                                 CODE OF VIRGINIA

ENTERPRISE ZONE DESIGNATION (§ 59.1-542)

A. Upon the Department&#8217;s announcement of periodic zone designation
competitions, the governing body of any county or city may make written
application to the Department to have an area or areas declared an enterprise
zone. Such application shall include a description of the area or areas to be
included, the development potential of these areas, the need for special state
incentives, the local incentives that shall be provided to support new economic
activity, and other information that the Department deems necessary to assess
requests for designation.

B. Two or more adjacent localities may file a joint application for an
enterprise zone. Localities applying for a joint zone shall demonstrate a
regional need for an enterprise zone and a regional impact that could not be
achieved through a single jurisdiction zone. Applicants for a joint zone shall
also specify what mechanisms will be used to ensure that the economic benefits
of such a zone are shared among the applicant localities.

C. An enterprise zone may consist of no more than three noncontiguous areas. The
aggregate size of these noncontiguous zone areas shall be as follows:

   1. For cities, the minimum size of an enterprise zone shall be one-quarter
   square mile and the maximum size of an enterprise zone shall be one square
   mile or seven percent of the jurisdiction&#8217;s land area or an area that
   includes seven percent of the population, whichever is largest.

   2. For towns designated as enterprise zones under former &#xA7;&#xA7; 59.1-272
   through 59.1-278, 59.1-279.1, or 59.1-280.2 through 59.1-284 of the Enterprise
   Zone Act (&#xA7; 59.1-270 et seq.), the size of an enterprise zone shall
   conform to the size requirements for cities in subdivision 1.

   3. For unincorporated areas of counties, the minimum size of an enterprise
   zone shall be one-half square mile and the maximum size of an enterprise zone
   shall be six square miles.

   4. For consolidated cities the enterprise zones in cities for which the
   boundaries were created through the consolidation of a city and county or the
   consolidation of two cities, the enterprise zone shall conform substantially
   to the size requirements for unincorporated areas of counties in subdivision
   3.
   				In no instance shall a zone consist only of a site for a single business
   firm. Localities shall be limited to three enterprise zone designations.

D. A joint enterprise zone shall consist of no more than three noncontiguous
zone areas for each participating locality. The aggregate size of these
noncontiguous areas shall be specified by regulation.

E. Upon recommendation of the Director of the Department, the Governor may
designate up to 30 enterprise zones in accordance with the provisions of this
chapter. Such designations are to be done in coordination with the expiration of
existing zones designated under earlier Enterprise Zone Program provisions. The
initial round of six zone designation applications and approval may be conducted
prior to adoption of final program regulations provided that the process is
consistent with the provisions of this chapter. Enterprise zones shall be
designated for an initial 10-year period except as provided for in subsections A
and B of &#xA7; 59.1-546. Upon recommendation of the Director of the Department,
the Governor may renew zones designated on or after July 1, 2005, for up to four
five-year renewal periods and zones designated prior to July 1, 2005, for up to
two five-year renewal periods. Recommendations for five-year renewals shall be
based on the locality&#8217;s performance of its enterprise zone
responsibilities, the continued need for such a zone, and its effectiveness in
creating jobs and capital investment. Notwithstanding any provision to the
contrary, any enterprise zone in effect as of June 30, 2024, shall be extended
for an additional four-year period, in addition to any renewal periods provided
by this section.

F. Localities that have zone designations are responsible for providing the
local incentives specified in their applications, providing timely submission of
enterprise zone reports and evaluations as required by regulation, verifying
that businesses and properties seeking enterprise zone incentives are physically
located within their zones, and implementing an active local enterprise zone
program within the context of overall economic development efforts.

HISTORY: 2005, cc. 863, 884; 2018, c. 315; 2019, cc. 119, 496; 2024, cc. 631,
686.