07-20-2021 Finance Committee Meeting Agenda Packet
CALL TO ORDER
ROLL CALL
AGENDA ITEMS TO BE ADDED
APPROVAL OF AGENDA
NEW BUSINESS
a. Tax Options (Staff Contact: Kimberly G. Van Der Hyde)
b. Internal Auditor (Staff Contact: David M. Smitherman)
c. General Employment Conditions (Staff Contact: Kimberly G. Van Der Hyde)
d. Economic Development Grading Obligation (Staff Contact: Kim Van Der Hyde)
MATTERS FROM COMMMITTEE MEMBERS
ADJOURNMENT
FINANCE COMMITTEE
MEETING
Tuesday, July 20, 2021 – 3:30 PM
Elections and Training Center
18 Depot Street,
Chatham, Virginia 24531
AGENDA
1.
2.
3.
4.
5.
6.
7.
Finance Committee
EXECUTIVE SUMMARY
ACTION ITEM
Agenda Title: Tax Options (Staff Contact: Kimberly G. Van Der Hyde)
Staff Contact(s): Kimberly G. Van Der Hyde
Agenda Date: July 20, 2021 Item Number: 5.a
Attachment(s):
Public Hearing-07-20-2021 Transient Occupancy Tax
TransientOccupancyCode
Public Hearing-07-20-2021 PCC 6-21 Meals Tax
mealstax Code Revision
Cigerette Tax
Marijuana Tax
Reviewed By:
SUMMARY:
At its June Meeting, the Finance Committee reviewed several untapped County revenue options.
For the Committee’s review, attached are tax options the Committee/Board was interested in
Staff County researching further. The first two (2) options will be voted on at tonight’s Business
Meeting:
1.) Transient Occupancy Tax (4%);
2.) County Food and Beverage Tax (increasing from 4% to 6%);
3.) Cigarette Tax;
4.) Marijuana Tax; and
5.) Fire Tax.
FINANCIAL IMPACT AND FUNDING SOURCE:
Revenue estimates for some of these options will be presented and discussed at the Finance
Committee Meeting.
RECOMMENDATION:
For the Committee’s consideration.
MOTION:
For the Committee’s consideration.
5.a
Packet Pg. 2
PUBLIC HEARING NOTICE
The Pittsylvania County Board of Supervisors will hold a Public Hearing at 7:00 p.m. on Tuesday,
July 20, 2021, at the Board Meeting Room, 39 Bank Street, Chatham, Virginia 24531, to receive
citizen input on proposed revisions to Pittsylvania County Code (“PCC”), Chapter 6, Finance and
Taxation, to include the creation of a new Article IV, Transient Occupancy Tax, at a proposed rate
of 4 percent (4 %). A complete copy of the proposed revisions is available at the Pittsylvania
County Administrator’s Office, 1 Center Street, Chatham, Virginia 24531, Monday through
Friday, 8:00 a.m. to 5:00 p.m., as well as on the County’s website at
www.pittsylvaniacountyva.gov.
5.a.a
Packet Pg. 3 Attachment: Public Hearing-07-20-2021 Transient Occupancy Tax (2654 : Tax Options (Staff Contact: Kim Van Der Hyde))
PITTSYLVANIA COUNTY CODE
CHAPTER 6 (FINANCE AND TAXATION)
ARTICLE IV. TRANSIENT OCCUPANCY TAX
SEC. 6-38. DEFINITIONS.
In addition to the words/terms defined in § 58.1-3818.8, Code of Virginia, 1950, as amended, as
used in this Article, unless the context clearly indicates otherwise, the following words have the
following meaning:
Commissioner of the Revenue means the Commissioner of the Revenue of Pittsylvania County.
Lodging includes, but is not limited to, any space, spot, or room furnished to any transient.
Occupancy means the use or possession, or the right to the use or possession of any space, spot,
room or rooms or portion thereof, in any hotel, motel, boarding house, or travel campground and
other facilities offering guest rooms rented out for continuous occupancy for fewer than thirty (30)
consecutive days for dwelling, lodging, or sleeping purposes.
Person includes, but is not limited to, any individual, firm, partnership, association, corporation,
person acting in a representative capacity, or any group of individuals acting as a unit.
Rent means the consideration charged, whether or not received, for the occupancy of space or spot
in a hotel, motel, boarding house, or travel campground and other facilities offering guest rooms
rented out for continuous occupancy for fewer than thirty (30) consecutive days valued in money,
whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits
and property and service of any kind or nature, without any deduction therefrom whatsoever.
Room rental means the total charge, exclusive of any tax imposed on such charge, made by any
hotel, motel, boarding house, or travel campground and other facilities offering guest rooms rented
out for continuous occupancy for fewer than thirty (30) consecutive days for lodging furnished to
any transient. If the charge made by the hotel, motel, boarding house or travel campground and
other facilities offering guest rooms rented out for continuous occupancy for fewer than thirty (30)
consecutive days to a transient includes charge for services or accommodations in addition to that
of lodging and/or use of space, then such portion of the total charge representing only lodging
and/or space rental shall be distinctly set out and billed to such transient by such hotel, motel,
boarding house or travel campground and other facilities offering guest rooms rented out for
continuous occupancy for fewer than thirty (30) consecutive days as a separate item.
Transient means any person who exercises occupancy or is entitled to occupancy by reason of
concession, permit, right of access, license, or other agreement for a period of less than thirty (30)
consecutive calendar days, counting portions of calendar days as full days. Any such person so
occupying space in a hotel, motel, boarding house, or travel campground, and other facilities
offering guest rooms rented out for continuous occupancy for fewer than thirty (30) consecutive
5.a.b
Packet Pg. 4 Attachment: TransientOccupancyCode (2654 : Tax Options (Staff Contact: Kim Van Der Hyde))
days shall be deemed to be a transient until the period of twenty-nine (29) days has expired, unless
there is an agreement in writing between the operator and the occupant providing for a longer
period of occupancy, or the occupant has paid in advance for over twenty-nine (29) days
occupancy. In determining whether a person is a transient, uninterrupted periods of time extending
both prior and after the effective date of this Article may be considered.
Travel campground means any area, site, spot, lot, field, or tract of land offering spaces for
recreational vehicles or campsites for transient dwelling purposes, or temporary dwelling during
travel, or recreational or vacation uses.
Treasurer means the Treasurer of Pittsylvania County.
SEC. 6-39. IMPOSED; AMOUNT.
Pursuant to the provisions of Code of Virginia, Title 58.1 (Taxation), Chapter 38 (Miscellaneous
Taxes), 1950, as amended, there is hereby imposed and levied by the County on each transient an
occupancy tax in the amount of four percent (4%) of the charge made for each room or space
rented to such transient. Such tax shall be collected from such transient at the time rooms or spaces
are rented in accordance with this Article. The tax imposed hereby shall apply to all hotels, motels,
boarding houses, and travel campgrounds and other facilities offering guest rooms or spots rented
out for continuous occupancy for fewer than thirty (30) consecutive days, except that the tax
imposed hereunder shall not apply to rooms or spaces rented for continuous occupancy by the
same individual or group for thirty (30) or more days in hotels, motels, boarding houses, or travel
campgrounds, and other facilities offering guest rooms or spots rented out for continuous
occupancy for fewer than thirty (30) consecutive days.
SEC. 6-40. COLLECTION.
Every person, firm, or corporation receiving any payment for occupancy with respect to which a
tax is levied under this Article shall collect the amount of such tax so imposed from the transient
on whom such tax is levied or from the person paying for such occupancy at the time payment for
such occupancy is made. The tax required to be collected under this Section shall be deemed to
be held in trust by the person, firm, or corporation required to collect such taxes as provided in this
Article.
SEC. 6-41. REPORTING; PAYMENT.
The person, firm, or corporation collecting any tax as provided in this Article shall make out a
report thereof on such forms and setting forth such information as the Commissioner of the
Revenue may prescribe and require, showing the amount of occupancy charges collected, and the
taxes required to be collected; and shall sign and deliver such report to the Commissioner of the
Revenue with remittance of the taxes collected on or before the twentieth (20th) day of the month
following the month in which the taxes are collected.
SEC. 6-42. PENALTIES FOR LATE PAYMENT.
5.a.b
Packet Pg. 5 Attachment: TransientOccupancyCode (2654 : Tax Options (Staff Contact: Kim Van Der Hyde))
If any person shall fail or refuse to remit to the Commissioner of the Revenue the tax required to
be collected and paid under this Article within the time and in the amount specified there shall be
added to such tax by the County Treasurer a penalty in the amount of ten percent (10%) thereof
and interest on the principal amount thereon at the rate of ten percent (10%) per annum which shall
be computed upon the taxes and penalty from the first day of the month next following the month
in which such taxes are due and payable.
SEC. 6-43. FAILURE TO COLLECT TAXES OR MAKE REPORTS.
It shall be unlawful for any person, firm, or corporation to fail, or refuse, to collect the taxes
imposed under this Article and to make reports and remittance as required. The Commissioner of
the Revenue shall have the power to examine pertinent records for the purpose of administering or
enforcing the provisions of this Article.
SEC. 6-44. RECORDS REQUIRED.
It shall be the duty of every person, firm, or corporation liable for the collection and payment to
the County of any tax imposed by this Article to keep and preserve for a period of four (4) years
such suitable records as may be necessary to determine the amount of tax due to have been
collected and paid to the County. The Commissioner of the Revenue may inspect such records at
all reasonable times.
SEC. 6-45. PENALTY FOR VIOLATIONS OF ARTICLE.
Any person, firm, or corporation convicted of violating the provisions of this Article shall be
subject to a fine of not more than one hundred dollars ($100.00); and each failure, refusal, neglect,
or violation and each day's continuance thereof, shall constitute a separate offense. This penalty
shall be deemed to be in addition to and not in lieu of the penalties set forth in Section 6-42 of this
Article.
SEC. 6-46. EFFECTIVE DATE OF ARTICLE.
The effective date of this Article shall be September 1, 2021.
