FY2023 Operational Plan, Virginia Economic Development Partnership Authority
Summary
The executive summary of the FY2023 Operational Plan of the Virginia Economic Development Partnership Authority (VEDP), dated July 18, 2022. A notice states that the Authority designates all portions of the Operational Plan other than the Executive Summary as protected from disclosure under the Virginia Freedom of Information Act. The summary says the plan was prepared under Code of Virginia, § 2.2-2237.1 D.2. and contains 11 major initiatives derived from the Strategic Plan for FY21-FY25. It describes the VEDP divisions, the Board of Directors, and five transformational goals reached through 14 strategies.
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“FY2023 Operational Plan, Virginia Economic Development Partnership Authority.”
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In accordance with Section 2.2-3705.7 (33) of the
Code of Virginia of 1950, as amended, the
Virginia Economic Development Partnership
Authority hereby designates all portions of this
Operational Plan to be protected from disclosure
under the Virginia Freedom of Information Act,
except for the Executive Summary.
FY2023 OPERATIONAL
PLAN: EXECUTIVE
SUMMARY
American Woodmark, Frederick County
July 18, 2022
TABLE OF CONTENTS
Introduction to and overview of the FY23 Operational Plan 3
Major Initiatives 16
Appendix: Performance Metrics 18
Appendix: FY 23 Budget Summary 20
Appendix: Components of the FY23 Operational Plan Required by the Code of Virginia 23
2
INTRODUCTION
▪ The Virginia Economic Development Partnership Authority (VEDP) was established by the General
Assembly in 1995 (Code of Virginia, § 2.2-2234 et seq.)
▪ VEDP is given broad powers in its enabling legislation “…to encourage, stimulate and support the
development and expansion of the economy of the Commonwealth.”
▪ This FY23 Operational Plan has been prepared in accordance with Code of Virginia, § 2.2-2237.1 D.2.
and the Virginia Budget, which require that an Operational Plan be completed and submitted to the
Chairmen of the House Appropriations and Senate Finance and Appropriations Committees and to the
Director of the Department of Planning and Budget by November 1, 2022
▪ This FY23 Operational Plan marks the fifth full year of implementation of the Strategic Plan for
Economic Development of the Commonwealth of Virginia (FY19-FY23), approved by the VEDP Board
of Directors in late 2017, pursuant to the Code of Virginia, §2.2-2237.1. The biennial update of the
Strategic Plan began in January 2020 and was concluded in late 2020 due to the COVID-19 pandemic
▪ The 11 major initiatives contained in this FY23 Operational Plan are largely derived from the initiatives
outlined in the updated Strategic Plan for Economic Development of the Commonwealth of
Virginia (FY21-FY25)
3
THE OPERATIONAL PLAN GUIDES VEDP’S ACTIONS THROUGHOUT
THE YEAR
This FY23 Operational Plan is based primarily upon the goals, strategies, and initiatives outlined
in the updated five-year Strategic Plan (FY21-FY25)
▪ The annual plan is the result of a VEDP-wide effort that identified improvement areas and new ideas
for the coming year and translated those ideas into a plan for action
The goals of this FY23 Operational Plan include:
▪ Build clarity and alignment regarding VEDP’s strategic direction
▪ Outline major priorities with deliverables and deadlines for the year
▪ Ensure improved accountability for performance
▪ Deliver upon numerous improvement opportunities identified by VEDP team members
Progress against this Operational Plan* will be reviewed throughout the year through the
following activities:
▪ Regular updates at senior team meetings
▪ Regular internal meetings of each VEDP division (e.g., Business Investment, Talent Solutions,
International Trade)
▪ Quarterly update meetings between each division head (e.g., Vice Presidents and Managing
Directors) and their respective reports
▪ Ongoing updates to the Operational Plan tracker
*The implementation timelines outlined in the Operational Plan are subject to adjustment based on VEDP project
activities and/or changes in priorities
4
VEDP ORGANIZATIONAL OVERVIEW (1 OF 2)
Division Overview
Business Investment Collaborates with regional and local partners to identify and convert high-potential leads and
