The Virginia Small Business Finance Authority is lending Danville’s Industrial Development Authority almost $3 million to put toward a commercial property occupied by a UK-based electric sports car manufacturer. The IDA will use the money to pay off debt on the building and make other improvements.
The VSBFA requested that the city of Danville agree to pay back the loan, should the IDA be unable to.
The city council will vote on whether to approve this agreement, called a moral obligation support agreement, at its meeting Tuesday at 7 p.m. This type of agreement is a moral, but not legal, commitment to avoid defaulting on payments.
If the council approves it, the city will assist the IDA in paying back the 10-year loan, if necessary.
According to the proposed agreement, the IDA must notify the city manager of any deficiency amounts by May 15 of each year so that it can be accounted for in the city’s budget for the upcoming fiscal year, which begins July 1.
The IDA incurred debt with Union Bank related to the property located at 1350 Barker Road in Cane Creek Industrial Park in Pittsylvania County, where RBW Electric Cars will operate, according to the meeting’s agenda packet.
The manufacturer announced that it would locate in Pittsylvania County in 2024, with operations scheduled to begin in early 2025. The project is the company’s first U.S. location, representing $8 million in investment and promising to create 144 jobs.
The Pittsylvania facility will produce RBW’s first left-hand drive electric classic sports cars — Roadster and GT models — for the U.S. market. These cars are currently only built at RBW’s facility in Lichfield, England, where the company is headquartered.
Assisting the IDA with this loan, if necessary, would not create debt for the city, according to the agenda packet.
City staff recommends that council approve the moral obligation support agreement to “promote industry and increase commerce” in Danville and Virginia, according to the packet.
The full materials for this agenda item, including the proposed agreement, can be found in the meeting packet. This is the only meeting in Danville this week.
In Pittsylvania County, the board of zoning appeals will meet at 6 p.m. Monday, and the planning commission will meet at 7 p.m. Tuesday.
