RD42 - Annual Executive Summary of Interim Activity of the Tobacco Indemnification and Community Revitalization Commission - FY14: 07/01/13 - 01/7/14


    Executive Summary:
    FY13 Annual Report:
    http://www.tic.virginia.gov/pdfs/Annual%20Reports/2013%20-%20Annual%20Report.pdf

    Executive Summary

    The Tobacco Indemnification and Community Revitalization Commission is a 31-member body created by the 1999 General Assembly. Its mission is the promotion of economic growth and development in tobacco-dependent communities, using proceeds of the national tobacco settlement.

    Mission

    “The Commission is established for the purposes of determining the appropriate recipients of moneys in the Tobacco Indemnification and Community Revitalization Fund and causing distribution of such moneys for the purposes provided in this chapter, including using moneys in the Fund to (i) provide payments to tobacco farmers as compensation for the adverse economic effects resulting from loss of investment in specialized tobacco equipment and barns and lost tobacco production opportunities associated with a decline in quota and (ii) revitalize tobacco dependent communities.” -- Section 3.2-3101, Code of Virginia

    Status of Indemnification of Tobacco Farmers

    The Commission compensated tobacco producers and quota owners for their losses due to the decline in tobacco quota from the 1995-98 average through 2002, the effective year of the federal tobacco quota buyout. The Commission has satisfied its statutory obligation to indemnify burley and flue-cured producers and quota owners. From its inception through the end of fiscal year 2012, the Commission made available $309 million in addition to the $170 million from other sources for indemnifying losses.

    Status of Revitalization of Tobacco Dependent Communities

    Communities and citizens throughout the Southside and Southwest regions of Virginia continue to experience significant economic distress as a direct consequence of historical dependence on tobacco production, textile and furniture manufacturing and coal production. In today’s environment, where markets are largely global and employment is increasingly knowledge-based, the Commission seeks to accelerate regional transformation so that all residents enjoy expansive opportunities for education and employment, while communities benefit from economic diversification and enhanced prosperity.

    Revitalization is accomplished through eight grant programs that make awards to local governments, government entities, and non-profit organizations. The Commission prioritizes projects that maximize leveraging from applicants and other partner organizations, and gives preference to projects that have regional participation and generate the most significant economic outcomes – primarily measured in terms of new jobs, income and taxable private capital investment - for the residents, businesses and localities in the tobacco region.

    Investments Summary – Life to Date:

    More than 2,800 grant applications received since 2000 – more than 1,700 grants awarded since 2000.

    Tobacco Commission Investments
    LTD as of 1/7/2014

    Grant Program: Agribusiness
    Net Investment: $20,030,663

    Grant Program: Education
    Net Investment: $129,127,065

    Grant Program: R&D
    Net Investment: $66,535,698

    Grant Program: Reserve Account
    Net Investment: $39,091,709

    Grant Program: Southside Econ Dev
    Net Investment: $207,221,653

    Grant Program: Southwest Econ Dev
    Net Investment: $106,803,310

    Grant Program: Special Projects
    Net Investment: $178,036,767

    Grant Program: Technology
    Net Investment: $101,285,263

    Grant Program: TROF
    Net Investment: $99,425,223

    TOTAL Net Investment: $1,022,269,265

    Since FY08, Commission investments in broadband, shovel-ready sites, workforce training and industry recruitment incentives (including $75 million of TROF funds in 136 projects) have resulted in commitments by private employers to create more than 14,000 new jobs and $3 billion in capital investment. Examples include:

    • the largest investment in the history of Southern Virginia when Microsoft selected Mecklenburg County for a multi-phase data center project;
    • the location of Amazon’s one million square foot distribution center in Dinwiddie County;
    • multiple expansions of Tempur-Sealy in Scott County;
    • IKEA’s Swedwood facility in Danville-Pittsylvania and accompanying suppliers.

    Investments Summary – FY14 to Date:

    More than 100 grant applications received in FY14 – more than 69 grants awarded in FY14

    Tobacco Commission Investments
    7/1/2013 - 1/7/2014

    Grant Program: Education
    Net Investment: $14,179,075

    Grant Program: R&D
    Net Investment: $6,100,000

    Grant Program: Southside Econ Dev
    Net Investment: $5,688,445

    Grant Program: Southwest Econ Dev
    Net Investment: $4,817,784

    Grant Program: Special Projects
    Net Investment: $18,550,879

    Grant Program: TROF
    Net Investment: $63,461,183


    TOTAL Net Investment: $63,461,183

    FY14 Commission investments in shovel-ready sites, workforce training and industry recruitment incentives (including $6.3 million of TROF funds in 18 projects) have resulted in commitments by private employers to create more than 700 new jobs and $550 million in capital investment.

    Meeting Summary

    Meetings are held three times per year, during which grants proposals are reviewed and approved and policy changes are discussed and implemented. The following meetings have taken place FY14 to date:

    • Three Commission Meetings
    • Three Executive Committee Meetings
    • One Agribusiness Committee Meeting
    • Two Southside Economic Development Committee Meetings
    • Two Southwest Economic Development Committee Meetings
    • Three Education Committee Meetings
    • Three Research and Development Committee Meetings
    • Four Special Projects Committee Meetings
    • Two Tobacco Region Opportunity Fund Committee Meetings

    Advanced Manufacturing Workforce Committee Meetings

    To fulfill the recommendations within the January 2013, Boston Consulting Group (BCG) report, the Tobacco Commission (TICRC) in partnership with the Commonwealth Center for Advanced Manufacturing (CCAM) initiated a project to fund at least three Centers of Excellence (CoE’s) for advanced manufacturing.

    Per the recommendations in the BCG report, three committees have been formed and meetings of those Committees convened in August and November of 2013. The committees are a Curriculum Committee, Resources Committee, and Marketing Committee. The meetings provided the frame work to begin drafting a Request for Proposals (RFP) document for release in January 2014.

    Advanced Manufacturing Workforce Plan Full Report: http://www.tic.virginia.gov/pdfs/10%2029%2012%20%20-%20Adv%20Manufacturing%20Workforce%20Plan%20Final%20Report-vF.pdf

    Advanced Manufacturing Workforce Plan Presentation:
    http://www.tic.virginia.gov/pdfs/10%2029%2012%20-%20Adv%20Manufacturing%20workforce%20plan%20presentation.pdf