(a)

For the purpose of this article, the city shall recognize overlay districts as providing additional regulation or development tools as it relates to use, development, and administration in addition to those regulations governing the use district.

(b)

An overlay district is a special purpose zoning device that does not change the underlying district intent. Overlay districts can provide additional restriction and/or flexibility designed to ensure compatibility of uses and activities with those found within the district. In some cases an overlay district can be used to provide additional protections for valuable community assets or to attract certain types of uses to a particular area of the community where such uses are most suitable.

(Ord. No. 20-4, 11-24-20)

(a)

Purpose. The purpose of this overlay is to promote investment through mixed use and commercial development that expands the presence of and/or otherwise enhances the arts, culture and entertainment within the overlay.

(b)

Overlay district boundaries. The arts and entertainment overlay district boundaries shall be as depicted on the official Bristol, Virginia Arts and Entertainment Overlay District Map. Expansion or reduction of the area included with the overlay district may be approved by city council as an amendment to the official Bristol, Virginia Arts and Entertainment Overlay District Map. Petition for expansion shall be submitted to the department of community development for evaluation. The director may request a recommendation from the arts and entertainment district steering committee prior to beginning the official zoning amendment process.

(c)

Permitted uses. The following permitted uses shall supplement the uses permitted in the underlying use districts.

(1)

Principal permitted uses:

a.

Art galleries, including art sales;

b.

Art, music and dance studios;

c.

Teaching of visual and performing arts;

d.

Performing art facilities and theaters;

e.

Museums, art libraries and other similar cultural facilities;

f.

Artist live/work space;

(2)

Supporting principal uses:

a.

Hotel;

b.

Restaurants, general;

c.

Retail uses associated with and directly related to an arts and culture use on the same lot or as part of the same development project;

d.

Residences not located on the ground floor of a mixed use building.

(d)

Steering committee.

(1)

The business of the overlay district shall be administered by the arts and entertainment district steering committee with oversight by city council.

(2)

The composition of the committee shall include representatives of the arts and entertainment community, as nominated and approved by city council, and as an ex-officio non-voting member, the city manager or designee. The committee shall not exceed seven voting members. Members of this committee shall serve at the pleasure of the city council.

(3)

The city council may, through resolution, assign the creation and management of the committee to an appropriately suited civic organization, conforming to the structure and terms of this section.

(4)

The responsibilities of the committee shall be:

a.

Oversight of any committee staff and/or volunteers;

b.

Marketing and promotion of the district for cultural and heritage tourism;

c.

Annual reporting to the city council at a public meeting on the actions of the committee to include review of all efforts to sustain the overlay district as a viable economic development tool.

(Ord. No. 20-4, 11-24-20)

(a)

Purpose. The purpose of this overlay is to promote investment through mixed use and commercial development that expands the presence of and/or otherwise enhances the tourism industry within the overlay and to provide economic incentives and regulatory flexibility for eligible business entities which will attract visitors.

(b)

Overlay district boundaries. The tourism zone overlay district boundaries shall be as depicted on the official Bristol, Virginia Overlay District Map. Expansion or reduction of the area included with the overlay district may be approved by city council as an amendment to the official Bristol, Virginia Overlay District Map. Petition for expansion shall be submitted to the department of community development for evaluation. The director may request a recommendation from the Bristol Convention and Visitors Bureau prior to beginning the official zoning amendment process.

(c)

Permitted uses. The permitted uses of the underlying zoning district shall govern the uses that can occur within a tourism zone.

(d)

Incentives. The city council may, at their discretion, administer incentives pursuant to Code of Virginia, § 58.1-3851. Creation of local tourism zones as from time to time amended or re-codified. These incentives may include:

(1)

Reduction of permit fees.

(2)

Reduction of user fees.

(3)

Reduction of any type of gross receipts tax.

(4)

Permit process reform.

(5)

Exemption from ordinances as permitted by state law.

