1. The New Southeast AerospaceCluster1

2. THE NEWAEROSPACECLUSTER IN THESOUTHEAST USAEliot NormanEliot NormanWilliams MullenWilliams Mullenwww.williamsmullen.comwww.williamsmullen.comenorman@williamsmullen.comenorman@williamsmullen.com001/804.420.6000001/804.420.6000Washington, DC USAWashington, DC USAJohn Elink-SchuurmanManaging Director-EuropeBusiness AttractionVirginia Economic Development PartnershipPhone: 804-545-5756Mobile: 804-305-1756jelink-schuurman@yesvirginia.orgwww.yesvirginia.org2 3. Part I: Introduction3 4. Des notions essentielles :exemples des journaux Walll Street Journal: Observation dunBelge(Olivier Legrain, CEO , Ion Beamapplications) (proton therapy): theentreprenurial spiritto me, is part ofthe DNA of America) Le Figaro: Gaz de Schiste (USA)4 5. 5 6. La Carte6 7. 7 8. 8 9. 9 10. THE NEWAEROSPACECLUSTER IN THESOUTHEAST USAPart 2: Les NouvellesPart 2: Les NouvellesOpportunitsOpportunits10 11. Mobile, AL (Airbus) Melbourne, FL (Embr) Savannah, GA (Gulfstream-General Dynamics) Charleston, SC (Boeing) Greensboro, NC (Hondajet) Durham, NC (GE Aviation) Prince George, VA (Rolls-Royce) 11 12. INVESTMENTS Gulfstream Savannah, GA Announced in 1966 and has grown since By 1982, 2,500 employees 2006: $400 million 7-year plan to expandmanufacturing and service facilities (additional1,100 jobs) Research and Development Center 750employees 2007: additional manufacturing and engineeringbuildings 2010: $500 million 7-year expansion (additional1,000 employees)12 13. INVESTMENTS Hondajet Greensboro, NC $60 million/300 jobs for HQ $80 million/419 jobs for manufacturingplant Announced February, 2007 World headquarters and MaintenanceRepair and Overhaul (MRO) andcomponent parts manufacturing plant 500,000 square feet on 80 acres13 14. INVESTMENTS GE Aviation Durham, NC 320 jobs Announced in 1993 and has grown since 500,000 square feet on 500 acres Aircraft engines (GE90 and GEnx) Expansion into South Carolina: turbineblades and airfoils14 15. The Big 3 Rolls Royce Boeing Airbus15 16. INVESTMENTS Rolls-Royce Prince George, VA $500 million/500 jobs Announced November, 2007 1,100 acre site with supplier park First factory - $170 million / 150 jobs (180,000 s.f.) Manufactures turbine disc components forDreamliner (Boeing 787) and Airbus 380 Second plant to be announced in 2012: Third factory: in near future Founder: Commonwealth Center for AdvancedManufacturing (CCAM)16 17. South Carolina17 18. INVESTMENTS Boeing Charleston, SC $750 million/3,800 jobs (some expectgreater than 6,000 jobs by 2016) Announced October, 2009 787 Dreamliner final assembly anddelivery line: deliveries began April2012. now manufacturing interiorcomponents 1.2 million square foot facility 18 19. INVESTMENTS Airbus - Mobile, AL $600 million/1,000 jobs Announced July, 2012 A320 family jetliner final assembly line Only site in Western Hemisphere toassemble Airbus aircraft Airbus and parent EADS NorthAmerican Headquarters are in NorthernVirginia19 20. AlabamaWelcome, Airbus!The future home of Airbus U.S. A320 Family final assembly line is strategically positioned to benefit from water, road, rail and air links facilitating the companys first-ever production of jetliners on American soil.This production facility will comprise 53 acres of buildings, aprons and roadways contained within a 116 acre site with the option forfuture expansion. The location at Mobile, Alabamas Brookley Aeroplex places it in the middle of the Gulf Coast aerospace cluster, betweenMississippi and the Florida Panhandle.Being situated on Mobile Bay adjacent to the Port of Mobile will enable Airbus to deliver fully-equipped aircraft sections from theEuropean continent to Brookley Aeroplex via standard freight container ships.Some U.S.