Henrico County Board of Supervisors Approves Substantial Tax Rate Cut of 88.6% for Data Centers

HENRICO, VIRGINIA, April 25, 2017 – The Henrico County Board of Supervisors approved a separate tax rate that will dramatically reduce the property tax burden for businesses whose primary services are storage, management and processing of digital data.

The move drastically cuts the current business property tax rate on computer and related equipment for data centers from $3.50 per $100 of assessed value to just $0.40 per $100. Henrico now has the most favorable tax treatment for data centers of any Virginia locality with a population greater than 25,000. The approved rate will go into effect beginning with the 2017 tax year.

“By creating this new rate for data centers, Henrico County is positioning itself to attract more businesses in this high-growth sector,” Henrico County Manager John Vithoulkas explained. “These businesses bring high-paying jobs to the region, along with significant and ongoing capital investment.”

Jim Reinhart, Chief Operating Officer, Quality Technology Services (QTS), agreed, saying, “With reliable, affordable energy, strong connectivity and a skilled workforce, Henrico County is an attractive data center market. QTS applauds Henrico and its leaders, who continue to identify innovative ways to support responsible growth for the county. The proposed tax reduction will make Henrico an increasingly attractive option for data center providers like QTS to grow and prosper.”

“This property tax incentive is great news for our existing data centers and ultimately for new data center projects that choose to capitalize on sites such as White Oak Technology Park, where we offer robust electric, fiber, water and sewer infrastructure,” said Gary McLaren, Henrico County Economic Development Authority Executive Director. “In a nutshell, Henrico County's value proposition just became much more valuable to the data center sector.”

About the Henrico EDA

Located in the heart of the Eastern Seaboard, Henrico is an AAA-bonded county located adjacent to Virginia’s capital city of Richmond. The EDA is your single point of contact for business development and site selection services. Find properties and run reports with our GIS tool at HenricoProperties.com. Learn more about White Oak Technology Park, a master-planned high-tech manufacturing park, at whiteoaktechpark.com. Visit Henrico.com for the latest news and to sign up to receive our Property Now and Henrico Now newsletters.

 

Henrico County Board of Supervisors Approves Business License Tax Cut

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HENRICO COUNTY, April 25, 2017 – The Henrico County Board of Supervisors approved a new ordinance reducing the business license tax. The previous threshold of the first $100,000 of gross receipts being non-taxable income has now doubled to $200,000. This new deduction will go into effect January 1, 2018. This means an additional 1,560 businesses will NOT pay business license taxes to the County, bringing the total number of licensed businesses exempt from paying the tax to 12,600.  

This increased threshold is good news for all Henrico businesses, not just small ones. Any business making over $200,000 will be able to deduct $200,000 from their earnings before calculating the amount of their business license tax.  

Business owners like Barry Martin of the Idea Center in Henrico believe this is a big step for all businesses in Henrico County. The Idea Center is an award-winning ad agency that has been operating in Henrico since 1998. “This is a win-win situation for both large and small companies doing business in Henrico County and should be great for economic development” said Martin of the new reduction. 

Henrico County previously eliminated the Business, Professional, Occupational License (BPOL) fee to file for most business license categories beginning in 1996. The elimination of the BPOL fee, the new BPOL tax rate reduction, and the 2016 reduction of Machinery & Tools tax rates by 70% are evidence that Henrico County proactively supports its existing businesses and encourages new businesses to locate here. Henrico’s pro-business climate is advantageous for all types of business from Fortune 1000 headquarters to sole proprietorships. Henrico’s low and stable tax structure allows it to attract more businesses so the county can continue to provide the high-quality services that its citizens have come to expect.     

About the Henrico EDA

Assisting with workforce, relocation and expansion, and business consultation needs, the Henrico Economic Development Authority works to ensure that businesses Come for Success and Stay for Life. The EDA’s mission is to increase county revenues through the attraction of high quality jobs and new capital investment with domestic and international companies, as well as the retention and growth of existing businesses, resulting in continued improvement of the county’s well-being and the quality of life for Henrico citizens.

