Virginia Economic Development Insights

Enhanced Capacity Building Piedmont Opportunity Corridor Community Update August 16, 2018 1

U.S. GDP and Virginia GSP 2002 2015 (Annual % Change) % 6 4 WHY GO VIRGINIA? U.S. 2 0 Virginia -2 -4 Source: Bureau of EconomicAnalysis, GMU Center for RegionalAnalysis 2

VIRGINIAAND STATE COMPARISONS PERCENT GSP CHANGE: RECESSIONAND RECOVERY (~2007 2009) (ranked by GSP in 2015) (2009 2015) Florida -10% 9% Ohio -7% 14% WHY GO VIRGINIA? North Carolina -3% 8% Georgia -6% 10% Virginia 0% 6% Maryland 0% 8% Indiana -7% 13% South Carolina -4% 10% DC -1% 9% 10% 20% -20% -10% 0% Source: Bureau of EconomicAnalysis, GMU Center for RegionalAnalysis 3

Commonwealth of Virginia Average Job Contribution to Gross State Product By Private Sector in 2015 $s Sector Average Job Contribution to GSP Leisure & Hospitality Services Retail Trade Education & Health Services State and Local Government Construction Transport/Warehousing Military Professional & Business Service Wholesale Trade Federal Government Manufacturing Information Services Financial Services All Private Sectors Average $38,000 $61,637 $66,868 $69,804 $83,100 $109,136 $125,215 $145,211 $158,875 $163,125 $186,311 $336,162 $491,636 $127,630 WHY GO VIRGINIA? All Government Average $117,432 Source: IHS Economics, GMU Center for Regional Analysis 4

The GSP* Effects of Private Sector Job Change in the Commonwealth of Virginia, March 2008-August 2016 (in 2015$s) Job Average GSP* Value $152,807 $114,793 Total WHY GO VIRGINIA? Change -293,300 +335,400 GSP* Value - $44,818,293,100 38,501,572,200 + 42,100 - $6,316,720,900 Source: GMU Center for Regional Analysis *Gross State Product 5

2016 GENERAL ASSEMBLY GROWTH AND OPPORTUNITY ACT Legislation to create the Virginia Growth and Opportunity (GO) Board and Fund. COLLABORATIVE JOBS ACT Legislation to create revenue sharing opportunities for localities when jointly pursuing economic development projects. INTRO 6

WHAT IS GO VIRGINIA? An economic development initiative that provides incentives to encourage collaboration between private industry, higher education, and government to produce results that will grow and diversify the regional economies -- and ultimately the Commonwealth. INTRO 7

GO VIRGINIA FUNDING STREAMS Regional Projects (Per Capita Funds) Inter-Regional Projects (Competitive Funds) Allocated based on the regional population Funding awarded by the Board on a competitive basis for projects engaging at least two regions INTRO 8

GO VIRGINIA STRUCTURE Growth & Opportunity (GO) Board is responsible for awarding funds to projects recommended by Regional Councils. Regional Councils are private industry led and have representation from education, workforce, local government, economic development, etc. DHCD oversees the administrative and financial aspects of the Board Support Organizations oversees the administrative and financial aspects of the Regional Councils. STRUCTURE 9

GO VIRGINIA BOARD & DHCD GO Virginia Board Dubby Wynne, Chair Benjamin J. Davenport Jr, Vice Chair DHCD Erik Johnston, Director Courtney Dozier, Deputy Director Jordan Snelling, GO Virginia Administrator Billy Gammel, GO Virginia Analyst STRUCTURE 10

GO VIRGINIA REGIONS STRUCTURE-THE REGIONS 11

REGION 9 - Piedmont Opportunity Corridor STRUCTURE - REGION 9 11 Localities Incorporating Planning Districts 9 and 10 12

REGIONAL COUNCIL 9 Officers & Executive Committee Chair: Tom Click, Patriot Industries Vice Chair: Jim Cheng, CAV Angels Treasurer: Andy Wade, Louisa County Brian Cole, Lexis Nexis Miles Friedman, Fauquier County Ed Scott, Eco-Septix Alliance David Pettit, Lenhart Pettit STRUCTURE - REGION 9 Piedmont Opportunity Corridor 13

ENTREPRENEURSHIP & INNOVATION TASK FORCE Tom Click, Patriot Industries Jim Cheng, CAV Angels Leigh Middleditch, McGuireWoods Elizabeth Smith, Afton Mountain Vineyards Pace Lochte, UVA Miles Friedman, Fauquier County STRUCTURE - REGION 9 14

REGIONAL COUNCIL 9 SUPPORT ORGANIZATION STRUCTURE - REGION 9 Helen Cauthen, President Shannon Holland, GO Virginia Director Uconda Dunn, Economic Development Director Stephanie Boynton, Executive Director, Piedmont Workforce Network 15

GO VIRGINIA PROJECTS MUST PROJECT REQUIREMENTS 1. Align with the GO Virginia Board Goals and, 2. Align with the Growth & Diversification Plan for the Region 16

TO MEET GO VIRGINIA BOARD GOALS PROJECT REQUIREMENTS A project must: Lead to the creation of higher paying jobs Derive revenue from out-of-state sources Be sustainable after GOVA Demonstrate collaboration between higher education, business and local government Involve 2 or more local governments 17

