commerce park strategic planning rfp addendum 1 031511

NRV Commerce Park Strategic Planning RFP for Virginia’s First Regional Industrial Facility Authority

Addendum 1

Response to questions submitted:

1. How is this project associated with the RFP for Real Estate Brokerage and Transaction Management Services?

[Joe Morgan] Real estate brokerage and related services are being procured simultaneously with the strategic planning so that such brokerage services can augment the current marketing through the New River Valley Economic Development Alliance as well as future marketing efforts.

2. What is the budget range estimated for the strategic planning project? [Joe Morgan] $30,000 was budgeted from reserve funds of the Commerce Park Participation Committee for strategic planning; however, the final cost will be determined by the quality and extent of services procured.

3. The RFP says included are “latest Authority Annual Report and the Commerce Park Business Plan proposed in 2007 with the introduction section updated to reflect policy adopted in 2009.” Does this reference the one-page document with the header “2010 New River Valley Commerce Park Participation Committee Update?”

[Joe Morgan] Attached are the detailed documents referenced in the RFP.

Referenced documents included in this addendum:

• Virginia’s First FY2010 Annual Report • Virginia’s First FY2010 Financial Report • Commerce Park Business Plan Revised Introduction • Commerce Park Business Plan Proposal 8-6-07 • Virginia’s First Program of Work Status 12-15-10

Addendum issued March15, 2011.

Virginia’s First Regional Industrial Facility Authority 6580 Valley Center Drive, Suite 124

Radford, VA 24141 Phone (540) 639-1524 FAX (540) 831-6093

www.nrvpdc.org/vafirst.html

Bland County Lace M. (Nick) Asbury, IV Henry M. Blessing Craig County Jay Polen Giles County Chris McKlarney Richard McCoy Montgomery County Mary W. Biggs Chair Craig Meadows Pulaski County Peter M. Huber Shawn Utt Roanoke County Charlotte Moore Douglas Chittum Executive Committee Wythe County Bucky Sharitz Martha P. Umberger City of Radford Tim Cox Basil Edwards City of Roanoke Brian Townsend Bill Bestpitch City of Salem John Givens Benjamin Tripp Town of Christiansburg Randy Wingfield Barry D. Helms, Secretary Treasurer Town of Dublin Doug Irvin William H. Parker Town of Narrows Clayton Davis Buddy Kast Town of Pearisburg Kenneth F. Vittum Vice - Chair Brad Jones Town of Pulaski Morgan Welker John Hawley, Executive Committee

ANNUAL REPORT FOR FISCAL YEAR 2009-2010 This Annual Report for the fiscal year ending June 30, 2010 (FY10) is submitted to the Virginia’s First Regional Industrial Facility Authority (VA’s 1st) member local governments pursuant to Section 15.2-6403E, 1950 Code of Virginia, as amended. VA’s 1st leadership continued through the following members of the Executive Committee: Mary Biggs of Montgomery County, Chair; Ken Vittum of Pearisburg, Vice-Chair; Barry Helms of Christiansburg, Secretary/Treasurer; Doug Chittum of Roanoke County; and John Hawley of Pulaski Town. Decisions on VA1st matters between semi-annual meetings of the Board of Directors were delegated to the Executive Committee, including advice to the Executive Director and approval of budgeted expenditures. FY10 was the first full year Joe Morgan served as Executive Director. He was assisted by New River Planning District Regional Planner Christy Straight for general administrative support and Program Administrator Janet McNew for financial matters. The attached Program of Work adopted in April 2009 continued to guide the VA’s 1st focus through FY10, and updates on the current status are included. VA1st successfully petitioned the Virginia General Assembly to modify Section 15.2-6415, 1950 Code of Virginia to allow withdrawal of member governments from VA1st, conditioned on approval of a majority of the other member governments and satisfaction of all financial commitments. The VA1st Board also declared $600,000 of accumulated funds excess and asked its membership to unanimously approve distribution of those funds to economic development projects or rebates to member governments. The New River Valley Commerce Park, VA’s 1st primary project, is described in the attached general brochure. Design and right-of-way acquisition of facilities to expand water and sewer capacity available at the Park to one million gallons per day by 2012 were substantially completed in FY10 for the Pulaski County Public Service Authority. The expansion is funded by an US Department of Commerce Economic Development Administration matching grant of over $3 million. Surplus land was reviewed for disposition to enhance the Park’s development and reduce its outstanding debt. Two boundary adjustments were completed, subject to the concurrence of lenders, to buffer the historic New Dublin Presbyterian Church and return acreage to the NRV Airport equal to that taken by the Park’s entrance road. All 11 member governments approved Amendment #2 to the Commerce Park Participation Agreement, clarifying the Park scope and Committee voting requirements. The Commerce Park continued to be led in FY 10 by an Executive Committee of: Chris McKlarney of Giles County, Chair; Basil Edwards of Radford, Vice-Chair; Shawn Utt of Pulaski County, Secretary/Treasurer; Brian Hamilton of Montgomery County; and Jay Polen of Craig County. The Park continued to be marketed through the NRV Economic Development Alliance, as noted in the attached marketing brochure. The Alliance Prospect Committee introduced five prospects to the Park in FY 10, none which matured to serious candidates. VA’s 1st continued to offer project support to Project NEEMO (Nanomaterials for Energy, Environmental and Medical Operations), the New River Valley Competitiveness Center and the NRV Wireless Authority. The Consolidated Annual Financial Report for VA’s 1st for FY09 is attached.

Introduction Background The New River Valley Commerce Park is a 1,000 acre industrial facility located in Dublin, Virginia, approximately 3.6 miles from Interstate 81. The facility is owned by 11 participating jurisdictions structured under Virginia’s First Regional Industrial Facility Authority (VFRIFA). Figure 1 illustrates the land acquired for the Park, and the improvements made, including construction of 2-miles of industrial access road. Pulaski County PSA currently serves some 100,000 gallons of water to the Park and a sewer pump station is located on the park for wastewater. Electrical service is provided by AEP. Current service readily available is 5,000 kW, with 15,000 kW available in 6 to 9 months. Transmission line extension to 138 kV is available in 18 to 24 months. Electrical upgrade to natural gas is provided by Atmos. The site has several unique characteristics that makes it an ideal industrial facility, including being adjacent to an international airport, designated a port of entry, having FTZ status, the relative size of the contiguous property available, and buffering already in place. Utility Plans The Commerce Park Participation Committee has prepared plans to provide up to 6 MGD of water and sewer to the Park. A $6 million extension from the City of Radford is currently under design, with construction planned to be complete in 2011. In addressing the utility needs of the park, the Committee has begun to evaluate its assets to determine what property could be disposed of in order to finance further development. Site Development This plan has been developed to evaluate the Park and to determine a “least cost” development plan. The Plan evaluates providing utility services and optimizes the site development configuration that can be provided by those utilities. In doing so, the development of target investments, industries and a marketing strategy, combined with a shared tax structure is established to optimize the rate of return for the investors. The overall goal of this plan and working with the participants is to “provide together what we can not otherwise provide” for the region.

NRV Commerce Park Assets and Accomplishments

New River Valley Airport Full time customs and port of entry

available at airport. Designated Foreign Trade Zone (FTZ). Acquisition of roughly 1,000 acres of

land originally envisioned for Park Graded 40-acre pad On-site water and sewer available. Electric and natural gas options are

ready. Industrial access road constructed. Flexible zoning Completion of necessary engineering

and reporting, including Geotechnical and Environmental Assessment.

Virtual building, 370,000 square feet, expandable to 761,000 square feet.

Ongoing marketing and prospect visits.

Changing Economic Condition In development of this plan, it became apparent that the economic condition has changed dramatically since the Park was originally envisioned. Today, smaller sized, more technology driven industries are able to yield high project returns. However, such high-tech companies also have a greater demand for electricity. It is also imperative in working with these industries that the site be ready for construction or that a timeline be provided of what infrastructure can be provided and when. Committee Provided Incentives In preparation of this plan, committee provided incentives were evaluated. These incentives would be what the Committee could provide to an industry and would be in addition to any other regional or state incentives. The incentives discussed in this plan offer a baseline of what could be offered, however they are not the final incentive package which would require Committee approval. In developing the minimum investment needs, it was assumed that a base incentive package that could be offered would include the land and development needs which the Committee can finance over a 7-year period. These numbers are provided as an example to work from in order to develop a final incentive package for a specific industry and its investment. Revenue Sharing Members of the New River Valley Commerce Park Participation Committee share the revenue from the Machinery and Tools tax of industries that locate at the Park in perpetuity. In addition, VFRIFA and the host community have agreed to share all other taxes for an industry seven years, with a declining share approach through fifteen years. Updated Business Plan This Business Plan recognizes the limited financial resources available to the Committee, and attempts to best utilize available and future funding to provide a marketable development strategy for the Park. In developing this plan, the Participation Committee established the following guidelines to be used: 1 million gallons per day of water capacity 1 million gallons per day of sewer capacity Maximize amount of land that is “ready to build” Develop a market-based industry focus Formation of a prospect team Develop clear and specific incentive policies Market flexible sites without competing with other facilities in the region Maximize tax revenue sharing Develop a detailed business plan addressing; target industries, marketing

strategies, utility and infrastructure development, areas available for development, tax structure, and incentives.

