| | | | | | | | Spotsylvania County
Board of Supervisors Agenda
Executive Summary |
| | | | | | | | Meeting Date:
| February 12, 2019 |
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| | | | | | | | Title:
| Development of EDA-Owned Industrial Site at Former GM Plant; Approval of Budget Amendment & Appropriation |
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| | | | | | | | Type:
| Action, Appropriation |
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| | | | | | | | Agenda Title:
| Development of EDA-Owned Industrial Site at Former GM Plant; Approval of Budget Amendment & Appropriation |
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| | | | | | | | Recommendation:
| Staff recommends approval of this budget amendment and appropriation. |
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| | | | | | | | Summary:
| The Spotsylvania Economic Development and Tourism Department worked for 6 years to find a sophisticated industrial company to redeploy the former General Motors plant on Tidewater Trail. The buyer did not need the “back 40” acres and ultimately conveyed that acreage to the Spotsylvania Economic Development Authority. The EDA wishes to develop the property for jobs and revenue purposes, and in order to do so must address infrastructure and parcel access issues with County Board support.
The total cost to construct an access road to include curb and gutter; extend water and sewer to the “back 40”; demolish certain existing site structures such as a rail spur and water tank; and provide other miscellaneous site work is estimated at $2.2 million. The access road itself will be built via a $650,000 State Economic Development Access Program grant to the County which requires a $150,000 local match. The $1.4 million balance of the site improvement project will require 100% local funding which currently is budgeted within the project previously approved for “back 40” site improvements to support this work. However, the attached budget adjustment and appropriation is necessary to budget for the grant portion of the County-administered project as well as to appropriately redistribute the local share of the budget for the project between the Capital Projects Fund, EDO Fund and Utilities Capital Projects Fund based on the various facets of the project. |
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| | | | | | | | Committee/Commission Summary:
| Finance Committee |
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| | | | | | | | Review Date:
| January 17, 2019 |
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| | | | | | | | Financial Impact:
| See the attached budget adjustment and appropriation. |
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| | | | | | | | Staff Contacts:
| Tom Rumora, Director of Economic Development and Tourism |
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| | | | | | | | Legal Counsel:
| Brendan Hefty, General Counsel, Economic Development Authority |
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| | | | | | | | Additional Background/Other Considerations:
| 1. The documents conveying the former GM plant to idX anticipate this action, and the company is collaborating with the County and EDA.
2. The Commonwealth Transportation Board has approved the County’s grant request.
3. VDoT has approved the project, subject to a performance bond requiring clawback if a prospect is not found within 5 years to justify the State’s investment.
4. The Fredericksburg Regional (economic development marketing) Alliance has collaborated in this effort, and specifically assisted in getting CTB and VDoT approval for this grant program, of which the County was unaware. Spotsylvania and other locally elected representatives serve on the FRA board of directors.
5. The VEDP sets eligibility requirements for the project required to justify the VDoT grant.
6. All plans, plats, easements, and other assurances and obligations have been agreed among the parties.
7. The EDA enthusiastically anticipates its first major development role in recent years.
8. VEDP, FRA, and County staff eagerly anticipate recruitment of jobs and revenue by leveraging this industrial-zoned, utility-served, and aggressively-marketed business location. |
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| | | | | | | | Consequence of Denial/Inaction:
| If the request is denied, the hard work of the Economic Development and Tourism staff, Economic Development Authority, Fredericksburg Regional Alliance, and Virginia Economic Development Partnership will not have achieved the optimal benefit to the taxpayers by leveraging this property to recruit jobs and revenue to the County. The Board-appointed EDA will be hampered in its pro-business purpose due to the undeveloped non-shovel-ready condition of the property and its unattractive role as an incentive to attract new employers, investment, and positive economic impacts for Spotsylvania. |
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