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EDAAgenda2024April4ECONOMIC DEVELOPMENT AUTHORITY | THURSDAY, APRIL 4TH | | 8:00 AM | COUNTY ADMINISTRATION BUILDING @ FIRST FLOOR CONFERENCE ROOM 107 KENT STREET WINCHESTER, VA 1.Call to Order 2.Approval of Minutes – February 1, 2024|| ACTION 3.Treasurer’s Report || ACTION 4.FredCo Eats | INFORMATION •Recap on the 2024 Restaurant Week that celebrate Frederick County’s local restaurants and promote this sector 5.Incentive Policy | ACTION •Annual review of incentive policy to reflect current business targets and State discretionary incentive policies 6.Benchmark Analysis (Update from Target Industry analysis – January 2023) | INFORMATION •Updated analysis that compares the Frederick County MSA to 28 competing MSAs on various demographic economic indicators as well as industry and occupation variables for the EDA Industry Targets’ value propositions 7.Project Announcements of Targeted Industries (Presented in June 23) | INFORMATION •Update on recent announcements from the EDA Targeted Industries for the past 12 months 8.Grocery Store Attraction || INFORMATION •Update on progress of contacting grocery stores 9.Such other business as may come before this Authority MINUTES ECONOMIC DEVELOPMENT AUTHORITY | THURSDAY, FEBRUARY 1, 2024 | A meeting of the Frederick County Economic Development Authority was held on Thursday, February 1, 2024, at 8:00 a.m. in the County Administration Building, First Floor Conference Room, 107 North Kent Street, Winchester, Virginia. PRESENT: Rick Till, Judy McCann-Slaughter, Karen Swecker, Bryan Fairbanks and Gary Lofton. Due to personal reasons, Stan Crockett participated by phone which was approved by Board members present. STAFF: Patrick Barker, Shayla Rickard, Wendy May, and Donna McIlwee, Frederick County Economic Development Authority; Michael Bryan, EDA Attorney; Rod Williams, County Attorney; and Jay Tibbs, Deputy County Administrator MEETING CALLED TO ORDER: Chairman Till called the meeting to order at 8:00 a.m. PUBLIC HEARING—MODIFICATION OF UP TO $17,000,000 OF REVENUE BONDS FOR THE BENEFIT OF THE LEGACY AT NORTH AUGUSTA, INC. Mr. Till opened the Public Hearing, held at the request of The Legacy at North Augusta, Inc. regarding certain modifications to the Authority’s Residential Care Facility Revenue Bonds (The Legacy at North Augusta project), Series 2011 (the “Bonds”), originally issued in an aggregate principal amount of $17,000,000. No one spoke during the Public Hearing, which was then closed by Mr. Till. RESOLUTION FOR MODIFICATION OF UP TO $17,000,000 OF REVENUE BONDS FOR THE BENEFIT OF THE LEGACY AT NORTH AUGUSTA, INC. Mr. Bryan introduced the Legacy’s Bond Attorney, Mike Graff, and Craig Watson, a representative from Legacy. He explained the resolution was to modify the bonds as to the interest rate. There is no obligation placed on the Authority and the Authority is not indebted on these bonds. The Authority does receive an administrative fee from the bonds. EDA Board members were provided a copy of the proposed Resolution prior to this meeting. On motion of Mr. Fairbanks, seconded by Mr. Lofton, the Resolution was approved by the following recorded vote: J. Stanley Crockett Aye Bryan Fairbanks Aye Page 2 of 4 Frederick County EDA Meeting Minutes | February 1, 2024 Diane Kearns Aye Gary Lofton Aye Judy McCann-Slaughter Aye Karen Swecker Aye Rick Till Aye PARTNER SHOWCASE – FREDERICK COUNTY PLANNING DEPARTMENT Mr. Barker introduced Wyatt Pearson, Director, and Tyler Klein, Senior Planner, to give an operational overview of Frederick County’s Planning & Development Department. Mr. Pearson explained how the department interacts with the EDA. Mr. Klein presented an overview of the proposed Western Frederick Land Use Plan. APPROVAL OF MINUTES The minutes from the January 4, 2024, meeting were presented. On motion duly made by Mr. Loften and seconded by Ms. McCann-Slaughter, the minutes were approved by the following recorded vote: J. Stanley Crockett Aye Bryan Fairbanks Aye Diane Kearns Aye Gary Lofton Aye Judy McCann-Slaughter Aye Karen Swecker Aye Rick Till Aye TREASURER'S REPORT Mr. Barker submitted the following report: Checking Account - Bank of Clarke as of December 31, 2023 - $7043.22 Intrafi Account – Bank of Clarke as of December 31, 2023 - $2,898,763.72 On motion of Ms. McCann-Slaughter, seconded by Mr. Lofton, the Treasurer’s Report was approved by the following recorded vote: J. Stanley Crockett Aye Bryan Fairbanks Aye Diane Kearns Aye Gary Lofton Aye Judy McCann-Slaughter Aye Page 3 of 4 Frederick County EDA Meeting Minutes | February 1, 2024 Karen Swecker Aye Rick Till Aye PERFORMANCE AGREEMENTS VIRGINIA BUSINESS READY SITE PROGRAM Mr. Barker distributed a draft Performance Agreement between the EDA and VEDP due to two minor revisions. Mr. Till stated the Performance Agreement with the Peterson Companies is ready for signature. Mr. Lofton asked if there were any questions not resolved in this Agreement. Mr. Barker stated that Section 13, Final Reimbursement, needs to be discussed more with VEDP. All work must be completed before Peterson can request reimbursement and VEDP makes the final decision if work is complete. On motion of Ms. McCann-Slaughter, seconded by Mr. Fairbanks, the Board voted to move forward with the Performance Agreement by the following recorded vote: J. Stanley Crockett Aye Bryan Fairbanks Aye Diane Kearns Aye Gary Lofton Aye Judy McCann-Slaughter Aye Karen Swecker Aye Rick Till Aye VIRGINIA BUSINESS READY SITE PROGRAM APPLICATION Mr. Barker reported that One Logistics Park’s pre-application for $10,000,000 from the 2024 round of VBRSP Grant funding has been accepted for consideration. STRATEGY MEASUREMENTS UPDATE Mr. Barker stated that, to ensure proper implementation, staff will provide quarterly updates on the plan’s performance measures. Ms. May, Marketing Manager, reviewed Restaurant Week activities and the upcoming Agribusiness Conference. Ms. Rickard, Business Retention Manager, announced the Widget Cup competition would be held on April 11 at Millwood High School and the Employer Expo on May 8 at Shenandoah University. Page 4 of 4 Frederick County EDA Meeting Minutes | February 1, 2024 GROCERY STORE ATTRACTION Mr. Barker gave an update on his efforts to encourage grocery stores to locate in Frederick County. Two have shown moderate interest, 4 have long-term market consideration, and 2 have no interest. SUCH OTHER BUSINESS AS MAY COME BEFORE THIS AUTHORITY Mr. Barker provided Board members with a recap of key proposed bills in the Virginia legislature and a full list of proposed bills that VEDA is tracking. Ms. McCann-Slaughter asked that Board members be made aware of any bills detrimental to our community or work we are doing so that contact can be made with our legislators. ADJOURN There being no further business to come before this Authority, the meeting was adjourned at 8:55 a.m. ________________________________ ____________________________ Richard Till Jay Tibbs Chairman Secretary TREASURER'S REPORT SYNOPSIS ECONOMIC DEVELOPMENT AUTHORITY January 31, 2024 BANK OF CLARKE COUNTY Beginning Bank Statement Balance - as of December 31, 2023 $7,043.22 Total Deposits $0.00 Total Disbursements -$1,950.00 BANK STATEMENT BALANCE AS OF January 31, 2024 $5,093.22 BANK OF CLARKE - INTRAFI ACCOUNT Beginning Bank Statement Balance - as of December 31, 2023 $2,898,763.72 Total Deposits $10,679.24 Total Disbursements $0.00 BANK STATEMENT BALANCE AS OF January 31, 2024 $2,909,442.96 TREASURER'S REPORT ECONOMIC DEVELOPMENT AUTHORITY January 31, 2024 BANK OF CLARKE COUNTY Beginning Bank Statement Balance - as of December 31, 2023 $7,043.22 Deposits TOTAL DEPOSITS $0.00 Disbursements 1629 1/10/2024 Michael L. Bryan (Legal Fees) -$1,950.00 TOTAL DISBURSEMENTS -$1,950.00 BANK STATEMENT BALANCE AS OF January 31, 2024 $5,093.22 TREASURER'S REPORT ECONOMIC DEVELOPMENT AUTHORITY January 31, 2024 BANK OF CLARKE - INTRAFI ACCOUNT Beginning Bank Statement Balance - as of December 31, 2023 $2,898,763.72 Deposits 1/31/2024 Deposit $10,679.24 TOTAL DEPOSITS $10,679.24 Disbursements TOTAL DISBURSEMENTS $0.00 BANK STATEMENT BALANCE AS OF January 31, 2024 $2,909,442.96 ** $1,907,000 represents proceeds from the sale of the Robinson School properties. Contact Us Account Economic Development Authority of the Co Date 01/31/2024 Page 1 of 2 IntraFi Cash ServiceSM, or ICS®, Monthly Statement The following information is a summary of activity in your account(s) for the month of January 2024 and the list of FDIC-insured institution(s) that hold your deposits as of the date indicated. These deposits have been placed by us, as your agent and custodian, in deposit accounts through IntraFi Cash Service. Funds in your deposit accounts at the FDIC-insured institutions at which your funds have