VCC Magazine Winter 2018

The Virginia Tobacco Commission: Developing a Diverse Economy in Southern and Southwest Virginia

The Tobacco Commission was created by the 1999 Virginia General Assembly to distribute funds from the Master Settlement Agreement reached between 46 states and the five largest American tobacco companies. The Commission was given two missions. The first, to provide payments to tobacco farmers for the adverse economic effects resulting from loss of tobacco incomes, was completed in 2012. The second, to revitalize tobacco dependent communities in Southern and Southwest Virginia, is an ongoing effort which has benefitted the Tobacco region significantly. To date, the Commission has provided over 2000 grants for economic development projects in Southern and Southwest Virginia resulting in thousands of jobs and hundreds of millions of dollars of capital investment in those regions. While primarily focused on the ultimate goal of attracting businesses to the region or helping existing businesses expand, the Commission understands that developing a strong and economically diverse economy requires investment in the region’s workforce and critical infrastructure. Thus, alongside grants to localities to attract jobs and investment, the Commission has invested heavily in workforce development, site acquisition, and broadband expansion efforts. Absent these efforts, companies will not bring their jobs, investment and business to the area, regardless of any direct economic incentives. The Tobacco Commission recognized this need and has set out to ensure that Southern and Southwest Virginia have the tools necessary to compete on a global scale. The Tobacco Commission has partnered with institutions of higher education across the areas we serve, including University of Virginia’s College at Wise, Virginia Tech, and various community colleges and career and technical education centers, to develop workforce development programs able to meet the demands of modern business. These programs serve hundreds of students in fields ranging from information technology and cybersecurity to advanced manufacturing and mechatronics. These programs are now regarded as high quality and serve as key tools to attract employment growth and capital. The Tobacco Commission plans to continue working with our partners to build on what has already been accomplished, making our region a first choice destination for companies looking for a highly trained workforce on the east coast. Like a well trained workforce, access to high speed broadband is an absolute necessity when it comes to attracting businesses. In today’s globalized economy, high-speed and reliable internet access is no less essential than is electricity or running water. The Tobacco Commission recognized this early on and has invested heavily to expand broadband access across Southern and Southwest Virginia. This early investment has enabled Southern and Southwest Virginia to compete globally to attract businesses to the region. Recently, the Commission demonstrated its continued commitment to expanding

broadband access by setting aside $10 million new dollars from the Research & Development committee budget for “last mile” connections that will begin the long project of extending broadband to individual homes and businesses currently lacking access, a move that will help to bridge the “digital divide” between urban communities with access and rural communities which lack it. Finally, even in today’s increasingly networked global economy, most businesses require a physical place to operate, and advanced manufacturing businesses have strict requirements for those spaces. To that end, the Commission has worked with local governments and regional groups to acquire and make business-ready thousands of acres of economic development sites and dozens of shell buildings across Southern and Southwest Virginia. While not every site is shovel-ready, work continues, with the Commission dedicating millions more to the effort just this January. While we strive to develop a diverse economy in Southern and Southwest Virginia it is important to the Commission that we do so in a responsible fashion. This is why we have instituted the use of modern data analytics to ensure strong return on investment while gaining new insights into best practices and solutions to region- specific challenges. When applying for a grant, every applicant to a program must clearly articulate and demonstrate how the specific project relates to the goals of the program, what outputs will be delivered and by when, and the anticipated effect of these outputs on the outcomes targeted by the program. All but one of our programs operates on a reimbursement basis with funds sent only once the agreed upon metrics have been met. In the case of our Tobacco Region Opportunity Fund program grants are awarded to a locality (not a business) prior to the start of a project with specific goals and the ability to claw back funds if those goals are not met within the specified timeframe. In addition to these steps to ensure results, the Commission strives to operate as transparently as possible. We have a court reporter at each Commission meeting with full transcripts posted on our recently updated website. Our new website also includes a grants database tool that allows anyone to look up projects the commission has funded. Available information includes approval date, project end date and amount awarded for the project as well as the name of the company associated with the grant and the county in which the project will be located. Additionally, the Commission has an open door policy and anyone is welcome to view documents of interest in our offices or request that they be sent to them. The Tobacco Region Revitalization Commission has successfully brought thousands of jobs and hundreds of millions in investment to Southern and Southwest Virginia but we know there is more work to be done. We are committed to working with localities and partners

within our region to develop a robust, diverse economy that will ensure a bright future in 2018 and beyond. The Tobacco Region Revitalization Commission is a 28-member body created by the 1999 General Assembly. Its mission is the promotion of economic growth and development in tobacco-dependent communities, using proceeds of the national tobacco settlement. To date, the Commission has awarded 2,102 grants totaling more than $1.1 billion across the tobacco region of the Commonwealth, and has provided $309 million in indemnification payments to tobacco growers and quota holders.

Legislative Counsel

John G. “Chip” Dicks FutureLaw, LLC 1802 Bayberry Court, Suite 403 Richmond, Virginia 23226

(804) 225-5507 (Direct Dial) chipdicks@futurelaw.net (804) 225-5508 (Fax) www.futurelaw.net

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