Virginia: Transactions of the Commonwealth's Opportunity Fund, Second Quarter of the 2020 Fiscal Year

Summary

A February 21, 2020 letter from Stephen Moret, President and Chief Executive Officer of the Virginia Economic Development Partnership, to the chairs of the Senate Finance Committee, the House Appropriations Committee and the House Finance Committee. It documents the transactions of the Commonwealth's Opportunity Fund (COF) during the second quarter of the 2020 fiscal year, as required by Chapter 836, Item 125.G. The letter states that a total of $334,434,547 had been appropriated to the Fund as of December 31, 2019, and that $4,905,000 was committed to assist eight projects. Project summaries follow, including Cartograf in Chesterfield County, GlaxoSmithKline in the City of Richmond and Wegmans in Hanover County.

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“Virginia: Transactions of the Commonwealth's Opportunity Fund, Second Quarter of the 2020 Fiscal Year.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-rd126-f7c2bd5ca8/, SHA-256 ee3f7e2969dd25fadd1417a972fe45bf715c01df11ec9965b6a11de064ca67c4.

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~EDP I Eeonomic
Development
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February 21, 2020

The Honorable Janet D. Howell The Honorable Luke E. Torian
Chair Chair
Senate Finance Committee House Appropriations Committee
900 East Main Street 900 East Main Street
Pocahontas Building, Room E509 Pocahontas Building, Room W1304
Richmond, Virginia 23219 Richmond, Virginia 23219

The Honorable Vivian E. Watts
Chair
House Finance Committee
900 East Main Street
Pocahontas Building, Room E203
Richmond, Virginia 23219

Dear Chair:

I am writing to provide documentation of the transactions of the Commonwealth's Opportunity
Fund (COF) which have occurred during the second quarter of the 2020 fiscal year as required
by Chapter 836, Item 125.G.

As of December 31 , 2019, a total of $334,434,547 had been appropriated to the Fund. As of
December 31 , 2019, the Cardinal Financial System cash balance was $30, 182,413, and the
balance available for future commitments totaled $27.141 ,312. However, when the COF
preapprovals of $10,204,000 made by the Secretary of Commerce and Trade are taken into
account, the available balance is reduced to $16,937,312. Observing the rule that 40% of
preapprovals, or $4,081 ,600, will not move forward, the available balance becomes
$21,018.912. Active grants awarded since the inception of the Fund total 646.

For the second quarter of the 2020 fiscal year, ended December 31, 2019, a total of $4,905,000
was committed from the Opportunity Fund to assist eight projects relocating to or expanding in
the state. Total committed job creation of these projects was 1,306, while committed
investment totaled $395. 7 million. Summaries on these projects follow:

1. Chesterfield Countv: Cartograf will locate a folding and micro corrugated package
printing facility in Chesterfield County. This project will create 63 new jobs and an
investment of $65.3 million (amount of grant: $750,000; use of grant: building
construction). This project has been announced.

2. City of Richmond: GlaxoSmithKline (GSK) will expand its consumer healthcare
research and development facility in the City of Richmond. This project will create 183
new jobs and an investment of $16.7 minion (amount of grant: $675,000; use of grant:
site and building improvements). This project has been announced.

901 E. Cary Street, Suite 900
Richmond, Virginia 23219
VEDP.org
Comm ittee Chair
February 21 , 2020
Page Two

3. Hanover County: Wegmans will locate a distribution facility in Hanover County. This
location will create 700 new jobs and an investment of $175 million (amount of grant:
$2,350,000; use of grant: building construction). This project has been announced.

4. City of Franklin: GMAX, a manufacturer, assembler, and distributor of surgical kits, will
locate a new facility in the City of Franklin. The company will create 40 new jobs and
invest $10.5 million (amount of grant: $70,000; use of grant: parking lot improvements).
This project has been announced.

5 . Chesterfield County: Carvana will locate an automotive inspection, recondition, and
distribution facility in Chesterfield County. This project will create 120 new jobs and an
investment of $25 million (amount of grant: $360,000; use of grant: site development
and building construction) . This project has been announced.

6 . Pittsylvania County: Aerofarms will locate a vertical grow house operation for leafy
greens in Pittsylvania County. This location will create 92 new jobs and an investment of
$41 .8 million (amount of grant: $200,000; use of grant: building construction and utility
infrastructure). This project has been announced.

7. Not Yet Announced.

8. Franklin County: Traditional Medicinals, a manufacturer of herbal teas, will locate a
new facility in Franklin County. The company will create 56 new jobs and invest $29.7
million (amount of grant: $350,000; use of grant: building construction and workforce
training}. This project has been announced.

For the projects which have been announced, I am enclosing a profile and analysis and
recommendation by the Virginia Economic Development Partnership.

For the second quarter of the 2020 fiscal year, actual disbursements from the Fund were made
to the City of Danville for PRA, the City of Danville for Harlow, and Henry County for Teal-Jones.
Actual disbursements totaled $1 ,127,000.

Sincerely,

~~
Stephen Moret
President and Chief Executive Officer

SM:kme

Enclosures

cc The Honorable Brian Ball
Secretary of Commerce and Trade

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