5.a.b
Packet Pg. 6 Attachment: TransientOccupancyCode (2654 : Tax Options (Staff Contact: Kim Van Der Hyde))
PUBLIC HEARING NOTICE
The Pittsylvania County Board of Supervisors will hold a Public Hearing at 7:00 p.m. on Tuesday,
July 20, 2021, at the Board Meeting Room, 39 Bank Street, Chatham, Virginia 24531, to receive
citizen input on proposed revisions to Pittsylvania County Code § 6-21; Meals Tax; to increase the
County meals tax from four percent (4%) to six percent (6%). A complete copy of the proposed
revisions is available at the Pittsylvania County Administrator’s Office, 1 Center Street, Chatham,
Virginia 24531, Monday through Friday, 8:00 a.m. to 5:00 p.m., as well as on the County’s website
at www.pittsylvaniacountyva.gov.
5.a.c
Packet Pg. 7 Attachment: Public Hearing-07-20-2021 PCC 6-21 Meals Tax (2654 : Tax Options (Staff Contact: Kim Van Der Hyde))
PITTSYLVANIA COUNTY CODE
SEC. 6-21. LEVY OF TAX; AMOUNT.
In addition to all other taxes and fees of any kind now or hereafter imposed by law, there is hereby
levied and imposed by the County on each purchaser a tax on the amount paid for food and
beverages purchased from any food establishment, whether prepared in such food establishment
or not, and whether consumed on the premises or not. The rate of this tax shall be sixfour (64)
percent of the amount paid for such food and beverages, which amount paid for such food and
beverages shall not be deemed to include the sales tax paid thereon when computing the tax hereby
imposed. In the computation of this tax, any fraction of one-half cent or more shall be treated as
one cent ($0.01).
5.a.d
Packet Pg. 8 Attachment: mealstax Code Revision (2654 : Tax Options (Staff Contact: Kim Van Der Hyde))
5.a.e
Packet Pg. 9 Attachment: Cigerette Tax (2654 : Tax Options (Staff Contact: Kim Van Der Hyde))
5.a.e
Packet Pg. 10 Attachment: Cigerette Tax (2654 : Tax Options (Staff Contact: Kim Van Der Hyde))
5.a.e
Packet Pg. 11 Attachment: Cigerette Tax (2654 : Tax Options (Staff Contact: Kim Van Der Hyde))
Virginia Becomes First Southern State
and 16th in the U.S. To Legalize Adult
Recreational Cannabis
On April 7, 2021, a majority of both houses of the Virginia legislature voted to legalize adult
recreational use of cannabis. The approval made Virginia the 16th U.S. state – and the third
state this year – to legalize adult recreational use of cannabis. Under the new law, home
cultivation and personal possession of cannabis will become legal July 1, 2021, but retail sales
will not begin until January 1, 2024.
Virginia Senate Bill 1406/House Bill 2312 legalizes the retail sale of cannabis products to adults
over the age of 21 and establishes the Virginia Cannabis Control Authority to oversee the
cultivation, manufacture, wholesale, and retail sale of cannabis and cannabis products. The bill
also permits private cultivation of up to four cannabis plants for personal use and enables
individuals to petition for suspended or modified sentences for past marijuana convictions or
for sealing of past marijuana conviction records. Possession of more than a pound of cannabis
in a public place, unless permitted by license, remains a felony, while public possession of an
amount between an ounce and a pound will be subject to a fine of $25.
Retail cannabis sales will be taxed at 21% statewide, and localities will be able to impose an
additional sales tax of up to 3% on top of preexisting state sales tax rates. Proceeds of the
cannabis tax will be put towards pre-K programs for at-risk youth, substance abuse programs,
and a newly established Cannabis Equity Reinvestment Fund (the “Fund”), among other uses.
The Fund shall be used to support persons, families, and communities historically and
disproportionately targeted and affected by drug enforcement, through scholarships and
vocational resources, grants and business loans supporting workforce development and job
training, and contribution to the Virginia Indigent Defense Commission.
Regulatory specifics will be determined by the Board of Directors of the Virginia Cannabis
Control Authority, contingent on approval by the Cannabis Oversight Commission. The
Virginia Cannabis Control Authority will begin accepting applications for licensure under the
statute on July 1, 2023, and retail sales, as noted above, will first be permitted on January 1,
2024. Any city, town, or county within Virginia may, by referendum, prohibit the retail sale of
cannabis within its jurisdiction, but no local body may prohibit possession or personal
cultivation and use of cannabis.
The legislative process that ended with an affirmative vote for legalization this month began in
November 2020 when Governor Northam (D) announced that he would introduce and support
legislation aimed at legalizing adult-use cannabis. Not coincidentally, Governor Northam’s
announcement came the same day that the Virginia Marijuana Legalization Work Group
released a legislative report estimating that Virginia’s potential tax revenues from the
commercial sale of cannabis would be between $154 million and $308 million.
5.a.f
Packet Pg. 12 Attachment: Marijuana Tax (2654 : Tax Options (Staff Contact: Kim Van Der Hyde))
Both the Senate and House of Delegates originated bills to legalize recreational cannabis, with
House Bill 2312 and Senate Bill 1406 both passing in their originating chambers on February
5, 2021 and receiving approval by the opposite chamber on February 16. Following approval,
the two bills headed into concurrence, and a reconciled version of S.B. 1406 was passed by both
chambers on February 27, 2021, just before the end of the State Legislature’s 2021 Special
Session.
Prior to signing the bill, Governor Ralph Northam added amendments that accelerated the
effective date of legalization for home cultivation, and personal possession from January 1,
2024 to July 1, 2021. Governor Northam’s amendments also provided protections for cannabis
company employees who wish to unionize and accelerated the timeline for the sealing of records
and expungement of cannabis-related criminal offenses. The bill, with Northam’s amendments,
went back to both chambers and was approved on April 7, 2021, with Lt. Gov. Justin Fairfax
(D) breaking a 20-20 tie along partisan lines in Virginia’s Senate to pass the bill.
5.a.f
Packet Pg. 13 Attachment: Marijuana Tax (2654 : Tax Options (Staff Contact: Kim Van Der Hyde))
5.a.f
Packet Pg. 14 Attachment: Marijuana Tax (2654 : Tax Options (Staff Contact: Kim Van Der Hyde))
5.a.f
Packet Pg. 15 Attachment: Marijuana Tax (2654 : Tax Options (Staff Contact: Kim Van Der Hyde))
5.a.f
Packet Pg. 16 Attachment: Marijuana Tax (2654 : Tax Options (Staff Contact: Kim Van Der Hyde))
5.a.f
Packet Pg. 17 Attachment: Marijuana Tax (2654 : Tax Options (Staff Contact: Kim Van Der Hyde))
Finance Committee
EXECUTIVE SUMMARY
ACTION ITEM
Agenda Title: Internal Auditor (Staff Contact: David M. Smitherman)
Staff Contact(s): David M. Smitherman
Agenda Date: July 20, 2021 Item Number: 5.b
Attachment(s):
Reviewed By:
SUMMARY:
Since the June 15, 2021, the Finance Committee has been informed about the possible
employment of an internal County auditor. Monies exist in the FY22 County Contingency
Budget to cover the cost of the Jail Medical Billing Compliance Analyst. Chairman Warren and
Sheriff Taylor have had discussions about the use of this employee to not only continue the work
with the Jail, but to also serve as an internal County auditor. This auditor could assure, in all
areas, that the County’s financial operations are accurate, efficient, and transparent.
FINANCIAL IMPACT AND FUNDING SOURCE:
A total of $56,875 is currently in the FY22 County Contingency Budget for the Jail Medical
Billing Compliance Analyst that could be used for the internal County auditor.
RECOMMENDATION:
For the Finance Committee’s consideration.
MOTION:
For the Finance Committee’s consideration.
5.b
Packet Pg. 18
Finance Committee
EXECUTIVE SUMMARY
ACTION ITEM
Agenda Title: General Employment Conditions (Staff Contact: Kimberly G. Van Der
Hyde)
Staff Contact(s): Kimberly G. Van Der Hyde
Agenda Date: July 20, 2021 Item Number: 5.c
Attachment(s):
Minimum Wage Law
Virginia Overtime Wage Law Act
DOLIVOWA analysis
Reviewed By:
SUMMARY:
Recent developments concerning general employment conditions will greatly impact the FY22
County Budget, as well as future annual County Budgets. For the Board’s review, related
documentation is attached. Employment conditions to be discussed include:
1.) Hiring/Recruitment Incentive Program;
2.) Update on the General Assembly changes to the Minimum Wage Rate;
and
3.) Virginia Overtime Wage Law Change (Effective July 1, 2021).
FINANCIAL IMPACT AND FUNDING SOURCE:
To be discussed.
RECOMMENDATION:
Not applicable.
MOTION:
Not applicable.
5.c
Packet Pg. 19
Code of Virginia
Title 40.1. Labor and Employment
Chapter 3. Protection of Employees
Article 1.1. Virginia Minimum Wage Act
§ 40.1-28.10. Minimum wages
A. 1. Prior to May 1, 2021, every employer shall pay to each of its employees wages at a rate not
less than the federal minimum wage.
2. Beginning May 1, 2021, every employer shall pay to each of his employees at a rate not less
than the federal minimum wage or 75 percent of the Virginia minimum wage provided for in this
section, whichever is greater. For the purposes of this subdivision "employee" means any person
or individual who is enrolled in an established employer on-the-job or other training program for
a period not to exceed 90 days which meets standards set by regulations adopted by the
Commissioner.
B. From May 1, 2021, until January 1, 2022, every employer shall pay to each of its employees
wages at a rate not less than the greater of (i) $9.50 per hour or (ii) the federal minimum wage.
C. From January 1, 2022, until January 1, 2023, every employer shall pay to each of its employees
wages at a rate not less than the greater of (i) $11.00 per hour or (ii) the federal minimum wage.
D. From January 1, 2023, until January 1, 2025, every employer shall pay to each of its employees
wages at a rate not less than the greater of (i) $12.00 per hour or (ii) the federal minimum wage.
E. (For effective date, see Acts 2020, cc. 1204 and 1242) From January 1, 2025, until January 1,
2026, every employer shall pay to each of its employees wages at a rate not less than the greater
of (i) $13.50 per hour or (ii) the federal minimum wage.
F. (For effective date, see Acts 2020, cc. 1204 and 1242) From January 1, 2026, until January 1,
2027, every employer shall pay to each of its employees wages at a rate not less than the greater
of (i) $15.00 per hour or (ii) the federal minimum wage.
