Funds in the form of a loan have been directed to the upcoming hemp processing facility, known as Project Phoenix, to be located in the J. Aubrey Houghton Industrial Park on Hamilton Boulevard.
South Boston Town Council at its Monday evening meeting approved a $300,000 loan from the town of South Boston to the South Boston Industrial Development Authority for Project Phoenix.
Town council took the action after a closed session discussion of the economic development project. Councilman Winston Harrell made the motion to approve the loan, and Councilman Michael Byrd seconded the motion.
Halifax County officials plan to officially announce details of Project Phoenix sometime in June, county administrator Scott Simpson said in May.
A grant application the Halifax County IDA submitted to the Virginia Tobacco Region Revitalization Commission for the facility revealed that Project Phoenix is a proposed $6.6 million hemp processing facility.
Project Phoenix is expected to purchase $50 million in hemp from Virginia’s farmers in just three years, with 41 direct employees and hundreds of ancillary jobs, according to the IDA’s grant application to the tobacco commission. By the end of the year, 23 full-time employees are expected to be hired, and 432,000 pounds of hemp are expected to be purchased for production, the grant application states.
The Halifax County Board of Supervisors in a May 15 meeting approved a pair of resolutions on Project Phoenix. One of the resolutions that the board approved is a support agreement with the Halifax County IDA and American National Bank & Trust Company. The bank has agreed to loan the IDA up to $2.6 million to finance the project.
The second resolution on Project Phoenix approved by the board of supervisors authorizes economic development incentives and a $250,000 grant agreement with the tobacco commission to which the county has applied for the project.