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Richmond Business Incentive Program

New Business Packets are available at the Village Hall, upon request.

purpose and need

Throughout the Village, fully improved parcels of land have existed in their undeveloped state for excessive periods of time. Additionally, there are numerous buildings in the Central Business District and outlying areas that exist in a continually vacant state. The purpose of the Richmond Business Incentive Program (RBIP) is to encourage investors and businesses to build on and improve commercial property they would otherwise have marginal interest in. The program will, thereby, help ensure a diversified tax base to offset residential growth, create new jobs, and promote the overall vitality of the business environment within the Village of Richmond.

Summary of Program

The RBIP is a cooperative venture of participating taxing bodies having overlapping jurisdiction within the boundaries of the Village of Richmond. Working together, the participating local governments have agreed to provide property tax abatement incentives to business owners and investors that increase the assessed value of land and buildings located within the Village of Richmond through new construction and renovation of existing buildings. Eligible projects receive property tax abatement from each of the participating taxing districts on a graduated, declining property tax abatement scale as applied to newly created assessed value. The program is capped at an aggregate of$3 million of abated EA V for all active participants in a given year.

Eligibility

To eligible for the program applicants would meet the following criteria:

  • The real property, land or buildings, is located within the municipal boundaries of the Village of Richmond and has a legal business/commercial/industrial zoning classification.
  • Demonstrated financial strength
  • The planned use of the property is 100% business, commercial or industrial.
  • An existing building has been vacant for at least four months prior to application.
  • In the case of new construction on vacant land, the land has been vacant for at least 24 months prior to application.
  • In the case of demolition of one or more buildings on one or more parcels to create a buildable site, the base assessed value used would be the year prior to any demolition.
  • Projects must be related to establishment of a new business or continuation of existing business.

Abatement Levels

Property tax abatements are applied only to new taxes levied resulting from newly created assessed value and will be abated in at graduated declining levels. Abatement percentages will be applied to actual tax levies due less the levy applied in the year prior to application, regardless of application estimates.
Year l = 100%
Year 2 = 66%
Year 3 = 33%

Application and Approval Process

An applicant meeting the eligibility standards will submit a no fee application along with building plans, estimate of improved value, and current assessment information to the Village of Richmond. Richmond Staff will review and determine if the application meets the program Guidelines. If the applicant receives a positive recommendation, the Village will prepare an agreement on the approved form. An agreement signed by the applicant will be forwarded to each participating Taxing Body for consideration. Participating Taxing Body will review the application and consider approval of an abatement agreement within 30 days of receipt.