Richmond’s Urban Enterprise Zone, 1 of 14 statewide, renewed for 5 years
Ed DeLaPaz, director of Richmond’s Urban Enterprise Association, speaks to Richmond Common Council at a Monday, Dec. 2, 2024 meeting. DeLaPaz requested a five-year renewal of the Urban Enterprise Zone, which was unanimously approved.
Business owners who hope to set up shop in Richmond in the near future received good news at Monday night’s common council meeting.
The city’s Urban Enterprise Zone, established by the Richmond Urban Enterprise Association on Dec. 1, 1984, as a way to offer tax incentives for businesses to move and relocate into the zone, was unanimously approved by council members for a five-year renewal.
Ed DeLaPaz, director of the Urban Enterprise Association, said the zone encompasses downtown, the Depot and Starr districts and out to where the Old Reid Hospital was located.
The incentives offered to businesses, DeLaPaz said, are through a tax abatement system, where portions of the savings over the 10-year period of the abatement are used to fund the UEA.
Businesses that buy a new building, manufacturing or equipment or have to do repairs or improvements are eligible to apply for the abatement on the UEA’s website.
“The funds then are used and allocated to basically promote small businesses entrepreneurs, and then kind of just answering the needs of the community,” he said.
In the past, DeLaPaz said, the money has been used for the Meltdown Winter Ice Festival, self-defense classes, technology classes for older generations and YouTube and podcasting training for younger generations, among other opportunities, such as applying for grants.
“It’s a great learning opportunity,” he said.
“I’ve worked with several small businesses over the last four years that I’ve been the director of the UEA on training them on how to apply for grants. A lot of times they can come and I can sit down and walk them through what a grant process is, and then they can use that experience to apply for grants at the state level or locally through the foundations throughout all of Wayne County.”
One thing that is coming to an end for the UEA this year, however, is the Employment Expense Credit, which was an incentive for businesses to hire local residents by receiving up to $1,500 in tax credit at the state level for each qualified employee.
“That was something that was set up through the state and they passed a resolution in March of 2024,” DeLaPaz said. “That will be kind of one of the negatives, as that won’t be another system that we have to kind of incentivize businesses to come into our neighborhoods and everything.”
Council President Gary Turner said there would be a major advantage to maintaining the UEA through prospective development along Main Street for businesses that would benefit from the tax credits and grant programs. DeLaPaz agreed.
Richmond’s Urban Enterprise Association is one of 14 in the state and was one of eight up for renewal this year. The current resolution is expected to expire on Dec. 31, 2029.
