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2020 Annual Report - Virginia Coalfield Economic Development Authority

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The 2020 Annual Report of the Virginia Coalfield Economic Development Authority (VCEDA), with a chairman's letter from J.P. Richardson to Governor Ralph Northam. The letter states that thirty-nine new projects and expansions/retentions were announced in 2020, involving 1,259 full-time and 227 part-time new and retained jobs and more than $237 million in private investment. It also states that VCEDA approved 53 loans and grants totaling more than $10.5 million in new funding in 2020. The contents list project highlights, seed capital highlights, a renewable energy fund, marketing, loan and grant approvals, and an independent auditor's report with a statement of cash receipts and disbursements.

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2020
 ANNUAL REPORT




  VIRGINIA COALFIELD ECONOMIC DEVELOPMENT AUTHORITY
                                           Chairman’s
                                            H A I R M A N Letter
                                                          ’S LETTER
                                           The Honorable Ralph Northam
                                           Governor of Virginia
                                           Patrick Henry Building, 3rd Floor
                                           1111 East Broad Street
                                           Richmond, Virginia 23219



                                           Dear Governor Northam,
              J.P. Richardson
                    Chairman               We are pleased to submit to you and the General Assembly the 2020 Annual Report of the
                                           Virginia Coalfield Economic Development Authority (VCEDA).

                                           Thirty-nine new projects and expansions/retentions were announced in 2020, involving
                                           1,259 full-time and 227 part-time new and retained jobs and more than $237 million in
                                           private investment. More than 600 of those jobs VCEDA helped save in the region through
                                           COVID-19 relief funding. Announcements of new projects include Pure Salmon in Tazewell
                                           and Russell counties with more than 200 jobs and investment of $228 million projected,
                                           Clinch River Hemp Company in Russell County, expansions at West River Conveyors and
                                           Machinery Company in Buchanan County and others, plus funding from VCEDA’s Seed
TABLE OF CONTENTS
                                           Capital grant program for 27 new small business start-ups in the region.
       2    Chairman's Letter
       3    Executive Director’s Report
                                           VCEDA approved 53 loans and grants totaling more than $10.5 million in new funding in
                                           2020. During this challenging year, projects were announced and funding was approved in
      4-5   2020 Projects & Expansions
                                           all eight localities in the VCEDA region.
     6-10   2020 Project Highlights
                                           VCEDA remains committed to its mission of helping to enhance and diversify the economy
    11-18   2020 Seed Capital Highlights
                                           of the coalfield region of Virginia. We look forward to working with the Governor’s Office
      19    Renewable Energy Fund
                                           and the General Assembly to help our region continue to diversify and grow.
    20-21   Marketing
                                           Sincerely,
      22    2020 VCEDA Marketing Events
      23    Board of Directors
    24-25   Loan & Grant Approvals         J.P. Richardson
    26-27   Independent Auditor's Report   Chairman
 27 VCEDA Statement of Cash Receipts
		 & Disbursements




                                                                         VIRGINIA COALFIELD ECONOMIC DEVELOPMENT AUTHORITY


                                                  Mission of the Virginia Coalfield Economic Development Authority
                                                  The primary purpose of the Authority is to enhance the economic base for the seven county and
                                                  one city coalfield region of Virginia (Lee, Wise, Scott, Buchanan, Russell, Tazewell and Dickenson
                                                  Counties and the City of Norton). The Authority shall provide financial support for the purchase
                                                  of real estate, construction of buildings for sale or lease, installation of utilities, direct loans and
                                                  grants to private for-profit basic employers; may apply for matching funds from the state or federal
                                                  government, or the private sector; and any other support improvements it deems necessary.

                                                  Code of VA Title 15.2 Chapter 60, Section 15.2-6002

2
                     EXECUTIVE DIRECTOR’S REPORT
                                                        Despite the ongoing COVID-19 pandemic, which brought many challenges to the region,
                                                        state, nation, and world, 2020 was a productive year for the Virginia Coalfield Economic
                                                        Development Authority (VCEDA) and the seven-county, one-city region that VCEDA
                                                        promotes as Southwest Virginia’s e-Region.

                                                        There were 32 new project announcements and 7 expansion/retention announcements in
                                                        the region during the year, including announcements related to funding provided to retain
                                                        jobs and businesses in the region which had been negatively impacted by the COVID-19
                                                        pandemic. The 32 new projects are projected to create 505 full-time and 97 part-time jobs
         Jonathan Belcher
       Executive Director/                              and more than $235 million in private investment. The 7 expansion/retention projects are
          General Counsel                               projected to create and/or retain 754 full-time and 130 part-time jobs and an additional
                                                        $1.55 million in private investment, including more than 600 full-time and part-time jobs
                                                        retained through COVID-19 relief funding provided by VCEDA to help employers remain
                                                        open in the region. Altogether, 1,259 full-time and 227 part-time jobs are projected to be
                                                        created and retained, and over $237 million in private investment.

                                                        Examples of projects announced during the year include Pure Salmon in Tazewell and
                                                        Russell counties with 203 jobs and $228 million in private investment projected, Clinch
                                                        River Hemp Company in Russell County with 58 full-time and 4 part-time jobs projected,
                                                        and expansions by West River Conveyors and Machinery Company in Buchanan County,
                                                        TDEC and AT&T Wireless in Russell County, and Clinch River Forest Products in
                                                        Tazewell County. Funding was approved by VCEDA for several pending new projects that
                                                        are expected to be announced in 2021.

                                                        During the year, VCEDA approved 16 loans totaling $6.8 million and 37 grants totaling
                                                        $3.76 million, for a combined total of 53 loans and grants and more than $10.5 million
                                                        in new funding approved. Projects were approved for funding in every county and city
                                                        served by VCEDA. In terms of business development during 2020, VCEDA handled
                                                        165 inquiries, and participated in 28 visits with business prospects for the region and 15
                                                        marketing events (including in-person and virtual).

                                                        Included in funding approved were Seed Capital grants for 27 new small business start-
                                                        ups in the region that project the creation of nearly 170 full-time and part-time jobs
                                                        and more than $1.4 million in private investment. The VCEDA Board also allocated $1
                                                        million from Coalfield Employment Enhancement Tax Credit funds for an innovative
VCEDA staff includes, from left, Mitzi White, Office
Manager; Jean Jordan, Funds Administrator; Jonathan     Renewable Energy Fund designed to attract renewable energy jobs and investment to the
Belcher, Executive Director/General Counsel; Marketta   region. VCEDA additionally is now providing staff support for the new Virginia Coalfields
Horton, Economic Development Specialist; and Susan      Expressway Authority and helped that new authority become operational in 2020.
Copeland, Marketing Coordinator.
                                                                                          In conclusion, despite a very challenging year due to the
                                                                                          pandemic, VCEDA and the region were able to make
                                                                                          positive progress and are optimistic that 2021 will bring
                                                                                          more successes for the region.




                                                                                                                                                      3
                                2020 NEW PROJECTS
                        NEW PROJECTS                     LOCALITY             JOBS        PRIVATE INVESTMENT

    Blankenship’s Hunting Supply, Taxidermy & Deer
                                                        Buchanan           1 FT / 1 PT               $10,000
    Processing LLC

    Lil’ Doc Hollow Hemp, LLC                           Dickenson          4 FT / 5 PT               $14,620

    Yates Recovery and Transport, LLC                   Dickenson          1 FT / 2 PT               $47,400

    Trailhead Country Kitchen LLC                       Dickenson          2 FT / 6 PT               $10,000

    Caney Kennels                                       Dickenson          2 FT / 3 PT               $14,200

    Country-fied Café                                   Dickenson          3 FT / 2 PT               $15,000

    O’Quinn Rentals, LLC                                Dickenson          1 FT / 2 PT               $40,000

    Propel Counseling Group LLC                         Dickenson         10 FT / 2 PT               $11,490

    Nana’s Country Kitchen, LLC                             Lee            4 FT / 7 PT               $38,315

    The Marion Kitchen LLC                                  Lee            1 FT / 1 PT               $35,960

    Charly’s                                                Lee           10 FT / 15 PT              $28,000

    Clinch River Hemp Company, LLC                        Russell         58 FT / 4 PT            $4,500,000

    P & E Wholesale LLC                                   Russell          3 FT / 1 PT               $10,000

