RD330 - Virginia Israel Advisory Board FY2010 Review


Executive Summary:
1. The VIAB contributed to the growth of 114 new jobs in FY2010 after discounting VIAB’s contribution to the Sabra job creation by a conservative 75% for shared involvement by other agencies. This represents additional tax revenue to the Commonwealth of $410,400 on a tax base of $6.4 million. The ROI to the Commonwealth based on the VIAB’s budget is 322% for FY2010.

2. From 2000 – 2010, the VIAB has been involved with activities that have added approximately 1,134 net new jobs to Virginia’s workforce. These jobs generated approximately $38.4 million in state tax revenues which represents 24 x our budget over the same ten year period or a 2375% return. Even if we discount that amount by 75% because of shared involvement by other agencies, the VIAB generates a 594% ROI to the Commonwealth.

3. The VIAB projects that the current pipeline of activities will increase jobs in Virginia by 555 jobs over the next one to three years which would translate to additional tax revenue of $2.0 million based on a tax base of $33.3 million.

4. The Sabra plant which opened in May, 2010, will employ 260 workers by the end of 2010 with another 40 workers in 2011. While the decision to move the headquarters from New York to Richmond, Virginia, is on hold, the company plans to move additional 35 – 40 jobs from the New York headquarters to Richmond in any case. As a result of the VIAB’s work with the Virginia Department of Agriculture and Sabra, Virginia State University, is developing a “Sabra Chickpea”. Until now, chickpeas have not been grown in Virginia. Early indications are that we will be successful. This could lead to employment for 10,000 farmers in Virginia based on Dr. Bhardwaj’s estimates. Some of the agricultural job growth must be discounted since not all of the chickpea production will be net additional agricultural production. On the other hand, migration to chickpea production will always be migration from a lower value added crop to a higher value added crop.

5. The VIAB initiative that led to the establishment of the “Virginia Israel Bio Sciences Commercialization Center” has morphed into Virginia Life Science Investments (VLSI). A total of twelve Israeli companies are now part of the initiative. $18 million has been raised in a private equity fund to support the growth of these and additional companies. During 2010, the VIAB assisted in securing a $500,000 direct investment from an industrial leader in Israel. The fund has made nine investments in Israeli companies to date. While total job creation stands at nine, it is expected to rise to about thirty within the next 12-24 months.

6. The VIAB is working closely with two very large Israeli Defense contractors to establish facilities in NOVA. These two projects should add approximately 300 jobs in the next 12 – 36 months and is calculated in the pipeline of jobs in 3 above.

7. The VIAB has initiated a multi directional program intended to significantly expand Amdocs, a $3+ billion Israeli IT company, in Virginia. This could create 500 jobs over the next 12 to 36 months.

8. We continue to work with the Airports Authority encourage United Airlines (soon to be merged with Continental) to initiate a direct flight between Dulles and Tel Aviv.

9. The VIAB is working with Dominion Resources and the Dominion Resource CleanTech Commercialization Center to attract late stage Israeli companies to Virginia. We are patterning this program after the successful BioScience program in Richmond that we initiated.

10. From an Education and Culture standpoint, we launched the Minds In Motion program in Israel and hope to obtain some Federal funding to validate via an R&D project that the program can be used as a tool for teaching tolerance.

11. We are in the process of planning a potential trip by Governor McDonnell to Israel in the Fall of 2011.