City Council Makes Efforts to Reduce City's Dependency on Residential Taxes

The Manassas Park Governing Body is considering a new ordinance that would give businesses interested in buying land in the city special tax incentives if they did so in specific areas. 

The ordinance, discussed at Tuesday’s Governing Body meeting, singles out three areas marked in the city’s Comprehensive Plan for redevelopment. These areas are: City Center and its surrounding areas; the Conner Center at the north end of the Euclid Avenue and Four Corners which are the properties at the intersection of Route 28 and Manassas Drive, including residential properties on Scott Drive.  

Mayor Frank Jones said the changes were not designed to condemn anyone’s home. 

The ordinance is simply designed to set a new boundary should a company want locate in that area and buy the surrounding houses should it need it, he said. 

 “This is not saying to the person on Scott Drive ‘Look out, someone’s coming to take your property,’” Jones said. 

The three areas would become “redevelopment districts” and developers who wanted to begin new construction or expansion would be exempt from 80 percent of the real estate property tax on the construction or improvements, provided that these developers rezone the properties under the district guidelines.

To eligible for the tax and fee exemptions under the ordinance, a developer must meet one or more of the requirements:

-       they must expand or begin a technology or defense production business

-       hire or continually employ more than 10 employees

-       have or construct 10,000 square feet of property

-       have no outstanding taxes or fees with the city

City Attorney Dean Crowhurst told the governing body at Tuesday’s meeting that the goal of the districts is to change the city’s property tax revenue.

“It’s overly dependent on residential real estate property taxes,” Crowhurst said at the meeting. “So we’re trying to get other sources of revenue for the city so we can lower the property tax for the residents.”

Crowhurst told the governing body that none of the existing zoning rules would change in any of the districts.

“That’s why you have to rezone to get any of these incentives,” Crowhurst said. “We’re not going to force anyone to get out of this district, they can stay there if they want. They’re just not going to get any of these incentives.”

The only district where existing rules might be changed is the Conner Center, which is zoned I-1, or light industrial. Jones said it would be in the city’s favor for that district’s rules to be rewritten to exclude certain businesses that would be “unsavory,” such as a garbage transfer station.

“I think we should move quickly to make those changes and deletions,” Jones said. “The last thing we want is someone coming up there and saying it’s allowed because it’s a by-right because it’s in I-1.”

Vanessa Watson, Manassas Park’s director of zoning and planning, said they would rewrite the I-1 rules by March.

“We want to tailor the district to be truly light industrial,” Watson said. “The document is dated and we want to make sure that we refresh the document for its intended use.”

Watson said the changes would not impact current businesses. Crowhurst said that no businesses currently in the Conner Center could be called “unsavory” or would clash with the new ordinance or the rewriting of I-1 zoning rules.

Three economic revitalization zones would be created in the exact same areas as the redevelopment districts, but the zones would apply to bussiness or companies that want to purchase parcels in the area. 

 Businesses that expanded would waive fees for rezoning property, for site plan review and site development and permit fees, according to the ordinance.

They would also be exempt from 80 percent of the business, professional, and occupational license tax (BPOL) on gross receipts from the expansion.

“If Yappie Cuttery was a targeted industry, and they chose to expand, than the increased assessed value, 80 percent of that, would be eligible for the exemption,” Crowhurst said. “They’re still going to pay whatever they’re paying right now for their existing business.”

The ordinance would designate City Center and the Conner Center as a technology zones.  The Conner Center would also be a defense production zone, meaning that businesses the city deemed as technology or defense production would be exempt for 80 percent of the BPOL tax, and could waive the same taxes as businesses expanding under the economic revitalization zones.

The governing body will meet on Jan. 24 for a public hearing on the ordinance and updates on the land use chapter of the city's comprehensive plan. Mayor Jones also suggested that several town halls be held in February for businesses and residents.