2016 Annual Report - Montgomery County, VA Economic Development

CONTENTS

Brian Hamilton, CEcD Economic Development Director hamiltonbt@montgomerycountyva.gov

Brenda Rigney, CEcD Project Manager, Existing Industry rigneybb@montgomerycountyva.gov

Ashlyn Shrewsbury Project Manager, Marketing and Business Development shrewsburyaj@montgomerycountyva.gov

Kim Hall Economic Development Assistant hallkm@montgomerycountyva.gov

INTRODUCTION

To the Honorable Chair, Members of the Board of Supervisors and the Citizens of Montgomery County:

The Montgomery County, VA, Department of Economic Development (MCDED) prepared this annual report to showcase the organization’s activities and accomplishments during 2016. The report is also intended to be an economic development marketing tool for Montgomery County, and features the achievements of local companies, entrepreneurs and other key allies.

The Department of Economic Development is dedicated to improving the quality of life throughout Montgomery County –including the incorporated towns of Blacksburg and Christiansburg – by encouraging positive economic growth that:

• CREATES meaningful career opportunities

• EXPANDS the commercial tax base to support the delivery of vital public services

• PROTECTS our enviable quality of life

Our department accomplishes its mission through strategies that support the startup, retention and expansion of companies already in Montgomery County as well as the attraction of new targeted industries to the community.

2016 BY THE NUMBERS

9 PROJECTS... The Department actively supported seven company expansion projects where investment and jobs were added, and existing jobs were retrained through the Virginia Jobs Investment Program. The Department also supported two companies locating in Montgomery County.

$8.6 MILLION... Investment made or announced by projects supported by the Department exceeds $8.6 million.

797 JOBS... Companies assisted by the Department will create 286 new jobs and retrain 511 existing jobs through the Virginia Jobs Investment Program.

56 BRE VISITS... The Department visited 39 local companies through its Business Retention & Expansion Program (BRE). Fourteen of the companies required follow up support services, and the Department made 56 total visits.

23 PROSPECT VISITS... The Department generated 43 new prospect leads, responded to 36 requests for information, and participated in 23 prospect visits by new businesses.

131,000 SF... The Economic Development Authority leased 131,000 square-feet of space to three companies. The Department negotiated three new leases in 2014; all three companies took occupancy in 2015, and were ongoing in 2016. The three leases are worth $8.3 million in total revenues.

16,033 WEBSITE VISITS... YesMontgomeryVA.org was visited 16,033 times from 100 countries around the world and from all of the states. The Department sent out five news releases via email marketing and social media that were viewed 1,575 times.

Image Credit: Virginia Tech

Aerial view of the Virginia Tech Corporate Research Center

2009-2016 PROJECT SUMMARY

Since 2009, the Department has made 43 total announcements from new and existing businessses. These announcements have resulted in 2,034 total new jobs, with over $105 million in total investment.

TOTAL INVESTMENT BY YEAR ($)

COMMUNITY ACCOLADES

#1 Best Southern College Town, Garden and Gun Magazine

Among all southern college towns, Blacksburg ranked No. 1.

#3 Happiest City in Virginia, OnlyInYourState.com

Christiansburg was ranked No. 3 Happiest City in Virginia.

#7 Best City for Singles, FindTheHome

Blacksburg ranked No. 7 nationally as a Best City for Singles.

Best Place to Raise Kids, Forbes

Blacksburg was named a Best Place in the U.S. to Raise Kids.

Best Tech Hub, Southern Business & Development

Blacksburg was named a Best Tech Hub in Virginia.

Best Community for Music Education, NAMM Foundation

Montgomery County Public Schools were designated a Best Community for Music for the ninth consecutive year.

Top 25 Best Place to Retire, BusinessWeek

Blacksburg and Christiansburg both ranked in the Top 25 Best Places to Retire in America.

Top 100 Leading Locations, Area Development Magazine

Blacksburg -Christiansburg-Radford MSA was named in the Top 100 Leading Locations. The Blacksburg MSA ranked 30th in the country and 12th out of mid-sized metros. The Blacksburg MSA also ranked 4th in the nation for its Prime Workforce, leading it to a higher rank in Leading Locations.

