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CL-2572 New Business   Item #: E.       
Meeting Date: 06/15/2021  
Subject:    Consideration of Approval of a Support Agreement with the Danville-Pittsylvania Regional Industrial Facility Authority
From: Corrie Bobe

COUNCIL ACTION
Business Meeting:     06/15/2021
SUMMARY
The Danville Pittsylvania Regional Industrial Facility Authority (RIFA) has requested that Appalachian Power Company (APCO) relocate an approximately two (2) mile portion of an existing 69kv transmission line that runs through lots 4, 8, and 9 within the Southern Virginia Megasite at Berry Hill prior to December 31, 2021. The cost to relocate this line is approximately $4,500,000 and RIFA has made a request to the Virginia Tobacco Commission (Commission) to finance this project by utilizing a portion of Pittsylvania County's Southside Allocation. The Commission approved this loan at an interest rate of 1.5% per annum and also agreed to a repayment forbearance period of 10 years. The Virginia Resources Authority will service the loan. APCO has agreed to refund all or a portion of the cost of this project each time there is a new customer that locates to lots 4, 8, and 9, and enters into a capacity contract for at least 1 megawatt over a 5-year period. (Existing customers also qualify.)  The Commission has requested the approval of a support agreement between the City of Danville and Danville Pittsylvania Regional Industrial Facility Authority for this project.
BACKGROUND
Over the past decade, the City of Danville and Pittsylvania County have partnered to develop the Southern Virginia Megasite at Berry Hill, which is approximately 3,500 acres of land located near Virginia’s southern border with North Carolina and on the west side of Danville. Owned by the Danville Pittsylvania Regional Industrial Facility Authority (RIFA), this megasite was created to increase employment opportunities and attract major investment to the region. Appalachian Power Company (APCO), who is the electric service provider at this site, currently has a 69kv electric transmission line that transects this property. In order to better market this site and accommodate future construction within the park, RIFA has requested that APCO relocate an approximately two (2) mile portion of this existing transmission line that runs through lots 4, 8 and 9 of this property to the southern edge of the lots prior to December 31, 2021. Relocation of the power line has also been identified as high priority during RIFA's pursuit of the coveted Megasite Certification from Quest Site Solutions (previously McCallum Sweeney), the site selection criteria used by large industrial projects and by every OEM automotive plant over the last three decades.
RECOMMENDATION
Staff recommends approval of the support agreement with the Danville-Pittsylvania Regional Industrial Facility Authority.
 

Attachments
Resolution
Support Agreement


    

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