prospects into project opportunities and decisions for Virginia and supports the retention and
growth of existing Virginia employers
Marketing and Manages Virginia’s business brand (and VEDP’s) and builds awareness of the
Communications Commonwealth’s advantages among C-level executives nationally and globally
Research Creates customized, relevant, and insightful analysis and data visualizations that promote a
common understanding of Virginia’s full value proposition, with a central focus on fast-turn,
high-priority, tailored client service (e.g., RFP responses, site recommendations)
Incentives Reviews, vets, tracks, and coordinates economic development incentives administered by
VEDP and those offered by the Commonwealth or a locality in conjunction with VEDP
Talent Solutions Supports the human capital needs of new and expanding businesses by delivering world-
class, customized workforce recruitment and training solutions in partnership with the Virginia
Community College System through the Virginia Talent Accelerator Program; manages the
Virginia Jobs Investment Program (VJIP); conducts existing business outreach; and
collaborates with VOEE to assist with talent initiatives
International Trade Supports growth and expansion of Virginia’s local firms seeking international markets and
optimizes international supply chains through the administration of targeted programs to
increase managerial capabilities and improve networks in key countries and regions
External Affairs Coordinates and manages all legislative and budgetary initiatives; cultivates and manages
relationships with local, state, and federal elected officials, as well as relationships with
VEDP’s economic development partners across the Commonwealth; and convenes work
groups and oversees special initiatives regarding policy development and program
implementation
5
VEDP ORGANIZATIONAL OVERVIEW (2 OF 2)
Division Overview
Economic Develops medium-to-long-term strategies to improve the foundations for state, regional, and
Competitiveness local economic growth
Real Estate Solutions Supports business attraction and expansion efforts by strategically developing a
comprehensive statewide portfolio of project-ready sites and buildings and engaging
economic development projects to address real estate needs
Virginia Office of Provides a unified, consistent source of analysis for policy development and implementation
Education Economics related to talent development; offers resources and expertise related to education and labor
market alignment
Information Plans, implements, provides security for, and supports VEDP's technology platforms
Technology
Fiscal and Support Manages all accounting and budget-related work and provides facilities, fleet management,
Services and procurement services
Human Resources Manages employee lifecycle, talent management, talent acquisition, retention, performance
management, employee engagement, learning and development, benefits, and total rewards
Legal Services Advises on legal aspects of legislation, rules, and contracts; manages legal activities for
VEDP; drafts incentive agreements and NDAs; and responds to FOIA requests
Internal Audit Performs periodic audits on operations, accounts, and transactions and reports findings to
the VEDP Board
6
President & CEO
J. El Koubi
Chief of Staff
Nicole David
Executive Vice
President
Vacant
General Counsel, SVP, Virginia Talent Executive Director, SVP, International SVP, Policy & SVP, Business
Legal Accelerator Program VOEE Trade & CAO Strategic Partnerships Investment
L. Wallmeyer M. Grundmann H. McKay S. Agee C. Morton V. Barnett
International VP, External VP, Business VP, Incentives
Trade Affairs Investment Vacant
S. Agee Vacant K. Goodwin
VP, Reg. Talent
VP, Human VP, Marketing &
Solutions/ Bus.
Resources Communications
Outreach
Vacant L. Melançon
Tim Stuller
VP, Information VP, Economic VP, Research
Technology Competitiveness S. Hartka
Vacant D. Devan
Controller, VP, Real Estate
Fiscal Solutions
B. Grenell M. Dreiling Divisions report to SVP, Business
Investment until EVP is no longer vacant
Current as of July 18, 2022 7
VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP BOARD OF
DIRECTORS – FY23
The Honorable Caren Merrick, Vice Chair William “Bill” H. Hayter
Secretary of Commerce and Trade, Commonwealth of Virginia, Retired President and CEO, First Bank & Trust Co.