Evaluate assets to determine if they can be converted into cash Require NO ADDITIONAL FUNDING by localities

New River Valley Commerce Park

Business Plan

Prepared for Virginia’s First Regional Industrial Authority and the New River Valley Commerce Park Participation Committee

August 2007

Confidential Distribution or reproduction of this document is prohibited. This document is exempted from public access in accordance with the Virginia Freedom of Information Act.

Table of Contents

Introduction …………………………………………….. 3 Background 3 Utility Plan 3 Site Development 3 Revenue Sharing 4 Sale of Surplus Property ………………………………… 6 House on 5.5 Acres 6 Double Wide 7 Zoning ………………………………………………………………… 8 Commerce Park Zoning 8

Protective Covenants 8

Utilities ………………………………………………………………… 9 Summary of Infrastructure Investment 9 Water Supply 9 Sewer 9 Water/Sewer Improvements 9 Electricity 10 Natural Gas 10 Rail 10 Commerce Park Lots and Industries ……………………………… 12 Potential Industries 12 Parcel 1 16 Parcel 2 18 Parcel 3 20 Parcel 4 22 Parcel 5 24 Parcel 6 26 Parcel 7 28 Marketing Strategies ……………………………………………… 31 Marketing Focus 31 Minimum Investment and Target Industries 31 Incentives 31 Prospect Team 31

List of Attachments: Attachment 1: Pulaski County Zoning Attachment 2: Protective Covenants Attachment 3: Assumptions for Development Costs Attachment 4: AEP Letter Attachment 5: Virtual Building Presentation Attachment 6: Shared Tax Schedule

List of Figures:

Figure 1: NRV Commerce Park Land (page 5) Figure 2: Commerce Park Lots (page 13) Figure 3: Commerce Park Lots and Infrastructure Improvements (page 14) Figure 4: Commerce Park Parcel Grading Estimates (page 15)

Introduction Background The New River Valley Commerce Park is a 1,000 acre industrial facility located in Dublin, Virginia, approximately 3.6 miles from Interstate 81. The facility is owned by 11 participating jurisdictions structured under Virginia’s First Regional Industrial Facility Authority (VFRIFA). Figure 1 illustrates the land acquired for the Park, and the improvements made, including construction of 2-miles of industrial access road. Pulaski County PSA currently serves some 100,000 gallons of water to the Park and a sewer pump station is located on the park for wastewater. Electrical services, while currently limited in its transmission, is provided by AEP and gas is provided by Atmos. The site has several unique characteristics that makes it an ideal industrial facility, including being adjacent to an international airport, designated a port of entry, having FTZ status, the relative size of the contiguous property available, and buffering already in place. Utility Plans The Commerce Park Participation Committee has prepared plans to provide up to 6 MGD of water and sewer to the Park. An interim plan is in place to provide 1 MGD of each service as a short term, economical alternative. In addressing the utility needs of the park, the Committee has begun to evaluate its assets to determine what property could be disposed of in order to finance further development. This surplus property is discussed in greater detail in this report. Site Development This plan has been developed to evaluate the Park and to determine a “least cost” development plan. The Plan evaluates providing utility services and optimizes the site development configuration that can be provided by those utilities. In doing so, the development of target investments, industries and a marketing strategy, combined with a shared tax structure is established to optimize the rate of return for the investors. The overall goal of this plan and working with the participants is to “provide together what we can not otherwise provide” for the region. Changing Economic Condition In development of this plan, it became apparent that the economic condition has changed dramatically since the Park was originally envisioned. Today, smaller sized, more technology driven industries are able to yield high project returns. However, such high-tech companies also have a greater demand for electricity. It is also imperative in working with these industries that the site be ready for construction or that a timeline be provided of what infrastructure can be provided and when.

NRV Commerce Park Assets and Accomplishments

New River Valley Airport Full time customs and port of entry

available at airport. Designated Foreign Trade Zone (FTZ). Acquisition of roughly 1,000 acres of

land originally envisioned for Park Graded 40-acre pad On-site water and sewer available. Electric and natural gas options are

ready. Industrial access road constructed. Flexible zoning Completion of necessary engineering

and reporting, including Geotechnical and Environmental Assessment.

Virtual building, 370,000 square feet, expandable to 761,000 square feet.

Several recent prospect visits.

Committee Provided Incentives In preparation of this plan, committee provided incentives were evaluated. These incentives, would be what the Committee could provide to an industry and would be in addition to any other regional or state incentives. The incentives discussed in this plan offer a baseline of what could be offered, however are not the final incentive package which would require Committee approval. In developing the minimum investment needs, it was assumed that a base incentive package that could be offered would include the land and development needs which the Committee can finance over a 7-year period. These numbers are provided as an example to work from in order to develop a final incentive package for a specific industry and its investment. Revenue Sharing Members of the New River Valley Commerce Park Participation Committee share the revenue from the Machinery and Tools tax of industries that locate at the Park in perpetuity. In addition, VFRIFA and the host community are working on an agreement to share all other taxes for an industry for a period of time. See Attachment 6 for a proposed shared tax structure. Updated Business Plan This Business Plan recognizes the limited financial resources available to the Committee, and attempts to best utilize available and future funding to provide a marketable development strategy for the Park. In developing this plan, the Participation Committee established the following guidelines to be used:

500,000 gallons per day of water capacity 500,000 gallons per day of sewer capacity Maximize amount of land that is “ready to build” Develop a market-based industry focus Formation of a prospect team Develop clear and specific incentive policies Market flexible sites without competing with other facilities in the region Maximize tax revenue sharing Develop a detailed business plan addressing; target industries, marketing strategies, utility and

infrastructure development, areas available for development, tax structure, and incentives. Evaluate assets to determine if they can be converted into cash Require NO ADDITIONAL FUNDING by localities

Figure 1: NRV Commerce Park Land

Sale of Surplus Property

Purpose The sale of surplus property will allow the Authority to reinvest in capital improvements at the Commerce Park without subjecting individual share holders to increased costs. The revenue received from the sale of property will be used to invest in necessary improvements at the Commerce Park. Revenue from the sale of existing property along with existing authority funds has been evaluated to be sufficient to cover the debt service of the planned improvements for a period of roughly10-years. The property proposed to be released has been identified not being critical to the development of Commerce Park. House on 5.5 Acres In April 2007, the Authority issued a Request for Proposals (RFP) for the services of a realtor to sell the property identified as the Mebane House on the May 2004 Commerce Park Master Plan. The Mebane house was acquired December 28, 2000 from Andrew and Rebecca Cullip for a purchase price of $355,000. The house is a historic 6,800 square foot 4-story brick home built in 1910. The house features 6-bedrooms, 2-bathrooms, numerous fireplaces, a large columned porch on the side of the house, and details and craftsmanship one would expect from a house of that era. The house sits of 5.52 acres surrounded by farm-land with a very large front and side-yard. When Virginia’s First acquired the home, $32,522 was put into the home to make necessary improvements, including repairing soffit’s, stabilization of the structure and replacing the porch. The home currently operates on a shared water system with the neighboring single-wide and double-wide homes. The well is located off the home’s property line on land owned by VFRIFA. A water use agreement or a new well may be necessary in order to complete the sale of this property. The current real-estate market is not as strong as it was just one-year ago. Recently, it was reported that home values have begun to drop as interest rates rise and the benefits of adjustable rate mortgages have begun to disappear. Because of the slow-down in the real estate market, homes are typically staying on the market for 3-5 months, creating more competition among sellers and creating a buyers market.

The Authority will work with the real estate agent to sell the property at maximum profit to the Authority. Surplus property in addition to the original 5-acres may be available for purchase pending the Authority’s approval.

Double Wide The Authority may also consider identifying a tract of property for the double-wide for its future sale. The existing tenants of the double-wide have expressed an interest its purchase. In addition to defining the lot, the Authority may also have to resolve the same water issue the Mebane house has, as these properties utilize a shared spring fed water system. Establishing dedicated wells for each property or drafting some type of water use agreement may resolve the water concerns.

Action Items:

- Work with Realtor for the sale of the Mebane House - Identify exact tract of property for Mebane House and Double Wide - Work to resolve the property’s shared water issue if necessary

Mebane House

Additional Property

Double-wide

Zoning

Commerce Park Zoning The majority of the New River Valley Commerce Park is zoned Planned Industrial District (PID) by Pulaski County. This zoning permits a variety of industrial uses and lot sizes. Two additional pieces of property (34 acres that includes the Mebane House and 62 acres adjacent to Ruebush Road) are zoned agricultural. Building height limitations in the PID are generally limited to 45-feet, with buildings no higher than 60-feet. Since the property is located adjacent to the airport, additional height requirements may be in effect depending on lot location. Lot sizes must be greater than 2-acres in the PID. A copy of the PID zoning ordinance is included in attachment 1. Required Buffer The Commerce Park’s buffer land is zones conservation.