G. From and after January 1, 2027, every employer shall pay to each of his employees wages at a
rate not less than the greater of (i) the adjusted state hourly minimum wage or (ii) the federal
minimum wage.
H. By October 1, 2026, and annually thereafter, the Commissioner shall establish the adjusted
state hourly minimum wage that shall be in effect during the 12-month period commencing on
the following January 1. The Commissioner shall set the adjusted state hourly minimum wage at
the sum of (i) the amount of the state hourly minimum wage rate that is in effect on the date
such adjustment is made and (ii) a percentage of the amount described in clause (i) that is equal
to the percentage by which the United States Average Consumer Price Index for all items, all
urban consumers (CPI-U), as published by the Bureau of Labor Statistics of the U.S. Department
of Labor, or a successor index as calculated by the U.S. Department of Labor, has increased during
the most recent calendar year for which such information is available. The amount of each
annual adjustment shall not be less than zero.
1975, c. 530; 1976, c. 736; 1978, c. 371; 1980, c. 532; 1991, cc. 547, 596; 1997, c. 544;2020, cc.
1204, 1242.
1 7/15/2021 12:00:00 AM
5.c.a
Packet Pg. 20 Attachment: Minimum Wage Law (2656 : General Employment Conditions (Staff Contact: Kim Van Der Hyde))
The chapters of the acts of assembly referenced in the historical citation at the end of this
section(s) may not constitute a comprehensive list of such chapters and may exclude chapters
whose provisions have expired.
2 7/15/2021 12:00:00 AM
5.c.a
Packet Pg. 21 Attachment: Minimum Wage Law (2656 : General Employment Conditions (Staff Contact: Kim Van Der Hyde))
Code of Virginia
Title 40.1. Labor and Employment
Chapter 3. Protection of Employees
Article 2. Pay; Assignment of Wages; Sale of Merchandise to Employees
§ 40.1-29.2. Virginia Overtime Wage Act
A. As used in this section:
"Employ" includes to permit or suffer to work.
"Employee" means any individual employed by an employer, including employees of derivative
carriers within the meaning of the federal Railway Labor Act, 45 U.S.C. § 151 et seq. "Employee"
does not include the following: (i) any individual who volunteers solely for humanitarian,
religious, or community service purposes for a public body, church, or nonprofit organization
that does not otherwise employ such individual, (ii) any person who is exempt from the federal
overtime wage pursuant to 29 U.S.C. § 213(a), and (iii) any person who meets the exemptions set
forth in 29 U.S.C. § 213(b)(1) or 213(b)(11).
"Employer" means any person acting directly or indirectly in the interest of an employer in
relation to an employee. "Employer" does not include any labor organization, other than when
acting as an employer; anyone acting in the capacity of officer or agent of such labor
organization; or any carrier subject to the federal Railway Labor Act, 45 U.S.C. §§ 151 through
188, except derivative carriers within the meaning of the federal Railway Labor Act.
"Person" means an individual, partnership, association, corporation, business trust, legal
representative, any organized group of persons, or the Commonwealth, any of its constitutional
officers, agencies, institutions, or political subdivisions, or any public body. This definition
constitutes a waiver of sovereign immunity by the Commonwealth.
"Wages" means the same as that term is defined in § 40.1-28.9.
"Workweek" means a fixed and regularly occurring period of 168 hours or seven consecutive 24-
hour periods. It need not coincide with the calendar week and may begin on any day and at any
hour. The beginning of the workweek may be changed if the change is intended to be permanent
and is not designed to evade the overtime requirements of this section.
B. For any hours worked by an employee in excess of 40 hours in any one workweek, an employer
shall pay such employee an overtime premium at a rate not less than one and one-half times the
employee's regular rate, pursuant to 29 U.S.C. § 207. An employee's regular rate shall be
calculated as follows:
1. For employees paid on an hourly basis, the regular rate is the hourly rate of pay plus any other
non-overtime wages paid or allocated for that workweek, excluding any amounts that are
excluded from the regular rate by the federal Fair Labor Standards Act, 29 U.S.C. § 201 et seq.,
and its implementing regulations, divided by the total number of hours worked in that workweek.
2. For employees paid on a salary or other regular basis, the regular rate is one-fortieth of all
wages paid for that workweek.
C. For fire protection or law-enforcement employees of any public sector employer for whom 29
1 7/15/2021 12:00:00 AM
5.c.b
Packet Pg. 22 Attachment: Virginia Overtime Wage Law Act (2656 : General Employment Conditions (Staff Contact: Kim Van Der Hyde))
U.S.C. § 207(k) applies, such employer shall pay an overtime premium as set forth in this section
for (i) all hours worked in excess of the threshold set forth in 20 U.S.C. § 207(k) and (ii) any
additional hours such employee worked or received as paid leave as set forth in subsection A of §
9.1-701.
D. An employer may assert an exemption to the overtime requirement of this section for
employees who meet the exemptions set forth in 29 U.S.C. § 213(a)(1) or for employees who meet
the exemptions set forth in 29 U.S.C. §§ 213(b)(1) or 213(b)(11).
E. No agency, institution, political subdivision, or public body that complies with the
requirements of 29 U.S.C. § 207(k) and § 9.1-701 shall be deemed to have violated subsection B
with respect to fire suppression or law-enforcement employees covered by such statutes.
F. Any employer that violates the overtime wage requirements of this section shall be liable to
the employee for all remedies, damages, or other relief available in an action brought under
subsection J of § 40.1-29.
G. Any action pursuant to this section shall be commenced within three years after the cause of
action accrues.
2021, Sp. Sess. I, c. 445.
The chapters of the acts of assembly referenced in the historical citation at the end of this
section(s) may not constitute a comprehensive list of such chapters and may exclude chapters
whose provisions have expired.
2 7/15/2021 12:00:00 AM
5.c.b
Packet Pg. 23 Attachment: Virginia Overtime Wage Law Act (2656 : General Employment Conditions (Staff Contact: Kim Van Der Hyde))
1
Kim Van Der Hyde
From:Holly E. Stanfield
Sent:Wednesday, July 14, 2021 7:50 AM
To:Kim Van Der Hyde
Cc:Pittsylvania County Executive Team
Subject:FW: DOLI/VOWA analysis
Kim,
Here is a follow-up communication from Victor in regard to our call on Monday. I recommend we follow his advice and
stop paying comp time for all employees until we get clarity (hopefully) by end of year as Victor relates in his message.
We need to get a communication out soon once we are all on the same page about this issue, as well as the holiday
matter.
Thank you,
Holly
Holly E. Stanfield
Human Resources Manager
County Administration
Tel. (434) 432-1976 | Fax. (434) 432-7714
1 Center Street P.O. Box 426
Chatham, VA 24531
Holly.Stanfield@pittgov.org
www.pittsylvaniacountyva.gov
Any e-mail or other correspondence sent to a member of the Board of Supervisors, or any other public official
or employee of Pittsylvania County, Virginia (the "County"), in the transaction of public business, is considered a
public record. Public records are subject to the Virginia Freedom of Information Act ("VA FOIA"). Virginia law
requires the County to provide a copy of any such e-mail, upon request, for inspection and copying to any
citizen of the Commonwealth, or to any member of the news media, unless lawfully exempted from
production/disclosure under VA FOIA. If you have received this email or any attachments in error, please notify
5.c.c
Packet Pg. 24 Attachment: DOLIVOWA analysis (2656 : General Employment Conditions (Staff Contact: Kim Van Der Hyde))
2
the sender immediately at (434) 432-7700, and by reply email, and delete this email and any attachments to it
from your inbox, sent items, and deleted items. Thank you.
From:Cardwell, Victor <cardwell@woodsrogers.com>
Sent:Tuesday, July 13, 2021 5:36 PM
To:Holly E. Stanfield <Holly.Stanfield@pittgov.org>
Cc:Stiegler, Leah <lstiegler@woodsrogers.com>; Cardwell, Monica <mcardwell@woodsrogers.com>
Subject:DOLI/VOWA analysis
CAUTION: This email originated from outside of the organization. Do not click links or open attachments
unless you recognize the sender and know the content is safe.
Holly,
A deep dive into VOWA! The key, it appears that there are a number of places where DOLI has
acted too quickly but I would follow our conservative advice. The bottom line, it looks like Fire
and Police can still use comp time if there are more than 100 sworn in the departments.
This overview is generalized but it can assist in how we approach the issues we discussed
recently.
The Virginia Wage Overtime Act (“VOWA”) (VA Code § 40.1-29.2) has drawn a lot of
debate recently in terms of how it impacts public employers who have historically used
compensatory time (“comp time”) in lieu of wages at time and one-half. Most recently,
Virginia’s Department of Labor and Industry (“DOLI”) published FAQs stating, “Employers
cannot provide comp time instead of pay.” That is the basis for our conversation and where I
think you need to end up.
DOLI based its interpretation on the fact that VOWA defines “wages” as “legal tender of
the United States or checks or drafts on banks,” and therefore comp time is not within the
definition.
Due to the ongoing debate surrounding DOLI’s interpretation, it is likely we will see
clarity from the General Assembly or a change in position on DOLI’s end by years’ end.
However, for the time being, DOLI’s take is that localities cannot use comp time (with the
5.c.c
Packet Pg. 25 Attachment: DOLIVOWA analysis (2656 : General Employment Conditions (Staff Contact: Kim Van Der Hyde))
3
exception of fire protection employees and law enforcement employees working in
departments of 100 or more law-enforcement employees), and employers can face
enforcement efforts from DOLI or current and former employees.Employers can be liable for
up to 3 years after a violation and for overtime wages owed, plus an additional equal amount as
liquidated damages, prejudgment interest, and reasonable attorney fees and costs. If an
employer knowingly failed to properly pay an employee, the court is directed to (the court
“shall”)award the employee an amount equal to triple the amount of wages due and reasonable
attorney fees and costs.Because attorney’s fees are available for a successful case, many
plaintiff’s attorneys are interested in pursuing these cases on behalf of employees as they can
recover their fees from the employer—not their client/the employee.
Ultimately, you don’t want to be the “test case” for whether or not DOLI’s interpretation
is accurate. We therefore recommend you put a “stay” on any policies allowing comp time in
lieu of wages at time and one-half until we have clarity from DOLI reversing its enforcement
position or clarity from the General Assembly as to the intent and scope of VOWA. Since this
will likely increase public employer payroll expenses, it is recommended you review and/or
implement policies to manage overtime hours worked.
