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

Summary

A December 21, 2020 letter from Stephen Moret, President and Chief Executive Officer, to the Honorable Janet D. Howell, the Honorable Luke E. Torian and the Honorable Vivian E. Watts. It documents transactions of the Commonwealth's Development Opportunity Fund (COF) in the first quarter of the 2021 fiscal year, as required by § 2.2-115(G) of the Code of Virginia. The letter states that a total of $352,645,121 had been appropriated to the Fund over time as of September 30, 2020, and that $3,050,000 was committed in the quarter to assist six projects. Project summaries include Acoustical Sheetmetal in the City of Virginia Beach (amount of grant: $750,000) and Torc Robotics in Montgomery County (amount of grant: $800,000).

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“Transactions of the Commonwealth's Development Opportunity Fund, First Quarter of the 2021 Fiscal Year.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-rd4-131f755df0/, SHA-256 a396900655e198ad4d57f36955823777c7c880819a9d5c4fea108a293a6bac8f.

Full text

        December 21, 2020



        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 first quarter of the 2021 fiscal year as
        required by § 2.2-115(G) of the Code of Virginia.

        As of September 30, 2020, a total of $352,645,121 had been appropriated to the Fund over
        time. As of September 30, 2020, the Cardinal Financial System cash balance was $43,960,362,
        and the balance available for future commitments totaled $38,408,911. Taking into account
        COF preapprovals of $24,897,000 made by the Secretary of Commerce and Trade, however,
        the available balance is $13,511,911. Historically, roughly 40% of preapprovals, or $9,958,800,
        do not move forward and the available balance is more likely approximately $23,000,000. Active
        grants awarded since the inception of the Fund total 663.

        For the first quarter of the 2021 fiscal year, ended September 30, 2020, a total of $3,050,000
        was committed from the Opportunity Fund to assist six projects relocating to or expanding in the
        state. Total committed job creation of these projects was 994, while committed investment
        totaled $303.4 million. Summaries on these projects follow:

             1. City of Virginia Beach: Acoustical Sheetmetal, a manufacturer of sound and weather
                proofing for industrial generators, will expand its existing facility in the City of Virginia
                Beach. This project will create 200 new jobs and an investment of $15.8 million (amount
                of grant: $750,000; use of grant: building construction; other grants awarded: Virginia
                Talent Accelerator Program funding of $238,000 (estimated internal costs); local match:
                $1,350,000; anticipated completion date: September 2023; average wage of new jobs:
                $46,781; prevailing average wage: $43,932). This project has been announced.




901 E. Cary Street, Suite 900
Richmond, Virginia 23219
VEDP.org
COF Report – Q1 FY2021
December 21, 2020
Page 2


   2. Montgomery County: Torc Robotics, a developer of autonomous truck technology, will
      expand its existing facility in Montgomery County. This project will create 350 new jobs
      and an investment of $8.5 million (amount of grant: $800,000; use of grant: building
      construction and improvements; other grants awarded: Virginia Economic Development
      Incentive Grant of $3,500,000, Virginia Talent Accelerator Program funding of $387,000
      (estimated internal costs); local match: $800,000; anticipated completion date:
      September 2023; average wage of new jobs: $117,901; prevailing average wage:
      $46,272). This project has been announced.

   3. Not Yet Announced.

   4. Not Yet Announced.

   5. City of Chesapeake: Plasser American, a manufacturer of railway repair and
      maintenance equipment, will expand its existing facility in the City of Chesapeake. This
      project will create 98 new jobs and an investment of $52.6 million (amount of grant:
      $450,000; use of grant: building construction; other grants awarded: Virginia Jobs
      Investment Program grant of $51,000, Rail Industrial Access Program grant of $450,000,
      Port Economic and Infrastructure Development grant of $27,000; local match: $450,000;
      anticipated completion date: September 2025; average wage of new jobs: $50,186;
      prevailing average wage: $44,697). This project has been announced.

   6. Fluvanna County: Silk City, a manufacturer of silk screened apparel, will locate a new
      facility in Fluvanna County. This location will create 93 new jobs and an investment of
      $5.7 million (amount of grant: $70,000; use of grant: building improvements; other grants
      awarded: Virginia Jobs Investment Program grant of $37,100; local match: $70,000;
      anticipated completion date: December 2025; average wage of new jobs: 72 jobs at
      $42,083, 21 jobs at $35,000; prevailing average wage: $42,078). 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.
COF Report – Q1 FY2021
December 21, 2020
Page 3


For the first quarter of the 2021 fiscal year, actual disbursements from the Fund were made to
Augusta County for Hershey, Westmoreland County for Teal-Jones, and Arlington County for
block.one. Actual disbursements totaled $1,325,000.

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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