    Next Door Drug Pharmacy, PC                           Russell          5 FT / 5 PT              $385,000

    Adventure E-bikes, Inc.                               Russell          1 FT / 2 PT               $10,000

    Copper Creek Metal Works LLC                          Russell          1 FT / 1 PT               $13,700

    Nxtgen Mobile Welding Services, LLC                   Russell             3 FT                   $17,832

    The Play Hut, PLLC                                    Russell          2 FT / 3 PT               $90,000

    Whitt Insurance Agency, LLC                           Russell          2 FT / 1 PT               $14,809

    Pure Salmon                                      Russell / Tazewell      203 FT             $228,000,000

    Clinch River Life, LLC                                 Scott          1 FT / 10 PT               $11,100

    Moccasin Junction Inc.                                 Scott           3 FT / 2 PT              $185,000

    Nash Creamery                                          Scott           2 FT / 6 PT               $35,825
    FT = full-time; PT = part-time

4
                   NEW PROJECTS                            LOCALITY                      JOBS          PRIVATE INVESTMENT

eHealth Technologies                                          Scott                      160 FT                  $375,000

Professional Bookkeeping & Accounting Inc.                  Tazewell                   4 FT / 6 PT                $10,523

The Grind Bluefield LLC                                     Tazewell                   2 FT / 5 PT                $31,000

Appalachian Treasures LLC                                   Tazewell                   1 FT / 1 PT                $75,517

Sunnyside Lodging                                           Tazewell                      7 FT                 $1,182,483

Tazewell Dance Center LLC                                   Tazewell                   1 FT / 1 PT                $14,584

Valley Animal Clinic, PLLC                                  Tazewell                   5 FT / 2 PT               $275,000

Mercantile on Main, Inc.                                      Wise                     1 FT / 1 PT                $18,058

SWVTC/IN Appalachia                                         Regional                      1 FT                        N/A

TOTAL NEW PROJECTS (32)                                                              505 FT / 97 PT          $235,520,416




         2020 EXPANSIONS/RETENTIONS
             EXPANSIONS/RETENTIONS                          LOCALITY                     JOBS          PRIVATE INVESTMENT

West River Conveyors and Machinery Company                 Buchanan                      15 FT                 $1,470,000

Breaks Interstate Park COVID 19 Relief                Buchanan/Dickenson                44 FTE*                       N/A

AT&T Wireless                                                Russell                     200 FT                       N/A

TDEC                                                         Russell                  14 FT / 2 PT                $10,000

Clinch River Forest Products, Inc.                          Tazewell                    95 FT**                       N/A

Historic Crab Orchard Museum                                Tazewell                      1 FT                    $75,000

IDA/EDA Small Business COVID 19 Relief                      Regional                385 FT / 128 PT*                  N/A

TOTAL EXPANSIONS/RETENTIONS (7)                                                     754 FT / 130 PT*           $1,555,000



TOTAL NEW PROJECTS &
                                                                                1,259 FT / 227 PT*           $237,075,416
EXPANSIONS/RETENTIONS (39)

FT = full-time; PT = part-time; * = Retained Jobs; ** = includes 85 retained jobs

                                                                                                                            5
                                                   HIGHLIGHTS
    COVID-19 RELIEF LOANS | REGION | $740,000 LOANS
    VCEDA approved loan funding of up to $740,000 in April to help
    offset the negative economic impacts of the COVID-19 pandemic
    in the coalfield region and at Breaks Interstate Park. This was in
    partnership with all the county/city industrial and economic
    development authorities in the VCEDA region which applied for
    loan funds from VCEDA to re-loan to local businesses in their
    localities negatively impacted and/or forced to close because of the
    pandemic. Up to $590,000 was loaned to the eight IDAs/EDAs in
    the VCEDA region for distribution to local businesses impacted
    in their communities. Up to a $150,000 loan was to the Breaks
    Interstate Park, whose operations also were negatively impacted by
    COVID-19. In December, the board voted to convert remaining
    balances of the IDA/EDA loans to grants.




                                                                           VIRGINIA COALFIELDS EXPRESSWAY AUTHORITY
                                                                           Under the Code of Virginia, VCEDA is now providing staffing
                                                                           assistance to the Virginia Coalfields Expressway Authority (CFX).
                                                                           Upon the completion of the initial appointments to the CFX
                                                                           Authority’s board, VCEDA coordinated the first meeting of the
                                                                           new Authority, which was held in October in Grundy, Va. Officers
                                                                           were elected and Jay Rife was named its first chairman and Mike
                                                                           Yates the first vice-chairman. Jonathan Belcher, VCEDA executive
                                                                           director/general counsel, was designated as the CFX Authority’s
                                                                           executive director and also its secretary/treasurer. The primary
                                                                           purpose of the CFX Authority is to improve transportation into,
                                                                           from, within and through Southwest Virginia, assist in regional
                                                                           economic development and generally enhance highway safety in
                                                                           the affected localities.



    PURE SALMON | RUSSELL, TAZEWELL COUNTIES
    $10 MILLION LOAN
    In November, Pure Salmon (Project Jonah) was announced as
    one of the largest private capital investment projects in Southwest
    Virginia history. The project, described as the world’s largest
    vertically integrated indoor aquaculture facility, is to be located
    on the boundary of Tazewell and Russell counties. The company
    projects more than 200 employees and raising and processing of up
    to 20,000 tons of salmon annually. The facility is to be constructed
    by Pure Salmon, a global leader in aquaculture, who will invest
    approximately $228 million in facility and equipment. VCEDA has
    contingently approved up to $10 million for the project.




6
CLINCH RIVER HEMP COMPANY, LLC
RUSSELL COUNTY | $2 MILLION LOAN
VCEDA approved a low-interest loan of $2 million to the Russell
County Industrial Development Authority to be used in the
development of Clinch River Hemp Company, LLC’s processing
facility operations located at Hansonville, Va. Forty-one new full-
time jobs and five part-time jobs are anticipated within the first year
as the project gets underway and up to 62 total new jobs. Clinch
River Hemp Company, LLC is a new start-up company which
will provide services from hemp cultivation, through extraction,
processing and packaging of hemp products. The plant will focus
on refining hemp for the therapeutic benefits of CBD and other
plant-based chemical compounds that can be derived from hemp.




                                                                          eHEALTH TECHNOLOGIES | SCOTT COUNTY | 160 JOBS
                                                                          Governor Ralph Northam announced in December that eHealth
                                                                          Technologies, a provider of medical record and image retrieval and
                                                                          clinical intelligence services, will invest $375,000 to establish a new
                                                                          customer support center in Scott County and create 160 new jobs.
                                                                          Mountain Empire Community College, which has a successful
                                                                          track record of preparing the region’s workforce for careers in
                                                                          health information management, was part of the team working to
                                                                          partner with eHealth Technologies on developing a well-trained
                                                                          workforce that will ensure the highest level of customer service and
                                                                          patient care at the new center. Headquartered in Rochester, NY,
                                                                          with employees worldwide, eHealth Technologies serves more than
                                                                          half of the nation’s top 100 hospitals. The center will be located in
                                                                          the Scott County Regional Business & Technology Park, which was
                                                                          developed in part with funding from VCEDA.


WEST RIVER CONVEYORS AND MACHINERY COMPANY
BUCHANAN COUNTY | $1.225 MILLION LOAN
VCEDA closed an up to $1.225 million loan to West River
Conveyors and Machinery Company, an established Buchanan
County business that has operated in the county for 40 years, for
an expansion that is anticipated to add up to 15 new full-time jobs.
The VCEDA loan funds will be used toward an approximately
8,000-square-foot building expansion, construction of a covered
in-feed conveyor shed and concrete pad and the upgrade of
equipment, which company officials said will result in better
operating efficiencies and the ability to take on additional work at
West River’s Oakwood, Va. location. The replacement, or addition,
of several items of equipment is also planned. Some of the new
capabilities will allow West River to create visualization of systems
for customers.


