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Hanover’s Perspective

Hanover Initiative Garners National Award, Business Opportunities

Hanover initiative garners national award, business opportunities

Hanover County has won a national award for a program intended to bolster economic development. Named the “Strategic Zoning Initiative,” the program creates a win-win situation for property owners who own large tracts within the suburban services area that are particularly well-suited for business purposes.

If land is designated for agricultural, forestry and open space purposes — and therefore assessed at a lower rate — the land owners can now request that the Hanover Board of Supervisors zone their property for certain economic development uses while continuing to be taxed at the lower rate. Also referred to as the Land Use Program, it allows qualified land to be taxed on a deferred basis. Five years of qualifying real estate taxes can be deferred with accruing interest until there is a change to a disqualifying use. Previously, if the parcel was rezoned to anything other than its qualified agricultural use, the deferred taxes and accrued interest would have been due at the time of rezoning from its qualified agricultural use. You can read more on the specifics of the program here.

It’s a simple yet innovative concept. Property owners can defer the costs associated with performing various studies until the property is developed, and the County can market the property for business growth.

“The properties zoned under this process will create long term tax benefits to county residents through increased employment opportunities, increased real estate tax assessments, sales tax, personal property tax, machinery and tools tax and merchants’ capital tax,” said David Maloney, Hanover County Director of Planning.

In 2015, three properties successfully completed the zoning process using this Initiative. The first parcel, identified as the Baldwin Gilman Tract, consists of nearly 96 acres located adjacent to Interstate 95. The second property, the Holland Cedar Lane Tract, consists of 118 acres at the intersection of Cedar Lane and Route 1. The third is the Holland Axselle Tract consisted of 286 acres at the intersection of Route 1 and Archie Cannon Drive.

Both cases were subject to public hearings in which input from citizens was sought and received. Conditions include appropriate buffering and screening as well as standards for master planning, architectural controls and landscaping requirements.

The Strategic Zoning Initiative was recognized by the National Association of Counties (NACo) with a 2016 Achievement Award.