RD203 - Annual Report of the Virginia Economic Development Partnership Authority


Executive Summary:
[This annual report of the Virginia Economic Development Partnership (VEDP) is submitted pursuant to the requirements of §§ 2.2-2242 and 2.2-2239 and 2.2-2238 of the Code of Virginia and Chapter 4, Item 128 D.1 of the 2004 Appropriations Act.]

This annual report of the Virginia Economic Development Partnership (VEDP) is submitted pursuant to the requirements of §§ 2.2-2242 and 2.2-2239 of the Code of Virginia and Chapter 4, Item 128 D.1 of the 2005 Appropriations Act. The Code requires VEDP to report on the status of the Commonwealth's comprehensive economic development strategy, and specifically on the number of site visits per region of the Commonwealth. In addition, § 2.2-2238 B requires VEDP to prepare and report on the plan to market to high unemployment areas of the state, and Chapter 4, Item 128 D.2 of the 2005 Appropriations Act requires target industries be identified for southwest and southside Virginia. This report responds to all those requirements. In addition, the Authority's audited financial statement by the Auditor of Public Accounts for fiscal year 2005 (FY 2005) is attached to this report.

This Annual Report documents the efforts of VEDP in fulfilling its mission during FY 2005. The body of the report is organized by the major components of the Partnership's mission statement. For each element of the mission statement, a summary of VEDP activities and division responsibilities is included as well as a listing of FY 2005 accomplishments.

For the fifth consecutive year, Virginia has been named to the "honor roll" for the 2004 Development Report Card for the States.

VEDP's report and plan to market to high unemployment regions of the state are included in Appendix 1. This satisfies the requirement for VEDP to prepare and report on the plan to market to high unemployment areas of Virginia.

The data on site visits per planning district is contained in the tables and maps of Appendix 2. Appendix 3 shows the number of sites and buildings recommended to prospects and provides the number of companies assisted with site and building recommendations.

VEDP monitors economic development activity in Virginia through its economic development announcements database. The database tracks direct investments and new jobs created in Virginia as a result of the announced plans of new and expanding companies. This information has been maintained, with modifications, since 1960. The figures used throughout this report and summarized in Appendix 4 cover announcements made between July 1, 2004, and June 30, 2005. VEDP participated in the announcement of75 new and 405 expanding facilities during the year. Appendix 4 sets out the number of announcements by Planning District Commission (PDC), both in terms of new facilities and expansions. Appendix 4 also sets out the number of new jobs and amount of new investment by PDC. It is anticipated that from those announcements, a total of 49,485 new jobs will be created. In addition, these facilities will result in investments totaling $3.2 billion. One third of the announcements were for employers located in economically distressed areas.

As noted above, VEDP is required by statute to report on the status of the Governor's comprehensive economic development plan. Upon taking office, each governor must develop a comprehensive economic development strategy. Governor Warner's team held several public meetings to discuss how the goals for this plan would be implemented and published its report, "One Virginia, One Future," on December 4, 2002. Appendix 5 updates the progress of this plan.

This report is based on announcements of planned manufacturing and non-manufacturing capital expenditures; many of the new facilities announced are not yet in operation. While the information indicates the kind of new economic activity occurring in the state, it does not measure total employment growth. Information for this report is obtained from the Virginia Economic Development Partnership's public and private sector contacts at state, regional, and local levels, as well as from published sources and Partnership staff.