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A Guide to Selecting a Business Location in Virginia

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A Guide to Selecting a Business Location in Virginia VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION 2011 VIRGINIASite Selection GuideA GUIDE TO SELECTING A BUSINESS LOCATION IN VIRGINIA VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION 11VEDP2252_CNBC-VaBiz_Ad_ƒ.indd 1 7/6/11 4:29 PM FOR COMMERCIAL REAL ESTATE PROFESSIONALS Every Monday at noon, VIRGINIA BUSINESS delivers hot leads and fresh intel straight to your e-mail inbox. CRE Intel keeps you in the loop by providing a comprehensive roundup of regional power plays and industry developments in Virginia’s only statewide weekly commercial real estate intelligence report. CRE Intel: for you, about you, delivered to you. Sign up for your free subscription to CRE Intel at www.virginiabusiness.com VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE Why Virginia? irginia is an attractive place to live and work. Its many of its natives. low tax rates and prime location entice busi- Welcome to the 2011-2012 Virginia Site Selection ness investment, while its natural beauty and re- Guide. The guide provides an overview of Virginia’s busi- nowned education system benefit its residents. ness climate for anyone exploring a business relocation VThese factors have been recognized in outside stud- or expansion. The introduction will highlight some of ies. On the business side, Virginia has been ranked as Virginia’s greatest assets, including its incentives, public one of the best states for business by studies in many colleges and universities, natural and manmade infra- national rankings, including those by Forbes.com, CNBC structure assets and work force. A list of recent invest- and Pollina Corporate Real Estate. ments demonstrates the commonwealth’s ability to at- Other studies show that many people move to Vir- tract a wide range of businesses. ginia, and those who are born in the commonwealth The main portion of the guide will provide an in- tend to stay. In 2009, the Pew Research Center deemed depth look at specific site locations in Virginia. These Virginia as a “high magnet” and “high sticky” state, mean- profiles show the commonwealth’s wide range of po- ing it attracted many out-of-state residents but also kept tential business locations. Virginia’s economic climate: the business basics The advantages of doing business in Virginia: • Corporate income tax: 6 percent sector in 2010 was 6.55 cents in Virginia, compared The rate has not been changed since 1972. to 6.71 cents in the nation. • Total sales tax: 5 percent • Business advice 4 percent state and 1 percent local Virginia features more than 30 publicly funded and • Right-to-work state nonprofit small business incubators, which help new Virginia has the third-lowest unionization rate in and early-stage businesses grow. (www.vbia.org) the country at 5.4 percent. The private sector’s • Major firms call Virginia home unionization rate is just 2.6 percent. 31 Fortune 1000 firms are headquartered in Virginia • Business One Stop —and Northrop Grumman, the country’s largest Virginia offers an accessible website for entrepreneurs defense contractor, will join that list in summer 2011. that streamlines the business registration process. • AAA bond rating (bos.virginia.gov) Virginia’s AAA rating keeps interest rates low for state • Low utility costs borrowing and is a sign of good fiscal management. The average cost per unit of electricity in the industrial Source: Virginia Economic Development Partnership S4 AUGUST 2011 ADVERTISING VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE Key incentives Virginia offers a variety of incentives to encourage business investment and expansion. These include financial assistance, facilities development grants and tax exemptions. Following are some of the state’s most popular incentives. GRANTS Virginia Investment Partnership programs The Virginia Investment Partnership (VIP) Grant and the Major Eligible Employer Grant (MEE) are performance-based incentives to encourage capital investment by Virginia companies. Governor’s Opportunity Fund The Governor of Virginia can use these funds to help localities land an economic development deal. DESIGNated AREAS Enterprise Zones The Virginia Economic Development The Virginia Enterprise Zone program encourages Incentive Grant (VEDIG) investment and job creation in more than 50 This performance-based grant encourages compa- urban and rural sites throughout Virginia. It offers nies to locate significant headquarters or administra- cash grants for jobs that pay more than the federal tive operations in