The purpose of the technology zone overlay district is to encourage the creation and development of qualified technology businesses to encourage job creation, to take advantage of Poquoson's proximity to state and federal technology oriented facilities, and to encourage development that would not compete with existing businesses within the city. This will be done by incentivizing these businesses by relieving them of certain tax burdens by no more than 30 percent, for no longer than three years.

(Ord. No. 1411, § 1, 2-27-2012)

For purposes of this article, the following words and phrases shall have the meanings subscribed below, unless clearly indicated to the contrary:

Business means any corporation, partnership, S-corporations, limited-liability company or sole proprietorship authorized to conduct business in the Commonwealth of Virginia. The term "business" does not include organizations that are exempt from state income tax on all income except unrelated business taxable income as defined in the Internal Revenue Code, Section 512; nor does it include homeowners associations as defined in the Internal Revenue Code, Section 528.

Business incentive application means an application available from the City of Poquoson's Economic Development Office and reviewed by the economic development coordinator to qualify a business for incentives in the technology zones created by this article.

Capital investments means funds used by a technology business to purchase fixed assets and not funds used for day-to-day operating expenses. Fixed assets owned by the technology business that are moved into the technology zone from another location within the city shall not be included in the calculation of capital investments.

Economic incentives means the incentives defined in section 11.6-7 of this article.

Existing business means a business that was actively engaged in the conduct of trade or business in the City of Poquoson prior to the adoption of this article or a business that has previously received incentives under this ordinance.

Fixed asset means long-lived tangible property owned by a technology business that is used by the technology business in the production of its income including real estate, plant, machinery and equipment.

Internal Revenue Code means the Internal Revenue Code of 1986, as amended, Title 26 of the United States Code.

New technology business means a technology business not already existing within the City of Poquoson prior to the adoption of this article and has not received incentives under this ordinance before.

Qualified technology business means a technology business that has met and continues to meet the qualifications set forth in section 11.6-5 of this article.

Technology zone means properties determined to be within the areas specified in section 11.6-3 of this article.

(Ord. No. 1411, § 1, 2-27-2012)

This section establishes a technology zone overlay for the following zoning districts:

• Village commercial district, VC;

• Research and development district, R&D;

• General commercial district, GC;

• B-1 office/professional district (properties with frontage on Wythe Creek Road or Cary's Chapel Road only);

• B-2 Business/Commercial District (properties with frontage on Wythe Creek Road, Victory Boulevard and Little Florida Road only)

The technology zone is an overlay to these zoning districts and in no way shall supersede existing zoning ordinance provisions. Additional technology zones may be added by amendment to this section.

(Ord. No. 1411, § 1, 2-27-2012)

The economic development office shall develop criteria and guidelines for approval and adoption by city council, including, but not limited to, the level of capital investment and other investment, including number of employees and salaries of those employees required for any particular incentive, including tax incentives permitted under section 11.6-7 of this article. A business incentive application for the designation as a qualified technology business shall be made to the economic development office. Interested businesses should contact the economic development coordinator for an application. The city manager or his designee is authorized to negotiate performance agreements with potential new or expanded qualified technology businesses. City council shall have final approval authority for all such performance agreements. City council shall have final approval of any incentives beyond the scope of this article.

(Ord. No. 1411, § 1, 2-27-2012)

Only a qualified technology business is eligible for incentives. The mere use of computers or technology in the course of business activity is insufficient to cause a business to be a qualified technology business. Any questions of eligibility shall be determined by the city manager or his designee. A qualified technology business is a business model which is defined by one or more of the following:

1.

Design, or research and development of computer hardware or software, computer network protocols, information systems, Internet software, Internet data applications, data centers, etc.

2.

Production of multimedia products, training in the use of computer hardware or software or computerized mapping systems.

3.

Development of technology related to health, security, national defense, telecommunications, data warehousing, desktop publishing, wireless technologies or virtual technologies.

4.

Provision of internet services and business to business exchanges.

5.

Research, design and manufacture and development of biotechnology, pharmaceutical or medical technologies or products.

6.

Research, design and manufacture and development of electronics for lease, sale or license, including flexible printed circuits, custom integrated circuits, electronic assemblies, and medical electronic displays.

7.

Research, design, manufacture and development of electronic automobiles, buses and other transportation devices that do not use internal combustion engines as the primary means of propulsion.

8.

Research, design, manufacture and development of alternate energy technology or the energy production from such sources; to include wind turbines, photovoltaic cells, fuel cells, etc.

9.

Research and development related to computer and electronic systems, computer software, applied sciences, and physical sciences.

(Ord. No. 1411, § 1, 2-27-2012)

A qualified technology business applying for incentives must meet all of the following employment and capital investment requirements:

Minimum employment requirements:

1.

Five starting employees.

2.

Average salary: Although not a requirement, if the average salary meets or exceeds 1.5 X Poquoson's per capita personal income from the previous year (per the Virginia Economic Development Partnership) the project will meet the employment requirement for the Governor's Opportunity Fund.

Minimum investment requirement:

1.

Five hundred thousand dollars capital investment and 5,000 ft ² owner occupied.

(Ord. No. 1411, § 1, 2-27-2012)

Any qualified technology business will be guaranteed a 30 percent reduction, provided that the above requirements are met, on the business license tax, real estate tax, and business tangible property tax for three years. Additionally, the business must pay all taxes by the required deadline to maintain these incentives. If a business becomes delinquent on any city tax, said business will forfeit any due incentives. Lastly, any incentives not mentioned in this article will require city council authorization.

(Ord. No. 1411, § 1, 2-27-2012)