                                                                                                                                                    7
                                                      HIGHLIGHTS
    CLINCH RIVER FOREST PRODUCTS, INC.
    TAZEWELL COUNTY | $500,000 LOAN
    VCEDA approved a $500,000 loan to the Tazewell County Industrial
    Development Authority to be used to finance the purchase of
    equipment, machinery and tools to assist Clinch River Forest
    Products, Inc. in Tazewell County. Clinch River Forest Products is
    a large sawmill operation in Tazewell, Va. which employs 85 direct
    full-time employees. The company anticipates as a result of the loan
    it will be able to retain the current jobs and add five to 10 additional
    jobs in the next two years. The company began its operations in
    Tazewell County in 2005 and has previously received funding from
    VCEDA which it paid off in 2013.




                                                                               AT&T WIRELESS | RUSSELL COUNTY | 200 JOBS
                                                                               AT&T Wireless announced in 2020 it was hiring for 200 jobs at
                                                                               $15+ per hour at their Lebanon, Va. customer service center.
                                                                               VCEDA assisted in recruiting and financing this center when it
                                                                               located here 17 years ago, and we follow up with them on an active
                                                                               basis. Successful information technology companies operating in
                                                                               the region like AT&T Wireless help market the VCEDA region as
                                                                               an excellent location for this type of business. VCEDA has been
                                                                               marketing to the IT industry for more than 20 years and in that time
                                                                               has successfully recruited leading IT companies which continue to
                                                                               operate here.




    TDEC | RUSSELL COUNTY | $25,000 GRANT
    VCEDA approved a $25,000 grant to the Russell County Industrial
    Development Authority to assist Russell County IT business,
    TDEC, with workforce development and training. The grant is from
    VCEDA’s Workforce Development and Training Fund. The grant
    will help TDEC, which stands for “The Data Entry Company,” add
    approximately 14 new full-time and 2 part-time jobs in a five-year
    period. TDEC is a business process outsourcing firm headquartered
    in Bethesda, Md., and was first recruited to the region by VCEDA in
    2018. The HUBZone designation available in much of the VCEDA
    region was one factor in TDEC’s decision to locate here.




8
NEW ECONOMIC DEVELOPMENT SITES
DICKENSON COUNTY | $950,000 GRANT
VCEDA approved an up to $950,000 grant to the Dickenson County
Industrial Development Authority (IDA) to be used to finance the
costs associated with development of two new economic development
sites in that county. The Dickenson County IDA requested the funds
for the demolition of the former Haysi High School and Clintwood
High School and Annex, site development, site grading and other
improvements, and costs associated with the project to create two
new economic development sites in Dickenson County. Both of these
locations became available as economic development sites after the
consolidation of the former schools into the new Ridgeview High
School outside of Clintwood.




                                                                       HISTORIC CRAB ORCHARD MUSEUM
                                                                       TAZEWELL COUNTY | $100,000 GRANT
                                                                       VCEDA approved an up to $100,000 grant from the VCEDA
                                                                       Tourism Capital Improvement Matching Fund for the Historic
                                                                       Crab Orchard Museum and Pioneer Park in Tazewell County. The
                                                                       funds will be used to finance building construction, expansion and
                                                                       rehabilitation, the construction and development of new exhibits
                                                                       and other improvements. Specifically, repairs to the metal roof,
                                                                       expanding and renovating the visitor bathrooms, upgrading the
                                                                       permanent exhibition gallery and expanding the storage capacity
                                                                       of the collections and general storage areas are among the areas the
                                                                       grant funding is planned to be used. The museum just celebrated
                                                                       its 40th year as a non-profit museum and educational institution.




WISE-NORTON LAND RECORDS TRAINING PROJECT
WISE COUNTY AND CITY OF NORTON | $50,000 GRANT
VCEDA approved an up to $50,000 grant to the Wise County
Industrial Development Authority to modernize the Wise County
and City of Norton land records data system and to develop a
workforce training program associated with it. The project is
designed to improve public record availability, and the education
component focuses on creating paid internships for students which
also provides them with employable skills for the future. The first
component of the project is the development of a software platform
enabling the creation of “smart” land records, their storage and
indexing for easy and rapid searching. The second component of the
project is the recruitment of students into a training curriculum on
blockchain-based software fundamentals, land record abstraction
and smart record creation using the software.


                                                                                                                                              9
                                                 HIGHLIGHTS
 RED ONION INDUSTRIAL SITE
 DICKENSON COUNTY | $1.2 MILLION GRANT
 VCEDA approved an up to $1.2 million grant to the Dickenson
 County Industrial Development Authority to be used for further
 developments on the Red Onion Industrial Site. The funds will be
 used to help finance site grading, site development, access road
 construction and storm drainage improvements on the Red Onion
 site which is also known as the Coalfield Regional Industrial Park.
 The funds will also be used for the extension of utilities, including
 water, sewer, electric, natural gas and broadband to the property.




                                                                         LYRIC THEATER | WISE COUNTY | $100,000 GRANT
                                                                         VCEDA approved an up to $100,000 grant to the Town of St. Paul
                                                                         Industrial Development Authority (IDA) to be used on the Phase
                                                                         II redevelopment of the historic Lyric Theater in St. Paul, Va.
                                                                         The grant, which was approved from VCEDA’s Tourism Capital
                                                                         Improvement Matching Fund program, will be used to finance
                                                                         building construction, rehabilitation and improvements as well
                                                                         as the purchase of furniture, fixtures and equipment, and other
                                                                         improvements and costs associated with the renovation project.
                                                                         Once restored, plans for the theater are that it can be used for
                                                                         live theater performances, for regional musical events, and for
                                                                         conferences and events. When the renovations are complete the
                                                                         IDA indicated one full-time job and four part-time jobs will be
                                                                         created within a three-year period.



 BROADBAND EXPANSION
 DICKENSON COUNTY | $750,916 GRANT
 VCEDA approved an up to $750,916.88 grant to the Dickenson
 County Industrial Development Authority (IDA) to help finance the
 installation and extension of high-speed broadband to underserved
 areas of broadband in Dickenson County. The funding will be used
 toward the purchase and installation of fiber optic cable, fiber
 drops, electronics and wireless microwave backhaul, engineering,
 permitting and other fees and costs associated with the projects.
 The Dickenson County IDA and the Dickenson County Board of
 Supervisors conducted a study to identify underserved areas of
 broadband in the county, and those study results are being used to
 prioritize where funding can best be utilized to reach the greatest
 number of people and businesses in need of service.



10
                       S E E D C A P I TA L P R O J E C T S
VCEDA SEED CAPITAL MATCHING FUND
Recognizing that small businesses play a significant role in the
growth and stability of the economy, VCEDA established the
VCEDA Seed Capital Matching Grant Fund in 2017. The goal of the
Seed Capital Matching Fund is to help VCEDA meet the purposes
                                                                           STATISTICS
                                                                          Stats on Seed Capital Matching Fund
                                                                          SINCE 2017
for which it was created by providing a source of matching grant                            PROJECTS 97
funds to assist new, start-up, and emerging small businesses
located within the region, and to attract such small businesses
                                                                                                         792 (480 FULL-TIME;
from outside the region to locate within the region. By adding this                  PROJECTED JOBS
                                                                                                         312 PART-TIME)
program to its existing efforts to attract larger industries to the
region and to help existing companies to expand, this program has
provided VCEDA with a more well-rounded approach to creating                PROJECTED INVESTMENT $5,693,055
new jobs and investment in the region




Blankenship’s Hunting Supply, Taxidermy & Deer Processing LLC | Buchanan County
Avid hunters, fishermen and outdoorsmen find a one-stop shop at Blankenship’s Hunting Supply, Taxidermy & Deer Processing LLC in
the Hurley area of Buchanan County. The new business, owned by Karen Blankenship, provides hunters with the opportunity to bring
their trophy kill to the business for skinning, cleaning, mounting and meat processing. All meats are vacuum sealed and refrigerated until
the customer picks it up. Life size mounts as well as half-size taxidermy for bear, deer, coyotes, bobcats, foxes, raccoons and squirrels
are available. Blankenship’s husband, Mitchell Lee Blankenship, is the certified taxidermist. The business projects one full-time and one
part-time employee.




Lil’ Doc Hollow Hemp, LLC | Dickenson County
The growing of industrial hemp in Virginia has a long history tied to it, having been grown in Virginia as early as the mid-1600s. As
laws began to change in Virginia in recent years to allow for the production of hemp, the Meade family in Dickenson County saw a new
opportunity arise and formed Lil’ Doc Hollow Hemp, LLC. The company is owned by Robert Meade Sr., Brenda Meade, Brandon Meade
and Trista Meade, all of Clintwood. The Meades grow a locally sourced product and then sell the hemp, with plans in the future to process
it and to provide an array of products, like tinctures and salve, edibles and other health and wellness products. The business projects four
full-time and five part-time employees by the fifth year.




