EDA

Economic Development Access Program

The Virginia Department of Transportation (VDOT) administers this program which assists localities in providing adequate road access to new and expanding manufacturing and processing companies, research and development facilities, distribution centers, regional service centers, corporate headquarters, government installations, and other basic employers. The program may be used to: improve existing secondary highway system roads and city streets to accommodate the anticipated additional and type of traffic generated by an eligible economic development site; and to construct new roads from a publicly maintained road to the new eligible establishment’s primary entrance when no road exists.

Discretionary , Infrastructure , VDOT

Background

 

The Economic Development Access (EDA) Program is administered by the Department of Transportation and is governed by § 33.2-1509 of the Code of Virginia.  The Program’s goal is to assist local governments in attracting or facilitating the expansion of qualifying business operations to the economic benefit of the locality and the Commonwealth.  Program requirements include the establishment of qualifying business operations and documentation of new capital outlay associated with the business operation on property served exclusively by the access road improvement project.

 

Program Evolution

 

The program formerly referred to as Industrial Access has its origins traced to 1946 and has undergone several changes in its administration over time.  However, funding had not specifically been appropriated  for the purpose of constructing roads to serve industrial sites  until the 1956 General Assembly enacted legislation to establish an amount for such a program in the state budget.  Over time, the annual appropriation amount and the maximum limits awarded to localities for projects has increased.  The option to bond a project, in lieu of an established business, was introduced in 1980.  Most recently, in 2009, the maximum unmatched annual allocation a locality could receive for a project or projects was increased from $300,000 to $500,000 and the required value of a qualifying business’ new capital outlay required to be documented warranting the allocation expenditure was adjusted from $10:$1 to $5:$1.  In 2012, in recognition of the initiative to attract a Major Employment and Investment (MEI) development where investment and jobs were anticipated to exceed $250 million and 400, respectively, the EDA Program established separate maximum allocation amounts for the design of the access road project and the possibility of two successive fiscal years’ maximum allocations for constructing the project for such a development.

 

Economic Development Access Program Success Stories

 

Town of Leesburg – K2M Company

In January 2015, the Town of Leesburg requested a project and funding under EDA Program to provide adequate access to serve K2M Company, which had announced its plans in December 2014 to relocate and expand its operation. K2M Company’s anticipated new capital outlay and the access road project’s estimate warranted the maximum Program allocations of $500,000 (unmatched) and $150,000 (matched) approved by the Commonwealth Transportation Board at its February 2015 meeting. Ultimately, the Town was able to document to the Department of Transportation sufficient capital outlay by K2M in May 2015, and the Town was able to be reimbursed under the project administration agreement according to the provisions of the Program allocation.

City of Chesapeake – Stepping Stone Square

In June 2013, the City of Chesapeake requested assistance under the EDA Program to provide adequate access to serve a 20-acre parcel under the Program’s bonded option.  The proposed project’s estimate warranted the maximum Program allocations of $500,000 (unmatched) and $150,000 (matched) approved by the Commonwealth Transportation Board at its July 2015 meeting.  Under the bonded option, although the locality did not currently have a committed qualifying business prospect and the required capital outlay amount supporting the construction cost, the project proceeded in anticipation of this contingency being satisfying within 5 years of the project’s approval.  In early February 2015, the expansion and relocation of Oceaneering International, Inc. operations to the Steppingstone Square parcel was determined to qualify under the Program and, later that month, the City of Chesapeake was able to document sufficient qualifying capital outlay by Oceaneering International thereby releasing the City of its obligation to maintain the bond in the amount of the project allocation.

 

Economic Development Access Program Contact

 

If you have questions about the EDA Program, or would like to speak with the Program Manager, please contact Michaela McCain either by phone at 804-786-2744 or by email.

Contact:

Michaela McCain