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

Summary

A July 27, 2023 letter from Jason El Koubi, President and Chief Executive Officer, to the co-chairs of the Senate Finance and Appropriations Committee and the chairs of the House Appropriations Committee and the House Finance Committee. It is the quarterly report on the Commonwealth's Development Opportunity Fund (COF) under § 2.2-115(G) for the fourth quarter of the 2023 fiscal year. The letter states that $390,493,916 had been appropriated to the Fund as of June 30, 2023, and that $3,182,750 was committed in the quarter to assist five projects, with committed job creation of 618 and committed investment of $73.9 million. Project summaries follow, including a $488,450 grant for Weidmuller in Chesterfield County.

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“Quarterly Report on Commonwealth's Development Opportunity Fund (COF), Fourth Quarter of the 2023 Fiscal Year.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-rd350-e8a71b9147/, SHA-256 2419ee9571d764515944c2e68ca167e5282c15f536c88759c4f7108aa5035a59.

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DocuSign Envelope ID: B7E9C61B-7406-4674-990E-32E14430846F

July 27, 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 fourth quarter of
the 2023 fiscal year as required by § 2.2-115(G) of the Code of Virginia.

As of June 30, 2023, a total of $390,493,916 had been appropriated to the Fund over
time. As of June 30, 2023, the Cardinal Financial System cash balance was
$102,019,921, and the balance available for future commitments totaled $43,960,396.
Taking into account COF preapprovals of $35,200,179 made by the Secretary of
Commerce and Trade, however, the available balance is $8,760,217. Generally, 40% of
preapprovals, or $14,080,072, do not move forward, and the available balance is more
likely approximately $23,000,000. Active grants awarded since the inception of the Fund
total 700.

For the fourth quarter of the 2023 fiscal year, ended June 30, 2023, a total of
$3,182,750 was committed from the Opportunity Fund to assist five projects relocating
to or expanding in the state. Total committed job creation of these projects was 618,
while committed investment totaled $73.9 million. Summaries on these projects follow:
DocuSign Envelope ID: B7E9C61B-7406-4674-990E-32E14430846F

Money Committee Chair
July 27, 2023
Page 2

1. Chesterfield County: Weidmuller, a manufacturer of electronic components, will
expand its existing facility in Chesterfield County. This project will create 96 new
jobs and an investment of $16.4 million (amount of grant: $488,450; use of grant:
building construction; other grants awarded: Port Economic and Infrastructure
Development grant of $48,000; local match: $488,450; anticipated completion
date: March 2026; average wage of new jobs: $73,467; prevailing average wage:
$55,333). This project has been announced.

2. City of Lynchburg: Delta Star, a manufacturer of mobile transformers and
substations, will expand its existing facility in the City of Lynchburg. This location
will create 149 new jobs and an investment of $30.2 million (amount of grant:
$850,000; use of grant: building construction; other grants awarded: Enterprise
Zone Job Creation grant of $539,200, Enterprise Zone Real Property Investment
grant of $200,000; local match: $850,000; anticipated completion date: June
2026; average wage of new jobs: $67,450; prevailing average wage: $53,026).
This project has been announced.

3. Pulaski County: Grucci Holdings Corp., a manufacturer of components for
pyrotechnic military simulations, will locate a new facility in Pulaski County. This
location will create 45 new jobs and an investment of $5.5 million (amount of
grant: $212,000; use of grant: building upfits and workforce training; other grants
awarded: Virginia Jobs Investment Program grant of $24,000, Enterprise Zone
Job Creation grant of $114,800; local match: $400,000; anticipated completion
date: June 2028; average wage of new jobs: $49,851; prevailing average wage:
$47,473). This project has been announced.

4. City of Virginia Beach: ZIM American Integrated Shipping will relocate its
existing headquarters from the City of Norfolk to the City of Virginia Beach. This
project will create 307 new jobs and an investment of $16.4 million (amount of
grant: $1,497,300; use of grant: building upfits; other grants awarded: Virginia
Jobs Investment Program grant of $177,300, Port Economic and Infrastructure
Development grant of $426,000; local match: $1,500,000; anticipated completion
date: June 2028; average wage of new jobs: $67,708; prevailing average wage:
$51,311). This project has been announced and was approved by the MEI
Commission due to the relocation of the facility from one Virginia locality to
another.
DocuSign Envelope ID: B7E9C61B-7406-4674-990E-32E14430846F

Money Committee Chair
July 27, 2023
Page 3

5. Greensville County: Heyco-Werk USA LLC, an automotive parts supplier, will
expand its existing facility in Greensville County. This location will create 21 new
jobs and an investment of $5.4 million (amount of grant: $135,000; use of grant:
building upfits; other grants awarded: Virginia Jobs Investment Program grant of
$18,900, Enterprise Zone Job Creation grant of $26,400; local match: $210,000;
anticipated completion date: June 2027; average wage of new jobs: $48,429;
prevailing average wage: $53,158). This project has been announced.

For the projects that have been announced, I am enclosing a profile and analysis and
recommendation by the Virginia Economic Development Partnership.

For the fourth quarter of the 2023 fiscal year, actual disbursements from the Fund
totaling $441,975 were made to the City of Petersburg for AMPAC, the City of
Richmond for GSK, and the City of Hampton for Huntington-Ingalls.

Sincerely,

Jason El Koubi
President and Chief Executive Officer

JRE:kme

Enclosures

cc The Honorable Caren Merrick
Secretary of Commerce and Trade

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