RD400 - Virginia-Israel Advisory Board FY2014 Annual Review
Executive Summary: FY 2014 Results
1. The Sabra factory in Chesterfield County continues to be a major economic success for the Commonwealth despite the challenging economy. The Sabra facility opened its Center of Excellence in April 2013 and opened its manufacturing expansion in April, 2014. An estimated 170 jobs will be added during the 2014-2015 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 nine Israeli companies are now part of the initiative. An $18 million fund has been raised to support the growth of these companies. 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. Significantly, EOS of Tidewater expanded its manufacturing facility in FY2013 to produce countertops based on Cupron technology. Expanded studies are now taking place with the Sentara health organization. Cupron is one of the original companies the VIAB introduced to the VLSI during a Gateway program. Total new jobs for EOS as a result of the Cupron product is expected to reach 48 people.
3. The VIAB in Agro Technology in SW Virginia is expanding. The VIAB has teamed with Virginia Tech to evaluate and facilitate Israeli agro tech projects/investment in the Southwestern part of Virginia. The VIAB is working on two major projects: Project Jonah (aquaculture) and a “smart turnkey greenhouse” project. The VIAB is exploring other ways to augment this initiative including special funding opportunities. Progress is being made including due diligence visits to Europe to evaluate the opportunities. These projects can lead to additional new jobs in Southwest Virginia totaling between 450 and 525 jobs over the next 12 – 24 months.
4. Despite slow economic growth in FY2014, 172 new jobs were added in FY2014 from VIAB efforts representing additional tax revenue to the State of $573,620 on a tax base of $9.98 million.
5. From FY2000 – 2014, the VIAB has been involved with activities adding approximately 1,810 net new jobs to Virginia’s workforce. These jobs have generated approximately $54.3 million in state tax revenues. If we discount this amount by a conservative 78% for multiple parties involved in the decision process to establish a facility in Virginia, the amount of tax revenue generated by the VIAB is $11.9 million which represents a 519% return on Virginias’ investment in the VIAB over the past fourteen years.
6. The VIAB projects that the current pipeline of activities will increase jobs in Virginia by 740 jobs over the next one to three years. This would translate to additional state tax revenue of $2.47 million based on a tax base of $42.9 million.
7. The State Auditor of Public Accounts completed its Audit for FY2014. Their findings are as follows:
• Proper recording and reporting of all transactions, in all material respects, in the Commonwealth Accounting and Reporting System
• No matters involving internal control and its operation necessary to bring to management’s attention;
• No instances of noncompliance with applicable laws and regulations or other matters that are required to be reported.
The primary mandate of the Virginia Israel Advisory Board continues to be economic development in Virginia. Our goals and strategies are:
1. Facilitating new Israeli company entry into Virginia.
2. Working with the Israeli companies already located in Virginia via networks to help facilitate internal growth and expansion.
3. Leveraging the company’s strength in order to create a multiplier effect for job creation.
4. We devote from 10% - 15% of our energies to special educational and cultural projects.