ORANGE, VA · Orange, VA • Investment Prospectus 2 EXECUTIVE SUMMARY Orange, Virginia… • Is an inclusive town of 4,887 located in rural Virginia • Is within a 45-minute drive

OPPORTUNITY ZONEPROSPECTUS

ORANGE, VA

thinkorangeva.com

(540) [email protected]

December 2019

Orange, VA • Investment Prospectus 2

EXECUTIVE SUMMARY

Orange, Virginia…

• Is an inclusive town of 4,887 located in rural Virginia

• Is within a 45-minute drive for 323,427 people

• Has 23 languages represented in its public school system

• Is in close proximity to major educational institutions: 24 miles of Germanna Community College

31 miles of the University of Virginia

36 miles of the University of Mary Washington

• Has strong partnership with education and workforce development organizations

• Has one OPPORTUNITY ZONE that was intentionally selected to maximize the community impact and return on investment

• Enjoys a diverse economy consisting of business services, local government activities, manufacturing, healthcare, and retail

• Is standing ready to help facilitate your investment!

WHERE IS ORANGE, VA?

Culpeper – 19 miles / 23 minutes

Charlottesville – 28 miles / 44 minutes

Fredericksburg – 37 miles / 53 minutes

Richmond – 76 miles / 81 minutes

Washington, D.C. – 87 miles / 106 minutes

Norfolk – 162 miles / 202 minutes

Charlotte, NC – 299 miles / 311 minutes

Atlanta, GA – 538 miles / 496 minutes

St. Louis, MO – 780 miles / 698 minutes

Orange, CA – 2,570 / 2,220 minutes



WHAT ARE OPPORTUNITY ZONES?Opportunity Zones are low income census tracts nominated by governors and certified by the U.S. Department of the Treasury into which investors can now put capital to work financing new projects and enterprises in exchange for certain federal capital gains tax advantages. The country now has over 8,700 Opportunity Zones in every state and territory.

WHAT ARE OPPORTUNITY FUNDS?Opportunity Funds are new private sector investment vehicles that invest at least 90 percent of their capital in qualifying assets in Opportunity Zones. U.S. investors currently hold trillions of dollars in unrealized capital gains in stocks and mutual funds alone— a significant untapped resource for economic development. Funds will enable a broad array of investors to pool their resources in Opportunity Zones, increasing the scale of investments going to underserved areas.


OPPORTUNITY ZONE TAX INCENTIVE

The Opportunity Zones program offers three tax incentives for investing in low-income communities through a qualified Opportunity Fund.

Source: Economic Innovation Group


OPPORTUNITY ZONE IN

ORANGE, VIRGINIA

Census Tract ID: 51137110200



DEMOGRAPHIC SNAPSHOT

Census Tract ID 51137110200

Source: ESRI


COMMERCIAL DISTRICT DEVELOPMENT OPPORTUNITIES





COMMERCIAL DISTRICT BUSINESS OPPORTUNITIES





ADDITIONAL ECONOMIC DEVELOPMENT

INCENTIVES


ADDITIONAL INCENTIVES

Real Estate Improvement Tax Grant A grant paid in arrears on assessed value of improvements. The grant may be awarded annually for up to three years based on the real estate tax paid for the improvements arising from the business investment made. Qualifying rehabilitated structures must have a new assessed value increase of no less than 20%. Qualifying real estate must be industrial, commercial, or mixed-use.

Manufacturers Machinery & Tool's Tax Grant High value qualifying manufacturers may receive a tax grant paid in arrears for up to three years based on the machinery and tools tax paid for qualifying new or used specialized machinery or equipment in value of no less than $50,000.

Service Industry Business Personal Property Tax Grant High value qualifying professional service companies may receive a tax grant paid in arrears for up to three years based on business personal property tax paid for qualifying new or used business personal property in value of no less than $50,000.

Retail and Accommodation Sales Tax Grant A grant paid in arrears for up to three years based on the local option sales tax derived from annual sales of a qualifying business.


ADDITIONAL INCENTIVES (continued)

Discounted Pricing on County Owned Real PropertyQualifying commercial and industrial projects may qualify for discounted County owned land and buildings.

Encourage Diversified RetailDesigned to attract eclectic restaurants, retailers, and other visitor/recreation services. Qualifying companies can receive incentives valued at no more than $2,000. Reimbursement options will be determined on a case-by-case basis depending on the needs of the business.

Fast-Track Plan Review & Permit Fee WaiversBuilding and Planning officials will expedite the internal review process of plans for turnaround in approximately seven (7) business days (dependent on completion of application and complexity of type and use). Qualifying projects must create five new jobs and have investment of $500,000 in new construction to waive and/or grant development fees. (New construction does not include costs associated with architectural design or engineering services).

Advance Start-upsDesigned to attract creative class talent, support local entrepreneurs, and encourage existing home-based businesses to locate into commercial space. Qualifying companies may access incentives valued at no more than $3,000. Reimbursement options will be determined on a case-by-case basis depending on the needs of the business.