Yates Recovery and Transport, LLC | Dickenson County
The need for wrecker and rollback services in the Haysi area was something Dakota Yates, of Clinchco, identified as a need for Dickenson
County and surrounding areas. As a result, he opened Yates Recovery and Transport, LLC to provide services including hauling
automobiles for repair, or for those that are involved in accidents, roadside assistance and assisting local police with impounds. Four-
wheel drive wrecker service adds to its capabilities and a variety of insurances are accepted. The new business has also added a collision
center to be able to make repairs to automobiles. The business projects one full-time and two part-time jobs within two years.




                                                                                                                                          11
                          S E E D C A P I TA L P R O J E C T S
 Trailhead Country Kitchen LLC | Dickenson County
 As Gabriel Yates looked at the Town of Haysi in Dickenson County, he saw an opportunity to cater to the town’s growing tourism economy
 as a result of Spearhead Trails’ Ridgeview Trail. As a result, he opened Trailhead Country Kitchen LLC. Not only does Trailhead Country
 Kitchen serve the restaurant needs of hungry trail riders, capitalizing on its slogan, “Don’t Ride Hungry,” but it also serves as a gathering
 spot for locals searching for a place nearby to have a good home-cooked meal, as well as to Russell Fork River whitewater rafters, kayakers,
 innertube floaters and fishermen. Trailhead Country Kitchen projects two full-time and six part-time employees within three years.




 Country-fied Café | Dickenson County
 Amber Owens, of Clintwood, always dreamed of opening her own restaurant, even while she has spent her time as a teacher in the public
 school system. The opening of Country-fied Café in Dickenson County is the realization of that dream as she and her husband purchased
 a food truck in which to operate the business beginning in the spring of 2021. The menu will include wraps, sandwiches, two different
 types of fries and eventually soups and other light menu fare. Initially, the focus will be to operate the truck on the weekends in Southwest
 Virginia locations, but as the business grows, Owens sees it expanding to travel to festivals in Virginia and in neighboring West Virginia
 and Kentucky. The business projects three full-time and two part-time employees.




 O’Quinn Rentals, LLC | Dickenson County
 The opportunity for a unique lodging experience is what O’Quinn Rentals provides for its customers who choose to book a renovated
 train caboose to stay in the Haysi area to enjoy the Spearhead Trails. Jarrod and Audrea O’Quinn purchased two train caboose cars and
 a three bedroom, two-bath home with the intention of renovating all of them into short-term rental units. One of the cabooses is now
 complete and being offered for rent and renovations are ongoing to ready the second caboose and the house. The business projects one
 full-time and two part-time employees.




 Propel Counseling Group LLC | Dickenson County
 Outpatient counseling, substance abuse counseling and trauma-focused counseling are among the treatment options available through
 Propel Counseling Group LLC. The company opened in October 2020 and is operated in Clintwood, Va. by licensed professional
 counselors Kimberly Carroll and Heather Lynch. Carroll and Lynch bring a combined 21 years of work in the mental health field and
 in addition to seeing clients at their clinic location, they also make house calls. The business projects 10 full-time and two part-time
 employees.




 Caney Kennels | Dickenson County
 As Kevin O’Quinn, of Clintwood, looked down the road to retiring after a long career with the department of corrections, he was faced
 with trying to decide what to do to supplement his retirement, so he took a skill set he had used for years working with K-9 officers and
 opened Caney Kennels. The new business as it develops will breed, train and sell American Kennel Club registered Labrador Retrievers
 as well as provide dog-related services including breeding, boarding and obedience training. Ultimately the goal is to offer training for
 both therapy dogs and detection dogs. The business projects two full-time and three part-time employees.


12
Copper Creek Metal Works LLC   Lil’ Doc Hollow Hemp, LLC




Appalachian Treasures LLC                                  Adventure E-bikes, Inc.




Next Door Drug Pharmacy, PC    O’Quinn Rentals, LLC                                  Propel Counseling Group LLC


                                                                                                                   13
                        S E E D C A P I TA L P R O J E C T S
 Nana’s Country Kitchen, LLC | Lee County
 It was a discussion one day with their grandchildren that led Janice and Taylor Scott, of Pennington Gap, to open Nana’s Country Kitchen,
 LLC. As their grandchildren talked about their memories of sharing food and fun at “Nana’s house,” the Scotts decided to open their sit-
 down restaurant in a space large enough to accommodate civic club meetings, church groups and users of the Spearhead Trails system in
 addition to members of the Lee County community. The full-service restaurant is located at 191 Industrial Drive in Pennington Gap and
 has a seating capacity of 96. The Scotts project four full-time and seven part-time jobs within three years.




 The Marion Kitchen LLC | Lee County
 Family and friend recipes passed down through generations will be among the food fare offered to patrons of The Marion Kitchen LLC, a
 mobile food truck business in Lee County, when it officially opens later this year. Jessica Ernspiker, of Big Stone Gap, owns the business,
 which she named using her maiden name, Marion. Opening the business and creating the foods enjoyed by her family for generations,
 Ernspiker said, has been a dream of her’s and her father’s for many years. Plans are to set up the food truck in Lee County on a regular
 basis, but also, during festival season, to travel some to various events with the food truck. The business projects one full-time and one
 part-time position.




 Butcher’s Dining LLC, d/b/a Charly’s | Lee County
 With extensive experience in the food service industry, having been a server, cook, manager and district manager for a chain restaurant,
 Charly Butcher, of Pennington Gap, decided it was time to open her own business and in the fall of 2020, formed Butcher’s Dining LLC,
 doing business as Charly’s in Lee County. The sit down restaurant is family-oriented and features homemade soups, biscuits and gravy
 and everything in between, with a focus on down home cooking and comfort food on its menu. The business projects 10 full-time and
 15 part-time employees.




 P&E Wholesale LLC | Russell County
 For Eric and Pamela Brown, of Honaker, the floral business has been in their backgrounds for decades. Earlier this year, they took things
 one step further, opening P & E Wholesale LLC, a wholesale floral supply business which sells to retail floral and gift shops in southwest
 Virginia, southern West Virginia and eastern Kentucky. Silk flowers and vases, to gifts and other home décor items often used by flower
 shops in the design of floral bouquets and by gift shops for outright sale items, are among the items available through the business which
 projects up to three full-time employees and one part-time employee within four years.




 Adventure E-bikes, Inc. | Russell County
 A unique travel experience centered around cycling and tourism in Southwest Virginia is the focus of Adventure E-bikes, Inc. in Lebanon.
 Wyatt Carter, of Lebanon, opened the new business at which he offers bike rentals and sales and also provides guided bike tours in the
 area. Guests on guided rides are those staying in local homes or cabins matching the quaint experience of the outdoor cycling adventure
 on which they are embarking. Bikes are available for rent, or riders may bring their own. The business, which projects one full-time and
 two part-time employees within two years, utilizes the VeloGuide social App which connects people wanting to ride bikes with those
 willing and able to guide the rider or group of riders through a certain region.


14
Next Door Drug Pharmacy, PC | Russell County
When Jackie Hackney, Clint Lawson and Nicole Bostic met at the Appalachian College of Pharmacy in 2005, they agreed that someday
-- after graduation -- they would open their own pharmacy. In August 2020, the three classmates who graduated in 2008 with their doctor
of pharmacy degrees, opened Nextdoor Drug. At the end of last year, plans for the new pharmacy business in Lebanon, Va. were solidified
and began to take shape as the business was set up as a professional corporation, Next Door Drug Pharmacy, PC. Three full-time and two
part-time jobs are projected within the first year and within five years, they are projecting five full-time and five part-time jobs.




Copper Creek Metal Works LLC | Russell County
If it’s metal, Copper Creek Metal Works LLC in Russell County can make it. Jonathan and Allison Byerley, of Castlewood, opened their
new metal cutting and fabrication business, offering custom designs for businesses and homes – from simple wall décor and signs, to
farm entrance decoration, fire pits, shelving, furniture, privacy walls, special designs and more. Copper Creek Metal Works can take a
customer’s sketches or ideas and turn them into a custom-made, one-of-a-kind work of art. The business projects one full-time and one
part-time job.