Announcements Since 2009 (43)

Jobs Added Since 2009 (2,034)

Investment ($) Since 2009 ($105,162,250)

New Investment - 20% Expansion Investment - 80%

Over 4,000 people attended the September Food Truck Rodeo, hosted by Downtown Christiansburg, Inc. The event featured live music, family friendly activities, 14 food vendors, and several breweries/wineries.

Image Credit: Downtown Christiansburg, Inc.

BUSINESS RETENTION & EXPANSION

BUSINESS RETENTION & EXPANSION PROGRAM

The Economic Development Department uses its Business Retention & Expansion (BRE) program as a way of maintaining good relationships and communication with companies in Montgomery County. Department staff arrange face-to-face BRE visits with local businesses to identify and help solve any problems or barriers that may be undermining their overall success and growth in our community.

In 2016, the Department visited 39 companies, 14 of which required follow up information or services, and conducted a total of 56 visits. Seven companies supported through the program announced or completed expansion or relocation projects that will result in $8.625 million in total new private investment and 286 new jobs as well as retraining 511 jobs through the Virginia Jobs Investment Program.

VIRGINIA JOBS INVESTMENT PROGRAM HELPS MANY COUNTY BUSINESSES

The Virginia Economic Development Partnership (VEDP) Virginia Jobs Investment Program (VJIP) provides services and funding to companies that are creating new jobs or experiencing a technical change requiring them to retrain current employees. Through this program, VJIP provides business development incentives to help reduce the human resources development costs for new and expanding companies, which ultimately supports economic development.

Montgomery County businesses have greatly benefited from the VJIP program. As long as companies meet the requirements laid out by the VEDP, they can qualify to receive a certain amount of incentive based on the number of new jobs they create or the number of current jobs they retrain. Just in 2016, Montgomery County businesses have made a total of $8.625 million in total new private investment. They have also hired a total of 286 new jobs and retrained a total of 511 jobs through the VJIP Program.

INMOTION ANNOUNCES EXPANSION IN ITS CURRENT FACILITY

InMotion announced its plans for an expansion at its current facility in the Blacksburg Industrial Park. Currently located in the County-owned Technology Manufacturing Building, InMotion is an Italian maker of parts for electric motors and builds parts for electric and hybrid vehicles, lift trucks, personal mobility devices, and refrigeration systems. After acquiring a local division of a Radford company, InMotion opened its first US manufacturing facility in Montgomery County in 2015.

InMotion’s expansion was announced as a $3.5 million investment and will allow the company to add 70 new jobs. As part of this expansion, InMotion plans to add two new product lines in its current facility.

The company leases its space from the Economic Development Authority of Montgomery County, where it currently leases approximately 60,000 square feet of office and manufacturing space. InMotion shares the Technology Manufacturing Building with Luna Innovations, which leases the other 41,900 square feet of space. InMotion is currently in a 7 year lease contract with the EDA, and just completed year 2 of the lease.

TORC ROBOTICS ANNOUNCES INTERIOR EXPANSION TO ITS FACILITY

On December 14, 2016, TORC Robotics, a leader in robotics autonomous vehicle solutions, announced it would complete an interior upfit of an existing warehouse space to provide more room for offices and employee expansion.

The $200,000 interior upfit will include approximately 3,000 square feet of space that will house new restrooms, a conference room, a team room, and new offices for twenty new employees. TORC currently leases 20,700 square feet in its facility in Phase V of the Blacksburg Industrial Park.

“Montgomery County is proud that TORC has chosen to continue its success here as a pioneer of unmanned systems, vehicle automation and robotics,” said Chris Tuck, Chair of the Montgomery County Board of Supervisors. “TORC is developing the most advanced autonomous systems on the market in its state-of-the-art facility.”

Existing Industry, Polymer Solutions, located in the County’s Falling Branch Corporate Park.

BUSINESS ATTRACTION & MARKETING

PROSPECT ACTIVITY

In 2016, the Department and its allies generated 43 prospect leads. Thirty-six of the leads required follow- up information (sites and buildings, community data, etc.) and 23 resulted in community visits by the prospects. At year end, 14 others were still actively considering projects in Montgomery County, and two were successfully located.

