Proposed fund could aid local business expansion
By Greg Pearson STAFF WRITER

The county is attempting to find funding for a new interchange at Interstate 295 for Meadowville Technology Park. Many believe the interchange would increase the park's marketability.

The Chesterfield Economic Development Department is proposing establishing a $200,000 fund to aid local business growth. The amount and purpose is under internal county government review and might be approved next month.

"It's not a whole lot of money, but we hope to grow the amount annually," said Economic Development Director Will Davis. "It's not for working capital but for expansion of existing businesses." More than 70 percent of Chesterfield's business growth comes from existing businesses.

Called the Business Expansion Incentive Fund, the money would come from removing the Business Professional Occupational Licensing (BPOL) tax cap estimated to generate $1.3 million in FY09. Currently, most of the BPOL cap money is proposed to help fund a cloverleaf interchange for Meadowville Technology Park in eastern Chesterfield with Interstate 295.

If the fund is approved, existing businesses could apply for a grant or low-interest loan through the Economic Development Department. Typical uses for the funding would include public utilities, technology infrastructure, site preparation, recruitment and training. It would not be used for business refinancing or debt restructuring.

Business group

The Chesterfield Economic Advisory Committee is tentatively scheduled to meet on Mar. 17. The county formed the 15-person committee last year to get input from business leaders. The group includes the leaders of the Chesterfield County Chamber of Commerce, the Chesterfield Business Council (CBC), the Retail Merchants Association, Ettrick Business Council, Southport Business Association, Gateway Association, Asian American Business Assistance Center, Western Chesterfield Business Association, Chesterfield Business Association, Jefferson Davis Association, the Virginia Hispanic Chamber of Commerce and three at large members.

"We advise the Economic Development Department on the business community's positions on economic issues to preserve our quality of life," said Jay Lafler, the group's chairman.

Last month, the government committee of the county's chamber recommended to its board that it endorse removing the BPOL cap for the I-295 interchange. The committee's recommendation urges the BPOL cap be reinstated when the county debt is paid off and asks the county board to also dedicate one penny of the real estate tax rate for the Meadowville interchange. That one penny would also end after the funding is raised. The chamber board is expected to vote on the recommendation this month.

The CBC has endorsed BPOL funding above the cap for Meadowville. The BPOL tax has been capped at $15.6 million as a county revenue source for several years, and if it is removed, Chesterfield is expected to garner $1.3 million during the first year for Meadowville and the investment fund. One penny of the real estate tax rate would raise $3.2 million. That money would be leveraged to borrow money to build the interchange more quickly. The county share of the $40 million interchange is estimated to be $18 million. Congressman Randy Forbes has secured about $4 million in federal funding while the county is soliciting money from the state for the balance.

Numerous county officials have said the interchange is necessary to increase the marketability of the 1,300-acre Meadowville site, which borders I-295 near the Varina-Enon bridge. The park was originally proposed for semiconductor manufacturers and other high-tech companies, but its master plan was expanded in June 2006 to a mixed-use development for office, research and development, technology-based and industrial users. Meadowville's major tenant is Northrop Grumman's Commonwealth Enterprise Solutions Center, which manages the computer systems and data center functions of about 90 of Virginia's executive branch agencies.