Nxtgen Mobile Welding Services, LLC | Russell County
When welding services are needed, it’s not always convenient to have to take the piece of equipment or item into the shop to have it fixed.
That’s where Nxtgen Mobile Welding Services, LLC comes in. Antony Chestin Wright, of Honaker, opened the business, with the idea of
providing welding services on site for area farms, businesses, or residential customers in Russell, Buchanan, Tazewell and Washington
counties. Welding needs are completed on site, getting equipment back up and running sooner or other repairs made in a manner easier
for the customer who doesn’t have to figure out a way to get heavy equipment or other bulky metal components into a shop for repair. The
business projects three full-time employees as it continues to grow.




The Play Hut, PLLC | Russell County
Pediatric outpatient therapy services are offered at The Play Hut, PLLC, operated by Kelsey Bush, of Lebanon. The Play Hut’s mission is to
bring pediatric health and wellness opportunities to the underserved communities in Southwest Virginia. Open, group and private play is
offered for children in a supervised setting and is especially geared toward children with sensory issues, birth defects, autism and ADHD.
Bush is a registered and licensed occupational therapist. In addition to providing therapeutic services, screenings and developmental play,
The Play Hut will also offer space for holding special events in the community. Games, activities, interactive play spaces, tables, chairs,
coolers and freezers will be available for patrons renting out the space to host children’s events with family and friends. The business
projects two full-time and three part-time employees.




Whitt Insurance Agency, LLC | Russell County
Community involvement has always been important to Jessica Whitt, of Honaker, who opened her own business, Whitt Insurance
Agency, LLC in April 2020 in Russell County. Her company provides insurance coverage covering auto, home, condo, townhouse, mobile
homes, boats, motorcycles, rentals and more to those in need of insurance. Bristol West is available for those not qualifying for Farmers
Insurance and Kraft Like is available for commercial and workers compensation. The business projects two full-time and one part-time
employees.


                                                                                                                                         15
                         S E E D C A P I TA L P R O J E C T S
 Clinch River Life, LLC | Scott County
 Life on the Clinch River is a focus of Clinch River Life, LLC which opened in Scott County last year. Owned by Robert and Elise Bloomer,
 of Big Stone Gap, the business rents tubes to float the Clinch River to visitors coming into the area for recreational experiences, including
 Spearhead Trails, Natural Tunnel, Devil’s Bathtub and the mountain bike system at Flag Rock recreation area in Norton. Long term goals
 include expanding the business into kayaking and camping. The business projects one full-time and 10 part-time employees.




 Moccasin Junction Inc. | Scott County
 The lack of a convenience store with a deli and fuel are in part what spurred Hunter Lambert, of Gate City, to open Moccasin Junction
 Inc., a full-service convenience store with a fuel island at the junction of State Routes 71 and 613 in Scott County. Lambert also operates
 a cattle farm and fencing company and when working for the state driving the roads in the area, he saw the need for a store where a
 customer could pick up a sandwich and get gas without having to drive an hour in either direction. The new store fits that bill and will
 feature traditional fare, but also local apples and other local products from the region. The business projects three full-time and two part-
 time employees.




 Nash Creamery | Scott County
 Garland and Sheila Nash, of Nickelsville, were looking for a way to make their dairy farm more economical when they did the research and
 then decided to expand their farm, turning it into a Micro-Dairy Processing plant, which they named Nash Creamery. The couple began
 with their raw milk dairy operation and made the adjustments and additions necessary to transform it into a Grade A Virginia Department
 of Health-certified creamery facility where they bottle and sell milk. Plans are to add ice cream, butter and yogurt production in the future.
 The business projects two full-time and six part-time employees.




 Appalachian Treasures LLC | Tazewell County
 After purchasing a piece of property on Virginia Avenue in Bluefield and the 2,000-square-foot building that is situated on it, Bill Haver
 began to see the pieces fall into place for his new business, Appalachian Treasures LLC. The new space accommodates vendors who rent
 available floor space to sell their goods. In turn, Appalachian Treasures provides the sales and support staff to take care of customers
 visiting the business. Under their business model, the reach of the grant they received through VCEDA may also benefit up to 20 other
 small business entrepreneurs by providing retail venues for local artisans, crafters, antique dealers and others. Initially, Appalachian
 Treasures projects one full-time job and one-part-time job.




 Professional Bookkeeping & Accounting Inc. | Tazewell County
 Providing for the accounting, bookkeeping and other financial record keeping needs of area businesses and individuals is the primary
 goal Pansy Harman, of Tazewell, had when she formed Professional Bookkeeping & Accounting Inc. Harman, who has worked in the
 accounting field for more than 38 years, noted it’s been her life’s work to take care of the bookkeeping and record keeping needs of many in
 the business community in Tazewell and the surrounding area. The business projects four full-time and six part-time jobs will be created
 within five years.


16
The Marion Kitchen LLC          Yates Recovery and Transport, LLC




Valley Animal Clinic, PLLC                                                              The Play Hut, PLLC




Trailhead Country Kitchen LLC                               Nxtgen Mobile Welding Services, LLC


                                                                                                             17
                         S E E D C A P I TA L P R O J E C T S
 The Grind Bluefield LLC | Tazewell County
 As Collin O’Donnell prepared to graduate from Bluefield College in December with his Bachelor’s degree, the Buffalo, NY, native already
 had plans to pursue his Master’s Degree at his alma mater and to continue to operate the new business he opened in 2020 in Bluefield,
 Va. The Grind, a coffee and bagel shop in downtown Bluefield, launched as a start-up in January 2020, but due to the pandemic, ended
 up opening in a food truck setting in May 2020. The new business has plans for a grand opening of its indoor dining space in early 2021.
 Although the application projects two full-time and five part-time jobs, O’Donnell noted The Grind has plans to employ as many as five
 full-time and 12 part-time employees.




 Valley Animal Clinic, PLLC | Tazewell County
 A native of Southwest Virginia, after Dr. Allison M. Sparks, of Cedar Bluff, finished her veterinary education at the Virginia-Maryland
 College of Veterinary Medicine, she returned to the area to open Valley Animal Clinic, PLLC. The new business is located at 1058 Cedar
 Valley Drive in Cedar Bluff in the former veterinary clinic space operated by the late Dr. Roy Wright. The new veterinary clinic offers
 small animal wellness checks, vaccinations, surgery, dentistry, hospitalization and in-house laboratory and radiology services. Products
 for flea and tick control and options for pet nutrition and diet are also offered for sale. The business projects five full-time and two part-
 time employees.




 Tazewell Dance Center LLC | Tazewell County
 The lack of a dance studio in Tazewell was something that spurred Emily Hinkle, of Cedar Bluff, to open the Tazewell Dance Center LLC
 in the Four-Way Shopping Center in North Tazewell. From classical ballet, jazz and hip-hop to tap, modern, lyrical and contemporary, to
 pointe, improv, pom and tumbling, the studio has something to offer to students of all ages. Classes are also taught in yoga and UltraBarre.
 Hinkle holds a Bachelor of Arts degree in dance from Radford University. In 2019, she won a national dance title and knew it was time to
 follow her dream of opening her own dance studio. The business projects one full-time and one part-time employee.




 Mercantile on Main, Inc. | Wise County
 Unique and locally created items are among the goods found at Mercantile on Main, Inc. at 215 E. Main Street, Suite B in Wise. Jessee and
 Ashley DeLoach decided to open the business to help local shop owners find a way to market their goods in an economical way. “Shop
 owners” rent space and pay commission on sales to aid in the operating costs of the business. Additionally, other small businesses which
 don’t have a need for a full space find a home for their items which are purchased at wholesale. The business projects one full-time and
 one part-time job within a year.




18
      V C E D A R E N E WA B L E E N E R G Y F U N D




​VCEDA Renewable Energy Fund
The Virginia Coalfield Economic Development Authority created        How can the funding be used?
a Renewable Energy Fund in 2020 to help attract new jobs and
                                                                     » Funding is available as low-interest loans and/or grants
investment to Southwest Virginia’s e-Region and to help diversify
its economy. VCEDA has initially allocated $1 million in the fund,   » Loans are available for real estate acquisition, building
from Coalfield Employment Enhancement Tax Credit funds. The            construction, equipment purchases, and other physical
amount of funding per project is based upon factors including the      improvements that add value to real estate, including
number of jobs, wage rates, and private investment of the project.     associated soft costs
VCEDA is a unique regional economic development agency               » Grants are available to assist with workforce development
created by the Virginia General Assembly to enhance and diversify      and training, such as tuition reimbursement, internships, and
the economy of Buchanan, Dickenson, Lee, Russell, Scott, Tazewell      training equipment
and Wise counties and the City of Norton in Southwest Virginia.


