DIG program targets development, investors for Morganton & Burke County

June 08, 2010

The Morganton City Council recently approved the Development Incentive Grant (DIG) program designed to encourage and reward developers who invest in certain areas in the City of Morganton. Development and Design Director Lee Anderson presented the program to the Council Monday, June 7 during the Council’s regular meeting.

“We want to encourage investment in areas identified in the Mission 2030 Plan,” Anderson said. “We would welcome new development as well as redevelopment and expansion that have a positive impact on Morganton and Burke County.”

The key to the DIG program is the partnership between Burke County and other towns and cities such as Morganton.  The combination will create a strong incentive package to attract new development in key areas of towns and communities and even in areas which the County may determine to be of high importance.

“We’ve encouraged other elected boards to participate in similar programs for their towns, and we expect some will approve plans of their own,” Anderson said.

Now that the City Council has approved the program, Anderson will take the program to the County Commissioners for approval.

“Once Burke County approves the program, grant funding will be available and interested developers can submit applications for funding through the City of Morganton Development & Design Department,” Anderson said.

For the City of Morganton, DIG funds will only be available to developers who invest in designated DIG Zones in the City. The first four designated zones are the Downtown DIG Zone, the Hospitality DIG Zone, the Jamestown Road DIG Zone and the River District DIG Zone.

“Unlike typical economic development incentive programs, the DIG program will be available for large and small projects, including commercial, office and residential projects,” Anderson said.

DIG grant funds are derived from the increase in property values from new development. Projects between $250,000 and $1 million may be eligible for five annual post completion DIG grants up to 65 cents per 100 dollars of land and building value increase.

For example, if a property has an existing value of $100,000 and the post construction value is $900,000, then the increased value is $800,000. The developer would be eligible for a $5,200 grant a year, for five years, if the project met DIG requirements.

Larger projects are eligible for larger grants. Projects between $1 million and $5 million will be eligible for five annual post completion DIG grants up to 75 cents per 100 dollars of increase land and building value. And projects over $5 million will be eligible for five annual post completion DIG grants up to 85 cents per 100 dollars of increase land and building value.

“To be eligible for DIG funding, a project must offer justifiable reasons for the financial support. This program is not intended to fund projects that would happen regardless of the program,” Anderson said.

The purpose of the grant funding is to encourage projects that meet economic and community development goals outlined in the Mission 2030 Plan such as:

• Expand the Morganton economy to create more jobs, with an emphasis on providing job opportunities for the unemployed and underemployed.
• Increase the property tax base of the city and county and maintain a future diversity of opportunities for its citizens, and prevent further erosion of existing developed areas.
• Develop underutilized or abandoned properties through adaptive reuse so that those properties may once again contribute positively to the community and eliminate the blighting influences they now have throughout the city
• Support neighborhood retail services, enhance commercial corridors and boost employment hubs as identified in Mission 2030.
• Support redevelopment efforts that enhance and preserve unique urban features and amenities, including areas such as downtown, the river district, historic neighborhoods, destination retail areas and major entry corridors.

To learn more about DIG, visit the DIG program page.