GRUNDY, VA – NOVEMBER 30, 2023 –  A $1.53 million loan to be used to construct a new 20,000-30,000-square-foot shell building at Southern Gap was closed recently between the Virginia Coalfield Economic Development Authority (VCEDA) and the Buchanan County Industrial Development Authority (IDA).

The Buchanan County IDA is currently without a single industrial type building to market. The last industrial building constructed by the IDA was an 80,000-square-foot shell building built in 2019 as part of Phase II of the IDA’s Southern Gap industrial park. It was immediately taken by a local manufacturer, Paul’s Fan Company.

“As leads for new projects and expansions are developed, having available and ready industrial property to market is very important,” said VCEDA Executive Director/General Counsel Jonathan Belcher. “The current lack of marketable industrial buildings is causing Buchanan County to lose out on many opportunities and requests for proposals from prospective businesses. We are pleased to see the IDA take this step forward to build a new marketable building.”

The building is projected to be in the 20,000-30,000-square-foot range and will be expandable to 50,000-square-feet, which is the largest size the site currently can accommodate. The proposed location for the building is on approximately five acres, located near Paul’s Fan Company. The location is less than a half mile from the US 460/US 121 (Coalfields Expressway) Southern Gap intersection, which is now open from Kentucky to Southern Gap. The remaining sections from Southern Gap to Grundy are projected to open by 2027.

“There has been a shortage of available marketable buildings in the area for quite some time” said Buchanan County IDA Executive Director Matt Fields. “I’m very happy we can construct this new shell building to take advantage of the ever-growing demand here at Southern Gap. This building’s construction, alongside the opening of a section of the Coalfields Expressway will allow the marketability of this building to be even greater and it will allow us to be more competitive for securing projects and new jobs to the area. The future of Buchanan County is looking brighter and brighter each day.”

About Virginia Coalfield Economic Development Authority and Southwest Virginia’s e-Region: The Virginia Coalfield Economic Development Authority, created by the Virginia General Assembly in 1988 to enhance and diversify the region’s economy and help create jobs, markets Southwest Virginia’s e-Region and its focus on electronic information technology, energy, education, emerging technologies, and entrepreneurship. VCEDA is a unique economic development organization that manages funds for economic development projects from a percentage of the coal and natural gas severance taxes paid by coal and natural gas companies that operate in the region. Located in southwestern Virginia, the region includes Buchanan, Dickenson, Lee, Russell, Scott, Tazewell, and Wise counties and the City of Norton. or