This is a communication that we are going to convert to an ealert. But this summary is one that I
wanted to share with you.
Let me know when you might want to talk again.
VOC
Victor O. Cardwell
Woods Rogers PLC
10 S. Jefferson Street, Suite 1800 | Roanoke, VA 24011
P (540) 983-7529 | F Main (540) 983-7711 Direct (540) 322-3812
cardwell@woodsrogers.com
A member of Interlaw, an International Association of Independent Law Firms
NOTICE: This communication from Woods Rogers PLC, including attachments, if any, is intended as a confidential and privileged communication. If received in
error, you should not copy, save or reproduce in any manner or form, but delete immediately and notify the sender.
P Please consider the environment before printing this email
From:Holly E. Stanfield <Holly.Stanfield@pittgov.org>
Sent:Monday, July 12, 2021 2:55 PM
To:Cardwell, Victor
Cc:Kim Van Der Hyde; Kathy Yeatts
Subject:Question 11
**EXTERNAL EMAIL**
Victor,
Again, thank you for squeezing time in today for us. We appreciate it!
5.c.c
Packet Pg. 26 Attachment: DOLIVOWA analysis (2656 : General Employment Conditions (Staff Contact: Kim Van Der Hyde))
4
This is a reminder to review DOLI question 11. Can employees be given “comp time” instead of overtime pay? Note:
Under certain circumstances, fire protection and law enforcement employees may be compensated with leave for
overtime hours instead of wages pursuant to Va. Code 9.1-701.
Take care and talk soon,
Holly
Holly E. Stanfield
Human Resources Manager
County Administration
Tel. (434) 432-1976 | Fax. (434) 432-7714
1 Center Street P.O. Box 426
Chatham, VA 24531
Holly.Stanfield@pittgov.org
www.pittsylvaniacountyva.gov
Any e-mail or other correspondence sent to a member of the Board of Supervisors, or any other public official
or employee of Pittsylvania County, Virginia (the "County"), in the transaction of public business, is considered a
public record. Public records are subject to the Virginia Freedom of Information Act ("VA FOIA"). Virginia law
requires the County to provide a copy of any such e-mail, upon request, for inspection and copying to any
citizen of the Commonwealth, or to any member of the news media, unless lawfully exempted from
production/disclosure under VA FOIA. If you have received this email or any attachments in error, please notify
the sender immediately at (434) 432-7700, and by reply email, and delete this email and any attachments to it
from your inbox, sent items, and deleted items. Thank you.
5.c.c
Packet Pg. 27 Attachment: DOLIVOWA analysis (2656 : General Employment Conditions (Staff Contact: Kim Van Der Hyde))
Finance Committee
EXECUTIVE SUMMARY
ACTION ITEM
Agenda Title: Economic Development Grading Obligation (Staff Contact: Kim Van Der
Hyde)
Staff Contact(s): Kimberly G. Van Der Hyde
Agenda Date: July 20, 2021 Item Number: 5.d
Attachment(s):
2020.08.17. Amendment 30 Lots 1 and 2 grading plan
Lot 1-2 65 Acre Pad Cost Estimate
3659 - Restricted Grant_Agreement.12222020
Email
Reviewed By:
SUMMARY:
The following Economic Development Grading Obligations need be funded in the FY2022
County Budget: (1) Southern Virginia Mega Site at Berry Hill Lot 1; and (2) Southern Virginia
Multimodal Park Lot 2. The County's share of the local match for these two (2) Projects totals
up to $2,802,398.
FINANCIAL IMPACT AND FUNDING SOURCE:
Both Projects are being funded with Tobacco Commission Grants that will most likely be
completed in FY2022 and a require a large local match that does not currently exist in the
FY2022 County Budget. For the Committee’s review and consideration, attached are documents
that discuss the Project costs and an e-mail from Matthew D. Rowe, Economic Development
Director, discussing the Project timelines. Since this information was sent back at the end of
January, I have asked Rowe for an update on the timeline that will be discussed at the Finance
Committee Meeting.
RECOMMENDATION:
For the Finance Committee’s consideration.
MOTION:
For the Finance Committee’s consideration.
5.d
Packet Pg. 28
Page 1 of 4
August 17, 2020
Mr. Robert W. Warren
Chairman
Danville-Pittsylvania Regional Industrial Facility Authority (RIFA)
P.O. Box 3300
Danville, Virginia 24543
RE: Amendment #30 for Engineering Services Related to the Mega Park Master Plan
Lots 1 and 2 Grading and Construction Administration Services
Dear Mr. Warren:
Dewberry Engineers Inc. (Dewberry) has been assisting the Danville-Pittsylvania Regional Industrial
Facility Authority (RIFA) with development of the Southern Virginia (SoVA) Megasite at Berry Hill. RIFA
would like to repurpose Virginia Tobacco Commission Grant 3358 ($2,624,800 with $2,624,800 local
match) to create a graded pad on lots 1 and 2.
SCOPE OF SERVICES
Dewberry proposes to provide the following scope of services:
Item 1 – Lots 1 and 2 Pad Grading Construction Plans and Specifications
Dewberry will prepare detailed construction documents for the grading of ±65 pad acres as shown on the
selected layout referenced above and attached to this proposal. The plans will use existing aerial survey
and current wetland delineation, previously prepared, as the base map for the project. In addition,
Dewberry will use the existing geotechnical survey to determine maximum cut/fill depth to minimize rock
excavation where possible. Plans will include:
• Cover Sheet
• General Notes and Erosion and Sediment Control Notes
• Existing Condition and Demolition Plan
• Phase 1 Overall Erosion and Sediment Control Plan
• Phase 1 Detailed Erosion and Sediment Control Plan (5 Sheets)
• Phase 2 Overall Erosion and Sediment Control Plan
• Phase 2 Detailed Erosion and Sediment Control Plan (5 Sheets)
• Overall Grading Plan
• Detailed Grading Plan (5 sheets)
• Overall Stormwater Management Plan
5.d.a
Packet Pg. 29 Attachment: 2020.08.17. Amendment 30 Lots 1 and 2 grading plan (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van
Mr. Robert W. Warren
August 17, 2020
Page 2 of 4
• Detailed Stormwater Management Plan (4 Ponds)
• Standard Details Sheets (4 Sheets)
• Erosion and Sediment Control (4 Sheets)
Project specifications will include all upfront bidding documents and technical specifications. The
stormwater management program will be designed to meet the new 2014 Virginia Department of
Environmental Quality General Permit for discharges from construction sites. Stormwater quantity
calculations and pond sizes will be based on the impervious areas shown on attached layout.
Stormwater quality calculations will be based on the graded pad area flowing to each stormwater quality
measure.
FEE: $165,000.00 Lump Sum
Item 2 – Construction Administration Services
Dewberry will provide Construction Administration Services (CONA) for the Development of Lots 1 and 2
in the SoVA Megasite. This scope item will consist of the following:
• Bidding Assistance – Dewberry will provide bidding assistance consisting of the following:
o Prepare prequalification package.
o Prepare bidding advertisement for the Client to place in appropriate publications.
o Supply two (2) plan rooms with plans and specifications.
o Supply thirty (30) sets of plans and specifications for prospective bidders.
o Conduct a pre-bid/pre-qualification conference for interested contractors and suppliers.
o Respond to bidder’s questions during the bidding process.
o Conduct one (1) public bid-opening meeting.
o Review and tabulate submitted bids.
o Review all required bonding, license, and insurance requirements.
o Make award recommendation to Client.
• Contract Negotiation – Dewberry will assist the Client in negotiating a contract with the selected
bidder.
• Construction Administration Services – Dewberry will provide construction administration (CONA)
services that will include the following:
o Review Contractor agreement, bonds, insurance, etc.
o Attend one (1) pre-construction meeting.
o Prepare and distribute meeting minutes from all construction meetings (assumes 8
meetings).
o Monthly progress meetings with contractor until completion (assumes 8 meetings over a 8
month construction time).
o Review shop drawings.
o Review monthly pay requests.
5.d.a
Packet Pg. 30 Attachment: 2020.08.17. Amendment 30 Lots 1 and 2 grading plan (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van
Mr. Robert W. Warren
August 17, 2020
Page 3 of 4
o Review and respond to Contractor Requests for Information (RFI’s).
o Attend substantial and final completion inspection (2 meetings).
o Prepare project closeout documentation.
FEE: $75,000.00 Lump Sum
Item 3 – Construction Testing and Inspection Services
Dewberry will subcontract with Froehling & Robertson, Inc. (F&R) for Construction Testing and Inspection
Services. These services will include testing and inspections of earthwork for the Pad Graded Sites and
Storm Water Management Installation. F&R will be onsite as needed to perform required testing and
inspections in general accordance with the project documents. F&R will collect and test bulk soil samples
and aggregate base material samples for the determination of soil compaction properties. It is anticipated
that full time testing, and inspection services will be needed for six (6) months of the total eight (8) month
construction time period.
FEE: $50,000.00 Lump Sum
FEE SUMMARY
Below is a summary of fees for the respective services listed above:
1. Item 1 – Lots 1 and 2 Pad Grading Construction Plans and Specifications
FEE: $165,000.00 Lump Sum
2. Item 2 – Construction Administration Services
FEE: $75,000.00 Lump Sum
3. Item 3 – Construction Testing and Inspection Services
FEE: $50,000.00 Lump Sum
TOTAL PROJECT COST: $290,000.00 Lump Sum
Except as amended in this proposal, all other terms, provisions, and conditions of our current Agreement
for Professional Services to develop the Berry Hill property, dated February 9, 2009 shall remain in full
force and effect, and the parties ratify and confirm that the Agreement for Professional Services to
develop the Berry Hill property, dated February 9, 2009, as amended by this proposal, is and remains in
full force and effect.
5.d.a
Packet Pg. 31 Attachment: 2020.08.17. Amendment 30 Lots 1 and 2 grading plan (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van
Mr. Robert W. Warren
August 17, 2020
Page 4 of 4
Again, we appreciate the opportunity to submit this contract amendment and look forward to continuing to
work with you on this project. Please do not hesitate to call if you have questions or wish to discuss the
proposal or project further. The return of an executed copy of this proposal will serve as our authorization
to proceed.
