Speed to Build: West Virginia Gov. Morrisey launches $40M site readiness initiative

CHARLESTON - Gov. Patrick Morrisey launched Tuesday a new multimillion-dollar investment by West Virginia in industrial site readiness to boost West Virginia's economic growth and business competitiveness.

In a press conference Tuesday afternoon in the Governor's Reception Room, Morrisey announced $40 million in funding through the state Economic Development Authority for upgrades for industrial sites across the state.

"This is the largest competitive site development initiative in our state’s history, and it’s designed to help us compete for the next wave of private site development," Morrisey said. "We have to take advantage of our strengths, and our strengths are going to be speed to build, leveraging our energy resources and investing in our people."

The initiative will be funded in two parts: the Mountain State Ready Shell Building Loan Program and the Mountain State Site Readiness Grant Program, both managed by the EDA.

Of the $40 million, $25 million will go toward the Mountain State Ready Shell Building Loan Program. The EDA will provide loans up to $5 million to help local communities construct prefabricated buildings between 30,000 and 50,000 square feet. The program will offer flexible financing, with loan payments deferred for up to two years post-construction or until the building is leased and/or sold.

Morrisey said businesses choosing to locate in these shell buildings must commit to paying at least 120% of the median wage in the county where the facility is and agree to create at least one job for every 750 square feet of building space.

"We’re looking for results here. That’s what this is all about. Accountability and results," Morrisey said. "We’re not just trying to get buildings constructed or trying to attract employers who provide good careers and help raise income in their communities. This has always been a big part of what we’re trying to do: lift up our standard of living (and) go after poverty aggressively in West Virginia."

The other $15 million will go to the Mountain State Site Readiness Grant Program, which will target undeveloped land with high economic potential requiring environmental testing, engineering work, grading, road access improvements or utility extensions. Award recipients must begin site work within six months of receiving funds, with priority given to sites with existing prospective employer interest or co-investment commitments from local/private partners.

"We’ve been doing site readiness in the past, but this is an important investment because there’s a lot of land that’s available that has economic potential, but it may be not quite ready at this time," Morrisey said. "The property may need a little bit of environmental testing or engineering work. It may need some grading, (improved) road access or extension of water, sewer, gas or electrical service. I think through this, we’re going to, once again, be more competitive with the other states that we touch."

Morrisey has focused on engaging neighboring states in a "backyard brawl" to compete for economic development and jobs, touting more than $96 billion in potential investments from various economic development announcements made since he first took office nearly two years ago, with projections of 19,000 jobs from those investments.

Morrisey said that prioritizing "the fundamentals," like infrastructure and workforce development, is better than engaging in expensive corporate bidding wars with other states using tax dollars, which have been used as incentives to bring manufacturers to the state in the past through EDA loans.

"We took a different approach. Some people didn’t like it. We’re going to double down on that approach, which is making the fundamentals work,' Morrisey said. "If you have good roads and good bridges and invest in your workforce, that’s superior (to) corporate welfare, trying to buy all these companies.

"We want and we have a lot of good incentives. They’re going to help companies move here. Good regulations, they're going to help companies move here," he continued. "We’re going to invest and have the right incentives. But simply trying to buy our way to the next level doesn’t work."

Steven Allen Adams can be reached at sadams@newsandsentinel.com.