(6)

Gap financing pursuant to Code of Virginia, § 58.1-3851.1 Entitlement to tax revenues from tourism project of the Code of Virginia as from time to time amended or re-codified.

(e)

Administration. The city manager is authorized to administer the tourism zone, through the director of economic development. The director of economic development shall present applications for use of tourism zone incentives to the economic development committee, which shall provide a recommendation on said applications to the city council. The economic development director and city attorney shall have the authority to negotiate performance agreements with potential new or expanded businesses. The city council shall have final approval authority for performance agreements utilizing tourism zone incentives. However, nothing herein shall preclude the city council from requesting the industrial development authority to provide gap financing to an applicant pursuant to subsection 50-77(d)(6).

(f)

Public notice. No performance agreement utilizing this chapter may be approved or authorized by the city council until after a notice of intention to do so has been published once a week for two successive weeks in some newspaper published or having general circulation in the city. Such notices shall specify the time and place of hearing, at which time persons affected may appear and present their views, not less than five days nor more than 21 days after final publication. Additionally, commensurate with the above described public notice the zoning administrator shall give all adjoining property owners written notice of the intent to utilize this chapter, and an opportunity to respond to the proposal within two weeks of the date of the notice.

(Ord. No. 20-4, 11-24-20)

(a)

Purpose. The purpose of the enterprise zone is to stimulate business and industrial growth by means of real property investment grants, job creation grants, and local incentives as set forth herein.

(b)

Overlay district boundaries. The enterprise zone overlay district boundaries shall be as depicted on the official Bristol, Virginia Enterprise Zone Overlay District Map, which is on file at the City of Bristol Community Development and Planning Department. These specific areas were established as enterprise zones on January 1, 2015 by the governor of the Commonwealth of Virginia for a period of ten years in accordance with the Virginia Enterprise Zone Act. Expansion or reduction of the area included with the overlay district may be approved by city council as an amendment to the official Bristol, Virginia Enterprise Zone Overlay District Map. Petition for expansion shall be submitted to the department of community development for evaluation. Any petition for expansion or alteration shall not become effective until such time as it has been approved by both the city council and the Commonwealth of Virginia.

(c)

Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning. Words and terms not herein defined shall have the meaning customarily assigned to them. Words used in the present tense include the future tense; the singular includes the plural, and the plural the singular; the word "shall" is mandatory; the word "may" is permissive.

(1)

Base assessed value of real property means the assessed value of any structure, improved as defined by this section, prior to commencement of rehabilitation, as determined by the city commissioner of revenue at the time of the application for a real estate exemption for rehabilitation property.

(2)

Business firm means any business entity authorized to do business in the Commonwealth of Virginia, including those entities subject to the state income tax on net corporate rate income (Code of Virginia, § 58.1-400 et seq.), or a public service company subject to a franchise or license tax on gross receipts; or a bank, mutual savings bank or savings and loan association; or a partnership or sole proprietorship. A business firm includes partnerships and small business corporations electing to be taxed under subchapter S of the Federal Internal Revenue Code, and which are not subject to state income taxes as partnerships or corporations, and includes limited liability companies, the taxable income of which is passed through to and taxed on individual partners and shareholders. However, a business firm does not include organizations which are exempt from state income tax on all income except unrelated business taxable income as defined in the Federal Internal Revenue Code, 26 U.S.C. § 512, nor does it include homeowners' associations as defined in the Federal Internal Revenue Code, 26 U.S.C. § 528.

(3)

City means the City of Bristol, Virginia.

(4)

Eligible structure means any structure which qualifies pursuant to requirements of this article for the rehabilitated real estate tax exemption.

(5)

Enterprise zone means the Bristol Enterprise Zone, an area declared or to be applied for declaration by the governor of the Commonwealth of Virginia to be eligible for the benefits accruing under the Virginia Enterprise Zone Act, Code of Virginia, § 59.1-539 et seq.