Sincerely,
Shawn R. Harden, PE
Senior Associate
Brian K. Bradner, PE
Vice President | Branch Manager
Attachment: Conceptual Site Plan Titled “2020.06.16 BHIP Lot 1-2 65 Acre Pad”
P:\50018376\Adm\Contract\2020.08.17. Amendment 30 Lots 1 and 2 grading plan.docx
The foregoing Contract Amendment of Dewberry Engineers Inc. is accepted:
Print (Type) Individual, Firm, or Corporate Name
Signature of Authorized Representative Date
Print (Type) Name of Authorized Representative and Title
5.d.a
Packet Pg. 32 Attachment: 2020.08.17. Amendment 30 Lots 1 and 2 grading plan (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van
POW J
PFO JC
PEM F
PEM F
WOUS G (R4)
PFO GA
PFO F
PEM FA
PEM HB
PEM G
WOUS AK (R4)
WOUS G (R4)
PFO GZ
PFO AF
PFO F1
PEM AF
PEM HA
Hydrology Conveyed
Under Dirt Road
Hydrology Conveyed
Under Dirt Road
PFO H
LAT:36°34'17.8016"LON:79°34'24.1095"
LAT:36°34'15.9704"LON:79°34'23.4364"LAT:36°34'15.9925"LON:79°34'20.3069"
LAT:36°34'19.0548"LON:79°34'14.2527"
LAT:36°34'20.9221"LON:79°34'06.2042"
LAT:36°34'25.1498"LON:79°34'01.2474"
LAT:36°34'22.3170"LON:79°34'24.8807"
LAT:36°34'26.9520"LON:79°34'18.4445"
LAT:36°34'28.0365"LON:79°34'17.6509"
LAT:36°34'31.1562"LON:79°34'15.7605"
LAT:36°34'31.6953"LON:79°34'17.1116"
LAT:36°34'36.6803"LON:79°33'58.6483"
LAT:36°34'35.3007"LON:79°34'02.3729"
LAT:36°34'35.8548"LON:79°34'07.7982"
Hydrology conveyed by overlandwash
0 75 150
GRAPHIC SCALE
150 300
1"=150'
STORMWATER
MANAGEMENT POND
STORMWATER
MANAGEMENT POND
STORMWATER
MANAGEMENT POND
321
C
B
A
SHEET NO.
KEY PLAN
SEAL
SCALE
4
D
E
5
APPROVED BY
CHECKED BY
REVISIONS
TITLE
DRAWN BY
DATE
PROJECT NO.
Dewberry Engineers Inc.
551 Piney Forest Road
Danville ,VA 24540
Phone: 434.797.4497
Fax: 434.797.4341
6/16/2020 12:17:02 PMDanville VirginiaBerry Hill RoadLots 1 & 2 65 Acre PadBerry Hill Industrial Park5.d.a
Packet Pg. 33 Attachment: 2020.08.17. Amendment 30 Lots 1 and 2 grading plan (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der Hyde))
Est.Unit Extended
Description Unit Qty Price Total
Mobilization LS 1 $40,000 $40,000
Survey/Stakeout LS 1 $30,000 $30,000
Clearing & Grubbing AC 88.00 $2,500 $220,000
Gravel Construction Entrance EA 1 $1,500 $1,500
Silt Fence (SF)LF 4,000 $1.55 $6,200
Diversions (DV)LF 5,500 $1.00 $5,500
Temporary Sediment Basin (TSB)EA 3 $60,000.00 $180,000
Outlet Protection (OP)EA 3 $750.00 $2,250
Green area seeding, mulching, sod, top soils etc.AC 88.00 $1,300.00 $114,400
Topsoil - Cut, Stockpile & Respread CY 71,333 $4.00 $285,332
Earthwork - Compact Fill CY 482,199 $2.50 $1,205,498
Earthwork - Cut CY 411,774 $2.50 $1,029,435
New Pond LS 3 $100,000.00 $300,000
Gravel Roadway Ton 115.00 $45.00 $5,175
Roadway Striping LF 128 $0.35 $45
Erosion and Sediment Control LS 1 $10,000 $10,000
Sub - Total Cost $3,425,290
Contingency 20%$685,057.90
Permitting, Design, and Construction Admin 10%$342,528.95Total Construction Cost $4,452,876
Lot 1 & 2 - 65 Acre Pad
Pad & Roadway Construction
Construction Cost AnalysisProject ___________
Berry Hill Lot 1 & 2 - 65 Acre Pad
15-Jun-20
P:\50018376\CAD\Civil\2020.06.08 65 Acre Pad\Lot 1-2 65 Acre Pad Cost EstimateCost Estimate 6/16/2020 12:36 PM
Page 1 of 1
5.d.b
Packet Pg. 34 Attachment: Lot 1-2 65 Acre Pad Cost Estimate (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der Hyde))
Tobacco Region Revitalization Commission Page - 1 - Rev. 12/2020
GRANT AGREEMENT – RESTRICTED FUNDS – UNRELATED PARTY
This Grant Agreement (this “Agreement”) made and entered into on the 28th day of
September, 2020 (the “Award Date”), by and between the Tobacco Region Revitalization
Commission, a body corporate and political subdivision of the Commonwealth of Virginia (the
“Commission”), and Pittsylvania County, Virginia (the “Grantee”).
WITNESSETH:
WHEREAS, the Virginia General Assembly created the Commission to, among other
things, stimulate the economic growth and development of tobacco dependent communities in the
Southern and Southwest regions (the “Region”) of the Commonwealth of Virginia (the
“Commonwealth”), and
WHEREAS, the Grantee submitted an application, to the Commission for funding (the
“Application”) to undertake the Project (as defined herein) entitled SVMP Site Grading and
Improvements - Lot 2, and
WHEREAS, the Commission has determined that the Project benefits the Region and is
consistent with and in furtherance of the Commission’s public purposes, and
WHEREAS, the Commission approved a grant to the Grantee in the amount of
$1,262,201.00 (the “Grant”) to fund the Project, the approval and funding of such Grant the
Commission has determined constitutes a valid public purpose for the expenditure of public funds
and is the animating purpose for the Grant, and
WHEREAS, the parties desire to set forth their understanding and agreement as to the use
of the Grant and the parties’ respective rights and obligations.
NOW, THEREFORE, in consideration of the foregoing, the mutual benefits, promises
and undertakings of the parties to this Agreement, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby represent,
warrant, covenant and agree as follows:
1. Definitions. In addition to terms defined in the Recitals and the body of this Agreement,
the following capitalized terms used in this Agreement have the meanings set forth below:
“Capital Expenditure” means any cost of a type that is properly chargeable to capital
account (or would be so chargeable with (or but for) a proper election or the application of the
definition of “placed in service” under Treas. Regs. §1.150-2(c)) under general federal income tax
principles, determined at the time the expenditure is paid.
“Commission-Related Party” means a Person that is a Related Party to the Commission,
the Issuer or the Commonwealth.
Grant # 3659
5.d.c
Packet Pg. 35 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 2 - Rev. 12/2020
“Controlled Group” means a group of entities controlled directly or indirectly by the same
entity or group of entities within the meaning of this definition.
(i) The determination of direct control is made on the basis of all the relevant
facts and circumstances. One entity or group of entities (the controlling entity) generally
controls another entity or group of entities (the controlled entity) for purposes of this
definition if the controlling entity possesses either of the following rights or powers and
the rights or powers are discretionary and non-ministerial—
(A) The right or power both to approve and to remove without cause a
controlling portion of the governing body of the controlled entity; or
(B) The right or power to require the use of funds or assets of the
controlled entity for any purpose of the controlling entity.
(ii) If a controlling entity controls a controlled entity under the test set forth in
paragraph (i) of this definition, then the controlling entity also controls all entities
controlled, directly or indirectly, by the controlled entity or entities.
(iii) An entity is not a controlled entity under paragraph (i) of this definition if
the entity possesses substantial taxing, eminent domain, and police powers. For example,
a city possessing substantial amounts of each of these sovereign powers is not a controlled
entity of the state (Commonwealth).
“501(c)(3) Organization” means any Person described in Section 501(c)(3) of the Tax
Code and exempt from tax under Section 501(a) of the Tax Code.
“Governmental Person” means a state or local governmental unit as defined in Treas.
Regs. § 1.103-1 or any instrumentality thereof. The federal government and its agencies and
instrumentalities are not Governmental Persons.
“Issuer” means the Tobacco Settlement Financing Corporation, a public body corporate
and an independent instrumentality of the Commonwealth.
“Loan” means any transaction that is generally characterized as a loan for federal income
tax purposes. A Loan may arise from the direct lending of money or may arise from transactions
in which indirect benefits that are the economic equivalent of a loan are conveyed within the
meaning of Treas. Regs. § 1.141-5. Certain leases, management contracts and other contractual
arrangements and certain prepayments for property or services may constitute Loans under Treas.
Regs. § 1.141-5.
“Person” means any natural person, firm, joint venture, association, partnership, business
trust, corporation, limited liability company, corporation or partnership, or any other entity
(including a governmental entity).
“Project Expenses” means the expenditures to be paid by or on behalf of, or reimbursed
to, the Grantee in connection with the Grant as set forth in the Project Budget.
5.d.c
Packet Pg. 36 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 3 - Rev. 12/2020
“Related Party” means, in reference to a Governmental Person or a 501(c)(3)
Organization, any Person that is a member of the same Controlled Group and, in reference to any
Person that is not Governmental Person or a 501(c)(3) Organization, a Related Person.
“Related Person” shall have the meaning set forth in Section 144(a)(3) of the Tax Code.
For purposes of Section 144(a)(3) of the Tax Code, a Person is a Related Person to another
Person if—
(A) the relationship between such Persons would result in a disallowance of
losses under Section 267 or 707(b) of the Tax Code, or
(B) such persons are members of the same controlled group of corporations (as
defined in Section 1563(a) of the Tax Code, except that “more than 50 percent” shall be
substituted for “at least 80 percent” each place it appears therein).
“Tax Code” means the Internal Revenue Code of 1986, as amended, and the applicable
provisions of the regulations of the U.S. Department of Treasury promulgated thereunder.
