CHESTERFIELD, Va. (WRIC) — Chesterfield County has approved a $1.8 million tax break for an apartment complex to be built on Route 1.
Jesse Smith, a deputy county administrator, told the Chesterfield Board of Supervisors that the incentive was authorized under a special area plan to revitalize the Route 1 corridor.
“This will actually be the first development to take advantage of this particular incentive policy,” he said.
The first phase will see developer Woda Cooper construct the project in two phases using financing from a state affordable housing program. Under that agreement, a portion of the units will be set aside for affordable housing, based on the area median household income.
The details of the first and second phases can be seen below:
The affordable housing component will be enforced by the state’s financing agreement with the developer, but the county also imposed conditions as part of their tax break, including requirements for extensive sidewalks, fitness and recreation areas, a large parking lot and the use of brick and Hardi-Plank for the buildings’ facades.
The tax break offered to the developer is aimed at reducing the cost of the increase in their property value as a result of the new construction. The developer will still pay the full taxes due on the current value of the property, but receive a break on any increase in value.
“The grant agreement is similar to the ones you’ve executed in the past with other developments,” Smith said.
The ten-year agreement specifies an 80% reduction for the first 7 years, then a 60% reduction on the eighth year, 40% on the ninth and finally, a 20% reduction on the tenth.
According to Smith, the county expects the reduction will ultimately total “somewhere in the ballpark of $1.8 million for the life of the agreement.”
In return, the developer is required to complete the construction by next December and invest a total of no less than $10 million in the project.