Henrico Board of Supervisors approves expanded technology zone, tax credits for eligible office buildings

At its Nov. 12 meeting, the Henrico Board of Supervisors approved a pair of ordinances directing incentives and tax credits to owners of office buildings.

The first created a new Greater Henrico Technology Zone, which offers incentives to any qualifying office property in the county. These incentives include waiving building permit and planning application fees. To qualify, a property would need to include at least $1 million in capital investment and create 10 new jobs paying no less than the average county-wide wage.

The second ordinance expands tax credits for eligible office buildings.

The owners of these buildings would receive a tax credit equaling the difference between their old tax bill and their new, higher tax bill for 15 years. To be eligible, a building must be 15 years old, at least 60,000 square feet, and have gone up in value at least 30%.

Supervisors also took several actions related to affordable housing.

First, they created a program to help encourage privately-owned affordable housing developments by waiving building permit and planning application fees. To qualify, the developer would need to build single-family detached or attached dwellings, serve households with an income between 60% and 120% of the area median income, and provide for continued affordability beyond the initial purchaser.

Varina Supervisor and Board Chair Tyrone Nelson made a point of correcting a misconception he’d heard that affordable housing units cost Henrico up to $250,000 per home. Henrico Community Revitalization Director Eric Leabough confirmed that waiving these fees costs the county an additional $12,000-$15,000 and that the total cost to the county per affordable unit typically ranges between $80,000 and $120,000.

The county earlier this year introduced its $60-million Affordable Housing Trust Fund and earlier this month announced the first two developments that will take advantage of these reduced fees – one in Sandston and one in Short Pump.

The board also authorized a $2 million contract with SupportWorks Housing (formerly known as Virginia Supportive Housing), providing $2 million in federal HOME-ARP funds for the development of permanent supportive housing at the Rady Street apartments. These funds must be used primarily to benefit those who are homeless or at risk of homelessness or those who are fleeing domestic violence, sexual assault, stalking, or human trafficking.

Additionally, the board authorized a grant of up to $1.6 million to support the redevelopment of the Glenwood Farms apartments and shopping center located along East Laburnum Avenue near Mechanicsville Turnpike.

In other matters, plans for a proposed data center that would have been located on the Richmond-Henrico Turnpike near Henrico High School and the Richmond Raceway were withdrawn by the developer, after the case had been recommended for denial by the county's planning commission.

Fairfield District Supervisor Roscoe Cooper, III said he was concerned that a recent Richmond Times-Dispatch article left readers with the wrong impression that no data centers could be built in that area. In fact, he said, neighboring land in that area is already zoned for data centers if they meet county design standards.

“I just want the public just to know that I opposed this rezoning application and am glad that it’s being withdrawn,” he said. “At the same time, it’s important it’s clear to the community that the surrounding properties have the, by rights, potential possibility for future development.”