Protective Covenants Protective covenants are in place at the Commerce Park. The Protective Covenants were adopted July 12, 2000 with extensive citizen input. The goal of the Covenants is to protect owners of improvements against improper and undesirable uses within the Park and to contribute to the development community and enhance the region. The lands of the New River Valley Commerce Park are subject to the provisions of the Covenants, which run with the land, and each and every part thereof, insofar as federal, state, and local laws permit, to ensure proper use of appropriate development and improvement of said premises, the community, and the region: 1. Protect the neighbors, owners, and tenants of parcels against such improper development and use

of surrounding parcels as will depreciate the value and use. 2. Prevent the erection of structures constructed of improper or unsuitable materials or with

improper quality and methods of construction. 3. Ensure reasonably consistent development of the property in keeping with the overall goals of

New River Valley Commerce Park to promote quality development. 4. Encourage and ensure the erection of attractively designed, permanent improvements

appropriately located within the property in order to achieve harmonious appearance and function. 5. Ensure the construction of adequate off-street parking and loading facilities. 6. Establish and preserve open spaces for the passive enjoyment and benefit of occupants, tenants,

owners, and the public. 7. Promote the compatibility of the development and use of parcels with the integrity, beauty, and

character of the environment. 8. Generally promote the welfare and safety of occupants, tenants, owners of parcels, and the

community. A copy of the Protective Covenants is included in Attachment 2.

Existing pump station at NRV Commerce Park

Utilities Summary of Infrastructure Investment Infrastructure improvements at Commerce Park include water, sewer, electricity, natural gas, grading, and roadway work. Development costs have been estimated, and spread out among the lots served and will be further discussed in greater detail in the next section. A water and sewer alternative is being developed to increase capacity to the Park to roughly 1.0 MGD of water and sewer. Undertaken as a joint project with Pulaski County PSA, will reduce the financial burden on the participants. Water Supply 0.08 MGD currently available Plans have been developed for greater volume water users up to 6.0 MGD. Sewer The existing pump station has a capacity of 670 GPM (0.96 MGD) with no upgrade. 1,200 GPM (1.77 MGD) would be available with a pump station upgrade. Plans have been developed for larger volume sewer users. Water/Sewer Utility Improvements Several on and off-site improvements can be made to maximize water and sewer capacity serving the Commerce Park site. It may be possible to seek grant funding to accomplish these projects, considering the number of off-site utility improvements, it may be reasonable to work in conjunction with the Pulaski County Public Service Authority to obtain grant funding. Currently the Committee is exploring some short term options that would bring at a minimum 500,000 gallons of water and sewer improvements to the Commerce Park, as well as 400,000 gallons of additional water storage. Specific improvements being evaluated include: o 500 - 2000’ on-site Water line (on-site) o 13,000’ of 12” Water line (along Rt. 100) o 3,000 - 3,500’ Sewer line (on-site) o Parallel 10” Force Main Sewer Line (on-site) o 400,000 gal. water storage (on-site)

This project is being discussed with Pulaski County PSA, and cost estimates are being prepared in order to submit a grant funding request for 50% of the project costs with the Economic Development Administration (EDA).

Internet 1.6 Mbps download speeds and nearly 600 kbps upload speeds are available at the water tower through Citizens. Additional internet access may be available to the Park by Verizon and other telephone and network providers. In addition, the New River Valley Community Broadband Network Plan proposes providing fiber optic cable to the Commerce Park. Currently, grant funding is being pursued for construction of the network. Electricity A letter from AEP, dated November 2005 states that with a user, service could be provided at no costs to the Commerce Park. Construction estimates for electricity at the 10,000 kw level is estimated to be $500,000. The Committee has discussed maintaining a reserve fund sufficient to cover half of these. The Committee is currently discussing with AEP to evaluate several power options, including major power users that includes estimates of cost and time to provide power services at the park. Natural Gas Natural gas is included in the park’s master plan. Construction of the line to the park is assumed to be covered by the gas company with a user. Construction estimates to supply the Commerce Park with natural gas is estimated to be $388,000. The Committee has discussed maintaining a reserve fund sufficient to cover half of these expenses in the event it would be necessary. In addition, discussion is on-going with a property owner adjacent to the Commerce Park to share in the construction costs of the natural gas line. Rail Preliminary rail layouts to serve Commerce Park have been developed by working with Norfolk-Southern. The proposed layout would cross Route 11, and tie into the Commerce Park on the Southeastern portion of the land. While a cost estimate is not available for rail service, right of

ways and some additional property would have to be secured. In consideration of a roadway from the Southeastern portion of the Commerce Park connecting to Route 11, it would be prudent to secure rail right of way when securing the road right of way. In lieu of direct rail service, an agreement has been reached with

Virginia Railcar Services, LLC; the operating subcontractor for the Radford AAP railroad system, to provide railcar handling, loading to truck and delivery of non-hazardous bulk commodities from the Dublin rail site to the Commerce Park. GIS Tool Being Developed In cooperation with Anderson and Associates, a GIS based tool is in the process of being developed for the Commerce Park. This tool will accurately show the location of utilities, proposed utility corridors, roadways, geotechnical data, grading plans and other pertinent engineering and planning documents. This tool will make it easy for a prospective industry to evaluate an individual site, explore their exact needs and determine the best course of action to expedite construction.

The illustration above is a design of a 600,000 sq. ft. building which was prepareby by the NRV Economic Development Alliance. The Virtual Building was estimated at approximately $16 million.

Commerce Park Lots and Industries

Potential Industries There are nearly endless potential industries that would be compatible and likely future tenants at Commerce Park. With the lines of industries being blurred in the 21st century marketplace, it is difficult to categorize exactly what industries would be potential tenants in the New River Valley. However, looking at statewide statistics and marketing pro forma may provide a better estimate of industries, their needs and potential investments. Below is a chart of statewide statistics for Virginia with a few highlighted industries. These industries are a sampling of those that may be interested or already have a presence in the New River Valley. As can be seen from the chart, the average acreage required by the industries varies, as does the potential investment. This chart only represents the statewide averages for these target industries. Throughout this business plan, any assumptions made about a particular industry and their investment will be made based on this chart and on prospect activity at the Park. It is important to keep in mind that each prospect industry and company will be unique and may not reflect the figures shown below.

Commerce Park Lots Figure 2 has been developed to show potential lots and lot areas. Figure 3 below shows what infrastructure improvements are needed to serve those areas and Figure 4 estimates grading requirements for individual pad parcels. Many of these lots can be sub-divided which will be explained in detail in the section labeled “description of commerce park lots.” Each lot is designed to offer flexibility in building design and layout. Development costs for each lot have been estimated, although development costs could vary dependents on the specific needs of the industry. For the assumptions that were made in the computation of the development costs, see attachment 3.

Target Industry

Ave. Acres

Ave. Investment Ave Equipment

Estimated Annual Return for Commerce

Park: Real Estate

Estimated Annual

Return for Commerce Park: M&T

Plastics 34 (2-80) $11 million $9.3 million $65,142.00 $66,960.00InfoTech/Data Center 10 $3.8 million $5.9 million $22,503.00 $42,480.00Pharmaceuticals na $191 million $82 million $1,131,102.00 $590,400.00Automotive 25 $5.6 million $7.7 million $33,163.00 $55,440.00Wood Products 55 $4.8 million $3.26 million $28,425.00 $23,472.00Consulting Services na $11.15 million $29.54 million $65,142.00 $212,400.00

Figure 2: Commerce Park Lots

Figure 3: Commerce Park Lots and Infrastructure Improvements

Figure 4: Commerce Park Parcel Grading Estimates

The New River Commerce Park Virtual Building – Courtesy of the New River Valley Alliance

Commerce Park Lots Parcel 1

Physical description: - 89+ acre site - 40 acres currently graded - Total of 69 acres pad - Adjacent to access road - Premier, “front of park” site - “Virtual Building” developed. See attachment 5 for details.

Top picture: an aerial view from the Northwest of Site 1 and the 40-acres currently grated. Bottom picture: a view of the backside of the 40-acres which is an additional 69 acres available for expansion

Development Needs and Costs: Much of the development of site one has been complete, with the pre-grading of 40-acres and the investment in the access road. Total investment to date in Site 1 is $1.8 million.

NRVCP Parcel 1 Preliminary Cost Estimate

Parcel Acres: 89

Item Quantity Unit Unit Price Price

On Parcel Costs Earthwork 490000 CY $ 5.00 $2,450,000.00 Erosion Control 89 AC $ 1,000.00 $ 89,000.00 In Park Costs Roads 1 LS $ - Water 1 LS $ - Sewer 1 LS $ 235,471.79 Gas 1 LS $ - Electricity 1 LS $ - Fiber / Comm. 1 LS $ 9,566.29 To Park Costs 12" Water Main 1 LS $ 339,818.18 2nd Elevated Tank 1 LS $ 161,818.18 Electricity? 1 LS $ - Gas? 1 LS $ - Subtotal $3,285,674.44

20%

Contingency $ 657,134.89 Total $3,942,809.33 Additional grading for the 29 acre expansion and to complete grading of the 40 acres in order to bring total pad acres to 69 acres is necessary. Additional development costs of Parcel 1 are estimated to be $3,942,809 bringing the total development costs to $5,742,809.

