Inter-Agency Task Force for Economic Development in Southwest Virginia (House Document No. 6)

Summary

This 2023 report of the Virginia Department of Housing and Community Development to the General Assembly of Virginia (House Document No. 6) covers the Inter-Agency Task Force for Economic Development in Southwest Virginia. It states that on July 22, 2022, Governor Youngkin signed HB30 into law enacting the Commonwealth's budget for the 2022-2024 biennium, which established the task force. The task force was directed to review four specific programs, including a downtown revitalization matching fund for communities of less than 2,000 people and expansion of the Tobacco Commission's Talent Attraction Program. Its recommendations include exploring expansion of the Talent Attraction Program and continued support for the Energy DELTA Lab.

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“Inter-Agency Task Force for Economic Development in Southwest Virginia (House Document No. 6).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-hd6-88956399da/, SHA-256 4f171c55853c9cb6393e280bcf573930286ced68ec76f9bc164f21fb3fc47e23.

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REPORT OF THE VIRGINIA DEPARTMENT OF
HOUSING AND COMMUNITY DEVELOPMENT

Inter-Agency Task Force for
Economic Development in
Southwest Virginia
(2022 Appropriation Act, Item
115.V.2.)

TO THE GENERAL ASSEMBLY OF VIRGINIA

HOUSE DOCUMENT NO. 6

COMMONWEALTH OF VIRGINIA
RICHMOND
2023
Inter-Agency Task Force for
Economic Development in
Southwest Virginia
CONTENTS

Executive Summary ........................................................................................................................ 2
Introduction ..................................................................................................................................... 4
Regional Overview ......................................................................................................................... 5
Overview of Reviewed Programs ................................................................................................... 6
Recommendations ........................................................................................................................... 8
Additional Focus Areas Identified ................................................................................................ 10
Conclusion .................................................................................................................................... 10
APPENDIX 1 – Budget Language ............................................................................................ 11
APPENDIX 2 - Task Force Focus Area Analysis..................................................................... 12
APPENDIX 3 - Listening Session Notes .................................................................................. 19

1 | Inter-Agency Task Force for Economic Development in Southwest Virginia
EXECUTIVE SUMMARY
On July 22, 2022, Governor Youngkin signed HB30 into law enacting the Commonwealth’s
budget for the 2022-2024 biennium. The budget bill established an Inter-Agency Task Force to
review and make recommendations to support economic development in Southwest Virginia
(appendix 1). The Secretary of Commerce and Trade designated the Virginia Department of
Housing and Community Development (DHCD) to lead the Inter-Agency Task Force and work
with stakeholders to identify the necessary programs, resources and policy changes required to
support workers and communities in Southwest Virginia.

In addition to DHCD, the Inter-Agency Task Force was made up of designees from several state
agencies including the Virginia Economic Development Partnership Authority (VEDP), Virginia
Energy, the Virginia Tourism Corporation (VTC), the Virginia Department of Agriculture and
Consumer Services (VDACS), the Virginia Department of Environmental Quality (DEQ), the
Secretary of Labor, the Virginia Coalfield Economic Development Authority (VCEDA), the
Tobacco Region Revitalization Commission and the Virginia Community College System
(VCCS).

Focus Areas
The budget language authorizing the Inter-Agency Task Force directed the members to initially
review and make recommendations on its findings regarding four specific programs:
1. Establishment of a downtown revitalization matching fund for communities of less than
2,000 people.
2. Expansion of the Tobacco Commission's Talent Attraction Program
3. Support for the Southwest Virginia Energy Park, known as the Energy DELTA Lab
4. Support for the Energy Storage and Electrification Manufacturing project

Recommendations
Recommendations by the Inter-Agency Task Force represent the development of local capacity
to foster vibrant places, attract and develop a strong workforce, and pursue large-scale,
innovative energy solutions to support continued innovative economic diversification:

Matching Fund
• Regional coordinated capacity development efforts including with state agencies, task
force stakeholder and local government partners to explore initial steps in overcoming
challenges of limited staffing, funding and grant management.
• Investments in a “regional revitalization capacity fund” could be tapped by communities
and regional partners and counted toward matching requirements in state and federal
applications.

2 | Inter-Agency Task Force for Economic Development in Southwest Virginia
Talent Attraction Program
• Explore expansion of the Talent Attraction Program, potentially to include an increase in
the number of awards and the breadth of educational outreach and industry target areas.

Energy DELTA Lab
• Continue to support efforts of the Energy DELTA (Discovery, Education, Learning &
Technology Accelerator) Lab initiative in an innovative and comprehensive process,
evaluating all feasible solutions to achieve a reliable, affordable, competitive and
environmentally responsible energy grid.

Energy Storage and Electrification Manufacturing Project
• Support the Energy Storage and Electrification Manufacturing project as a continued
approach toward building diverse marketing opportunities within the energy sector.
• Continue conversations with industries capitalizing on the energy storage opportunities in
the region.

Through this report, recent successful projects and initiatives will illustrate the region’s positive
economic development efforts toward overcoming challenges or obstacles highlighted by
previous studies. This report builds from previous Virginia Energy and Virginia Economic
Development Partnership (VEDP) reports but will not specifically discuss findings from those
reports. The intent of this report is to further strengthen the collaborative spirit of local and
regional partners and continue the innovative approaches to grow the Southwest Virginia
economy.

3 | Inter-Agency Task Force for Economic Development in Southwest Virginia
INTRODUCTION
On July 22, 2022, Governor Youngkin signed HB30 into law enacting the Commonwealth’s
budget for the 2022-2024 biennium. The budget bill established an Inter-Agency Task Force to
review and make recommendations to support economic development in Southwest Virginia
(appendix 1). The Secretary of Commerce and Trade designated the Department of Housing and
Community Development (DHCD) to lead the Inter-Agency Task Force and work with
stakeholders to identify the necessary programs, resources and policy changes required to
support workers and communities in Southwest Virginia.

The Inter-Agency Task Force initially hosted a public roundtable discussion with taskforce
members, lawmakers, and representatives from community organizations. This meeting was
followed by listening sessions in several communities in the region including Lee, Wise, and
Dickenson Counties. The listening sessions were well-attended and included stakeholders with
diverse backgrounds. Representatives from state and local governments, nonprofits, small
businesses, educational institutions, and community members shared perspectives on a variety of
topics. Summaries of listening sessions can be found on DHCD’s website (appendix 2). The task
force also received comments directly throughout the engagement process.

Overall, the work of the Inter-Agency Task Force looked not at the specific pros and cons of
each proposed project listed in the legislation—a task beyond this report—but rather attempted
to listen to the voices of the region to understand the anticipated implications of the proposed
projects. These recommendations are made with the intention that the Commonwealth can
support the development of Southwest Virginia’s economy through innovative strategies and
robust investment. By building upon the lessons of collaboration gained through the regional
projects of the past two decades and by strategically aligning support for business and
community development alongside larger scale industrial investment, the region—in population,
in capacity and in prosperity—can grow.

4 | Inter-Agency Task Force for Economic Development in Southwest Virginia
REGIONAL OVERVIEW
For the purposes of this report, the Inter-Agency Task Force defined Southwest Virginia as the
coalfield counties of Lee, Wise, Scott, Buchanan, Russell, Tazewell, and Dickenson, and the city
of Norton. This southwest corner of the state is incorporated within Region 1 of the Virginia
Growth and Opportunity Fund (GO Virginia), a statewide effort investing in regional economic
strategies. Consisting of over 3,000 square miles, the coalfield counties in Southwest Virginia
possess numerous assets that continue to play a critical role in the economic future of the
Commonwealth. The region is home to abundant natural resources, hard-working and resilient
citizens, a vibrant culture and opportunities to shape Virginia’s future.

The region has experienced modest population decline in recent years with the most recent
Census data showing a 1.3% decline in 2021. This decline may be due in part to a slightly older
population compared to the rest of the state. An encouraging sign, the region’s proportion of
persons under 18 is on par with the rest of the state at about 20%. Parents are choosing to raise
their families in the region because of the lifestyle benefits, unique educational opportunities,
and cost-of-living advantages. Retaining these young residents as they graduate and enter into
the workforce will be critical for the region’s future.

The top priority industries in Southwest Virginia are agriculture and energy. These sectors have
historically been the top employers in the region and will continue to be the main drivers of the
local economy. In additional to these foundational industries, public and private stakeholders
have identified the opportunity to grow the region’s involvement in other sectors, including
advanced manufacturing and information technology. The Inter-Agency Task Force highlighted
several efforts to grow these industries in the region, bringing high-paying jobs and opportunities
for small business growth.

The coalfield counties have more than 3,200 employers and, while average salaries lag behind
the statewide average, the region enjoys a more affordable cost of living compared to most of the
state. Housing in particular is much more affordable in the region. For homeowners, according to
data from the Census the average medium mortgage costs for Southwest Virginia is $999 per
month, while the rest of Virginia pays on average of $1,891 per month. For renters, the coalfield
counties have an average median rent of $603 per month, while the rest of Virginia pays more
than double at a median cost of $1,326 per month.

