COF Report – Q1 FY2021

Summary

A letter dated December 21, 2020 to the chairs of the Virginia Senate Finance and Appropriations Committee, the House Appropriations Committee and the House Finance Committee, Janet D. Howell, Luke E. Torian and Vivian E. Watts, documenting transactions of the Commonwealth's Development Opportunity Fund (COF) in the first quarter of the 2021 fiscal year, as required by § 2.2-115(G) of the Code of Virginia. It reports that as of September 30, 2020 a total of $352,645,121 had been appropriated to the Fund over time, the Cardinal Financial System cash balance was $43,960,362 and the balance available for future commitments was $38,408,911. It states that after COF preapprovals of $24,897,000 the available balance is $13,511,911.

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Full text

December 21, 2020

The Honorable Janet D. Howell The Honorable Luke E. Torian
Chair Chair
Senate Finance and Appropriations Committee House Appropriations Committee
P.O. Box 2608 4222 Fortuna Plaza, Suite 659
Reston, Virginia 20195 Dumfries, Virginia 22025

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

Dear Chairs:

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 2021 fiscal year as
required by § 2.2-115(G) of the Code of Virginia.

As of September 30, 2020, a total of $352,645,121 had been appropriated to the Fund over
time. As of September 30, 2020, the Cardinal Financial System cash balance was $43,960,362,
and the balance available for future commitments totaled $38,408,911. Taking into account
COF preapprovals of $24,897,000 made by the Secretary of Commerce and Trade, however,
the available balance is $13,511,911. Historically, roughly 40% of preapprovals, or $9,958,800,
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 663.

For the first quarter of the 2021 fiscal year, ended September 30, 2020, a total of $3,050,000
was committed from the Opportunity Fund to assist six projects relocating to or expanding in the
state. Total committed job creation of these projects was 994, while committed investment
totaled $303.4 million. Summaries on these projects follow:

1. City of Virginia Beach: Acoustical Sheetmetal, a manufacturer of sound and weather
proofing for industrial generators, will expand its existing facility in the City of Virginia
Beach. This project will create 200 new jobs and an investment of $15.8 million (amount
of grant: $750,000; use of grant: building construction; other grants awarded: Virginia
Talent Accelerator Program funding of $238,000 (estimated internal costs); local match:
$1,350,000; anticipated completion date: September 2023; average wage of new jobs:
$46,781; prevailing average wage: $43,932). This project has been announced.

901 E. Cary Street, Suite 900
Richmond, Virginia 23219
VEDP.org
COF Report – Q1 FY2021
December 21, 2020
Page 2

2. Montgomery County: Torc Robotics, a developer of autonomous truck technology, will
expand its existing facility in Montgomery County. This project will create 350 new jobs
and an investment of $8.5 million (amount of grant: $800,000; use of grant: building
construction and improvements; other grants awarded: Virginia Economic Development
Incentive Grant of $3,500,000, Virginia Talent Accelerator Program funding of $387,000
(estimated internal costs); local match: $800,000; anticipated completion date:
September 2023; average wage of new jobs: $117,901; prevailing average wage:
$46,272). This project has been announced.

3. Not Yet Announced.

4. Not Yet Announced.

5. City of Chesapeake: Plasser American, a manufacturer of railway repair and
maintenance equipment, will expand its existing facility in the City of Chesapeake. This
project will create 98 new jobs and an investment of $52.6 million (amount of grant:
$450,000; use of grant: building construction; other grants awarded: Virginia Jobs
Investment Program grant of $51,000, Rail Industrial Access Program grant of $450,000,
Port Economic and Infrastructure Development grant of $27,000; local match: $450,000;
anticipated completion date: September 2025; average wage of new jobs: $50,186;
prevailing average wage: $44,697). This project has been announced.

6. Fluvanna County: Silk City, a manufacturer of silk screened apparel, will locate a new
facility in Fluvanna County. This location will create 93 new jobs and an investment of
$5.7 million (amount of grant: $70,000; use of grant: building improvements; other grants
awarded: Virginia Jobs Investment Program grant of $37,100; local match: $70,000;
anticipated completion date: December 2025; average wage of new jobs: 72 jobs at
$42,083, 21 jobs at $35,000; prevailing average wage: $42,078). 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.
COF Report – Q1 FY2021
December 21, 2020
Page 3

For the first quarter of the 2021 fiscal year, actual disbursements from the Fund were made to
Augusta County for Hershey, Westmoreland County for Teal-Jones, and Arlington County for
block.one. Actual disbursements totaled $1,325,000.

Sincerely,

Stephen Moret
President and Chief Executive Officer

SM:kme

Enclosures

cc The Honorable Brian Ball
Secretary of Commerce and Trade

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