Quarterly Report on Commonwealth's Development Opportunity Fund (COF), First Quarter of the 2023 Fiscal Year

Summary

A letter dated October 19, 2022 from Jason El Koubi, President and Chief Executive Officer, to the chairs of the Senate Finance and Appropriations, House Appropriations and House Finance Committees, a quarterly report on the Commonwealth's Development Opportunity Fund (COF) under § 2.2-115(G). It states that as of September 30, 2022, a total of $387,533,100 had been appropriated to the Fund over time. For the first quarter of the 2023 fiscal year, it reports $9,404,500 committed to assist eight projects, with total committed job creation of 1,860 and committed investment of $749.1 million. The project summaries include Unilock in Hanover County and Plenty Unlimited Inc. in Chesterfield County.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Quarterly Report on Commonwealth's Development Opportunity Fund (COF), First Quarter of the 2023 Fiscal Year.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-rd620-8e1f5b1268/, SHA-256 4903e89aa8701134d86136ef2bcaf21e259b6e76db38b2ddc07a88847beff2b7.

Full text

DocuSign Envelope ID: 0A3CD47D-66B4-400F-825B-ABCE53B0D3F9

October 19, 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)

Senators and Delegates:

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 2023 fiscal year as required by § 2.2-115(G) of the Code of Virginia.

As of September 30, 2022, a total of $387,533,100 had been appropriated to the Fund
over time. As of September 30, 2022, the Cardinal Financial System cash balance was
$84,158,043, and the balance available for future commitments totaled $40,721,130.
Taking into account COF preapprovals of $19,174,000 made by the Secretary of
Commerce and Trade, however, the available balance is $21,547,130. Generally, 40%
of preapprovals, or $7,669,600, do not move forward, and the available balance is more
likely approximately $29,000,000. Active grants awarded since the inception of the Fund
total 700.

For the first quarter of the 2023 fiscal year, ended September 30, 2022, a total of
$9,404,500 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 1,860,
while committed investment totaled $749.1 million. Summaries on these projects follow:

1. Hanover County: Unilock, a manufacturer of concrete block and brick, will locate
a new facility in Hanover County. This project will create 50 new jobs and an
investment of $55.6 million (amount of grant: $340,000; use of grant: building
construction; other grants awarded: Virginia Jobs Investment Program grant of
$37,500; local match: $340,000; anticipated completion date: September 2025;
average wage of new jobs: $65,592; prevailing average wage: $48,827). This
project has been announced.
DocuSign Envelope ID: 0A3CD47D-66B4-400F-825B-ABCE53B0D3F9

Money Committee Chair
October 19, 2022
Page 2

2. Chesterfield County: Plenty Unlimited Inc. will locate a new indoor vertical
greenhouse in Chesterfield County. This location will create 300 new jobs and an
investment of $300.0 million (amount of grant: $2,400,000; use of grant: site
preparation and building construction; other grants awarded: Agriculture and
Forestry Industries Incentive grant of $500,000, Port Economic and Infrastructure
Development grant of $75,000; local match: $3,000,000; anticipated completion
date: December 2028; average wage of new jobs: $53,555; prevailing average
wage: $53,554). This project has been announced.

3. Fairfax County: Hilton, a leading global hospitality company, will retain and
expand its existing corporate headquarters in Fairfax County. This retention/
expansion will create 350 new jobs and an investment of $50.3 million (amount of
grant: $1,000,000; use of grant: building upfits; other grants awarded: Virginia
Jobs Investment Program grant of $315,000, Virginia Economic Development
Incentive Grant of $5,000,000; local match: $1,000,000; anticipated completion
date: September 2027; average wage of new jobs: $242,297; prevailing average
wage: $99,205). This project has been announced.

4. Buchanan County: Coronado Coal, a producer of high-quality metallurgical coal,
will expand its existing facility in Buchanan County. The company will create 181
new jobs and invest $169.1 million (amount of grant: $3,525,000; use of grant:
road improvements and building construction; other grants awarded: Virginia
Jobs Investment Program grant of $76,000; local match: $5,000,000; anticipated
completion date: December 2026; average wage of new jobs: $108,254;
prevailing average wage: $50,867). This project has been announced.

5. City of Virginia Beach and Dinwiddie County: DroneUp will expand its existing
headquarters facility in the City of Virginia Beach and locate a drone pilot training
facility in Dinwiddie County. This project will create 655 new jobs and an
investment of $27.2 million (amount of grant: $928,000; use of grant: building
construction; other grants awarded: Virginia Jobs Investment Program grant of
$533,000, Virginia Economic Development Incentive Grant of $4,000,000; local
match: $928,000; anticipated completion date: June 2027; average wage of new
jobs: $103,652; prevailing average wage: $51,024 [blended average for Virginia
Beach and Dinwiddie]). This project has been announced.

6. Halifax County: Hitachi Energy USA, Inc., a manufacturer of specialty
transformers, will expand its existing facility in Halifax County. This expansion will
create 165 new jobs and an investment of $37.0 million (amount of grant:
$511,500; use of grant: building construction; other grants awarded: Virginia Jobs
Investment Program grant of $115,500, Enterprise Zone Job Creation grant of
$450,000, Enterprise Zone Real Property Investment grant of $200,000, Port
Economic and Infrastructure Development grant of $75,000; local match:
DocuSign Envelope ID: 0A3CD47D-66B4-400F-825B-ABCE53B0D3F9

Money Committee Chair
October 19, 2022
Page 3

$569,500; anticipated completion date: October 2025; average wage of new jobs:
$43,500; prevailing average wage: $41,754). This project has been announced.

7. Chesterfield County: Civica Rx will locate a new laboratory testing facility in
Chesterfield County. This location will create 51 new jobs and an investment of
$27.8 million (amount of grant: $400,000; use of grant: building construction and
upfits; other grants awarded: none; local match: $400,000; anticipated
completion date: September 2025; average wage of new jobs: $100,000;
prevailing average wage: $54,301). This project has been announced.

8. Halifax County: IperionX will locate a new titanium demonstration facility in
Halifax County. The company will create 108 new jobs and invest $82.1 million
(amount of grant: $300,000; use of grant: building upfits; other grants awarded:
Virginia Jobs Investment Program grant of $108,000, Enterprise Zone Job
Creation grant of $314,700; local match: $2,000,000; anticipated completion
date: September 2025; average wage of new jobs: $52,382; prevailing average
wage: $42,142). 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 2023 fiscal year, actual disbursements from the Fund totaling
$600,000 were made to the City of Danville for Litehouse.

Sincerely,

Jason El Koubi
President and Chief Executive Officer

JRE:kme

Enclosures

cc The Honorable Caren Merrick
Secretary of Commerce and Trade

File and source

File: 2022-RD620.pdf
Size: 237,660 bytes
SHA-256: 4903e89aa8701134d86136ef2bcaf21e259b6e76db38b2ddc07a88847beff2b7
Our copy: 2022-RD620.pdf
Original: No public link identified.