In addition to the cost-of-living advantages of Southwest Virginia, the region has unique quality-
of-life benefits that attract residents from all walks of life. The region has abundant recreational
opportunities including trails, camping, swimming, fishing and hunting. The Appalachian Trail
and Breaks Interstate Park also provide outstanding outdoor adventure. The region has a vibrant
food scene with numerous farmer’s markets, orchards, breweries, distilleries and wineries.
Cultural heritage and music are also important to the region. The Crooked Road – Virginia’s

5 | Inter-Agency Task Force for Economic Development in Southwest Virginia
Heritage Music Trail tells the story of the rich history of bluegrass and country music. Visitors to
the area also enjoy the historic inns, shopping, antiques and art.

OVERVIEW OF REVIEWED PROGRAMS
The budget language authorizing the Inter-Agency Task Force directed the members to initially
review and make recommendations on its findings regarding four specific programs:
1. Establishment of a downtown revitalization matching fund for communities of less than
2,000 people.
2. Expansion of the Tobacco Commission's Talent Attraction Program
3. Support for the Southwest Virginia Energy Park, known as the Energy DELTA Lab
4. Support for the Energy Storage and Electrification Manufacturing project

Matching Fund
State and federal grants often require the recipient to raise a specific portion of the grant in order
to increase project revenue and support. Leveraging other resources is a key component when
applying for limited public funds. These matching requirements can be a challenge for small
rural communities applying for grants because they may lack the capacity to raise the necessary
funds through private means, lack the staffing levels to oversee multiple grant applications with
varying timelines of submission, or lack knowledge of the ever-changing grant programs and
opportunities. For this reason, the Inter-Agency Task Force was directed to review a downtown
revitalization matching fund concept for communities with a population of less than 2,000. This
concept would consist of a fund established by the General Assembly for small communities in
Southwest Virginia to access as they apply for federal grants that require matching funds.

The General Assembly has recognized the need to support capacity building efforts in smaller
communities in Southwest Virginia by authorizing and extending the use of grant funds awarded
by the Tobacco Region Revitalization Commission (TRRC) as matching funds for GO Virginia
grants in Region 1. Additionally, state agencies have used funding programs to award planning
grants to assist communities with designing downtown revitalization processes that include
potential funding opportunities and timelines. However, small towns and unincorporated
communities may not garner larger revitalization projects without assistance from larger entities.

Talent Attraction Program
The purpose of the Tobacco Commissions’ Talent Attraction Program (TAP) is to encourage
recent graduates to live and work in the Tobacco Region, comprised of 34 counties and seven
cities in southwest and southside Virginia. The program is a direct response to workforce
challenges in the region as more young professionals seek employment in urban centers. The
TAP incentivizes graduates to fill positions in critical occupations by providing them with up to
$12,000 annually in student loan repayment. This incentive comes with a two-year commitment

6 | Inter-Agency Task Force for Economic Development in Southwest Virginia
to live and work in the Tobacco Region and can be extended to four years. Graduates can earn up
to $48,000 in loan repayment with the two-year renewal.

To be eligible for the program, applicants must be recent graduates and agree to work in one of
the program’s targeted occupations in the Tobacco Region; public school teacher in STEM or
career and technical education, speech language pathologist, physical therapist, occupational
therapist, industrial or electrical engineer, information security, network, or computer system
analyst. Applicants must also fulfill a civic engagement requirement which involves participating
in local government and/or community functions.

The program is in its fourth year and applications for eligible graduates between 2020-2022
closed May 1, 2022. To date, the program has awarded funds to nearly 350 individuals. The most
common occupation among recipients are special education teacher, science teacher, physical
and occupational therapist, and speech language pathologist.

Energy DELTA Lab
The Southwest Virginia Energy Park, recently named the Energy DELTA ((Discovery,
Education, Learning & Technology Accelerator) Lab, is a collaboration between the Virginia
Department of Energy, the Southwest Virginia Energy Research and Development Authority,
Invest SWVA, Appalachian Power and Dominion Energy. The Lab serves as a testbed and
research facility focused on electric generation, green-energy development, and technology
projects. The project’s initial site is located near the Town of Pound in Wise County on land
owned by the Cumberland Forest Limited Partnership. The Lab is modeled after a project in
Germany that utilizes reclaimed mine land for new energy research and development.

The lab concept was led by Invest SWVA and the LENOWISCO Planning District Commission
with grants provided by the GO Virginia Region 1 and the U.S. Economic Development
Administration. By utilizing the successful GO Virginia initiative as the catalyst for the Energy
DELTA Lab, this innovative partnership is able to grow outside the traditional academic research
institute setting. Public and private researchers and developers can test real-world technologies
on a large scale, accelerating the implementation of new technologies into Virginia's energy
marketplace.

Southwest Virginia provides tremendous opportunities for an “all of the above” energy
generation approach because the region is a historic leader in energy production. The Energy
DELTA Lab is a product of the recognition that technological innovation will be the primary
reason the Commonwealth will meet its goals of a reliable, affordable, competitive and
environmentally responsible energy grid. In the 2022 Virginia Energy Plan, Governor Youngkin
included the Energy DELTA Lab in a list of innovative projects that are transforming Virginia’s
energy communities through partnership, growth, and diversification. The Energy DELTA Lab is

7 | Inter-Agency Task Force for Economic Development in Southwest Virginia
an important asset for research and development as new technologies are rapidly emerging in
electric generation.

Energy Storage and Electrification Manufacturing Project
The Energy Storage and Electrification Manufacturing Project (ESEM) is a program investing in
the region by providing funding for the region’s legacy manufacturers to enter into battery
manufacturing and energy storage, technologies critical to provide baseload power for residents
throughout Virginia. The ESEM project also focuses on supporting manufacturing for utility-
scale solar development which presents an opportunity for high-paying job creation.

The project is administered by Appalachian Voices through a GO Virginia Enhanced Capacity
Building Grant. GO Virginia funds are matched by regional partners and a cost share agreement
is in place for the technical assistance provided by the project. The goal of the ESEM project is
to support the businesses and workforce in Southwest Virginia who have historically supported
the region’s mining industry. Energy storage and electrification provide an excellent opportunity
for manufacturers to remain in Southwest Virginia and continue serving communities throughout
the coalfields. The project is working to diversify the economy is Southwest Virginia and
position the region as a nationwide leader in energy production.

RECOMMENDATIONS
By building upon the conversations during the listening sessions and the program observations,
the following recommendations have been developed to guide economic development efforts for
Southwest Virginia.

Matching Fund
• Continue coordination for the state agencies, task force stakeholders and local
government partners in pursuing federal and state revitalization funds.
• Regional coordinated capacity development efforts should be explored as the initial steps
in overcoming challenges of limited staffing and grant management experience faced by
very small communities.
• Support revitalization efforts through existing regional partners with strategies that build
upon local knowledge, leverage local strengths and foster the development of locally and
regionally owned businesses.
• Investments in a “regional revitalization capacity fund” could be tapped by communities
and regional partners and counted toward matching requirements in state and federal
applications.

Talent Attraction Program
• Explore expansion of the Talent Attraction Program to include an increase in the number
of awards and the breadth of educational outreach and industry target areas.

8 | Inter-Agency Task Force for Economic Development in Southwest Virginia
• Increase outreach to include additional universities in the Tobacco region, making
upcoming graduates aware of the program as students complete pre-graduation student
loan counseling and begin seeking jobs.
• Expand the industry target areas to increase the number of graduates in hard-to-fill
occupations and bring additional graduates to the region.
• Market the program to align with high- and middle-school career pathway guidance to
advance the sense of Southwest Virginia as a region of career opportunity in younger
students.

Energy DELTA Lab
• Support efforts of the Energy DELTA Lab initiative in an innovative and comprehensive
process, evaluating all feasible solutions, to achieve a reliable, affordable, competitive
and environmentally responsible energy grid.
• Utilize Energy DELTA Lab development as a launch pad for complementary and
contributing programs that inspire and support:
o Local entrepreneurship through business development support and supply chain
incentives.
o Youth development and career preparation through K-12, college and university
partnerships.
o Community development through creative partnerships with local jurisdictions and
civic organizations.
• Align strategies that can develop at the appropriate level.
o For instance, K-12 investments that build upon the excitement of new
technologies to prepare students for STEM careers can contribute to the region’s
ability to support a potential DELTA Lab, but also prepare students to take
advantage of other opportunities as well.

Energy Storage and Electrification Manufacturing Project
• Support the Energy Storage and Electrification Manufacturing project as a continued
approach toward building diverse marketing opportunities within the energy sector.
• Continue collaboration with industries capitalizing on the energy storage opportunities in
the region.
• Develop and expand upon complementary training programs that prepare youth and
adults for careers in the energy sector.

9 | Inter-Agency Task Force for Economic Development in Southwest Virginia
ADDITIONAL FOCUS AREAS IDENTIFIED
At a September 8, 2022 roundtable in Abingdon, Inter-Agency Task Force members identified
the four areas of particular interest for the development of Southwest Virginia’s economy:

• Workforce
• Infrastructure
• Housing
• Site Readiness

These categories were seen as critical to any of the four investments reviewed and subsequently
guided four December 2022 listening sessions attended by 80 regional stakeholders. Further
discussion of these four focus areas, as well as an analysis of comments garnered through the
listening sessions, can be found in Appendix 2.

CONCLUSION
The success of the regional economy in Southwest Virginia will depend upon a suite of
approaches that may include the recommendations from this report and many other
recommendations from recent, related studies. The economic development awards and
investments noted above speak to the continued hard work by many parties in this region, as well
as the continued innovative approaches and ideas generated from this region.

