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

Summary

A letter dated May 12, 2020 from Stephen Moret, President and Chief Executive Officer, to the chairs of the Senate Finance Committee, House Appropriations Committee and House Finance Committee. It documents transactions of the Commonwealth's Opportunity Fund (COF) during the third quarter of the 2020 fiscal year, as required by Chapter 836. The letter states that $334,606,844 had been appropriated to the Fund as of March 31, 2020, and that $3,946,350 was committed to assist eight projects, with total committed job creation of 1,889 and committed investment of $256.8 million. It summarizes projects including Patton Logistics in Pulaski County and Navien in James City County, and says there were no actual disbursements from the Fund that quarter.

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Full text

VEDPl~
        May 12, 2020



        The Honorable Janet D. Howell                           The Honorable Luke E. Torian
        Chair                                                   Chair
        Senate Finance Committee                                House Appropriations Committee
        P.O. Box 2608                                           4222 Fortuna Plaza, Suite 659
        Reston, Virginia 20195                                  Dumfries, Virginia 22025

        The Honorable Vivian E. Watts
        Chair
        House Finance Committee
        8717 Mary Lee Lane
        Annandale, Virginia 22003

        Dear Chair:

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

        As of March 31, 2020, a total of $334,606,844 had been appropriated to the Fund. As of March
        31, 2020, the Cardinal Financial System cash balance was $31,323,085, and the balance
        available for future commitments totaled $27,715,634. However, when the COF preapprovals of
        $15,294,000 made by the Secretary of Commerce and Trade are taken into account, the
        available balance is reduced to $12,421,634. Observing the rule that 40% of preapprovals, or
        $6,117,600, will not move forward, the available balance becomes $18,539,234. Active grants
        awarded since the inception of the Fund total 647.

        For the third quarter of the 2020 fiscal year, ended March 31 , 2020, a total of $3,946,350 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 1,889, while committed investment
        totaled $256.8 million. Summaries on these projects follow:

              1. Pulaski County: Patton Logistics will locate a distribution center for third party logistics
                 services in Pulaski County. This project will create 33 new jobs and an investment of
                 $12.0 million (amount of grant: $150,000; use of grant building construction). This
                 project has been announced.

              2. City of Suffolk: Acesur Group, a producer and distributor of vegetable oil, will locate a
                 new facility in the City of Suffolk. This project will create 29 new jobs and an investment
                 of $11.0 million (amount of grant: $120,000; use of grant: building improvements). This
                 project has been announced.




901 E. Cary Street, Suite 900
Richmond, Virgin;a 23219
VEDP.org
Committee Chair
May 12, 2020
Page 2


     3. Henrico County: Moore DM Group, a manufacturer of envelopes for direct mail
        distribution, will locate a new facility in Henrico County. This location will create 239 new
        jobs and an investment of $24.9 million (amount of grant: $100,000; use of grant:
        building improvements). This project has been announced.

     4 . City of Chesapeake: Total Fiber Recovery recycles and converts paper into dry pulp for
         corrugated packaging. Locating in the City of Chesapeake, the company will create 68
         new jobs and invest $48.9 million (amount of grant: $200,000; use of grant: building
         improvements and utility upgrades). This project has been announced.

     5. James City County: Navien, a manufacturer of tankless water heaters, will locate a new
        facility in James City County. This project will create 180 new jobs and an investment of
        $77.5 million (amount of grant: $850,000; use of grant: building improvements). This
        project has been announced.

     6. Henrico County: Simplisafe, a home security company, will locate a customer support
        center in Henrico County. This location will create 572 new jobs and an investment of
        $5.5 million (amount of grant: $200,000; use of grant: site development and building
        construction). Th is project has been announced.

     7. Not Yet Announced.

     8. Not Yet 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 third quarter of the 2020 fi scal year, there were no actual disbursements from the Fund.

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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