LEBANON, VA – SEPTEMBER 20, 2024 — An up to $4 million loan to the Russell County Industrial Development Authority to be used for a confidential project yet to be announced in that county was approved by the Virginia Coalfield Economic Development Authority (VCEDA) board during a meeting in Lebanon, Thursday.
VCEDA Executive Director/General Counsel Jonathan Belcher provided a brief overview of current work underway by VCEDA staff, noting staff is currently working around 27 active projects with the most activity in manufacturing and seed capital.
He noted that in 2024 year-to-date, VCEDA has attended 21 outreach marketing events throughout the United States.
Additionally, year-to-date, the board has approved two loans and 13 grants for $3.7 million in new VCEDA funding while at the same time, closing on one loan and 23 grants, the majority of which were seed capital grants, totaling $3.5 million for a projected 290 new full-time and 117 part-time jobs and $22.4 million in private investment. This does not include the $4.9 million in new funding approved at Thursday’s board meeting, which brings the total amount approved during 2024 to $8.6 million.
In other business at Thursday’s meeting, the board approved a $500,000 loan to the Lee County Economic Development Authority to be used to finance the purchase of equipment and costs associated therewith including delivery and installation expenses, to assist with an expansion of an as yet unannounced project in Lee County.
The board also approved an up to $120,000 grant to the Industrial Development Authority of Tazewell County to be used to finance engineering, geotechnical and construction plans and a right of way analysis for the extension of natural gas to the Bluestone Regional Business and Technology Park in Tazewell County.
A request from the Economic Development Authority of Scott County (EDA) to consent to the EDA’s leasing of the former TTEC building located at the Riverside development in Scott County to an as yet to be announced tenant, subject to inclusion of a provision in the lease that the EDA may recover the building upon at least 90 days notice was also approved.
Three requests related to Southwest Virginia Community College were okayed, including the approval of an up to $100,000 grant to the Southwest Virginia Community College Educational Foundation, Inc. from the VCEDA Coalfield Workforce Development and Training Fund to be used for workforce development and training, specifically for scholarships for the emerging workforce, training instructional costs, customized workforce training for area businesses, costs of assessments and costs of administering National Career Readiness Certificate and other workforce testing for residents and/or workers in the VCEDA region.
The board also approved an up to $105,142 grant to the Southwest Virginia Community College Educational Foundation, Inc. from the VCEDA Coalfield Workforce Development and Training Fund (renewable energy fund allocation) to be used for workforce development and training in electric vehicle (EV) and hybrid vehicle technology for residents and/or workers in the VCEDA region, including the purchase of training equipment, supplies and instructor training.
The third SWCC-related grant was for up to $102,000 to the Southwest Virginia Community College Educational Foundation, Inc. from the VCEDA Coalfield Workforce Development and Training Fund to be used for workforce development and training in Commercial Driver’s License (CDL) training for residents and/or workers in the VCEDA region, including the purchase of a truck and trailer for in-vehicle driver training.
In other business, the board also approved an up to $100,000 grant from the VCEDA Civil Penalties Fund to the Breaks Interstate Park Commission to be used to develop infrastructure and improvements at the Breaks Interstate Park.
A request from the Industrial Development Authority of the Town of St. Paul was approved for VCEDA to forbear monthly payments on the up to $1 million loan approved to the IDA for the Western Front Hotel through February 2026 and to waive any accrued interest during the time period September 14, 2024 to February 14, 2026, with all other terms and conditions remaining the same.
The board also:
- approved an annual marketing stipend for FY2025 of up to $10,000 for each of the eight county/city industrial or economic development authorities in the VCEDA region, to be funded from the VCEDA Regional Account, and to approve the revised guidelines for the VCEDA Marketing Stipend Program as presented;
- approved a request from the Buchanan County Industrial Development Authority to extend the loan closing deadline on the up to $2.214 million loan approved by VCEDA to the IDA on March 21, 2024 for the Southern Gap office building project, to a new loan closing deadline of September 17, 2025;
- approved a request from the Industrial Development Authority of the City of Norton to extend the loan closing deadline on the up to $3.16 million loan approved for the IDA on October 19, 2023 for Project Lasso to a new loan closing deadline of April 17, 2025;
- approved a request from the Industrial Development Authority of Russell County to extend the maturity date of the $1,544,087 loan from VCEDA to the IDA concerning the Lebanon shell building to a new maturity date of October 1, 2034;
- approved a request from the Economic Development Authority of Scott County (EDA) to extend the grant disbursement deadline between VCEDA and the EDA concerning the VFP, Inc. expansion, to a new grant disbursement deadline of September 22, 2025; and
- approved a request from the Industrial Development Authority of Wise County to extend the maturity date on the up to $1.278 million loan from VCEDA to the IDA concerning the build-out of the former Appalachia America Energy Research Center (now known as the Windswept Industrial Center) for an additional 10 years to a new loan maturity date of September 30, 2034.
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.