Prospect by Industry, 2016 (43)

MARKETING AND BUSINESS DEVELOPMENT

The Department actively markets Montgomery County to prospective businesses and site consultants at industry trade shows. The goal of these efforts is to develop leads on new projects that may have an interest in locating in our community.

In 2016, Economic Development staff marketed Montgomery County at several industry trade shows, including:

AUVSI Exponential Trade Show

AUVSI Exponential is where the largest community of leaders in drones, intelligent robotics and unmanned systems come together to shape the future of the unmanned industry. AUVSI showcases unmanned systems in all fields of air, ground, and maritime. This trade show allowed the Department to meet and interract with the people and businesses who shape the industry. This year’s Exponential Trade Show was held in New Orleans.

CoreNet Global Fall Summit

Food/Bev Processing - 12% IT/Software Dev. - 12%

Retail Trade - 9% Manufacturing - 33%

Warehouse/Distribution - 5% Other - 2%

Life/Bio Sciences - 12% Defense & Security - 7%

Undisclosed - 3% Research & Development - 5%

Source of Leads, 2016

CoreNet Global is the world’s leading association and summit for corporate real estate and workplace professionals and service providers. The Department attended this event with allies from the New River Valley Economic Development Alliance and the Virginia Economic Development Partnership. CoreNet allowed the Department to raise visibility about Montgomery County being a great place to live and do business by meeting with influential site selectors and commercial real estate executives. This year’s Fall Summit was held in Philadelphia.

ALLY SPOTLIGHT: NEW RIVER VALLEY ECONOMIC DEVELOPMENT ALLIANCE

Year-End Prospect Status, 2016

The New River Valley Economic Development Alliance is a public/private, not-for-profit organization that works closely with its allies, including Montgomery County, to attract and retain world-class jobs, investment and talent in the New River Valley of Virginia by marketing the region as a premier destination to live and do business. In 2016, the Alliance worked with Austin-based Avalanche Consulting to develop a two-year strategic plan to ensure that the organization is reflecting best practices for one of the most dynamic regions in the county.

Two of the key initiatives in the strategic plan included - 1) developing a targeted industry strategy that supports the growth and competitiveness of vital sectors in the NRV, and 2) a full-scale regional branding initiative. The Alliance teamed up with the Virginia Tech Office of Economic Development in 2016 to develop a targeted industry study. This study, which will be finished in early 2017, will provide recommendations on which specific industry sectors the organization and its allies should focus their efforts on supporting.

Building on this targeted industry study, the Alliance is also launching a comprehensive New River Valley branding initiative in January 2017. In December, Eddy Communications was chosen to lead this rebranding initiative, and the Alliance looks forward to unveiling its new regional brand, as well as a new website, in 2017.

Image Credit: NRV Alliance

The Department shows off Montgomery County’s assets to VEDP during a Familiarization Tour.

Communications & Outreach Image Credit:

Roanoke-Blacksburg Technology

DEPARTMENT FEATURED IN ROANOKE BUSINESS MAGAZINE

In December, Roanoke Business magazine profiled Montgomery County and highlighted our outstanding business climate. The Economic Development Department also ran an ad in this issue of Roanoke Business to also show all that Montgomery County has to offer.

This ad showcased Montgomery County as:

• a progressive community

• a technology driven economy

• a county surrounded by exceptional outdoor beauty

SPONSORED EVENTS

Dr. Joe Meredith, President of the Virginia Tech Corporate Research Center poses for a picture after receiving his Technology Hall of Fame Award.

COMMUNICATIONS & OUTREACH

COUNTY PRESENTS RISING STAR AWARD AT TECHNITE

In April, the Roanoke-Blacksburg Technology Council (RBTC) hosted the 2016 TechNite Awards Banquet at the Hotel Roanoke. Seven hundred area leaders in business and innovation gathered together to celebrate the growing technology community in the New River and Roanoke Valleys. The evening was highlighted with an awards ceremony.

Montgomery County was well represented with a total of 28 nominations within the six award categories including Educator (2), Entrepreneur (8), Innovator (7), People’s Choice (2), Regional Leadership (5), and Rising Star (4). The RBTC also included awards for the Technology Hall of Fame and the RUBY Award this year. Seven of the eight awards presented during the ceremony went to nominees from the County, including the Rising Star Award and the Technology Hall of Fame Award.

