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Smyth County approves updated TROF agreement to channel $53,000 repayment from Smyth Machine to Tobacco Commission
Summary
Smyth County approved an updated 2026 TROF agreement that establishes clawback procedures requiring Smyth Machine to repay $53,000 to the county (paid in three installments), which the county will then refund to the Tobacco Commission.
The Smyth County Board voted Feb. 12 to approve an updated agreement governing a 2018 TROF (Tobacco Region Opportunity Fund) grant to Smyth Machine that includes clawback procedures requiring the company to repay $53,000.
Director of Community and Economic Development Kendra Hayden told the Board Smyth Machine received upfront grant funds for expansion under the 2018 agreement but failed to meet all required metrics; the Tobacco Commission has requested repayment of $53,000. Under the approved 2026 agreement, Smyth Machine will repay that amount to Smyth County in three installments; the county will then refund the funds to the Tobacco Commission. North Fork District Supervisor Rick Billings asked how the county would proceed if the company did not make the payments; Hayden said the county would first refund the Tobacco Commission and then seek repayment from Smyth Machine, and County Administrator Shawn Utt noted the Tobacco Commission no longer provides upfront grants for comparable projects, reducing the likelihood of similar issues in future grants.
The Board unanimously approved the updated agreement and authorized the County Administrator to execute it. The motion and vote place a formal repayment path in the event of unmet performance metrics but do not record any agreed-upon collection remedies beyond seeking repayment through county channels.
