RD96 - Annual Executive Summary of Interim Activity of the Tobacco Region Revitalization Commission - FY16: 07/01/15 - 12/31/15


    Executive Summary:
    The Tobacco Region Revitalization Commission is a 28-member body created by the 1999 General Assembly. It was 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 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. (See Section 3.2-3101, Code of Virginia).

    Payments to Tobacco Farmers

    The Commission has compensated tobacco producers and quota owners for their losses due to the decline in tobacco quota and has satisfied its statutory obligation to indemnify burley and flue-cured producers and quota owners. No further distributions for that purpose are contemplated.

    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. As today’s markets are global and employment is increasingly knowledge-based, the Commission seeks to accelerate regional transformation so that all residents enjoy opportunities for education and employment and benefit from economic diversification.

    The Commission’s revitalization efforts are made through grant programs that make cash awards to local governments, government entities, and non-profit organizations. The Commission prioritizes projects that maximize benefit to 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.

    The following is a summary of grants made by the Commission from July 1, 2015 through December 31, 2015.

    A total of 67 grant applications were received, of which 46 were approved. Table 1 below summarizes the grants by program type, and Table 2 summarizes the same grants by status.

    Table 1: Summary of grants 6-months beginning 7/1/15, by program

    Grant Program: AgriBusiness
    Count: 1
    Requested Amount ($): $467,140
    Net Award ($): —

    Grant Program: Education - 4 Year Scholarships
    Count: 2
    Requested Amount ($): $7,618,015
    Net Award ($): $7,618,015

    Grant Program: Education - Centers of Excellence
    Count: 3
    Requested Amount ($): $7,753,218
    Net Award ($): $6,750,446

    Grant Program: Education - Community College Financial Aid
    Count: 10
    Requested Amount ($): $3,900,860
    Net Award ($): $3,900,860

    Grant Program: Education - Competitive Education
    Count: —
    Requested Amount ($): —
    Net Award ($): —

    Grant Program: MegaSite
    Count: —
    Requested Amount ($): —
    Net Award ($): —

    Grant Program: Research and Development
    Count: 1
    Requested Amount ($): $2,000,000
    Net Award ($): —

    Grant Program: Reserve
    Count: —
    Requested Amount ($): —
    Net Award ($): —

    Grant Program: Southside Economic Development
    Count: 2
    Requested Amount ($): $672,118
    Net Award ($): —

    Grant Program: Southwest Economic Development
    Count: 19
    Requested Amount ($): $24,461,543
    Net Award ($): $2,953,115

    Grant Program: Special Projects
    Count: 15
    Requested Amount ($): $22,120,811
    Net Award ($): $3,830,528

    Grant Program: Technology
    Count: —
    Requested Amount ($): —
    Net Award ($): —

    Grant Program: Tobacco Region Opportunity Fund
    Count: 14
    Requested Amount ($): $7,218,001
    Net Award ($): $8,843,000

    TOTAL COUNT: 67
    TOTAL REQUESTED AMOUNT ($): $76,211,706
    TOTAL NET AWARD ($): $33,895,964

    Table 2: Summary of grants 6-months beginning 7/1/15, by grant status

    Grant Status: Approved - Active
    Count: 25
    Requested Amount ($): $19,117,943
    Net Award ($): $15,441,193

    Grant Status: Approved - Closed
    Count: —
    Requested Amount ($): —
    Net Award ($): —

    Grant Status: Approved - Pending Award Documents
    Count: 21
    Requested Amount ($): $21,272,232
    Net Award ($): $18,454,771

    Grant Status: Declined
    Count: 21
    Requested Amount ($): $35,821,531
    Net Award ($): —

    Grant Status: Submitted - Tabled
    Count: —
    Requested Amount ($): —
    Net Award ($): —

    Grant Status: Submitted - Under Review
    Count: —
    Requested Amount ($): —
    Net Award ($): —

    TOTAL COUNT: 67
    TOTAL REQUESTED AMOUNT ($): $76,211,706
    TOTAL NET AWARD ($): $33,895,964