Quarterly Report on Commonwealth's Development Opportunity Fund (COF) (October 30, 2024)

Summary

This is a letter dated October 30, 2024 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 first quarter of the 2025 fiscal year. As of September 30, 2024, a total of $432,444,210 had been appropriated to the Fund over time, and the balance available for future commitments totaled $48,163,512. For the quarter, a total of $4,611,210 was committed to assist ten projects, among them Kongsberg Defense & Aerospace in James City County (grant of $1,500,000, 187 new jobs). Actual disbursements were made to Scott County for Tempur, Pittsylvania County for Tyson Foods, and Westmoreland County for Carry-On Trailer.

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“Quarterly Report on Commonwealth's Development Opportunity Fund (COF) (October 30, 2024).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-rd742-18163961a3/, SHA-256 7c7ce3c35638d12605aaedb0200b8ca6a4c871a67d2f893fc144eff827a22bb3.

Full text

October 30, 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 first quarter of
the 2025 fiscal year as required by § 2.2-11 S(G) of the Code of Virginia.

As of September 30, 2024, a total of $432,444,210 had been appropriated to the Fund
over time. As of September 30, 2024, the Cardinal Financial System cash balance was
$131,530,851, and the balance available for future commitments totaled $48,163,512.
Taking into account COF preapprovals of $18,452,800 made by the Secretary of
Commerce and Trade, the available balance is $29,710,712. Generally, 40% of
preapprovals, or $7,381,120, do not move forward, and the available balance is more
likely approximately $37,000,000. Active grants awarded since the inception of the Fund
total 716.

For the first quarter of the 2025 fiscal year, ended September 30, 2024, a total of
$4,611,210 was committed from the Opportunity Fund to assist ten projects relocating
to or expanding in the state. Total committed job creation of these projects was 1,156,
while committed investment totaled $351.0 million. Summaries on these projects follow:

901 E. Cary Street, Suite 900
Richmond. Virginia 23219
VEDP.org
Money Committee Chair
October30, 2024
Page2

1. Mecklenburg County: Shalag, a manufacturer of non-woven fabric, will locate a
new facility in Mecklenburg County. This location will create52 new jobs and an
investment of $16.6 million (amount of grant: $117,460; use of grant: building
upfits; other grants awarded: Virginia Jobs Investment Program grant of $23,400,
Enterprise Zone Job Creation grant of $136,000, Enterprise Zone Real Property
Investment grant of $100,000; local match: $117,460; anticipated completion
date: September2029; average wage of new jobs: $53,077; prevailing average
wage: $46,606). This project has been announced.

2. Albemarle County: Afton Scientific, a manufacturer of sterile injectable
pharmaceuticals, will expand its existing facility in Albemarle County. This
location will create201 new jobs and an investment of $202.4 million (amount of
grant: $540,000; use of grant: building construction; other grants awarded: none;
local match: $540,000; anticipated completion date: September2029; average
wage of new jobs: 70 at $70,414 and131 at $52,397; prevailing average wage:
$70,267). This project has been announced.

3. Pittsylvania County: RBW Car, a manufacturer of motor vehicles, will locate a
new facility in Pittsylvania County. This location will create144 new jobs and an
$8.0 million inves tment (amount of grant: $500,000; use of grant: building upfits;
other grants awarded: Virginia Jobs Investment Program grant of $129,600,
Enterprise Zone Job Creation grant of $281,800, Enterprise Zone Real Property
Investment grant of $100,000; local match: $571,944; anticipated completion
date: September2029; average wage of new jobs: $50 ,868; prevailing average
wage: $46,915). This project has been announced.

4 . Scott County: VFP, a manufacturer of prefabricated metals, will expand its
existing facility in Scott County. This expansion will create50 new jobs and an
investment of $5.0 million (amount of grant: $75,000; use of grant: building
improvements; other grants awarded: Enterprise Zone Job Creation grant of
$67,300, Enterprise Zone Real Property Investment grant of $100,000; local
match: $127,000; anticipated completion date: September2027; average wage
of new jobs: $36,870; prevailing average wage: $42,649). This project has been
announced.

5. Not Yet Announced.
Money Committee Chair
October 30, 2024
Page 3

6. Pittsylvania County: TECHnista, an educational consulting company, will
establish a new facility in Pittsylvania County. This location will create 15 new
jobs and invest $1.6 million {amount of grant: $50,000; use of grant: building
construction and improvements; other grants awarded: Enterprise Zone Job
Creation grant of $41,600; local match: $61,250; anticipated completion date:
September 2027; average wage of new jobs: $75,000; prevailing average wage:
$46,915). This project has been announced.

7. Not Yet Announced.

8. Not Yet Announced.

9. James City County: Kongsberg Defense & Aerospace, a global technology and
defense corporation, will locate a new facility in James City County. This location
will create 187 new jobs and invest $70.9 million {amount of grant: $1,500,000;
use of grant: building construction; other grants awarded: Virginia Investment
Performance grant of $750,000; local match: $1,500,000; anticipated completion
date: September 2027; average wage of new jobs: $78,989; prevailing average
wage: $51,705). This project has been announced.

10. Fairfax County: CMC Electronics, a manufacturer of aircraft parts and auxiliary
equipment, will locate a new facility in Fairfax County. This location will create 89
new jobs and invest $5.0 million (amount of grant: $300,000; use of grant:
workforce training and building improvements; other grants awarded: Virginia
Jobs Investment Program grant of $66,750; local match: $300,000; anticipated
completion date: December 2028; average wage of new jobs: $129,213;
prevailing average wage: $107,563). This project has been announced.
Money Committee Chair
October 30, 2024
Page4

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

For the first quarter of the 2025 fiscal year, actual disbursements from the Fund totaling
$1,414,080were made to Scott County for Tempur, Pittsylvania County for Tyson
Foods, and Westmoreland County for Carry-On Trailer.

Sincerely,

\-- --·Q
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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