The Virginia Department of Housing and Community Development (DHCD), offers a grant called the Industrial Revitalization Fund to assist communities to redevelop blighted and/or abandoned non-residential structures significant to the community due to size, location and/or economic importance. The program focuses on ready to go projects that provide job creation, capital investment and have the potential to transform the community's downtown area. Eligible projects may be redeveloped for any market-driven purpose including mixed-use, regardless of the original use. The maximum grant amount a community can apply for is $600,000.
The Danville Office of Economic Development proposes to apply for a $500,000 grant to assist a private developer in the redevelopment of an unannounced project in the River District. This project would be redeveloped as a mixed-use facility with a $3.76M capital investment, creating a hospitality component with a minimum of 10 full-time and 13 part-time jobs, some commercial and retail space and four market rate apartments. This project will add to and benefit from other projects that are in close proximity by increasing foot traffic in the River District from employees, clients and residents, thereby encouraging additional support to other businesses in the River District.
As stated above, and in collaboration with the developer, the Office of Economic Development has decided to apply for an Industrial Development Fund grant of $500,000 to cover the project's gap cost. Staff has received and reviewed the preliminary budget for this project. Given the competitive nature of this program, there is no guarantee that the City will be awarded this grant. Funds are limited and it is very important that the City is first in line and demonstrates the overall economic impact this project will have on the overall revitalization of downtown, before all the dollars are allocated to other projects in the State. No additional repayment or commitment is expected to be paid or offered by the City.