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Quarterly Report on Commonwealth's Development Opportunity Fund (COF) (April 25, 2024)

Summary

This is a letter dated April 25, 2024 from the President and Chief Executive Officer to The Honorable L. Louise Lucas, The Honorable Luke E. Torian and The Honorable Vivian E. Watts, with the subject Quarterly Report on Commonwealth's Development Opportunity Fund (COF). It documents transactions of the Fund in the third quarter of the 2024 fiscal year. As of March 31, 2024, a total of $411,070,506 had been appropriated to the Fund over time, and the balance available for future commitments totaled $39,764,886. For the quarter, a total of $2,950,000 was committed to assist seven projects, among them CoStar in Arlington County (grant of $1,250,000). Actual disbursements totaling $888,400 included payments to Henrico County for Moore OM and the City of Petersburg for Civica.

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“Quarterly Report on Commonwealth's Development Opportunity Fund (COF) (April 25, 2024).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-rd253-83cb1ea972/, SHA-256 d405025f5314894ed658a109385c4343c77766fda98aa3e4720dfcd6aa946f9a.

Full text

VEDPIS·
       April 25, 2024



       The Honorable L. Louise Lucas                    The Honorable Luke E. Torian
       Chair                                            Chair
       Senate Finance and Appropriations                House Appropriations Committee
         Committee                                      4222 Fortuna Plaza, Suite 659
       P.O. Box 700                                     Dumfries, Virginia 22025
       Portsmouth, Virginia 23705

       The Honorable Vivian E. Watts
       Chair
       House Finance Committee
       8717 Mary Lee Lane
       Annandale, Virginia 22003

        RE:       Quarterly Report on Commonwealth's Development Opportunity Fund (COF) per
                  § 2.2-11 S(G)

        Senator 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 2024 fiscal year as required by § 2.2-115(G) of the Code of Virginia.

       As of March 31, 2024, a total of $411,070,506 had been appropriated to the Fund over
       time. As of March 31, 2024, the Cardinal Financial System cash balance was
       $110,727,327, and the balance available for future commitments totaled $39,764,886.
       Taking into account COF preapprovals of $20,883,750 made by the Secretary of
       Commerce and Trade, however, the available balance is $18,881,136. Generally, 40%
       of preapprovals, or $8,353,500, do not move forward, and the available balance is more
       likely approximately $27,000,000. Active grants awarded since the inception of the Fund
       total 706.

        For the third quarter of the 2024 fiscal year, ended March 31, 2024, a total of
        $2,950,000 was committed from the Opportunity Fund to assist seven projects
        relocating to or expanding in the state. Total committed job creation of these projects
        was 1 ,135, while committed investment totaled $400.3 million. Summaries on these
        projects follow:




901 E. Cary Street, Suite 900
Richmond, Virginia 23219
VEDP.org
Money Committee Chair
April 25, 2024
Page 2


  1. City of Suffolk: Solenis will expand its existing specialty chemical and water
     treatment facility in the City of Suffolk. This expansion will create 34 new jobs
     and an investment of $193.0 million (amount of grant: $275,000; use of grant:
     building construction; other grants awarded: Economic Development Access
     Program grant of $700,000, Rail Industrial Access Program grant of $450,000;
     local match: $1,250,000; anticipated completion date: December 2027; average
     wage of new jobs: $81,088; prevailing average wage: $59,035). This project has
     been announced.

  2. Not Yet Announced.

  3. Orange County: Aerojet Rocketdyne, a manufacturer of guided missiles and
     space vehicles, will expand its existing facility in Orange County. This expansion
     will create 80 new jobs and an investment of $41.3 million (amount of grant:
     $540,000; use of grant: site improvements and building construction; other grants
     awarded: Virginia Jobs Investment Program grant of $72,000; local match:
     $540,000; anticipated completion date: December 2026; average wage of new
     jobs: $56,667; prevailing average wage: $45,998). This project has been
     announced.

  4. Rockbridge County: Modine, a manufacturer of industrial cooling equipment, will
     expand its existing facility in Rockbridge County. This expansion will create 211
     new jobs and an investment of $18.1 million (amount of grant: $470,000; use of
     grant: building construction; other grants awarded: none; local match: $470,000;
     anticipated completion date: March 2029; average wage of new jobs: $47,711;
     prevailing average wage: $41,058). This project has been announced.

  5. Arlington County: CoStar will relocate and expand its corporate headquarters to
     Arlington County. This relocation/expansion will create 650 new jobs and an
     investment of $20.0 million (amount of grant: $1,250,000; use of grant: building
     upfits; other grants awarded: Virginia Jobs Investment Program grant of
     $150,000, Virginia Economic Development Incentive Grant of $3,500,000; local
     match: $17,500,000; anticipated completion date: March 2027; average wage of
     new jobs: $185,000; prevailing average wage: $115,340). This project has been
     announced.
Money Committee Chair
April 25, 2024
Page 3


     6. City of Suffolk: FreezPak will locate a new refrigerated warehousing and storage
        facility in the City of Suffolk. This location will create 80 new jobs and an
        investment of $77.5 million (amount of grant: $175,000; use of grant: building
        construction; other grants awarded: Virginia Jobs Investment Program grant of
        $56,000, Port Economic and Infrastructure Development grant of $35,000; local
        match: $175,000; anticipated completion date: March 2027; average wage of
        new jobs: 39 at $49,487 and 41 at $40,000; prevailing average wage: $58,072).
        This project has been announced.

     7. City of Danville: EPL, a manufacturer of laminate tubes, will expand its existing
        facility in the City of Danville. This expansion will create 24 new jobs and an
        investment of $37.4 million (amount of grant: $90,000; use of grant: building
        improvements; other grants awarded: Virginia Jobs Investment Program
        Retraining grant of $62,400, Enterprise Zone Job Creation grant of $6,000,
        Enterprise Zone Real Property Investment grant of $100,000; local match:
        $333, 112; anticipated completion date: March 2030; average wage of new jobs:
        $42,750; prevailing average wage: $47,163). 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 third quarter of the 2024 fiscal year, actual disbursements from the Fund totaling
$888,400 were made to Henrico County for Moore OM, Henry County for Crown
Holdings, Henrico County for EAB, and the City of Petersburg for Civica.

Sincerely,

J\ o \·
JaLiKoubi
President and Chief Executive Officer

JRE:kme

Enclosures

cc      The Honorable Caren Merrick
        Secretary of Commerce and Trade

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