Ex Officio Member
Nancy Howell Agee April Kees
Chair, GO Virginia, Ex Officio Member Director, Virginia Senate Finance and Appropriations Committee,
Ex Officio Member
Carrie Hileman Chenery Pace Lochte
Principal, Valley Pike Partners Assistant Vice President for Economic Development, University of
Virginia
C. Daniel Clemente Anne Oman
Chairman and Chief Executive Officer, Clemente Development Director, Virginia House of Delegates Appropriations Committee,
Company, Inc. Ex Officio Member
Mimi Rainero Coles Marianne Radcliff
Marketing and Business Development Vice President, Permatile President, Kemper Consulting, Inc.
Concrete Products Company
The Honorable Stephen Cummings Xavier R. Richardson
Secretary of Finance, Commonwealth of Virginia, Ex Officio Executive Vice President, Corporate Development and Community
Member Benefit, Mary Washington Healthcare President, Mary Washington
Hospital and Stafford Hospital Foundations
Stephen A. Edwards William D. Sessoms, Jr.
CEO and Executive Director, The Port of Virginia, Ex Officio Executive Vice President, TowneBank
Member
Richard “Rick” O. Harrell, III Steven Stone
President (retired), R.O. Harrell Inc Principal, Offit Kurman, Attorneys At Law
Current as of July 18, 2022; the position of Board Chair is vacant as of this date and will be selected at the next Board
meeting in December 2022 8
OVERVIEW OF THE STRATEGIC PLAN FOR ECONOMIC
DEVELOPMENT OF THE COMMONWEALTH OF VIRGINIA (FY21-25)
▪ On December 1, 2017, VEDP produced its Strategic Plan for Economic Development of the
Commonwealth in accordance with § 2.2-2237.1 of the Code of Virginia
▪ As required by Code, the biennial update to the Strategic Plan for Economic Development of the
Commonwealth of Virginia began in January 2020 but was paused throughout the spring and summer
as the world’s attention shifted to confronting the COVID-19 pandemic. The update process was
restarted and concluded in late 2020
▪ As required by Code, the Strategic Plan identifies specific goals and objectives for VEDP, as well as
quantifiable metrics and performance measures for each goal and objective. The Plan also includes a
systematic assessment of how VEDP can best add value in carrying out each of its statutory powers
and duties
▪ Key economic development partners were integrally involved in the strategic planning process,
including state, regional, and local economic development agencies and organizations and
international trade organizations
▪ The Strategic Plan now contains an updated set of 35 initiatives (down from 40 in the original plan),
which include three new initiatives developed in response to the pandemic
▪ There is considerable alignment between this FY23 Operational Plan and VEDP’s Strategic Plan as
this year’s Operational Plan marks the fifth full year of Strategic Plan implementation. The 11 major
initiatives contained in this FY23 Operational Plan are derived from the initiatives outlined in the
Strategic Plan for FY21-FY25
9
FRAMEWORK FOR IMPLEMENTING VEDP’S STRATEGIC PLAN
▪ Economic development is a combination of activities intended to create jobs, increase wages, and/or
achieve industry diversification
‒ VEDP will primarily focus on growing the Commonwealth’s economy and bringing the greatest
number of high-quality jobs to Virginia’s regions
‒ VEDP will typically avoid actively recommending incentives or investments in projects that grow
a region, community, or business at the expense of other regions, communities, or businesses
▪ Creating a new Virginia economy requires aggressive, focused leadership from VEDP in three broad
areas of activity:
‒ “Business development” aims to influence the investment and location decisions of corporate
leaders (e.g., marketing, business attraction and recruitment)
‒ “Product development” aims to increase Virginia’s attractiveness for business investment and
economic opportunity (e.g., public policy efforts, community development, site development)
‒ “Trade development” aims to encourage exports of Virginia products and services
▪ Much of economic development is done at the regional or local level (e.g., site selection process,
marketing leverage, business environment, economic relationships)
▪ VEDP will strive to make its incentive and investment recommendations based on public return-on-
investment (ROI) analyses
10
IMPLEMENTATION DETAILS OF STRATEGIC PLAN
▪ The updated Strategic Plan for Economic Development of the Commonwealth of Virginia adopted by
the VEDP Board is a five-year plan (FY21-FY25), implementation of which began July 1, 2021
▪ The Strategic Plan includes five transformational goals, the achievement of which requires the
implementation of 14 strategies
▪ Some of the initiatives in the Strategic Plan will require new funding to implement
▪ VEDP’s FY23 Operational Plan is based on the initiatives outlined in the Strategic Plan and includes
initiatives developed in response to the economic impacts of the COVID-19 pandemic
11
TRANSFORMATIONAL GOALS FOR THE COMMONWEALTH AND VEDP
Transformational Goal Description
1. Robust state job growth Position Virginia to achieve a growth rate (measured by employment
and median earned income of workers) among that of the top 5-10
states in the U.S.
