DATE: Saturday, June 7, 1997                TAG: 9706070269

SECTION: LOCAL                   PAGE: B3   EDITION: FINAL 

SOURCE: BY MEREDITH COHN, STAFF WRITER 

DATELINE: CHESAPEAKE                        LENGTH:   62 lines

TIME-WORN BUILDINGS IN SOUTH NORFOLK GET CITY AND STATE BOOST

Many of the turn-of-the-century homes and storefronts that shape the character of South Norfolk have seen better days. Small businesses operate in some, but others are abandoned and the ornate old architecture has deteriorated.

Hoping to spur a renaissance in the aging downtown, the city and the state have been helping a new set of pioneers settle in and flourish in those digs.

Thursday during a meeting of the city's business community, representatives of the state's enterprise zone program touted its tax abatement and grants for businesses that move in, improve their property or hire local workers. They presented changes to the program and encouraged local business people and entrepreneurs to apply for the money available.

While it has been promoted only in recent years, the zone was created in South Norfolk in 1985. Officials estimates 18 businesses there have qualified since then. The city tacks on extra benefits, including reduced permit and license fees, for local businesses that qualify for the state program.

Business owners have said they believe many federal, state and local incentives have gone unused because they did not know they existed or were confused by the rules.

``We're working with the city to help you revitalize the area,'' said Daniel Girouard, who became the state's first full-time enterprise zone administrator in 1993. In addition to naming local contacts, he tours the state and provides overviews of the program.

Girouard explained the four programs available in the enterprise zone, which require one application and generally last for 10 years. To qualify for the program, he said, applicants must occupy the buildings they plan to renovate and they must hire a certified public accountant.

Joanne Handyside, a certified public accountant with Failes & Associates, said her company has worked with about 20 clients across Hampton Roads to determine whether they qualify for state and local benefits. About 75 percent have, she said.

``It may be overwhelming to a business owner initially to learn how to set up policies and procedures so they can gather data to see if they are eligible,'' said Handyside, adding that they may not be able to apply immediately.

The enterprise zone covers much of the South Norfolk business district, and the city plans to petition the state to expand it. The state currently has 46 zones.

Girouard, the state's zone administrator, reports that at the end of 1996, 22 businesses in Portsmouth were qualified for the program, 39 in Norfolk and 28 in Newport News. Zones in each of these cities were designated in 1984 and two others were added in Newport News in 1995. Hampton, where a zone was designated in 1985, has 17 businesses qualified for the program. Eight businesses in Suffolk, which has had a zone since 1990, have qualified.

Some cities provide incentives to other businesses that are not enrolled in the state program. In Chesapeake, businesses must qualify for the state enterprise zone program before they are eligible for city benefits.

Other Chesapeake city departments have instituted programs to lure businesses to South Norfolk, including citing code violations to force owners to improve their property.

The Greater South Norfolk Business Consortium, along with area civic leagues and a revitalization commission, is seeking a meeting with the City Council to discuss other means to draw in businesses and improve the area. KEYWORDS: SOUTH NORFOLK ENTERPRISE ZONE RENOVATION

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