Target Investment: A $171 million investment is required to provide land, development costs and initial incentives. For industries that do not meet the target investment, the above chart indicates the development costs that the industry is likely to face in preparation of the site without Committee provided incentives.


Physical description: - airport adjacent - adjacent to main access road currently constructed - 15 total acres - Sub dividable into 3 lots of 3 pad acres.

Above. Photo of Site 2, looking east. Below. layout of Parcel 2, roughly 325’x2010’ can be further divided into 3-parcels.

Development Needs and Costs:


Parcel Acres: 15


On Parcel Costs Earthwork 43500 CY $ 5.00 $ 217,500.00 Erosion Control 15 AC $ 1,000.00 $ 15,000.00 In Park Costs Roads 1 LS $ 17,791.45 Water 1 LS $ 16,696.06 Sewer 1 LS $ 32,607.60 Gas 1 LS $ - Electricity 1 LS $ - Fiber / Comm. 1 LS $ 1,612.30 To Park Costs 12" Water Main 1 LS $ 57,272.73 2nd Elevated Tank 1 LS $ 27,272.73 Electricity? 1 LS $ - Gas? 1 LS $ - Subtotal $ 385,752.86

20%

Contingency $ 77,150.57 Total $ 462,903.43

Target Investment: A $15.5 million investment is required to provide land, development costs and initial incentives. For industries that do not meet the target investment, the above chart indicates the development costs that the industry is likely to face in preparation of the site without Committee provided incentives.

Pictured left: the eastern portion of Parcel 3, a potential 18 acre pad. Pictured below: the southern most area of Parcel 3, which could include a 15 and 17 acre pad. The subdivision of Parcel 3 is included in the sketch below.


Physical description: - Located near end of access road in vicinity of the existing water tower - 74 acres parcel - Roughly 2-acres pre-graded - Excellent location for a campus like environment for a like industries cluster - Can be sub dividable into 3 pads of 18, 15, and 17 acres each.



Parcel Acres: 74


On Parcel Costs Earthwork 780000 CY $ 5.00 $3,900,000.00 Erosion Control 74 AC $ 1,000.00 $ 74,000.00 In Park Costs Roads 1 LS $ 170,047.99 Water 1 LS $ 118,091.36 Sewer 1 LS $ 83,381.56 Gas 1 LS $ - Electricity 1 LS $ - Fiber / Comm. 1 LS $ 11,337.58 To Park Costs 12" Water Main 1 LS $ 282,545.45 2nd Elevated Tank 1 LS $ 134,545.45 Electricity? 1 LS $ - Gas? 1 LS $ - Subtotal $4,773,949.40

20%

Contingency $ 954,789.88 Total $5,728,739.28



Physical description:

- 35 acre parcel - Grading estimates for 22 acre pad - Easily subdivided into two pads of 12.5 acres and 8.5 acres - At the corner of main access road proposed route and proposed additional roadway. - Property begins just east of existing pump station. - Borders future sewer line expansion corridor

Looking northeast, site 4 extends to roughly the tree line.



Parcel Acres: 35


On Parcel Costs Earthwork 195000 CY $ 5.00 $ 975,000.00 Erosion Control 35 AC $ 1,000.00 $ 35,000.00 In Park Costs Roads 1 LS $ 369,226.30 Water 1 LS $ 209,667.31 Sewer 1 LS $ 115,351.02 Gas 1 LS $ - Electricity 1 LS $ - Fiber / Comm. 1 LS $ 16,126.29 To Park Costs 12" Water Main 1 LS $ 133,636.36 2nd Elevated Tank 1 LS $ 63,636.36 Electricity? 1 LS $ - Gas? 1 LS $ - Subtotal $1,917,643.65

20%




Physical description:

- 36 acre parcel - Grading estimates for 28 acre pad - Proximate to future roadway

Current view of site 5 looking east.



Parcel Acres: 36



20%


Target Investment: A $87.5 million investment is required to provide land, development costs and initial incentives. For industries that do not meet the target investment, the above chart indicates the development costs that the industry is likely to face in preparation of the site without Committee provided incentives.


Physical description: - 36 acre parcel - Grading option for a 27 acre pad - adjacent to airport, with access to airport possible - near proposed future East-West Connector.

Red arrow indicates Parcel 6 area

Development Costs and Needs:


Parcel Acres: 36



20%




Physical description: - 45 acres for three (3) ten acre campus environment - natural security, secluded location that can be hidden from surrounding view - ideal location for data center or other similar type activity

Top picture: location of site 7. Bottom picture: conceptual layout of 3 building sites on 10 acres each for site 7.



Parcel Acres: 45



20%



Commerce Park Lots Misc. Land Development

Commerce Park Recreational Area/Trail The property surrounding the Commerce Park has been reserved as a greeway/buffer area as per the parks covenants. As such, a recreational area is planned to be developed there to serve the businesses in the park. A walking, jogging or riding trail or other recreational activities are proposed to be developed along the perimeter of the Park. Phase II The above mentioned lots and locations is considered to be a Phase I development. Phase II, which includes additional land on the southern portion of the Park has not yet been fully developed. Additional infrastructure is needed for Phase II, mainly water and sewer. Due to the layout of the land on the southern most portion of the property, Phase II may be more selective in lot sizes and building layouts. Upon further development of Phase I, options will be pursued for Phase II.

Screen shot of Commerce Park Investment Tool

Marketing Strategies

Marketing Focus For the second year in a row, Virginia has been chosen by Forbes.com as the #1 state to do business. As a premier location, within close vicinity to Interstate 81 and within the heart of the New River Valley, Commerce Park offers a lot to potential industries. Market focus should continue to highlight the regional cooperativeness and assets for the development of the project. Commerce Park Assets The Commerce Park offers several benefits to a potential industry, including completed geotechnical data, phase I environmental information, a variety of parcels, access to the New River Valley Airport adjacent to the property, and an rail use agreement to provide shipping of non-hazardous goods from a local rail facility. Minimum Investment and Target Industries The marketing group should attempt to target industries that can meet or exceed the minimum investment targets established in this plan. In developing the minimum targets, development costs and potential incentives were factored into a program developed by staff in order to provide an estimated investment necessary to recover costs. This program can also be used to estimate the rate of return to participants of a potential industry based on the tax revenue sharing formula.

Incentives The incentives discussed in this plan offer a baseline of what could be offered, however are not the final incentive package which would require Committee approval. In developing the minimum investment needs, it was assumed that a base incentive package that could be offered would include the land and development needs. These numbers are provided as an example of which to work from in order to develop a final incentive package for a specific industry based on its investment. Lots and Target Industries Below are the list of parcels at the Park and what the estimated target investment is for each parcel based on the development costs. The list of industries provides an example of what type of target industries may be an ideal fit for that particular parcel. The list is not intended to be a comprehensive list, and should not limit consideration of an otherwise qualified industry that could utilize the parcel. Parcel 1 – 89 acres - $171 million target investment. Heavy manufacturing, processing or

pharmaceutical. Parcel 2 – 15 acres - $15.5 million target investment. High yield/low acreage type industry,

aviation related, plastics. Parcel 3 – 74 acres - $167 million target investment. Manufacturing, pharmaceutical,

aviation related, or industrial cluster. Parcel 4 – 35 acres - $69 million target investment. Automotive, consulting services,

distribution, light manufacturing. Parcel 5 – 36 acres - $87.5 million target investment. Automotive, light manufacturing,

alternative power generation. Parcel 6 – 36 acres - $122 million target investment. Aviation related, manufacturing,

international business. Parcel 7 – 45 acres - $127 million target investment. Data center, server farm, high-tech labs,

pharmaceutical campus. Prospect Team The prospect team to meet perspective industries on behalf of VFRIFA shall include:

o A representative of the regional marking alliance or their designee o The Chairman of VFRIFA or their designee o The Vice-Chairman of VFRIFA or their designee o Staff member of VFRIFA or their designee

The prospect team will evaluate the needs of the prospect, determine what sites on the Park to tour, arrange for the tour, answer any questions of the prospect, and promptly follow-up with the prospect after the initial meeting. Every effort shall be made to make the prospect feel welcomed, respond to their needs promptly, present all information in order to allow the

prospect to make an informed decision, and to stress the region’s strong commitment to working together to attract industry. The prospect team may wish to arrange for use of the New River Valley Airport’s conference room to provide additional presentation space or to escape inclement weather. The prospect team will be responsible for coordinating any additional follow-ups that may be necessary of staff, engineers or Committee members. Similar to other communities, VFRIFA staff will prepare all questionnaires and proposal information for individual prospects. Keys for the various gates at Commerce Park are located in the offices of the NRV Planning District, as are maps and other marketing materials for the prospect team’s use.