2. Every region wins Ensure that every region participates in the growth of the
Commonwealth (i.e., all with positive growth in employment and
median earned income of workers)
3. Best state for business Restore Virginia to its previous leadership position near the top of the
national business climate rankings (i.e., average position among the
top 3-5 states)
4. Top state EDO Reestablish VEDP as one of America’s most effective state economic
development organizations (principally to better enable
accomplishment of the top three transformational goals)
5. Super collaborator Exhibit collaboration and coordination as hallmarks of VEDP (i.e., place
a central focus on the “P” in VEDP)
12
THE STRATEGIC PLAN IDENTIFIES 14 STRATEGIES TO BE
IMPLEMENTED OVER A 5-7 YEAR PERIOD, SUBJECT TO FUNDING
Enhance VA's economic Cultivate target industry growth
competitiveness Enhance VEDP’s capabilities clusters
By improving Virginia’s “product” – its By improving VEDP’s abilities to develop By improving VEDP’s capabilities and
human and physical capital – Virginia will and execute economic development enhancing VA’s economic
continue to be the top state for business strategies and programs, Virginia will be competitiveness, Virginia will be better
and a top place to call home well-positioned to compete now, and in positioned to compete and win projects
the future in target clusters
Specific strategies:
Specific strategies:
Specific strategies:
1. Strengthen Virginia’s human capital
development engine 6. Cultivate world-class execution at
VEDP 10. Push new boundaries as a U.S.
2. Assemble an ample, strategic leader in information technology
portfolio of project-ready sites and 7. Implement robust
marketing/branding, lead 11. Assemble a world-class transportation
buildings across Virginia
generation, and site consultant and logistics hub
3. Rigorously assess and steadily cultivation programs
12. Position Virginia’s manufacturing base
improve Virginia’s state, regional,
8. Strengthen and expand business to be future-ready
and local economic
competitiveness and international trade
13. Create business services and
development programs
operations centers of excellence (e.g.,
4. Leverage public-private
9. Become a national leader in HQs)
partnerships to strengthen
Virginia’s digital infrastructure (i.e., incentives administration
14. Capitalize on Virginia’s unique assets
broadband) to become a leader in promising
disruptive technologies
5. Place a special focus on achieving
growth in Virginia’s rural regions
and small metros
13
PROGRESS HAS BEEN MADE ON ALL FIVE TRANSFORMATIONAL
GOALS, BUT MUCH WORK REMAINS TO FULLY ACHIEVE THEM
Transformational Goal Description Outlook
1. Robust state job growth Position Virginia to achieve a growth rate (measured by employment and
median earned income of workers) among that of the top 5-10 states in
the U.S.
