Commonwealth's Development Opportunity Fund (COF), Third Quarter of the 2021 Fiscal Year, Virginia

Summary

This is a letter dated July 12, 2021 to the Chairs of the Senate Finance and Appropriations Committee, the House Appropriations Committee and the House Finance Committee, providing documentation of transactions of the Commonwealth's Development Opportunity Fund (COF) for the third quarter of the 2021 fiscal year as required by § 2.2-115(G) of the Code of Virginia. It states that a total of $352,835,630 had been appropriated to the Fund as of March 31, 2021, and that a total of $11,850,000 was committed to assist 15 projects. It describes each project, for example Civica in the City of Petersburg, with 186 new jobs and an investment of $124.6 million (amount of grant: $5,700,000). It states that actual disbursements totaled $380,000.

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“Commonwealth's Development Opportunity Fund (COF), Third Quarter of the 2021 Fiscal Year, Virginia.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-rd345-a924b639ee/, SHA-256 91197b983c8d3e83f16776e0a9b78676a5520cad6ec9e31b51695850b0ae443f.

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DocuSign Envelope ID: 800512B8-15C4-4EB3-96D7-A7087D4415FE

'E.DP
I Vi,9 i nia
E.wnomic
Developent
Partnership

July 12, 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 third quarter of the 2021 fiscal year as
required by§ 2.2-115(G) of the Code of Virginia.

As of March 31, 2021, a total of $352,835,630 had been appropriated to the Fund over time. As
of March 31, 2021, the Cardinal Financial System cash balance was $46,652,937, and the
balance available for future commitments totaled $26,982,004. Taking into account COF
preapprovals of $11,205,800 made by the Secretary of Commerce and Trade, however, the
available balance is $15,776,204. Generally, 40% of preapprovals, or $4,482,320, do not move
forward, and the available balance is more likely approximately $20,000,000. Active grants
awarded since the inception of the Fund total 678.

For the third quarter of the 2021 fiscal year, ended March 31, 2021, a total of $11,850,000 was
committed from the Opportunity Fund to assist 15 projects relocating to or expanding in the
state. Total committed job creation of these projects was 1,887, while committed investment
totaled $532.4 million. Summaries on these projects follow:

1. City of Petersburg: Civica, a manufacturer of pharmaceuticals, will locate a new facility
in the City of Petersburg. This project will create 186 new jobs and an investment of
$124.6 million (amount of grant: $5,700,000; use of grant: building improvements; other
grants awarded: Port Economic and Infrastructure Development grant of $46,000; local
match: $2,900,000 (a partial waiver of the local match was approved for this project);
anticipated completion date: December 2025; average wage of new jobs: $83,978;
prevailing average wage: $41,900). This project has been announced.

901 E. Cary Street. Suite 900
Richmond. Virginia 23219
VEDP.org
DocuSign Envelope ID: 800512B8-15C4-4EB3-96D7-A7087D4415FE

Committee Chair
July 12, 2021
Page 2

2. Henry County: Laminate Technologies, a manufacturer of laminated panel and
fabricated components, will expand its existing facility in Henry County. This project will
create 42 new jobs and an investment of $4.0 million (amount of grant: $100,000; use of
grant: building improvements; other grants awarded: Enterprise Zone Job Creation grant
of $128,000, Enterprise Zone Real Property Investment grant of $40,000, Port
Economic and Infrastructure Development grant of $27,000; local match: $189,000;
anticipated completion date: December 2024; average wage of new jobs: $36,171;
prevailing average wage: $34,616). This project has been announced.

3. Wythe County: STS Group, a manufacturer of components for automotive and truck
cabs, will locate a new facility in Wythe County. This location will create 120 new jobs
and an investment of $39.0 million (amount of grant: $500,000; use of grant: site
improvements and utility extensions; other grants awarded: Enterprise Zone Job
Creation grant of $306,400, Enterprise Zone Real Property Investment grant of
$200,000; local match: $500,000; anticipated completion date: December 2025; average
wage of new jobs: $42,775; prevailing average wage: $34,856). This project has been
announced.

4. Henry County: Crown Holdings, a manufacturer of aluminum cans, will locate a new
facility in Henry County. The company will create 126 new jobs and invest $145.0 million
(amount of grant: $1,000,000; use of grant: building construction and site preparation;
other grants awarded: Virginia Investment Performance grant of $3,000,000, Virginia
Jobs Investment Program grant of $100,800, Enterprise Zone Job Creation grant of
$475,200, Enterprise Zone Real Property Investment grant of $200,000; Port Economic
and Infrastructure Development grant of $105,000; local match: $9,625,000; anticipated
completion date: June 2026; average wage of new jobs: $47,958; prevailing average
wage: $35,012). This project has been announced.

5. City of Richmond: Vytal Studios, a developer and provider of technology-based
educational and training content, will relocate its corporate headquarters to the City of
Richmond. This project will create 155 new jobs and an investment of $6.8 million
(amount of grant: $500,000; use of grant: building improvements; other grants awarded:
Virginia Jobs Investment Program grant of $124,000, Enterprise Zone Job Creation
grant of $541,600, Enterprise Zone Real Property Investment grant of $100,000; local
match: $575,000; anticipated completion date: March 2024; average wage of new jobs:
$73,425; prevailing average wage: $66,643). This project has been announced.