(6)

Equivalent employment or job or FTE means 40 hours per week of an hourly week (or the salaried equivalent). A single equivalent job may be represented by one employed individual, or by multiple employed individuals whose aggregate hours of employment (or salaried equivalent) equal 40 hours per week.

(7)

Existing business means any business firm operating or located within the enterprise zone on January 1, 2015, or within the City of Bristol prior to its designation as an enterprise zone. A business which retains the same ownership and which was operating or located within the enterprise zone on January 1, 2015, or within the City of Bristol prior to location within the enterprise zone shall not be defined as a new business, even if the name or entity (corporate or otherwise) has changed.

(8)

New business means a business operating within the enterprise zone after January 1, 2015, having had no prior business location within the City of Bristol, Virginia.

(9)

Owner means the person or entity in whose name the structure is titled, or a lessee who is legally obligated to pay real estate taxes assessed against the structure.

(10)

Rehabilitate and rehabilitation mean to restore, renovate, or update construction of or the restoration, renovation, or rehabilitation of eligible structures. Other site improvements, fees, or non-construction costs will not be considered. The demolition or razing of a building and construction of a replacement structure may be included, unless it is located in a designated historic district, is a registered Virginia landmark, or is determined by the department of historic resources to contribute to the significance of a registered historic landmark. This definition does not include construction of an addition to a building so as to increase the total square footage of the building.

(11)

Rehabilitated real estate tax exemption means a five-year decreasing exemption from payment of a portion of the real estate taxes, based on rehabilitation value and the schedule of decreasing percentages of rehabilitated value to be allowed as a partial tax exemption for an eligible structure, as set forth in this section.

(12)

Rehabilitation value means an amount as determined by the commissioner of revenue equal to the difference in the assessed value of the structure immediately before rehabilitation and the assessed value of the structure immediately after rehabilitation. This amount, on a fixed basis, shall constitute the value to be used for calculation of the rehabilitated real estate tax exemption, and that calculation shall not include any subsequent assessment or reassessment.

(d)

Permitted uses. The permitted uses within the enterprise zone overlay district shall be governed by the underlying zoning district.

(e)

Qualification for local incentives. The city council shall administer local incentives pursuant to Code of Virginia, § 59.1-538 (Enterprise Zone Grant Act 2005 and subsequent amendments) and Code of Virginia, § 59.1-543. These incentives may be amended or re-codified from time to time and may include the following benefits for commercial or industrial properties or businesses:

(1)

Façade improvement grant. This incentive will provide grants to cover 50 percent of the cost of making improvements to building facades, not to exceed $8,000.00 for any one grant. The work to be paid for can include painting, cleaning, repairing windows and doors, awnings, and signs. It can also include landscaping and beautification improvements. The priority for this incentive is on downtown business establishments to improve storefronts and building appearances, however other businesses in the EZ are eligible. It is a reimbursable grant based on documentation of actual expenditures. The following requirements shall be satisfied prior to qualification for a façade improvement grant:

a.

Location in the enterprise zone overlay district;

b.

Provision and documentation of a 1:1 match for awarded grant funds;

c.

Payment of all taxes and fees due to the city in a timely manner during the grant period; and

d.

Satisfactory completion of the application process.

(2)

Location assistance to business owners. The purpose of this incentive is to encourage new businesses to locate downtown. Businesses that create and maintain at least four FTE positions as well as stay within their location for at least two years are eligible to apply at signing of lease or purchase agreement. The total award of location assistance is not to exceed $500.00 monthly for six months. This grant will be in the form of a forgivable loan with 50 percent to be forgiven at the end of year one and 100 percent to be forgiven at the end of year two. Existing businesses are eligible upon expansion if the expansion includes creation of at least four FTE positions and maintenance of those positions for at least two years. The following requirements shall be satisfied prior to qualification for a location assistance grant:

a.

Location in enterprise zone overlay district and main street district;

b.

The creation of at least four new full-time positions or full-time equivalent positions, to be maintained for at least two years;

c.

Payment of all taxes and fees due to the city in a timely manner during the grant period;

d.

