Venturing for capital: Proposed annexation would lead to more businesses in the town
By Lynn Wolstenholme
As zoning administrator for Hamilton, David Beniamino is looking to get the town a larger business base by working with town staff and Loudoun County government to annex more commercial areas into the town limits. While the new businesses would bring in more tax revenue for the town, some current business owners say the problem of growing a commercial base isn't site availability but restrictive town zoning regulations.
Currently, 13 businesses operate within the town limits.
“We are trying to annex to open more commercial avenue to gain revenue,” Benamino said.
By bringing in additional businesses with the annexation, the town will gain 25 cents for every $100 of those properties' value -- a benefit for the town and its citizens. Some businesses that are in the proposed annexation area also will have to comply with the town's 3 percent meal tax.
The areas proposed for annexation are on the eastern and western ends of town. There are some businesses already operating in these areas, but Benamino sees the annexation as giving the town some control of development on its borders.
Two of Leslie Lowry's businesses, Lowry's Crab Shack and Lowry's Flower Market, would be brought into the town limits through the annexation. She sees both positives and negatives.
If the annexation is approved, the Crab Shack will be required to pay the town's 3 percent meal tax, which will in turn be passed onto the customers.
The upside, for Lowry, is that she would get some infrastructure for her business.
“I'm hoping that coming into town will get some sidewalks [in front of the store] and that the town will pay for it,” Lowry said.
She added that she does not see the possible annexation causing any other issues to the Crab Shack or Flower Market.
Lowry has already been through numerous zoning issues with the county in regard to the Crab Shack. Because county zoning did not allow her to sell produce at the restaurant, she had to create a new business to sell her goods. Lowry and business partner Kenneth Wine opened another business, Hamilton's General Store, within the town limits this month to sell the produce she was not able to sell at the Crab Shack.
Lowry said even though it costs more to run three properties instead of combining them, “it is worthwhile as long as there is customer support.”
Lowry is not the only one to find the issue of zoning regulations to be problematic.
Some current town businesses owners say the town's zoning ordinance is what keeps businesses from opening up shop in the small town.
“The zoning is restrictive. There are no exceptions,” said Georjan Overman, who recently opened Hamilton's Sweet Delights with co-owner Patti Lovelady. “[The zoning] might make it difficult for other businesses to open.”
Overman explained that some people have looked at opening businesses in the town limits, but they find so many restrictions on properties that it is not worth their while.
Overman and Lovelady found a catch in the zoning regulations at their bakery on West Colonial Highway.
“The general population want tables at Sweet Delights, so they can sit and have some coffee and eat, but we can't serve [and have sit-down tables] because we are not a restaurant,” Lovelady said.
The two have said that since their opening in March, they have had to tell customers that they are not allowed to sit and eat in the shop.
Another business owner, Susan Phillips, who has owned Natural Mercantile for three years, said she ran into zoning regulation issues a couple of years ago when she had a light on her outdoor signage for the health-food store.
“I received notice that my signage was not in compliance because of the lighting,” Phillips said. “It got worked out after a while.”
Phillips said that in the three years she has owned Natural Mercantile, she has seen the town staff and government improving on their relationship with business owners in regards to zoning regulations and getting issues resolved in a short amount of time.
Recently she applied for a building permit to renovate a section of her store, and the town quickly granted the permit.
“I was happy,” she said.
Beniamino knows there is discussion among business owners about the town's zoning regulations, but he said the town's zoning ordinance is not unique.
He added that the issue stems from the fact that the ordinances were not enforced for a long time.
“They are in place for a good reason,” Beniamino said.
Overman agreed with Beniamino's statements to an extent.
“They are tailored to ensure that change is of use,” Overman said. “It was probably good when it was written, but things have changed.”
Beniamino hopes that through the annexation process, those wanting to open businesses will have more of a choice in business types. He said one of the big issues he has run into with people wanting to open up a business in town is that they do not want to have to renovate the buildings that are available.
Currently, the town is working on a physical impact analysis, which will show the town's capacity for providing water and sewer services to the proposed annexation areas. Once that is complete, town staff will present it to the county for more talks.