City distributes $92,000 in incentive grants
It could be said incentive grants are the carrots that cities dangle in front of businesses to entice them to come to their area.
Suffolk’s Economic Development Authority approved $92,000 in incentive funds on Wednesday to Northgate Commons, LLC and Prologis.
“It becomes icing on the cake for a business to build in Suffolk,” Suffolk Economic Development Director Kevin Hughes said. “Our incentive program is ongoing and allows us to compete in the marketplace. Whether we’re in a struggling or thriving economy, it’s important to bring new developments to the city.”
The funds are set aside in Economic Development Department’s Investment Program and calculated based on anticipated future tax revenue the city will receive due to the business or development being in Suffolk.
Northgate Commons, LLC, a development company, received $80,000 of the funds for completing a building in Northgate Commons, which it developed.
The company did not receive incentive funds on the first building there because it did not meet a construction deadline, but it may receive additional incentive funds for another building if all requirements are met.
Hughes explained requirements are set between the city and developer and can include square-footage, usage and a mutually agreed upon date of completion.
The tenant of the third building will be Huff Logistics, according to Hughes.
An additional $12,000 in incentive funds was granted to Prologis, a company that owns land off Northgate Commerce Parkway, for their work to extend the road to the back of the park.
“It opens up new parcels within the park for us and creates access to the land they own,” Hughes said.
The road will allow access to the company’s 1,700-square-foot building that is in the works.
It is only after the projects are completed and all requirements agreed upon are met that the funds are distributed.
“The building phase is when a company or developer experiences the largest amount of expenses,” Hughes said. “The costs are significant. We offer them a little money up-front that we project we’ll make from tax revenues they’ll bring in the future to help with those up front costs.”