The Economic Development Department sponsored the 2016 TechNite Awards Banquet to express Montgomery County’s appreciation for the economic impact the regional technology sector has on our community. The Department also sponsored the Rising Star Award.

Award Winners from Montgomery County

Nanci Hardwick, Aeroprobe

Regional Leadership

Marty Muscatello, Foxguard/Qualtrax

STEM Educator

Dr. Nancy Boerth, Auburn Middle School Innovator

Synthonics, Inc Technology Hall of Fame

Dr. Joe Meredith, VT CRC

Rising Star

Industrial Biodynamics

People’s Choice Follow My Vote

Events Sponsored:

• Montgomery County Chamber of Commerce Golf Tournament and Annual Banquet

• Roanoke-Blacksburg Technology Council TechNite Awards Banquet and Fall Gala

• VEDP: Global Brand Analysis, Translations & Interpreting

YESMONTGOMERYVA.ORG TOPS 16,000 VISITS

Visitors 1

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REAL ESTATE & INFRASTRUCTURE

NEW COMMERCIAL REAL ESTATE PROJECTS BRING BIG NAMES TO THE COUNTY

Three major commercial real estate projects broke ground or were completed in 2016, including:

• University Crossroads (Blacksburg) - A local developer purchased the 6.7 acre property at the corner of Main Street and University City Blvd. to redevelop into 40,000 square feet of retail space and two sixstory hotels. The retail space includes big names, such as CVS, McAllister’s Deli, and Tropical Smoothie Cafe.

• Matt Hagan Outdoors (Blacksburg) - Matt Hagan Outdoors opened its second retail location in the New River Valley and its first in Montogmery County, at the First & Main Shopping Center. This location will grow the Rocky Boots brand, along with other outdoor essentials.

• PetCo (Christiansburg) - PetCo, a pet specialty retailer, took over the 13,000 square foot retail space previously occupied by Rugged Warehouse at the Spradlin Farm shopping center.

NEW RESIDENTIAL DEVELOPMENT UNDER STUDY IN BLACKSBURG

• Old Price’s Fork Elementary School Redevelopment - The former elementary school has been sold to a developer who plans to convert much of the building into apartments designed for elderly residents. This space will serve as a mixed-use development, which will also house a community kitchen and restaurant. This development received a $500,000 grant from the Appalachian Regional Commission in hopes of spurring economic development, and the state awarded $2.5 million towards the project. The 32-apartment senior housing portion of the project will occupy 17,000 square feet of the school, while the rest of the development will occupy 7,000 square feet. Most of 2016 was used for planning of the project, with construction slated to begin in 2017.

$67.9 MILLION IN ROAD PROJECTS UNDERWAY

In 2016, $67.9 million in road projects were either allocated or under construction. Two major projects under construction included:

• Elliston/Ironto Connector (Eastern Montgomery) - Construction of this $21.2 million project began in spring 2014. Two miles of Route 603 (North Fork Road) in Montgomery County will be reconstructed to improve safety and traffic flow. The project will provide a better connection between U.S. Route 11/460 (Elliston) and Interstate 81 at exit 128 (Ironto). The road was closed to traffic from April 2015 to March 2016. Work on this project was finished in late spring 2016.

• Southgate Connector (Blacksburg) - In 2014, VDOT allocated $46.7 million to replace the signalized intersection at U.S. Route 460 and Southgate Drive at the entrance to Virginia Tech with a diverging diamond interchange. This new interchange will eliminate one of the last two at-grade intersections on the Blacksburg Bypass section of Route 460. In Spring 2015, this project officially broke ground and began construction. Construction continued in 2016 and the Southgate Connector is expected to be finished in December 2019.

Image Credit: Collegiate Times (Shivon Dosky)

Proposed Diverging Diamond Interchange Southgate Connector

Project Area for the Elliston/Ironto Connector in Eastern Montgomery

Old Price’s Fork Elementary School Rendering

Rendering of University Crossroads shows new retail and hotel space.

