypical real estate tax
abatement scenario.
So in this case 85 million pre redevelopment base assessed
value gross to a 120 million with consolidation and
redevelopment.
The net difference or 115 million
is the amount in which the tax would be abated for up to 10
years
in this example, the full development value would be
fully taxed in year 11
Fairfax County's economic incentive areas have different
start and end dates for their incentive periods. But they all
run for a period of 10 years from the effective date of the
program for the area.
These different affected dates were chosen based on estimated
future development activity in these areas. These dates are
part of the ordinance.
You can find additional information and resources on
our website, including program, information,
application, form and procedures,
maps of deep areas and a copy of the ordinance.
Thank you for taking the time today to learn more about
Fairfax County's economic incentive program. Police
contact Elizabeth dot Hague at Fairfax County dot gov to set
up a consultation.