Quarterly Report on Commonwealth's Development Opportunity Fund (COF), Second Quarter of the 2022 Fiscal Year

Summary

A letter dated January 28, 2022 to the chairs of the Senate Finance and Appropriations Committee, the House Appropriations Committee and the House Finance Committee, headed as a quarterly report on the Commonwealth's Development Opportunity Fund (COF) per § 2.2-115(G). It covers transactions in the second quarter of the 2022 fiscal year. It states that a total of $4,291,952 was committed from the Fund to assist five projects, with committed job creation of 1,074 and committed investment of $156.9 million, and that active grants awarded since the inception of the Fund total 692. Project summaries include TFC Poultry in the City of Winchester and Qualtrics/Clarabridge in Fairfax County.

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January 28, 2022



The Honorable Janet D. Howell                         The Honorable Barry D. Knight
Chair                                                 Chair
Senate Finance and Appropriations Committee           House Appropriations Committee
P.O. Box 396                                          Pocahontas Building
Richmond, Virginia 23218                              900 East Main Street
                                                      Richmond, Virginia 23219
The Honorable Roxann L. Robinson
Chair
House Finance Committee
Pocahontas Building
900 East Main Street
Richmond, Virginia 23219

RE:   Quarterly Report on Commonwealth's Development Opportunity Fund (COF) per
      § 2.2-115(G)

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

As of December 31, 2021, a total of $367,744,873 had been appropriated to the Fund
over time. As of December 31, 2021, the Cardinal Financial System cash balance was
$64,581,083, and the balance available for future commitments totaled $31,980,397.
Taking into account COF preapprovals of $13,017,125 made by the Secretary of
Commerce and Trade, however, the available balance is $18,963,272. Generally, 40%
of preapprovals, or $5,206,850, 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 692.

For the second quarter of the 2022 fiscal year, ended December 31, 2021, a total of
$4,291,952 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 1,074,
while committed investment totaled $156.9 million. Summaries on these projects follow:

   1. Not Yet Announced.
Committee Chair
January 28, 2022
Page 2


   2. Not Yet Announced.

   3. Not Yet Announced.

   4. City of Winchester: TFC Poultry will locate a new poultry processing and
      deboning facility in the City of Winchester. The company will create 111 new jobs
      and invest $31.5 million (amount of grant: $500,000; use of grant: building
      improvements; other grants awarded: Enterprise Zone Job Creation grant of
      $338,600, Enterprise Zone Real Property Investment grant of $200,000,
      Agriculture and Forestry Industries Development grant of $400,000; local match:
      $735,000; anticipated completion date: December 2025; average wage of new
      jobs: $51,315; prevailing average wage: $54,464). This project has been
      announced.

   5. Fairfax County: Qualtrics/Clarabridge, an information technology company, will
      expand its facility in Fairfax County. This project will create 400 new jobs and an
      investment of $15.9 million (amount of grant: $1,440,000; use of grant: building
      improvements; other grants awarded: Virginia Economic Development Incentive
      Grant of $2,000,000; local match: $1,500,000; anticipated completion date:
      December 2026; average wage of new jobs: $157,198; prevailing average wage:
      $96,979). 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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