Old Price’s Fork Elementary School

HOSPITALITY & TOURISM

TOURISM SPENDING TOPS $139.5 M

In September 2016, the Virginia Tourism Corporation released its 2015 report on the Economic Impact of Domestic Travel on Virginia and Localities. The report, prepared by the U.S. Travel Association, examined tourism spending in Virginia by U.S. visitors traveling 50 miles or more away from home.

BOARDS & COMMISSIONS

The Economic Development Department provides administrative support to the following entities.

ECONOMIC DEVELOPMENT AUTHORITY OF MONTGOMERY COUNTY, VA

The Economic Development Authority was created in 1970 by the Montgomery County Board of Supervisors. The EDA has the authority to issue industrial development bonds as well as acquire, lease and/or sell real and personal property. The EDA meets the third Tuesday of every month. The Department provides staff support to the EDA.

EDA DIRECTORS

Tommy Loflin – Chair

Doug Winstead – Vice Chair

John Phillips

James Taylor III

Ray Tuck

John Tutle

Eric Johnsen

STAFF SUPPORT

MONTGOMERY REGIONAL ECONOMIC DEVELOPMENT COUNCIL

The Montgomery Regional Economic Development Commission (EDC) was created in 1982 by a resolution of the Montgomery County Board of Supervisors. The EDC acts in an advisory capacity on economic development matters for the County. It meets the fourth Thursday of every month. The Department provides staff support to the EDC.

EDC DIRECTORS

Patrick Bixler

Brad Stipes

Joe Carpenter – Chair

Darrell Sheppard

Angie Covey

Krisha Chachra

Eric Johnsen

STAFF SUPPORT

Joe Meredith

Michael Miller – Vice Chair

John Overton

Shaun Rai

TOURISM SPENDING, MONTGOMERY COUNTY

According to the report, tourism spending in Montgomery County reached $139.5 million in 2015, a 2.3 percent increase over 2014. Visitor spending was estimated to have generated $8.6 million in local tax revenue in combined state and local taxes for Montgomery County and the towns of Blacksburg and Christiansburg. The report also found that the local tourism industry supported 1,367 jobs and had an annual payroll of $26.6 million.

Building on successes of the Go to Town! tourism website and interactive map, the Montgomery County/ Blacksburg/Christiansburg VA Regional Tourism Office continued to work to attract visitation, especially during the “shoulder months” of December to March. In 2015, the program was awarded a Marketing Leverage Grant from the Virginia Tourism Corporation for its “Go to Town” campaign aimed at promoting the destination to travelers on Interstate 81 and Virginia Tech Alumni.

Lisa Bleakley, Executive Director of the Montgomery County Regional Tourism Office states, “Increasingly, our promotional activities support work of the Chamber of Commerce, Economic Development Department and area merchant associations. Whether visible or not to the casual observer, tourism to Montgomery County affects nearly every sector of industry. The regional tourism program operates as the area’s branded identity and markets to increase tourism growth through longer stays, increased local spending, and repeat visits.”

Brian T. Hamilton – Secretary/Treasurer

Brenda Rigney – Assistant Secretary/Treasurer

Marty McMahon – Legal Counsel

Craig Meadows – County Administrator

Angie Hill – Finance Director

MBC DEVELOPMENT CORPORATION

Brian T. Hamilton – Department Director

Brenda Rigney – Secretary

The MBC Development Corporation is a 501(c) 3 organization created in 1985 to enhance and broaden the employment base in Montgomery County by providing small business with low interest loans not available from conventional sources. Since its creation, the MBC has provided 34 small business loans totaling over $1.5 million.

COMMISSION MEMBERS

Mary Biggs

Terry Brizendine

Mayor Michael Barber

John Cusimano - Vice President

Chad Reed

Brad Denardo

Mark Hamric

Robert Parks

Michael Sutphin

Fritz Streff

Tom Via - President

STAFF SUPPORT

Brenda Rigney – Secretary/Treasurer

Marty McMahon – Legal Counsel

Image Credit: Natalie Gibbs Photography

Patrons and vendors alike came out for the 2016 Blacksburg Fork and Cork event, which is held each spring to showcase local and regional wineries, artists and restaurants.