been placed will be "deposits," as defined by federal law. Summary of Accounts Account ID Deposit Option Interest Rate Opening Balance Ending Balance Demand 4.33%$2,898,763.72 $2,909,442.96 TOTAL $2,898,763.72 $2,909,442.96 CONTAINS CONFIDENTIAL INFORMATION IntraFi and ICS are registered service marks, and IntraFi Cash Service is a service mark, of IntraFi Network LLC. Bank of Clarke PO Box 391 Berryville, VA 22611 Economic Development Authority of the Co 00000 RETURN SERVICE REQUESTED DETAILED ACCOUNT OVERVIEW Account ID: Account Title: Economic Development Authority of the Co Account Summary - Demand Statement Period 1/1-1/31/2024 Average Daily Balance $2,899,108.21 Previous Period Ending Balance $2,898,763.72 Interest Rate at End of Statement Period 4.33% Total Program Deposits 0.00 Annual Percentage Yield Earned 4.42% Total Program Withdrawals (0.00) YTD Interest Paid 10,679.24 Interest Capitalized 10,679.24 Current Period Ending Balance $2,909,442.96 Account Transaction Detail Date Activity Type Amount Balance 01/31/2024 Interest Capitalization $10,679.24 $2,909,442.96 Summary of Balances as of January 31, 2024 FDIC-Insured Institution City/State FDIC Cert No.Balance Axos Bank San Diego, CA $182,512.69 Banc of California Los Angeles, CA 247,911.68 Citizens Bank, National Association Providence, RI 247,911.68 Comerica Bank Dallas, TX 247,813.47 First-Citizens Bank & Trust Company Raleigh, NC 247,911.68 Flagstar Bank, N.A.Hicksville, NY 247,911.68 Merchants Bank of Indiana Carmel, IN 247,911.68 Pinnacle Bank Nashville, TN 247,911.68 Raymond James Bank St. Petersburg, FL 247,911.68 Truist Bank Charlotte, NC 247,911.68 Western Alliance Bank Phoenix, AZ 247,911.68 Zions Bancorporation, N. A.Salt Lake City, UT 247,911.68 Date 01/31/2024 Page 2 of 2 CONTAINS CONFIDENTIAL INFORMATION IntraFi and ICS are registered service marks, and IntraFi Cash Service is a service mark, of IntraFi Network LLC. TREASURER'S REPORT SYNOPSIS ECONOMIC DEVELOPMENT AUTHORITY February 29, 2024 BANK OF CLARKE COUNTY Beginning Bank Statement Balance - as of January 31, 2023 $5,093.22 Total Deposits $25,000.00 Total Disbursements -$4,680.00 BANK STATEMENT BALANCE AS OF February 29, 2024 $25,413.22 BANK OF CLARKE - INTRAFI ACCOUNT Beginning Bank Statement Balance - as of January 31, 2023 $2,909,442.96 Total Deposits $9,972.43 Total Disbursements -$25,000.00 BANK STATEMENT BALANCE AS OF February 29, 2024 $2,894,415.39 TREASURER'S REPORT ECONOMIC DEVELOPMENT AUTHORITY February 29, 2024 BANK OF CLARKE COUNTY Beginning Bank Statement Balance - as of January 31, 2023 $5,093.22 Deposits 2/12/2024 Transfer from IntraFi into Checking $25,000.00 TOTAL DEPOSITS $25,000.00 Disbursements 1630 2/12/2024 Michael L. Bryan (Legal Fees) -$4,680.00 TOTAL DISBURSEMENTS -$4,680.00 BANK STATEMENT BALANCE AS OF February 29, 2024 $25,413.22 TREASURER'S REPORT ECONOMIC DEVELOPMENT AUTHORITY February 29, 2024 BANK OF CLARKE - INTRAFI ACCOUNT Beginning Bank Statement Balance - as of January 31, 2023 $2,909,442.96 Deposits 2/29/2024 Deposit $9,972.43 TOTAL DEPOSITS $9,972.43 Disbursements 2/12/2024 Transfer into Checking -$25,000.00 TOTAL DISBURSEMENTS -$25,000.00 BANK STATEMENT BALANCE AS OF February 29, 2024 $2,894,415.39 ** $1,907,000 represents proceeds from the sale of the Robinson School properties. Contact Us Account Economic Development Authority of the Co Date 02/29/2024 Page 1 of 2 IntraFi Cash ServiceSM, or ICS®, Monthly Statement The following information is a summary of activity in your account(s) for the month of February 2024 and the list of FDIC-insured institution(s) that hold your deposits as of the date indicated. These deposits have been placed by us, as your agent and custodian, in deposit accounts through IntraFi Cash Service. Funds in your deposit accounts at the FDIC-insured institutions at which your funds have been placed will be "deposits," as defined by federal law. Summary of Accounts Account ID Deposit Option Interest Rate Opening Balance Ending Balance Demand 4.33%$2,909,442.96 $2,894,415.39 TOTAL $2,909,442.96 $2,894,415.39 CONTAINS CONFIDENTIAL INFORMATION IntraFi and ICS are registered service marks, and IntraFi Cash Service is a service mark, of IntraFi Network LLC. Bank of Clarke PO Box 391 Berryville, VA 22611 Economic Development Authority of the Co AAAAAAAAAAAAAAAAAAAAAA 00000 RETURN SERVICE REQUESTED DETAILED ACCOUNT OVERVIEW Account ID: Account Title: Economic Development Authority of the Co Account Summary - Demand Statement Period 2/1-2/29/2024 Average Daily Balance $2,894,269.60 Previous Period Ending Balance $2,909,442.96 Interest Rate at End of Statement Period 4.33% Total Program Deposits 0.00 Annual Percentage Yield Earned 4.42% Total Program Withdrawals (25,000.00) YTD Interest Paid 20,651.67 Interest Capitalized 9,972.43 Current Period Ending Balance $2,894,415.39 Account Transaction Detail Date Activity Type Amount Balance 02/12/2024 Withdrawal ($25,000.00)$2,884,442.96 02/29/2024 Interest Capitalization 9,972.43 2,894,415.39 Summary of Balances as of February 29, 2024 FDIC-Insured Institution City/State FDIC Cert No.Balance BOKF, National Association Tulsa, OK $247,851.16 Banc of California Los Angeles, CA 247,851.16 Citizens Bank, National Association Providence, RI 247,851.16 Comerica Bank Dallas, TX 443.76 Comerica Bank Dallas, TX 247,381.42 First Foundation Bank Irvine, CA 167,641.69 First-Citizens Bank & Trust Company Raleigh, NC 247,851.16 Flagstar Bank, N.A.Hicksville, NY 247,851.16 Merchants Bank of Indiana Carmel, IN 436.93 Pinnacle Bank Nashville, TN 247,851.16 Raymond James Bank St. Petersburg, FL 247,851.16 Truist Bank Charlotte, NC 247,851.16 Western Alliance Bank Phoenix, AZ 247,851.15 Zions Bancorporation, N. A.Salt Lake City, UT 247,851.16 Date 02/29/2024 Page 2 of 2 CONTAINS CONFIDENTIAL INFORMATION IntraFi and ICS are registered service marks, and IntraFi Cash Service is a service mark, of IntraFi Network LLC. AAAAAAAAAAAAAAAAAAAAAA 00000 DATE: March 22, 2024 TO: Board of Directors, Frederick County Economic Development Authority FROM: Wendy May Marketing Manager CC: Jay Tibbs Deputy County Administrator RE: Results: FredCo Eats Restaurant Week | Agribusiness Conference In January 2022, the EDA launched its FredCo Eats brand with the County’s inaugural FredCo Eats Restaurant Week. While the effort began with Restaurant Week, FredCo Eats seeks to cultivate and elevate the full scope of the Frederick County, Virginia, food economy, including agriculture, food manufacturing, and the dining experience. The following are results from recent events supported through the FredCo Eats brand. Completed: 3rd Annual FredCo Eats Restaurant Week Restaurant Week is managed by the EDA and seeks to expand awareness of Frederick County’s restaurant industry and provide a mid-winter boost for restaurants, a time when sales traditionally decline. Frederick County’s restaurant scene is diverse, including stand-alone restaurants, food trucks, and farms with cafes and markets. Participation criteria are purposely broad to include as many local eateries as possible. Participants offered a mix of multi-course menus, meal deals, and promotional discounts, January 29 – February 4, 2024. The EDA measures the success of Restaurant Week through a post-event survey of participating eateries where they indicate their overall satisfaction with the event, if the event increased awareness of their business, and if new customers were generated. 2024 FredCo Eats Restaurant Week Results Participating Eateries: 20 Eatery Survey Results (15 respondents) •Satisfaction Rate: 100% •Event Increased Awareness: 100% •Event Generated New Customers: 100% 2025 Restaurant Week: January 27 – February 2, 2025 2025 Areas of Focus: Increased B2B support, Ambassadors Page 2 of 2 Restaurant Week & Ag Conference | Results | April 2024 Completed: Cultivate Your Agribusiness Conference The EDA worked with the Laurel Ridge Small Business Development Center to launch the inaugural Cultivate Your Agribusiness Conference on February 21, 2024, at Laurel Ridge Community College. Nine workshops were offered across three tracks focused on considerations for starting and growing an agribusiness in the Northern Shenandoah Valley. The half-day event culminated with a keynote address on the Economic Outlook of Agriculture and Agribusiness in Virginia and the Northern Shenandoah Valley from Virginia Secretary of Agriculture, Matthew Lohr. Local agribusinesses connected with resource providers at the local, state, and federal levels at the conference, directly supporting a need identified through the EDA’s 2023 survey of Frederick County agribusinesses. 