Established in 1990 pursuant to HJR 106, the Southside Economic Development Commission was charged to "propose recommendations to improve and enhance the economic development of the Southside region of the Commonwealth." Chaired by the Speaker of the House of Delegates, the Commission was comprised of 23 members representing the legislature, educational institutions, local leaders, and area industry. Assisted by task forces on Agriculture, Forestry, and Natural Resources; Education, Training, and the Workforce; Finance, Marketing, and Incentives; and Infrastructure, the Commission explored traditional development strategies as well as newer initiatives that focus on "growth-from-within" and partnerships between the public and private sectors. Included in its report to the 1991 Session were recommendations addressing the expansion of industries using the abundant natural resources of the area, the educational needs of Southside citizens and employers, industrial-recruitment incentives, regional marketing efforts, and infrastructure needs.

Authorized by HJR300 to continue its study in 1991, the Commission continued its review and evaluation of methods of enhancing economic growth in Southside and considered financing alternatives; partnerships between government, higher education, and the private sector; and other related issues. Membership continued as appointed in 1990. Commission meetings were hosted by community colleges, public and private four-year institutions, a continuing education center, and other entities throughout the region not only to facilitate travel, but also to provide a closer look at the valuable resources and programs already available in Southside. The Commission received testimony from a Congressional representative, leading economic development specialists, representatives of area industry, and educators, as well as the Secretaries of Education, Economic Development, and Natural Resources; the Departments of Aviation, Economic Development, Transportation, and Housing and Community Development; the State Water Control Board; and the Population Growth Commission. Finally, local input on the Commission's potential recommendations was solicited through a series of public hearings held throughout the region.

Like many other regions in the rural South, Southside Virginia must overcome a variety of obstacles to ensure its economic recovery. Having traditionally relied on lower tax rates, attractive land prices, and the availability of less expensive labor to attract industry, rural communities throughout the South now find themselves unable to support the educational and infrastructure improvements necessary to promote growth. In Southside Virginia, low educational attainment levels, high unemployment rates, and inadequate infrastructure demand the development and implementation of initiatives that combine traditional strategies with measures that focus on local and private sector involvement.

The challenges facing Southside Virginia as it enters the next century would seem insurmountable were it not for the commitment of the region's leaders, citizens, and industries to Southside's revitalization as an active participant in a vibrant state, national, and global economy. In addition, Southside's abundant natural resources, entrepreneurial spirit, and regional unity support tremendous potential for growth. Incorporating traditional development strategies with newer initiatives that recognize the shared responsibilities of the public and private sectors for successful growth, the Commission has concluded that its final recommendations must include measures for Southside's immediate and long-term development needs.

The Commission therefore makes the following recommendations for specific action in 1992:

RECOMMENDATION 1: That the A.L. Philpott Southside Economic Development Commission be continued for one additional year to monitor the implementation of recommendations and initiatives promoting economic growth in Southside Virginia.

Education, Training, and the Workforce

RECOMMENDATION 2: That the Governor and the General Assembly include in their efforts to reduce substantially regional disparities in education funding, facilities, and programs consideration of the special needs of school divisions beyond basic requirements and the adjustment of current funding formulas to reflect more accurately local capacity and willingness to meet local ability to pay for public education.

RECOMMENDATION 3: That a joint legislative subcommittee examine regional difficulties in teacher recruitment and retention and ways to enhance teacher recruitment and retention in those regions demonstrating the greatest need for assistance and a willingness to meet their local ability to pay for public education.

RECOMMENDATION 4: That the Department of Education and the General Assembly create incentives for public schools to improve student achievement levels, instruction, curricula, facilities, and parental involvement, including the establishment of an award designation for schools meeting certain performance criteria.

RECOMMENDATION 5: That regional, multi-site schools focusing on applied learning be established in Southside Virginia and that the Southside Virginia Business and Education Commission coordinate with and monitor area efforts to create these schools.

RECOMMENDATION 6: That state funds be appropriated to provide incentives, such as tuition or bonuses, for individuals residing in regions having low graduation rates to pursue adult basic education and ultimately to obtain adult evening diplomas or G.E.D. certification.