There has been positive momentum in all the four recommendation areas, but gaps still remain.
Strategic investments should be supported by the Commonwealth and led, where possible, by
regional and local partners. Building from the assets, voices and aspirations of communities and
residents, any form of large scale, transformative economic strategy should incorporate aligned
community development strategies. Efforts should support development of a regionally based
supply chain by:
• Supporting the development of local businesses by local residents.
• Providing additional, flexible resources that support self-determined strategies at the
local and regional level.
• Fostering regional ownership structures where possible.

Even with the successful projects and initiatives noted within this report, establishing a new
energy economy takes time. Southwest Virginia has been diversifying local economies for years,
and this process will continue to evolve in the coming years. The agencies of the Inter-Agency
Task Force remain resolute to coordinate Commonwealth resources and collaborate with
regional and local partners for strategic economic development advancements.

10 | Inter-Agency Task Force for Economic Development in Southwest Virginia
APPENDIX 1 – Budget Language
Item 115 V.2 of Chapter 2 of the 2022 Acts of Assembly Special Session I

The department shall establish an Inter-Agency Task Force chaired by the Secretary of
Commerce and Trade, or their designee, and comprised of designees from the Virginia Economic
Development Partnership Authority, Virginia Energy, the Virginia Tourism Corporation, the
Department of Housing and Community Development, the Virginia Department of Agriculture
and Consumer Services, the Virginia Department of Environmental Quality, the Secretary of
Labor, the Virginia Coalfield Economic Development Authority, the Tobacco Region
Revitalization Commission, and the Virginia Community College System. The purpose of the
Inter-Agency Task Force is to review and make recommendations to support economic
development in Southwest Virginia. The Inter-Agency Task Force shall initially review and
make recommendations on its findings to the General Assembly by June 1, 2023 regarding (i) the
establishment of a downtown revitalization matching fund for communities of less than 2,000
people; (ii) expansion of the Tobacco Commission's Talent Attraction Program; (iii) support for
the Southwest Virginia Energy Park, known as the “Energy Lab" project; and, (iv) support for
the innovative Energy Storage and Electrification Manufacturing project. The Inter-Agency Task
Force may include additional recommendations that will support economic development and job
creation in the region in its June 2023 report to the General Assembly. In conducting its review,
the department's Division of Economic Development and Community Vitality shall conduct
regular stakeholder outreach with impacted communities and regional stakeholders to identify
the necessary programs, resources, and policy changes required to support transitioning workers
and communities. The Inter-Agency Task Force shall consult with impacted stakeholders
including residents of the coalfield counties, employers in the coalfield counties, local
government representatives, and representatives of regional nonprofit entities.

11 | Inter-Agency Task Force for Economic Development in Southwest Virginia
APPENDIX 2 - Task Force Focus Area Analysis

The facilitated discussions around challenges quickly moved to recommendations as
conversations built upon past successes and ongoing collaborative advances. Successes in the
region today draw upon decades of collaborative investment that were led by the region and
supported with state and federal resources. Continued state partnership and resources were called
upon in the listening sessions to help “make it easier for people to choose the region and to live
in the region.”

In each of the conversations, the clean lines of categories gave way to the interconnectedness of
strategic investments and the need for comprehensive approaches that prepare and position the
region and its communities. Participants called for increased awareness, understanding, and
participation of the public in economic and community development processes—with
transparency and engagement opportunities in setting goals, identifying strategies, and
supporting priority projects that build on local strengths to benefit local people. Additionally,
participants called for ongoing efforts that build cohesiveness between groups in the region.
They emphasized increased communication, trust-building, and organization around shared
interests and goals.

Housing
Throughout the engagement process, the Inter-Agency Task Force heard that the region does not
have adequate housing stock. With this and other challenges of rural mountain life, including
inconsistent or distant access to cell coverage, fresh food, work, health care, childcare and other
of life’s necessities, a participant stated, “We don’t make it easy to live here.” However, many of
the conditions that shape the challenges also offer the special quality of place that make living in
Southwest Virginia worth the effort. While housing challenges are not unique to rural
communities, addressing them requires an approach specific to the area.

Deficits span all levels of housing, including starter homes for young families, affordable homes
for low- to moderate-income residents and homes for higher income individuals. For low- to
moderate-income residents, the region requires housing products that not only provide affordable
shelter, but those which can serve as asset- and wealth- building tools. For instance, one
participant asked, “What would self-help housing look like in the region?”

Hard-earned advances in broadband availability are seen as the linchpin in the viability of the
region for remote workers, but lack of quality housing will continue to limit growth. Multi-unit
housing development—as happens daily in many parts of Virginia—has not happened in much
of the region for decades. Local and regional partners are currently organizing to respond to a
developer interested in the region. The long-demonstrated ability of these partners to work
together in regional and multi-jurisdictional efforts to eliminate barriers will be called upon to
bring housing development to fruition. State resources and a willing approach to barrier
reduction can support the regional public-private partnerships.

12 | Inter-Agency Task Force for Economic Development in Southwest Virginia
An example of a successful housing project in Southwest Virginia is the student housing at
Southwest Virginia Community College (SWCC) in Tazewell. SWCC is the first community
college in Virginia to provide housing for students. By providing housing to students, SWCC is
able to reduce the costs of attending school, overcome transportation challenges and increase
enrollment and graduation rates. This project will have continued benefits for the broader
community as young residents can begin to live and work affordably in the area, providing
needed skills in the local workforce.

Infrastructure
At the listening sessions, the Inter-Agency Task Force heard much about topography, with the
higher cost of wastewater infrastructure as a primary limiting factor in the growth of businesses
and housing. Flood zones, user agreements and health department regulations also restrict sewer
access as noted by session participants. Awareness of a DEQ proposal before legislature in the
2023 session offered the positive sense that there is some statewide movement toward solutions.
Participants indicated that the challenges are regional, but the effective response will require
coordinated state support with an eye toward the end goal of site readiness and the development
of needed housing.

Additional resources and concerted efforts to get sewer in place in key locations can transform
key market-ready locations, including the western corner of Lee County. Organizing state and
regional resources to more quickly respond to areas of potential, such as the area surrounding the
Lincoln Memorial investments at the DeBusk Veterinary Teaching Center, can serve as calling
cards for the economic opportunity in the region as a whole.

Strides have been made in technology for rural septic systems, but regulatory structures may not
be keeping up. A participant asked if the region might lead the way for the state and Appalachia
in advancing this innovation if there were strong state support and a willing regulatory approach.
Capacity in the electric grid remains an issue both for small businesses in a rural setting and for
larger site development.

Optimism in the region stems from decades of successful infrastructure planning, resource
attraction and implementation led by regional planning district commissions. With adequate
resources and regulatory support, the region sees itself as confident and poised for action.

LENOWISCO, Cumberland Plateau and Mount Rogers PDCs received funding from DEQ to
complete a new regional wastewater service plan for PDCs 1, 2, and 3. The purpose of the
Southwest Virginia Comprehensive Regional Wastewater Study is to take inventory of current
infrastructure, note completed projects from the 2005 study and identify areas that require
development and additional improvements. This updated study will be valuable as Southwest
Virginia seeks to improve its water and sewer infrastructure.

13 | Inter-Agency Task Force for Economic Development in Southwest Virginia
DEQ, VDH, DHCD and the Tobacco Commission have all funded recent investments in this
region, including new infrastructure and replacement of existing infrastructure. Continued
collaboration and coordination from state and federal funding agencies will create opportunities
for strategic infrastructure deployment, which will also create a lasting impact on small
Southwest communities.

Another important effort to improve infrastructure in Southwest Virginia is expanded broadband.
DHCD’s Office of Broadband partners with units of local government and internet service
providers through multiple programs to ensure Virginians have access to broadband
infrastructure. In Southwest Virginia, the Commonwealth’s largest broadband deployment grant
program – the Virginia Telecommunication Initiative (VATI), has invested $139,792,269 to
provide broadband access to 62,767 homes, businesses, and community anchor institutions. The
Appalachian Regional Commission also invests in last mile broadband expansion projects in the
region, including a middle mile wireless project to extend wireless connectivity in the region and
support economic development. DHCD’s Office of Broadband also administers the Line
Extension Customer Assistance Program to assist with the costs of extending broadband
networks to income-qualified homes with large setbacks from existing network infrastructure.

Additionally, DHCD is the administrator of funds under two federal programs – the Broadband
Equity, Access, and Deployment (BEAD) program, and the Digital Equity Act. Both programs
complement existing efforts to provide affordable, reliable, high-speed broadband universally
across the Commonwealth. The programs will allow the Commonwealth to build upon the
investments made in extending broadband infrastructure to ensure existing and new networks are
affordable, and residents and businesses along those networks fully understand how to take
advantage of connectivity.

In addition to DHCD’s efforts expanding broadband infrastructure in Southwest Virginia, the
Virginia Coalfield Economic Development Authority (VCEDA) approved six grants to the
Appalachian Council for Innovation, and Dickenson and Wise Counties to provide underserved
households with school-aged children low earth orbit space-based broadband through Starlink.
This program has reached over 900 households in Southwest Virginia, providing critical
infrastructure for education and telework.

In the area of transportation, like other types of infrastructure, the Inter-Agency Task Force
discussed the challenges topography poses to expanding roads for residents and commercial
travelers. An ongoing effort, the Coalfields Expressway Authority, formed by the General
Assembly in 2017, has proposed a limited-access highway to provide an artery through the
coalfields region of far Southwest Virginia and southern West Virginia.