Find properties and run reports with the EDA GIS tool, HenricoProperties.com. Learn more about White Oak Technology Park, a master-planned high-tech manufacturing center, at whiteoaktechpark.com. Visit Henrico.com for the latest news and to sign up to receive EDA Property Now and Henrico Now newsletters. 

International Firm Polykon Breaks Ground On $60 Million Facility In Henrico

HENRICO, VIRGINIA – Polykon Manufacturing, LLC – a joint venture between international firms Seppic, Inc., and Schülke, Inc. – broke ground Wednesday on a new $60 million manufacturing facility in Henrico County. The 55,000-square-foot facility is expected to bring approximately 50 new jobs to the area. Construction is slated to be complete in mid 2018.

Seppic and Schülke are entities of Air Liquide Healthcare.

Polykon will manufacture ingredients for the cosmetics and pharmaceuticals industries at the new facility in Henrico‘s White Oak Technology Park.

Approximately 45 individuals attended the groundbreaking event, including Henrico County Manager John Vithoulkas and Virginia Secretary of Commerce and Trade Todd Haymore, both of whom made formal remarks during the ceremony.

“About 80 percent of our customers are located in the Northeast, so it helps us to have a manufacturing plant in Virginia,” said Bertrand Masselot, Managing Director of Schülke, noting that the quality of roads and the proximity of the site to the airport, state highways and the company’s business entities make the site irresistible.

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John Vithoulkas

Todd Haymore

Todd Haymore

During his opening remarks, Henrico County Manager John Vithoulkas said, “This effort would not be possible without the good work of our Economic Authority and the Virginia Commonwealth Development Partnership. These advanced manufacturing projects are important … because they create opportunities for construction, for engineers, for vendors, for suppliers and other supporting services in Virginia. The economic investment and jobs created will continue to advance the White Oak Technology Park as a Class A business environment for the Commonwealth and the County.”

Additional resource: International Firm Invests 60 Million in New Henrico Operation

 

 

About Polykon

Polykon is a joint venture between Seppic, Inc., and Schülke, Inc. – entities of Air Liquide Healthcare. Seppic designs and supplies a wide range of specialty ingredients for the health care and beauty industries. Present in more than 100 countries, the company employs over 600 people worldwide. Schülke, Inc., designs and supplies antiseptics and disinfectants for medical environments and preservatives for the personal care industry. The firm employs over 900 people worldwide.

 

About Air Liquide

A world leader in gases, technologies and services for industry and health, Air Liquide is present in 80 countries, with more than 50,000 employees, and serves more than two million customers and patients. Oxygen, nitrogen and hydrogen have been at the core of the company’s activities since its creation in 1902. Air Liquides ambition is to be the leader in its industry, delivering long-term performance and acting responsibly.

 

About the Henrico County Economic Development Authority

The Henrico County Economic Development Authority (EDA) was created in 1968 and is the business ambassador to Henrico County. Working closely with the Henrico Board of Supervisors and administration, the EDA focuses its efforts on attracting capital investment and well-paying jobs to the county so that the tax revenues generated will provide area citizens with superior government services and infrastructure. Through its constant efforts, the organization seeks to improve Henrico's well-being and the community's quality of life.

EDA Strengthens Staff, Board of Directors

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The Henrico Economic Development Authority (EDA) is thrilled to announce a major addition and enhancements to its staff and Board of Directors. Anthony (Toney) Hall has been promoted to Deputy Director, and Twyla Powell has been hired as the EDA’s first Business Attraction Manager.

New to the Board of Directors is Travis J. Pearson, Director of Markel Cambridge Alliance (Rated #505 by Fortune in 2012). In addition, S. Floyd Mays Jr. will serve as chair, Patrick R. Liverpool will act as vice chair, David Maiden will serve as treasurer, and Susan Warriner Custer will take over as secretary on the Board of Directors. A complete listing of the board can be found on the EDA's website. The changes bring increased depth to the EDA team.

“As a team member of Markel Corporation, which is based in Henrico, I’ve been a part of the business community since 2009,” said Pearson. “I’m honored to play a role in shaping my county’s development.”