RECOMMENDATION 7: That the General Assembly provide specific funding, either through grants or loans, to those school divisions demonstrating limited fiscal capacity for computer-assisted learning programs, including computer hardware and software, and that receipt of these funds be contingent upon the school division making these learning programs and school facilities available to community colleges and other entities after regular school hours for continuing education programs.

RECOMMENDATION 8: That Southside school divisions be urged to establish or participate in programs to encourage and assist students in obtaining admission and financial aid for higher education.

RECOMMENDATION 9: That the Virginia Community College System and the State Council of Higher Education examine the efficacy and need for extending state financial assistance to part-time students enrolled in community colleges and four-year institutions of higher education and residing in those areas having low per capita income and educational attainment levels and high unemployment rates.

RECOMMENDATION 10: That the Southside Virginia Business and Education Commission examine the need to increase or expand engineering and technology programs in the region's institutions of higher education.

RECOMMENDATION 11: That the Commonwealth continue and increase its funding of the Tuition Assistance Grant Program to ensure continued support for the education and public service missions of Virginia's private colleges and universities.

RECOMMENDATION 12: That state funds be designated to support specific job training efforts for noncredit courses in workplace training centers at community colleges, public schools, and continuing education centers.

RECOMMENDATION 13: That local business and industry be encouraged to increase participation in public education through mentoring, "adopt a school" programs, and other partnerships and by establishing advisory committees for schools and community colleges to assist students and educators in exploring career opportunities and educational goals.

RECOMMENDATION 14: That Southside public schools, community colleges, and four-year institutions of higher education expand dual enrollment programs to facilitate the pursuit of higher education and specific workforce training.

RECOMMENDATION 15: That $100,000 in state funding be appropriated annually for the Southside Virginia Business and Education Commission.

RECOMMENDATION 16: That the Virginia Employment Commission administer a two-year $500,000 pilot program to provide $500 employment bonuses for graduates of Virginia institutions of higher education who accept employment in Southside Virginia in those positions requiring skilled workers and for which there is a demonstrated need for assistance in the recruitment and retention of qualified, skilled personnel.

RECOMMENDATION 17: That state funds be appropriated to support business outreach and liaison positions at community colleges and four-year institutions of higher education to ensure the continued development of effective job training programs and other partnerships between higher education and business.

Finance, Marketing, and Incentives

RECOMMENDATION 18: That the 1992 Session of the General Assembly enact a double-weighted sales factor apportionment formula for the Virginia corporate income tax which will serve as an income tax incentive for all companies to locate and expand in Virginia.

RECOMMENDATION 19: That a 13-member Southside Virginia Marketing Council be established to:

(a) promote Southside Virginia and to help attract development prospects to the region;

(b) encourage localities to work cooperatively to promote the strengths and advantages of the region; and

(c) support regional promotion through funds generated by voluntary local per capita assessments, not to exceed $1 per resident annually, and by matching appropriations from three percent of the state cigarette tax.

RECOMMENDATION 20: That efforts to encourage regional cooperation by the cities and counties of Southside be continued.

RECOMMENDATION 21: That Southside localities, the Department of Economic Development, and the Southside Virginia Marketing Council coordinate with selected successful companies having Southside facilities to develop strategies to attract new or expanded facilities from such companies.

RECOMMENDATION 22: That the General Assembly monitor and examine Department of Economic Development proposals regarding the implementation of the Commission's 1991 one-stop permitting recommendation.

RECOMMENDATION 23: That a 12-member Southside Virginia Development Authority be established to administer:

(a) a $25 million low-interest loan pool or grant program to provide water, sewer, gas, and other infrastructure needs to assist in Southside prospect locations;

(b) a $5 million pilot revolving loan fund to provide loans at market interest rates for the formation of new enterprises and the expansion and modernization of existing industries, especially small and medium sized manufacturers; and

(c) a $5 million "project closing" fund to assist with prospect location decision making and relocation expenses in Southside Virginia.

RECOMMENDATION 24: That the A.L. Philpott Manufacturing Research Center be established to assist firms of all sizes in the modernization of production processes and management and marketing efforts.

Agriculture, Forestry, and Natural Resources

RECOMMENDATION 25: That the Secretary of Economic Development develop a strategic plan to guide the evolution of agriculture in Virginia.

