AGENDA DATE: 4/21/2021
TITLE:
Amendment to WillowTree Virginia Jobs Investment Program Match Grant Funding Agreement
SUBJECT/PROPOSAL/REQUEST: Approval of the First Amendment to the Virginia Jobs Investment Program (VJIP) Match Grant Funding Agreement between the County, the EDA, and WillowTree, Inc. to extend the performance date
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Walker, Kamptner, DeLoria, Johnson, Newberry, Schmack
PRESENTER (S): Roger Johnson
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: In 2018, Albemarle County and its Economic Development Authority (EDA) partnered with the Commonwealth of Virginia to support the redevelopment of the historic Woolen Mills site and the retention and expansion of WillowTree, Inc. The partnership with the Commonwealth utilized two different state grant programs - the Commonwealth Development Opportunity Fund (COF) and the Virginia Jobs Investment Program (VJIP).
The VJIP program provides funding to companies creating new jobs or experiencing technological change to reduce the human resource development costs for new companies, expanding companies, and companies retraining their employees. Unlike the COF grant program, the VJIP grant program does not require a match from the local government where the business is located.
STRATEGIC PLAN: Economic Prosperity - Foster an environment that stimulates diversified job creation, capital investments, and tax revenues that support community goals.
DISCUSSION: On September 18, 2018, the Board authorized the County Executive to execute a performance agreement allowing the County and the EDA to provide a combined maximum of $200,000 to match the Commonwealth’s VJIP grant. For each new full-time job created in Albemarle County, the Commonwealth provides a $1,000 grant. To match it, the County provides $500 per job and the Albemarle County EDA provides $500 per job. The agreement provides a match for a maximum of 200 jobs (see Attachment A). The current agreement expired on March 1, 2021.
Due to the COVID-19 crisis and state-mandated restrictions regarding social distancing and other protections, WillowTree has been unable to make full use of their new headquarters. WillowTree requested a 15-month extension from the Virginia Economic Development Partnership to highlight their current posture (see Attachment B). VEDP granted a 15-month extension to the VJIP performance date (Attachment C).
The First Amendment to the VJIP Match Grant Funding Agreement (Attachment D) extends the performance date to match VEDP’s agreement.
BUDGET IMPACT: There is no budget impact as a result of this amendment. The $200,000 VJIP match has been previously budgeted, and $100,000 will come from the County’s Economic Development Opportunity Fund and $100,000 will come from the EDA’s budget.
RECOMMENDATION:
Recommendation
Staff recommends that the Board adopt the attached Resolution (Attachment E) to approve the Amended VJIP Match Grant Funding Agreement and to authorize the County Executive to sign the Amended Agreement on behalf of Albemarle County once it has been approved as to substance and form by the County Attorney.
ATTACHMENTS:
A - Current VJIP Match Grant Funding Agreement (9/18/18)
B - WillowTree VJIP Extension Request
C - VEDP Extension Request Approval Letter
D - Amended VJIP Match Grant Funding Agreement
E - Resolution