“Tobacco Bonds” means the Tobacco Settlement Asset-Backed Bonds, Series 2005,
which were issued by the Issuer on May 16, 2005, and have a stated final maturity date of June 1,
2037, and the Tobacco Settlement Asset-Backed Bonds, Series 2007 B, C, and D which were
issued by the Issuer on May 3, 2007, and have a stated final maturity date of June 1, 2047.
“Working Capital Expenditure” means any cost that is not a Capital Expenditure.
Generally, current operating expenses are Working Capital Expenditures.
2. Source of Grant Funds; Reliance. The Grantee represents that it understands that the
Grant funds are derived from the proceeds of the Tobacco Bonds, the interest on which must
remain excludible from gross income for federal income tax purposes (that is, “tax-exempt”)
pursuant to both (i) Virginia law and (ii) contractual covenants made by the Commission, the Issuer
and the Commonwealth for the benefit of the owners of the Tobacco Bonds. The Grantee further
represents that (a) the undersigned authorized representative of the Grantee has been informed of
the purpose and scope of Sections 103 and 141-150 of the Tax Code as they relate to the Tobacco
Bonds and the Grant, and (b) the representations and warranties contained in this Section and
throughout this Agreement can be relied on by the Commission, the Issuer and bond counsel for
the Commission and Issuer in executing certain documents and rendering certain opinions in
connection with the Tobacco Bonds.
3. Nature of Grantee. The Grantee represents that it is neither a Commission-Related
Party nor an agent of the Issuer, the Commission or the Commonwealth. A true, correct and
complete copy of the Grantee’s charter, articles of incorporation or similar governing instrument
is attached hereto as Exhibit D and is in full force and effect on the date hereof. If the Grantee is
a 501(c)(3) Organization, a copy of its IRS determination letter shall also be attached as part of
Exhibit D hereto. The Grantee will not make any changes to its governing documents or structure,
funding or operations during the term of the Tobacco Bonds that would or may cause the Grantee
to become a Commission-Related Party or an agent of the Issuer, the Commission or the
Commonwealth.
5.d.c
Packet Pg. 37 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 4 - Rev. 12/2020
4. Project and Budget. The Grantee will complete all actions described in Exhibit A and
the Application (the “Project”), both of which are hereby incorporated by reference. In connection
with the Project, the Grantee shall meet or exceed the deliverables described in Exhibit A (the
“Project Outputs”). In the event the description of the Project or Project Outputs in the
Application and Exhibit A conflict, Exhibit A will control.
The Grantee agrees to complete the Project by June 30, 2025 (the “Grant Period”). The
Grant Period may be extended as provided in the Funding Policies (as defined herein).
The Grantee represents that the Grant funds and funds available from the other sources
specified in the Project Budget (as defined herein) will be sufficient to cause the Project to be
completed and agrees that the Commission makes no actual or implied promise to fund the Project
except as provided herein.
The “Project Budget” is the budget included in Exhibit B that is attached hereto and
incorporated by reference. The expenses for which the Grant will be used are identified in the
Project Budget (“Project Expenses”). Upon the Commission’s request, the Grantee agrees to
provide a detailed line item budget that more specifically identifies how the Grantee will expend
the Grant for the Commission’s review and approval (“Detailed Budget”), and the Detailed
Budget will replace the Project Budget. If requested, the Commission shall not disburse any portion
of the Grant until it receives an acceptable Detailed Budget.
The Grantee agrees to use the Grant exclusively for Project Expenses without the prior
written approval of the Executive Director of the Commission (the “Executive Director”) or his
designee. The Grantee must incur all Project Expenses during the Grant Period and acknowledges
that the Commission will rescind and deobligate any remaining Grant proceeds.
The Grantee agrees that it may not make any material changes to the scope of the Project
or to the Project Budget without obtaining the prior written approval of the Commission as
provided in the Commission’s Funding Policies for Grant Awards that are hereby incorporated by
reference (“Funding Policies”). The Commission’s approval must specifically set forth the
accepted change(s). The Grantee acknowledges the Commission may update the Funding Policies
from time to time and agrees to comply with the Funding Policies then in effect.
The Grantee agrees to provide a dollar-for-dollar match from non-Commission sources as
required by Va. Code § 3.2-3103(A)(7) (“Match”) and that the Match must be consistent with the
Funding Policies. The Executive Director or his designee must approve the Match. If the Project
Budget does not identify an acceptable Match as of the Award Date, the Grantee must obtain the
Match and provide satisfactory evidence thereof to the Commission within one year of the Award
Date. The Grantee may make a written request for an extension for one or more years by
demonstrating good cause for why it has not yet obtained the Match and explaining how it will
obtain the Match. In his sole discretion, the Executive Director may grant a written extension for
one or more additional years. If the Grantee fails to satisfy these requirements, the Commission
may terminate this Agreement and rescind the Grant.
The Grantee represents, warrants and covenants as follows:
5.d.c
Packet Pg. 38 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 5 - Rev. 12/2020
(a) All Project Expenses will be Capital Expenditures. No Project Expenses will be a
Working Capital Expenditure.
(b) Other than as described in Sections 11 and 12 below, the Grant does not impose on
the Grantee any obligation or condition to directly or indirectly repay any amount (in cash, property
or services or otherwise) to the Commission, the Issuer, the Commonwealth or any Commission-
Related Party.
(c) No Project Expenses will represent, nor will the Grant involve, the use by the
Grantee of any portion of the Grant funds, directly or indirectly, (i) to make or finance a grant or a
Loan to a Commission-Related Party or (ii) to refund, redeem or pay debt service on the debt
obligations (including without limitation any tax-exempt bonds) of the Grantee or any other
Person.
(d) No part of the assets to be financed by the Grant will be used by the Commission,
the Issuer, the Commonwealth or other Commission-Related Party pursuant to a lease, a
management or service contract, output contract, or pursuant to any other arrangement conveying
special legal entitlements for the use of such assets that is comparable to a lease, a management or
service contract or an output contract, such as an arrangement conveying priority rights to the use
or capacity of a Grant-financed asset.
The average reasonably expected economic life of the assets to be financed by the Grant is
set forth in Exhibit E attached hereto.
5. Payment of Grant Funds. Subject to the terms of this Agreement, the Funding
Policies, and the conditions set forth in Exhibit C attached hereto and incorporated by reference,
the Commission will pay the Grant to the Grantee on a reimbursement basis. The Commission in
its sole discretion will determine whether the Grantee is in compliance with this Agreement and
the documents incorporated by reference.
Prior to any disbursement, the Grantee must designate the officers, employees, or agents
authorized to make a reimbursement request by submitting the Commission’s Signature
Authorization Form. The Grantee may request reimbursement of Project Expenses upon
submission of an original payment request on the Commission’s then-current form (“Payment
Request Form”) signed by an authorized officer, employee or agent. The Grantee may submit
reimbursement requests no more frequently than quarterly unless the Commission agrees
otherwise. The Grantee acknowledges that expenses incurred prior to the Award Date are not
eligible for reimbursement.
The Grantee agrees to provide all supporting documentation required by the Funding
Policies with each Payment Request Form. The Commission may in its sole discretion refuse to
make a disbursement if the Grantee’s documentation is not in accordance with the Funding
Policies, adequate expenditure of Match has not been documented, the disbursement includes
items that are not Project Expenses, or is otherwise contrary to or in violation of the provisions
hereof. In addition, the Commission may refuse to disburse any funds to the Grantee if the Grantee
5.d.c
Packet Pg. 39 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 6 - Rev. 12/2020
is not current on its obligations to the Commission under this Agreement or an agreement related
to a different Commission grant.
If the Grant exceeds the amount necessary to complete the Project, the Grantee agrees that
the Commission will retain the excess. If the Commission disbursed excess funds, the Grantee
shall return such excess to the Commission within thirty (30) days of the completion of the Project
or the expiration of the Grant Period, whichever occurs first.
6. Right of Inspection. The Grantee agrees that the Commission (including its employees
and agents) may inspect the Project upon reasonable notice to the Grantee; provided, however, that
in the event of an emergency, the Commission may inspect the Project to preserve the intended
purpose of the Grant, with notice to the Grantee as practicable given the circumstances.
7. Inadequate Progress; Assurances. If after the first two years of the Grant Period have
passed, the Grantee has failed to make material progress toward completing the Project such that
the Commission determines in its sole discretion that it is not reasonably likely the Project will be
completed before the end of the Grant Period, the Commission may give written notice that it is
ceasing any further disbursements until the Grantee provides acceptable assurances. If the Grantee
fails to provide assurances the Commission finds acceptable in its sole discretion within 30 days
of such notice, the Commission may terminate this Agreement and rescind the undisbursed portion
of the Grant.
8. Recordkeeping. The Grantee shall maintain accurate and timely books and records with
respect to the Grant and the Project and in accordance with generally accepted accounting
principles. The Grantee shall retain all invoices from goods purchased and services performed or
received, receipts, or other evidence of the actual payment of costs related to the Project. For at
least three years after the end of the Grant Period, the Grantee shall retain all such documentation
and copies of all Payment Request Forms with supporting documentation and Annual and Final
Reports (as defined herein) submitted to the Commission. The Commission (including its
employees and agents) shall have the right to inspect and make copies of all such documentation.
9. Annual Reports. The Grantee shall submit to the Commission annual financial and
narrative reports reflecting activity related to the Project and progress made toward completion of
the Project and Project Outputs using the Commission’s then-current grant reporting form
(“Annual Report”). The Grantee shall provide its first Annual Report one year from the Award
Date and annually thereafter until the Project is complete. The Commission reserves the right to
request, and the Grantee agrees to provide, additional information to supplement the information
provided in the Annual Report, including but not limited to, the Grantee’s audited financial
statements. In addition, the Grantee shall submit any additional information related to the Project
upon the Commission’s request.
10. Final Report. The Grantee shall submit to the Commission a final financial and
narrative report with the final reimbursement request using the Commission’s then-current grant
reporting form (“Final Report”). The Final Report shall contain the type of information contained
in the Annual Reports, including a narrative as to the success of the Project, the status of Project
Outputs, and a discussion of the long-term achievements and expectations for the Project. The
5.d.c
Packet Pg. 40 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 7 - Rev. 12/2020
Commission may withhold disbursement of the final reimbursement until it receives a satisfactory
Final Report. In addition, the Grantee agrees to provide any additional reports concerning the
Project that the Commission may request.