2024 Cultivate Your Agribusiness Results •Goal: 100 participants •Actual: 113 participants •Highly Satisfied or Satisfied with Overall Event: 100% (70 respondents) •Direction Moving Forward: Hold annually in February Next Event: Thursday, February 20, 2025, at Laurel Ridge Community College 2025 Areas of Focus: Individual consultation opportunities for participants, sponsorship FredCoEats.com is the central hub for information related to the EDA’s FredCo Eats brand and efforts supported under its umbrella. # F r e d C o E a t s R W JANUARY 29 - FEBRUARY 4, 2024 Enjoy multi-course menus, promotional discounts, and meal deals at participating Frederick County restaurants! Content features at FredCoEats.com will showcase local cuisines, our favorite neighborhood hangouts, creative chefs, and restaurant families. Join us this winter as we taste our way through Frederick County’s eateries! Get all the details  FredCoEats.com A SHOWCASE OF FREDERICK COUNTY RESTAURANTS Dine-inTake-out& Special restaurant week menus and pricing! FredCo Eats Passport Promotion: Collect stamps on your Restaurant Week Passport for a chance to win prizes! FredCoEats.com CULT IVAT E YOUR AGRIBUSINESS CONFERENCE 08:45 AM Cost Sharing Opportunities & Best Practices Allyson Ponn Lord Fairfax Soil & Water Conservation District Jeanette Smith USDA Farm Service Agency Brent Barriteau Natural Resources Conservation Service 09:45 AM Marketing & Financial Assistance Heather Wheeler Virginia Department of Agriculture and Consumer Services 10:45 AM Strategizing Your Business Christine Kriz Laurel Ridge Small Business Development Center FEB 212024 8AM - 1PM FINANCIAL BEST PRACTICES PROTECTING YOUR BUSINESS AGRITOURISM 08:45 AM Depreciation of Equipment &Tax Considerations David Henning YHB - Yount, Hyde & Barbour 09:45 AM Structuring Your Business & Estate Planning Kevin McKannan Glenloch Legal 10:45 AM Insurance Considerations Jason Wisecarver Horizon Farm Credit 08:45 AM Virginia Tourism Corporation Opportunities Kelli Weaver Virginia Tourism Corporation 09:45 AM Local Tourism Initiatives Justin Kerns Winchester-Frederick County Convention & Visitors Bureau Jenna French Shenandoah County Tourism & Economic Development 10:45 AM Your Business as a Destination Katie Mercer Town of Woodstock Amber Smoot Town of New Market 08:00 AM Check In & Networking (Corron Event Center) 08:30 AM Welcome (Corron Event Center) 11:45 AM Lunch / Networking (Corron Event Center) 12:15 PM Keynote The Economic Outlook of Agriculture in Virginia & the Northern Shenandoah Valley Matthew Lohr Virginia Secretary of Agriculture and Forestry (Corron Event Center) AGENDA� LaurelRidgeSBDC.org DATE: March 29, 2024 TO: Board of Directors, Frederick County Economic Development Authority FROM: Patrick Barker, CEcD Executive Director CC: Jay Tibbs Deputy County Administrator RE: Incentive Policy | Update The Incentive Policy governs all aspects of the local economic development incentive grant process (i.e., who qualifies, what is the process for approval, who conducts the audit of a company’s performance and who reviews performance agreements). Staff recommends the EDA Board review this document annually. The most significant revision is related to the Agricultural & Forestry Industry Development Fund. The minimum requirements for this program are inserted for consistency and clarity purposes. Details related to necessary wage levels to qualify have been updated. Other revisions are intended for clarity purposes. Staff is seeking EDA approval of the document. SAMPLE LEDIG Performance Agreement FINAL 1 LOCAL ECONOMIC DEVELOPMENT INCENTIVE GRANT PERFORMANCE AGREEMENT This PERFORMANCE AGREEMENT made and entered this X day of X 202X by and among the COUNTY OF FREDERICK, VIRGINIA (the “Locality”), LEGAL NAME (“Company”), and the ECONOMIC DEVELOPMENT AUTHORITY OF THE COUNTY OF FREDERICK, VIRGINIA (the “Authority”), a political subdivision of the Commonwealth. WITNESSETH: WHEREAS, the Locality wishes to make a Local Economic Development Incentive Grant in the amount of $VALUE (the “LEDIG”) through the Authority to Company for the purpose of inducing Company to expand, equip, improve, and operate its production operations located in the Locality (the “Facility”), thereby making a significant Capital Investment, and creating and Maintaining a significant number of New Jobs, as such capitalized terms are hereinafter defined; WHEREAS, the Locality is willing to provide the funds to the Authority with the expectation that the Authority will provide the funds to or for the use of Company, provided that Company promises to meet certain criteria relating to Capital Investment and New Jobs; WHEREAS, the Locality, the Authority and Company desire to set forth their understanding and agreement as to the payout of the LEDIG, the use of the proceeds of the LEDIG, the obligations of Company regarding Capital Investment and New Jobs, and the repayment by Company of all or part of the LEDIG under certain circumstances; WHEREAS, the expansion, equipping, improvement, and operation of the Facility will entail a capital expenditure by or on behalf of Company of approximately $VALUE of which approximately $VALUE will be invested in machinery and tools, and approximately $VALUE WHEREAS, the expansion, equipping, improvement, and operation of the Facility will further entail the creation and Maintenance of VALUE New Jobs at the Facility; and WHEREAS, the stimulation of the additional tax revenue and economic activity to be generated by the Capital Investment and the New Jobs constitutes a valid public purpose for the expenditure of public funds and is the animating purpose for payment of LEDIG to Company: SAMPLE LEDIG Performance Agreement FINAL 2 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 covenant and agree as follows. Section 1. Definitions. For the purposes of this Agreement, the following terms shall have the following definitions: “Capital Investment” means a capital expenditure by or on behalf of Company in taxable real property, taxable tangible personal property, or both, at the Facility, excluding existing real property improvements. The purchase or lease of furniture, fixtures, machinery and equipment, including under an operating lease, by or on behalf of Company will qualify as Capital Investment. The Capital Investment must be in addition to the capital improvements at the Facility as of DATE. The total expected capital expenditure of $VALUE is referred to in this Agreement as the “Capital Investment.” “Maintain” means that the New Jobs will continue without interruption from the date of creation through the Performance Date. Positions for the New Jobs will be treated as Maintained during periods in which such positions are not filled due to (i) temporary reductions in Company’s employment levels (so long as there is active recruitment for open positions), (ii) strikes, and (iii) other temporary work stoppages. “New Job” means new permanent full-time employment of an indefinite duration at the Facility for which the standard fringe benefits are provided by Company for the employee, and for which Company pays an average annual wage of at least $VALUE (W-2 wages, including without limitation, any annual Partners In Performance (“PIP”) bonus). Each New Job must require a minimum of either (i) 35 hours of an employee’s time per week for the entire normal year of Company’s operations, which “normal year” must consist of at least 48 weeks, or (ii) 1,680 hours per year. Seasonal or temporary positions, positions created when a job function is shifted from an existing location in the Commonwealth, and positions with construction contractors, vendors, suppliers and similar multiplier or spin-off jobs shall not qualify as New Jobs. The New Jobs must be in addition to the VALUE full-time jobs at the Facility as of DATE “Performance Date” means DATE. The Performance Date shall not be subject to extension. “Targets” means Company’s obligations to make Capital Investments at the Facility of at least $VALUE and to create and Maintain at least VALUE New Jobs at the Facility, all as of the Performance Date. “Virginia Code” means the Code of Virginia of 1950, as amended. SAMPLE LEDIG Performance Agreement FINAL 3 Section 2. Targets; Statutory Criteria. (a) Targets: Company will expand, equip, improve, and operate the Facility in the Locality, make Capital Investments at the Facility of at least $VALUE, and create and Maintain at least VALUE New Jobs at the Facility, all as of the Performance Date. (b) Prevailing Wage: The average annual wage of the New Jobs of at least $VALUE. Section 3. Disbursement of the LEDIG; Use of Proceeds (a) Disbursement of the LEDIG: As an inducement to Company to achieve the Targets at the Facility and provided that Company is not in default under the terms of this Agreement, the Locality will disburse $VALUE of LEDIG proceeds through the Authority to Company in one installment as follows: (i) An installment of $VALUE will be paid by the Locality