Blue Mountain Extended Due Diligence

Project Goal

The Shenandoah Valley Partnership and its member localities have a unique opportunity to jointly develop what could become one of the premier, large-acreage sites in Virginia. The Shenandoah Regional Commerce Park is nearly 500 acres adjacent to the Shenandoah Regional Airport and SHD Aviation Technology Park. Transportation access, proximity to other development areas, control by Augusta County, topography, and extensive due diligence make this site a regional economic development opportunity.

The 496-acre site is located on Airport Road approximately 2.8 miles from I-81. Made up of 13 parcels, the site is optioned by Augusta County. Its adjacency to the airport and tech park are additional advantages. Electric service is onsite and has good capacity and distribution. Water and wastewater are the main constraints of the site and will influence the type of companies locating there. Natural gas is 5.5 miles away, making extension unlikely.

The SVP region has a strong competitive position for business. Since 2021, there have been 25 announcements of new and expanding companies in the SVP region. These announcements represent 2,141 new jobs and $651 million in investment. Manufacturing is the largest employment sector and has a location quotient of 1.87. Employment is growing, unemployment is low, wages are growing, and the cost of living is lower than the national average. Based on the strengths and weaknesses of the site, target sectors of SVP and Augusta County, and the goal to recruit companies that pay above the average wage, we recommend focusing business attraction efforts on metal and automotive, HVAC, electric/electronics, and machinery manufacturing. The marketing strategy outlined for Shenandoah Regional Commerce Center includes online promotion, collaterals, videos, site tours and briefings, presentations to partners and allies, and leveraging SVP’s well-known cooking show.

SVP is exploring forming a Regional Industrial Facilities Authority (RIFA) to develop the park. The goal of a RIFA is to develop a better industrial product through more investors and spread the economic benefit among those investors. In addition to sharing revenue, there is an intangible benefit to collaborating on a regional development strategy that boosts other economic development initiatives. There are several RIFAs across the commonwealth that can be models for an SVP RIFA.

An economic impact analysis was developed to illustrate the potential job creation, labor income, and output effects of full build-out of the Commerce Park. The development scenario includes electronics, motor vehicle parts, HVAC equipment, and machinery manufacturing. The total impact of the development scenario including operations and all of the associated construction activity in the Shenandoah Valley Region is 12,254 total jobs and $3.1 billion in total economic output.

Next steps to advance the Shenandoah Region Commerce Park include updating site data, certifying the site, securing funds for infrastructure and development, forming a RIFA, and marketing the park. Facilitating large scale regional economic development initiatives takes a commitment team of champions who will continue to spotlight the benefits of regional collaboration. Regions with a history of teamwork, like the SVP region, have an advantage in an initiative such as this. They already have a strong foundation from which to launch this project.