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To authorize the Chief Administrative Officer to submit four separate applications to the Virginia Department of Housing and Community Development to (i) amend the boundaries of Enterprise Zone 19 and Enterprise Zone 28A within the city of Richmond and (ii) modify the local enterprise zone incentive package for the amended Enterprise Zones.
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BE IT RESOLVED BY THE COUNCIL OF THE CITY OF RICHMOND:
That the Chief Administrative Officer, for and on behalf of the City, be and is hereby authorized to submit four separate applications and all necessary supporting documentation to the Virginia Department of Housing and Community Development. Such applications shall:
(i) Amend the boundaries of Zone 19 and Zone 28A substantially as shown on the attached two-page document entitled “Attachment: Proposed Enterprise Zone Boundary Amendment Maps, Proposed Enterprise Zone Boundary Changes;” and
(ii) Amend the local enterprise zone incentive package for the amended Zone 19 and Zone 28A substantially as described in the applications and on the attached document entitled “Proposed Richmond Local EZ Incentive Charts, Chart 1: Virginia Enterprise Zone Amendment Incentive Deletions & Amendments;”
BE IT FURTHER RESOLVED:
That the City agrees to operate the local enterprise zone incentives added through the applications in place of the local enterprise zone incentives deleted through the applications.
City of Richmond
Intracity Correspondence
DATE: March 31, 2026
TO: The Honorable Members of City Council
THROUGH: The Honorable Dr. Danny Avula, Mayor
THROUGH: Odie Donald, Chief Administrative Officer
THROUGH: Sharon Ebert, Deputy Chief Administrative Officer
FROM: Angie Rodgers, Director, Department of Economic Development
RE: Resolution Supporting Enterprise Zone Amendment
ORD. OR RES. No.
PURPOSE: To authorize the Chief Administrative Officer to submit four applications to the Virginia Department of Housing and Community Development (DHCD) to amend the boundaries of each of the City’s two enterprise zones and to modify the local incentive package for such zones to better align with current economic conditions, adopted planning documents, and City priorities.
BACKGROUND: The Enterprise Zone (EZ) program is a partnership between the Commonwealth of Virginia and the City of Richmond that supports economic development within designated geographic areas (Zones 19A and 28A). Private economic development projects within the boundaries of an enterprise zone have access to two grant programs from the Commonwealth: the Real Property Investment Grant and the Job Creation Grant. In the past three award years, Richmond-based projects have been awarded $3.9 million in state funds.
The current Enterprise Zone boundaries and incentives have remained largely unchanged for more than a decade. The proposed changes align the boundaries and the incentives with the Richmond 300, the strategies articulated in the adopted Strategic Plan for Equitable Economic Development (SPEED) and the City’s Mayoral Action Plan and reflect shifts in market conditions and redevelopment patterns.
To inform the proposed zone amendments, the Department worked with a consultant specializing in economic development incentives to conduct a comprehensive review of the Enterprise Zone program. This review included analysis of business data, evaluation of coverage gaps, exploration of alignment opportunities with other incentive programs, like CARE and the partial commercial tax abatement program, and a parcel-level review to identify strategic additions near existing boundaries. The Department of Planning and Development Review (PDR) examined the current and proposed boundaries to ensure alignment with Richmond 300 and priority growth nodes. The Commonwealth’s Department of Housing and Community Development reviewed the proposed changes for alignment with state regulations. Interviews with business owners, grant recipients, developers, and community stakeholders provided insight into market conditions, redevelopment challenges, and areas where the Enterprise Zone coverage could support future investment.
The Commonwealth limits the amount of acreage in an Enterprise Zone and the number of non-contiguous parcels. The parcels (415.4 acres) that would be removed under the amendments are owned by governments or institutions that do not leverage the program, such as the Commonwealth of Virginia, Virginia Commonwealth University, the Science Museum, and Richmond Marine Terminal. The 673.8 acres of recommended additions add commercial areas previously not included, like Fulton, Stoney Point Fashion Park, and areas along Walmsley Blvd., and fill in missing parcels of areas currently covered (for example, along N. 25th Street, North Ave., Chamberlayne Ave., Hull St., and Midlothian Turnpike).
To participate in the Enterprise Zone, the Commonwealth requires that the City provide local incentives, which it does through six small reimbursement grant programs with award maximums ranging from $1,000 (Loan Fee Rebate) to $10,000 (Machinery and Equipment Rebate and Relocation Rebate). The incentives are administered through a cooperation agreement between the City and the EDA, typically approved at the start of each fiscal year, and are funded with $400,000 in the Department’s annual budget.
The number of programs managed (each with separate rules and processes) is administratively burdensome and hard to market, and the low dollar value of the awards has limited impact. The proposed changes retire three of the six grant programs (the loan fee rebate, the development fee rebate, and the brownfield assessment rebate) and enhance the three remaining programs: the machinery and equipment rebate and the relocation rebate (which would be renamed the business investment grant), and the employee assistance grant.
The proposed incentive amendments must be provided to DHCD for review and approval. Once approved, additional performance terms and guidelines will be brought for City Council approval as part of the FY27 Enterprise Zone Cooperation Agreement. The proposed boundary amendments will also be submitted to DHCD for review and approval. Once approved, projects within the updated boundaries will retroactively have access to state enterprise zone benefits as of January 1, 2026.
STRATEGIC INITIATIVES AND OTHER GOVERNMENTAL: The Enterprise Zone is jointly administered by the Virginia Department of Housing and Community Development. Zone 28A is a joint Enterprise Zone with Henrico County (Zone 28B). The state requires a supportive resolution from the Henrico Board of Supervisors for boundary changes in Richmond. The program is administered through a cooperation agreement with the Economic Development Authority.
FISCAL IMPACT: Enterprise Zone program funds were included in the adopted Fiscal Year 2026 budget.
DESIRED EFFECTIVE DATE: Upon Adoption.
REQUESTED INTRODUCTION DATE: April 13, 2026
CITY COUNCIL PUBLIC HEARING DATE: May 11, 2026
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Finance and Economic Development Standing Committee
AFFECTED AGENCIES: Department of Economic Development
ATTACHMENTS:
-Attachment: Proposed Enterprise Zone Amendment Maps, Proposed Enterprise Zone Boundary Changes
-Proposed Richmond Local EZ Incentive Charts, Chart 1: Virginia Enterprise Zone Amendment Incentive Deletions & Amendments
- Proposed Richmond Local EZ Incentive Charts, Chart 2: Virginia Enterprise Zone Amendment Incentive Details
STAFF: Jackie Teemer, Department of Economic Development
Katie McConnell, Department of Economic Development