RECOMMENDATION 26: That the 1992-94 biennium budget include funds for expanded research initiatives at VPI & SU and Virginia State University in biotechnology; environmental sciences; the development of new industrial opportunities, such as new uses for tobacco and the use of animal proteins; and the technologies, policies, and incentives needed to promote greater use of wood wastes for fuels and other products.

RECOMMENDATION 27: That the 1992-94 biennium budget include:

(a) $125,000 to complete the planning for the Southeast Virginia Regional Farmers' Market;

(b) $100,000 ($50,000 each year) to support diversification loans for farmers in Southside Virginia; and

(c) $80,000 to establish a loan program to pay farmers two-thirds of the cost of their product upon delivery to the Southside Regional Farmers' Market

RECOMMENDATION 28: That the Rural Rehabilitation Trust Fund administered by the Department of Agriculture and Consumer Services be used to assist low income farmers who want to diversify but are unable to obtain credit from any other source, and that loans should be particularly targeted to development of the aquaculture industry and the use of drip irrigation systems.

RECOMMENDATION 29: That the use of refrigerated trucks and satellite pick-up points for farmers using the Southside Regional Farmers' Market be expanded.

RECOMMENDATION 30: That the State Corporation Commission examine the availability of insurance for diversification crops and report its findings to the House Committee on Agriculture and the Senate Committee on Agriculture, Conservation and Natural Resources during the 1993 Session of the General Assembly.

RECOMMENDATION 31: That the Departments of Economic Development and Agriculture and Consumer Services identify agricultural and forestry industries that are related to the current production base in Southside Virginia, develop expertise in these areas, and target these industries for location or expansion.

RECOMMENDATION 32: That the 1992-94 biennium budget include $750,000 for construction of a pilot agribusiness park in Southside Virginia and that these funds be matched by $250,000 in local funds and administered in a manner similar to the Communities for Opportunity program in Southwest Virginia and that tax revenues generated by this park be shared proportionately by the participating localities.

RECOMMENDATION 33: That the Department of Forestry implement the following to promote growth in the forest products industry:

(a) in conjunction with the Department of Economic Development, explore additional markets for pine pulpwood and chips, particularly among the southern states where prices are higher;

(b) administer a $50,000 revolving loan fund to provide capital for the purchase and operation of mechanized equipment for thinning pine plantations;

(c) coordinate a project with other state agencies and private sector organizations which will result in linkages between industries that produce wood residue and industries that can use the residue in their manufacturing processes; and

(d) together with the Department of Economic Development and Virginia Polytechnic Institute and State University, establish an educational program in hardwood dimension products to stimulate interest among the existing forest products industries.

RECOMMENDATION 34: That the Department of Economic Development and the Virginia Port of Authority, in conjunction with the Departments of Agriculture and Consumer Services and Forestry, develop an export market for hardwood chips and create a plan to develop a chip-loading facility in the Hampton Roads area and a remote chip mill in Southside Virginia for presentation to the Senate Finance and House Appropriations Committees during the 1994 Session of the General Assembly.

RECOMMENDATION 35: That the Secretary of Administration review the policies and procedures that affect the use of nontraditional fuels at state facilities and proceed with conversions to wood-burning boilers where economically feasible.

RECOMMENDATION 36: That the Coal and Energy Commission, with the assistance of the Virginia Center for Coal and Energy Research and the Brooks Forest Products Center at VPI & SU, examine the policies needed to promote greater use of wood wastes for fuel.

RECOMMENDATION 37: That the Departments of Transportation and Forestry report the results of a pilot project using timber bridges in the bridge replacement program to the Senate Finance and House Appropriations Committees during the 1994 Session of the General Assembly.

RECOMMENDATION 38: That the Department of Economic Development target the structural timber manufacturing industry for development in Southside Virginia.

RECOMMENDATION 39: That the 1992-94 biennium budget include $750,000 to develop a regional forests products industrial park in Southside Virginia and that this park be developed in a manner similar to the Communities for Opportunity program, with localities providing $250,000 in matching funds and that tax revenues generated by this park be shared proportionately by the participating localities.

RECOMMENDATION 40: That a conservation commission be established to administer a non-reverting conservation trust fund, financed by an increase in the tax on distilled spirits equivalent to $1.50 per gallon, for exclusive use by the Departments of Conservation and Recreation, Forestry, and Game and Inland Fisheries for capital outlay projects.

