Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, April 24, 1993 TAG: 9304260347
SECTION: EDITORIAL PAGE: A-9 EDITION: METRO
SOURCE: JAMES W. ROBINSON
DATELINE: LENGTH: Long
The Virginia Coalfield Economic Development Authority was created by the Virginia legislature in 1988 to broaden the economic base of the seven coalfield counties and the city of Norton. Most people are aware that the region's economy has depended on the coal industry for generations. However, in the decade of the '80s, the coalfields lost more than 10,000 jobs and 10 percent of their population.
The authority is governed by a 15-member board of unpaid volunteers - eight are business executives and the remaining are elected officials or public employees. The business group includes representatives of the three largest taxpayers in the coalfield region. The authority has provided a vehicle for participation from the public and private sector at both local and state levels of government. It also provides an opportunity for the largest contributors to the public fund to have some say-so in how those funds are invested to help secure an economic future for this region. Its funds are not subject to the everyday pressures of local government budgets, which means we have resources to make things happen when an opportunity arises.
The authority's program is based on regional cooperation with a major emphasis on recruiting new industry to the region while assisting our existing industry to grow and expand. We have developed a revolving-loan fund to provide financial assistance in that regard. We also provide grant assistance for the development of industrial sites. Recruiting activities are handled by the Southwest Virginia Promise, the marketing arm of the authority.
The authority has approved 10 loans, five for new industry and five for the expansion of existing industry, for a total amount of $5,396,684. Industries receiving financial assistance have announced plans to create 1,585 new jobs for our region. Some of the companies have not had time to create the number of new jobs expected while others have exceeded the number.
In reference to ASAA Technologies, a ground-breaking ceremony was held at ASAA on April 16 when the company began construction on a 60,000 square-foot addition providing 225 more jobs, bringing its employment to 375.
Also mentioned was Donnkenny, which is employing more people every month. It is confident of achieving the projected number of 225 jobs. We should also mention that Donnkenny is the first new manufacturing plant of its size to locate in Dickenson County in more than 25 years, a major accomplishment for this county and the coalfields.
DeRoyal was also mentioned as having canceled a project, but it was not mentioned that DeRoyal built two new plants in Lee County, which required no assistance from the coalfield authority. Combined with another facility, they are employing more than 200 people.
Another project misrepresented was Buchanan Bolt, a company that will provide 55 jobs in Buchanan County, which has lost more than 5,000 jobs in the decade of the '80s and 17 percent of its population. This is the first major manufacturing plant to locate in Buchanan County in many years and is an outstanding accomplishment for this county and the coalfield region.
Other projects not mentioned by Longaker include the AT&T/Virginia Relay Center in Norton, which will increase employment to 225 jobs up from the 100 originally projected. Also, Fournier Furniture Company of St. Paul, which now employs 419 of its 500 projected jobs, has announced plans to double employment and the size of its plant. This project is a product of regional cooperation that resulted when a loan was approved from the coalfield authority for the construction of this plant. Wise County authorized the authority to use funds from its account to help, even though the project was located in Russell County.
In addition to the jobs that will be created by companies receiving financial assistance from the authority, we are pleased to report that 855 new jobs have been or will be created from eight projects, as a result of marketing and support assistance provided by the coalfield authority. This brings the total to 2,440 new basic jobs that the authority's activities will help to create.
After a quick survey of the companies involved, we find 1,180 of these jobs have been filled. Four projects are under construction and will account for the majority of the remaining jobs. We have every reason to believe that 2,440 jobs will not only be achieved but will be exceeded.
The authority has also provided grant assistance to help with the development of industrial sites in the coalfield region. This assistance has amounted to $2,602,130. We are pleased to report that, for the first time in history, every coalfield county has a developed industrial park for the location of new or expanding industry. Six of our eight localities will have industrial shell buildings available by the end of this year. The authority will aggressively market these facilities for the location of new industry.
General administrative expenses of the authority have never exceeded 2.5 percent of the year-end fund balance. The maximum amount for any one fiscal year has been $253,744. Longaker referred to the authority's annual administrative cost as $375,000 and noted that amounted to $9,400 per job. We do not know where he got these figures; perhaps he is confused with the tuition rates that his college is charging.
The success of the coalfield authority is not only measured by the number of new jobs created but also the wages being paid for these jobs, the new taxes generated and the investments made by the companies, along with indirect jobs created. This is not to imply that we have not had our problems or that the authority is a perfect organization. But by any measuring stick you want to apply, even one as crooked as that used by Longaker, you will find that the accomplishments of the authority and the economic-development team for the coalfield region have been excellent.
James W. Robinson is chairman of the Virginia Coalfield Economic Development Authority in Lebanon.
by CNB