Lynchburg favors change for city's enterprise zone

The city is moving ahead to change the borders of an economic development district that generates state grants for major renovation work.

Lynchburg officials are seeking to redraw one of two “enterprise” zones. The change will bring the midtown area into the district, as well as the Westover Dairy on Fort Avenue and parts of the commercial sector near Lynchburg General Hospital.

The addition of midtown, specifically, was a major goal. That area, which encompasses The Plaza shopping center, previously was the subject of a city-funded 2005 revitalization study.

To make room for these additions, officials plan to delete several residential neighborhoods. Homes do not qualify for state support under the enterprise program.

City Council voted in favor of the changes Tuesday. The decision is contingent on final approval from the state.

The Virginia Enterprise Zone program offers qualifying commercial properties partial reimbursement for major renovations. Grants also are available for business expansions that create new jobs.

Last year, 13 Lynchburg applicants reaped a collective $711,197 from the program.

Another alteration of the local zone is planned for next year — state law puts a cap on the number of changes the city can make at one time.

Property owners interested in joining the enterprise zone should contact the city’s Office of Economic Development. Officials already are considering re-admitting one building when the time comes.

The former Christ College property on Rivermont Avenue is being deleted under the current set of revisions. The property owner, who purchased the historic building with plans to renovate, expressed concern about the change, prompting city officials to put it on the list for 2009.

“We’ve got it all cleared up now,” said Realtor Gary Case, who represents owner Dennis Gibbs. “Everything’s fine.”

Lynchburg has two enterprise zones spanning a cumulative total of around 3,100 acres. A single zone can encompass up to 7 percent of a community’s area, under state law.

In other news from Tuesday’s City Council meeting:
- Council approved a new citizen participation plan for two troubled grant programs, the Community Development Block Grant and HOME Investment Partnerships Program. Changes include beefing up membership on a citizen’s advisory board, as well as expanding the board’s meeting schedule.
Both are federal programs that allocate money to the city for housing and community revitalization. Council has received criticism locally for its use of the money, specifically a decision to put a chunk of the CDBG funds toward a loan payment for the Bluffwalk Center, a downtown hotel and restaurant.
Local oversight of the programs also came under fire in a recent review by U.S. Housing & Urban Development inspectors. City officials are working with HUD to address those concerns.

- Council waived a municipal lien attached to a property it plans to acquire.
Habitat for Humanity is donating two vacant lots to the city as part of the public effort to preserve green space along the Fifth Street corridor. One lot — 1415 Fifth St. — is the subject of a $5,322.83 municipal lien filed for demolition costs, as well as penalties and interest.
Council voted to forgive that debt — which predated Habitat’s ownership of the land — in order to gain clear title to the property.

- Revisions to the environmental section of the comprehensive plan were kicked back to the planning commission for further review.
The Greater Lynchburg Environmental Network expressed concern some endeavors were not included in the new language, including a regional water supply study and a new Sustainable City initiative from local government. City Manager Kimball Payne said the utilities department also suggested additional edits.
The revised revisions will be brought back to council at an unspecified point in the future.