CLINTWOOD, VA — June 27, 2025 — An up to $2,093,186 loan from the Virginia Coalfield Economic Development Authority (VCEDA) to be used to assist with the continued development of the Red Onion Industrial Site in Dickenson County, VA was recently closed between VCEDA and the Dickenson County Industrial Development Authority (IDA).
The funds will be used to finance site development, site grading, road construction and utilities installations and extensions to further the development of the Red Onion Industrial Site (formerly known as the Coalfield Regional Industrial Park), near Red Onion State Prison, in western Dickenson County.
“The Red Onion Industrial Site is approximately 99.4 acres of former surface mined land which was acquired by the Dickenson County IDA several years ago with funding from VCEDA,” said VCEDA Executive Director/General Counsel Jonathan Belcher. “Once fully developed, the industrial site will have three graded pads ranging from five to 15 acres, for a combined total of 30 graded, marketable acres, significantly improving Dickenson County site availability for future business and industry development in the region.”
VCEDA also previously funded the installation of sewer and the replacement of the water line to serve the industrial site; and in 2020, approved an additional up to $1.2 million grant to the IDA to help with site development and infrastructure for it.
Additional funders for the project include the Virginia Energy AMLER program, the Appalachian Regional Commission and the Virginia Tobacco Commission. As funds are reimbursed on the project from the other funders, they will be used to pay back the VCEDA loan on a quarterly basis. In 2023, VCEDA approved a somewhat similar loan for the Wise County IDA to help the Wise County IDA with cash flow on the Elam Farm site development project. For the Wise County project, the other funder was the Virginia Business Ready Sites program.
The current project at Red Onion includes construction of on-site access roads from Route 361 to the proposed building pads; construction of redundant broadband fiber provided by Scott County Telephone and Point Broadband to the site; and construction of stormwater, erosion/sediment control structures for the site, pad grading, on-site utilities and natural gas service.
Excess material resulting from the construction activities will be used to help remediate an Abandoned Mine Land highwall adjacent to the site.
“This $2 million loan is a critical investment in the future of Dickenson County,” said Dickenson County Administrator Larry Barton. “It enables us to complete the work at Red Onion Industrial Park and positions us to attract new businesses, create jobs and grow our local economy. We are deeply grateful to VCEDA for its support and commitment to helping us move this transformative project forward.”
About Virginia Coalfield Economic Development Authority and Southwest Virginia’s e-Region: The Virginia Coalfield Economic Development Authority, created by the Virginia General Assembly in 1988 to enhance and diversify the region’s economy and help create jobs, markets Southwest Virginia’s e-Region and its focus on electronic information technology, energy, education, emerging technologies, and entrepreneurship. VCEDA is a unique economic development organization that manages funds for economic development projects from a percentage of the coal and natural gas severance taxes paid by coal and natural gas companies that operate in the region. Located in southwestern Virginia, the region includes Buchanan, Dickenson, Lee, Russell, Scott, Tazewell, and Wise counties and the City of Norton. www.vceda.us or www.e-Region.org.