-origin parts for jetliners built at Brookley Aeroplex will be supplied directly to the facility using the Class 1 network ofrailroads and interstate road system that serve the region.Flight testing and customer delivery of A320 Family aircraft from the U.S. final assembly line will be made at Mobile Downtown Airport,located within the Brookley Aeroplex, which has two existing runways with lengths of 9,600 ft. and 7,800 ft.Airbus Alabama Location Airbus Assembly Line ViewLocation: Mobile, AlabamaAnnounced: July 2, 2012Production Start: 2015Products: A319, A320, and A321aircraftInvestment: $600 millionJob Creation: 1,000 jobs within theproduction facilityThe time is right for Airbus to expandin America. Mobile is now becomingpart of Airbus global productionnetwork, joining our successful andgrowing assembly lines in Hamburg,Toulouse and Tianjin.- Airbus President & CEO Fabrice Bregier Economic Development Partnership ofAlabama www.edpa.org 21. THE NEWAEROSPACECLUSTER IN THESOUTHEAST USAPart 3: Les OpportunitsPart 3: Les OpportunitsSupplmentairesSupplmentaires Government Business HQ for U.S. Operations Space Sector Using Southeast asManufacturingCenter for WorldwideExports 21 22. Its not just about CommercialBusiness Department of Defense Dollars and Military Orientation of Boeing, EADS, Government sales Virginia $56+ Billion #1 among 50 States, 5,000 DefenseContractors in Virginia Defense Contractors HQ Northern Virginia:General Dynamics, Northrup Grumman, BoeingSAIC, Booz Allen, CACI, CSC, Raytheon, Thales,etc. So Locate where the decisions are made South Carolina $3 Billion Alabama $10 Billion Alabama : HuntsvilleAerospace/Defense Community Huntsville Marshall Space FlightCenter Consider State Government Business (50 Customers)22 23. Headquarters HQ Solution: la banlieue virginienne deWashington DC23 24. HQ: Fairfax County (Va)Location Prime US east coastlocation. Washington, D.C. metroarea 60% of the U.S.population within one totwo-hour flight of FairfaxCounty: Washington-Baltimore-Northern Virginia area is4th largest US market Immediate ACCESS toU.S. Government andDept. of Defense (Population 8.7 million)24 25. ;25 26. Foreign-owned Firms (395)26 27. European CompaniesSources: Fairfax County Economic Development Authority, Dun & Bradstreet27 28. .. of which are Aerospace Firms28 29. SPACE Business Strong in the Southeast29 30. Case Example: HuntsvilleAlabama Marshall Space Flight Center Responsable for launch vehicles, propulsionsystems, space station programs Heritage: Werner Von Braun and RedstoneArsenal (U.S. Army): Saturn V Rocket, Apollo4, rocket boosters for Space Shuttles 400 aerospace/defense companies Boeing, Lockheed Martin, SAIC, NorthrupGrumman, Raytheon, Teledyne Brown30 31. Case Example: Space inVirginia and NASA Space launches from NASA Wallops Flight Facility Mid-Atlantic Regional Spaceport (MARS) $145 investment in launch pad by VirginiaGovernment Orbital: 10 Missions with Antares Rockets toInternational Space Station Begin April 2013 Space systems integration expertise atNASA Langley Research Center Orbital Sciences Corporation manufacturessatellites near Dulles Airport, Virginia31 32. Aerospace Exports from the United States:Another Reason to Manufacture dans la ZoneDollar? A growth opportunity Comment y participer? Size of U.S. Aerospace Exports Market: $85Billion 72% of all civil aircraft and componentproduction: exported from the USA 42% of all U.S. aerospace production is exported Positive Trade Balance: $44 Billion for U.S.Aerospace Industry Southeast mirrors national figures32 33. Aerospace Exports from U.S. Alabama:ALABAMA33 34. Southeast: Center for Exports Supply Chain Logistics Volatility of Currency Exchange Rates Dollars against the Euro Contracts: in Dollars Lower Production Costs than EU Government Incentives favoringExports Foreign Trade Zones (FTZ) Export-Import Bank www.exim.gov 34 35. IC DISC StructureSummary of Benefits1. IC DISC can be paid commissions Statutory formula not required to be ArmsLength Greater of - 4% of gross export sales from theUSA, or 50% of taxable income on those sales2. Can get Rate Arbitrage Commission deduction up to 40% benefit (Fed &States) Payment from IC DISC to Qualified Foreign Co likely zero Withholding Tax. Replaces dividends from fully taxed income ofABC Aerospace, Inc. (USA) with deductiblecommissions followed by Dividend from IC-DISC3. IC DISC may also be used for export finance May receive factoring fees of 2-3% Additional Commission $3M for $100M exportsales, resulting in additional $1.2M tax savingsIssues1. Need to structure properly to get rate benefitABC Aerospace SA(Toulouse)ABC Aerospace USAInc. (South Carolina)(deducts Commissions)IC DISC (ABC Exports, Inc.Non-taxable(South Carolina)CommissionsDividendsBottom Line: Reduce U.S. Taxes on Exports by 35% to 40%. 