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

Summary

A letter dated May 6, 2022 from Jason El Koubi, President and Chief Executive Officer, to the Chairs of the Senate Finance and Appropriations Committee, the House Appropriations Committee and the House Finance Committee, reporting on the Commonwealth's Development Opportunity Fund (COF) for the third quarter of the 2022 fiscal year under § 2.2-115(G) of the Code of Virginia. It states that as of March 31, 2022 a total of $367,788,213 had been appropriated to the Fund over time. It reports $7,063,125 committed to assist eight projects, with committed investment of $591.3 million, and summarizes projects including Celadon in the City of Chesapeake and CMA CGM in the City of Norfolk. It states that actual disbursements of $150,000 were made to Pulaski County for Patton Logistics.

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“Quarterly Report on Commonwealth's Development Opportunity Fund (COF), Third Quarter of the 2022 Fiscal Year.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-rd227-655bc29fc8/, SHA-256 f52885aa8b0bdda5935cbf10eb2ef13005396957f35955bd3a850660d3600329.

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DocuSign Envelope ID: CB10B3D1-88A3-478D-8E11-3F4EB5BFD9D4

May 6, 2022

The Honorable Janet D. Howell The Honorable Barry D. Knight
Chair Chair
Senate Finance and Appropriations Committee House Appropriations Committee
P.O. Box 2608 1852 Mill Landing Road
Reston, Virginia 20195 Virginia Beach, Virginia 23457

The Honorable Roxann L. Robinson
Chair
House Finance Committee
P.O. Box 4627
Midlothian, Virginia 23112

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

As of March 31, 2022, a total of $367,788,213 had been appropriated to the Fund over
time. As of March 31, 2022, the Cardinal Financial System cash balance was
$65,124,422, and the balance available for future commitments totaled $26,053,543.
Taking into account COF preapprovals of $10,016,900 made by the Secretary of
Commerce and Trade, however, the available balance is $16,036,643. Generally, 40%
of preapprovals, or $4,006,760, 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 695.

For the third quarter of the 2022 fiscal year, ended March 31, 2022, a total of
$7,063,125 was committed from the Opportunity Fund to assist eight projects relocating
to or expanding in the state. Total committed job creation of these projects was 1,400,
while committed investment totaled $591.3 million. Summaries on these projects follow:

1. City of Chesapeake: Celadon will locate a paperboard recycling and production
facility in the City of Chesapeake. This project will create 210 new jobs and an
investment of $267.0 million (amount of grant: $2,000,000; use of grant: site and
infrastructure improvements; other grants awarded: Virginia Jobs Investment
Program grant of $168,000, Port Economic and Infrastructure Development grant
of $351,000; local match: $2,000,000; anticipated completion date: June 2025;
average wage of new jobs: $61,217; prevailing average wage: $48,824). This
project has been announced.
Committee Chair
May 6, 2022
Page 2

2. Not Yet Announced.

3. City of Norfolk: CMA CGM, a shipping and logistics firm, will expand its North
American headquarters in the City of Norfolk. This expansion will create 265 new
jobs and an investment of $6.0 million (amount of grant: $457,125; use of grant:
site development and construction; other grants awarded: Custom Performance
grant of $9,042,875; local match: $1,800,000; anticipated completion date:
September 2021; average wage of new jobs: $56,713; prevailing average wage:
$61,622). This project has been announced.

4. City of Newport News: East Coast Repair and Fabrication, a provider of metal
fabrication for the maritime industry, will expand its facility in the City of Newport
News. The company will create 332 new jobs and invest $64.4 million (amount of
grant: $1,314,000; use of grant: building construction and road and infrastructure
improvements; other grants awarded: Virginia Jobs Investment Program grant of
$120,600, Enterprise Zone Job Creation grant of $715,800, Enterprise Zone Real
Property Investment grant of $200,000; local match: $1,588,000; anticipated
completion date: December 2025; average wage of new jobs: $51,024; prevailing
average wage: $58,608). This project has been announced and denotes an
increase in the COF grant from an earlier approval.

5. City of Richmond: Intact Technology, a software consulting and managed
services firm, will locate a new facility in the City of Richmond. This project will
create 125 new jobs and an investment of $1.5 million (amount of grant:
$350,000; use of grant: workforce training; other grants awarded: Virginia Jobs
Investment Program grant of $100,000, Enterprise Zone Job Creation grant of
$452,800; local match: $369,808; anticipated completion date: June 2025;
average wage of new jobs: $84,720; prevailing average wage: $71,881). This
project has been announced.
Committee Chair
May 6, 2022
Page 3

6. New Kent County: AutoZone, an automotive parts retail company, will locate a
warehouse, distribution, and import facility in New Kent County. This project will
create 352 jobs and an investment of $185.2 million (amount of grant:
$2,512,000; use of grant: site development and building construction; other
grants awarded: Virginia Jobs Investment Program grant of $221,900,
Transportation Partnership Opportunity Fund grant of $184,731, Economic
Development Access Program grant of $650,000, Port Economic and
Infrastructure Development grant of $500,000; local match: $9,255,000;
anticipated completion date: June 2025; average wage of new jobs: $43,988;
prevailing average wage: $42,605). This project has been announced and
lengthens the performance period from an earlier approval.

7. Not Yet Announced.

8. City of Newport News: Certified Origins, a blender, bottler, and distributor of
imported olive oil, will locate a new facility in the City of Newport News. The
company will create 30 new jobs and invest $24.6 million (amount of grant:
$125,000; use of grant: building construction and wetlands delineation; other
grants awarded: Virginia Jobs Investment Program grant of $22,500, Enterprise
Zone Job Creation grant of $69,700, Enterprise Zone Real Property Investment
grant of $100,000; local match: $537,448; anticipated completion date: June
2025; average wage of new jobs: $41,254; prevailing average wage: $57,820).
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: CB10B3D1-88A3-478D-8E11-3F4EB5BFD9D4

Committee Chair
May 6, 2022
Page 4

For the third quarter of the 2022 fiscal year, actual disbursements from the Fund totaling
$150,000 were made to Pulaski County for Patton Logistics.

Sincerely,

Jason El Koubi
President and Chief Executive Officer

JRE:kme

Enclosures

cc The Honorable Caren Merrick
Secretary of Commerce and Trade

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