Tax credits helps Henry County move forward on advanced manufacturing training facility
Henry County, in partnership with the Martinsville-Henry County Economic Development Corporation (EDC), recently closed $13 million in funding to break ground on a new advanced manufacturing training facility.
Construction will begin in January on a 25,889-square-foot project that will include 10,553-square feet of office space and a 15,336-square-foot high bay. Construction is expected to take 18 months.
The county credited a New Markets Tax Credit (NMTC) transaction, completed on Dec. 8, for moving the project along. The transaction included a $5 million grant from the Harvest Foundation, as well as funding from the Tobacco Commission and the Virginia Economic Development Partnership. The groups said they leveraged these funds to generate an additional $2.7 million to help construct the Commonwealth Centre for Advanced Training (CCAT) in the county’s Commonwealth Crossing Business Centre. The money incudes funds for a water tank and sewer lift station.
“Without both the Harvest Foundation Grant and the ability to leverage available funds through the use of the NMTC program, CCBC would have remained only a business center promising to support new companies once they complete site selection,” EDC Director Mark Heath, said in a statement. “CCAT demonstrates our commitment to those companies and to developing our workforce to meet their specific needs.”
People Incorporated Financial Services, a community development financial institution in Abingdon, provided $10 million of NMTC allocation to the project. SunTrust Community Capital LLC provided an additional $3 million of allocation and served as the tax credit investor on the transaction. Tax Advantage Group of Greenville, S.C., and the law firm of Gentry Locke based in Roanoke provided advisory services.
The CCAT center is designed to provide modern, high-tech training and office space for companies locating in the Commonwealth Crossing Business Centre during the company’s construction phase. Through curriculum established by Patrick Henry Community College, the companies will have a path from training to employment without leaving the center.
“We think the CCAT project is a game-changer for the Martinsville-Henry County area,” Tim Hall, Henry County’s administrator, said in a statement.