Henrico authorizes performance agreement for ABB expansion; VEDP grant and local match to support $28.5M investment and 108 jobs
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Summary
The Board approved a performance agreement enabling a VEDP grant of up to $300,000 and a county 1:1 local match routed through the EDA; ABB pledged at least $28.5 million in capital investment and 108 new jobs at its Henrico facility.
Henrico County supervisors on Nov. 12 authorized the county manager to execute a performance agreement among the county, the county Economic Development Authority, the Virginia Economic Development Partnership (VEDP) and ABB Incorporated. Economic development staff said VEDP will provide a grant of up to $300,000 from the Commonwealth Development Opportunity Fund and the county will provide a required 1:1 local match through the EDA.
In return, ABB committed to invest at least $28.5 million in capital improvements at its Henrico facility and to create and maintain 108 new jobs in the county, according to county staff. Economic development staff summarized the EDA vote to support the grant at its most recent meeting and the county manager concurred.
The board approved the authorization by voice vote. Staff said the county will appropriate the VEDP funds to the EDA and then transfer the EDA grant to ABB under the terms of the agreement. The county indicated it will return with fund-appropriation paperwork and the executed agreement and that administration of the local match will be handled by the EDA.
County staff framed the measure as a standard economic development incentive structure combining state grant funds and a local match to attract capital investment and local jobs; staff asked the board to approve execution authority so paperwork and matching requirements could be completed.
Quote from staff "Pursuant to the agreement, VEDP will pay a grant in the amount up to $300,000 from the Commonwealth Development Opportunity Fund to the county. The county will appropriate these funds to the EDA which will then pay a grant to ABB. In return, ABB will make a capital investment of at least 28 and a half million dollars at its facility in Henrico and create and maintain 108 new jobs in the county," county economic development staff said.
Next steps Staff will bring back appropriation and execution documents to the board and implement the EDA grant process to transfer funds per the agreement. The board-approved authorization allows the county manager to finalize the performance agreement and associated funding steps.