11. Misuse of Award; Rights of Commission. If the Commission determines that any
part of the Grant has not been used for Project Expenses or for a purpose otherwise approved in
writing by the Executive Director, or that the Grantee has failed to comply with any material term
or condition of this Agreement, or has made any materially false or misleading statement to the
Commission in this Agreement, the Application, or in communications with the Commission, its
employees, or its agents related to the Project, the Commission may withhold any further
disbursements to the Grantee until the Grantee provides further assurances the Commission finds
acceptable in its sole discretion. In addition, the Commission may:
(a) terminate this Agreement and rescind the Grant by written notice to the
Grantee, in which event the Grantee shall be obligated to return to the Commission, within
five (5) days following receipt of such notice, an amount, from legally available funds,
equal to all Grant proceeds received pursuant to this Agreement;
(b) take any action as necessary to preserve the integrity of the Grant or to
preserve Grant funds for appropriate uses;
(c) determine that the Grantee is ineligible to receive future grant funding from
the Commission;
(d) withhold any and all disbursements requested by the Grantee from the
Commission under any other grant approved by the Commission; and/or
(e) take such judicial action as is necessary to collect any amounts owed,
including legal action for breach of this Agreement.
The Commission reserves the right to modify or withhold any disbursement of Grant funds
if the Commission determines that it is necessary to protect the purposes and objectives of the
Commission and the Grant, the Grantee is unable or unwilling to complete the Project, or to comply
with any law or regulation applicable to the Commission, the Grant and/or the Grantee.
12. Sale or Encumbrance; Security Interest. To the extent permitted by law, Grantee
hereby pledges, delivers and assigns to the Commission a security interest in all tangible and
intangible property acquired or improved with any portion of the Grant. Upon the Commission’s
request, the Grantee shall execute, provide and sign all documents necessary to perfect
Commission’s security interest in such property, including deeds of trust, supplemental deeds of
trust, amendments or modifications thereto, financing statements, continuation statements or other
instruments and documents which may be reasonably required from time to time.
The Grantee agrees that if any interest in property acquired or improved in whole or in part
with the Grant is licensed, leased, sold, exchanged, disposed of, hypothecated, mortgaged or
encumbered in any manner, or no longer used in connection with the Project, the Commission will
5.d.c
Packet Pg. 41 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 8 - Rev. 12/2020
be entitled to recover the portion of the current fair market value of the property attributable to the
Commission’s funding of the Project as further provided in the Funding Policies. None of the
assets or property acquired, constructed, improved, equipped, and/or furnished as part of the
Project may be licensed, leased, sold, exchanged, disposed of, hypothecated, mortgaged or
encumbered without the prior written approval of the Executive Director. In the event that such
asset or property is licensed, leased, sold, exchanged, disposed of, hypothecated, mortgaged or
encumbered without the prior written approval of the Executive Director, the Commission may
assert its interest in the asset or property to recover the Commission’s share of the value of such
asset or property and/or recover from the Grantee, unless otherwise prohibited by law.
13. Compliance; Procurement. The Grantee agrees to comply with all applicable federal,
state, and local laws and regulations pertaining to the Project and the use of Grant funds. If the
Grantee is a “public body” under the Virginia Public Procurement Act (Va. Code § 2.2-4300 et
seq.) (the “VPPA”) and will procure goods or services from nongovernmental sources in
connection with the Project, the Grantee agrees to comply with the VPPA. If the Grantee is not a
public body or is otherwise not required to comply with the VPPA, the Grantee agrees to conduct
competitive procurement processes consistent with applicable industry practice.
14. Miscellaneous.
(a) Press Releases. The Grantee agrees that it shall not issue any press releases or
other public statements regarding the Grant without the prior written consent of the Executive
Director.
(b) Entire Agreement; Assignment. To the extent there are inconsistencies
between this Agreement and documents and exhibits incorporated by reference, this Agreement
shall control. This Agreement expresses the entire understanding and all agreements between the
Commission and the Grantee and may not be modified except in a writing signed by the parties.
Neither this Agreement nor any rights under this Agreement may be assigned, by operation of law
or otherwise, by the Grantee without the prior written consent of the other parties hereto. The
provisions of this Agreement shall bind and inure to the benefit of the parties and their respective
successors and permitted assigns.
(c) Governing Law; Jurisdiction; Venue. This Agreement shall be governed by
the applicable laws of the Commonwealth. The venue of any judicial action shall be in the Circuit
Court of the City of Richmond, Virginia, and such litigation shall only be brought in such court.
(d) Limitation of Liability; Indemnification; Attorneys’ Fees. No member,
employee, or agent of the Commission shall incur any personal liability with respect to any action
taken by him or her pursuant to this Agreement. In connection with the award of the Grant or the
administration of the Project, the Commission does not and shall not assume any liability for any
financial or other obligations of the Grantee made to third parties, whether or not related to the
Project. There are no third party beneficiaries to this Agreement. Nothing contained herein shall
be deemed an express or implied waiver of the sovereign immunity of the Commission or the
Commonwealth. To the extent permitted by law, Grantee shall indemnify, save, and hold harmless
the Commission, its agents, and employees from any claims or causes of action arising from the
5.d.c
Packet Pg. 42 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 9 - Rev. 12/2020
performance of this Agreement by the Grantee or the Grantee’s agents or employees. In the event
the Commission is required to take legal action under this Agreement, the Grantee shall be liable
for all of the Commission’s costs expended for the administration and enforcement of this
Agreement, including but not limited to, reasonable attorneys’ fees and court costs. In addition,
the Grantee shall to the extent permitted by law at all times protect, indemnify and hold the
Commission, the Issuer, the Commonwealth and the owners of the Tobacco Bonds, and their
respective members, directors, officers, employees, attorneys and agents (the “Bond
Indemnitees”), harmless against any and all liability, losses, damages, costs, expenses, penalties,
taxes, causes of action, suits, claims, demands and judgments of any nature arising from or in
connection with any misrepresentation, breach of warranty, noncompliance or default by or on
behalf of the Grantee under this Agreement, including, without limitation, all claims or liability
(including all claims of and liability to the Internal Revenue Service) resulting from, arising out of
or in connection with the loss of the excludability from gross income of the interest on all or any
portion of the Tobacco Bonds that may be occasioned by any cause whatsoever pertaining to such
misrepresentation, breach, noncompliance or default, such indemnification to include the
reasonable costs and expenses of defending any Bond Indemnitee or investigating any claim of
liability and other reasonable expenses and attorneys’ fees incurred by any Bond Indemnitee in
connection therewith. If the Grantee is a public body, the Commission acknowledges the Grantee’s
obligations pursuant to this subsection (d) may be subject to receipt of necessary appropriations
and applicable law.
(e) Severability. If any provision of this Agreement shall be held invalid by any
court of competent jurisdiction, such holding shall not invalidate any other provision hereof.
(f) Public Documents. Unless specifically exempted pursuant to the Virginia
Freedom of Information Act (Va. Code § 2.2-3700 et seq.), all reports, documents, financial data
and other information provided to the Commission shall be public records.
(g) Notices. Unless otherwise provided for herein, all notices, approvals, consents,
correspondence and other communications pursuant to this Agreement shall be in writing and shall
be deemed received upon receipt or refusal after mailing of the same in the United States Mail by
certified mail, postage fully pre-paid or by overnight courier (refusal shall mean return of certified
mail or overnight courier package not accepted by the addressee) to (a) the Commission at 701
East Franklin Street, Suite 501, Richmond, Virginia 23219, Attention: Executive Director, or (b)
the Grantee at the address set forth below.
(h) Conditional Funding. In the event that disbursement of Grant funds is
contingent upon the happening of an event or events described herein that have not yet occurred
as of the Award Date, the Commission may withdraw the Grant if such contingency has not been
satisfied within twelve (12) months of the Award Date, unless otherwise provided in Exhibit C.
(i) Survival. The rights and remedies available to the Commission shall survive
any expiration or termination of this Agreement.
(j) Counterparts. This Agreement may be executed in counterparts, each of which
shall be an original, and all of which together shall constitute but one and the same instrument.
5.d.c
Packet Pg. 43 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 10 - Rev. 12/2020
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first written above.
TOBACCO REGION REVITALIZATION COMMISSION, a body
corporate and political subdivision of the Commonwealth of Virginia
Signature of Executive Director:
Printed Name of Executive Director: Evan Feinman
Date:
Pittsylvania County, Virginia
Signature of Grantee’s Chief Executive: _____________________________________
Printed Name of Chief Executive: __________________________________________
Date: ______________________
Grantee Information:
Address_____________________________________________________________________________
Phone #__________________ e-mail__________________________ Federal ID #________________
5.d.c
Packet Pg. 44 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 11 - Rev. 12/2020
Exhibit A
Project Description:
Two applications, City of Danville ($742,875 - #3663) and Pittsylvania County ($1,262,201 -
#3659), for a total of $2,005,076 of grant funds are requested to support grading of a 50-acrepad
site at the Southern Virginia Multimodal Park (the former Burlington Industries site) in the Town
of Hurt. The request is to meet the needs of an active prospect, Project Wahoo, with a first phase
of development expected to result in 100 new jobs with $37,000 average salary and $40 million
private capital investment. The company requires a site large enough for at least 500,000 square-
foot building. The SVMP is currently privately owned by Hurt Partners, LLC, and the Staunton
River RIFA would purchase and own the property prior to investment in site development.
Project Outputs:
Graded 50-acre site; the prospect’s creation of 100 new jobs paying an average annual wage of
$37,000 and a capital investment of $40 million
5.d.c
Packet Pg. 45 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 12 - Rev. 12/2020
Exhibit B
Project Budget
SVMP Site TRRC #3659 TRRC #3663
Improvements - Lot 2 Pittsylvania County (63%)City of Danville (37%)
Total Project Budget Approved Grant Budget Approved Grant Budget
TRRC Match Total TRRC Match TRRC Match
PROPERTY & IMPROVEMENTS
Acquisition - 74
acres @ $15,000 -$ 1,110,000$ 1,110,000$ -$ 699,300$ -$ 410,700$
Site Development
- SVMP 50 Acre 2,005,076$ 994,265$ 2,999,341$ 1,262,201$ 626,387$ 742,875$ 367,878$
Contractual -
A&E Services- -$ 260,812$ 260,812$ -$ 164,312$ -$ 96,500$
TOTAL 2,005,076$ 2,365,077$ 4,370,153$ 1,262,201$ 1,489,998$ 742,875$ 875,078$
2,005,076$ 2,365,077$ 4,370,153$ 63%37%
Budget Categories
5.d.c
Packet Pg. 46 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 13 - Rev. 12/2020
Exhibit C
Grant Conditions
1. At least 50% of the total Project Budget must be funded by non-Commission sources. The
Grantee must provide satisfactory evidence thereof to the Commission prior to
disbursement of any Grant proceeds. Unapproved applications to other funding sources are
not satisfactory evidence.
