State officials have selected Newport News to receive a new enterprise zone, an economic development tool to aid local businesses, Gov. Terry McAuliffe announced Thursday in Newport News.
The new zone includes portions of the central and north sections of the city, hugging upper Warwick Boulevard between Fort Eustis Boulevard and Oyster Point Road. Oakland Industrial Park, Continental, the Ferguson headquarters and other businesses around the Newport News-Williamsburg International Airport and the Patrick Henry CommerCenter are included in the new zone, effective Jan. 1.
Businesses in the zones can get state grants toward the cost of renovation or expansion of buildings, small grants for creating new jobs, and breaks on city business taxes.
Twelve localities submitted applications for the five available zones, a news release from McAuliffe’s office said.
James City County and Williamsburg had applied for enterprise zones, but weren’t selected, WYDaily.com reports here. Last year, James City, Williamsburg and York jointly applied for a regional enterprise zone, but that failed as well.
Newport News was chosen over other localities partially because its economy has been affected by federal cuts, McAuliffe said.
“We try to go to distressed communities that have lost economic activity,” McAuliffe said. “Obviously the federal defense cuts, defense spending, all of that impacts Newport News greatly because of the shipbuilding, so it fit all the criteria. This is an area that we need to grow and diversify the economy. They have a track record for doing it successfully.”
The city’s other zone, which expires in 2024, includes the Southeast Community, downtown and City Center, said George Schraudt, economic analyst in the city’s development department. The zone was originally two zones, but was combined in 2004.
“As we’re trying to do all across the commonwealth, Newport News is working very hard to diversify their economy,” McAuliffe said. “Newport News has continuously sought to leverage its strengths and assets, to target economic sectors where it has a competitive advantage over other localities. Obviously these sectors include advanced manufacturing, aviation industries, food processing, manufacturing distribution and headquarters and, most importantly, shipbuilding.”
Along with Newport News, the city of Bristol and Page County will receive new enterprise zones. The city of Galax, Carroll and Grayson counties will share a regional zone, as will Accomack and Northampton counties. Five zones designated in 2005 were also renewed, including one in Hampton.
Zones are designated for an initial 10-year period and may receive up to two five-year renewals for a total of 20 years, the release said. The state has 57 enterprise zones.
The governor made the announcement Thursday morning at International Communications Group, which is celebrating 20 years of business, in the Oakland Industrial Park.
Theresa Clift can be reached by phone at 757-247-7870.