2. Every region wins Ensure that every region participates in the growth of the Commonwealth
(i.e., all with positive growth in employment and median earned income of
workers)
3. Best state for business Restore Virginia to its previous leadership position near the top of the
national business climate rankings (i.e., average position among the top
3-5 states)
4. Top state EDO Reestablish VEDP as one of America’s most effective state economic
development organizations (principally to better enable accomplishment of
the top three transformational goals)
5. Super collaborator Exhibit collaboration and coordination as hallmarks of VEDP (i.e., place a
central focus on the “P” in VEDP)
• On track to achieve long-term goals with no major • Will likely not meet goal (typically due to lack of funding)
concerns
• Will make progress against long-term goals but • Not started
concerns (typically due to funding challenges)
14
TABLE OF CONTENTS
Introduction to and overview of the FY23 Operational Plan 3
Major Initiatives 16
Appendix: Performance Metrics 18
Appendix: FY 23 Budget Summary 20
Appendix: Components of the FY23 Operational Plan Required by the Code of Virginia 23
15
MAJOR INITIATIVES FOR THE FY23 OPERATIONAL PLAN
# Major initiative Owner (Support)
1 Build out the best customized workforce recruitment and training incentive program Grundmann
in the U.S.
2 Develop long-term Real Estate Solutions strategy that includes execution of Dreiling
expanded VBRSP program and a regional ecosystem approach to site development
3 Expand Virginia exports and strengthen supply chains through implementation of Agee
high-priority elements of the International Trade Plan
4 Accelerate efforts towards achieving national leadership in tech sector growth Barnett (Welch)
across Virginia
5 Align and integrate VEDP’s business outreach activities to achieve increased Stuller
coverage and impact
6 Support development of the Governor’s Comprehensive Economic Development Devan (Hartka)
Policy to include analyzing the economic context
7 Build out VOEE's operating structure and execute on priority deliverables McKay
8 Strengthen VEDP’s lead generation, project management capabilities, and related Barnett (Goodwin,
support functions (pending additional funding) Snelling, Hartka)
9 Enhance industry strategies by fully leveraging existing assets and developing new Barnett (Devan, Hartka,
capabilities (pending additional funding) Dreiling, Melançon, Stuller)
10 Launch an Offshore Wind Supply Chain Grant Program to establish an end-to-end Goodwin
supply chain of small businesses within the Commonwealth
11 Finalize comprehensive HR talent management strategy and launch priority Cox
components
16
TABLE OF CONTENTS
Introduction to and overview of the FY23 Operational Plan 3
Major Initiatives 16
Appendix: Performance Metrics 18
Appendix: FY 23 Budget Summary 20
Appendix: Components of the FY23 Operational Plan Required by the Code of Virginia 23
17
PERFORMANCE METRICS AND GOALS FOR FY23
Metric FY23 Goal
VEDP-assisted project announcements
Capital investment ($B) $7.5
Direct jobs 15,000
Estimated total jobs* 32,580
VEDP-generated leads
Number 405
Number converted 200
VEDP International Trade programs
Companies enrolled 450
Projected international sales ($M) $795
Projected trade-supported jobs 7,250
*Estimated total direct, indirect, and induced jobs using multiplier of 2.172 based on historic project trends 18
TABLE OF CONTENTS
Introduction to and overview of the FY23 Operational Plan 3
Major Initiatives 16
Appendix: Performance Metrics 18
Appendix: FY 23 Budget Summary 20
Appendix: Components of the FY23 Operational Plan Required by the Code of Virginia 23
19
VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP FY2023 BUDGET
SUMMARY (1/2)
Revenue Sources
FY2023 FY2022 Change
Revenue
COV General Fund Budgeted $48,511,992 $45,014,579 $ 3,497,413
Obligated Carry Forward Funds 14,329,666 8,731,590 5,598,076
Participation and Mission Fees 475,000 475,000 -
Other Revenue 348,100 211,080 137,020
Total Revenue $63,664,758 $54,432,249 $ 9,232,509
Note: "COV General Fund Budgeted" does not include $1,500,000 provided to support the
administration of new and expanding programs. This additional funding, sent down as
an amendment by Governor Youngkin and approved by the General Assembly on
6/17/22, is unallotted until authorized for allotment by the Secretary of Finance.