GO VIRGINIA DOES NOT FUND. PROJECT REQUIREMENTS Healthcare Quality of life projects Incentives to private companies Scholarships Broadband (under evaluation) Transportation projects Infrastructure - unless for site development 18

AVERAGE WAGES PROJECT REQUIREMENTS $52,038 Region 9 Source: U.S. Bureau of Economic Analysis, Per Capita Income, 2015 19

REGION 9 PLAN REGION 9 PLAN REGION 9 PLAN Download at www.GoVirginia9.org 20

IDENTIFIED OPPORTUNITIES Proposals should be in at least one Framework targeting at least one Target Industry Frameworks Talent Development Growing Existing Businesses Startup/Innovation/ Commercialization Site Readiness Industries Financial & Business Services Food & Beverage Manufacturing Information Technology & Communications Light Manufacturing Biomedical & Biotechnology REGION 9 PLAN TARGETING 21

REQUIRED MATCH GO Virginia proposals must include a $1:1 Match from non-state sources. Matching funds may be CASH and/or IN-KIND Within the 1:1 Match, there is a minimum locality Match requirement $50,000 OR 20% of the GO Virginia request, whichever is greater MATCH 22

REGION 9 HOW TO APPLY Discuss with GO Virginia Region 9 staff Submit Pre-Application Get approval to move forward with application Submit application by Region 9 Deadlines Details and downloads at www.GOVirginia9.org HOW TO APPLY 23

BOARD PROPOSAL REVIEW PROPOSAL REVIEW 24

REGION 9 PROPOSAL REVIEW PROPOSAL REVIEW 25

FY 18 REGION 9 PROJECTS Per Capita Allocation Added from Capacity Building Funds Total Available for Projects YTD Total Awarded FY 2018 Funds Carry Forward FY 2018 HIGHLIGHTS $546,301 $250,000 $796,301 $735,987 $60,314 26

REGION 9 PROJECTS Project/ Lead Applicant GO Virginia Funds Requested Locality Match Other Match Description GWC PTEC (Culpeper County) 244,300 431,625 1,000,000 Talent Development project targeting Light Manufacturing FY 2018 HIGHLIGHTS Crafting Higher Paying Jobs and Adult Beverage Exports (PVCC) 249,472 50,000 259,000 Talent Development project targeting Food & Beverage Manufacturing Central Virginia Cybersecurity Partnership (PVCC) 100,000 0 136,000 Talent Development project targeting IT/Communications Central Virginia Site Readiness (Partnership) 58,675 58,675 0 Site Development project targeting Light Manufacturing CvilleBioHub (CvilleBioHub) 83,540 0 84,600 Grow Existing Businesses project targeting Biotech 27

STATEWIDE APPROVED PROJECTS As of August 14, 2018 34 Projects Funded Talent Development 15 Infrastructure 6 Commercialization 3 Enhanced Capacity Building 10 >$10,000,000 28

RECENTLY APPROVED PROJECTS Project Description Amounts Southwest Virginia Technology Council Hublink 1 Online jobs platform for technology industry $27,547 Campus RVA 4 Online and offline resource for internships and job openings $100,000 CvilleBioHub 9 Create a strategic plan for driving innovation and growth for the region s Biotech cluster $83,540 Talent Pipeline Apprenticeship Initiative 7 Develop an apprenticeship program for technology and cybersecurity jobs $1,000,000 Lighthouse U 4 Empower recent college graduates to become entrepreneurs $1,000,000 MAMAC 4 Inter Regional Project to advance this mega-industrial site to Tier IV $2,217,000 29

GO VIRGINIA STATE PRIORITIES Site Development Entrepreneurial and Innovation Ecosystem FY 2019 PRIORITIES 30

FY 2019 GO VIRGINIA PROJECT FUNDING Per Capita Funds (Regional Projects) Competitive Funds (Inter-Regional Projects) FY 2019 FUNDING Region 9 Projects: $1,000,000* Region 9 + at least one other Region: $11,000,000 * Includes Enhanced Capacity Building Funding 31

ENHANCED CAPACITY BUILDING PROJECTS (ECB) ECB Proposals must: Evaluate an opportunity or develop a platform for needs or opportunities identified in regional plans (not implementation) Have a direct line of site to a larger GO Virginia grant proposal If ECB GO Virginia funding request is for < $100,000: The proposal is eligible for an accelerated approval process May request a waiver of the locality match requirement, if the proposal demonstrates that it could not be obtained Region 9 can only fund a limited number of these projects annually FY 2018 PRIORITIES 32

FY 2019 GO VIRGINIA PROJECT FUNDING Per Capita Funds (Regional Projects) Competitive Funds (Inter-Regional Projects) FY 2019 FUNDING Region 9 Projects: $1,000,000* Region 9 + at least one other Region: $11,000,000 * Includes Enhanced Capacity Building Funding 33

FY 2019 REGION 9 PRIORITIES Regional Council to Drive the Agenda to: Generate a Robust Project Pipeline for >$1,000,000 Get Local Government More Integrated Facilitate Innovation/Entrepreneurship Ecosystem Projects Support project conversations targeting Business & Financial Services Identify Next Generation of Leaders FY 2018 PRIORITIES 34

Next deadline: September 25, 2018 IDEAS & QUESTIONS 35

GO VIRGINIA Thank you! Shannon Holland GO Virginia Director, Region 9 434-979-5610 ext. 103 sholland@centralvirginia.org www.GOVirginia9.org 36