“I’m excited to get this year started on a great note,” said Gary McLaren, Executive Director, Henrico EDA. “We’ve established a robust, high-energy team that’s committed to our core mission of bringing a surplus of good jobs and capital investment to Henrico County.”

As Deputy Director, Toney Hall will continue to oversee the organization’s marketing functions as well as all activities managed through the Business Attraction Manager’s and Business Services Manager’s teams. Before joining the EDA, Hall served as founder, board member and chair of the executive committee for the Virginia Biotechnology Association, vice president of Business Resources for the Greater Richmond Partnership, and board member and treasurer for the VCU Council for International Visitors. Hall is currently a board member of the Greater Richmond Association for Commercial Real Estate.

As Business Attraction Manager, Twyla Powell will work in coordination with Business Services Manager Lindsay Hurt to attract new domestic and international business to Henrico. In her former role as Business Development Manager for the Virginia Economic Development Partnership, Powell was responsible for driving capital investment and new jobs to the Commonwealth.

“We have an even deeper bench filled with a talented group of professionals who offer a wide range of experiences,” added McLaren. “And that adds up to good things for Henrico.”

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International Firm Invests $60 Million in New Henrico Operation

The Henrico County Economic Development Authority (EDA) is pleased to announce that Polykon Manufacturing, LLC – a joint venture between international firms Seppic, Inc., and Schülke, Inc. – will invest more than $60 million to establish a new manufacturing operation in Henrico County. The project is expected to create approximately 50 new jobs.

Polykon will manufacture ingredients for the cosmetic and pharmaceutical industries at Henrico‘s White Oak Technology Park. Seppic and schülke are entities of Air Liquide Healthcare.

“Our U.S. expansion project is an exciting opportunity for future growth,” said Lionel Genix, President and CEO of Seppic, Inc. “We explored U.S. locations and selected Virginia and Henrico County among several that were considered. The support of the Governor, the Secretary of Commerce and Trade, and the Henrico Economic Development Authority has been instrumental in our decision to embark on this new business opportunity in Virginia. Not only is this location in close proximity to most of our U.S. customers – it provides us with a foundation for future strategic growth and expansion.”

“Henrico’s recent measures to better attract investment positively influenced Polykon Manufacturing’s decision to select Henrico,” said Tyrone E. Nelson, Chairman of the Henrico County Board of Supervisors. “With its new facility in White Oak Technology Park, Polykon will be poised for future growth, joining high-performing companies like QTS and Anord Critical Power.”

“Henrico’s positive labor environment, Mid-Atlantic location, competitive operating costs, and strong local government are qualities that are especially appealing to international firms, and those qualities put us in a great position early in this project,” said Gary McLaren, Henrico County Economic Development Authority Executive Director. “White Oak Technology Park’s robust infrastructure and the work we did to maximize the site’s potential for Polykon made a big difference, too.”

The EDA's support in helping Seppic and schülke secure the White Oak location was a significant contributor to the overall success of the project. “The White Oak site recommendation from the Henrico EDA was exactly what we were looking for,” explained Genix. “Additionally, having the EDA’s assistance and support during the regulatory process and being provided with key community introductions helped the due diligence work of the project go smoothly. We are pleased with the outcome and look forward to our continued work in the region.”

The project was generated through the Cushman Wakefield Business Incentives Practice and secured for Virginia through the cooperation of the Greater Richmond Partnership, the Henrico EDA, the Virginia Economic Development Partnership and the Governor's office.

About Polykon
Polykon is a joint venture between Seppic, Inc. and Schülke, Inc. – entities of Air Liquide Healthcare. Seppic designs and supplies a wide range of specialty ingredients for the health care and beauty industries. Present in more than 100 countries, it employs over 600 people worldwide. Schülke, Inc., designs and supplies antiseptics and disinfectants for medical environments and preservatives for the personal care industry. The firm employs over 900 people worldwide.

About Air Liquide
A world leader in gases, technologies and services for industry and health, Air Liquide is present in 80 countries with more than 50,000 employees and serves more than two million customers and patients. Oxygen, nitrogen and hydrogen have been at the core of the company’s activities since its creation in 1902. Air Liquide’s ambition is to be the leader in its industry, delivering long-term performance and acting responsibly.