RECOMMENDATION 41: That the Department of Conservation and Recreation expand the private sector's role in the development, improvement, operation, and acquisition of state parks; establish Friends of State Parks programs; promote the nontraditional use of farm/agricultural land; and provide for joint land acquisition and management of natural areas between the Commonwealth and conservation organizations.

RECOMMENDATION 42: That the Departments of Economic Development, Housing and Community Development, and Conservation and Recreation act as facilitators to generate local leadership, commitment, and cooperation for the development of the recreational potential in Southside.

RECOMMENDATION 43: That a recreation and tourism "hub" be developed for the Southside region, and that the Department of Economic Development, Division of Tourism:

(a) establish a pilot project in Southside Virginia for the Local Tourism Accreditation Program to introduce localities to the program and its potential for the region; and

(b) convene a work group to design a campaign to promote the regional recreational hub.

RECOMMENDATION 44: That planning district commissions prepare regional open space and recreation plans that can be incorporated into local plans and zoning decisions.

RECOMMENDATION 45: That the Secretaries of Economic Development and Natural Resources promote improved communication among agricultural and forestry industries, private sector industry associations, and the environmental agencies and groups through the use of public meetings, workshops, and conferences.

RECOMMENDATION 46: That the Migrant and Seasonal Farmworkers Board and state agencies continue to streamline implementation of the laws and regulations related to the employment of migrant workers, and that the current sunset provision on the small business exemption from the definition of migrant labor camps be removed.

Infrastructure

RECOMMENDATION 47: That the Commonwealth of Virginia develop a two-tiered advertising program which would jointly promote industrial and tourism site locations in rural areas and throughout that state and that industrial site locations be included in the existing tourism advertising program.

RECOMMENDATION 48: That the Commonwealth institute a policy which limits growth in areas that are not self-sufficient in natural resources and must import or draw from other regions' basic natural resources, such as water and air.

RECOMMENDATION 49: That the Commonwealth's funding and construction schedules for U.S. 58 be restored to their status prior to Virginia's funding shortfall.

RECOMMENDATION 50: That the Virginia Department of Transportation include in its proposals for the federal Highways of National Significance plan all of U.S. 15, 29, 58, and 460; U.S. 220 from Roanoke to the North Carolina border; U.S. 360 from Danville to Richmond; Virginia Route 49 from Crewe to the North Carolina border; U.S. 501 from Lynchburg to South Boston; and all of Virginia Route 40, to enhance Southside's highway infrastructure and to promote rapid access to commercial markets.

RECOMMENDATION 51: That the development of a "superport" which will provide air service to the Richmond and Tidewater regions be considered for a location south of the James River and west of the City of Chesapeake, such as Fort Pickett and Nottoway County.

RECOMMENDATION 52: That the Department of Aviation and Southside's commercial air facilities develop a public marketing program to promote commercial air services and to encourage Southside residents, businesses, and industries to fully utilize existing air transportation services in the region.

RECOMMENDATION 53: That the Commonwealth establish a policy recognizing the importance of adequate access to industrial parks, and that modifications to the Virginia Department of Transportation Industrial Access Roads Program be considered to foster program use at the local level.

RECOMMENDATION 54: That the Department of Transportation continue to strengthen the Commonwealth's system of primary roads.

RECOMMENDATION 55: That the proposed federal "superhighway" from Norfolk to California follow the existing U.S. 58 corridor across the entire southern border of Virginia.

RECOMMENDATION 56: That the Governor and the General Assembly support the restoration of the Virginia Housing Partnership Fund in the general fund budget at a level of $50 million for the 1992-94 biennium.

RECOMMENDATION 57: That the Department of Economic Development's Industrial Shell Building Program be continued to allow rural economic development authorities to provide industrial facilities which increase prospect traffic; that funding of this program reduced due to fiscal shortfalls be restored; and that the Department consider extending the program to include smaller buildings that might accommodate businesses meeting other program criteria.

RECOMMENDATION 58: That the Department of Economic Development establish an automated building and site marketing system, modeled after programs in North Carolina and Georgia, and that this system include an integrated computer-laser projection system providing graphics and illustrated details concerning sites in Virginia to improve the Commonwealth's marketing competitiveness for new industrial prospects.