Development Opportunity Fund (COF) Transactions, First Quarter of the 2022 Fiscal Year (January 12, 2022)

Summary

A letter dated January 12, 2022 addressed to the chairs of the Senate Finance and Appropriations Committee, the House Appropriations Committee and the House Finance Committee, documenting transactions of the Commonwealth's Development Opportunity Fund (COF) in the first quarter of the 2022 fiscal year, as required by § 2.2-115(G) of the Code of Virginia. It states that $11,222,800 was committed from the fund in that quarter, with committed job creation of 1,879 and committed investment of $757.4 million. It states that active grants awarded since the fund's inception total 690. Project summaries follow, and the signature block names Jason El Koubi, EVP and Interim President & CEO.

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“Development Opportunity Fund (COF) Transactions, First Quarter of the 2022 Fiscal Year (January 12, 2022).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-rd103-9c43ad5d3b/, SHA-256 c5b4364c18ac53e9f38781df4a7627fcb5f139fac4309715adbe6bdf2759482c.

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DocuSign Envelope ID: 554F05A5-F03D-4A4B-82CA-8A82202740EA

January 12, 2022

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 2022 fiscal year as required by § 2.2-115(G) of the Code of Virginia.

As of September 30, 2021, a total of $367,682,648 had been appropriated to the Fund
over time. As of September 30, 2021, the Cardinal Financial System cash balance was
$60,526,107, and the balance available for future commitments totaled $33,372,124.
Taking into account COF preapprovals of $14,626,625 made by the Secretary of
Commerce and Trade, however, the available balance is $18,745,499. Generally, 40%
of preapprovals, or $5,850,650, do not move forward, and the available balance is more
likely approximately $24,000,000. Active grants awarded since the inception of the
Fund total 690.

For the first quarter of the 2022 fiscal year, ended September 30, 2021, a total of
$11,222,800 was committed from the Opportunity Fund to assist 12 projects relocating
to or expanding in the state. Total committed job creation of these projects was 1,879,
while committed investment totaled $757.4 million. Summaries on these projects follow:

1. Rockingham County: Veronesi Holding S.p.A., a manufacturer and processor
of Italian cured meats, will locate a new facility in Rockingham County. This
project will create 161 new jobs and an investment of $105.3 million (amount of
grant: $3,816,800; use of grant: building construction; other grants awarded:
Virginia Jobs Investment Program grant of $120,750; local match: $6,114,125;
anticipated completion date: June 2025; average wage of new jobs: 58 at
$44,483 and 103 at $35,000; prevailing average wage: $44,424). This project
has been announced.
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Committee Chair
January 12, 2022
Page 2

2. City of Newport News: Aery Aviation will expand its avionics retrofitting and
modification facility in the City of Newport News. This expansion will create 211
new jobs and an investment of $15.3 million (amount of grant: $280,000; use of
grant: building construction; other grants awarded: Virginia Jobs Investment
Program grant of $168,800, Enterprise Zone Job Creation grant of $788,600,
Enterprise Zone Real Property Investment grant of $200,000; local match:
$280,000; anticipated completion date: December 2024; average wage of new
jobs: $80,073; prevailing average wage: $57,820). This project has been
announced.

3. Augusta County: Cava Group LLC, a manufacturer of dips, spreads, and
sauces, will locate a new facility in Augusta County. This location will create 52
new jobs and an investment of $37.6 million (amount of grant: $200,000; use of
grant: site development; other grants awarded: Virginia Investment Performance
grant of $300,000; local match: $600,000; anticipated completion date:
December 2026; average wage of new jobs: $47,235; prevailing average wage:
$47,222). This project has been announced.

4. City of Danville: Kegerreis Digital Marketing will relocate its headquarters to the
City of Danville. Kegerreis is an outdoor marketing firm specializing in digital
marketing and billboards. The company will create 72 new jobs and invest $1.7
million (amount of grant: $160,500; use of grant: building improvements; other
grants awarded: Virginia Jobs Investment Program grant of $29,400, Enterprise
Zone Job Creation grant of $184,000, Enterprise Zone Real Property Investment
grant of $100,000; local match: $206,000; anticipated completion date:
December 2025; average wage of new jobs: $60,484; prevailing average wage:
$38,884). This project has been announced.

5. Henry County: Schock GmbH, a manufacturer of sinks, will locate a new facility
in Henry County. This project will create 355 new jobs and an investment of
$85.0 million (amount of grant: $1,700,000; use of grant: building improvements;
other grants awarded: Enterprise Zone Job Creation grant of $233,800,
Enterprise Zone Real Property Investment grant of $400,000; local match:
$6,600,000; anticipated completion date: December 2029; average wage of new
jobs: $42,805; prevailing average wage: $36,399). This project has been
announced.

