Development Opportunity Fund (COF) Transactions, Fourth Quarter of the 2021 Fiscal Year (September 2, 2021)

Summary

A September 2, 2021 letter to the Honorable Janet D. Howell, the Honorable Luke E. Torian and the Honorable Vivian E. Watts documenting transactions of the Commonwealth's Development Opportunity Fund (COF) in the fourth quarter of the 2021 fiscal year, as required by § 2.2-115(G) of the Code of Virginia. It states that $351,432,648 had been appropriated to the Fund over time as of June 30, 2021, and that $1,354,000 was committed in the quarter to assist five projects. Project summaries include CarLotz in the City of Richmond (amount of grant: $700,000) and Modine Manufacturing Co. in Rockbridge County (amount of grant: $194,000).

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“Development Opportunity Fund (COF) Transactions, Fourth Quarter of the 2021 Fiscal Year (September 2, 2021).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-rd409-ea53e57989/, SHA-256 aa3a3fd2ba7abb305f07742a8966a57772d8dad5e1aaccb3995500b1254e4535.

Full text

September 2, 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 fourth quarter of the 2021 fiscal year
as required by § 2.2-115(G) of the Code of Virginia.

As of June 30, 2021, a total of $351,432,648 had been appropriated to the Fund over time. As
of June 30, 2021, the Cardinal Financial System cash balance was $58,740,921, and the
balance available for future commitments totaled $25,393,362. Taking into account COF
preapprovals of $18,973,800 made by the Secretary of Commerce and Trade, however, the
available balance is $6,419,562. Generally, 40% of preapprovals, or $7,589,520, 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 681.

For the fourth quarter of the 2021 fiscal year, ended June 30, 2021, a total of $1,354,000 was
committed from the Opportunity Fund to assist five projects relocating to or expanding in the
state. Total committed job creation of these projects was 406, while committed investment
totaled $33.1 million. Summaries on these projects follow:

1. City of Richmond: CarLotz will expand its corporate headquarters in the City of
Richmond. This project will create 192 new jobs and an investment of $1.5 million
(amount of grant: $700,000; use of grant: workforce training; other grants awarded:
Enterprise Zone Job Creation grant of $668,000, Enterprise Zone Real Property
Investment grant of $8,193; local match: $700,000; anticipated completion date: June
2025; average wage of new jobs: $96,280; prevailing average wage: $68,015). This
project has been announced.
Committee Chair
September 2, 2021
Page 2

2. Rockbridge County: Modine Manufacturing Co., a manufacturer of industrial cooling
systems, will locate a new facility in Rockbridge County. This project will create 60 new
jobs and an investment of $7.0 million (amount of grant: $194,000; use of grant: building
construction; other grants awarded: none; local match: $194,000; anticipated completion
date: March 2026; average wage of new jobs: $47,117; prevailing average wage:
$33,311). This project has been announced.

3. City of Danville: MEP Ltd., a manufacturer of metal and plastic components for the
aerospace and defense industries, will locate a new facility in the City of Danville. This
location will create 45 new jobs and an investment of $6.4 million (amount of grant:
$135,000; use of grant: building construction; other grants awarded: Virginia Jobs
Investment Program grant of $14,400, Enterprise Zone Job Creation grant of $100,000,
Enterprise Zone Real Property Investment grant of $100,000; local match: $422,500;
anticipated completion date: June 2026; average wage of new jobs: $56,078; prevailing
average wage: $38,884). This project has been announced.

4. Pulaski County: Patton Logistics, LLC will expand its distribution center and trucking
hub in Pulaski County. The company will create 63 new jobs and invest $11.0 million
(amount of grant: $225,000; use of grant: building construction; other grants awarded:
Virginia Jobs Investment Program grant of $27,300, Enterprise Zone Job Creation grant
of $153,600, Enterprise Zone Real Property Investment grant of $200,000; local match:
$660,000; anticipated completion date: June 2026; average wage of new jobs: $41,033;
prevailing average wage: $40,424). This project has been announced.

5. Pittsylvania County: Walraven Inc. will locate a new metal fabrication facility in
Pittsylvania County. This project will create 46 new jobs and an investment of $7.2
million (amount of grant: $100,000; use of grant: building improvements and workforce
training; other grants awarded: Enterprise Zone Job Creation grant of $119,200,
Enterprise Zone Real Property Investment grant of $100,000; local match: $321,063;
anticipated completion date: June 2026; average wage of new jobs: $48,913; prevailing
average wage: $37,951). 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.

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