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Work Session   Item #:
Work Session Meeting
Proposed Changes to the Real Estate Tax Abatement Program
Telly D. Tucker
Work Session: 04/16/2019
As allowed under Section 58.1 of the Code of Virginia, the City of Danville offers a Real Estate Tax Abatement Program (RETA) that is used as an economic development tool to promote redevelopment within historic districts (Downtown, Tobacco Warehouse, North Danville, Old West End, and Holbrook-Ross). This investment incentive is available for qualified rehabilitation of residential, commercial, industrial, hotel, and motel structures. For residential structures, the real estate exemption shall be equal to the increase in assessed value resulting from the rehabilitation and shall be for a period of no longer than fifteen (15) years. For commercial, industrial, hotel, and motel structures, the exemption shall be for a period of five (5) years at a descending rate as follows:
Year 1 - 100%
Year 2 - 80%
Year 3 - 60%
Year 4 - 40%
Year 5 - 20%
Year 6 - 0%
When first created, this program also included the Mill Historic District which covered the former Long Mill and Dan River Mill No. 8 (White Mill) sites. In the fall of 2009, this district was delisted by the Virginia Department of Historic Resources (VDHR) and the National Park Service (NPS) due to a loss of more than 50% of its resources (fire and demolition at the Long Mill Site). For this reason, the City changed the ordinance language in 2011 to remove this district from the program.
Since 2011, there has been significant investment within Danville's River District which includes the Downtown and Tobacco Warehouse districts, along with property that was once part of the Mill Historic District. In addition, Dan River Mill No. 8 (the White Mill) has been individually listed on the National Register of Historic Places. To help aid and encourage development of this significant structure, staff is requesting to update the language of this ordinance to include Dan River Mill No. 8 (the White Mill) as a qualifying structure for this program.
It is recommended that City Council approve the recommended changes to the Real Estate Tax Abatement Program.
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