                                                                     What types of groups are eligible to apply?
What examples of projects are eligible?                              » For-profit businesses
» Commercial/industrial electricity generation projects using
  renewable energy sources                                           » Non-profit organizations

» Manufacture of renewable energy products and components            » Industrial/economic development authorities

» Workforce development and training projects to prepare the         » Must be developing a project in the region
  region’s workforce for renewable energy jobs




                                                                                                                                   19
               M A R K E T I N G S O U T H W E S T V I R G I N I A’ S
                                                           Even though COVID-19 affected outreach events in 2020, VCEDA continued marketing to
                                                           site consultants and targeted industries and attended several trade shows and conferences
                                                           in person early in the year, and exhibited and attended others virtually. In 2020 VCEDA
                                                           had 28 in-person and virtual prospect visits and handled 165 inquiries about Southwest
                                                           Virginia’s e-Region.

                                                           Marketing collateral promoting Southwest Virginia’s e-Region received major updates
                                                           including a complete overhaul and new address for the VCEDA website—www.vceda.us.
                                                           New additions to the website include webpages for the Virginia Coalfields Expressway
                                                           Authority and VCEDA’s Renewable Energy Fund, a chat feature, and an interactive regional
      VCEDA produced a promotional video “Find Your        map showing airports, industrial properties, major employers, workforce development
 Place in SWVA’s e-Region.” The video features several     centers, higher education institutions and hospitals. New regional videos, including “Find
         companies VCEDA has assisted in the region.
                                                           Your Place in Southwest Virginia’s e-Region,” which was debuted at the virtual Southwest
                                                           Virginia Economic Forum in September, and other video clips featuring business leaders
                                                           describing living and working in the region also are featured on the VCEDA website.

                                                           VCEDA attended two targeted industry trade shows in person: the Kitchen and Bath
                                                           Industry Show in Las Vegas with the Virginia Economic Development Partnership
                                                           in January, and VCEDA manned an e-Region exhibit booth and met with companies
                                                           attending the IT Expo in Fort Lauderdale, FL in February. Other major virtual trade
                                                           show events VCEDA attended included AUVSI Xponential, the Governor’s Summit
                                                           on Rural Prosperity and the Southeastern Economic Development Council’s “Meet the
                                                           Consultants” event.

                                                           Continued marketing to site consultants, target industries and trade show audiences
                                                           using lead generation campaigns, the VCEDA website, social media, news briefs, media
                                                           relations, print advertising and other communication tools, helps VCEDA create interest
                                                           and invitations to visit and see what Southwest Virginia’s e-Region has to offer businesses.




       VCEDA was represented at the Virginia Chamber
     of Commerce "Chamber Day at the Capitol" events
          and at the Old Dominion Legislative Reception
         in January in Richmond. Pictured, from left are
         Cathy St. Clair, VCEDA Marketing Ambassador;
         Virginia Chamber of Commerce President Barry
     DuVal; Virginia Chamber of Commerce Chairperson
       of the Board of Directors, Paige Clay; and VCEDA
                Marketing Ambassador Mary Rae Carter.




           VCEDA attended and exhibited at IT EXPO in
   Fort Lauderdale, FL, in February. VCEDA manned an
 exhibit booth and met with a number of IT companies
        in pre-set appointments to promote Southwest
  Virginia’s e-Region as a business location. From left
   are VCEDA Marketing Coordinator Susan Copeland;
     VCEDA Marketing Ambassador Charlotte Mullins;
               and Wise County Industrial Development
                                Supervisor Brian Falin.



20
e-REGION




 The November 2020 issue of Virginia Business magazine featured an ad highlighting VCEDA’s new website and promoting Southwest Virginia’s e-Region.




 VCEDA Marketing Ambassador Charlotte Mullins, right, and Michaela Martin of the     VCEDA was a sponsor of the Southwest Virginia Legislative Reception in Richmond
 Virginia Economic Development Partnership attend the Kitchen and Bath Industry      in January. VCEDA board members in attendance included, from left, Duane Miller,
 Show in Las Vegas in January.                                                       Harry Childress, Larry Mosley, Josh Ball, Chairman J.P. Richardson, Jim Baldwin,
                                                                                     and VCEDA Marketing Ambassador Mary Rae Carter.




                                                                                                                                                                    21
         2020 VCEDA MARKETING EVENTS
     EVENT                                     DATE           LOCATION                            TARGET
     Tobacco Commission Reception/Meeting     1/6-7/20    Richmond, VA                 All Target Sectors
     VEDA Legislative Reception               1/13/20     Richmond, VA         Site Location Consultants
     SWVA Legislative Reception               1/22/20     Richmond, VA                 All Target Sectors
     Kitchen & Bath Industry Show            1/21-23/20   Las Vegas, NV                  Manufacturing
     VCEA Legislative Breakfast               1/23/20     Richmond, VA                             Energy
     Old Dominion Assembly Reception          1/23/20     Richmond, VA                 All Target Sectors
     Virginia Rural Caucus Reception           2/5/20     Richmond, VA                 All Target Sectors
     IT Expo                                 2/11-15/20   Ft. Lauderdale, FL     Information Technology
     VEDA Spring Conference                   3/12/20     Roanoke, VA          Site Location Consultants
     VEDA Summer Meeting                      6/24/20     Virtual                      All Target Sectors
     SWVA Economic Forum                      9/2-3/20    Virtual                      All Target Sectors
     VEDA Fall Conference                    9/16-17/20   Virtual                      All Target Sectors
     AUVSI Xponential                        10/6-8/20    Virtual                                UAV/UAS
     Governor’s Summit on Rural Prosperity   10/21/20     Virtual                      All Target Sectors
     SEDC Meet the Consultants               11/12/20     Virtual              Site Location Consultants
     TOTAL MARKETING EVENTS (15)




                                                                                     The August 2020 issue
                                                                                     of Virginia Business
                                                                                     magazine, the annual site
                                                                                     selection edition, included
                                                                                     a two-page ad from VCEDA
                                                                                     promoting Southwest
                                                                                     Virginia’s e-Region.




22
         VCEDA BOARD OF DIRECTORS

                                                   VCEDA Receives 'Excellence in
                                                   Government Response: COVID19'
                                                   Award
                                                   The Virginia Coalfield Economic Development Authority
                                                   (VCEDA) was presented with the “Excellence in Government
                                                   Response: COVID19” award at the Appalachian Council for
                                                   Innovation’s annual awards banquet in October. VCEDA Board
                                                   Member Harry Childress accepted the award on behalf of VCEDA.
                                                   The award recognized VCEDA’s early response in the ongoing
                                                   COVID-19 pandemic, which included funding assistance provided
                                                   by VCEDA through the local IDAs/EDAs to help local businesses
                                                   impacted by the pandemic, and to the Breaks Interstate Park,
                                                   thereby helping to save more than 600 jobs throughout the region.
                                                   The council was formerly known as the Southwestern Virginia
                                                   Technology Council and unveiled its new name at the event.




