Incentive Offered for Downtown Investment

In an effort to help spur development and encourage the rehabilitation of older buildings, the Town Council has decided to begin offering "Redevelopment Incentive Grants" to those who want to invest in downtown.

The town will, in effect, wait five years before taxing any improved property downtown at its newer, reevaluated higher value. The Downtown Development Association, which has pushed for the new incentive, feels the grants will encourage development downtown over other areas, while providing an eventual source of more revenue to the town.

Town Manager Steve Biggs said some businessmen have already indicated an interest in taking advantage of the incentive.

“I think this has the potential to have a tremendous impact,” Biggs said. “I think this is very progressive.”

Here's how the plan will work: When a downtown building is improved and it's value goes up, the town will rebate back the difference between what the owner pays now in property taxes and the new, higher amount. After three years, the town will give back only 75 percent of the difference, and after four years, the rebate is only half. In the fifth year, the owner gets back only a quarter of the difference. After that, the town keeps the full amount.

“It's a win-win situation,” said Downtown Development Coordinator Bruce Naegelen.

The Development Association believes the incentive will result in more commercial development and better-looking buildings, as well as more places to shop and eat downtown.

Now that the town has given its approval, the Association plans to go to the County with the same request.

The plan is modeled after similar plans now in force in Selma and Smithfield.