Attachment 1 Pulaski County Zoning

Planned Industrial District (PID) Below are the Pulaski County Zoning Ordinance’s for a Planned Industrial District (PID). PULASKI COUNTY ZONING ORDINANCE Last Revision: December 19, 2005 80 ARTICLE 6B: PLANNED INDUSTRIAL DISTRICT (PID) 251

Statement of Intent This district is established primarily for industrial operations and for heavy commercial operations, which may create some nuisance, and which are not particularly compatible with residential, institutional, or retail commercial uses. 6B-1 Uses Permitted by Right Within the Planned Industrial District (PID), the following uses are permitted by right: • Day Care Facilities • Information Technology Systems and products • Laboratories; Pharmaceutical and/or Medical; • Manufacture or Assembly operations including but not limited to the following: Bio-technological, Bio-informatics, Specialty Fabrication, Semi-conductors, Fiber Optics, Wireless devices, Robotics, Electronics, and similar operations; • Public Parks • Public utilities, booster generator or relay stations; transformer substations, transmission lines, and towers; communications lines, towers, and receivers; pipes, meters, and other facilities for the provision and maintenance of public water and sewerage utilities, railroad facilities, and other utility installations, including CATV. • Signs as controlled by the sign section of this ordinance. • Testing operations of item assembled, manufactured, or produced in Industrial Districts, Permitted Uses by Right, or any other accessory uses required for the operation of an industry allowed under this section; 6B-2 RESERVED 252

6B-3 Uses Permitted by Special Use Permit (SUP) Only 253

Within the Planned Industrial District (PID), the following uses are permitted by Special Use Permit (SUP) only: • Airport and airport facilities • Boat Building • Chemical Manufacturing • Private Tanks or Pump Stations (above ground), except Pulaski County public water and sewer utility units shall require only a site plan review. • Retreat/Conference Center 254

• Setback Variance • Towers, Public Safety and/or Government Communications, 250 ft. or less 255

6B-4 Area Regulations For lots with industrial buildings, the minimum lot area shall be seventy-five (75) acres. For other uses, the minimum lot size shall be two (2) acres, with no minimum lot size for utilities. 6B-5 Setback Requirements Industrial Buildings or industrial accessory structures shall be located in accordance with the site concept plan and approved development site plans. 6B-6 Frontage Regulations A minimum street frontage of fifty (50) feet is required. 6B-7 Yard Regulations The following yard requirements apply to all industrial lots in this district: the minimum side and rear yards adjoining a boundary shall be fifty (50) feet. 6B-8 Height Regulations The following height regulations apply to structures constructed in this district: 1. Buildings may be erected up to forty-five (45) feet in height from grade. 2. A building may be erected to a height of sixty (60) feet from grade provided that required front, side, and rear yards shall be increased one (1) foot for each foot in height over forty-five (45) feet. 3. Cupolas, monuments, water towers, chimneys, flues, HVAC equipment, and flagpoles, elevator towers, antennae, and aerials are exempt. Parapet walls may be up to four (4) feet above the height of the building on which the walls rest. 4. Airport zoning applies and may limit building height. 6B-9 Lot Coverage Impervious material shall not cover more than 70% of any lot in this district. 6B-10 Site Plan Review Required All proposed developments in the Planned Industrial District (PID) shall have a Site Plan Review conducted after public notice has been given in accordance with §15.2-2204. 1. The site plan shall include a landscaping plan, which provides for landscaping and maintenance of the entire parcel being developed. 2. The site plan shall provide information on the design of the proposed buildings, parking, and all other improvements to the site. The approved plan shall control the development of the site, until such time as an amended plan shall be approved. 3. The site plan shall meet all of the County’s other site planning requirements described in Article 18, Site Development Plan. 4. Prior to construction or grading, and yearly thereafter, sampling shall be performed on wells of consenting adjoining property owners by the Authority, or its designee, to DEQ standards to establish historical data. 5. Green space shall be provided for all projects to protect adjacent non-industrial uses. 6. The site plan shall address issues pertaining to ground and storm water management and the impact on off-site water sources.

6B-11 Restrictive Covenants Protective Covenants shall be recorded in the Pulaski County Circuit Court along with property deeds. The Covenants may be amended in accordance with the process identified in the Covenants.

251 District Added September 25, 2000 252 CUP’s converted to SUP’s 07/22/2002 253 CUP’s converted to SUP’s 07/22/2002 254 Use Added 07/22/2002 255 Use Added 03/24/2003; amended 8/25/2003 increasing height from 199 ft. to 250 ft.

Attachment 2 Protective Covenants

NEW RIVER VALLEY COMMERCE PARK Protective Covenants

1. Statement of Purpose The goal of the New River Valley Commerce Park (NRVCP) is to provide a location for industrial operations which could not be supported at other industrial locations within the geographic extent of the jurisdictions which are members of Virginia’s First Regional Industrial Facility Authority. These operations would provide above average value jobs and high levels of investment in the tools of production. The provisions included in these Covenants are designed to protect and enhance long term property values, provide pleasant and productive working environments, and ensure the construction and maintenance of high quality buildings, which are integrated into an attractively landscaped environment. The Covenants are intended to be applied to the New River Valley Commerce Park lands offered by Virginia’s First Regional Industrial Facility Authority to protect owners of improvements against improper and undesirable uses within the Park, contribute to the development community and enhance the region. The lands of the New River Valley Commerce Park are subject to the provisions of these Covenants, which run with the land, and each and every part thereof, insofar as federal, state, and local laws permit, to ensure proper use of appropriate development and improvement of said premises, the community, and the region: 1. Protect the neighbors, owners, and tenants of parcels against such improper development and use of

surrounding parcels as will depreciate the value and use. 2. Prevent the erection of structures constructed of improper or unsuitable materials or with improper

quality and methods of construction. 3. Ensure reasonably consistent development of the property in keeping with the overall goals of New

River Valley Commerce Park to promote quality development. 4. Encourage and ensure the erection of attractively designed, permanent improvements appropriately

located within the property in order to achieve harmonious appearance and function. 5. Ensure the construction of adequate off-street parking and loading facilities. 6. Establish and preserve open spaces for the passive enjoyment and benefit of occupants, tenants,

owners, and the public. 7. Promote the compatibility of the development and use of parcels with the integrity, beauty, and

character of the environment. 8. Generally promote the welfare and safety of occupants, tenants, owners of parcels, and the

community. 2. Applicability and Effect These Protective Covenants are applicable to all industrial parcels located within the the New River Valley Commerce Park and shall become effective and in full force upon recordation in the Pulaski County Circuit Court Clerk's office.

New River Valley Commerce Park Protective Covenants

3. Creation of New River Valley Commerce Park Development, Covenants, and Communications

Committee There is hereby created the NRVCP Development, Covenants, and Communications Committee (DC&CC) made up of Virginia’s First Regional Industrial Facility Authority as represented by selected members of the NRVCP Participation Committee, all owners of lands within the Park, any owner/manage of greenway lands, and four landowners, within one half mile of the existing and proposed park lands. The Committee may establish its own bylaws for the conduct of its affairs, which include reasonable notice to each member prior to any meeting. Recommendations by the Committee shall be by majority of votes cast. The Committee shall have the following purposes: Review and comment on site plans for the developments proposed in the Park. Monitoring the compliance of developments in accordance with the purposes in §1 above, and the provisions of these covenants. 4. No Additional Subdividing No industrial parcel designated on the Concept Plan for the NRV Commerce Park shall be further subdivided without the recommendation of Virginia’s First Regional Industrial Facility Authority, as requested by the New River Valley Commerce Park Participation Committee following a review by the NRVCP (DC&C Committee), and in compliance with the process established by Pulaski County for subdivision or re-subdivision of lands. The Authority shall retain ownership of designated “Greenspace”. 5. Definitions The terms indicated in boldface type below shall have the accompanying meaning for purposes of these Protective Covenants. "Greenspace Areas" shall mean natural or naturalized areas. Maintenance of these areas may include being mowed or "bush-hogged" only occasionally, e.g., twice per year. "Landscaped Area" shall mean all parts of the site which are not covered by buildings or paving, and which are not being set aside as greenspace areas. "New River Valley Commerce Park" shall mean the industrial park assembled by Virginia’s First Regional Industrial Facility Authority, a development located south of the New River Valley Airport, north of the Town of Dublin, on State Route 100. "Parcel" shall mean any lot or area, designated on the approved concept plan for development, excluding greenspace, other common area, and roads, within New River Valley Commerce Park.


"Park" shall mean New River Valley Commerce Park. “Pulaski County”, or "County" shall mean Pulaski County, Virginia, an independent political subdivision of the Commonwealth of Virginia. “Structure” shall mean any building or accessory building having a roof supported by columns or walls intended to enclose any individual, process, equipment or materials of any kind. 6. Permitted and Prohibited Uses

6.1 Permitted Uses Permitted Uses in the New River Valley Commerce Park shall be those provided for in the zoning

district and any accepted proffers covering the Park. Location of specific firms and site plans shall be those recommended by the New River Valley

Commerce Park Participation Committee, following consultation with the DC&CC, and acceptance by the Pulaski County Board of Supervisors.