to the Authority and by the Authority to Company after DATE, but no later than DATE. Section 4. Repayment Obligation. (a) Allocation of LEDIG Proceeds: For purposes of repayment under subsection (c), the LEDIG is to be allocated as 50% for Company’s Capital Investment Target $VALUE for the LEDIG) and 50% for Company’s New Jobs Target $VALUE for the LEDIG). (b) If Company has met at least 90% of both of the Targets as of the Performance Date, then and thereafter Company is no longer obligated to repay any portion of the LEDIG. If Company has not met at least 90% of either or both of its Targets as of the Performance Date, Company shall repay to the Authority that part of the LEDIG that is proportional to the Target or Targets for which there is a shortfall. For example, if at the Performance Date, the Capital Investment is only $VALUE (reflecting achievement of 75% of the Capital Investment Target), and only VALUE New Jobs have been created and Maintained (reflecting achievement of 75% of the New Jobs Target), Company shall repay to the Authority 25% of the moneys allocated to the Capital Investment Target ($VALUE of the LEDIG) and 25% of the moneys allocated to the New Jobs Target ($VALUE of the LEDIG), for a total repayment of $VALUE. Among other things, in the event that Company should at any time file any amended tax return indicating, among other things, that Company did not meet the Capital Investment and/or the New Jobs Target, Company shall be obligated to repay all or a portion of LEDIG, according to the formula set forth herein. Company’s repayment obligation hereunder shall survive the Performance Date to the extent that the Locality subsequently receives information to the effect that Company did not meet the Targets. (c) Determination of Inability to Comply: If the Locality shall determine at any time prior to the Performance Date (a “Determination Date”) that Company is unable or unwilling to SAMPLE LEDIG Performance Agreement FINAL 4 meet and Maintain its Targets by and through the Performance Date, and if the Locality or the Authority shall have promptly notified Company of such determination, Company must repay to the Authority all of the proceeds of the LEDIG previously disbursed to Company. Such a determination will be based on such circumstances as a filing by or on behalf of Company under the U.S. Bankruptcy Code, the liquidation of Company, an abandonment of the Facility by Company or other similar significant event that demonstrates that Company will be unable or is unwilling to satisfy the Targets for LEDIG. Upon such determination, then and in that event, the LEDIG proceeds previously disbursed to Company will be required to be repaid as set forth in subsection 4(d). (d) Repayment: In the event that Company is obligated to repay the LEDIG, or any portion thereof, as called for under the terms of this Agreement, Company shall pay such sums within 30 days after notification of the amount of the sums to be repaid by Company. Such determination of liability shall be made promptly as of the Performance Date or the Determination Date, or promptly upon receipt of the Progress Report, as hereinafter defined, or other information confirming lack of achievement of the Targets as of the Performance Date, whichever shall first occur. Any LEDIG repayment shall be made as follows: (i) LEDIG: Any LEDIG moneys repaid by Company to the Authority hereunder shall be repaid by the Authority to the Locality within 30 days after the repayment by Company to the Authority. In the event that Company fails or refuses to repay any of the LEDIG moneys as called for in this Section 4, such sums shall be assessed interest at the rate of 8.00% per annum until repaid in full by Company. The Locality and the Authority shall use their best efforts to recover any proceeds of the LEDIG due, including judicial proceedings for any breach of this Agreement by Company. (e) Attorney’s Fees with Respect to Repayment: In the event that Company fails to comply with the repayment obligations set forth in this Section 4, the Locality and the Authority shall be entitled to recover their reasonable attorney’s fees and costs incurred in connection with such default by Company, whether or not judicial proceedings are instituted to collect such funds. Section 5. Company Reporting. Commencing on DATE, and on July 1 of each year thereafter, Company shall provide, at Company’s expense, an annual report on the progress of achievement of the Targets (“Progress Report”). Such Progress Report shall indicate the amount of Capital Investment, the number of New Jobs, the average annual wage paid to the New Jobs (W-2 wages, including PIP), and the standard fringe benefits provided to those New Jobs through the prior December 1. Such Progress Report also shall include an affirmative statement signed by an authorized Company Officer or Director that the information provided in the report is true and correct and certifies the status of its efforts to achieve the Targets. SAMPLE LEDIG Performance Agreement FINAL 5 Company shall provide other reports on the progress of achievement of the Targets at such other times as the Locality or the Authority may reasonably require. Company hereby authorizes the Locality, including the Locality’s Commissioner of the Revenue and Treasurer, to provide for review by the Locality of Company’s real estate tax, business personal property tax and machinery and tools tax information. Such information shall be marked and considered confidential and proprietary and shall be used solely for verifying satisfaction of the Capital Investment Target. If the Locality, the Office of the Commissioner of the Revenue, or the Office of the Treasurer should require additional documentation or consents from Company to access such information, Company shall promptly provide, at Company’s expense, such additional documentation or consents as the Locality or the Authority may request. In addition to the verification data described above, the Locality and the Authority may request such other documentation or audits as may be required to properly verify Capital Investment. With each Progress Report, Company shall provide for review by the Locality copies of Company’s quarterly payroll tax filings with the Virginia Employment Commission covering the period from DATE through the Performance Date. Company will denote on those filings which of the employees met the definition of New Jobs to confirm satisfaction with the New Jobs Target. Such information shall be marked and considered confidential and proprietary and shall be used by solely for verifying satisfaction of the New Jobs Target. In addition to the verification data described above, the Locality and the Authority may request such other documentation or audits as may be required to properly verify New Jobs. Section 6. Notices. Formal notices and communications between the Parties shall be given either by (i) personal service, (ii) delivery by a reputable document delivery service that provides a receipt showing date and time of delivery, (iii) mailing utilizing a certified or first class mail postage prepaid service of the United States Postal Service that provides a receipt showing date and time of delivery, or (iv) delivery by facsimile or electronic mail (email) with transmittal confirmation and confirmation of delivery, addressed as noted below. Notices and communications personally delivered or delivered by document delivery service shall be deemed effective upon receipt. Notices and communications mailed shall be deemed effective on the second business day following deposit in the United States mail. Notices and communications delivered by facsimile or email shall be deemed effective the next business day, not less than 24 hours, following the date of transmittal and confirmation of delivery to the intended recipient. Such written notices and communications shall be addressed to: SAMPLE LEDIG Performance Agreement FINAL 6 if to Company, to: with a copy to: Company Address City, State, Zip Facsimile: __________________ Email: email Attention: Name Company Address City, State, Zip Facsimile: __________________ Email: email Attention: Name if to the Locality, to: with a copy to: County of Frederick, Virginia 107 North Kent Street Winchester, Virginia 22601 Facsimile: 540-667-0370 Email: rmichael.bollhoefer@fcva.us Attention: County Administrator County of Frederick, Virginia 107 North Kent Street, 3rd Floor Winchester, Virginia 22601 Facsimile: 540-667-0370 Email: rwillia@fcva.us Attention: County Attorney if to the Authority, to: with a copy to: Economic Development Authority of the County of Frederick, Virginia 107 North Kent Street Winchester, Virginia 22601 Facsimile: 540-722-0604 Email: Attention: Chair Economic Development Authority of the County of Frederick, Virginia 107 North Kent Street Winchester, Virginia 22601 Facsimile: 540-722-0604 Email: pbarker@yesfrederickva.com Attention: Executive Director Section 7. Miscellaneous. (a) Entire Agreement; Amendments: This Agreement constitutes the entire agreement among the parties hereto as to the LEDIG and may not be amended or modified, except in writing, signed by each of the parties hereto. