Share on Facebook The Downtown Smithfield Development Corporation, with support from the Town of Smithfield and the County of Johnston, has adopted and set in place a revitalization grant program for the purpose of encouraging the renovation of older buildings, as well as promoting infill growth with new commercial development in areas of blight of historic downtown Smithfield.  Known as the "Smithfield Historic Area Revitalization Plan," or S.H.A.R.P., the program has already received commendations as "Best Economic Development Incentive Plan" from the NC Main Street Program.  Furthermore, it has been presented to state and regional development organizations such as the NC Downtown Development Association and Triangle J Council of Government, and has been reviewed and adopted by other small towns in North Carolina. 

"The Downtown Incentive Plan recently adopted by the Town and the County is a win-win for the property owner, developer, and the citizens of Smithfield," states Chris Johnson, Executive Director of the Downtown Smithfield Development Corporation. "I am confident that in future years "S.H.A.R.P." will be recognized as the catalyst that eliminated blight and added tax value, as well as stimulated economic development in other areas of Downtown Smithfield."

 To be eligible to participate, proposed development or rehab plans are presented to the Town of Smithfield City Manager, the office of the Downtown Smithfield Development Corporation, and the Smithfield Historic Commission prior to development or renovations for design approval.

If the development plan is approved and documentation from the developer is signed, then the appraised tax value of the site or building will be determined by Johnston County Tax Office before renovation/construction begins.  After the renovation/construction is completed, the new appraised tax value of the building will be determined by the Tax Office.  Annually, after the developer pays the full amount of the new appraised tax value on the property, Johnston County, the Town of Smithfield, and Downtown Smithfield Development Corporation "grants" the property owner the amount paid, minus the original tax value payment prior to renovation/construction.  The term of the grant is five years.

Example:

Empty lot or vacant building - $50,000 tax value

.78 = $390 Annual Johnston County Tax

.57 = $285 Annual Town of Smithfield Tax

.19 = $95 Annual Downtown Smithfield Development Corporation MSD Tax
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$770 Total Annual Tax Payment (Before Development)

 

Completed development - $750,000 tax value

.78 = $5,850 Annual Johnston County Tax

.57 = $4,275 Annual Town of Smithfield Tax

.19 = $1,425 Annual DSDC - MSD Tax
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$11,550 Total Annual Tax Payment (After Development)

Under above example, owner pays $11,550 annually in County, Town and MSD Taxes.  However, the owner is then "granted" back annually $10,780 ($11,550-$770) for 5 years. = $53,900 Total Grant

The incentive plan is in its infant stage; nevertheless regional developers have begun looking at rehab projects, as well as new construction within Downtown Smithfield.  The benefits of the grant program include: County and Town immediately receives fees from sales of Water/Sewer/Electrical/Garbage. The plan encourages the reduction of "White Elephant" buildings or blight.  The grant increases support of locally owned and small businesses.  The grant encourages "Smart Growth" and controls urban sprawl.  The infrastructure, such as sidewalks, and utilities are already in place.  The plan increases the property value of neighboring buildings already in use or redeveloped.

To learn more about the nonprofit Downtown Smithfield Development Corporation and business opportunities, individuals may call Chris Johnson at 919-934-0887, or visit www.downtownsmithfield.com for more information.