6.2 Prohibited Uses Uses of any kind which do not meet the minimum State and Federal requirements for emissions by

reasons of the excessive fumes, odors, glare, vibration, gases, radiation, dust, liquid or solid waste, smoke, noise, or other hazards.

7. Site Plan Required A relatively wide variety of architectural design and materials shall be permitted. However, it is intended that a basic harmony of architecture shall prevail among developments so that no improvement shall detract from the appearance of the overall park. Individuality and creativity are encouraged provided that blending of design into the parcel's surrounding context is achieved. The general design context must reflect a high quality corporate image. The site plan shall include a landscaping plan which provides for landscaping and maintenance of the entire parcel being developed. The site plan shall provide information on the design of the proposed buildings, parking, and all other improvements to the site. The Site Plan shall be prepared and submitted for approval to the New River Valley Commerce Park Participation Committee in accordance with the provisions of the Pulaski County Zoning Ordinance and addressing the standards enumerated herein prior to initiation of construction. The approved plan shall control the development of the site, until such time as an amended plan shall be approved.

New River Valley Commerce Park

Protective Covenants

7.1 Materials

The exterior construction of buildings within the Commerce Park may be of metal or faced (e.g.,

stuccoed) concrete masonry unit only if the side(s) of the building seen when entering the parcel or from Rt 100 or within 750 feet of an adjacent residence or church are faced with stone, brick, concrete (reinforced, pre-cast, poured in place, or tilt up), equivalent masonry construction, glass, Exterior Insulation Finish System (EIFS) (e.g., DRYVIT), architectural block, split-faced units or a combination thereof. Otherwise, the exterior construction of buildings within the Park shall be of stone, brick, architectural block, split-faced units, glass, EIFS, vinyl or a combination of these materials. Roofing materials shall be non-reflective.

7.2 Additional Structures on a Single Lot The site plan shall control the development of parcels in the Park. No additional or accessory buildings

or structures may be constructed which are not identified on the approved site plan. Additional buildings and enclosures shall be of similar design and materials as the principal buildings.

7.3 All Materials, Etc. to be Consistent

On each parcel, colors, materials, finishes, and building forms shall be coordinated in a consistent

manner on all elevations, facades and sides. All external colors shall be tones which blend with the natural surroundings.

7.4 Equipment Transformers or similar above ground equipment shall be screened to soften the lines of the object. Dumpsters, recycling equipment and containers, compactors, bailers and other waste management

equipment and waste containers shall be screened so as to not be visible from any public roadway or right-of-way, adjoining parcel, greenspace, lake or pond area, Vegetative screening shall be sufficient, when utilized, to provide a continuous visual screen of the area, year-round.

7.5 Fencing The use of fencing on any parcel, must be approved by the Participation Committee. 7.6 Outdoor Storage All visible outdoor storage areas shall be designed, located, or screened to minimize visibility from any

adjoining parcel or publicly maintained roadway. This may be accomplished by a landscape berm


and/or continuous evergreen buffer. All screen plantings must be of a size and density, at the time of planting, sufficient to provide a continuous visual screen of the area. Black vinyl coated chain link fencing with black vinyl slats may be used to screen outdoor storage areas insofar as the exterior perimeter of the fence is extensively landscaped with, at least, evergreen plants and trees.

7.7 Maintenance

Each owner, tenant, or occupant of any parcel shall keep buildings, grounds, and improvements in a safe, neat, clean, and maintained condition and shall comply in all respects with all governmental statutes, ordinances, regulations, health codes, and police and fire requirements.

Each owner, tenant, or occupant shall remove at their own expense any rubbish or trash which may

accumulate on their parcel. Rubbish, trash, garbage, or other waste shall be kept only in sanitary containers. All equipment for the storage or disposal of such materials shall be kept in a clean, neat and sanitary condition. Rubbish and trash shall not be disposed of on the premises by burning or burying.

8. Regulation of Improvements No improvements shall be constructed, erected, placed, altered, maintained, or permitted on any parcel unless in conformity with the Commerce Park Concept Plan, the required site plan and any applicable zoning regulation as follows: 8.1 Utilities Utility services, except those in existence at the time of recordation of these Covenants, including

electric power, telephone, fiber optic, steam, sanitary sewer, or water lines shall be installed underground. Any exception for overhead electric power lines must be reviewed by the DC&CC and approved by the NRVCP Participation Committee and Pulaski County. Fuel storage tanks and transformers required to be placed above ground shall be screened to the extent possible. *

8.2 Grading Cut slopes and fill slopes shall have rounded edges, and the surface shall be varied and modulated to

emulate the natural landforms or existing terrain, for the purpose of blending the slope into its surroundings and minimizing the artificial look. Tree plantings and other landscaping will be used to further obscure the visual impact of slopes.

9. Parking Standards Each parcel shall contain all required parking within the parcel. Off-site parking shall not be permitted. Parking shall not be permitted on any street, and owners of parcels or their tenants shall be responsible for enforcing this requirement with respect to their employees and visitors.


9.1 Required Parking The minimum vehicle parking space requirements as delineated within the Pulaski County Zoning

Ordinance shall apply. 9.2 Design Standards 9.2.1 Location Parking areas may be constructed on any part of a parcel as delineated in the site plan, except within the

required yard. 9.2.2 Paving All access drives, parking areas, and outdoor storage areas shall be paved with asphaltic concrete (hot

plant mix), reinforced concrete, block pavers, pervious materials or equivalent materials to provide a dust-free surface. All passenger and truck movements and parking shall be confined to these areas. Further, no parking on public road shoulders shall be permitted.

9.2.3 Curb and Gutter Where curbing or curb and gutter are to be provided for storm water control, that curbing or curb and

gutter shall be concrete. 9.2.4 Grades

All parking areas shall be surfaced in accordance with Section 9.2.2 and graded with a minimum slope of 1% to ensure proper drainage.

9.2.5 Screening The site plan shall provide for parking areas to be substantially screened from view of publicly

maintained rights-of-way, using hedges, plantings, structures, earth berms, changes in grade or walls. Vegetative screening shall be effective year-round.

9.2.6 Landscaping The site plan shall include proposed landscaping within parking lots. 9.3 Off-Street Loading Areas Provision for handling all truck service shall be totally within each parcel. No off-street loading areas

shall be located within the required setbacks or adjoining any street boundary.


Loading areas shall be designed and located so that they are not visible from public roadways. The uses

of earth berms, structures and/or landscape screening shall be employed to screen loading areas, particularly facing residential areas, to the extent possible.

10. Sign Standards All signage shall conform to the standards in the Pulaski County Zoning Ordinance for signs in the industrial district. A signage plan shall be a part of the site plan for the parcel. Signs shall relate only to organizations, goods, services, or activities on the parcel upon which the sign is located. No billboards or outdoor advertising shall be permitted. No moving signs or flashing lights on signs, roof-top signs, or pole-mounted signs shall be permitted. All signage on a parcel shall be uniform in appearance and design. Signage shall be uniform in materials, color scheme, lettering style, proportions, lighting, and other characteristics. 11. Landscaping Standards New River Valley Commerce Park is intended to have a park-like setting with a strong emphasis on the landscaped environment. The site plan shall provide the landscape design for the site. Any disturbed open areas on each parcel not occupied by buildings, structures, outdoor storage areas, paved areas, parking areas, loading areas, driveways, or walkways shall be suitably graded and drained and shall be landscaped with lawns, trees, shrubs, or suitable ground cover as soon as is practicable during construction and maintained during the life of the development in accordance with the plan. All landscaping required hereunder or otherwise to be provided on any parcel shall be completed within 60 days after the substantial completion of any buildings constructed on the parcel. Provided, however, if weather conditions do not at such time permit completion, then such landscaping shall be completed as soon thereafter as weather conditions permit. 12. Exterior Lighting The intent is to create a consistent exterior lighting system for the Park. All lighting systems shall be designed so as not to produce significant illumination or glare beyond the parcel on which it is located. All electric wiring shall be installed underground. In addition to lighting provisions set forth herein, all lighting shall comply with requirements applicable to the underlying zoning district of each parcel. 12.1 Mounting Height

The maximum permitted mounting height for any exterior lighting fixture shall be 25 feet. Fixtures designed to illuminate pedestrian walkways shall have a maximum height of 12 feet.


12.2 Lighting Type Low bollard fixtures and landscape lighting are recommended for walks and building entries.

To minimize glare and light spillover, light fixtures greater than 12 feet tall shall use luminaries with "cut-off optics, light-diffusing shields, or equivalent.”

Lighting systems will be designed to achieve an average maintained horizontal illumination level at the ground surface of 1-2 foot-candles.

To enhance pedestrian safety and security, lighting systems shall be designed to produce a broad color spectrum to emulate natural color balance with high definition and high resolution.

12.3 Building and Sign Illumination Building and sign accent illumination shall be permitted utilizing wall mounted or setback methods.

Building and sign accent illumination shall be installed and aimed so that glare will neither hinder vehicular or pedestrian traffic, nor present a hindrance to operations onsite or on any adjacent parcel.

Building mounted floodlights are permitted only if they are shielded so that direct glare is not visible from surrounding properties and adjoining roadways.

