Title
Resolution Approving the Assignment of a Commonwealth's Development Opportunity Fund Performance Agreement from HII Technical Solutions Corporation to Huntington Ingalls Incorporated
Purpose
PURPOSE/BACKGROUND:
By resolution, on September 23, 2020, City Council approved the City of Hampton's (the "City") participation in a Commonwealth's Development Opportunity Fund ("CDOF") Performance Agreement to facilitate the transfer of certain grant funds to be received from the Commonwealth of Virginia pursuant to an award by the Governor through the Virginia Economic Development Partnership Authority ("VEDP") to the Economic Development Authority of the City of Hampton, Virginia ("EDA"), to ultimately be disbursed to HII Technical Solutions Corporation ("HII TSC") for the purpose of inducing HII TSC to acquire, construct, equip, and improve a facility, to be known as the Unmanned Systems Center of Excellence (the "Facility"), in the Hampton Roads Center North ("HRCN") area of the City to design, assemble, and manufacture unmanned systems, provided the HII TSC meets certain criteria relating to capital investment and new job creation. Due to changes in circumstance outlined below, HII TSC desires to assign its rights and obligations under the CDOF Performance Agreement to Huntington Ingalls Incorporated.
Discussion:
In late 2019, HII TSC sought to construct an Unmanned Systems Center of Excellence focused on the construction of extra-large unmanned underwater vehicles (“XLUUV”) as a subcontractor to Boeing which had received the prime contract for the vehicles. In early 2020, following a multi-state search to identify an appropriate location, the Company opted to construct the facility in the City of Hampton. Based on HII TSC's commitments to make $46M in capital investment and create 268 new jobs, the Commonwealth and the City of Hampton offered a variety of incentives including a Commonwealth Development Opportunity Fund Grant and a Transportation P...
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