Goochland County Speculative Build Incentive

Purpose:

The purpose of this incentive is to increase the amount of speculative (spec) commercial space available on the market in the County. Spec space pertains to commercial buildings built by a developer that does not intend to fill the space with its own operations and does not have the building fully leased prior to construction. This incentive lowers the cost for developers to build spec space and promotes options for businesses considering expanding or relocating in the County.

This incentive is in the form of an annual rebate on the portion of the increased real estate taxes collected by the County based upon the increased assessment on the new building. The incentive is awarded for a maximum of three years from the issuance of a certificate of occupancy or until 75% of the space is leased.

Eligibility:

The County would provide a speculative building incentive for businesses that build a speculative product with a minimum investment of $5 million or 10,000 square feet of space. The building must be classified as office or industrial to be considered for the incentive. If the project is a mixed use, then a percentage of the project must be classified as office or industrial. Only the office or industrial components of project would qualify. 

All applications for the Speculative Build Incentive must have a return on investment (ROI) calculation that shows a clear increase in taxable value between existing assessment and value after final investment completed. The ROI analysis will be used to determine the amount of incentive awarded to the Applicant and must show a positive economic impact for the County.  No incentive amount will exceed the amount actually paid to the County in taxes. Eligible investment can include land purchase, site construction costs, infrastructure improvements (water, sewer, road construction), building construction costs, and equipment costs. 

Compliance:

In order to receive the rebate, the Grantee will have to submit the following items:

  • Receipt of taxes paid for the previous year
  • Proof of actual square footage constructed or receipts of investment
  • List of existing tenants, square footage, and suites

In addition, all measures set in the Performance Agreement must be met and verified before the Applicant is eligible to receive a rebate.