Transactions of the Commonwealth's Development Opportunity Fund, Second Quarter of the 2021 Fiscal Year

Summary

In this February 26, 2021 letter to the chairs of the Senate Finance and Appropriations Committee, House Appropriations Committee and House Finance Committee, Stephen Moret, President and Chief Executive Officer, documents transactions of the Commonwealth's Development Opportunity Fund for the second quarter of the 2021 fiscal year. It states that a total of $352,759,163 had been appropriated to the Fund as of December 31, 2020. For that quarter, $3,374,482 was committed to assist seven projects, with total committed job creation of 1,336 and committed investment of $192.2 million. Actual disbursements totaled $725,000, made to Henrico County for PPD and the City of Richmond for Thomson Reuters.

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“Transactions of the Commonwealth's Development Opportunity Fund, Second Quarter of the 2021 Fiscal Year.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-rd139-148fb30b15/, SHA-256 bb7b19509e62e777001db9a32f93e463031479f9571cc6cd64fe05af88df49b2.

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DocuSign Envelope ID: 1C2B6657-275A-4A8C-AD01-6B0694150400

February 26, 2021

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

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

Dear Chairs:

I am writing to provide documentation of the transactions of the Commonwealth’s Development
Opportunity Fund (COF) which have occurred during the second quarter of the 2021 fiscal year
as required by § 2.2-115(G) of the Code of Virginia.

As of December 31, 2020, a total of $352,759,163 had been appropriated to the Fund over
time. As of December 31, 2020, the Cardinal Financial System cash balance was $44,028,717,
and the balance available for future commitments totaled $35,827,784. Taking into account
COF preapprovals of $32,061,800 made by the Secretary of Commerce and Trade, however,
the available balance is $3,765,984. Generally, 40% of preapprovals, or $10,304,720, do not
move forward, and the available balance is more likely approximately $14,000,000. Active
grants awarded since the inception of the Fund total 670.

For the second quarter of the 2021 fiscal year, ended December 31, 2020, a total of $3,374,482
was committed from the Opportunity Fund to assist seven projects relocating to or expanding in
the state. Total committed job creation of these projects was 1,336, while committed investment
totaled $192.2 million. Summaries on these projects follow:

1. Pittsylvania County: Ison Furniture, an assembler and manufacturer of upholstered
furniture, will locate a new facility in Pittsylvania County. This project will create 150 new
jobs and an investment of $3.5 million (amount of grant: $186,500; use of grant: building
improvements; other grants awarded: Virginia Jobs Investment Program grant of
$105,000; local match: $186,500; anticipated completion date: December 2023; average
wage of new jobs: $38,000; prevailing average wage: $37,197). This project has been
announced.
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Committee Chair
February 26, 2021
Page 2

2. Grayson County: Grayson Natural Farms, a producer of smoked beef snacks, will
expand its existing facility in Grayson County. This project will create 40 new jobs and
an investment of $1.5 million (amount of grant: $50,000; use of grant: building
construction and utility improvements; other grants awarded: Virginia Jobs Investment
Program grant of $28,000, Enterprise Zone Job Creation grant of $116,500, Enterprise
Zone Real Property Investment grant of $50,000, Port Economic and Infrastructure
Development grant of $28,000); local match: $12,000 (a partial waiver of the local match
was approved for this project); anticipated completion date: December 2025; average
wage of new jobs: $31,706; prevailing average wage: $29,301). This project has been
announced.

3. City of Harrisonburg: Shenandoah Valley Organic will expand its organic poultry
processing facility in the City of Harrisonburg. This expansion will create 110 new jobs
and an investment of $64.3 million (amount of grant: $500,000; use of grant: building
construction; other grants awarded: Virginia Jobs Investment Program grant of $82,500,
Virginia Investment Performance grant of $800,000, Agriculture and Forestry Industries
grant of $500,000; local match: $800,000; anticipated completion date: December 2024;
average wage of new jobs: $44,300; prevailing average wage: $40,895). This project
has been announced.

4. Warren County: Silent Falcon UAS Technologies, a manufacturer of small Unmanned
Aircraft Systems, components, and sensors, will locate a new facility in Warren County.
The company will create 249 new jobs and invest $6.0 million (amount of grant:
$161,482; use of grant: building construction; other grants awarded: Virginia Jobs
Investment Program grant of $224,100; local match: $186,482; anticipated completion
date: December 2023; average wage of new jobs: $84,096; prevailing average wage:
$40,814). This project has been announced.

5. Scott County: eHealth Technologies, a provider of medical record retrieval and
organization services, will locate a new facility in Scott County. This project will create
160 new jobs and an investment of $.4 million (amount of grant: $626,500 COF New
Company Incentive Program (NCIP); use of grant: not applicable for NCIP; other grants
awarded: Enterprise Zone Job Creation grant of $502,400; local match: not required for
NCIP; anticipated completion date: December 2025; average wage of new jobs:
$36,567; prevailing average wage: $33,941). This project has been announced.

6. Stafford County: Exel, a contract logistics provider, will locate a regional distribution
center in Stafford County. This location will create 577 new jobs and an investment of
$72.0 million (amount of grant: $1,700,000; use of grant: building construction and site
improvements; other grants awarded: Virginia Jobs Investment Program grant of
$288,500, Transportation Partnership Opportunity Fund grant of $1,300,000; local
match: $1,700,000; anticipated completion date: December 2023; average wage of new
jobs: 380 jobs at $53,792, 197 jobs at $31,158; prevailing average wage: $53,734). This
project has been announced.
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Committee Chair
February 26, 2021
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7. Pittsylvania County: Intertape Polymer Group, a manufacturer of pressure sensitive
tapes, will expand its existing facility in Pittsylvania County. This project will create 50
new jobs and an investment of $44.5 million (amount of grant: $150,000; use of grant:
building construction; other grants awarded: Virginia Jobs Investment Program grant of
$40,000, Virginia Investment Performance grant of $300,000, Enterprise Zone Job
Creation grant of $166,400, Enterprise Zone Real Property Investment grant of
$100,000); local match: $671,365; anticipated completion date: December 2024;
average wage of new jobs: $38,000; prevailing average wage: $37,350). This project
has been announced.

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

For the second quarter of the 2021 fiscal year, actual disbursements from the Fund were made
to Henrico County for PPD and the City of Richmond for Thomson Reuters. Actual
disbursements totaled $725,000.

Sincerely,

Stephen Moret
President and Chief Executive Officer

SM:kme

Enclosures

cc The Honorable Brian Ball
Secretary of Commerce and Trade

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