14 | Inter-Agency Task Force for Economic Development in Southwest Virginia
In addition to the Energy DELTA Lab and Energy Storage and Electrification Project, the region
is pursuing other projects to build energy infrastructure including Project Energizer which is
focused on smaller pumped-storage hydro power. This project is receiving funds from Dominion
Energy, USDOE, GO Virginia and National Renewable Energy Laboratory.
Finally, health care infrastructure has received attention in Southwest Virginia through two
recent VCEDA grants. One is a loan to help with the development of a new inpatient, residential
substance abuse rehabilitation facility; another is for the Heart Stone Lodge, an assisted living
facility project at Southern Gap in Buchanan County.

Workforce
Shortages of trades and construction talent threaten advancements in housing and business
readiness.

Hands-on, on-the-job apprenticeship opportunities led the way in workforce recommendations,
with an emphasis on engaging K-12 students in career paths and providing examples of positive
career trajectories within the region through programs like GO TEC. Other bright spots include
solar and electrical apprenticeship training programs at Mountain Empire Community College.
Structuring incentives for schools and students that are aligned with job placement can increase
participation and serve industry.

With the realities of the long term effects of the opioid epidemic, full-person support is required
for those in recovery. One project under development in Dickenson County extends a successful
Kentucky model, creating recovery housing near industrial businesses allowing for partnerships
and workforce training while workers are in recovery. Acknowledging and addressing challenges
such as these is a hallmark of a resilient region. Participants identified that support for models
that address challenges by investing in local assets—local people—to build the economy will
result in a region that grows far beyond the ongoing impacts of extractive industries.

Other projects in the region focused on workforce growth include Project Fuse, an innovative
effort to design and execute telework employment strategies for Lonesome Pine Regional
Industrial Facilities Authority (LPRIFA). The authority is comprised of five jurisdictions: the
City of Norton and the counties of Dickenson, Lee, Scott and Wise. Foundational to the strategy
are the benefits of the region’s quality of life and low cost of living.

Projects working to bring high-paying jobs in manufacturing to Southwest Virginia are Project
Oasis and Project Veer. Project Oasis, receiving funds from GO Virginia and the Virginia
Energy, is studying Southwest Virginia’s unique position for data centers. Because of the
region’s land availability, geology and workforce readiness, Southwest Virginia is positioned to
capitalize on the growth of jobs in technology which have come to other parts of Virginia.
Similarly, Project Veer is working to bring manufacturing jobs to the region by studying the

15 | Inter-Agency Task Force for Economic Development in Southwest Virginia
supply chain capabilities of Southwest Virginia to support offshore wind development. Project
Veer is receiving funds from GO Virginia and the Virginia Tobacco Revitalization Commission.

VCEDA’s efforts are also extensive in the area of workforce development in Southwest Virginia.
Recent accomplishments include various grants to localities for workforce training in
manufacturing and technology. These grants include funding to Russell County to assist with
workforce development and training at TDEC, an IT employer in Lebanon, a grant to the Scott
County EDA to assist with an expansion at VFP Inc., a local manufacturer, a grant to the Russell
County IDA for workforce development and training at Polycap, a plastic injection
manufacturing company in Lebanon, a grant to the Scott County EDA to assist with an
expansion at Tempur-Sealy, another local manufacturer, and lastly a grant to the Wise County
IDA for an innovation workforce development and training project using blockchain technology
for public land records.

VCEDA workforce development grants have also been awarded to the region’s strong
educational institutions. In 2019, VCEDA approved a $486,000 grant awarded to the UVA-Wise
Foundation to assist with the development of the Clinch River Ecological Education Center at
the Oxbow Center in St. Paul. More recently, in 2022, several workforce development and
training grants totaling over $1 million were made to the Southwest Virginia Community
College Educational Foundation and the Mountain Empire Community College Foundation for
various workforce development and training related initiatives, which have been used to assist
with tuition, customized business training, credentials and certifications for students and solar
energy training. Napoleon Hill Foundation also received a grant for the development of an online
course in entrepreneurship skills for high school students.

Sites
At the Inter-Agency Task Force roundtable and listening sessions, members heard that site
development in Southwest Virginia is limited by both terrain and land ownership patterns that
include large swaths in control of landholders external to the region. Land reform strategies were
proposed that might revisit the cost of holding useable land. Where land is available, site
readiness critically depends on additional state resources and support for infrastructure
development. Additionally, limited GIS capacity in the region constrains the planning,
development, and marketing of smaller sites. Investment in a regional GIS system would assist
local, regional and state partners.

Regional investments such as the Lonesome Pine Regional Industrial Facilities Authority are
setting the stage for business attraction. Additional state investments in projects such as this,
benefiting multiple counties, can go far in reinforcing the cooperation expected in a region of
choice in which employers are drawing from a pool of regional workers.

16 | Inter-Agency Task Force for Economic Development in Southwest Virginia
Investments from the state are seeking to address challenges identifying and developing sites in
Southwest Virginia. In the 2023 legislative sessions, with the support of Governor Youngkin, the
General Assembly passed HB1842, creating the Virginia Business Ready Sites Acquisition
Program to be administered by VEDP. The goal of the program is to acquire sites in order to
maintain a portfolio of project-ready sites to increase the state’s marketability and enter into
development agreements with employers for large-scale projects. The Acquisition Program
builds upon VEDP’s Virginia Business Ready Sites Program Fund which is used to provide site
characterization grants and site development grants.

Additional efforts to develop sites in Southwest Virginia include grants and loans from VCEDA.
This funding is used to retain and attract businesses to Southwest Virginia by developing and
repairing critical infrastructure on business-ready sites. Grants and loans approved from the fund
in the last two years include:
• Southern Gap Infrastructure and Site Development
A grant to the Buchanan County Industrial Development Authority (IDA) for the
development of additional industrial sites and infrastructure at the IDA’s Southern Gap
development.
• Former Haysi & Clintwood High School Properties Site Development
A grant to the Dickenson County IDA to demolish the old Haysi High School and
Clintwood High School buildings to redevelop those two sites for economic
development.
• Red Onion Industrial Site
A grant to the Dickenson County IDA to assist with site development of the IDA’s
approximately 90-acre Red Onion industrial site.
• “Chip Mill” Industrial Site
A loan to the Dickenson County IDA to assist with the acquisition of a 400+ acre site,
formerly used as a wood chip mill, as a new industrial site for the county.
• “Green Lot” Site Development
A loan to the Dickenson County IDA to help with further site development of the IDA’s
approximately one acre “Green Lot” in downtown Clintwood. Previously, VCEDA
helped fund the acquisition of this lot.
• St. Paul Industrial Building Acquisition
A loan to the Russell County IDA to acquire a 284,000 sq. ft. industrial building and 14
acres of land at St. Paul, Va.
• Acme Building
A loan to the Russell County IDA to acquire and begin renovating the 41,000 sq. ft.
Acme Building and two-acre site in Lebanon. This was followed up by an additional
renovation loan.
• Russell Place
A loan to the Russell County IDA to acquire and begin renovations of the Russell Place

17 | Inter-Agency Task Force for Economic Development in Southwest Virginia
industrial building and site in Lebanon. Another loan was approved to the IDA to help
with further renovations.
• Raven School Property
A loan to the Tazewell County IDA to help with renovations at the old Raven elementary
school property to convert it into an economic development site for a prospective tenant.
• Tech Park Office Building
A loan to the Wise County IDA to acquire an office building in the Lonesome Pine
Regional Business and Technology Park for marketing as spec office space.

18 | Inter-Agency Task Force for Economic Development in Southwest Virginia
APPENDIX 3 - Listening Session Notes

Listening Session 1
Interagency Task Force to Support Economic Development in SWVA
Friday, December 9, 2022
10 A.M.-12 P.M.
Dickenson Center for Education & Research

Summary:
About 20 attendees from the area met at the Dickenson Center for Education and Research
building to share input for the taskforce. Kristen Dahlman gave an introduction and overview of
the taskforce’s activities and mission. Doug Jackson presented the agenda and facilitated
discussion. After introductions the group focuses on 3 of the four factor areas identified by the
taskforce (workforce, housing, and infrastructure).

Major Themes:
The group talked at length about workforce development, specifically the apprenticeship model
as the best way to bring students into the trades. Business owners talked about the importance of
school programs, however, the importance of hand-on, on-the-job training through
apprenticeship was considered the ideal way to get kids into these professions. Showing the
career paths to K-12 students is seen as an opportunity.

Sewer is considered a major piece of missing infrastructure. The group talked about the success
bringing public water to communities and these projects can serve as examples for wastewater
projects. The main challenges for sewer include the higher cost, topography, flood zones, user
agreements, and health department regulations. A DEQ proposal coming before the legislature
this session may provide additional resources.

We heard again about the challenges finding sites for development because outside entities own
a majority of the property. These properties are simply not available to buy/develop. A new GIS
system was mentioned several times as a way to identify potential sites for development.
Property owners and governments alike need this technology to identify their properties.

On housing, a common theme was lack of supply for all income levels. Residents shared
anecdotal stories about higher income individuals wanting to move to the region for the quality
of life, but housing is not available. Universal broadband is the foundation because it will attract
IT and remote workers. The area needs to develop housing stock for all incomes because these
newcomers are looking for places to live.