Entrance into a grant performance agreement with the City of Bristol Industrial Development Authority, acting on behalf of the City of Bristol; and

e.

Satisfactory completion of the application process.

(3)

Job training grant. This incentive will provide a grant to eligible businesses that are creating or retaining jobs to offset job training costs. The grant will be provided on a reimbursement basis after the business has documented the type of training and cost. The total job training grant award will be capped at 50 percent of the cost not to exceed $500.00 per employee. The grant can be used for pre-employment or new employee training for jobs that are available to low and moderate income persons or training to upgrade the skills of existing workers. This grant can supplement other job training funds including but not limited to the Virginia Jobs Investment Program. The following requirements shall be satisfied prior to qualification for a job training grant:

a.

Location in enterprise zone overlay district;

b.

Provision and documentation of a 1:1 match for awarded grant funds;

c.

Workers trained must be documented low or moderate income and must have been in the position and on the payroll for at least 90 days;

d.

Payment of all taxes and fees due to the city in a timely manner during the grant period; and

e.

Satisfactory completion of the application process.

(4)

Rehabilitated real estate tax exemption. There is hereby granted, as provided in this section, an exemption from city taxation of real estate located within the enterprise zone overlay district which has been substantially rehabilitated for commercial or industrial use, as allowed by Code of Virginia, § 58.1-3221, as amended. For the purposes of this section, any real estate shall be deemed to have been substantially rehabilitated when a structure, which is no less than 15 years of age, has been so improved as to increase the assessed value of the structure by no less than 50 percent and by an amount of at least $50,000.00.

a.

Amount; duration. The exemption provided in subsection d) of this section shall not exceed an amount equal to the increase in assessed value resulting from the rehabilitation of the commercial or industrial structure as determined by the commissioner of the revenue. The exemption as set out below shall commence on January 1 of the year following completion of the rehabilitation or replacement and shall run with the real estate as set out. The exemption shall be computed in accordance with the following schedule:

1.

During the first year through the fifth year the exemption allowed shall be 100 percent of the increase in assessed value resulting from the rehabilitation of the commercial or industrial structure.

2.

In the sixth year the exemption allowed shall be 80 percent of the increase in assessed value resulting from the rehabilitation of the commercial or industrial structure.

3.

In the seventh year the exemption allowed shall be 60 percent of the increase in assessed value resulting from the rehabilitation of the commercial or industrial structure.

4.

In the eighth year the exemption allowed shall be 40 percent of the increase in assessed value resulting from the rehabilitation of the commercial or industrial structure.

5.

In the ninth year the exemption allowed shall be 20 percent of the increase in assessed value resulting from the rehabilitation of the commercial or industrial structure.

6.

In the tenth year and thereafter the exemption shall terminate. The exemption as set out above shall commence on January 1 of the year following completion of the rehabilitation or replacement and shall run with the real estate as set out.

b.

Effect on land book assessment. Nothing in this section shall be construed as to permit the commissioner of the revenue to list upon the land books any reduced value due to the exemption determined as provided in section 50-78(e)(4)a.

c.

Application; fee and process. Any qualified commercial or industrial real estate owner desiring the exemption provided by this section shall file an application, and pay any associated fee, with the community development and planning department. The application shall be filed and processed in accordance with the following procedures:

1.

The owner shall file an application with the department of community development prior to the initiation of the rehabilitation of the structure and shall include the non-refundable processing fee. A copy of the application will be forwarded to the commissioner of revenue.

2.

Within a reasonable time after receipt of an application, the commissioner shall determine if the structure described by the application meets the age, location, and use criteria of an eligible structure and shall determine the assessed base value of the structure if it is an eligible structure. If the structure is not an eligible structure, the commissioner shall, in a timely manner, provide the owner with written notice of such determination.

3.

The rehabilitation must be completed (and evidenced by the date of the certificate of occupancy issued by the city building official) within two years after the date of the filing of the application.

4.

