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CL-2614 New Business   Item #: F.       
Meeting Date: 09/07/2021  
Subject:    Economic Development Incentive Appropriation
From: Corrie Bobe

COUNCIL ACTION
First Reading:      09/07/2021                                                                        
Final Adoption 09/21/2021
SUMMARY
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 Essel Propack (now EPL America, Inc.) executed a Tobacco Region Opportunity Fund performance agreement on December 12, 2018 in the amount of $330,000. This grant will be provided to the Company in arrears as it meets the performance goals outlined in the agreement.

The City of Danville and Essel Propack (now EPL America, Inc.) will soon execute a Tobacco Region Opportunity Fund loan agreement in the amount of $330,000.  This loan will be provided to the Company in arrears as it meets the performance goals outlined in the agreement.
BACKGROUND
On December 17, 2018, Governor Ralph Northam announced that Essel Propack of America, LLC would invest $31.2 million and create 45 new jobs in the Airside Industrial Park to expand its manufacturing operations. The business is a global specialty packaging company serving the consumer goods and pharmaceutical sectors. 
RECOMMENDATION
Staff recommends that City Council approve the attached Ordinance Amending the Fiscal Year 2022 Budget to anticipate revenues from grant and loan funds from 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 company located in the City of Danville.

Attachments
Ordinance


    

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