19 | Inter-Agency Task Force for Economic Development in Southwest Virginia
Organizations Attending:
VCEDA, Town of Clintwood. Dickenson County, Friends of SWVA, Appalachian Voices,
Appsol Solutions, Town of Clinchco, Mainboard LLC, Re/Max Cavaliers

Public Comment
1. Introduction
What a barrier to economic development looks like here. Give one example in any of the
factor areas (workforce, housing, infrastructure, sites/business readiness). You can be as
specific or as general as you want. We’re looking for high-level here - sum it up in a
sentence. Extra credit question…Current strategy if you’re working one.

● The region needs planning by professionals in order to best utilize resources.
● There is no reliable GIS system for the county. This is needed to locate properties for
development. Folks want to sell property, but it is hard to identify/find these locations.
● The area needs improvements in technology, namely, cell service and internet access.
● Housing is a big need. We need more assisted living facilities in order to open up housing
and increase supply for other residents.
● Site readiness is important, currently working to locate properties to develop.
● Moved back to the area to bring experience in process improvements. Currently looking
at how to improve quality of life and provide a higher standard of living for area
residents. The area needs a one-stop-shop for business assistance. For Dickenson County,
we need investments in the right timeframe. It is currently difficult to find housing. Site
readiness should focus on “e-commerce” readiness. There are great opportunities to sell
online. Population loss in the region is a symptom of lacking in the 4 factors.
● Represented the central Appalachian region at the UN regarding climate change. Focus
was on flooding. Currently writing papers and letters on environmental concerns. Has a
particular focus on addressing mental health and special education issues.
● A major challenge is the amount of funds available. Asked how do we match our vision
with the money available? Asked how we are going to “meet this moment?”
● Working in the creative economy. There is an opportunity to shine a light on things we
do well. We need to come together as a region and capitalize on the opportunities
available.
● Has experience in site readiness. Shared his experience working in the area as they went
from 40% to 90% of homes with public water. Without infrastructure there cannot be
sites, without sites there are no businesses. Housing comes after businesses establish
themselves in the area. Topography is a challenge but feels that groups are making
progress. We need to “chip away at it.” Every group works together to accomplish these
projects.
● Sites/buildings are key for traditional economic development projects. Timing is a
challenge. An example is the coalfield expressway. That project was making progress but

20 | Inter-Agency Task Force for Economic Development in Southwest Virginia
partnerships fell apart because of shifting federal priorities in the early 2000s. This
highway will be a “savior” for the region. Public sewer next big challenge in
infrastructure. Topography a challenge for sewer. There are opportunity for young people
because jobs are available in the region.
● Focusing on one project at a time to support countries solve their problems/projects. GIS
and tax mapping can be improved. We need staff to develop GIS. The current staff wears
lots of hats and expertise is needed. Region needs more development of wireless
technology, cell towers especially. The wireless assessment project is looking at where
service gaps are and where new developments can happen. This project is currently in the
planning phase and will need money when construction phase begins in the next 5 years.
● Revenue from fiber optic network developments is being reinvesting in the area counties.
We will have universal fiber by 2024 (this process began in 2002). SWVA will have the
same service as any major city. This development was done with help from grants.
● It is hard to find employees and even harder to find employees willing to just work part-
time. Another issue is new development attracts businesses, but old buildings/sites are
left behind. Asked how can we get young people to invest in those old sites?
● A major problem is 85% of Dickenson County is owned by outside entities (lumber,
corps, federal government, etc.). Asked how local entities/individuals can access this
property to develop? The property currently owned by locals is not the best and hard to
build on. There are not many places for young people to move into. The area need single
family (3 bedroom), rather than apartments because folks with higher-paying jobs do not
want apartments.
● The region needs people. Things like daycare and housing are needed to attach more
people. Many jobs are unfilled so we need to attract people to fill current jobs before we
bring in new jobs. People will come if they can find housing, services, etc.
● Water development is a big success story. We need to continue efforts like that in order
to improve public health. Sewer remain a big issue because it affects clean water sources.
Widespread internet access is a success. Cell service remains an issue and needs to be
addressed because it is a safety issue. Workforce a challenge because the local economy
has been going up and down because of coal. We need a strategic plan to make these
factors (housing, infrastructure, sites/business readiness, workforce) blend together.
Currently working with the Army Corps of Engineers to help folks living in flood zones.
We need a vision and work with others to avoid tunnel vision. We need to work to find
an overall goal.

2. Infrastructure
What recent current infrastructure investment has resulted in industry or business
expansion or location?

21 | Inter-Agency Task Force for Economic Development in Southwest Virginia
● Recreational development (trails, shooting facility, etc.) has attracted residents. Buchanan
County is a good model and there are world class trails in Haysi.
● There are good trails in Clinch but conservation groups do not want to develop more.
● Outside private ownership of property is a barrier for new trails.
● The coalfield expressway may limit access to some communities since Clintwood may be
bypassed.
● Recreation development depends on folks with good paying jobs to spend the money. Is
there an opportunity in the region for semiconductor manufacturing? There are a lot of
workers in the coalfields with the experience needed for these jobs.
● Concerned that money invested by outside energy companies will not go to the
communities. Concerned about waste produced by small nuclear reactors, threat to water.
Residents depend on the reservoir, for drinking water and it should be protected from
environmental threats. Gave an example of efforts to stop a landfill because toxins would
have spilt into drinking water.

3. Housing
What housing success has the area seen recently?

● In Trammel, People Inc. got a grant through DHCD for a housing project. Phase 1 of the
project includes 10 homes for rehabilitation and two additional grants from the federal
government will help finish project. This project is fixing what used to be an eye sore in
the community.

Are there current housing development projects in planned that are in need of resources?

● Leadership in Dickenson County is thinking about doing a housing study. The number of
vouchers do not align with the supply of housing available. The county is working to
attract businesses outside of coal. Working on training workers to fill these jobs. Working
on rehabbing homes lost to fire, damage, disrepair.
● There is money in the Inflation Reduction Act (IRA) for home rehab (new heat pumps,
etc.). There is funding and opportunities for landlords to rehab rentals and increase the
supply of quality housing.
● We are seeing bidding wars for homes that are available, so we know the demand is
there. The supply cannot meet demand, so folks look for homes in surrounding counties.
People looking to move to the area are attracted to lower cost of living, lower taxes.
There are good work from home jobs and their paycheck go a lot further here.
● We are seeing outsiders buying up land through tax bills at the county.
● There is a lack of supply of housing for all income levels. The three-bedroom home is
common but there is demand for other options as well.
● New residents are attracted by the county’s new school facilities.

22 | Inter-Agency Task Force for Economic Development in Southwest Virginia
● Expanded internet access has connected the region and there are opportunities for new
residents who want lifestyle of SWVA. People are looking to move, we need places for
these folks to live.
● There are barriers with Department of Health trying to permit/develop new sewer
systems.
● The increase in federal resource for infrastructure is an opportunity to build sewer and
other new projects. Localities need the help funding these projects because the cost of
waste-water is much greater than public water. Flood zones are challenge to develop
sewer and other regulations/reviews can stop projects. There is a SWVA pilot program at
DEQ trying to get money for additional sewer development. Some projects face the
issues of residents not wanting to be hooked up to public sewer. Asked if local
governments are willing to do mandatory builds? On a regional level working on
education, trying to educate folks when signing user agreements about what public sewer
means.
● Sewer needs to be profitable for the providers.
● Flood zones are likely to grow. This presents a challenge for homeowners, buying
insurance, raising homes, etc.

Is there a particular type of housing that you believe should be addressed as a first priority?

● Many homes in the area are not primary residences. Asked how these homes can become
available for locals to purchase?

4. Workforce
What are the workforce challenges and opportunities in Dickenson County?
● We need survey workers and developers in general (contractors, etc.). Contractors are
having a hard time finding workers. There is an opportunity to work with the schools and
show this career path to students.
● There are currently classes on carpentry in schools but there used to be many more such
as masonry and metal shop. It is becoming difficult to fill the classrooms teaching trade
because there are fewer students. We should expand these classes to K-12 and partner
with community colleges.
● Filling the current openings in trades would be very beneficial.
● The career center can help students get high paying jobs in IT that can be remote. We can
show young people these opportunities in IT because they are already familiar with
technology.
● Trades being taught in vocational school are important because young people are low-
income.

What are the strongest tools or programs currently preparing the workforce?

23 | Inter-Agency Task Force for Economic Development in Southwest Virginia
● Software at VCEDA is identifying employers in the trades and engineering who need
workers.
● The “self-help” program can serve as a model for sewer projects and workforce
development in the trades.
● There are programs at schools to get kids certificates in trades and IT. Partnerships are
growing and we are working to survey past students to improve our programs. It is good
for current students to see graduates and understand salaries/career path.
● Speaking from experience in the mining industry, success comes from apprenticeship
opportunities. Working alongside skilled tradesperson is the best way to train. Training
should go beyond school. We do not have an employment problem, we have a people
problem (not enough people). We need people to live locally and send kids to local
schools.
● All new technologies started though apprenticeships.