Virginia Coalfield Economic Development Authority Board of Directors
OFFICERS                       COAL PRODUCERS                           PLANNING DISTRICT COMMISSIONS
J.P. Richardson | Chairman     Brian Hess                               Jim Baldwin
Larry Mosley | Vice-Chairman    Coronado IV LLC                          Cumberland Plateau PDC
Joshua Ball | Secretary        Troy Nichols                             Duane A. Miller




                               VCEDA
Esther Bolling | Treasurer      Paramont Contura, LLC                    LENOWISCO PDC
                               J.P. Richardson
GOVERNOR’S APPOINTEES           Surface Minerals Company                COUNTY BOARD OF SUPERVISORS
Maggie Asbury                                                           Carroll Branham | Buchanan County
Esther Bolling                 GAS PRODUCER                             Rhonda Sluss | Dickenson County
Becky Coleman                  Joshua Ball                              Mike D. Hymes | Tazewell County
Mark T. Leonard                 Pocahontas Gas
Larry Mosley                                                            VIRGINIA ECONOMIC
                               VIRGINIA COAL & ENERGY ALLIANCE          DEVELOPMENT PARTNERSHIP
                               Harry Childress                          Vince Barnett



                                                                                                                  23
                2 0 2 0 V C E D A L O A N A P P R O VA L S
     LOANS                                                                                     APPROVED              AMOUNT
     Buchanan County          West River Conveyors and Machinery Company                        2/20/20         $1,225,000.00
     Buchanan County          Buchanan County IDA/Small Business COVID 19 Relief                4/16/20          $100,000.00

     Buchanan/Dickenson
                              Breaks Interstate Park/COVID 19 Relief                            4/16/20          $150,000.00
     Counties

     Dickenson County         Dickenson County IDA/Small Business COVID 19 Relief               4/16/20          $100,000.00
     Lee County               Lee County EDA/Small Business COVID 19 Relief                     4/16/20           $25,000.00
     City of Norton           City of Norton IDA/Small Business COVID 19 Relief                 4/16/20           $40,000.00
     Russell County           Russell County IDA/Project Trout                                  2/20/20          $500,000.00
     Russell County           Russell County IDA/Small Business COVID 19 Relief                 4/16/20           $75,000.00
     Russell County           Russell County IDA/Russell Place                                  12/17/20         $900,000.00
     Russell/Wise Counties    Russell County IDA/Project Brown                                  9/23/20         $2,500,000.00
     Scott County             Scott County EDA/Small Business COVID 19 Relief                   4/16/20           $50,000.00
     Tazewell County          Tazewell County IDA/Small Business COVID 19 Relief                4/16/20          $100,000.00
     Tazewell County          Tazewell County IDA/Clinch River Forest Products                  4/16/20          $500,000.00
     Tazewell County          Tazewell County IDA/Project Claw                                  11/19/20         $400,000.00
     Wise County              Wise County IDA/Small Business COVID 19 Relief                    4/16/20          $100,000.00
                              Southwestern Virginia Technology Council/
     Regional                                                                                   9/23/20           $50,000.00
                              IN Appalachia Project
     TOTAL LOANS (16)                                                                                           $6,815,000.00



              2 0 2 0 V C E D A G R A N T A P P R O VA L S
     GRANTS                                                                                         APPROVED         AMOUNT
     Buchanan County                Blankenship’s Hunting Supply, Taxidermy & Deer Processing LLC    12/17/20      $9,000.00
     Buchanan/Dickenson Counties    Breaks Interstate Park Commisssion                                2/20/20     $60,900.00
     Dickenson County               Dickenson County IDA/Haysi & Clintwood Site Development           2/20/20    $950,000.00
     Dickenson County               Lil’ Doc Hollow Hemp, LLC                                         6/30/20     $10,000.00
     Dickenson County               Yates Recovery and Transport, LLC                                 6/30/20     $10,000.00
     Dickenson County               Trailhead Country Kitchen LLC                                     6/30/20     $10,000.00
     Dickenson County               Dickenson County IDA/Red Onion Site Development                   9/23/20   $1,200,000.00
     Dickenson County               Dickenson County IDA/Broadband Project                            9/23/20    $750,916.88


24
                             Dickenson County IDA/Medical Device Manufacturing Feasibility
Dickenson County                                                                             11/19/20      $170,000.00
                             Study
Dickenson County             Caney Kennels                                                   12/17/20        $9,000.00
Dickenson County             Country-fied Café                                               12/17/20        $9,000.00
Dickenson County             O/Quinn Rentals, LLC                                            12/17/20        $9,000.00
Dickenson County             Propel Counseling Group LLC                                     12/17/20        $9,000.00
Lee County                   Nana’s Country Kitchen, LLC                                     6/30/20        $10,000.00
Lee County                   The Marion Kitchen LLC                                          12/17/20        $9,000.00
Lee County                   Charly’s                                                        12/17/20        $9,000.00
Russell County               P & E Wholesale LLC                                             6/30/20        $10,000.00
Russell County               Adventure E-bikes, Inc.                                         6/30/20        $10,000.00
Russell County               Next Door Drug Pharmacy, PC                                     6/30/20        $10,000.00
Russell County               Russell County IDA/TDEC                                         6/30/20        $25,000.00
Russell County               Copper Creek Metal Works LLC                                    12/17/20        $9,000.00
Russell County               Nxtgen Mobile Welding Services, LLC                             12/17/20        $9,000.00
Russell County               The Play Hut, PLLC                                              12/17/20        $9,000.00
Russell County               Whitt Insurance Agency, LLC                                     12/17/20        $9,000.00
Scott County                 Clinch River Life, LLC                                          12/17/20        $9,000.00
Scott County                 Moccasin Junction Inc.                                          12/17/20        $9,000.00
Scott County                 Nash Creamery                                                   12/17/20        $9,000.00
Tazewell County              Appalachian Treasures LLC                                       6/30/20        $10,000.00
Tazewell County              Professional Bookkeeping & Accounting Inc.                      6/30/20        $10,000.00
Tazewell County              The Grind Bluefield LLC                                         6/30/20        $10,000.00
Tazewell County              Town of Tazewell IDA/Sunnyside Lodging                          6/30/20       $100,000.00
Tazewell County              Historic Crab Orchard Museum and Pioneer Park, Inc.             6/30/20       $100,000.00
Tazewell County              Tazewell Dance Center LLC                                       12/17/20        $9,000.00
Tazewell County              Valley Animal Clinic, PLLC                                      12/17/20        $9,000.00
Wise County                  Mercantile on Main, Inc.                                        6/30/20        $10,000.00
Wise County                  Town of St. Paul IDA/Lyric Theater Phase II                     6/30/20       $100,000.00
Wise County/City of Norton   Wise County IDA/Land Records Training Project                   12/17/20       $50,000.00
TOTAL GRANTS (37)                                                                                        $3,760,816.88

TOTAL LOANS & GRANTS (53)                                                                               $10,575,816.88

                                                                                                                         25
          INDEPENDENT AUDITOR’S REPORT
 The Board of Directors
 Virginia Coalfield Economic
 Development Authority
 Lebanon, Virginia 24266

 Report on the Financial Statement
 We have audited the accompanying statement of cash receipts and disbursements of Virginia Coalfield Economic Development Authority (the Authority) for the year ended
 December 31, 2020 and the related notes to the financial statement.

 Management’s Responsibility for the Financial Statements
 Management is responsible for the preparation and fair presentation of this financial statement in accordance with the cash basis of accounting described in Note 1; this
 includes determining that the cash basis of accounting is an acceptable basis for the preparation of the financial statement in the circumstances. Management is also
 responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
 material misstatement, whether due to error or fraud.

 Auditors’ Responsibility
 Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with auditing standards generally accepted
 in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
 United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free from material
 misstatement.
 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement. The procedures selected depend on
 the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk
 assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statement in order to design audit procedures
 that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express
 no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
 management, as well as evaluating the overall presentation of the financial statement.
 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

 Opinion
 In our opinion, the financial statement referred to in the first paragraph presents fairly, in all material respects, the statement of cash receipts and disbursements of the
 Authority for the year ended December 31, 2020, in accordance with the cash basis of accounting described in Note 1.

 Basis of Accounting
 We draw your attention to Note 1 of the financial statement, which describes the basis of accounting. The financial statement was prepared on the cash basis of accounting,
 which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

 Other Reporting Required by Government Auditing Standards
 In accordance with Government Auditing Standards, we have also issued our report dated February 11, 2021, on our consideration of the Authority’s internal control over
 financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
 report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion
 on the effectiveness of the Authority’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
 Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.