ADDITIONAL INCENTIVES (continued)

Temporary Office SpaceDesigned to assist new companies locating to the community, Economic Development staff will attempt to provide free temporary office space for an administrative staff up to three (3) persons during construction up fit for a maximum of six (6) months for projects approved by the EDA.

Red Carpet Roll OutQualifying high value businesses locating in Orange County will receive one year of membership to the Orange County Chamber of Commerce along with a welcome package of complimentary or discounted services from various local organizations, businesses and community events. The welcome package provides one year of complimentary or discounted pricing to local workshops and festivals; including small business development center classes, safety seminars/assessments from local police/fire/ems, chamber programs and Orange Downtown Alliance, Gordonsville & Montpelier festivals, etc.

Real Estate Development Cost GrantQualifying projects may receive grants up to the lesser of 33% or $20,000 for real estate development costs. Qualifying costs are: construction material for building renovation or new construction; demolition of existing structures; storm water fees; water and sewer connection fees; and paving and sealing of parking lots.

Significant Investment IncentiveSignificantly larger economic development projects measured by capital investment, job creation, or some combination thereof, may be eligible for enhanced or expanded incentives.


ORANGE, VA ECONOMIC SNAPSHOT


TOP 40 EMPLOYERSOrange County, VA

1. Orange County Schools2. American Woodmark3. County of Orange4. MPS5. Green Applications6. Aerojet Rocketdyne7. Dogwood Village8. Germanna Community College9. Food Lion (multiple)10. Walmart11. Zamma12. Battlefield Farms13. Central Virginia Regional Jail14. Ridgid Products15. Lake of the Woods16. James Madison’s Montpelier17. Premium Lawn Care Services18. Homestead Building Systems19. American Color20. Village at Gordon House

915337337307292289262243226210206174146145125116101999180

Employees21. McDonalds22. Intertrans Carrier23. Barboursville Winery24. Americare Plus25. Town of Orange26. Lohmann Corporation27. Inn at Willow Grove28. Royal Foundations29. UVA Health Services30. Kemper Sports Management31. Barbeque Exchange32. Kelvic Construction33. Anchor Healthcare34. Country Cookin35. Sedwick Building Supply36. Grelen Nursery37. Coleman Lumber Company38. Williams Lawn Care39. Orange Madison Farm Co-op40. Clearwater Grill

8877646363605855545044424140393836363531

Employees


ORANGE, VA INDUSTRY CLUSTERS

MediaLQ: 1.15


BUSINESS TAXES

• State Corporate Income Tax: 6%

• State Sales Tax5.3% of Taxable Sales

• Real Estate Tax Orange County: $0.804 per $100 Assessed Value Town of Orange: $0.175 per $100 Assessed Value

• Machinery & Tools Orange County: $1.83 per $100 Assessed Value Town of Orange: $0.066 per $100 Assessed Value

• Business Equipment (Furniture and Fixtures)$2.20 per $100 Assessed Value


ORANGE, VA FIBER CONNECTIVITY


ORANGE COUNTY BROADBAND AUTHORITY(OCBA)

The Orange County Broadband Authority (OCBA) recognizes there is an increasing residential and commercial demand for affordable and reliable high-speed broadband as well as an inescapable need to use broadband to deliver efficient and effective local government services and promote economic development.

Orange County is predominately a rural community that has limited high-speed broadband availability. Currently private sector broadband companies are unable to provide affordable, high-speed broadband service due to large upfront capital expenses with a relatively small potential customer base to produce profitable revenue.

OCBA solution to our broadband problem is a multi-faceted. Leverage dark fiber connectivity assets to schools and public safety facilities by upsizing the fiber counts along with building multi-tenant towers to support first responders radio system. By significantly reducing capital expense barriers for private service providers, we will be able to recruit new Internet Service Providers (ISP) to our community to provide affordable, reliable high-speed broadband options for unserved and underserved Orange County’s citizens and businesses.


ORANGE COUNTY BROADBAND AUTHORITY(OCBA)

VisionA rural community where everyone has access to next generation broadband.

MissionBringing affordable Broadband Service to our community one connection at a time while enhancing overall quality of life and fostering economic development.

ObjectiveReducing capital costs and start-up operating expenses for private sector providers to provide next generation broadband access in unserved and underserved areas of our rural community with a choice.


BROADBAND IN THE O.Z.

The OCBA has installed 33 miles of fiber infrastructure to serve as the backbone for the network throughout Orange County, VA. This backbone runs through the Town of Orange.

Benefits (among many others)• Gigabit speed internet connectivity for businesses

• Real estate investors can take advantage of the gigabit speed selling point

• Publicly owned infrastructure allows for low-cost to consumer options

• Fiber-to-home project improves quality of life for investors and their families

Documents

ORANGE, VA · Orange, VA • Investment Prospectus 2 EXECUTIVE SUMMARY Orange, Virginia… • Is an inclusive town of 4,887 located in rural Virginia • Is within a 45-minute drive