6. City of Norfolk: Breeze Airways will locate a start-up airline in the City of Norfolk. This
location will create 116 new jobs and an investment of $5.2 million (amount of grant:
$400,000; use of grant: workforce training; other grants awarded: Governor's New
Airline Service Incentive Fund grant of $280,000; local match: $1,875,000; anticipated
completion date: March 2024; average wage of new jobs: $55,333; prevailing average
wage: $59,014). This project has been announced.
DocuSign Envelope ID: 800512B8-15C4-4EB3-96D7-A7087D4415FE

Committee Chair
July 12, 2021
Page 3

7. Scott County: Tempur Sealy International, a manufacturer of foam mattresses and
pillows, will expand its existing facility in Scott County. This project will create 25 new
jobs and an investment of $16. 7 million (amount of grant: $110,000; use of grant:
building construction; other grants awarded: Virginia Jobs Investment Program grant of
$17,500, Enterprise Zone Job Creation grant of $84,000, Enterprise Zone Real Property
Investment grant of $200,000, Port Economic and Infrastructure Development grant of
$25,000; local match: $383,520; anticipated completion date: March 2023; average
wage of new jobs: $33,300; prevailing average wage: $33,955). This project has been
announced.

8. City of Richmond: Aditxt Therapeutics will locate its corporate headquarters and
immune monitoring center in the City of Richmond. This location will create 347 new
jobs and an investment of $31.5 million (amount of grant: $1,300,000; use of grant:
building improvements and workforce training; other grants awarded: Enterprise Zone
Job Creation grant of $1,223,200, Enterprise Zone Real Property Investment grant of
$41,985; local match: $1,302,400; anticipated completion date: September 2024;
average wage of new jobs: $78,399; prevailing average wage: $66,643). This project
has been announced.

9. City of Petersburg: AMPAC Fine Chemicals, a manufacturer of active pharmaceutical
ingredients, will expand its existing facility in the City of Petersburg. The company will
create 156 new jobs and invest $25.0 million (amount of grant: $640,000; use of grant:
building improvements; other grants awarded: Virginia Investment Performance grant of
$250,000; local match: $570,000 (a partial waiver of the local match was approved for
this project); anticipated completion date: March 2024; average wage of new jobs:
$73,269; prevailing average wage: $41,841). This project has been announced.

10. Pittsylvania County: J&J Truck Sales will expand its automotive body, paint, and interior
repair and maintenance facility in Pittsylvania County. This expansion will create 27 new
jobs and an investment of $5.2 million (amount of grant: $50,000; use of grant: site
preparation and building construction; other grants awarded: Enterprise Zone Job
Creation grant of $79,200, Enterprise Zone Real Property Investment grant of $200,000;
local match: $118,338; anticipated completion date: March 2025; average wage of new
jobs: $34,166; prevailing average wage: $37,402). This project has been announced.

11. Prince William County: SES Americom will expand its corporate headquarters and
sales and support operations in Prince William County. This expansion will create 201
new jobs and an investment of $17.0 million (amount of grant: $500,000; use of grant:
building improvements; other grants awarded: Virginia Jobs Investment Program grant
of $105,750; local match: $500,000; anticipated completion date: September 2026;
average wage of new jobs: $128,456; prevailing average wage: $52,123). This project
has been announced.
Committee Chair
July 12, 2021
Page 4

12. City of Virginia Beach: Sunny Farms will locate a start-up greenhouse operation in the
City of Virginia Beach. This location will create 155 new jobs and an investment of $59.6
million (amount of grant: $600,000; use of grant: site development and building
construction; other grants awarded: Agriculture and Forestry Industries Incentive grant of
$100,000; local match: $600,000; anticipated completion date: March 2024; average
wage of new jobs: $51,516; prevailing average wage: $44,729). This project has been
announced.

13. Loudoun County: Zasti will locate its corporate headquarters in Loudoun County. The
company uses proprietary state-of-the-art artificial intelligence and innovative MedTech
technologies to create smart and low-carbon healthcare solutions. This location will
create 60 new jobs and an investment of $5.9 million (amount of grant: $150,000; use of
grant: building improvements and workforce training; other grants awarded: Virginia Jobs
Investment Program grant of $45,000; local match: $150,000; anticipated completion
date: June 2024; average wage of new jobs: $71,250; prevailing average wage:
$68,969). This project has been announced.

14. Not Yet Announced.

15. City of Radford: Oransi, a manufacturer of air purification equipment, will locate a new
facility in the City of Radford. The company will create 101 new jobs and invest $5.6
million (amount of grant: $50,000; use of grant: building improvements; other grants
awarded: Virginia Jobs Investment Program grant of $70,700, Enterprise Zone Job
Creation grant of $360,000, Enterprise Zone Real Property Investment grant of
$100,000; Port Economic and Infrastructure Development grant of $31,000; local match:
$50,000; anticipated completion date: September 2024; average wage of new jobs:
$39,556; prevailing average wage: $45,838). 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.
DocuSign Envelope ID: 80051288-15C4-4EB3-9607-A708704415FE

Committee Chair
July 12, 2021
Page 5

For the third quarter of the 2021 fiscal year, actual disbursements from the Fund were made to
Russell County for Plasticap and Augusta County for Flow Alkaline Spring Water. Actual
disbursements totaled $380,000.

Sincerely,

G;:·m
4BQ8D103Q.F2405.f
S tepnen IVlore
President and Chief Executive Officer

SM:kme

Enclosures

cc The Honorable Brian Ball
Secretary of Commerce and Trade

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