RD102 - Virginia Coalfield Economic Development Authority 2014 Annual Report


Executive Summary:
Many jobs were lost in 2014 in the mining industry, which remains the single most important economic driver to this area’s economy, making this a difficult year for the coalfield region of Virginia. This had a ripple effect across other industries in the area as the region struggled to keep pace.

Fortunately, gains were made in other diversified industry sectors that will help to offset some of these losses. New announcements by Appalachian Biofuels, LLC, Buchanan County – Dickenson County Community Health, and Micronic Technologies, as well as expansion projects by Forest BioProducts, Simmons Equipment Company, Tadano Mantis Corporation, and Tri-State Energy, hold the promise of over 250 new and retained jobs. The grand opening of the historic Inn at Wise, and the 52 jobs to be created by that project, also will help.

VCEDA did its part to assist. In 2014, the Authority approved nearly $9 million in new funding with nine loans, one loan increase, and six grants. This was despite a continued slowdown in coal-related tax revenues coming into the Authority.

Many of VCEDA’s investments in 2014 were infrastructure related, and developing the region’s infrastructure remains a critical part of planning for its future. This year VCEDA approved funding for two new industrial buildings, additional build-out of the Appalachia America Energy Research Center, and utilities to serve two of the region’s industrial parks. VCEDA closed up to a $1.5 million loan to help complete 4G wireless towers in Buchanan, Russell, and Wise counties, further adding to broadband deployment in the e-Region. VCEDA also made investments at the Breaks Interstate Park, an important part of the region’s tourism economy.

VCEDA also maintained a focus on marketing and business development, handling 90 inquiries concerning the region in 2014, participating in 32 prospect visits and 17 outreach marketing events to promote the region for new business. VCEDA contracted with Sanford Holshouser Economic Development Consulting to analyze VCEDA’s target market sectors, as well as conduct a lead generation campaign for the region.

In conclusion, while job losses in mining continue to plague the region, the role of VCEDA is now as important as ever.

Jonathan Belcher
Executive Director/General Counsel