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Company may not assign its rights and obligations under this Agreement without the prior written consent of the Locality and the Authority. (b) Governing Law; Venue: This Agreement is made, and is intended to be performed, in the Commonwealth of Virginia and shall be construed and enforced by the laws of the Commonwealth of Virginia. Jurisdiction and venue for any litigation regarding this Agreement shall lie in the Circuit Court of the County of Frederick, Virginia, and such litigation shall be brought only in such court. (c) Counterparts: This Agreement may be executed in one or more counterparts, each of which shall be an original, and all of which together shall be one and the same instrument. SAMPLE LEDIG Performance Agreement FINAL 7 (d) Severability: If any provision of this Agreement is determined to be unenforceable, invalid or illegal, then the enforceability, validity and legality of the remaining provisions will not in any way be affected or impaired, and such provision will be deemed to be restated to reflect the original intentions of the parties as nearly as possible in accordance with applicable law. (e) Time: Time is of the essence as to all matters set forth in this Performance Agreement. (f) Attorney Fees: Except as noted in Section 4(e), attorney’s fees shall be paid by the party incurring such fees. (g) Interpretation: Should any provision of this Agreement require judicial interpretation, it is agreed that the Court interpreting the same shall not apply the presumption that the terms of any such provision shall be more strictly construed against one party or the other by reason of the rule of construction that a document is to be construed most strictly against the party who itself or through its counsel prepared the same, it being agreed that counsel for the Locality, Company and the Authority have participated in the preparation and review of this Agreement [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] SAMPLE LEDIG Performance Agreement FINAL 8 IN WITNESS WHEREOF, the parties hereto have executed this Performance Agreement as of the date first written above. COUNTY OF FREDERICK, VIRGINIA By Name: Jos Ludwig Title: Chair, Board of Supervisors of the County of Frederick, Virginia Date: _______________________________ ECONOMIC DEVELOPMENT AUTHORITY OF THE COUNTY OF FREDERICK, VIRGINIA By Name: Rick Till Title: Chair, Economic Development Authority of the County of Frederick, Virginia Date: _______________________________ COMPANY By Name: Title: Date: _________________________ FREDERICK COUNTY, VIRGINIA BUSINESS INCENTIVE GUIDELINES April 2024 DRAFT ELIGIBLE BUSINESSES At the discretion of the Frederick County Board of Supervisors, qualified businesses that are locating to or expanding within Frederick County, Virginia may be offered incentives outlined in these guidelines. Industries within targeted sectors (list follows) will receive priority consideration. Corporate Services Advanced Manufacturing • Administrative Services • Boiler, Tank, and Shipping Containers • Management of Companies and Enterprises • Cement/Concrete • Professional, Scientific, and Technical Services • Control Instruments • Information Technology • Electric Vehicle and components • Computer Systems Design and Related Services • Lime/Gypsum • Data Processing, Hosting, and Related Services • Metals • Petroleum/Coal Finance & Insurance • Plastics • Depository Credit Intermediation • Printing • Non depository Credit Intermediation • Wood BioScience Food & Beverage • Medical and Diagnostic Laboratories • Animal • Pharmaceutical and Medicine Manufacturing • Dairy • Scientific Research and Development Services • Fruit and vegetable • Grain Page 2 of 5 Frederick County Incentive Policy DRAFT MARCH 29, 2024 QUALIFICATIONS Businesses Moving to or Expanding in Frederick County, Virginia Frederick County may elect to match the discretionary incentives offered by Virginia, including the Commonwealth Development Opportunity Fund, Agriculture & Forestry Industries Development Fund (AFID) and Virginia Investment Performance Grant), or provide cash appropriations as authorized by Virginia Code § 15.2- 953 or other applicable law. Minimum Requirements • The company should create a minimum of 5 full time new jobs over a 36 month period which provides an average annual wage for the new jobs of at least equal to the prevailing average annual wage in the locality, excluding fringe benefits. The average annual wage for Frederick County, VA as of 3rd Quarter 2003 is $57,965 . • The company must make a minimum $5 million investment in buildings, land and equipment over a 36-month period. • The company must produce “value-added agricultural or forestal products. (AFID only) • The company must commit to purchasing at least 30% of the agricultural or forestry products to which the facility is adding value will be grown within Virginia. (AFID only) • Frederick County must be competing with another jurisdiction for the company’s final location decision. • A company, in one of the targeted industries, will be given priority. Incentive Guidelines The types of incentives available to businesses moving to or expanding in Frederick County will be limited to: • Public infrastructure improvements, such as roads, sidewalks, parking facilities, etc. • Cash appropriations as authorized by Virginia Code § 15.2-953 or other applicable law. A performance agreement is executed between the County and State (if applicable) and the Company outlining the agreed-upon job creation, capital investment, and purchase of Virginia- grown agricultural or forestry products (if applicable). Public announcement of the project is coordinated with the Governor’s Office and/or the County. Frederick County Companies Expanding Within Frederick County Page 3 of 5 Frederick County Incentive Policy DRAFT MARCH 29, 2024 Frederick County may elect to match the discretionary incentives offered by Virginia, including the Commonwealth Development Opportunity Fund, Agriculture & Forestry Industries Development Fund (AFID) and Virginia Investment Performance Grant, or provide cash appropriations as authorized by Virginia Code § 15.2- 953 or other applicable law. Minimum Requirements • The company must make a minimum $2.5 million investment in buildings, land and equipment. • If full-time jobs are created by the company, they should pay a minimum entry-level wage rate per hour of at least 120% of the Federal Minimum Wage or the Virginia Minimum Wage as defined in the Virginia Minimum Wage Act § 40.1-28.8, whichever is higher, and qualifying for benefits are eligible for funding. Based on this, the full-time jobs should pay at least $ 12.00an hour. • The company must produce “value-added agricultural or forestal products. (AFID only) • The company must commit to purchasing at least 30% of the agricultural or forestry products to which the facility is adding value will be grown within Virginia. (AFID only) • Frederick County must be competing with another jurisdiction for the company’s final location decision. • A company, must be in one of the targeted industries, will be given priority. Incentive Guidelines The types of incentives available to companies expanding within Frederick County will be limited to: • Public infrastructure improvements, such as roads, sidewalks, parking facilities, etc. • A match of the Virginia Jobs Investment Program grant. • Cash appropriations as authorized by Virginia Code § 15.2-953 or other applicable law. A performance agreement is executed between the County and State (if applicable) and the Company outlining the agreed-upon job creation, capital investment, and purchase of Virginia- grown agricultural or forestry products (if applicable). Public announcement of the project is coordinated with the Governor’s Office and/or the County. Page 4 of 5 Frederick County Incentive Policy DRAFT MARCH 29, 2024 PROCESS Project Review and Audit Committee All projects requesting discretionary incentives from Frederick County are reviewed by the Project Review and Audit Committee. Committee members include the EDA Director, County Attorney, County Administrator and Deputy County Administrator. The following are the responsibilities of the committee: • Review all elements of the project • Consider strategic, competitive and financial implications • Evaluate ROI analysis • Approve proposed conditions (examples follow) for release of Local Economic Development Incentive Grant (LEDIG) o Portion of funds released upon Certificate of Occupancy issuance and/or certain number of jobs hired and/or capital investment o Per job basis as employees ramp up o Upon start of construction • Determine whether to proceed to executive session with Board of Supervisors • Approve project offer letters upon concurrence from Board of Supervisors in executive session • Conduct yearly audits of open performance agreements Performance Agreement Every project receiving a LEDIG must have a performance agreement. An example of a performance agreement is included. At a minimum, the performance agreement must contain the following: • Definition of key aspects like capital investment, new jobs, performance date and target • Process in which specific dates when grants will be distributed and how grants will be repaid, if necessary • Reporting procedure of company to targets The following individuals will review and provide comments, within 5 business days when possible, to any performance agreement • Company or Company’s counsel • EDA Director • EDA Counsel • Frederick County Attorney • Deputy County Administrator • VEDP Counsel (if applicable) • State Attorney General (if applicable) Page 5 of 5 Frederick County Incentive Policy DRAFT MARCH 29, 2024 Upon completion of review and comment by the above, the performance agreement will be additionally circulated for seven business days to the EDA Chairman, the representative of the Board of Supervisors and the Frederick County Treasurer’s Office. After which, the performance agreement will be submitted to the Board of Supervisors for final approval at least seven (7) business days prior to the next Board of Supervisors meeting at which the proposed agreement is to be considered. Final approval of the Performance Agreement is by the Frederick County Board of Supervisors and the EDA Board of Directors. DATE: March 29, 2024 TO: Board of Directors, Frederick County Economic Development Authority FROM: Patrick Barker, CEcD Executive Director CC: Jay Tibbs Deputy County Administrator RE: Target Industry Analysis Update | Value Proposition Update 2024 As the Board might recall from our Target Industry Analysis update, value propositions were created for each targeted industry segment (Corporate Services, Information Technology, Finance & Insurance, Bioscience, Advanced Manufacturing and Food & Beverage). (A value proposition refers to the value Frederick County promises to deliver to companies in each target industry sector should they choose to locate in Frederick County, which is part of Frederick County's overall marketing strategy.) Each value proposition provides a declaration of intent or a statement that introduces Frederick County’s brand to businesses and site consultants by telling them Frederick County deserves their business. This statement is intended to convey to the potential business that a particular asset(s) and/or offering(s) by Frederick County will add more value or provide a better solution than competing localities. Regular updates to the value proposition are necessary to maintain relevancy. The initial work was completed in December 2022. Chmura Economics was contracted again to compare the Frederick County MSA to 28 competing MSAs (full list provided below) on various demographic economic indicators as well as industry and occupation variables (full list is provided below) for the EDA Industry Targets. Listing of MSAs 1. Binghamton, NY MSA 2. Blacksburg-Christiansburg-Radford, VA MSA 3. Chambersburg, PA MSA 4. Charleston-North Charleston, SC MSA 5. Charlotte-Concord-Gastonia, NC-SC MSA 6. Cincinnati, OH-KY-IN MSA 7. Columbia, SC MSA 8. Columbus, OH MSA Page 2 of 10 Target Industry Analysis Update | Value Proposition Update 2024 9. Dayton-Kettering-Beavercreek, OH MSA 10. Fayetteville, NC MSA 11. Florence, SC MSA 12. Hagerstown-Martinsburg, MD-WV MSA 13. Harrisburg-Carlisle, PA MSA 14. Harrisonburg, VA MSA 15. Kingsport-Bristol, TN-VA MSA 16. Mansfield, OH MSA 17. Raleigh-Cary, NC MSA 18. Richmond, VA MSA 19. Roanoke, VA MSA 20. Scranton--Wilkes-Barre, PA MSA 21. Springfield, OH MSA 22. Staunton-Stuarts Draft, VA MSA 23. Sumter, SC MSA 24. Syracuse, NY MSA 25. Washington-Arlington-Alexandria, DC-VA-MD-WV MSA 26. Watertown-Fort Drum, NY MSA 27. Winchester, VA-WV MSA 28. Winston-Salem, NC MSA Comparison Data Demographic Population Population Growth 2010 – 2022 Forecasted Population Growth 2022-2032 Population ages 25-44 Forecasted Population ages 25-44 Education Attainment (Ages 25-64) No High School Degree High School Degree Some Collage, No Degree Associates’ Degree Bachelor’s Degree Postgraduate Degree Page 3 of 10 Target Industry Analysis Update | Value Proposition Update 2024 Labor Labor Force Participation Rate Veterans age (18-64) Veterans Labor Force Participation Rate Cost of labor (All industries) Unemployment Rate Net Domestic Migration Rate Industry (All and Industry Targets) Empl (4Q Mov Avg) Avg Ann Wages per Worker LQ (4Q Mov Avg) 10 Year % Change in Empl 2012Q1-2022Q1 10 Year Forecast Growth Rate 2022Q1-2032Q1 Occupation (Selective occupations of Industry Targets) Empl (Place of Work) Unempl Rate LQ (4Q Mov Avg) 10 Hist Empl % Change 2012Q1-2022Q1 10 Year Forecast Growth Rate 2022Q1-2032Q1 Annual Mean Wage The following is a sample of areas where the analysis placed Winchester/Frederick County MSA in the top third of the benchmarked locations. It should be noted, Winchester/Frederick County MSA was one of the smaller MSAs analyzed. It is the 7th smallest as far as population and employment totals. • Net domestic migration rate • All Industries - 10 Year Change • All Industries - 10 Year Forecast Growth Rate 2022Q1-2032Q1 • Forecast population growth ages 25-44 • Forecast population growth 2022-2032 • Labor force participation rate • Veterans Labor force participation rate Conversely, the following is a sample of areas where the analysis placed Winchester/Frederick County MSA in the bottom of the benchmarked locations • Educational Attainment, Age 25-64 - Associate's Degree • Educational Attainment, Age 25-64 - Bachelor's Degree • Information Technology Industry LQ • Medical and Clinical Laboratory Technicians - 10 Hist Empl % Change 2013Q2-2023Q2 Page 4 of 10 Target Industry Analysis Update | Value Proposition Update 2024 Utilizing this analysis, staff proposes modifying each industry target’s value proposition as shown below. Corporate Services | Value Propositions • Largest employment of Management of Companies and Enterprises in Northern Shenandoah Valley • One of the highest projected 10-year growth rates for core Corporate Services occupations (Managers, Customer Service Representatives, Accountants and Auditors, Management Analysts)* • Region’s 10-year population growth rate expected to one of the highest* • Region projected to have one of the fastest 10 year growth rates for key talent age cohort (25-44)* • Region’s labor force participation rate, particularly for veterans ages 25-44, is one of the highest* • Region’s projected to boast one of the highest 10-year net domestic migration rates* • Virginia’s education ranked No.1 by CNBC • Virginia’s high education ranked No. 2 by SmartAsset • Virginia’s Talent Accelerator Program • Virginia has the largest and most highly educated veterans workforce • Market-leading Career Pathways program is a four-tiered workforce development initiative poised to groom next-gen talent. • Virginia has one of the strongest corporate services talent pipelines in the Mid-Atlantic & Southeast • Relatively strong university and community college system compared with competitors • Areas with robust broadband speeds with planned improvements to underserved areas • Area served by three major airport hubs and general aviation airport • Strategically placed on Amtrak’s network • Within driving distance of many major cities in the Northeast and Southeast and dense, quality highway system • A pro-business climate that permits prompt building construction and rezonings for business • Moderately competitive average industry salaries among competitors • Highly competitive lease costs • Low Unemployment Insurance Tax per Employee • Lowest Workers' Compensation Employer Insurance Costs Per $100 Payroll • Competitive tax rates compared with competitor states • Virginia has No 1. Business Climate (Site Selection Magazine) • One of the highest employment concentrations* • The highest past 10-year growth rate in employment, with similar pattern projected for next 10 years* • Central position on the East Coast of the United States, with quick and easy access to all major population centers east of the Mississippi Page 5 of 10 Target Industry Analysis Update | Value Proposition Update 2024 • Within one hour of 