Within 60 days of the issue date of the certificate of occupancy, the owner shall notify the commissioner in writing that the rehabilitation is complete, and the commissioner shall, within a reasonable time period, inspect the property to determine whether the subject of the application is an eligible structure and to determine the amount of the rehabilitated real estate tax exemption based on the rehabilitation value.

5.

Upon determination of the tax exemption amount, the commissioner shall provide timely notice to the city manager, enterprise zone administrator, and city treasurer. Following this notification, the city council may authorize the commissioner of revenue to exonerate the appropriate value in order to carry out the tax exemption.

6.

The exemption resulting from the rehabilitation of an eligible structure shall commence on January 1 of the next tax year following completion of the rehabilitation, as defined by the date of issuance of the certificate occupancy, and the commissioner's determination that the structure is eligible for the tax exemption.

7.

The rehabilitated real estate tax exemption shall run with the real estate for a period of ten years from the commencement of the exemption as set forth in this section. The owner of such real property, during each of the years of exemption, shall be entitled to the amount of exemption as described in the ten-year decreasing exemption schedule described in subsection (4)a. above, subject to the requirement in subsection 8 below.

8.

Only one tax exemption under this section may be applicable to any eligible structure during the life of the structure.

9.

The making of any false statement in any application, affidavit or other information supplied for the purpose of determination of eligibility and the amount of the rehabilitated real estate tax exemption shall constitute a class 2 misdemeanor.

10.

The commissioner, with advice of the city manager and city treasurer, may adopt and promulgate rules and regulations not inconsistent with the provisions of this section as are deemed necessary for the effective administration of this article.

d.

Verification of eligibility. No property shall be eligible for such exemption unless the appropriate building permits, including a certificate of occupancy, have been acquired and the commissioner of the revenue has verified that the rehabilitation indicated on the application has been completed, and evidence is provided that the rehabilitation has met the threshold requirements in subsection (4) above. In addition, all current city taxes on the real estate must be paid for the property to be eligible for the real estate tax exemption.

e.

Avoidance of duplicative incentives. The amount of exemption may be limited by other incentives or cash grants that could provide greater monetary benefit to the property owner. An applicant may not be eligible for both an exemption under this section in addition to a cash grant based on anticipated real estate tax revenue. The director of economic development may make a determination, considering also the preference of the applicant, as to the preferred incentive method, and shall make that determination known to the commissioner of revenue.

f.

The exemption created by subsection (e)(4) shall be available to an owner for only so long as the real estate continues to be used for commercial and industrial use. For any property to qualify, the real estate must be in use as solely commercial or industrial use at the time of the initial notification of completion of the rehabilitation, and at the beginning of the tax year (January 1) for subsequent years of eligibility.

(5)

Expedited permitting. The incentive is meant to assist companies that are locating or expanding inside the enterprise zone overlay district with getting active assistance from the city in expediting any permitting process that may be required at the local level.

(f)

Application. Any new business firm seeking to receive local enterprise zone incentives shall make application to the local zone administrator on forms provided by City of Bristol Community Development and Planning Department.

(1)

The local zone administrator may require the new business firm to provide documentation establishing that said new business firm has met the requirements for the receipt of local enterprise zone incentives. Failure to provide requested documentation shall result in a denial of the new business firm's application for local incentives.

(2)

Upon approval of any new business firm application for local enterprise zone incentives, the local zone administrator shall submit a written report to the city manager indicating the name and address of the qualifying business firm and the local enterprise zone incentives for which it is qualified. The local zone administrator may require the new business firm to provide additional documentation from time to time to assure that said new business firm retains the requisite qualifications for the receipt of local enterprise zone incentives.

(3)

In the event that any new business firm fails to maintain the requisite qualifications for the receipt of local enterprise zone incentives, the local zone administrator shall inform the new business firm, in writing, that it is no longer qualified for the receipt of local incentives and shall send a copy of said notice to the city manager.

(Ord. No. 20-4, 11-24-20)