RD208 - Virginia Israel Advisory Board FY2011 Review


Executive Summary:
1. The Sabra factory in Chesterfield County continues to be a major economic success for the Commonwealth despite the challenging economy. The Sabra facility has added approximately 105 jobs during FY2011 and expects to add another 195 jobs over the next 24 month period.

2. The VIAB initiative that led to the establishment of the “Virginia Israel Bio Sciences Commercialization Center” has progressed to become Virginia Life Science Investments (VLSI). A total of ten Israeli companies are now part of the initiative. An $18 million fund has been raised to support the growth of these and additional Israeli companies and an additional round of investment may be sought in the next 12 - 24 months. The VIAB was responsible for securing the fund’s first Israeli investor who has invested $500,000 of direct investment into Virginia via the fund. To date, approximately 33 jobs have been created trough the initiative.

3. FY 2011 presented many challenges due to the melt down of the economy followed by very slow and unsustained growth. OSG, an Israeli company, which began operations in FY2007 in Emporia, increased total workers from 25 to 140 in the beginning of FY 2009 after accelerating a three year plan. The economy and an unexpected time void between contracts caused a cutback in manpower to fewer than 50 workers.

4. Despite the poor economic conditions, 182 new jobs were added in FY2011 which represents additional tax revenue to the State of $546,000 on a tax base of $10.9 million. This is an increase in job creation from 114 in FY2010.

5. From FY2000 – 2011, the VIAB has been involved with activities that have added approximately 1,316 net new jobs to Virginia’s workforce. These jobs generated approximately $35.9 million in state tax revenues. If we assume that the VIAB was involved in 25% of the decision process, the amount of tax revenue generated by the VIAB is $8.98 million which represents a 512% return on the State’s investment in the VIAB over the past eleven years.

6. The VIAB projects that the current pipeline of activities with twelve leading potential prospects will increase jobs in Virginia by 623 jobs over the next one to three years which would translate to additional state tax revenue of $1.87 million based on a tax base of $37.38 million.