The Halifax County Industrial Development Authority (IDA) looks back on 2014 as a year of continued improvement and advancement. The IDA looks forward to 2015 as a year with much promise. "We took our new way of operating - Brighter, Bolder, Business – and infused it throughout our organization and operations," says Matt Leonard, the IDA's Executive Director. "It is important to the success of our mission that we operate as much like a 21st century business as possible. We do this through what I refer to as our A.M.M.O. We continuously evaluate and improve our Assets, Message, Mission and Organization." The IDA has completed an organizational restructuring, comprehensive Strategic Plan, and refined its targeted Marketing Plan. "Success starts with effective planning. We've done that, and begun implementing those plans. Success requires a new proactive and collaborative approach."
The IDA rebranded its best assets for attracting new industries. "We aligned our asset logos and names, and gave them an instant sense of place in a very competitive worldwide marketplace," says Kristy Johnson, IDA Manager of Marketing & Business Development. "This provides real recognition for our prospects when it comes to both location and opportunities. They know quickly where we are, and what we can do for them." The IDA chose to use the Southern Virginia trademark on as many assets as possible. As examples, Riverstone Technology Park became Southern Virginia Technology Park (SVTP), Riverstone Energy Center became Southern Virginia Product Advancement Center (SVPAC), and Green View became Southern Virginia Advanced Manufacturing Center (SVAMC).
"We find the community particularly excited about SVAMC," Leonard says. "Many remember it when it was Daystrom Furniture and are happy to see it being readied for the future." SVAMC includes three buildings on 34 acres, the largest of which is over 330,000 square feet. "We're integrating our assets' focuses toward success. SVAMC, SVTP and SVPAC have deliberate links."
Dr. Doug Corrigan, Executive Director of SVPAC agrees. "SVPAC is available to our current and prospect companies to improve or research new products. In fact," Dr. Corrigan adds, "using our assets to meet our clients wherever they are in their business cycles is indicative of the IDA's new proactive and business-like approach to its mission." In 2014 the Halifax IDA successfully competed for a Tobacco Indemnification and Communities Revitalization Commission (TIRC) Research & Development (R&D) grant that will allow TMI AutoTech, a current auto maker in the county, to use the R&D assets established in Halifax County to design, test, build and coat a new automobile. "It's a very exciting project, not being done in this same way anywhere else that we know of," explains Corrigan, adding, "TMI AutoTech is not alone in its appreciation of the unique R&D offerings of Halifax County, VA. We're working with another R&D prospect that will also use the capabilities of SVPAC and C-CARE, and set up shop at SVAMC."
"This illustrates very clearly a business development pathway across our assets," adds Johnson. "Halifax IDA can attract, retain, grow and support our business partners. It's about Partnership. That's what we market."
Halifax IDA has invested over $4.5M to purchase, dry-in and begin to renovate the SVAMC facility for use by new industries. "Nearly 95% of the funding for this work has come from grants from various sources," says Marissa Jackson, IDA Finance Manager. In 2014 the IDA was awarded another TIRC grant for SVAMC Phase III, and successfully competed for a United States Community Adjustment and Improvement Program (USCAIP) grant that included a $427,500 award, and could be used as the funding match for the TIRC required match. "We used no local taxpayer dollars for grant matches on the latest phases," says Leonard. "We're very proud of that."
In fact, the IDA reduced its use of taxpayer support to its lowest since 2011. "That's a deliberate reduction on the IDA's part in partnership with the County Board of Supervisors," says Leonard. "This goes along with operating effectively." Halifax IDA earns about 82% of its annual income through its operations. "Through effective management of our properties and other assets, we self-generate the majority of our income." The $416,000 allocated by the Board of Supervisors is less than one-half of one percent (0.47%) of the County's total budget, and comes to just over one cent (1.1₵) of the current 46.0₵ real property tax rate.
Halifax IDA sees strong alignment between its mission and the Board of Supervisors, who espouse public safety and quality of life as their top priorities. There is a correlation between employment and crime, and employment and quality of life. As more people find work and earn more in a particular area, the less property crime occurs and the more disposable income is available for the amenities that people desire.