24 | Inter-Agency Task Force for Economic Development in Southwest Virginia
Listening Session 2
Interagency Task Force to Support Economic Development in SWVA
Thursday, December 8, 2022
2-4 P.M.
UVA Wise, David J. Prior Convocation Center

Summary:
In the first meeting at UVA Wise, 28 members of the community attended to discuss the barriers
they see to economic development in SWVA. Kristen Dahlman gave an introduction and
overview of the taskforce. Doug Jackson started the discussion and asked for everyone to
introduce themselves and talk about what they see as a specific barrier related to the four factors
identified by the task force. For “extra credit,” Doug asked for each group to share what specific
project they are working on to address these barriers. Andrew took notes. The meeting lasted 2
hours. We were able to get around the room once with a brief time at the end to share final
thoughts (about 10 minutes).

Major Themes:
A common theme was the concern that projects are being planned that the public does not know
about. Folks are concerned that outside entities/developers are making decisions without public
input. The public learns about major developments at the last minute and folks must simply
accept the result.

On housing, several attendees expressed concern about housing supply, affordability, and
infrastructure for new housing developments. We heard some negative comments on mobile
homes. Folks said they are frequently overcrowded, lack proper services, and are not good
investments (wealth building tools).

On workforce, students in attendance said they would be more willing to stay in SWVA if there
were higher paying jobs. Others echoed this concern and added many low-paying jobs (minimum
wage) already exist. Students want to see examples of success and a positive career trajectory in
the region. Older individuals in the room expressed their desire to listen to young people and
hear their goals/desires for the future. We heard about efforts in workforce training at local
correctional facilities, at UVA Wise, and other local groups.

A final theme was a desire to build cohesiveness between groups in the region. Non-profit
organizations, local governments, and citizen groups are working toward the same goals but have
different visions. These groups may not be communicating to the best of their ability. Sessions
like this builds trust between groups.

Organizations Attending:
Town of Wise, Appalachian Community Action, Friends of SWVA, UVA Wise, GO Virginia,
Wise County, Big Stone Gap, Committee for Constitution and Environmental Trail, Appalachian
Voices, Clinch Coalition, New Economy Network, Stephens Community, Family Crisis Support
Services, Office of Senator Tim Kaine, Russell BOS, LENOWISCO PDC.

25 | Inter-Agency Task Force for Economic Development in Southwest Virginia
Public Comment

1. Introduction
What a barrier to economic development looks like here. Give one example in any of the
factor areas (workforce, housing, infrastructure, sites/business readiness). You can be as
specific or as general as you want. We’re looking for high-level here - sum it up in a
sentence. Extra credit question…Current strategy if you’re working one.

• We are experiencing a “taking” in the area from industries such as coal and lumber. We
are working on educating residents on their rights. Other issues include road
maintenance, housing for the elderly and retaining young workers in the area.
• There is too much corporate ownership of property.
• Big/regional ideas often come with only a few jobs for a few people. We need to focus on
childcare and transportation. Families have to commute far to get access to childcare.
• Everyday citizens hear about regional decisions late in the process. Communities are not
included in the process.
• The region needs people to defend air and water. We have an opportunity to get the
community engaged on environmental issues.
• Land use is an issue because much of it is owned by corporations. Land does not go on
the market. Localities need flexibility to set tax rates.
• The region should use its natural resources to bring economic development.
• Sites needs to be identified for housing development. We need to identify the most
suitable land to build more housing, this includes infrastructure for housing which should
be developed by local workers. Barriers include water/sewer costs and household waste.
EPA grants can be used for these environmental related projects. These issues need
engagement from community from the earliest point in the project.
• Last mile infrastructure funding is a barrier for housing development. Current projects
include a reused surface mine site being developed for a facility for sexually abused
residents and Permanent Supportive Housing.
• The region needs housing for young people to draw them to the area rather than driving
them away.
• A local organization, St. Paul Tomorrow is working to engage the community. They
operate based on a three leg stool model, 1) community, 2) environment, 3) businesses.
Internet is needed to finish projects. Housing (not mobile homes) supply needs to
increase, this adds value to community/tax base. We need homes for young family with
children. Localities should work to attract businesses in new energy marketplace because
the region has a culture of producing energy. One example is the Virtual Center for
Economic Development, an old coal facility that will train workers for new economy. We
should bring in partners to advance projects and teach other communities about lessons
learned.

26 | Inter-Agency Task Force for Economic Development in Southwest Virginia
• Organizations and stakeholders should have meaningful, realistic and unselfish
cooperation
• The taskforce’s study should focus on positives (not negatives). An example of a positive
is the over $500K investments in infrastructure projects. We are seeing more activity in
mixed use and middle-income projects. Another example is the Vet school in Lee County
which will be largest in U.S. Job in the area can be industrial and work-from-home. There
are lots of studies happening including those focusing on building more industrial sites.
There are lots of good workforce projects at community colleagues and at UVA Wise.
There is too much focus on the region’s decrease in population. This is a nationwide
trend in rural areas, and it is not as bad as media portrays. We are focusing on efforts to
help folks recover from opioid addiction and bring them back into workforce.
• All four focus areas [workforce, housing, infrastructure, and sites] are related. Permanent
Supportive Housing projects work in SWVA. These projects are expanding and help
individuals experiencing housing instability. They help individuals with set incomes or
with minimum wage job. The are need more family support services. Homeless and
eviction rates increasing and there in over-capacity in mobile homes. There is untreated
drug abuse and mental illness which requires more support services. Permanent
Supportive Housing includes efforts to treat health issues.
• Public transportation and childcare are needed to support the workforce. Childcare in the
area is not affordable and has poor hours. Current childcare support services leave gaps.
Both parents are working and driving far to drop kids off at daycare. Childcare helps
parents with their own personal wellness.
• The area needs transportation, health services, and higher paying jobs. There are already
low-level jobs. High paying jobs will help keep young people and recent graduates. There
is a gap between median income and housing prices.
• Students like the area but are afraid to start their life in SWVA. Jobs and housing are
concerns for recent graduates. Students need to see model of success to motivate them to
stay.
• There are several barriers to find and afford housing for young professionals in the area.
Mixed use development (living and businesses) is an opportunity for communities.
• In order to attract better paying jobs, we need locations for companies to come into. The
county is investing in site readiness including a new technology park and improving
infrastructure. Site readiness is a process and can take up to 3 years. We are missing
projects if business cannot have a ready site. VDEP can focus on the availability of
power, marketing and branding to attract business to the area.
• We are working on a housing market study for Wise County. Demand, location, and
affordability are being analyzed. Working on a free online entrepreneur course on how to
start small businesses and working on connecting folks to small business grants.
• GO Virginia is investing in all four areas. The Growth and Development plan shows the
investments made in workforce. Predicts we will see population trends reverse. Folks in

27 | Inter-Agency Task Force for Economic Development in Southwest Virginia
Wise County correctional facility are getting welding training and gaining employment
after time served. GOTEC is coming to middle schools and engaging kids with STEM
education. These efforts help current business and will help market the region.
• There is a project in Clintwood focused on affordable housing. Focus is on low/moderate
income. State funding is needed for that development.
• The Community Builders program at UVA Wise is working to place young professionals
through the region. A major barrier for these young people to stay is the availability of
housing.
• There is a lack of cohesiveness between groups (public, private, non-profit).
• Southwest Virginia has a low-cost living. This is an opportunity for folks to move here
for more affordable housing. Concerned with investors (not residents) buying up
housing/land.
• Internet access is limited - no fiber (still on copper wire). Community is applying for
grants for broadband funding.
• Concerned with the age of housing inventory (1976 average). We need to bring old
housing up to modern standards (i.e. energy efficiency). The state should look at
providing more financing options for new homebuyers. The financial opportunity center
does housing counseling - helping folks in their unique situation - helping educate young
people on renting/buying homes.
• It is hard to find sites for businesses to expand.
• Many organizations with different visions are working toward the same goals. Energy is
being divided and it hard to bring people together. The perceptions of other groups can
get in the way of working together. Communication helps bring down the barriers.
• Recommends the group read the book “Upstream” - it is about how to change culture
“upstream” by getting children involved with home and community work. This helps fix
negative associations.
• Young people should be brought together and talk about their wants/needs for their
future.
• We should support locals, the folks that have always been here. Issues like opioid
addiction are exacerbated by other issues like infrastructure and lack of jobs, etc.
• Networking can help break down trust issues.
• Land availability problems are due to outside corporate investment. The opioid crisis is
deliberately caused by outside organizations.
• $1.3 million has been distributed through PDCs to help with housing, homelessness, and
opioid crisis. Reach out to director@family-crisis.org
• Wise county has made improvements to drug-court. This includes 10-20 rooms in the
recovery house for folks to live to get back on their feet. Money is coming to help this
effort. “If we don't recover inside we will not fix our communities.” Rooms like this
builds trust. Socializing should be a priority.

28 | Inter-Agency Task Force for Economic Development in Southwest Virginia
• The Interagency Task Force should open the next meeting to public comments and hear
input on the 4 programs mentioned in the legislation.
• The culture of central Appalachian Mountains is collaborative. We need a cooperative
development of resources because of the concerns over outside developers coming in.
The region needs resources for local communities to find funding/grants/assistance. Take
a “holistic” approach.
• Communities need broadband access to help with the workforce. Recently took a work
from home job because of difficulty finding childcare. Fiber will help with employment
because of work from home options.