36. IC DISC Structure Illustrative ExampleSummary of Calculation1. IC DISC calculates commissions Determines Export Sales and related COGS Assumed 25% Gross profit here Allocates and Apportions SG&A Assumed 10% SG&A on export sales2. IC DISC receives commissions 50% of taxable income on export sales3. IC-DISC may also receive factoring Income4. IC-DISC is not taxed on its profits5. IC DISC pays dividend to foreign owner Payment from IC DISC to Qualified Foreign Co likely five percent or zero Withholding Tax.Issues1. Maximization of benefits needs to be calculated correctlyIC-DISC12/31/2012TAX IMPACT OF DISCNo detail considered - 25% Gross ProfitSales 100,000,000COGS (75,000,000)Gross profit 25,000,000S.G.& A. * (10,000,000)Net income 15,000,000Commission calculation:4% of sales 1 4,000,00050% of profits 2 7,500,000Commission (greater of 1 or 2) 7,500,000= Taxable income of IC-DISCTax benefit C-Corp 40.0% 3,000,000Dividend withholding tax ** 5.0% (375,000)Tax savings Fed & states 2,625,000(Based on 0% Dividend W/H Rate)* SG&A on export sales generally less as exclusions applyAssumed overall net profit achievable on exports 15%.** Based on 5% withholding TaxFor Illustration Purposes only 37. IC DISC provisions have been in US tax code since 1971 IC DISC is nontaxable and can be owned by a non-US company If IC DISC owner is owned by a shareholder who has a treaty with the USA thatwas ratified after 1984 the tax treaty would control the taxation of the dividend paidfrom the IC DISC to its parent last in time rule Under certain circumstances the US / Denmark treaty the withholding tax rate iszeroHow an IC-DISC works: IC DISC ABC Exports, Inc. is formed as a sister company to ABC AerospaceUSA , Inc. ABC Aerospace USA, Inc. pays IC-DISC ABC Exports, Inc. a commissionon onexports ABC Aerospaced USA , Inc. deducts commission from ordinary income taxed at35 percent federal tax (possibly it is also deductible for state tax purposes) IC-DISC ABC Exports, Inc. pays no tax on the commissions on exports IC DISC can pay a dividend to ABC Aerospace SA, Toulouse, France, effectivelyrepatriating 50% of the profits on Exports to France Result is 35 40% percent tax savings on commissions and substantial subsidyto finance exports or other operations of ABC Aerospace USA, Inc. in the UnitedStates.Summary of IC DISC Incitations Fiscales 38. Conclusion : Les Opportunitesdans le Sud-Est des USA1. Boeing, Embraer, Rolls Royce, Airbus, GeneralDynamics, GE/Honda, GE, etc.2. Defense Department Business & 50 States3. Establish an HQ for commercial and governmentbusiness near Washington D.C.4. Worldwide Manufacturing Center for Exports avec les incitations fiscales du gouvernementfederal 5. Space and Aerospace6. Multiple Customer Market:38 39. PART 4: WHY THE SOUTHEAST?Answer: The 50 States:are not all the same.No Accident: New AerospaceCluster Is in the Southeast39 40. WHY THE SOUTHEAST? Quality of Life low crime rate availability/quality ofhealth care cost of living recreational opportunities cultural opportunities quality of education (K-12 & universities) housing opportunities and costs 40 41. THE NEWAEROSPACECLUSTER IN THESOUTHEAST USAPart 4: Pourquoi LePart 4: Pourquoi LeSoutheast?Southeast?John-Elink SchuurmanJohn-Elink SchuurmanDirecteur,Directeur,Virginia Economic DevelopmentVirginia Economic DevelopmentPartnershipPartnership41 42. WHY THE SOUTHEAST?Top states for business(Virginia)Forbes.com CNBC Pollina Corporate Real Estate, Inc.