6. Pittsylvania County: Tyson Foods, Inc., a manufacturer of ready-to-eat chicken
products, will locate a new facility in Pittsylvania County. This project will create
376 new jobs and an investment of $295.5 million (amount of grant: $3,048,000;
use of grant: site preparation and utility extension; other grants awarded: Virginia
Investment Performance grant of $3,000,000, Enterprise Zone Job Creation
grant of $486,300, Enterprise Zone Real Property Investment grant of $200,000,
Agriculture and Forestry Industries Development grant of $500,000; local match:
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Committee Chair
January 12, 2022
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$21,790,500; anticipated completion date: December 2024; average wage of
new jobs: $41,668; prevailing average wage: $38,882). Tyson received approval
from the Major Employment and Investment Commission on August 18, 2021,
since total state incentives exceeded $10 million. This project has been
announced.

7. Albemarle County: Bonumose Inc. will expand its production and distribution
facility for plant-based sugar alternatives in Albemarle County. This location will
create 64 new jobs and an investment of $27.7 million (amount of grant:
$256,000; use of grant: building improvements; other grants awarded: Virginia
Investment Performance grant of $300,000, Virginia Jobs Investment Program
grant of $44,800, Port Economic and Infrastructure Development grant of
$35,000; local match: $256,000; anticipated completion date: December 2026;
average wage of new jobs: $76,563; prevailing average wage: $59,325). This
project has been announced.

8. Prince George County: Service Center Metals, a manufacturer of aluminum
extrusion and billets, will expand its existing facility in Prince George County.
This expansion will create 94 new jobs and an investment of $101.7 million
(amount of grant: $350,000; use of grant: building construction; other grants
awarded: Virginia Investment Performance grant of $900,000, Virginia Jobs
Investment Program grant of $75,200, Enterprise Zone Job Creation grant of
$360,000, Enterprise Zone Real Property Investment grant of $200,000; local
match: $1,800,000; anticipated completion date: March 2025; average wage of
new jobs: $74,968; prevailing average wage: $57,155). This project has been
announced.

9. City of Norton: EarthLink LLC will locate a new customer service call center in
the City of Norton. The company will create 285 new jobs and invest $5.4 million
(amount of grant: $686,500 (COF New Company Incentive Program [NCIP]
grant); use of grant: not applicable for COF NCIP grants; other grants awarded:
Virginia Jobs Investment Program grant of $142,500, Enterprise Zone Job
Creation grant of $180,000; local match: not required for COF NCIP grants;
anticipated completion date: January 2025; average wage of new jobs: $33,751;
prevailing average wage: $41,115). This project has been announced.

10. Campbell County: BWX Technologies, Inc. will expand its Campbell County
facility to include a new innovation campus and client visitor center to showcase
company activity and products. This expansion will create 97 new jobs and an
investment of $65.0 million (amount of grant: $400,000; use of grant: building
improvements; other grants awarded: Virginia Investment Performance grant of
$700,000; local match: $600,000; anticipated completion date: December 2026;
average wage of new jobs: $116,591; prevailing average wage: $50,171). BWX
Technologies received approval from the Major Employment and Investment
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Committee Chair
January 12, 2022
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Commission on August 18, 2021, due to the relocation of jobs within the state.
This project has been announced.

11. Scott County: VFP, Inc., a manufacturer of prefabricated metal buildings and
components, will expand its existing facility in Scott County. This project will
create 30 new jobs and invest $7.2 million (amount of grant: $100,000; use of
grant: building construction; other grants awarded: Virginia Jobs Investment
Program grant of $21,000, Enterprise Zone Real Property Investment grant of
$200,000; local match: $200,200; anticipated completion date: December 2024;
average wage of new jobs: $34,715; prevailing average wage: $36,100). This
project has been announced.

12. Henry County: VF Corporation, a manufacturer of apparel, footwear, and
accessories, will expand its existing facility in Henry County. The company will
create 82 new jobs and invest $10.2 million (amount of grant: $225,000; use of
grant: worker recruitment and training; other grants awarded: Virginia Jobs
Investment Program grant of $57,400, Enterprise Zone Job Creation grant of
$209,000; local match: $531,021; anticipated completion date: December 2024;
average wage of new jobs: $33,823; prevailing average wage: $35,369). 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 first quarter of the 2022 fiscal year, no actual disbursements were made from
the Fund.

Sincerely,

Jason El Koubi
EVP and Interim President & CEO

JRE:kme

Enclosures

cc The Honorable Brian Ball
Secretary of Commerce and Trade

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