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File #: 21-231    Version: 1 Name:
Type: Agreement/Contracts Status: Action Items
File created: 3/15/2021 In control: Board of Supervisors
On agenda: 4/21/2021 Final action:
Title: Amendment to WillowTree Commonwealth's Development Opportunity Fund Match Performance Agreement
Attachments: 1. Att.A - WillowTree COF Performance Agreement, 2. Att.B - WillowTree COF Match Performance Agreement, 3. Att.C - Proposed First Amendment to COF Match Performance Agreement.pdf, 4. Att.D - Resolution
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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AGENDA DATE: 4/21/2021

TITLE:
Title
Amendment to WillowTree Commonwealth's Development Opportunity Fund Match Performance Agreement
BODY

SUBJECT/PROPOSAL/REQUEST: Approval of the First Amendment to the WillowTree Commonwealth's Development Opportunity Fund Match Performance Agreement to address impacts from the COVID-19 pandemic

ITEM TYPE: Regular Action Item

STAFF CONTACT(S): Richardson, Walker, Kamptner, DeLoria, Johnson, Newberry

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's Development Opportunity Fund (COF) and the Virginia Jobs Investment Program (VJIP).

The COF matching grant is considered a "deal-closing" fund to be employed at the Governor's discretion to secure a company location or expansion in Virginia. A significant portion of the financial support for the partnership came through the COF matching grant program. The COF provided a $500,000 grant to support the retention and expansion of WillowTree, Inc., based on an expected amount of capital investment and job creation. The COF requires a $500,000 matching grant from the County.

The County matched the COF grant by pledging to rebate 50% of future tax revenues accrued through BPOL and real estate taxes. At that time, WillowTree, Inc. was at significant risk of relocating out of state. Both the Commonwealth and County determined that the stimulation of the additional tax revenue and economic activity constituted a valid public purpose for the partnership. The COF Performance Agreement for the COF grant includes the specific targets and timelines for capital investment and job creation that must be met to ...

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