#2 Best States for Business #3 Top States for Business #2 Most Business Friendly StateForbes.comBusiness costsLabor SupplyRegulatory EnvironmentEconomic ClimateGrowth ProspectsQuality of LifeCNBCCost of Doing BusinessWorkforceQuality of LifeEconomyTransportation & InfrastructureTechnology & InnovationEducationBusiness FriendlinessPollina19 business climate categories includingtaxes, human resources, right-to-worklegislation, energy costs, infrastructurespending, worker compensationlegislation, and jobs lost or gained13 state government-controlled factorssuch as financial incentive programs andstate economic development departmentevaluations42 43. 43WHY THESOUTHEAST? 44. WHY THE SOUTHEAST?Resources:TransportationSitesInfrastructure44 45. WHY THE SOUTHEAST? Sites availability of sites, including airportsites need large sites under control engineered, etc. all utilities rail access, etc.45 46. WHY THE SOUTHEAST? Lower operating costs electricity costs 5.9cents per KW Hour (SC)6.15 cents per KW Hour (VA)California (9.2 cents) New York (12.49 cents) lower taxes land costs (often donated) lower workers compensation rates lower unemployment insurance rates 46 47. Why the Southeast Transportation assets: Southeast may be#1in USA Ports: Norfolk, Charleston, Mobile,Savannah : deep water, supply chainadvantages. Panamax at Norfolk Airports: VA: 9 commercial, 57 general aviation, 47 FAA repairfacilities, MRO firms employ 1400 persons Dulles International: 34% lower costs for air cargothan JFK in NY, next day service to Southeast Alabama: airports important for Airbus and MRO:(Mobile 6,000 ft and 7,000 ft runways) Roads I-55, I-95, I-85 I-77 (multiple interstates) Rail (Norfolk Southern and CSX) 47 48. A look at the Map48SAME DAY DELIVERIES THROUGHOUTTHE SOUTHEAST 49. WHY THESOUTHEAST?Government = pro-businessYes, there are variations among theYes, there are variations among thestates in terms ofstates in terms of regulation of businessregulation of business encouraging businessencouraging business49 50. WHY THE SOUTHEAST? Pro-business regulatory environment taxation environmental OSHA government attitude is friendly towardmanufacturing Legal issues (to discuss later)50 51. WHY THE SOUTHEAST? Right to work States important consideration Union penetration 2% to 4% all Southeastern US states have right towork laws51 52. WHY THE SOUTHEAST? Workforce skilled trades training programs community colleges availability of workers52 53. WHY THE SOUTHEAST? Wages plus Qualite de Vie MakesSoutheastcompetitive53 54. Workforce Advantages :Example of South Carolina Right to work state Rate of unionization in manufacturing: 1.6%: 2ndlowest in USA Low cost business-friendly climate 180 related aerospace companies, 20,000 workers South Carolina a t class No.1 lchelon national poursa part de main-duvre employe par des entreprisestrangres. En 2009, les investissements trangersreprsentaient 19% du capital dinvestissement et 13% desemplois totaux crs.54 55. Workforce Advantages:Example of Virginia Right to Work State 8,900 people in Virginia make aerospaceproducts 4,000 people in Virginia make compositeproducts 5,300 people in Virginia work in machineshops TOTAL AEROSPACE Workforce: 29,200 at230 firms 55 56. WHY THE SOUTHEAST? Large Number of Graduates fromUniversity Engineering Programs NASA (provides a highly qualifiedaerospace engineering pool) NASA Langley (VA) NASA Stennis (AL) NASA Melbourne (FL) 56 57. Part Five: WhatMethodology andAnalysis ShouldApply to a Decisionto Locate within theSoutheast AerospaceCluster ?Key Factors:Key Factors:Long-term not short-term;Long-term not short-term;Can you be competitive?Can you be competitive?Innovation and R&D;Innovation and R&D;Avoid dependence on 1 customer;Avoid dependence on 1 customer;Multiple Markets and Customers:Multiple Markets and Customers:Government &, Commercial;Government &, Commercial;Incentives and Long-Term BusinessIncentives and Long-Term BusinessCostsCosts 57 58. VIRGINIAS COMPETITIVE COST OF DOING BUSINESSUSE THIS CHART FOR OTHER STATES: ALABAMA,SC, NC, GEORGIAVirginiaRight-to-Work Yes6.00%Single Sales Factor Apportionment YesSales and Use Tax 5.00%Average Workers Compensation Insurance for Manufacturers(VA 44% lower than National Avg., 4thlowest in Nation)(Loss cost portion for code 4484companies engaged