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

Summary

This July 16, 2025 letter, addressed to the chairs of the Senate Finance and Appropriations Committee, the House Appropriations Committee and the House Finance Committee, is a quarterly report on the Development Opportunity Fund (COF) for the fourth quarter of the 2025 fiscal year. As of June 30, 2025, a total of $438,384,624 had been appropriated to the Fund over time, and the balance available for future commitments totaled $44,159,056. A total of $8,505,000 was committed from the Opportunity Fund to assist eight projects, with total committed job creation of 1,190 and committed investment totaling $691.6 million. One summary describes Delta Star, a specialty transformer manufacturer, expanding in the City of Lynchburg with 300 new jobs and a $35.0 million investment.

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July 16, 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 fourth quarter of
the 2025 fiscal year as required by § 2.2-115(G) of the Code of Virginia.

As of June 30, 2025, a total of $438,384,624 had been appropriated to the Fund over
time. As of June 30, 2025, the Cardinal Financial System cash balance was
$146,735,919, and the balance available for future commitments totaled $44,159,056.
Taking into account COF preapprovals of $38,720,000 made by the Secretary of
Commerce and Trade, the available balance is $5,439,056. Generally, 40% of
preapprovals, or $15,488,000, do not move forward, and the available balance is more
likely approximately $21,000,000. Active grants awarded since the inception of the Fund
total 720.

For the fourth quarter of the 2025 fiscal year, ended June 30, 2025, a total of
$8,505,000 was committed from the Opportunity Fund to assist eight projects relocating
to or expanding in the state. Total committed job creation of these projects was 1,190,
while committed investment totaled $691.6 million. Summaries on these projects follow:
Money Committee Chair
July 16, 2025
Page 2


  1. City of Lynchburg: Delta Star, a specialty transformer manufacturer, will expand
     its existing facility in the City of Lynchburg. This expansion will create 300 new
     jobs and a $35.0 million investment (amount of grant: $2,300,000; use of grant:
     building construction; other grants awarded: Enterprise Zone Job Creation grant
     of $852,800, Enterprise Zone Real Property Investment grant of $200,000; local
     match: $2,360,000; anticipated completion date: March 2030; average wage of
     new jobs: $66,400; prevailing average wage: $57,250). This project has been
     announced.

  2. Not Yet Announced.

  3. Not Yet Announced.

  4. Pittsylvania County: Green Recycle, a plastic recycler and manufacturer, will
     locate a new facility in Pittsylvania County. This location will create 28 new jobs
     and a $4.3 million investment (amount of grant: $150,000; use of grant: building
     upfits; other grants awarded: Virginia Jobs Investment Program grant of $23,800,
     Enterprise Zone Job Creation grant of $80,800, Enterprise Zone Real Property
     Investment grant of $100,000; local match: $151,649; anticipated completion
     date: June 2029; average wage of new jobs: $56,857; prevailing average wage:
     $48,067). This project has been announced.
Money Committee Chair
July 16, 2025
Page 3


   5. Prince George County (revised): LEGO Systems, a toy production company, will
      locate a new warehouse and distribution facility in Prince Goerge County. This
      location will create 305 new jobs and an investment of $366.0 million (amount of
      grant: $2,525,000; use of grant: building construction; other grants awarded:
      Virginia Jobs Investment Program grant of $202,500, Enterprise Zone Job
      Creation grant of $1,124,000, Enterprise Zone Real Property Investment grant of
      $200,000, Port Economic and Infrastructure Development grant of $651,000;
      local match: $3,590,050; anticipated completion date: June 2030; average wage
      of new jobs: $55,952; prevailing average wage: $64,211). This project has been
      announced.

   6. City of Virginia Beach: Acoustical Sheetmetal, a sheet metal products
      manufacturer, will expand its existing facility in the City of Virginia Beach. This
      expansion will create 350 new jobs and an investment of $45.8 million (amount of
      grant: $1,750,000; use of grant: building construction; other grants awarded:
      none; local match: $1,750,000; anticipated completion date: June 2030; average
      wage of new jobs: $58,246; prevailing average wage: $57,232). This project has
      been announced.

   7. Lee County: White Rock Truss, a pine truss manufacturer, will expand its
      existing facility in Lee County. This expansion will create 27 new jobs and an
      investment of $1.5 million (amount of grant: $100,000; use of grant: workforce
      training; other grants awarded: Virginia Jobs Investment Program grant of
      $27,000, Agriculture and Forestry Industries Incentive grant of $100,000; local
      match: $75,000; anticipated completion date: June 2030; average wage of new
      jobs: $37,270; prevailing average wage: $44,562). This project has been
      announced.

   8. 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.
Money Committee Chair
July 16, 2025
Page 4


For the fourth quarter of the 2025 fiscal year, actual disbursements from the Fund
totaling $2,377,440 were made to the City of Petersburg for Civica, Grayson County for
Metalworx, Pittsylvania County for Tyson Farms, Henry County for Applied Felts,
Rockbridge County for Modine, and the City of Newport News for Aery Aviation.

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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