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To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to execute The Third Enterprise Zone Cooperation Agreement between the City of Richmond, Virginia and the Economic Development Authority of the City of Richmond for the purpose of administering the Enterprise Zone Program to stabilize and revitalize enterprise zone areas by stimulating private investment through financial incentives.
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THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That the Chief Administrative Officer, for and on behalf of the City of Richmond, be and is hereby authorized to execute The Third Enterprise Zone Cooperation Agreement between the City of Richmond, Virginia, and the Economic Development Authority of the City of Richmond for the purpose of administering the Enterprise Zone Program to stabilize and revitalize enterprise zone areas by stimulating private investment through financial incentives. Such agreement shall be approved as to form by the City Attorney and shall be substantially in the form of the document attached to this ordinance.
§ 2. This ordinance shall be in force and effect upon adoption.
City of Richmond
Intracity Correspondence
O&R Transmittal
DATE: August 28, 2025
TO: The Honorable Members of City Council
THROUGH: The Honorable Dr. Danny Avula, Mayor
THROUGH: Odie Donald II, Chief Administrative Officer
THROUGH: Sharon Ebert, Deputy Chief Administrative Officer
FROM: Angie Rodgers, Director, Department of Economic Development
RE: Authorization of Enterprise Zone Cooperation Agreement
ORD. OR RES. No.
PURPOSE: To authorize the Chief Administrative Officer to enter into the Third Enterprise Zone Program Cooperation Agreement with the Economic Development Authority of the City of Richmond (EDA) for the purpose of administering the Enterprise Zone Program.
BACKGROUND: The Enterprise Zone program is a partnership between the Commonwealth and the City of Richmond that encourages job creation and private investment in the City's designated Enterprise Zones. The City has two enterprise zones, Zones 19A and 28A. The Commonwealth approved both Zones for five-year extensions in December 2022. The City’s Enterprise Zones are best viewed through this searchable map <https://www.richmondeda.com/enterprise-zone-and-care-program-map/>.
Richmond's participation in the program enables economic development and redevelopment projects within the Enterprise Zones to access two state-level incentive programs - the Job Creation Grant program and the Real Property Investment Grant (RPIG) program. In the most recent funding cycle, $719,049.00 in state enterprise zone funds were awarded to Richmond projects.
The Commonwealth requires Richmond to offer incentives, which it does through six local reimbursement grant programs for businesses and property owners that invest and create jobs within the Zones. The maximum value of Richmond’s grants ranges from $1,000 to $10,000, depending on the program. As of June 2025, $225,224 in local Enterprise Zone funds were awarded to 47 applicants. The private investment associated with these projects was over $11.5 million.
The FY 2026 budget included $400,000 to support the Enterprise Zone program. The Cooperation Agreement between the City and the EDA establishes the framework for program administration. The FY 2026 Cooperation Agreement raises the maximum rebate amount for the machinery and equipment rebate from $5,000 to $10,000 and further clarifies terms of the program.
In late FY 2024, the City initiated a review of Enterprise Zone boundaries and incentives. Recommendations on boundary adjustments and incentive updates are expected in FY 2026.
STRATEGIC INITATIVES AND OTHER GOVERNMENTAL: The Enterprise Zone is a joint program between the Commonwealth of Virginia Department of Housing and Community Development and the City, with administrative support from the EDA. The use of targeted incentives to encourage revitalization and job creation and support business attraction and expansion is supported by the Strategic Plan for Equitable Economic Development.
FISCAL IMPACT: Enterprise Zone program funds were included in the adopted Fiscal Year 2026 budget.
DESIRED EFFECTIVE DATE: Upon Adoption.
REQUESTED INTRODUCTION DATE: October 14, 2025
CITY COUNCIL PUBLIC HEARING DATE: November 10, 2025
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Finance and Economic Development Standing Committee
AFFECTED AGENCIES: Department of Economic Development
ATTACHMENTS: The Third Enterprise Zone Cooperation Agreement Between the City of Richmond, Virginia, and the Economic Development Authority
STAFF: Jacquelyn Teemer, Department of Economic Development
Katie McConnell, Department of Economic Development