Quarterly Report on Commonwealth's Development Opportunity Fund — VEDPI Letter (June 2, 2023)

Summary

This is a letter dated June 2, 2023 on VEDPI letterhead to the chairs of the Senate Finance and Appropriations Committee, the House Appropriations Committee and the House Finance Committee, with the subject Quarterly Report on Commonwealth's Development Opportunity Fund (COF) per § 2.2-115(G). It states that as of March 31, 2023 a total of $387,986,134 had been appropriated to the Fund and the Cardinal Financial System cash balance was $84,069,114. For the third quarter of the 2023 fiscal year, a total of $940,000 was committed from the Opportunity Fund to four projects, summarized for Chesterfield County, Bland County, the City of Norfolk and the City of Salem. Actual disbursements from the Fund totaling $3,219,202 were made to the City of Petersburg, Rockbridge County and Stafford County.

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VEDPI
        June 2, 2023



        The Honorable Janet D. Howell                   The Honorable George L. Barker
        Co-Chair                                        Co-Chair
        Senate Finance and Appropriations               Senate Finance and Appropriations
          Committee                                       Committee
        P.O. Box 2608                                   P.O. Box 10527
        Reston, Virginia 20195                          Alexandria, Virginia 22310

        The Honorable Barry D. Knight                   The Honorable Roxann L. Robinson
        Chair                                           Chair
        House Appropriations Committee                  House Finance Committee
        1852 Mill Landing Road                          P.O. Box 4627
        Virginia Beach, Virginia 23457                  Midlothian, Virginia 23112

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

        Senators and Delegates:

        I am writing to provide documentation of the transactions of the Commonwealth's
        Development Opportunity Fund (COF) which have occurred during the third quarter of
        the 2023 fiscal year as required by§ 2.2-115(G) of the Code of Virginia.

        As of March 31, 2023, a total of $387,986,134 had been appropriated to the Fund over
        time. As of March 31, 2023, the Cardinal Financial System cash balance was
        $84,069,114, and the balance available for future commitments totaled $38,748,139.
        Taking into account COF preapprovals of $12,537,529 made by the Secretary of
        Commerce and Trade, however, the available balance is $26,210,610. Generally, 40%
        of preapprovals, or $5,015,012, do not move forward, and the available balance is more
        likely approximately $31,000,000. Active grants awarded since the inception of the Fund
        total 706.

        For the third quarter of the 2023 fiscal year, ended March 31, 2023, a total of $940,000
        was committed from the Opportunity Fund to assist four projects relocating to or
        expanding in the state. Total committed job creation of these projects was 249, while
        committed investment totaled $71 .3 million. Summaries on these projects follow:




901 E. Cary Street, Suite 900
Richmond, Virginia 23219
VEDP.org
Money Committee Chair
June 2, 2023
Page 2


   1. Chesterfield County: Church & Dwight, a manufacturer of laundry scent
      boosters, will expand its existing facility in Chesterfield County. This project will
      create 53 new jobs and an investment of $27.0 million (amount of grant:
      $300,000; use of grant: building improvements; other grants awarded: Port
      Economic and Infrastructure Development grant of $45,000; local match:
      $300,000; anticipated completion date: March 2026; average wage of new jobs:
      $55,559; prevailing average wage: $54,301). This project has been announced.

   2. Bland County: Wilderness Asset Holdings will expand its artesian water
      bottling facility in Bland County. This location will create 30 new jobs and an
      investment of $4.3 million (amount of grant: $90,000; use of grant: building
      improvements; other grants awarded: Virginia Jobs Investment Program grant of
      $27,000; local match: $90,000; anticipated completion date: March 2026;
      average wage of new jobs: $42,867; prevailing average wage: $48,416). This
      project has been announced.

   3. City of Norfolk: Bauer Compressors, a manufacturer of high pressure
      compressors, will expand its existing facility in the City of Norfolk. This location
      will create 47 new jobs and an investment of $7.4 million (amount of grant:
      $50,000; use of grant: building construction and improvements; other grants
      awarded: Virginia Jobs Investment Program grant of $35,250, Enterprise Zone
      Job Creation grant of $110,400, Enterprise Zone Real Property Investment grant
      of $100,000; local match: $54,152; anticipated completion date: March 2027;
      average wage of new jobs: 20 at $55,376 and 27 at $36,505; prevailing average
      wage: $64,570). This project has been announced.

   4. City of Salem: STS Plastics, a manufacturer of composite components for
      automotive and truck cabs, will locate a new facility in the City of Salem. The
      company will create 119 new jobs and invest $32.6 million (amount of grant:
      $500,000; use of grant: building upfits; other grants awarded: none; local match:
      $500,000; anticipated completion date: March 2027; average wage of new jobs:
      $49,569; prevailing average wage: $56,216). This project has been announced.

For the projects that have been announced, I am enclosing a profile and analysis and
recommendation by the Virginia Economic Development Partnership.
Money Committee Chair
June 2, 2023
Page 3


For the third quarter of the 2023 fiscal year, actual disbursements from the Fund totaling
$3,219,202 were made to the City of Petersburg for Civica, Rockbridge County for
Modine, and Stafford County for Exel.

Since::_L-t_ \ 



JIKoubi
President and Chief Executive Officer

JRE:kme

Enclosures

cc    The Honorable Caren Merrick
      Secretary of Commerce and Trade


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