 Norton, Virginia
 February 11, 2021

 NOTE 1 - NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES
 Financial Reporting Entity – Virginia Coalfield Economic Development Authority was created, effective July 1, 1988, as a political subdivision of the Commonwealth of Virginia, pursuant to the
 Code of Virginia, Chapter 60, Sections 15.2-6000-6015. Virginia Coalfield Economic Development Authority accounts for all funds received from tax and grant receipts, investment earnings, loan
 collections and related expenditures for the eight participating localities.
 Cash basis of accounting – As is the case of many funds of this type, the accounts are maintained, and the statements are presented, on a cash basis, reflecting only recorded cash receipts and cash
 disbursements. Therefore, cash collected and not recorded in the general ledger, receivables, and payables, inventories, accrued revenue and expenditures, and equipment and depreciation, which
 may be material in amount, are not reflected, and this statement is not intended to present the overall financial position or results of operations in conformity with generally accepted accounting
 principles.
 Cash and cash equivalents – For purposes of reporting cash, the Authority considers all certificates of deposit, savings accounts, and money market funds with an original maturity of three months
 or less to be cash equivalents.
 Deposits with banks are covered by the Federal Deposit Insurance Corporation (FDIC) and collateralized in accordance with the Virginia Security for Public Deposits Act (the “Act”) Section 2.2-
 4400 et. Seq. of the Code of Virginia. Under the Act, banks and savings institutions holding public deposits in excess of the amount insured by the FDIC must pledge collateral to the Commonwealth
 of Virginia Treasury Board. Financial Institutions may choose between two collateralization methodologies and depending upon that choice, will pledge collateral that ranges in the amounts from
 50% to 130% of excess deposits. Accordingly, all deposits are considered fully collateralized.

 Classification of accounts:
 Coal and Gas Funds
     On September 1, 1988, and on the first day of each month thereafter, each county and city shall remit to the Virginia Coalfield Economic Development Authority twenty-five percent of the
     revenues collected during the next to last calendar month from the (i) gas road improvement tax pursuant to Section 58.1-3713 and (ii) local coal road improvement severance licenses tax
     pursuant to subsection B of Section 58.1-3741.



26
   Pursuant to Section 58.1-3713.4, a county or city may levy an additional license tax on every person engaging in the business of severing gases from the earth. The license tax shall be at a rate
   not to exceed one percent of the gross receipts from the sale of gases severed within the county or city. In the counties of Buchanan, Dickenson, Lee, Russell, Scott, Tazewell, and Wise, and the
   City of Norton one-half of the revenues derived from such tax shall be paid to the Virginia Coalfield Economic Development Authority.

Tax Credit Funds
   Pursuant to Section 58.1-439.2, Coalfield employment enhancement tax credit, for tax years beginning on and after January 1, 1996, but before January 1, 2017, and or after January 1, 2018, but
   before January 1, 2023 (for metallurgical coal only), any person who has an economic interest in coal mined in the Commonwealth shall be allowed a credit against the tax imposed by Section
   58.1-400 and any other tax imposed by the Commonwealth. If the credit exceeds the person’s state tax liability for the tax year, the excess shall be redeemable by the Tax Commissioner on
   behalf of the Commonwealth for ninety percent of the face value within ninety days after filing the return; however, for credit earned in tax years beginning on and after January 1, 2002, such
   excess shall be redeemable by the Tax Commissioner on behalf of the Commonwealth for eighty-five percent of the face value within ninety days after filing this return. The remaining ten or
   fifteen percent of the value of the credit being redeemed, as applicable for such tax year, shall be deposited by the Commissioner in a regional economic development fund administered by the
   Virginia Coalfield Economic Development Authority to be used for regional economic diversification in accordance with guidelines developed by the Virginia Coalfield Economic Development
   Authority and the Virginia Economic Development Partnership.

Civil Penalties Funds
   Pursuant to the Code of Virginia, Title 45.1, Mines and Mining, Chapter 19, Virginia Coal Surface Mining Control and Reclamation Act of 1979, Section 45.1-246, any permittee who violates
   any permit condition or any other provision of this chapter or the regulations thereunder may be assessed a civil penalty by the Director, except that if such violation leads to the issuance of a
   cessation order, the civil penalty shall be assessed. Such penalty shall not exceed $5,000 for each violation except that if the violation resulted in a personal injury or fatality to any person, then
   the civil penalty shall not exceed $70,000 for each violation. All civil penalties shall be paid into a special fund in the State Treasurer’s office to be used by the Director for enhancing conservation
   and recreational opportunities in the coal-producing counties of the Commonwealth. The Director shall transfer quarterly 50 percent of the fund balance to the Virginia Coalfield Economic
   Development Authority for the purposes of developing infrastructure and improvements at Breaks Interstate Park.

CFO Funds
   The goal of the Virginia Coalfield Economic Development Authority (VCEDA) Communities for Opportunity (CFO) Loan Fund is to establish a revolving loan fund to encourage economic
   development in the coal producing counties of Virginia. Each proposed use of the CFO Loan Fund must have the concurrence of the Director of the Virginia Department of Housing and
   Community Development (VDHCD). Generally, VCEDA and VDHCD have determined that the optimum use of the CFO Loan Fund would be to encourage the development and growth of
   businesses in the VCEDA coal-producing counties where the development and growth of such businesses will create a unique opportunity in a specific community that would not otherwise
   be addressed without financial support from VCEDA. In order to maximize the resources of this program, all projects requesting funding under this program must have a source of matching
   funds sufficient to match every dollar requested from the VCEDA CFO Loan Fund with one dollar from some other source(s).


Proceeds Held - The treasurer may invest and reinvest funds of the Authority pending their need. All monies received by the Authority pursuant to Section 15.2-6009, together with any matching
funds received from state or federal sources, shall be applied and used only in the county or city from which the funds were received, unless the governing body of the county or city consents
to their use in another county or city. Monies received pursuant to Section 58.1-3713.4 may be used at the discretion of the Authority for purposes and projects as determined by the Authority.




                                           Virginia Coalfield Economic Development Authority
                             Statement of Cash Receipts & Disbursements—Year Ended December 31, 2020
                                                                            CASH RECEIPTS                                         CASH DISBURSEMENTS
                                                                                                                          Administrative                                                   Uncommitted
                                                                                                                          & Business Dev.          Project               Balance             Available
 Coal & Gas Funds              Balance 1/1/20            Receipts           Interest Earned       Loans Collections          Expenses           Loans & Grants           12/31/20            Balance
 Buchanan County              $      11,281,303      $        1,021,488     $         130,974      $          52,542     $          247,786     $      6,697,149     $      5,541,372     $        109,748
 Dickenson County                    12,143,208                720,315                160,202                 71,773                182,668              410,809           12,502,021            8,167,353
 Lee County                              239,403                  4,670                  2,353                      -                 3,196              100,000              143,230              123,230
 City of Norton                           40,151                       -                   316                      -                       -             40,000                    467                467
 Russell County                          543,986                 38,985                  5,589               408,982                  6,478              434,910              556,154               85,154
 Scott County                             72,463                  1,206                    923                      -                   340               50,000               24,252               24,252
 Tazewell County                       1,663,254               262,820                 21,082                466,587                 68,447              871,725            1,473,571              887,037
 Wise County                           2,473,108               158,882                 34,607                430,574                 43,326              100,000            2,953,845            2,953,845
 Regional                              5,084,673               278,371                 63,825                397,332                387,934              395,618            5,040,649            3,436,656
 Total Coal & Gas Funds       $      33,541,549      $       2,486,737      $         419,871      $       1,827,790     $          940,175     $      9,100,211     $     28,235,561     $     15,787,742
 Other Funds:
 Tax Credit Funds
     Revolving Loan                 $13,255,044      $         878,112      $         179,789      $         109,010     $                  -   $      4,610,628     $      9,811,327     $      8,322,995
     Workforce                       19,554,867                        -              259,703                       -                       -          2,534,625           17,279,945            6,192,201
 Total Tax Credit Funds       $      32,809,911      $         878,112      $         439,492      $         109,010     $                  -   $      7,145,253     $     27,091,272     $     14,515,196
 Civil Penalties Funds        $          673,714     $         532,978      $            3,389     $                -    $                  -   $        301,905     $        908,176     $        548,645
 CFO Funds                    $          409,496    $                  -    $              185     $          19,719     $                  -   $                -   $        429,400     $            400


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                                        SOUTHWEST VIRGINIA’S e-REGION IS MARKETED BY VCEDA




                                                                                VIRGINIA COALFIELD ECONOMIC DEVELOPMENT AUTHORITY




                                                                  Virginia Coalfield Economic Development Authority
P.O. Box 1060 | Lebanon, Virginia 24266 | 276.889.0381 | www.vceda.us | www.facebook.com/VAeRegion | @VAeRegion


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