2. The Grant is contingent upon Project Wahoo achieving Completion (as defined below) at the
site at the Southern Virginia Multimodal Park where the Project will be undertaken by the
end of the Grant Period (as defined in Section 4 of this Agreement). “Completion” will occur
when Project Wahoo (a) makes a private taxable capital investment of at least $40 million,
and (b) creates at least 100 new full-time jobs, all at the site. If the Commission cannot
determine that Project Wahoo has achieved Completion by the end of the Grant Period, the
Grantee agrees to repay to the Commission all Grant funds received within 30 days of the
end of the Grant Period. The Grantee agrees to provide all information the Commission
reasonably requests in order to determine whether Project Wahoo has achieved Completion.
Such information may include information the Commission typically obtains in connection
with grants made through its Tobacco Region Opportunity Fund Program, including
information from the Grantee’s Commissioner of Revenue and information from Project
Wahoo, such as its filings with the Virginia Employment Commission. The Commission will
maintain the confidentiality of all such information to the maximum extent permitted by law.
5.d.c
Packet Pg. 47 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 14 - Rev. 12/2020
Exhibit D
Governing Documents of Grantee
Attach charter, articles of incorporation or similar governing instruments, also attach IRS determination
letter if a 501(c)(3) Organization.
[NOT APPLICABLE TO LOCAL POLITICAL SUBDIVISION]
5.d.c
Packet Pg. 48 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 15 - Rev. 12/2020
Exhibit E
DETERMINATION OF AVERAGE REASONABLY EXPECTED
ECONOMIC LIVES OF PROJECT ASSETS
The Tax Code limits the length of average maturity for certain tax-exempt bonds, such as the
Tobacco Bonds, to no more than 120% of the average reasonably expected economic life of the assets being
financed with the proceeds of such bonds. In this Exhibit, the Grantee will determine the average
reasonably expected economic life of the assets being financed by the Grant.
There are two safe harbors in determining "economic life": the ADR midpoint life under IRS
Revenue Procedures 83-85 and 87-56 and the guideline life under IRS Revenue Procedure 62-61(in the
case of structures). For the purposes hereof, the reasonably expected economic life of an asset is to be
determined as of the date the asset is expected to be placed in service. You may wish to consult your
accountant in completing this Exhibit. Commission staff can provide copies of the above-referenced
Revenue Procedures.
Please complete the attached Schedule as follows:
Step 1. Please list each of the assets comprising the Project to be financed or refinanced
by the Grant funds by describing them in Column I. At the minimum, the assets should be broken down as
"Land," "Land Improvements," "Building," and "Equipment." In Column II, indicate whether each asset
will be acquired, constructed, installed, renovated, etc.
Step 2. In Column III, set forth the corresponding total cost of each asset to be paid with
Grant funds. Any amounts shown on the Project Budget as "Contingency" should be assigned to the
shortest-lived asset.
Step 3. In Column IV, set forth the date each asset is expected to be placed in service. An
asset is first placed in service when it is first placed in a condition or state of readiness and availability for
a specifically assigned function.
Step 4. In Column V, set forth in years the ADR midpoint life or the guideline life of each
asset listed in Column I, in accordance with the following:
Land. If any portion of the Grant funds will be used to finance the acquisition of land,
Commission staff should be consulted to determine the economic life to be assigned. In most cases,
Commission staff will direct you to assign the land an economic life of 0 and to exclude the land
from the economic life calculation.
If land improved with one or more existing buildings will be acquired, please allocate the
purchase price between the land and buildings and furnish the Commission with a copy of a recent
appraisal of the relative value of the land and buildings to support your allocation.
Buildings. A guideline life must be determined under Revenue Procedure 62-21 for any
building to be financed with the Grant. Forty years is the guideline life for most buildings. Based
on the nature of the particular building, your accountant or Commission staff will assist you in
determining whether another guideline life is more appropriate. Each building includes the
structural shell of the building and all integral parts thereof, equipment which services normal
5.d.c
Packet Pg. 49 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 16 - Rev. 12/2020
Exhibit E con’t
heating, plumbing, air conditioning, fire prevention and power requirements, and equipment such as
elevators and escalators.
Equipment. Please select a ADR midpoint life for each item of equipment to be financed.
The tables of asset guideline classes, asset guideline periods and asset depreciation ranges included
in Revenue Procedures 83-35 and 87-56 is used for reference.
To use the table, you should first determine the asset guideline class in which each item of
equipment falls. General business assets fall into classes 00.11 through 00.4 to the extent that a
separate class is provided for them. Other assets, to the extent that a separate class is provided, fit
into one or more of classes 01.1 through 80.0. Subsidiary assets (jigs, dies, molds, patterns, etc.)
are in the same class as are the other major assets in an industry activity unless the subsidiary assets
are classified separately for that industry. Each item of equipment should be classified according
to the activity in which it is primarily used. If the equipment is not described in any asset guideline
class, its estimated economic life must be determined on a case by case basis.
Working Capital. Working Capital Expenditures are ineligible for Grant funding.
Step 5. In Column VI, adjust the ADR midpoint or guideline life for each asset by adding
the amount of time (in years) between May 16, 2005 (the closing date of the Tobacco Bonds) and the in-
service date specified in Column IV. For example, if a building with a guideline life of 40 years will be
placed in service one year and six months after May 16, 2005, the adjusted economic life for such building
in Column VI should be 41.5
Step 6. In Column VII, show with respect to each asset the product of the respective entry
in Column III multiplied by the respective entry in Column VI.
Step 7. Total all of entries in Column III and Column VII.
Step 8. Divide the Column VII Total by the Column III Total. The quotient is the average
reasonably expected economic life of the assets to be financed with Grant funds as part of the Project.
5.d.c
Packet Pg. 50 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der
Tobacco Region Revitalization Commission Page - 18 - Rev. 12/2020
Exhibit E con’t
INFORMATION SCHEDULE
REASONABLY EXPECTED ECONOMIC LIVES
OF PROJECT FACILITIES
COLUMN COLUMN COLUMN COLUMN COLUMN COLUMN COLUMN
I II III IV V VI VII
DESCRIPTION
OF ASSETS
INCLUDED IN
THE PROJECT
ACQUISITION,
CONSTRUCTION,
INSTALLATION,
RENOVATION,
ECT.
TOTAL
COST TO
BE
FINANCED
BY
GRANT
IN
SERVICE
DATE
GUIDELINE
OR ADR
MIDPOINT
LIFE
ADJUSTED
ECONOMIC
LIFE
COLUMN III X
COLUMN VI
Land
Improvements Construction $1,262,201 11/30/2021 20 36.55 46,137,769
0
Total: Total:
$1,262,201 $46,137,769
AVERAGE RESONABLY EXPECTED ECONOMIC LIFE COLUMN VII
TOTAL $46,137,769
/ COLUMN III
TOTAL: 1,262,201 = 36.55 YEARS
5.d.c
Packet Pg. 51 Attachment: 3659 - Restricted Grant_Agreement.12222020 (2657 : Economic Development Grading
From: Matthew Rowe
Sent: Sunday, January 31, 2021 1:58 PM
To: Kim Van Der Hyde <Kim.Vanderhyde@pittgov.org>; J. Vaden Hunt, Esq. <vaden.hunt@pittgov.org>
Cc: David M. Smitherman <David.Smitherman@pittgov.org>; Kattie Saunders
<Kattie.Saunders@pittgov.org>
Subject: RE: SVMP Tobacco Commission Grant Agreements (#3663 / 3659)
Kim:
I apologize again for just getting this to you.
The local County share as currently budgeted for the SVMP Lot 2 Site Improvement Grant (#3659) is
$1,489,998. Based upon ongoing conversations with the Company, the timing of expenses associated
with the project appear to be from the 2nd qtr. 2021 – 2nd qtr. 2022; dependent upon the timing of the
company’s investors and their required due diligence period. Please note, that per the executed LOI and
the Commission grant agreement draft, that Pittsylvania County cannot proceed with utilizing Commission
grant funds until a Local Performance Agreement is executed and proper securitization is in
place. County Staff has dictated this in both the draft Local Performance Agreement and the Commission
Agreement to eliminate the risk of clawback. Tobacco Commission performance agreement draft is
attached. Vaden has reviewed the document and has accepted the document as being legally
acceptable – I have verified that the terms and conditions of the document are accurate.
The local County share as currently budgeted for the Lot 1 Southern VA Megasite (repurposed grant
#3358) is up to $1,312,400 – I believe that this money was listed by an active encumbrance in the County
budget in 2017. The projected timing of expending these funds is dependent upon active Project Recycle
– per State conversations on Friday, it has been stated that the Company is looking to make a final
decision within the next 60-days. As with all projects, COVID is lengthening every part of the decision
making process. If Recycle does not choose the site, then I believe there is desire for the County to not
pursue the grading of the site until the next fiscal year (after July 1, 2021). Based upon Dewberry’s June
project estimate, it appears that the total project cost could be almost $800,000 less than the cumulative
grant and local match amount. Please see the Dewberry cost estimate sheet attached; also please see
the attached Dewberry initial engineering proposal which has been approved by RIFA and can be
included in the project costs.
Total local County match liability is up to $2,802,398 for the 2 projects over the next 12-18 months.
I hope this is what you are needing. If not, please let me know and I’ll definitely take another look.
Thanks!
Matt
Matthew Rowe
Director
Economic Development
5.d.d
Packet Pg. 52 Attachment: Email (2657 : Economic Development Grading Obligation (Staff Contact: Kim Van Der Hyde))