76% of the US population's regular daily schedule • Moderately competitive or in line with cost of living in major population centers • Relatively strong primary and secondary school system • Relatively low level of violent and property crime • Moderately more healthy and active population • Forbes ranked Virginia No. 1 in the US for Quality of Life Information Technology | Value Propositions • Adjacent to one of the highest concentrations of data center workforces • One of the highest projected 10-year growth rates for core IT occupations (Software Developers, Software Quality Assurance Analysts and Testers Management Analysts, Computer Systems Analysts, Computer User Support Specialists) • Region projected to boast one on the highest 10-year net domestic migration rates* • Region’s 10-year population growth rate expected to be one of the highest* • Region projected to have one of the fastest 10 year growth rates for key talent age cohort (25-44)* • Region’s labor force participation rate, particularly for veterans ages 25-44, is one of the highest* • Adjacent to one of the highest industry employment and one of the highest level occupational employment in core IT occupations among competitors • Doorstep from 4th best Tech Talent Market in North America (Northern Virginia/DC Metro) • Tech Talent Investment Program ($ billion) • Virginia’s education ranked No.1 by CNBC • Virginia’s high education ranked No. 2 by SmartAsset • Virginia’s Talent Accelerator Program • Virginia has the largest and most highly educated veterans workforce • The highest past 10-year growth rate in employment, with similar pattern projected for next 10 years* • Adjacent to one of the largest data center markets in the world • Adjacent to the largest market for federal prime contracts in FY2018: leads market for federal IT & Telecommunications services & completely dominates market for cybersecurity services • Generally, very low risk profile for tornados, hurricanes and earthquakes and relatively moderate risk for flooding and severe winter weather • Stable economic environment and healthy public finances • Areas with robust broadband speeds with planned improvements to underserved areas • Area served by three major airport hubs and general aviation airport • Strategic East Coast location places nearby the center of the world’s densest intersection of fiber networks (2,000 plus mile of fiber) • Relatively reliable power grid and strong utility partners Page 6 of 10 Target Industry Analysis Update | Value Proposition Update 2024 • Market-leading Career Pathways program is a four-tiered workforce development initiative poised to groom next-gen talent • Virginia has one of the strongest talent pipelines in the Mid-Atl & SE • Relatively strong university and community college system compared with competitors • A pro-business climate that permits prompt building construction and rezonings for business • Moderately competitive industry wages and median occupational wages across core occupations • Lower cost real estate than NOVA • Competitive tax rates compared with data center competitor states • Virginia has No 1. Business Climate (Site Selection Magazine) • Retail sales and use tax exemption for qualifying computer equipment purchased by data centers that meet statutory investment and employment requirements • Moderately competitive or in line with cost of living in major population centers • Relatively strong primary and secondary school system • Relatively low level of violent and property crime • Moderately more healthy and active population • Forbes ranked Virginia No. 1 in the US for Quality of Life • Electricity production is relatively carbon intensive compared with competitors and mediocre ranking on energy efficiency Finance and Insurance | Value Propositions • One of the highest projected 10-year growth rates for core Corporate Services occupations (Managers, Customer Service Representatives, Accountants and Auditors, Management Analysts Loan Interviewers and Clerks, Loan Officers) • Region’s 10-year population growth rate expected to be one of the highest • Region projected to boast one on the highest 10-year net domestic migration rates* • Virginia’s education ranked No.1 by CNBC • Virginia’s high education ranked No. 2 by SmartAsset • Virginia’s Talent Accelerator Program • Virginia has the largest and most highly educated veterans workforce • Market-leading Career Pathways program is a four-tiered workforce development initiative poised to groom next-gen talent • Virginia has one of the strongest talent pipelines in the Mid-Atl & SE • Relatively strong university and community college system compared with competitor • Areas with robust broadband speeds with planned improvements to underserved areas • Area served by three major airport hubs and general aviation airport • Strategically placed on Amtrak’s network Page 7 of 10 Target Industry Analysis Update | Value Proposition Update 2024 • Within driving distance of many major cities in the Northeast and Southeast and dense, quality highway system • A pro-business climate that permits prompt building construction and rezonings for business • Moderately competitive average industry salaries for finance and insurance among competitors • Highly competitive lease costs • Low Unemployment Insurance Tax per Employee • Lowest Workers' Compensation Employer Insurance Costs Per $100 Payroll • Competitive tax rates compared with competitor states • Virginia has No 1. Business Climate (Site Selection Magazine) • High concentration of employment in the area of finance and insurance • One of the highest employment concentrations* • The highest past 10-year growth rate in employment, with similar pattern projected for next 10 years* • Central position on the East Coast of the United States, with quick and easy access to all major population centers east of the Mississippi • Within one hour of 76% of the US population's regular daily schedule • Moderately competitive or in line with cost of living in major population centers • Relatively strong primary and secondary school system • Relatively low level of violent and property crime • Moderately more healthy and active population • Forbes ranked Virginia No. 1 in the US for Quality of Life BioScience | Value Propositions • Region’s 10-year population growth rate expected to be one of the highest • Region’s projected to boast one on the highest 10-year net domestic migration rates*Virginia’s education ranked No.1 by CNBC • Virginia’s high education ranked No. 2 by SmartAsset • Virginia’s Talent Accelerator Program • Virginia has the largest and most highly educated veterans workforce • Market-leading Career Pathways program is a four-tiered workforce development initiative poised to groom next-gen talent • Virginia has one of the strongest talent pipelines in the Mid- Atl & SE • Relatively strong university and community college system compared with competitor • The highest past 10-year growth rate in employment, with similar pattern projected for next 10 years* • Strategically positioned to provide access to lucrative domestic markets • Proximity to Federal decision-makers and regulators • Central position on the East Coast of the United States, with quick and easy access to all major population centers east of the Mississippi • Within one hour of 76% of the US population's regular daily schedule Page 8 of 10 Target Industry Analysis Update | Value Proposition Update 2024 • Area served by three major airport hubs and general aviation airport • Strategically placed on Amtrak’s network • Within driving distance of many major cities in the Northeast and Southeast and dense, quality highway system • A pro-business climate that permits prompt building construction and rezonings for business • Moderately competitive average industry salaries among competitors • Low Unemployment Insurance Tax per Employee • Lowest Workers' Compensation Employer Insurance Costs Per $100 Payroll • Competitive tax rates compared with competitor states • Moderately competitive or in line with cost of living in major population centers • Relatively strong primary and secondary school system • Relatively low level of violent and property crime • Moderately more healthy and active population • Forbes ranked Virginia No. 1 in the US for Quality of Life Advanced Manufacturing | Value Propositions • One of the highest projected 10-year growth rates for core Advanced Manufacturing occupations (Packaging and Filling Machine Operators and Tenders, Chemical Equipment Operators and Tenders, Electrical, Electronic, and Electromechanical Equipment Assemblers, Team Assemblers, Welders, Cutters, Solderers, and Brazers, Mixing and Blending Machine Setters, Operators, and Tenders) • Region’s 10-year population growth rate expected to be one of the highest • Region