The Martinsville Economic Development Authority (EDA) scored a major win with the recent approval of a $1 million grant from the Virginia Tobacco Region Revitalization Commission to help transform the historic American of Martinsville Plant 10 located at 51 Lester Street.
“This is our first big win” since the city’s EDA was reactivated about two years ago, Del. Eric Phillips, chairman of the Martinsville EDA board, said. “It also is the largest grant award” for housing “from the Tobacco Commission to date.”
The grant will be matched with more than $1 million in local contributions — including $403,325 from the Martinsville EDA for site acquisition, $450,000 in anticipated support from local partners, $100,551 from past Environmental Protection Agency (EPA) and Virginia Brownfields Assistance Fund grants and $80,000 from Virginia DHCD’s Industrial Revitalization Fund Planning Grant — bringing the total investment in pre-development and stabilization work to more than $2 million.
“This is more than a redevelopment—this is a generational investment in our community,” Phillips said. “The reuse of Plant 10 will breathe new life into Uptown, attract talent, spur business, and honor the industrial legacy that helped shape Martinsville.”
The funding will support environmental and structural assessments, architectural and engineering design, site preparation and stabilization and remediation and infrastructure planning.
The 98,000 square-foot former furniture factory will be redeveloped into a 100-unit mixed-use building with street-level retail and community amenities. The project aims to address local housing needs and fits the city’s vision for revitalizing Uptown Martinsville.
The site is located steps from the Dick & Willie Passage Trail and one block from Courthouse Square, putting it in a prime position to drive further investment in housing, infrastructure, and public space. “We’re deeply grateful to the Tobacco Commission and our local partners for believing in our future,” Phillips added.
Eric W. Payne, executive director of the Martinsville Economic Development Authority, will manage the project along with partners including the City of Martinsville, the Harvest Foundation, Uptown Partnership and the Martinsville-Henry County Economic Development Corporation.
“We are proud to bring new purpose to one of Martinsville’s most iconic industrial sites,” Payne said. “This is a foundational project that will deliver real economic and community value for decades.”
Payne, who has served in the top role since July 1, said the grant application was due July 17, giving the EDA about two and a half weeks to prepare the proposal. He learned the application cleared a subcommittee on Sept. 23 and won final approval from the commission the next day.
He was notified that the city received the grant on Day 86 of his tenure. “I could not have asked for a better 90 days,” Payne said.
“I’ve been involved in economic development at the federal, state and local level since the 1990s, including serving as chief of staff at the US Department of Commerce’s Economic Development Administration,” Payne said. “This local Martinsville EDA Board is one of the most experienced, skilled and qualified local EDAs I’ve seen. Martinsville is uniquely situated to become full participants in the rising economic tide of opportunity happening all around us.”
The project builds on a 2022 feasibility study by CJMW Architecture and housing research by Novogradac Consulting, according to a city release. It is a key part of the EDA’s plan to support 500 new housing units in the area through coordinated public and private investment.
“American of Martinsville, 51 Lester, has the potential to be a cornerstone of Uptown’s future,” said Mayor LC Jones. “This investment accelerates our vision of a vibrant, connected city where history meets innovation—and where residents can live, work, and thrive.”
Kate Keller, president of the Harvest Foundation, added, “We are proud to support this community-driven initiative. This project reflects the resilience and forward momentum of Martinsville.”
Pre-development work is expected to begin in the coming weeks, with a projected timeline of five months to prepare the site for full redevelopment. The EDA plans to use historic tax credits and other incentives to support construction and long-term operation of the mixed-use development.
“We are excited and ready to get to work,” Phillips said. “Special thanks to TRRC Executive Director James Campos, Deputy Director Stephen Versen, Southern Regional Director Sarah Capps, and our grant writer Catherine Van Noy, whose collaboration was essential in making this happen.”