in composites and relatedmanufacturing is $1.65)$2.09Unemployment Insurance Tax Per Employee (VA 32% lower than NationalAvg., 3rdlowest in Nation)$155Average Industrial Electric Rate (cents per kilowatt hour--8% lower than nationalaverage)6.15Average Price of Natural Gas Delivered to Industrial Customers(dollars per thousand cubic feet)6.68State Corporate Income Tax58 59. VIRGINIAS AEROSPACE STRENGTHS : COMPAREWITH OTHER STATES USING SAME CRITERIA: SOUTHCAROLINA, ALABAMA, NC, GEORGIA, ETC.MilitaryR&DSpaceAirportsMFG59 60. INVESTMENTS Rolls-Royce Prince George, VA $500 million/500 jobs Announced November, 2007 1,100 acre site First factory- $170 million / 150 jobs (180,000 s.f.) Manufactures discs for Dreamliner (Boeing 787);A380. Second factory to be announced soon: Founder: Commonwealth Center for AdvancedManufacturing (CCAM)60Clusters and Mini-Clusters 61. South Carolina Mini Clusters Aerospace Manufacturing More than Boeing and its direct suppliers 2009 GE aviation: turbine airfoils &blades BAE: electronics engineering GKN: all composite fuselage for HondaJet lightbusiness jet . (HondaJet is in North Carolina) Honeywell International Message: diversification of opportunities61 62. 62 63. Innovation DecisionFactorsR&DR&DUniversity Research CentersUniversity Research CentersGovernment Research CentersGovernment Research CentersConsortium: Business & Universities forConsortium: Business & Universities forAdvanced ManufacturingAdvanced Manufacturing63 64. VIRGINIAS R&D ASSETSDefense Advanced ResearchProjects Agencydirects andconducts military researchNASA conducts aerospaceresearch at its Langley ResearchCenter and Wallops FlightFacilityNational Institute for Aerospaceconducts research and awardsadvanced degrees in aerospaceengineering through a partnershipwith nine universities: Airbuscontracts with the InstituteCommonwealth Center forAerospace Propulsion Systemsa joint UVA-Virginia TechRolls-Royce research effortVirginia Modeling andSimulation Centerappliessimulation techniques to solveproblems and provide training forindustry, military andgovernmentsNational Center for HypersonicCombined Cycle Propulsionadvances understanding of criticalmode transitions andsupersonic/hypervelocity flowregimes of combined cyclepropulsionThe Naval Surface WarfareCenter Dahlgren Divisionthepremier research anddevelopment center for advancedweapons system integration64 65. R&D Alabama and Virginia Huntsville Cummings Research Park: 2ndlargest R&D Technology Park in USA National Institute of Aerospace (Virginia):has R&D contract with AIRBUS Center for Aerospace Propulsion Systems:Univ. Of Virginia, Va Tech & Rolls Royce NASA Research: Langley ResearchCenter, Wallops Flight Facility, (Boronnitrate nanotubes, etc)65 66. Best-in-class manufacturers & Virginias flagshipuniversitiesDelivering production-ready manufacturing solutions while combiningthe speed & ROI expectations of business with the intellectual rigor andinnovation of universities.CCAM (Virginia)66 67. A global Center of Excellence inadvanced manufacturing research Manufacturing Systems Surface Engineering Focus on translation research Accelerate new technologies intocommercialization Reduce cost and improve quality Complement with workforce trainingefforts CCAM growth in 5-10 years to: 10 year business plan & financial modelcomplete ~60 Employees (49 PhD Researchers) 35 graduate research assistants residentat CCAM 35 undergraduate interns resident atCCAM More than 30 Industry Members $15-20 Million annual research budgetAerospaceEnergyShipbuildingTransportationElectronicsAutomotiveDefenseVisionCCAM67 68. AEROSPACE IN VIRGINIA: USE THIS TYPE OFCHART FOR OTHER STATES: ALABAMA, SC, NC,GEORGIA68 69. Incentives(Les IncitationsFiscales)Are they the whole story?Are they the whole story?69 70. Incentives Incentives: Different types tax credits cash grants / closing funds payroll tax rebates donation of land special legislation performance grants(Aerospace) job training funds Enterprise Zones collaboration with universities 70 71. COMPARABLE PROJECTSProject Name Why Virginia Won the