Virginia. minimum wage and offer health benefits. EXEMPTIONS Technology Zones Sales and use tax exemptions Localities can create technology zones that offer Virginia offers some exemptions from sales and use incentives such as fee waivers, local tax incentives tax, such as items purchased for resale or used in and special zoning treatment. manufacturing, pollution control devices, purchases used in R&D and charges for utilities and Internet Foreign Trade Zones access. Virginia’s Foreign Trade Zones encourage exports by U.S. manufacturers by eliminating or reducing Property tax exemptions customs duties. Property tax is handled at the local level. Virginia does not tax intangible property, manufacturers’ Defense Production Zones inventory, or manufacturers’ furniture, fixtures and These newly created zones allow localities to provide corporate aircraft. incentives to defense-related companies. Background photo by Cameron Davidson, ADVERTISING VIRGINIA BUSINESS S5 courtesy Virginia Tourism Corp. VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE Universities are economic development partners Virginia’s public universities have become key economic development partners in the state. These institutions are partnering with businesses on research projects, innovation and entrepreneurship. Many universities have built research parks that offer compa- nies the opportunity to partner with local colleges and universities on economic development projects. These relationships help Virginia land key investment opportunities. Following are examples of some university research parks around Virginia. Commonwealth Center for INNOVATION @ Prince William University of Virginia Advanced Manufacturing (CCAM) (Prince William County) Research Park (Charlottesville) (Prince George County) The business and technology park at- The 562-acre research park is a mixed- CCAM is a partnership involving Rolls- tracts biotechnology and life science use commercial development property. Royce, the University of Virginia and Vir- companies. George Mason University’s The park is zoned for office, light indus- ginia Tech. The center combines research life-science campus is the anchor of the try, hotel/conference center, retail and at universities with the product develop- park. laboratory commercial uses. The business ment of private companies. The center’s park is designed to be a corporate village goal is to accelerate technologies from The Institute for Advanced setting among natural beauty. developmental stage through proof of Learning and Research (Danville) concept and on to commercialization. The institute’s goal is to boost Southern Virginia Advanced Shipbuilding The U.Va.-Tech partnership was a key Virginia’s economy through advanced- and Carrier Integration Center factor in Rolls-Royce’s decision to open a learning programs, strategic research and (Newport News) $500 million engine components plant in advanced networking and technology. The VASCIC is a partnership among Prince George. The facility includes four research cen- electronic systems suppliers, software ters, including studies on motorsports suppliers, Navy laboratories and Virginia Innovation Research Park @ ODU engineering, unmanned systems and ro- universities to develop new technologies (Norfolk) botics, sustainable hor- Innovation Research Park is part of a 75- ticulture and forestry acre mixed-used development on Old and advanced polymers. Dominion University’s campus. It was The academic partners Outside accolades designed for businesses to have access are Virginia Tech, Averett to ODU’s research, students and faculty University and Danville Virginia’s politicians often tout the commonwealth’s members. Community College. business-friendly reputation, but they certainly aren’t the only ones talking. Virginia consistently ranks near the top of a variety of business rankings, including: • CNBC: “America’s Top State for Business” CNBC ranked Virginia No. 1 on its list of “Top States for Business” in 2011. Virginia has received the ranking for three out of the five- year history of CNBC’s rankings. Texas and Virginia have flip-flopped between first and second place on the list. • Forbes.com: “Best States for Business” Virginia ranked as the No. 1 spot on Forbes. com’s annual list for four years in a row. In 2011, the state ranked second. • Pollina Corporate Real Estate: Top 10 Pro-Business States Pollina Corporate Real Estate named Virginia No. 1 on its list of pro-business states in 2010. Virginia has landed the No. 1 spot on the list three other times: 2003, 2007 and 2009. S6 AUGUST 2011 ADVERTISING VIRGINIA SITE SELECTION GUIDE VIRGINIA SITE SELECTION GUIDE
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