NORTHERN VIRGINIA DAILY
Article date: November 16, 2002

EDA: Incentives needed for Avtex site

"There is going to be a certain stigma and perceived liability."

Stephen A. Heavener
EDA executive director
By: Mary Beiler

In an effort to help market the Avtex site, the Front Royal-Warren County Economic Development Authority is looking for incentives to attract future development.

"I believe there is going to be a certain stigma and perceived liability associated with any new development at Avtex," said EDA Executive Director Stephen A. Heavener.

On Friday, EDA members discussed the option of offering a tax exemption as an incentive for businesses to locate on the site, an approach that County Attorney Douglas W. Napier said is allowed under state law.

Environmental sites, such as the Avtex Redevelopment site, may be eligible for tax exemption for up to five years, Napier said.

From 1940 until 1989, the facility employed more that 2,500 people to manufacture rayon, polyester and polypropylene fibers for commercial, defense and space industries, according to the EDA's Web site. Avtex Fibers Inc. purchased the operation in 1976 and continued manufacturing operations until 1989, when Avtex closed the plant and declared bankruptcy.

Redevelopment of the Avtex site started as an idea in the 1990's. A conservancy park, business park and soccer complex are planned at the site in the future.

The EDA is proposing to deduct 50 percent of the real estate taxes for five years as an incentive for new businesses to locate at the site. The ordinance would be modeled after the incentives for businesses in the enterprise zone, which decreases the amount of tax credits for newly created or expanded industries.

The exemption for Avtex would apply only to the 160 acres scheduled for redevelopment, Heavener said. This include the commercial and retail portion at the former packing lot on the north side of Kendrick Lane, across the street from the former Administration building.

The EDA hopes to develop that area as a business park once the site has been fully restored, Heavener said.
At one time, the Avtex site was included in the state enterprise zone, but was taken off the list in 2000, Heavener said. Because it was removed, the EDA is hoping to market the facility by using a similar tool.

The challenge, according to Heavener , will be in determining the level of incentives to make the Avtex site competitive with other sites.

Both the Town Council and the Board of Supervisors would have to approve such an ordinance, Napier said.

The EDA directed Napier to research how the state statute applies to the Avtex facility. The EDA then will have to develop a specific proposal for the town and county.