Cape Charles adopts tourism zone town code addition
The Town of Cape Charles has added seven sections to the town code in accordance with Section 58.1-3851 of the Code of Virginia which allows for the Town of Cape Charles to be designated a tourism zone.
The ordinance allows for the locality to grant tax incentives such as reduced permit or user fees and reduction of gross tax receipts for up to twenty years and provide certain regulatory flexibility such as special zoning for the district or permit process reform for a period of up to ten years.
The planning commission reviewed a draft of the ordinance at their Oct. 4 meeting and recommended removing a “clawback” provision stating “if a qualified tourism business leaves the town to conduct business in another location within three (3) years after the expiration of all incentive periods, it will be required to repay the town the total amount of economic stimulus credits received.” Upon completion of the review, the commission voted to send the document to the town council as amended. However, the town council reviewed the draft during an Oct. 13 work session and the provision remained in the final draft document.
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According to the proposed draft, qualifying tourism businesses must create and maintain a minimum of one new full time or two new part-time jobs and make a new verified capital investment of no less than $2,000 in a building or on building improvements which doesn’t include the cost to purchase real property. Additionally, qualifying businesses must hold a current town business license and be current in all tax and utility bill obligations to the town and all tax obligations to Northampton County, as well as be in compliance with town ordinances to be eligible for economic stimulus credits.
Such credits include, but are not limited to, a credit equal to 25 percent of the new or increased capital improvement tax paid to the town with a verified capital investment of no less than $2,000 to a maximum of a $1 million capital investment or a credit of up to 50% of the facility and connection fees paid to the town for a qualified tourism business that maintains at least 85 hours weekly of full time and part-time staff employment.
The town council adopted the addition to the town code without amendments during a regular meeting on Nov. 17 retroactive from Jan. 1, according to Larry DiRe, town planner.