045-00
BOARD OF SUPERVISORS
RESOLUTION
PHARMACY TECHNOLOGY ZONE
BE IT RESOLVED, the community has a rich resource in the Bernard F. Dunn School of
Pharmacy of Shenandoah University; and
BE IT RESOLVED, that the County of Frederick has interest in pursuing the economic
development potential of research and development operations in the pharmacy/medical product field as
a means of supporting the existing industry base and attracting new research firms to the community.
BE IT RESOLVED, that legislation exists for the creation of Technology Zones in the
Commonwealth of Virginia; and
BE IT FURTHER RESOLVED, that the Board of Supervisors for the County of Frederick,
Virginia, does authorize the county administrator to pursue the viability of establishing a Pharmacy
Technology Zone in the County of Frederick.
ADOPTED, this l2tl' day of July 2000.
Upon motion made by Robert M. Sager and seconded by W. Harrington Smith, Jr., the above
resolution was approved by the following recorded vote:
Richard C. Shickle Aye Robert M. Sager Aye
Charles W. Orndoff, Sr. Aye Margaret B. Douglas Aye
W. Harrington Smith, Jr. Aye Sidney A. Reyes Aye
A COpy TESTE:
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QR. Riley Jr. ' ~
Clerk, Board of Supervisors
RESOLUTION NO. .045-00
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cc: Planning and Development
~~
~~ WINCHESTER I FREDERICK COUNTY
~ ~ Economic Development Commission
July 5. 2000
TO:
John R. Riley, Jr.
FROM:
June M. Wilmot
RE:
Pharmacy Tech Zone Concept
The materials attached are intended to ascertain the Board's direction in further
work toward the potential of establishing a Pharmacy Technology Zone in
Frederick County.
Direction needed is their concurrence in developing a final proposal which will
come before the Board at a future date for their approval or denial.
Attachments:
1) Current Pharmacy Tech Zone concept
2) Example of impact on local taxes
3) Resolution by Board to pursue further development of the concept
It is important that the EDC work program reflect the Board's direction, and this
is our request.
45 E. Boscawen Street. Winchester, VA 22601
phone: 540-665-0973 . fax 540-722-0604. a-mail info@wininva.com
web: http://www.wininva.com
nRAFT
FREDERICK COUNTY PHARMACY TECHNOLOGY ZONE CONCEPT
December 4, 1999
(Revised 6-5-00)
(NOTE: THE DETAILS IN THE FOLLOWING MAY BE MODIFIED IN FURTHER
DEVELOPMENT OF THE ESTABLISHMENT OF A PHARMACY TECHNOLOGY
ZONE, AND THE FINAL PROPOSAL WILL BE BROUGHT BEFORE THE BOARD OF
SUPERVISORS FOR ACCEPTANCE OR DENIAL.)
BACKGROUND: The Winchester Medical Center and its education partner,
Shenandoah University, have collaborated in several niches of the health science
industry--physical therapy, nursing, hospital administration, etc. The newest addition is
the Bernard J. Dunn School of Pharmacy located on the campus of the Medical Center.
It is perceived that the pharmacy/biomedical industry offers a good deal of promise for
future growth, and the Winchester Medical Center-Shenandoah University partnership
is well positioned to become a nucleus of pharmacy/biomedical business development
in the community.
CONCEPT: That companies which establish a business operation in specific
geographic areas of Frederick County that meet the criteria of a qualifying
pharmacy/biomedical company would become part of a Pharmacy Technology Zone
consortium with specific benefits. Among the benefits would be joint sharing of
facilities and personnel/students as described between contractual arrangements
between two or more parties. A second benefit would inure in the arena of local
taxation.
-QUALIFYING COMPANY:
Type: A company which is involved in research and development of and/or
production of any product or device that is related to pharmacology as defined by
Standard Industrial Code 283, other medical equipment as identified by a variety of SIC
codes, as well as 8731, research and development. More than 50% of the company's
gross receipts must be derived from the qualifying operations.
Qualifying as a Pharmacy Technology Zone company in no way prevents the
company from qualifying for other business development programs at either the State
or local level.
LOCATION:
The physical property of any currently existing company in Frederick County
meeting the criteria above as well as the undeveloped portion of Phase I (110 ac.) of
Pharmacy Tech Zone Concept, Page 2
the Round Hill Community Use Plan as identified Comprehensive Policy Plan of
Frederick County, Virginia.
LOCAL TAXES ELIGIBLE FOR REBATE:
A percentage of the utility tax on local telephone, natural gas and electric usage
on the scale below.
LOCAL TAXES ELIGIBLE FOR EXEMPTION:
A percentage of the business license tax on the scale below.
AMOUNT OF REBATE OR EXEMPTION:
Year 1 100%
Year 2 80%
Year 3 60%
Year 4 40%
Year 5 20%
DETERMINATION OF ELIGIBILITY: Representing the Board of Supervisors, the
Frederick County Administrator or his designee.
PHARMACY TECHNOLOGY ZONE LOCAL TAX IMPACT EXAMPLE
A. Company annual property tax payments, non qualifying for Pharmacy
Tech Zone benefits, manufacturing operation (approx. 150,000 sq.ft.):
Real estate:
Machinery and tools:
$43,406
$50.408
$93,814
B. Company adds qualifying research and development operation,
constructs additional 15,000 sq.ft. in laboratory space. Research and
development operations benefit from Pharmacy Tech Zone classification.
Additional annual property taxes:
Real estate:
Persona/ properly:
$4,340
$10.080
$14,420
C. Total property taxes paid annually:
$108,234
D. Temporary tax loss to county is in the business license tax category,
which manufacturers do not pay. Assume qualifying Pharmacy Tech
Zone research and development operations generate $1,000,000 per
year in income. The tax benefit for the qualifying company is over a five
year period. It is the same amount that the county will not be collecting
over the same period:
Year 1
Year 2
Year 3
Year 4
Year 5
$3,600
$2,880
$2,160
$1,440
$ 720
$10,800
Total tax saving/loss
County then collects 100% of business license tax due after
year five (in this example, $3,600/year)