Development in the River District can be treated as either a technology development qualifying for an Technology Enhancement Grant (TEG), industrial based qualifying for Industrial Enhancement Grant (IEG), or in either case the project may choose a River District Developer Grant (RDDG), but only one of these grants is available for any one project.
The City of Danville and the Industrial Development Authority area able to rebate percentages of taxes paid for a period of time as agreed upon by the governing bodies and company, The City and IDA have a history of rebating approximately 50% to 70% of taxes paid and rebates begin once committed taxable capital investment reached.
- Certified documentation by a Virginia licensed CPA will be required
- Create at least 20 permanent full-time employees for IEG and 10 permanent full-time employees for TEG
- Minimum taxable capital investment of $1,000,000 for IEG or $250,000 for TEG
- For qualified, credit worthy companies that desire a lease/purchase arrangement, the Danville Industrial Development Authority (IDA) will consider a financing mechanism where rent payments amortize the principal necessary for the project. If bank financing is utilized, monthly payments will be based on interest charged by the lending institution. If IDA funds are used to finance the project, interest rate will be fixed at market rate. The IDA will charge a service fee of approximately $100 per month for all financing arrangements.
- Developers renovating historic properties within the River District may access grant funding equaling 5% of qualified expenses.
- Must choose between RDDG and IEG/TEG
Back office, headquarters, research and development, and technology companies that will employ a significant number of people with above median salaries consisted job generators. These types of companies will provide the payroll and needed traffic in the River District to attract future restaurants, niche retailers, and housing. The fund will give priority to job generators and potential amounts of the grant will be greater than projects that do not creates jobs.
Upscale Restaurants and Unique Eateries:
Our second priority is based on a defined need in the City of Danville and the Central Business and Tobacco Warehouse Districts is upscale restaurants and unique eateries. We will consider participating with a restaurant based on a fully researched business plan and financial capacity. It will be highly preferred that the company owns the building rather than leasing it.
Non-Competing Niche Retailers:
Our third priority will be the consideration of funds to niche retailers that will not compete directly with any other current business in Danville nor relocate an existing business within the city limits, The Office of Economic Development will be responsible for assuring that the retailer does not directly compete with other retailers and the business has a positive forecast for long term stability in the market. The business plan and financial strength will be carefully evaluated before granting any funds.
- Businesses must sign a performance agreement committing to:
- 1) they will stay in the Central Business District or the Tobacco Warehouse District for at least seven years
- 2) they will commit to a specific job creation and capital investment made within a three-year period
- If the business moves or closes prior to the seven year term, the company will be required to pay back the entire grant amount. If the business falls short on the job creation and/or investment commitment within the three-year period, the company will be required to payback a proportional amount of the grant funds equal to the percentage of the shortfall. In the case of start-ups and earlier stage companies, we may require some form of collateral in lieu of a promise of a payback of grant funds to minimize the City’s risk. The value of the collateral pledged to the City would be decreased in value by 1/7th each year upon the anniversary of the tenant’s location and satisfactory operation in the Central Business District or the Tobacco Warehouse District.
- Reserved for small business owners
- $25,000 max at 4% with a negotiated term not to exceed 10 years
- Application required, based on need, credit worthiness, and available funds
- Community Development Department offers a one stop center for all required building and renovation permits
- Excludes storm water and Virginia Department of Transportation (VDOT) permits
- Identify business and financial resources
- Single sourced utilities including electric, natural gas, water, wastewater, and broadband
- Should you chose to rehabilitate a structure in a recognized historic district, or a structure which has been deemed historic, State and/or Federal historic tax credits may be available.
- An Economic Development office representative will assist in determining eligibility and the application for historic tax credit
- The NMTC program attracts capital to low income communities by providing private investors with a federal tax credit for investments made in businesses or economic development projects in qualified census tract
- An Economic Development office representative will assist in determining eligibility and making appropriate application for NMTC