29 | Inter-Agency Task Force for Economic Development in Southwest Virginia
Listening Session 3
Interagency Task Force to Support Economic Development in SWVA
Thursday, December 8, 2022
6-8 P.M.
UVA Wise, David J. Prior Convocation Center

Summary:
In the second meeting at UVA Wise, 8 members of the community attended to discuss the
barriers they see to economic development in SWVA. Kristen Dahlman gave an introduction and
overview of the taskforce. Doug Jackson started the discussion and asked for everyone to
introduce themselves and talk about what they see as a specific barrier related to the four factors
identified by the task force. For “extra credit,” Doug asked for each group to share what specific
project they are working on to address these barriers. Andrew took notes. The meeting lasted
1:45. With the smaller group we were able to explore the outlined questions.

Major Themes:
“Making it easy for people to live in the region” in this conversation applied to young families,
recent graduates, professionals recruited to UVa-Wise and other businesses. It’s not easy to
afford quality housing because the stock is not there. Housing is a major limiter and combined
with other challenges of a rural mountain life including cell phone coverage, access to fresh
food, long travel times for work, healthcare, childcare, and other life necessities, “We don’t
make it easy to live here.”

Bright spots include solar / electrical apprenticeship training programs at Mountain Empire, the
Lonesome Pine Regional Industrial Facilities Authority, and the Abandoned Mine Land
Program, downtown mixed use projects completed and underway.

Housing is need in all categories, from incentives and support for homeowners to reinvest in
existing stock to new multifamily project to attract those who want to take advantage of the
region’s assets without caring for a yard. While the 175 to 250K range is needed, so are homes at
$100K. What would a ‘self-help’ housing program look like in the region?

On infrastructure, sewer investments should be a new priority to protect waterways and repair
aging systems. Additionally, strides have been made in technology for rural septic, but
regulatory structures may not be keeping up. Keeping up with expectations for a region and
quality of life point to ongoing broadband investments and electric car charging stations. Power
remains an issue both for small businesses in a rural setting and for larger site development.

Prioritizing and coming together on key strategies is essential. Outlook due to progress in towns,
word about new housing developments, and collaborative effort like the regional industrial
facilities authority make attendees optimistic. That’s also in the nature of a resilient region.
Optimism includes a sense that the region would be welcoming to people from other countries
making a home here.

30 | Inter-Agency Task Force for Economic Development in Southwest Virginia
Organizations Attending:
Coalfield Progress, Southern Appalachian Mountain Stewards, Clinch Coalition, Virginia
Department of Energy, Town of Wise, UVA Wise, VCEDA.

Public Comment

• There are limited sites for businesses to come into.
• Educational institutions (UVA Wise in particular) need housing for students, faculty and
staff. UVA Wise hired 80 employees in past year with plan to hire 30 soon. Had to pass
on folks for limited housing.
• Transportation is an important part of infrastructure. Supports the “innovation highway”
which will connect Route 58 and the Lonesome Pine Regional Business and Tech Park.
This will be an important corridor because parents/students at UVA Wise rarely pass
through town.
• When considering the downtown revitalization matching fund concept, the Task Force
should look at the Community Builder program as an example – gives young
professionals an opportunity to try new career in the region.
• We need to have more information sharing between agencies because things can fall
through the cracks. In local government, folks wear many different hats and they may not
have time or resources to pursue beneficial projects and funding. The renewed energy
between the town and UVA Wise is a positive. That relationship is an economic asset.
• The four focus areas are interwoven. Housing and workforce and very connected. The
history of coalfields shows that when the workforce came, then housing came. We need
to have the housing for the workforce that is coming with the big projects. In order to
attract a trained workforce, we need to have good housing with “all the bells and
whistles.” Infrastructure is very important for housing development. The abandoned land
mine program is a positive effort.
• Housing is expensive and in poor condition (cost and quality). There is low supply.
• The region needs good technical training for a better workforce. Many students go to
school but cannot get good paying jobs. The electrician apprentice program prepares
students for good paying full-time jobs.
• Agencies should communicate and share information. Please share information for the
Task Force with young people. Conversations with the future workforce are important.

31 | Inter-Agency Task Force for Economic Development in Southwest Virginia
Newsletters and traditional ways to communicate may need to change. We need to reach
young people and get them involved.
• Site preparation is not just for businesses, they can be for housing, mixed use, etc.

2. Infrastructure
What recent current infrastructure investment has resulted in industry or business
expansion or location?

• Project Interstation – This is the first project of the Regional Industrial Facilities Act
(RIFA). The project is utilizing prior mine sites which are dangerous situations. It is a
collaborative approach between localities and each county gets a portion of the tax
revenues.
• The Abandoned Mine Land (AML) program which provides federal funding to reclaim
abandoned mines.
• Broadband development is helping sell the region to businesses. “We have the same
speed as NOVA without the traffic.”

What untapped infrastructure do you see as an opportunity for economic development in
the region?
• We are working to identify where businesses are getting their products with the goal to
manufacture those products locally. The region can attract other businesses to fill those
needs.
• Electric car charging stations. More than 50% of people say they want their next car to be
electric.
• Broadband - progress has been made but there are areas of Wise and Lee Counties who
do not have access. Extremely rural, low income do not have access yet. Important for
work/school.
• Water/sewer in Lee Co. - there is opportunity for investment here. The regulatory
environment for sewer needs to be addressed or else rural areas will not grow. DHCD and
USDA should start funding sewer (they have helped a lot in the past with rural public
water). It is expensive but it is needed to protect waterways.
• Virginia Tech is publishing a study to build/maintain new septic systems. It is hard to get
permits to build new septic systems.

3. Housing
What housing success has the area seen recently?
• Big Stone Gap center (where Kirkland’s is) - mixed use, shops, housing. Benefits
students.

32 | Inter-Agency Task Force for Economic Development in Southwest Virginia
Are there current housing development projects in planned that are in need of resources?

• UVA Wise efforts to tear down townhouses and build mixed use (living and retail). This
is a way to get the campus to feel closer to town. Funding needed to rebuild. Need to plan
what exactly is needed to build.

Is there a particular type of housing that you believe should be addressed as a first
priority?

• All of the above - single family, townhouse, multifamily, condo…etc. Housing for all
incomes is needed (not just low-income). The region needs a variety to support
companies coming to region. We need starter homes and homes to age in.
• This region does not make is easy for young people to stay. Housing a big part of this
issue.
• Some big landlords overcharge and do not maintain properties. There is a general lack of
housing supply.
• Lack of childcare, transportation, healthcare are barriers for young people staying.
• Interested in estimating the number of people working in Wise County but not living
there. It is hard to gauge the real number due to living arrangements with family, etc.
• The area needs transitional shelters.
• Workforce housing - there are houses in the price ranges for higher-paid professionals,
but we need more for affordable options. This includes more supply under $100K. This
will help keep students in the area who are getting their first job.
• Addressing cost of construction - builders should focus on condo, townhomes…etc.
Buyers are not looking for huge homes. It is hard to find local workers to build housing.
Ww should invest in trade schools.
• Owning a home is financially beneficial for young people.
• The permitting and inspection issues in Scott County make it more expensive to build.
• The housing supply is aging. The area needs money and expert help for housing
rehabilitation.
• We should consider a loan or grant program to bring homes up to standards.
• Abandoned homes - communities need help to address these structures (resources, tax
strategies, etc.). Efforts should incentivize owners of these properties to fix/clean sites.

4. Business
What are the critical challenges your business faces today?

• Power outages in winter. Internet, utilities, rely on steady power.
• Owns a seed company - No laws in VA regarding rare and endangered plants. Cannot
legally sell inventory. Cross-border regulatory issues.
33 | Inter-Agency Task Force for Economic Development in Southwest Virginia
What is the geography of your customer base?

• Out of state due to legal challenges in Virginia.

What is the geography of your supply chain?

• Sourcing seeds locally, some materials from NC, WA, OR. Drives to terminal in
Kingsport to pick up supplies. City water.
• Promotes a successful business model for growing native plants, every small town can
adopt this model. Greenhouses for fruits and vegetables are expensive projects but
vertical farming is an opportunity. European companies are looking for regions with
reliable power in the US.

5. Workforce
What are the strongest tools or programs currently preparing the workforce?

• Electrician apprenticeship program - getting schools in other counties around coalfields
to sign-on.
• Lineman program - placing workers with power companies
• UVA Wise programs produce students with high technical skills. Needs to introduce
students to these programs. Efforts introduce middle school students to trades,
opportunity to expand.
• OSHA limits ability to bring hands-on experiences in trades to students.

Looking for a job?

• It was difficult finding jobs for graduates during pandemic. We should focus on the
trades, rather than liberal arts education. The advice given to young people does not align
with the jobs that are available.
• We need to align funding with the skills that need to be taught.
• Support all skills in education. One is not better than the other. The skills taught in
universities and trades schools are all positive.
• Address the issues with certification/license requirements.

How do you feel about the future. Is the economy growing/thriving?
Recovering/stabilizing? Or other?

• “Growing” because we are meeting in formats like this. We are looking at energy in a
new way. We are addressing housing, reversing the population loss trend, and people will

34 | Inter-Agency Task Force for Economic Development in Southwest Virginia
move here. There is an opportunity for a more diverse culture, encourage immigrants to
bring their talents here.
• “Growing” with a little bit of “other.” The region is making progress in Big Stone and
Norton. Global trends of income inequality and technological disruptions is a threat for
the next ten years. Predicts rapid displacement of workers across industries from
technology. Social cohesion can improve.
• “Other” - thriving not likely without real fundamental change. We need social change,
consideration for the environment, and addressing historical harms.
• “Recovering” but our trend line is going up. We tend to shy away from the dynamic
tension when groups begin to talk. We try to be outcome focused and need to try doing a
better job listening to each other. There is an opportunity to have good project managers
bring all stakeholders together. Managers are needed with the ability to build large
regional projects.