"Our mission is to add to the County's coffers and the workforce's earnings. We plan to reduce our allocation to zero eventually," Leonard explains. "That's how successful businesses operate. They responsibly reduce costs and concentrate resources on their mission through increased efficiency. We're doing that. And, as this leads to mission success it moves us toward even greater efficiencies." The decrease in County operating allocation combined with the local grants matching down to zero results in a reduction of over $260,000 in County funds used by the IDA in FY 2014-15 as compared to three years ago. Along with that, the IDA and County have worked together to shift more maintenance costs to the IDA. Three years ago the IDA budgeted $7,500 for maintenance costs with the County supporting the rest. This year the IDA will spend $42,500 of its earned income on maintenance, allowing the County to reduce its direct IDA maintenance cost to just $35,000. For FY 2016 the IDA will budget approximately $95,000 out of our earned income for maintenance of our properties to further reduce pressure on the County's budget. The IDA has also reduced staff costs and applied the funds toward marketing and business development. "Smart businesses understand that you don't stop marketing and developing business in a down economy," Leonard says. "You do exactly the opposite. You have to keep working with your best clients and looking for new ones."
"We want the citizens of Halifax County to know about this and other important aspects of their IDA," Leonard emphasizes. "They are our most important stakeholder group." In the last two years the Halifax IDA has made deliberate efforts to engage the citizenry, by presenting to various Ruritan Clubs, and other civic organizations including the Lions, Rotary, Women's Business Association, and various committees and groups associated with the Chamber of Commerce. Halifax IDA has continued interests to meet with other citizen groups. They've created reports specifically for its citizens, and want to hear from them so they can improve their operations.
Halifax IDA continues its emphasis on effective stakeholder partnerships through engagement with the Southern Virginia Higher Education Center (SVHEC), Halifax County Service Authority (HCSA), and its current industrial clients.
A ready, willing and able Workforce remains a critical component in the IDA's mission success. Training, retaining and attracting young professionals and an emerging technically skilled labor pool takes full community support. "The IDA has proudly supported SVHEC's work toward becoming a Manufacturing training Center of Excellence," says Leonard. "We were with them during the planning and certain presentations leading to award. Collaboration between the educational and business communities will make our already strong workforce even stronger."
The IDA and HCSA together have applied for another USCAIP grant for infrastructure planning and mapping. If they are successful in winning this grant, they can then create an Interactive Municipal Infrastructure Mapping Program that will allow them to know the conditions and capacities for the various parts of the water and sewer system. Quick and accurate information of this type will help the IDA answer questions from industrial prospects, and together with HCSA effectively plan for improvements and expansions that will better position the County to serve its industrial, business and residential clients. "Our strengthened partnership with the HCSA is invaluable to us," says Leonard. "We look forward to working with them even more closely as we move forward."
Halifax continues to retain many of our strongest and longest lasting employers, while new ones emerge. These include ABB, Sentara/HRHS, Huber, Presto, RTP, Aquatic, Annin, TMI, Dollar General, Clover Power Station, Pacific Headwear, MBC, Grand Springs, Faneuil and South Boston Energy. "This short list of employers shows the diversity and strength of our businesses and workforce," says Johnson. "They represent technical manufacturing, auto, wood, data and other industries. These align directly with our targeted sectors." Many of these have added taxable investments and employees over the last two years. The South Boston Energy project alone will add nearly $300,000 in new tax revenue to the County. The IDA stays in close contact with its current clients, offering support as they need it.
One of these supports comes through the state Enterprise Zone (EZ) program that incentivizes current and prospective industries to create new jobs and add capital investments. "The IDA managed County awards of over $126,000 in EZ incentives in 2014," says Marissa Jackson, the Finance Manager. The IDA has re-evaluated and re-deployed its EZ program to increase its size and reach geographically, and to coordinate incentive programs with the Towns of South Boston and Halifax. Like all other aspects of its new way of operating, the EZ program is more proactive and collaborative. "Geographically, the EZ now includes Downtown Halifax, the Burlington site, and Huber," says Leonard. "This allows us to better market available sites to new prospects, and offer to some of the County's most loyal businesses the opportunity to participate in the program."
The Halifax Industrial Development Authority is leaning forward into the new year, leaner and stronger than it has in previous years. "We've spent the last couple years reworking our organization and operations to better meet our mission," Leonard summarizes. "Our A.M.M.O. is as good as it can be given the tough economic times, and we plan to make the most of what we have to meet our mission."