21
VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP FY2023
BUDGET SUMMARY (2/2)
Budgeted Expenditure Summary
FY23 FY22 $ %
Dollars Staff Dollars Staff Change Change
Division Budgets
Talent Solutions $ 17,332,268 53 $ 13,115,613 40 4,216,655 32%
International Trade 11,756,814 31 8,635,586 22 3,121,228 36%
Business Investment 5,976,701 32 6,337,915 34 (361,214) -6%
Research 3,066,507 22 2,964,875 22 101,632 3%
Marketing & Communications 4,559,844 12 4,712,844 12 (153,000) -3%
Economic Competitiveness 1,075,198 8 1,033,198 7 42,000 4%
Real Estate Solutions 1,343,000 5 1,200,000 4 143,000 12%
Information Technology 1,110,227 7 1,446,265 10 (336,038) -23%
Incentives 1,158,969 7 658,969 5 500,000 76%
Administration 4,983,064 23 4,560,844 21 422,220 9%
Total Division Budgets $ 52,362,592 200 $ 44,666,109 177 7,696,483 17%
Pass Throughs, Grants and Projects 11,302,166 - 11,334,062 - (31,896) 0%
Total VEDP Budget $ 63,664,758 200 $ 56,000,171 177 7,664,587 14%
21
TABLE OF CONTENTS
Introduction to and overview of the FY23 Operational Plan 3
Major Initiatives 16
Appendix: Performance Metrics 18
Appendix: FY 23 Budget Summary 20
Appendix: Components of the FY23 Operational Plan Required by the Code of Virginia 23
22
COMPONENTS OF THIS FY23 OPERATIONAL PLAN REQUIRED BY THE
CODE OF VIRGINIA
This section of the FY23 Operational Plan contains the two components required by statute,
itemized below:
Virginia Code § 2.2-2237.1. Board of directors to develop strategic plan for economic
development; marketing plan; operational plan; submission
2. An operational plan for carrying out the powers and duties of the Authority. The operational plan of the
Authority shall, at a minimum, include:
a. A process to evaluate the Authority's effectiveness in exercising the powers and duties conferred by
this article, including the Authority's ability to work with other state, regional, and local economic
development organizations and international trade organizations; and
b. A strategy for coordinating with state agencies that administer economic development incentive
programs and relevant executive branch committees, councils, authorities, and commissions to
maximize the effectiveness of state economic development programs and activities.
23
VEDP WILL CONTINUE TO EVALUATE ITS EFFECTIVENESS IN
EXERCISING ITS POWERS AND DUTIES
VEDP’s approach to addressing this statutory requirement includes four components:
Requirement: 1. Assessment of how VEDP can best
add value relative to its statutory
A. Develop a process to powers and duties
evaluate the Authority's
effectiveness in exercising
the powers and duties
conferred by this article, 2. VEDP functional assessments
including the Authority's
ability to work with other
state, regional, and local 3. VEDP metrics and performance
economic development indicators
organizations and
international trade
organizations
4. Annual stakeholder survey regarding
VEDP’s effectiveness in working with
partners
24
VEDP DEVELOPED A STRATEGY FOR COORDINATING WITH KEY
STAKEHOLDERS
VEDP’s approach to addressing this statutory requirement includes two components:
Requirement:
B. Develop a strategy for 1. Approach for coordinating with local,
coordinating with state regional, and statewide economic
agencies that administer development partners
economic development
incentive programs and
relevant executive branch
committees, councils,
authorities, and
commissions to maximize 2. Strategy for coordinating with other
the effectiveness of state incentive-administering agencies
economic development
programs and activities
25
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