13. Greenspace

All areas designated as greenspaces on the recorded Concept Plan of the Park shall be owned and maintained by the Authority. It is intended that these areas be provided for the use and benefit of Park owners, occupants, and tenants, and/or the general public. Uses to be permitted in the greenspaces shall be determined and regulated by the New River Valley Commerce Park Participation Committee. * The Authority may assess park owners for the maintenance of “greenspace” or by adding an estimated cost to the cost of ownership.

14. Resale Conditions In the event that any Park property owner shall receive a bona fide offer to buy any property in the Park in

accordance with the terms of these Covenants, it shall, before consummating such a sale, present the Virginia’s First Regional Industrial Facilities Authority, in affidavit form, the terms and conditions of such proposed sale for review and approval by the Authority and Pulaski County. The Authority reserves the right to purchase said property within 60 days thereafter upon the same terms and conditions as contained in such bona fide offer made to the owner by any third party.


15. Amendments

These covenants may be amended by consent of the Participation Committee, The Authority, the Pulaski County Board of Supervisors, and two-thirds of the landowners within New River Valley Commerce Parks. The advice of the Development, Covenants and Communication Committee will be solicited prior to official action.

Amendments shall be recorded in the Pulaski County Circuit Court Clerk's office, and shall become effective upon such recording. All amendments shall be executed by the parties evidencing their consent thereto.

16. Severability Invalidation of any of these covenants or any part thereof by judgments or court order shall in no way affect any of the other provisions which shall remain in full force and effect.

Attachment 3 Assumptions for Development Costs

Assumptions for Development Costs • All development costs are estimates and may not reflect actual construction costs. • Grading costs for individual pads are to develop a level pad. Pad elevation may change

significantly from one parcel to the next, so estimated costs may not accurately reflect the cost to combine more than one parcel.

• While subdividing an individual parcel may be possible, those costs have not been reflected in the estimates. Development costs may vary for a subdivided parcel and should be calculated in a specific manner if that is the desire of the industry.

• Road Costs have been allocated across the various parcels, this has been done on an averaged cost per linear foot basis for each of the three roads (one main east-west road, and two spurs that come off the south of the main road). The roads will be designed from start to finish so as to provide best road-grades for the whole park as opposed to being designed as independent small sections based on that specific localized topography.

• It is our assumption that stormwater management will be provided by each individual industry on their individual parcel. Therefore, stormwater management costs for the development within the parcels has not been incorporated into this cost / business model. Based on changes in stormwater management regulations, the Committee may want to consider a park-wide alternative to stormwater management, however that cost has not been calculated.

Attachment 4 AEP Letter

Attachment 5 Virtual Building Presentation

Attachment 6 Shared Tax Schedule

Proposal for shared tax revenues between Pulaski County and Virginia’s First for the Commerce Park property NOTE: This proposal does not include the Machinery & Tools tax, which is 100% shared in perpetuity. This proposal includes the following taxes: Business Personal Property and Real Estate. Sharing of tax revenues uses the following table:

Year % of taxes shared

1-7 (incentive period) 100% toward incentives

8-9 100% shared

10-11 75% shared

12-13 50% shared

14-15 25% shared

Virginia First Regional Industrial Facility Authority - Program of Work 2009-2011

Adopted 4-08-09 and Updated 12-15-10 TASK CURRENT STATUS TIMING STAFF ASSIGNED

Completed Items Shown in ItalicsGOVERNANCEBoard of Directors Continue coordinating with member local governments,

including FOI, COI, Financial and other required disclosures

Staggered terms expire June 30, 2010 & 2012

January 2011&12 and

July 2012

Straight / Morgan

Officers Chairman to continue appointing nominating committee 4 - 6 months prior to end of terms

Elected forf 2010-12 - but need annual confirmation of Chair in January per 15/2

6403D

January 2011 Straight / Morgan

Executive Committee Include officers and 2 at large members with authority to act on behalf of the Board of Directors in between meetings with actions to be ratified by the full board at the next succeeding board meeting.

Mary Biggs, Chair - Ken Vittum, Vice-Chair - Barry Helms, Secretary

Treasurer - Doug Chittum and John Hawley, Members

Re-Elect Officers Jan - July 2012

Current Staff

Executive Director Designate Joe Morgan Executive Director on contract basis April 2009 to June 2011 OR Continue service of PDC Executive Director OR Engage alternate candidate

Joe Morgan engaged Through July 2011

MEETINGS Use semi-annual scheduled meetings, with called meetings if needed

Semi-annual meetings scheduled for 7/8/09, 1/13/10, 7/14/10, 1/12/11, &

7/13/11

Scheduled

MEMBERSHIPPeriodic Updates Add semi-annual update by Executive Director to

Member CAO or Governing Body, as best suits each member government

Contacts expected next with designation of excess funds

July 2009 to December 2012

Morgan

Additions / Withdrawals VA 1st members to consider membership change arrangements, including legislation, that would allow amicable membership changes

Approved in 2010 Acts of Assembly Ch. 531 amending 15.2-6415

As Desired by Member

Governments

Morgan

ADMINISTRATIONExecutive Director Transfer to Permanent Executive Director with PDC

Executive Director as AdvisorCompleted Through July

2011Morgan

Financial Accounting Retain at NRV PDC NRV PDC Maintains Through July 2011

McNew / Morgan

Record Keeping Retain at NRV PDC with remote laptop access PDC Maintains Through July 2011

Straight / Morgan

Office / Meeting Space Retain at NRV PDC as well as use of Morgan home office

Completed Through July 2011

Morgan

Page 1 Last Updated 12/17/2010



Completed Items Shown in ItalicsADMINISTRATION (Continued)Communications Agendas Retain at NRV PDC, with notebook format available for

each member that includes Program of Work, minutes, staff reports, etc.

PDF versions posted on NRV PDC webpage

Straight / Morgan

Correspondence Retain at NRV PDC PDC Maintains Straight / Morgan Telephone Use PDC landline and cell/PDA for Ex Dir PDC Maintains Gilbertson/ Morgan E-mail Use PDC mail server and wireless PDA for Ex Dir PDC Maintains Gilbertson/ Morgan Internet Update VA 1st Website Include in Strategic Planning 2011 Gilbertson/ Morgan

PROFESSIONAL SERVICES Legal Counsel Update procurement Jim Guynn 2011 Morgan Financial Auditor Update procurement Robinson, Farmer, Cox 2011 Morgan Engineering Update procurement Draper-Aden / Anderson&Assoc 2011 Morgan

STRATEGIC PLANNINGRegional Economic Development Needs

Emphasis on current regional workforce strengths and regional site development opportunities

Reassessment is due 10 years since VA 1st formed

2009-11 Morgan

Regional Economic Development Opportunities

Explore opportunities for investment and revenue sharing for all VA 1st members through new participation committees

VA 1st has established no regional projects except Commerce Park and

recent Nanotechnology initiative

2009-11 Morgan

Frequency Initial 2 year cycle of review and re-adoption Consider Schedule at July 2010 Annual Authority Meeting

2009-11 Morgan

FINANCE Dues Reassess long term requirements $1,500 - $2,500 adequate - remainder

to accrue to excess funds2011 Morgan

Banking Update procurement Coordinated through NRV PDC 2011 Morgan Use of ReserveProposed Regional Economic Development Grant and Loan Program

Revisit as a mechanism to insure all VA 1st members have access to VA 1st resources

2011 Morgan

Support of Participation Committees

Consider equitable policy to allow access without restricting non-participating members

2011 Morgan

Budgeting Assign to Executive Director FY 2012 Budget approval due by July 13, 2011

2011 Morgan

Through July 2011

$600,000 available as members unanimously agree for varying use of

each member's $40,000 share




Completed Items Shown in ItalicsPARTICIPATION COMMITTEES Commerce Park

GOVERNANCEOfficers Officers selected through June 30, 2012 2010-12 Officers

Basil Edwards, Chair; Chris McKlarney, Vice Chair; and Shawn Utt,

Sec. / Treas.

