STAFFORD — A Maryland firm won’t pay Stafford County’s Merchant’s Capital tax for 30 years should it move ahead with plans to build a warehouse near the county’s airport.
The Board of Supervisors on Tuesday voted unanimously to waive the tax that is levied on a company’s amount of stock on hand, in exchange for the construction of a 485,000 square-foot warehouse space designed for e-commerce.
The warehouse would be located on Centreport Parkway and would ideal for up to two tenants. Maryland-based Property Management Associates, LLC will build the warehouse on about 85 acres of land owned by Chesapeake Holdings CSG, LLC.
Stafford County Economic Development Director John Holden said this represents a “significant private investment’ in the county, one that would bring between 100 and 200 “quality” jobs.
Property Management Associates, LLC has until Dec. 31, 2019, to begin construction of the new warehouse, and must occupy it within five years of the date to receive the tax break. The economic incentive — the break on the Merchant’s Capital Tax — will be measured and deducted annually.
Holden said this the purchaser of the property asked for this one incentive. The project is estimated to inject $450,000 in annual real estate and business personal property taxes into the county, totaling $13.5 million over the life of the deal. That’s more than the anticipated tax break amount, said Holden.
We don’t yet know what tenants will occupy the space. E-commerce sales are trending upward and should reach $485 billion worldwide by 2021. E-commerce specializes in electronics and appliances, apparel and accessories, auto parts, and books, just to name a few.
Stafford County collected nearly $1 million in Merchants Capital Tax revenue in 2018, about $40,000 less than it had budgeted.
Holden said the Board of Supervisors had already considered lowering the tax to attract large investments like this.
The new warehouse is a “catalytic” investment, the first of its kind in Stafford County, added Holden.
The Board of Supervisors voted to suspend its bylaws and vote to approve the measure without holding a public hearing due to nature of the “time sensitive” nature of the business, according to Board Chairman Meg Bohmke.
