Smyth County approves clawback agreement requiring Smyth Machine to repay $53,000 to Tobacco Commission

The Smyth County Board of Supervisors on Feb. 12 approved an updated 2026 agreement to recover $53,000 in Tobacco Region Opportunity Fund (TROF) support provided to Smyth Machine after the company failed to meet all grant metrics.

Director of Community and Economic Development Kendra Hayden told the board the 2018 TROF grant provided upfront funding for Smyth Machine's expansion but that the company did not satisfy all performance metrics. The Tobacco Commission is requesting repayment of $53,000; the county will accept repayment and then refund the Tobacco Commission under the updated agreement, which includes clawback procedures and authorizes the County Administrator to execute the agreement.

North Fork District Supervisor Rick Billings asked how the county would proceed if Smyth Machine did not make the repayments. Hayden said Smyth County would refund the Tobacco Commission promptly and then pursue repayment from Smyth Machine; she noted the company has been involved in discussions and is aware a repayment request is forthcoming. County Administrator Shawn Utt added that the Tobacco Commission no longer provides these grants as upfront funding, which reduces the likelihood of similar issues with future projects.

The motion to approve the 2026 updated Smyth Machine TROF agreement was made by Saltville District Supervisor Roscoe Call, seconded by Royal Oak District Supervisor Courtney Widener, and passed unanimously. The board did not specify enforcement mechanisms beyond seeking repayment after refunding the Tobacco Commission.

The board did not provide a repayment schedule timeline in public discussion beyond stating the agreement contemplates repayment to the county in three amounts; the three-payment structure is part of the agreement the county approved.