City Council Regular Meeting


Print

Return to the Search Page Return to the Agenda
CL-2586 New Business   Item #: G.       
Meeting Date: 08/05/2021  
Subject:    Economic Development Incentive Appropriations
From: Corrie Bobe

COUNCIL ACTION
First Reading:      08/05/2021                                                                               
Final Adoption: 08/17/2021
SUMMARY
The Virginia Economic Development Partnership (VEDP) provides incentives for economic development projects resulting in new taxable capital investment and net new employment to the Commonwealth of Virginia. 
 
The Danville Pittsylvania Regional Industrial Facility Authority, City of Danville, Pittsylvania County, and Making Everything Possible, LLC executed a Commonwealth Opportunity Fund performance agreement on May 24, 2021, in the amount of $135,000 to pay or reimburse the cost of construction or build-out of publicly or privately owned buildings to use as its facility in the Cyber Park. This grant will be provided to the Company in arrears as it meets the performance goals outlined in the agreement.

The Virginia Tobacco Region Revitalization Commission (VTRRC) provides incentives for economic development projects resulting in new taxable capital investment and net new employment to the VTRRC footprint. 
 
The City of Danville and Kyocera SGS Tech Hub LLC executed a Tobacco Region Opportunity Fund grant on November 2, 2016 in the amount of $350,000.  This was a reimbursable grant whereby the company had to submit expenditures for approval before funds are disbursed.
 
The Danville-Pittsylvania Regional Industrial Facility Authority, City of Danville, Pittsylvania County, and Making Everything Possible, LLC executed a Tobacco Region Opportunity Fund grant on June 22, 2021 in the amount of $270,000.  This was a reimbursable grant whereby the company had to submit expenditures for approval before funds are disbursed.
 
The Danville-Pittsylvania Regional Industrial Facility Authority (RIFA) and Making Everything Possible, LLC executed a Tobacco Region Opportunity Fund loan on May 6, 2021 in the amount of $270,000.  RIFA, the City of Danville, and Pittsylvania County are not liable for repayment of this loan should the company not meet its performance milestones. The Commission will look solely to Making Everything Possible, LLC for repayment.
 
BACKGROUND
On September 8, 2016, Governor Terry McAuliffe announced that Kyocera SGS Precision Tool Inc. (SGS) would invest $9.5 million and create 35 new jobs to establish a North American technology and strategic manufacturing hub in the Cyber Park. SGS is a wholly owned subsidiary of Kyocera Corporation and a leader in solid carbide cutting tool manufacturing.

On June 7, 2021, Governor Ralph Northam announced that MEP Ltd., a manufacturer of complex plastic and metal components for the aerospace and defense sectors, will invest $6.4 million to establish its first U.S. operation in the Cyber Park. The company, which will operate in the U.S. as Making Everything Possible LLC, will occupy approximately 5,500 square feet at the Institute for Advanced Learning and Research (IALR) while its new facility is constructed and will create 45 new jobs.
RECOMMENDATION
It is recommended by staff that City Council approve the attached Ordinance Amending the Fiscal Year 2022 Budget Appropriation Ordinance to appropriate funds from the Virginia Economic Development Partnership and the Virginia Tobacco Region Revitalization Commission, to the City of Danville for the purpose of providing an incentive for economic development activities to the aforementioned companies located in the City of Danville and Pittsylvania County.
 

Attachments
Ordinance


    

Level double AA conformance,
                W3C WAI Web Content Accessibility Guidelines 2.0

AgendaQuick ©2005 - 2021 Destiny Software Inc. All Rights Reserved.