Completed Straight / Morgan

Executive Committee Executive Committee on permanent basis established to include officers and 2 at large members

2010 - 2012 Executive Committee Officers plus Jay Polen from Craig and

Brian Hamilton from Montgomery

Mar-10 Morgan

Executive Director VA 1st Executive Director to also serve participation committees

Joe Morgan designated as Executive Director

Engaged April 2009 to July

2011

MEMBERSHIP Welcome other member localities to join Contacts authorized with other local governments

Ongoing Morgan

STRATEGIC PLANNING2007 Business Plan Review & Adoption

Review and adopt with updates as appropriate Adopted with Executive Committee authorized to propose incentives and all

member governments to confirm

Adopted May 2009 & in

Amendment # 2

Morgan

Site Development Strategic Planning

Include overall site needs as part of VA 1st mission regional planning to serve all 15 member governments and Commerce Park specific enhancements within Commerce Park planning

Committee designatged to draft RFP for consultant selection - staff review of

currently available data to better determines structure of planning

undeway

2011 Morgan

Assessment of Rail Access Practicality

Study alternative of rail transfer options, including cooperation with RAAP Dublin site. High cost of rail access lowers credibility of marketing efforts if represented as a rail accessible site

Rail ROW acquisition being studied - Use of RAAP New River Works (Dublin)

Site for rail trans-load dependent on securing major customer

2011 Morgan

Review of Member Return on Investment

Expand pay back analysis to include broader regional economic impact. 1990's based expectation of high return from machinery & tool taxes may be unrealistic in 2000's

Business Plan anticipates delayed return on investment in coordination

with location incentives

2009-10 Morgan

Inventory of large acreage sites in Virginia and the southeast

Develop data base for use in workforce and site strategic planning

Completed for Virginia - Southeast Inventory Incomplete

2011 Morgan

Frequency Initial 2 year cycle of review and re-adoption Coordinate with Site Development Strategic Planning

2009-11 Morgan




Completed Items Shown in ItalicsPARTICIPATION COMMITTEES Commerce Park (Continued)

FINANCE Budgeting Assign to Executive Director Completed 2009 Morgan Revenue Sharing Pulaski County has offered to share real estate taxes Acceptance included in proposed

Amendment #2 to Participation Agreement

April 2010 Morgan

Debt Restructuring Water and sewer infrastructure upgrade financing and interest rate changes warrant refinancing consideration

Consider moving to municipal moral obligation status and/or self financing

versus property secured

2011 Morgan

Raising Capital Seek new capital investment, from both public and private sources

Ongoing 2009-11 Morgan

Surplus Land Disposal List Mebane Home area with Woltz & Associates as approved in concept in July 2008 - Consider auction sale when second six months listing expires

Re-listing with Woltz & Associates approved, with New Dublin Church

buffer reservation, alternatives for more acreage and future auction - dependent

on lender endorsement

2011 Morgan

Surplus Land Disposal Process 62 acre site for public hearing for either public or private sale, per Code of VA 15.2-1800, to insure public input and notice of availability. Site south east of Rhuebush Road (Rt 617) unlikely to be useful to Commerce Park mission other than rail and electric ROW

Hearing held 7-7-07 and Report submitted to CPPC on 8-12-09 - Findings to be considered in site

strategic planning

2010 Straight / Morgan

INVESTORS Public Sector Develop plan for optional additional investment by

current or new member localitiesFor review in 2011 after membership

changes confirmed2010-11 Morgan

Private Sector Develop marketing plan for non-voting shares to finance further site development and infrastructure

For review in 2011 after membership changes confirmed

2010-11 Morgan





MARKETINGThrough Local Economic Developers

Expand networking to PDC's 3 and 5 Underway Ongoing Morgan

Through Regional Economic Development Entities

Expand networking to Roanoke Regional Partnership (PDC 5) and Virginia's aCorridor (PDC 3)

Underway Ongoing Morgan

Through VA Economic Development Partnership

Use VEDP data base to initiate strategic workforce and site strategic planning

Updated VEDP Research and Marketing Leaders twice in 2009 - More update

due in 2011 as W&S construction starts and megasites / workforce research

completed

2009 - 11 Morgan

Through VA Economic Developers Association

Maintain frequent contact with VEDP leadership - Network through VEDA

Ongoing Ongoing Morgan

Through Existing Businesses Develop schedule of calls on major regional employers on 2 year rotation to insure awareness of Commerce Park assets

Requested member governments to assist through existing industry support

programs. Met with Pulaski Encouraging Progress on 10/7/10

2009-11 Morgan

VEDP Right Now Sites Follow up to determine if Commerce Park is feasible for listing as a Megasite, Heavy Industrial Site or Business Industrial Park Site

Updated VEDP Research and Marketing Leaders on 2/5/09 - Commerce Park confirmation as a mega-site needed

2011 Morgan

Multiple Site Offerings Review multiple site layout for compatibility with infrastructure expansion plans and regional site inventory needs as part of strategic planning base information

Lot size availability ranges from 2 to 500+ acres confirmed in Participation

Agreement Amendment #2

2010 Morgan

Presentation Mapping Coordinate update with engineering consultants Updates may be needed to reflect current planning

2011 Morgan

Review of recent prospect information presentations

Use past prospect presentations to develop base for workforce and site strategic planning

Completed March - May 2009

Morgan

Targeted Industries Selection Define targeted industries in coordination with strategic planning

Current recommendations include plastics, solar equipment production, major distribution centers, medical

equipment, micro-electronics, public sector security and cyber-security

equipment - Targets need updating with NRVED Alliance targets and with workforce compatibility plus site

strategic planning

2011 Morgan





SITE MAINTENANCE Agricultural / Residential Leases

Renew under current terms due to uncertainty on infrastructure extension, surplus property disposal, Project Neemo siting and multiple site layouts

2 residential and 3 farm leases in place subject to annual renewal options -

Some in-kind services made in lieu of rent - assignment of farm leases to

Mebane House purchaser considered

2009-2011 Morgan

Mowing Consider coordinating grounds maintenance with NRV Airport and / or local governments

Memorandum of Understanding entered with NRV Airport in return for use of

CPPC tractor/mower, plus supplemental help from renters

ongoing Morgan

Signage Coordinate complimentary signage as park layout develops

New entranced signage installed in 2008 2010- 11 Morgan

Beautification Seek cooperation of neighboring properties on eyesore removal / screening, as well as coordination with NRV Airport and / or local governments

NRV Airport and Pulaski County are assisting - neighboring property owners

to be contacted

2011 Morgan

Environmental Hazards Mitigation

Coordinate with water and sewer extensions Removed July 2009 2009 Straight

Roadways Coordinate extensions with all users Maintenance by VDOT and through agricultural and residential leases

2009 -11 Morgan

SITE DEVELOPMENT2009-11 Water & Sewer Capacity Expansion

Archeological and endangered species studies underway by NRV PDC

Completed 2009 Straight

2009-11 Water & Sewer Capacity Expansion

underway by Pulaski Co PSA Easement acquisition completed 2009 - 10 Ratcliff


Engineering design procurement Awarded by PCPSA to DAA and Anderson and Associates

2009 Straight


Virginia First / Pulaski County PSA grant agreement documentation

Awarded in March 2009 2009 Straight


Pulaski County PSA / City of Radford water capacity agreement

completed 2010 Morgan


Coordinate Rural Development / Economic Development Administration / Federal Stimulus / Private Financing

Commerce Park to assume customer status pledge of 1/3 debt service as an

availability charge

Aug-09 Straight





SITE DEVELOPMENT (continued)Electric Service Upgrade / Substation Location

AEP completed transmission and service upgrade study in 2008 - Coordinate options for upgrade with City of Radford Electric Service and seek financing

option review underway - transmission line easement to be sought

2009 - 11 Morgan

Access Road(s) Extension Coordinate funding options with VDOT and private investors

Routing and funding dependent on future tenant needs

2009 - 11 Morgan

Broadband Upgrade / Extensions

Coordinate service through Commerce Park New River Valley Network Wireless Authority awarded Federal stimulus

funding

2011 Morgan

Boundary Adjustment Complete swap for site desired by Airport with runway access

Swap site accepted by NRV Airport and approved by CPPC 8-12-2009 with

survey and deed preparation completed for final transfer by winter 2011

2009 - 11 Morgan

Protective Covenants Coordinate updates with strategic planning. Existing covenants may not reflect future development plan

Initiation of Development, Covenants and Communications Committee

(DC&CC) authorized 11-19-2009 & first annual meeting held 7-13-10

2009 - 11 Morgan




Completed Items Shown in Italics

OTHER POTENTIAL PARTICIPATION COMMITTEES

Project NEEMOProspectus Development Suggest Commerce Park role in Project NEEMO,

including WWTP site, land dedication & equity shareIdentification of private and public sector

participants underway2009-11 Morgan

Participation Committee Organization

Offer assistance in establishing an administration and financial structure

Participants will require an organizational structure

2011 Morgan

Project Implementation Assist with program of work development as recommended by VA Tech Office of Economic Development

Programmatic versus Capital Facility focus now suggested as described in

NRV NanoFab Business Plan

2010-11 Morgan

NRV Competitiveness Center

Assist with defining options and implementing restructuring

Components of Participation Committee to acquire center to be developed - No

non-taxable advantage to VA 1st participation, but may be more attractive

to members or investors

Jul-10 Morgan

NRV Wireless Authority Offer assistance with developing participation committee and serve as applicant for broadband funding through National Telecommunication and

Pending Federal funding approval and coordination by Citizen's

Telecommunications

2011 Morgan

COMMUNITY RELATIONS

For Virginia 1st Authority and Participation Committees

Recognition of Past Leadership

Schedule an opportunity to express appreciation for Board and staff service

Celebrated service of former Executive Director David Rundgren in summer - fall of 2009 - Consider involving past

leaders in strategic planning

2009-11 Morgan

Publication of History, Achievement & Goals

A concise description of the VA 1st achievements and future goals should be readily available to stakeholders and the general public

Significant resources have been invested in VA 1st organization and

Commerce Park development

2009-11 Morgan


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Documents