The Henry County Industrial Development Authority (IDA) approved a real estate contract and development agreement with the Marlboro Development Team (MDT) for the construction of a shell building on Lot #2 at the Patriot Centre Industrial Park at its December 19 meeting.
This is the first time the county has entered into an agreement with a private developer to construct and market an industrial site.
“The real estate contract will facilitate the transfer of approximately 20 acres of land on Lot #2 to MDT Inc.,” County Administrator Dale Wagoner said. “MDT will be responsible for all costs related to the construction and will also assist with marketing the building to prospective industries.”
Wagoner said the agreement obligates the IDA to share in the carrying costs of the building once it is constructed until it is sold or leased to an industry.
“The IDA will be responsible for 50 percent of the carrying costs and MDT will be responsible for 50 percent of the carrying costs” for the 105,000-square-foot building, he said.
Wagoner said the arrangement is a win-win for the community.
“We will be able to leverage MDT’s expertise in marketing speculative buildings and construction administration, while MDT will be able to expand their footprint into Virginia,” he said.
William Fleming, president and CEO of MDT, said the company is excited to extend its speculative building program into Virginia.
“Martinsville, Henry County, Virginia, has proven to embody the precise characteristics of a community we seek to establish relationships with, fostering the pursuit of advanced manufacturing through the development of market-ready buildings,” he said.
The IDA also entered into a funding agreement with the Martinsville-Henry County Economic Development Corporation (EDC) as it relates to the carrying costs of the shell building.
Wagoner said the EDC is committing to paying the IDA’s share of the carrying costs annually as long as it continues to receive funding from the Harvest Foundation that can be used for that purpose.
“The cost of construction has increased significantly since 2014,” said James McClain, chairman of the Martinsville-Henry County Economic Development Corp. (EDC). “However, shell buildings remain an essential part of our economic development strategy.
“They provide turnkey options for businesses, allowing them to cut costs, save valuable time, and streamline their production process. This partnership with MDT will allow us to” offer that option once again to prospective businesses, he said.
The last time a shell building was constructed in the county was in 2014. Construction of that facility cost approximately $3.2 million.
Later Tuesday at its December 19 meeting, the Henry County Board of Supervisors also approved the real estate contract, the development agreement, and the shared funding agreement.
“Our team is always looking for innovative ways to position Henry County as a leader in the advanced manufacturing sector,” Jim Adams, chairman of the Henry County Board of Supervisors, said. “We are confident that this new shell building will be a valuable asset to our community, and we are grateful for the partnership with MDT.”
Wagoner said the goal is to start the project in spring 2024 and finish it in spring 2025.
In other matters, the authority:
*Approved the September 13 meeting minutes.
*Approved the accounts payable.
*Heard updates on the Dick & Willie Trail.
*Approved the recommended changes to the Commonwealth Crossing Business Centre (CCBC) Revenue Sharing Agreement.