35 | Inter-Agency Task Force for Economic Development in Southwest Virginia
Listening Session 4
Interagency Task Force to Support Economic Development in SWVA
Wednesday, December 7, 2022
2-4 P.M.
Pennington Gap Community Center

Summary:
12 members of the community attended the 2-hour session hosted by the Town of Pennington
Gap. After a welcome by Town Manager Keith Harless, DHCD’s Matt Weaver gave a brief
overview of the project. The introductions included a collective listing of specific barriers to
economic development in Lee County. The introductions took about 30 minutes but resulted in a
pretty comprehensive litany of specific examples in the four focus areas. “They are right on,”
one participant said of the focus areas.

Many of the questions listed in the process were already touched on by the time the group got to
the deeper dive. There were points where it may have felt a little repetitive and the energy
dropped accordingly.

Major Themes:
Sewer was immediately identified as a limiting factor for housing development and site
readiness.

Specifically, much attention was placed on the western side of the county as an opportunity area
to relieve student housing pressures, maximize the tourism potential of the state and national
park, and attract original equipment manufacturers in the supply chain of the automotive industry
in Tennessee and Kentucky. There are no significant housing projects underway in the county.

Industry attraction limiters include lack of site readiness, quality of K12 facilities and limited
K12 programs in relation to surrounding states. Meanwhile small business development in a rural
setting suffers from both the requirements of infrastructure standards developed for denser
environments and limited grant and incentive opportunities. VCEDA’s Seed Grant Funding is a
bright spot.

Workforce limiters include a lack of full-person support for those in recovery, although a bright
spot project under development in Dickenson County based on a Kentucky project was
identified. Additionally trades and technical programs offered at the community college suffer
from the non-technical requirements of certification, even if a student gets a placement earned
through their studies. Shortages of trades and construction talent threaten advancements in
housing and business readiness.

Organizations Attending:
Appalachian Voices, Keokee residents, Ewing residents, Whistlepig Country Store, Friends of
SWVA, Pennington Partners, Pennington Gap residents, Clinch Coalition, VECEDA, Town of
Pennington Gap, Lee County.

36 | Inter-Agency Task Force for Economic Development in Southwest Virginia
Public Comment

• Water infrastructure is more plentiful than sewer. It is hard to get the funding for sewer.
Starting a commercial development without public sewer is a major challenge
• Quality and affordable housing is a need
• The veterinary school has driven up housing costs in western portion of Lee County,
primarily rental units - adding 100 additional students in 2023.
• Housing cost has more than doubled in recent years.
• Infrastructure and housing go hand in hand.
• There is a need for housing opportunities for middle-wage workers also. There needs to
be reinvestment in the existing housing stock.
• Private landfills detract from tourism and environmental assets, it is an obstacle to
housing and infrastructure development. Government policies create this problem.
• The region has opportunities for additional tourism marketing and attraction.
• Limited buildings and sites in the VCEDA region hurts business attraction efforts.
• There are opportunities for Lee County to capitalize on proximity to automotive
industries in neighboring states.
• VEDP’s is working to market large sites and there is a need to also market smaller sites
in SWVA. The region has opportunities in original equipment manufacturing (OEM).
• The region needs housing to attract larger economic development projects.
• There are great roads within the region.
• Younger people are leaving and this reduces the workforce.
• Opioid settlement funding should provide concrete actions and services for people to
participate in the recovery services.
• This process needs transparency. We need to include the community members and those
directly impacted by potential reports.
• Starter homes are a need.
• Childcare is lacking. This is a deterrent for those potentially moving into the county as
well as parents trying to remain in the workforce.
• We should identify resources to connect community members and build staying power.
• There are infrastructure rules that are not effective for rural areas without sewer. I can be
a challenge working with the multiple agencies required to develop the infrastructure
project.

37 | Inter-Agency Task Force for Economic Development in Southwest Virginia
• The state’s requirements for contractors limits project readiness. This problem would be
solved with reduced classification requirements.
• A barrier to economic development is aging infrastructure. We face challenges updating
and maintaining these properties for potential future commercial growth.
• Cellular infrastructure and the limited coverage area is an obstacle.
• Student housing prices are out-pricing local residents. The growth of the veterinary
school will increase the demand for housing units.
• Boones Ridge housing development in KY on abandoned strip mine is an example of the
development we need.
• Would like to see local partners invest in the community rather than corporate investors.
• Actions needs to attract housing developers. We need to provide potential project
opportunities.
• Need for more community involvement in these processes.
• Downtown revitalization in Jonesville is needed.

2. Infrastructure
What untapped infrastructure do you see as an opportunity for economic development in
the region?

• State Park and National Park infrastructure is needed. These areas are limited in what
activities and amenities can be offered because they do not have sewer systems.
• Tourism programs and development could be increased to draw state and national park
visitors into the communities.
• There is a limited number of restaurants and hotels for visitors. Sewer capacity is often
the main barrier.
• There are cultural heritage education opportunities because the area has many
Appalachian cultural assets. These opportunities can be targeted specifically to students.

What aligned investments would put that infrastructure to work creating jobs and
boosting the economy?

• Most state and federal grant opportunities are for larger development or projects and they
are very limited or non-existent for small business development. Small businesses can
support as many employees as the large industries and can be more resilient over time.
• More funding for small business developments because they are the backbone of the
community. An example is the seed capital program at VCEDA.
• Grant programs are often too involved and onerous to complete for small businesses –
businesses need someone that knows the process and speaks the program language
• We can work to identify who within the county is asking for grant money and how to best
educate them on funding availability.
38 | Inter-Agency Task Force for Economic Development in Southwest Virginia
How else is infrastructure restricting investments?
• Lack of internet, transportation, wastewater, etc.
• Cellular coverage can be an obstacle – it is a safety issue at some tourism attractions.
• School system educational offerings may not match surrounding states.
• Schools are offering virtual educational classes due to staff shortages.
• Region should increase utilization of vocational and technical education and prepare the
school system for potential future growth

3. Housing
In what instances has a lack of housing products constrained economic or industrial
attraction?

• Building code officials are trained for statewide codes which are not always applicable
for rural areas - often local issues are not in-line with state training and enforcement.

What specific populations are in need of additional housing options?

• Students, young families, workforce housing.
• More opportunities for in-home eldercare.
• Affordable housing- Due to lack of affordable options, there are concerns with residents
inhabiting homes that do not meet state building code.
• Programs to assist with housing rehabilitation are not plentiful or widely known.
• The region has opportunities for short term rental housing.

What housing success has the area seen recently?

• A request to create a pilot project for a public/private partnership to develop
comprehensive housing - Public funds was used to put in the infrastructure to offset the
developers’ costs for housing development.

4. Sites/Business Readiness
What factors limit the development of available sites?

• Road access into industrial areas can be challenging and a barrier to site development –
VDOT's regulatory process limits development of roads.
• The area needs additional power stations and power capacities
• Industry recruitment
• Electrification and energy storage industry requirements
• There are vertical farming opportunities on available sites.
39 | Inter-Agency Task Force for Economic Development in Southwest Virginia
What limits the interest of site selectors and industry in the region?

• Large absentee organizations holding larger percentage of land in SWVA

5. Workforce
How stable is the labor force? – Do you see it growing or shrinking?

• Not stable - utilization of government subsistence funding creates challenges with
attracting workforce
• Rural areas have limited workforce inherently compared to urbanized areas, especially
with increasing numbers of retirees.
• The proximity to job locations has created/evolved a more mobile workforce.
• Water and sewer operators are challenging to find. Also, hard to fill technical trades
positions.
• Having targeted industries for technical training programs is critical to grow these jobs
and industries.
• Shrinking workforces is apparent from the US Census data showing declining population.
• Community Colleges do a good job with technical trainings but often the trainees leave
the programs early for a paying job with industries that need workers.
• There should be incentives for technical skill achievement once hired by
company/industry.
• Availability of land in eastern portion of Lee County is limited - land prices are
increasing due to increased purchase prices from out-of-state buyers.
• The quiet peaceful beauty of the area is an attraction for out-or-state families

Businesses, where do you recruit from? What specific skills, certifications, or
backgrounds are you looking for?

• Teachers are interacting with businesses and learning what is applicable for current
trends/needs.
• United Way is an example.
• Remote education limits student knowledge of available careers or jobs.
• Travel time limits the time for programming.
• Looking for skills in solar, welding, IT.
• Look for a workforce that wants management responsibilities.

40 | Inter-Agency Task Force for Economic Development in Southwest Virginia
What level of success do you have?

• Turning opioid recovery programs into workforce possibilities in Dickenson County.
• Attracting out-of-state attention due to beauty and quietness of the area.

If you know anyone struggling to find employment, what barriers do you see preventing
their success?

• The county is looking for building trades positions – it is in the beginning phases but the
last effort took over 1 year

What potential investments have we not asked about that are critical for a strong
economy in SWVA?

• The area needs competitive healthcare.
• The region needs school infrastructure - physical investments to improve heating sources
and conditions.

41 | Inter-Agency Task Force for Economic Development in Southwest Virginia

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