Transactions of the Development Opportunity Fund (COF), Third Quarter of the 2025 Fiscal Year

Summary

This April 23, 2025 letter is addressed to the chairs of the Senate Finance and Appropriations Committee, the House Appropriations Committee and the House Finance Committee. It is a quarterly report on the Development Opportunity Fund (COF) as required by the Code of Virginia. As of March 31, 2025, a total of $435,297,046 had been appropriated to the Fund over time. For the third quarter of the 2025 fiscal year, a total of $3,575,000 was committed from the Opportunity Fund to assist five projects, with total committed job creation of 835 and committed investment totaling $524.1 million. It also reports disbursements of $463,405 to the City of Virginia Beach for Acoustical Sheetmetal.

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Full text

April 23, 2025



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
      § 2.2-115(G)

Senator and Delegates:

I am writing to provide documentation of the transactions of the
Development Opportunity Fund (COF) which have occurred during the third quarter of
the 2025 fiscal year as required by § 2.2-115(G) of the Code of Virginia.

As of March 31, 2025, a total of $435,297,046 had been appropriated to the Fund over
time. As of March 31, 2025, the Cardinal Financial System cash balance was
$133,952,282, and the balance available for future commitments totaled $44,968,098.
Taking into account COF preapprovals of $30,530,000 made by the Secretary of
Commerce and Trade, the available balance is $14,438,098. Generally, 40% of
preapprovals, or $12,212,000, do not move forward, and the available balance is more
likely approximately $26,000,000. Active grants awarded since the inception of the Fund
total 720.

For the third quarter of the 2025 fiscal year, ended March 31, 2025, a total of
$3,575,000 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 835,
while committed investment totaled $524.1 million. Summaries on these projects follow:
Money Committee Chair
April 23, 2025
Page 2


  1. Pulaski County: Patton Logistics, a logistics and warehousing provider, will
     expand its existing facility in Pulaski County. This expansion will create 25 new
     jobs and an investment of $10.0 million (amount of grant: $100,000; use of grant:
     building construction; other grants awarded: Virginia Jobs Investment Program
     grant of $22,500, Economic Development Access Program grant of $47,500,
     Enterprise Zone Job Creation grant of $60,000, Enterprise Zone Real Property
     Investment grant of $200,000; local match: $850,000; anticipated completion
     date: March 2028; average wage of new jobs: $46,760; prevailing average wage:
     $52,009). This project has been announced.

  2. Carroll County: Oasthouse Ventures, a business development firm specializing
     in low-carbon greenhouses, will locate a new greenhouse facility in Carroll
     County. This location will create 118 new jobs and an investment of $104.8 million
     (amount of grant: $550,000; use of grant: building construction; other grants
     awarded: Agriculture and Forestry Industries Development grant of
     $250,000, Enterprise Zone Job Creation grant of $456,000, Enterprise Zone Real
     Property Investment grant of $200,000; local match: $1,480,117; anticipated
     completion date: March 2028; average wage of new jobs: $71,105; prevailing
     average wage: $39,852). This project has been announced.

  3. Not Yet Announced.

  4. Botetourt County: Munters, a manufacturer of refrigeration and cooling
     equipment, will expand its existing facility in Botetourt County. This expansion will
     create 270 new jobs and an investment of $30.0 million (amount of grant:
     $1,000,000; use of grant: building construction; other grants awarded: Virginia
     Jobs Investment Program grant of $202,500, Virginia Investment Performance
     grant of $500,000, Economic Development Access Program grant of $240,000;
     local match: $1,036,500; anticipated completion date: March 2028; average wage
     of new jobs: $56,236; prevailing average wage: $56,231). This project has been
     announced.
Money Committee Chair
April 23, 2025
Page 3


     5. Not Yet 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 2025 fiscal year, actual disbursements from the Fund totaling
$463,405 were made to the City of Virginia Beach for Acoustical Sheetmetal.

Sincerely,



Jason El Koubi
President and Chief Executive Officer

JRE:kme

Enclosures

cc     The Honorable Juan Pablo Segura
       Secretary of Commerce and Trade


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