RD331 - Virginia Economic Development Partnership Annual Report - Fiscal Year 2008


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 of the Code of Virginia and Chapter 849, Item 124 D.1 of the 2008 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 business prospect 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 849, Item 124 D.2 of the 2008 Appropriations Act requires target industries be identified for southwest and southside Virginia. This report responds to all those requirements. In addition, the Authority’s financial statements audited by the Auditor of Public Accounts for fiscal year ended June 30, 2008 (FY 2008) are attached to this report.

This Annual Report documents the efforts of VEDP in fulfilling its mission during FY 2008. 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 2008 accomplishments.

VEDP’s report and plan to market to high unemployment regions of the state are included in Appendix 1 which satisfies the requirement articulated in §2.2-2238 B of the Code of Virginia for VEDP to prepare and report on the plan to market to high unemployment areas of Virginia.

The next two appendices satisfy Item 124 D.2 of the 2008 Appropriations Act. The data on business prospect 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 data used throughout this report and summarized in Appendix 4 cover announcements made between July 1, 2007 and June 30, 2008. VEDP recorded the announcement of new and 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. This appendix 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 19,725 new jobs will be created. In addition, these facilities will result in investments totaling $3.4 billion. Forty percent of the announcements were of employers locating in economically distressed areas. These announcements are expected to create 8,945 new jobs and make capital investments exceeding $2.26 billion.

This report is based on announcements of planned manufacturing and non-manufacturing capital expenditures and associated employment; 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.

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 Kaine presented his strategic plan titled Virginia Leading the Way in 2006. A report on the status of the implementation of Governor Kaine’s strategic plan can be found beginning on page 18 of this report. The entire strategic plan can be accessed at http://www.commerce.virginia.gov/EconomicDevelopment/index.cfm.