DealRolls-Royce Crosspointe($501.4 million/642 jobs)1,000+ acre, publically-owned site zoned industrialProximity to U.S. headquarters, transportation, and deep labor baseCreativity in solving higher education & workforce development needsPerformance grants to encourage aerospace cluster developmentCanon($623.5 million/1,032 jobs)Long-term relationship with the localityCreation of a workforce development plan heavily influenced by thecompanys needsRTI International Metals($100.0 million/150 jobs)Publically-owned, partially constructed building with expansion potentialAmple labor force in a non-union environmentFinancial solution lowering upfront costsOrbital($45.0 million/125 jobs)Long-term relationship with the Mid-Atlantic Regional Spaceport (MARS)Wallops Island location allowed for a shared political support betweenVirginia and MarylandStructured bond responseMerck($250.0 million/70 jobs)Demonstrated productivity of existing workforceCompany desire to diversify asset locationsVirginias positive regulatory environment and strong relationship withlocal government71 72. Why is a State a Top state for business?Incentives are only one consideration.Forbes.com CNBC Pollina Corporate Real Estate, Inc.#2 Best States for Business #3 Top States for Business #2 Most Business Friendly StateForbes.comBusiness costsLabor SupplyRegulatory EnvironmentEconomic ClimateGrowth ProspectsQuality of LifeCNBCCost of Doing BusinessWorkforceQuality of LifeEconomyTransportation & InfrastructureTechnology & InnovationEducationBusiness FriendlinessPollina19 business climate categories includingtaxes, human resources, right-to-worklegislation, energy costs, infrastructurespending, worker compensationlegislation, and jobs lost or gained13 state government-controlled factorssuch as financial incentive programs andstate economic development departmentevaluations72 73. Part 6: WhatPreparation andAssistance isRequired if yourcompany decides toLocate in theSoutheast?73 74. Your Economic DevelopmentTeam Can assist with preparation of business plans, analysis,using multidisciplinary experts: site selectionconsultants/engineers, accountants, investment bankers, Choose advisors who have played key roles in majoreconomic development projects Negotiate packages of incentives for foreign multinationals Contract formalities Le diable se trouve dans les details, les garanties de nouveauxemplois , etc., les Performance-Based Grants Evaluate competitive offers from different states, regionsand clusters Can assist with finding financing from Private Equity,Commercial Lenders, or advising on M&A as strategy forentry into the U.S. market 74 75. Your Legal Team:Services Essentielles Government relations, federal, state, local Commercial supply contracts, subcontracts Government supply contracts, subcontracts Visas/Immigration Real estate, land use, environmental permits Corporate and tax law, M&A, raising capital from private equity, debt/mezzazinefinancing Advice on imports/exports, including IC Disc for exports Export Controls compliance , including consultants & legal Supply chain logistics: international trade issues ( ALENAou NAFTA options) Labor, employment, benefits Intellectual Property 75 76. ConclusionLets look again at The Maps76 77. Conclusion Southeast cluster can be more thansimply another local market It can be your center for innovation,R&D, networking within the cluster andyour base for worldwide exportssubsidized by U.S. government (ICDISC) With the right team to plan your start-upand guide your business expansion,you can participate and compete in thedollar zone 77 78. 78Thank YouEliot Norman, Esq.enorman@williamsmullen.comwww.williamsmullen.com001/804.420.6000Washington, DC USA 79. 79Questions?Questions?Eliot Norman, Esq.enorman@williamsmullen.comWilliams Mullen1666 K Street NW Suite 1200Washington DC 20006Direct Dial: 804.420.6000www.williamsmullen.comJohn Elink-SchuurmanManaging Director-EuropeBusiness AttractionVirginia Economic Development PartnershipPhone: 804-545-5756Mobile: 804-305-1756jelink-schuurman@yesvirginia.orgwww.yesvirginia.org