projected to boast one on the highest 10-year net domestic migration rates* • Virginia’s education ranked No.1 by CNBC • Virginia’s high education ranked No. 2 by SmartAsset • Virginia’s Talent Accelerator Program • Better access to other potential talent pools, including veterans population and high school graduates • Market-leading Career Pathways program is a four-tiered workforce development initiative poised to groom next-gen talent • Active CTE program among its competitors • Virginia has one of the strongest talent pipelines in the Mid- Atl & SE • Relatively strong university and community college system compared with competitors • One of the highest concentrations in several core Advanced Manufacturing occupations* • Home to large Federal/Military presence and proximity to nation’s capital Page 9 of 10 Target Industry Analysis Update | Value Proposition Update 2024 • Central position on the East Coast of the United States, with quick and easy access to all major population centers east of the Mississippi • Within one hour of 76% of the US population's regular daily schedule • Large and dense interstate and highway system • Two railways providing service • Virginia Inland Port in proximity • Area served by three major airport hubs and general aviation airport • Strategically placed on Amtrak’s network • Within driving distance of many major cities in the Northeast and Southeast and dense, quality highway system • 50 plus major packaging and bottling establishments in Virginia • A pro-business climate that permits prompt building construction and rezonings for business • Moderately competitive average industry salaries among competitors • Low Unemployment Insurance Tax per Employee • Lowest Workers' Compensation Employer Insurance Costs Per $100 Payroll • Competitive tax rates compared with competitor states • Virginia has No 1. Business Climate (Site Selection Magazine) • One of the oldest right-to-work states and low level of unionization • Competitive with low-regulation States in Southeast • Ranks consistently higher than its primary competitors in national business and regulatory environment rankings Food and Beverage | Value Propositions • One of the highest projected 10-year growth rates for core Food and Beverage occupations (Packaging and Filling Machine Operators and Tenders, Food Batchmakers, Team Assemblers, Mixing and Blending Machine Setters, Operators, and Tenders) • Region’s 10-year population growth rate expected to be one of the highest • Region projected to boast one on the highest 10-year net domestic migration rates* • Virginia’s education ranked No.1 by CNBC • Virginia’s high education ranked No. 2 by SmartAsset • Virginia’s Talent Accelerator Program • Better access to other potential talent pools, including veteran population and high school graduates • Market-leading Career Pathways program is a four-tiered workforce development initiative poised to groom next-gen talent • Active CTE program among its competitors • Virginia has one of the strongest talent pipelines in the Mid Atl & SE • Relatively strong university and community college system compared with competitors Page 10 of 10 Target Industry Analysis Update | Value Proposition Update 2024 • One of the highest concentrations in several core Food and Beverage occupations* • One of the highest employment concentrations* • Central position on the East Coast of the United States, with quick and easy access to all major population centers east of the Mississippi • Within one hour of 76% of the US population's regular daily schedule • Large and dense interstate and highway system • Two railways providing service • Virginia Inland Port in proximity • Area served by three major airport hubs and general aviation airport • Strategically placed on Amtrak’s network • Within driving distance of many major cities in the Northeast and Southeast and dense, quality highway system • 50 plus major packaging and bottling establishments in Virginia • A pro-business climate that permits prompt building construction and rezonings for business • Moderately competitive average industry salaries among competitors • Low Unemployment Insurance Tax per Employee • Lowest Workers' Compensation Employer Insurance Costs Per $100 of Payroll • Competitive tax rates compared with competitor states • Virginia has No 1. Business Climate (Site Selection Magazine) DATE: March 29, 2024 TO: Board of Directors, Frederick County Economic Development Authority FROM: Patrick Barker, CEcD Executive Director CC: Jay Tibbs Deputy County Administrator RE: Project Announcements of Targeted Industries The following is a summary of announcements for the past 12 months from across the United States, of the EDA Targeted Industries . This review aligns with the action step within the Business Attraction goal of the EDA Strategy. Target Number Average Capital Investment Average New Jobs Average Acreage Top States Advanced Manuf. 98 $106M 145 27 OH, NC BioScience 12 $59M 148 20 OH Corporate Services 80 $66M 152 20 TX, NY Finance/Insurance 5 ID ID ID ID Food & Bev 22 $92M 204 33 GA, OH, PA Info Tech 29 $198M 12 65 GA, VA Source: Conway Analytics, New project announcements last 12 months, USA only ID = Insufficient data The following provides some commentary to the reasons for the states with the highest number of announcements. Note, VEDP provided some assistance in this commentary. Overall Within the Area Development Top States for Doing Business Ranking, Georgia outpaces Virginia in Regulatory Environment (#1 GA, #2 VA) and overall Cost of Doing Business (#1 GA, NR* VA). Ohio does well in Competitive Labor Market (#3 OH, #7 VA) and Infrastructure (#4 OH, #6 VA). North Carolina does well in having a Competitive Labor Market as well (#2 NC, #7 VA), as well as Corporate Tax Structure (#2 NC, NR* VA) and Favorable Regulatory Environment (#5 NC, NR* VA). *NR indicates no ranking, as Virginia was outside of the top 10 Below, using Virginia’s Competitive Analysis Tool, are key areas in which the identified states generally outpaced others and Virginia within the respective industry. Advanced Materials • Ohio strengths in talent availability and competition, workforce development with career and technical education, as well as market and cluster presence o Additionally, utilities and building costs are lower than average • North Carolina strengths in workforce development with their talent pipelines, as well as low costs of doing business including taxes, utilities, and building costs o North Carolina also has a very favorable regulatory environment related to labor, and high economic stability Life Sciences • Ohio strengths in their supply chain, market proximity, and specialized R&D base o Additionally, infrastructure and cost of doing business may be playing a role Corporate Service • Texas strengths in workforce availability, market and cluster presence, and regulatory environment • New York strengths in workforce availability and workforce development, in rail and broadband connectivity, as well as market and cluster presence Food and Beverage • Georgia has many strengths in this industry, particularly talent availability, cluster presence, talent pipeline, and regulatory environment • Ohio strengths in low cost of doing business and utilities, good workforce development, and better-than-average infrastructure and connectivity • Pennsylvania strengths in great talent availability and market proximity, as well as great infrastructure and connectivity Technology • Georgia strengths in talent availability, market and cluster presence, and regulatory environment DATE: March 29, 2024 TO: Board of Directors, Frederick County Economic Development Authority FROM: Patrick Barker, CEcD Executive Director CC: Jay Tibbs Deputy County Administrator RE: Grocery Store Attraction | Update Staff is providing a regular update on its progress regarding efforts to encourage grocery stores to locate in Frederick County. GROCERY STORES  Aldi  Amazon Fresh  Harris Teeter  Kroger  MOM's Organic Market  Publix  Safeway  Sprouts Farmers Market  Trader Joe’s  Wegmans  Weis Markets  Whole Foods CONNECTION STATUS  Successful | 8  Awaiting | 4 For those with whom we have connected, they receive an update quarterly on relevant information with a soft ask for an update. Those still awaiting connection receive a follow-up email and two phone calls each month. Calls typically placed on Wednesday and Thursday between 4:00 pm – 5:00 pm. These times are considered best practices. INTEREST LEVEL  Moderate (12-24 months) | 3 o Actively looking for locations in a larger geographic area, which includes Frederick County with 2 having recent interest  Long Term (Greater than 24 months) | 3 o No current plans to enter the market, but our area is part of their long-term market consideration  None | 2