Endless Opportunities

Let’s Build Endless Opportunities for Future Generations

WORKFORCE INNOVATION AND CHILDCARE CENTER

...a project of this magnitude that will have a transformational impact on our region.” Bill Hayter, Chair of Wellspring Foundation of Southwest Virginia Board of Directors

[Image: Bill Hayter]

When we dream of a future Southwest Virginia, we see a community where we can continue to live and work alongside friends and neighbors, in cities and towns filled with thriving local businesses.

[Imagery: Travis Statton]

This Center is an investment in existing infrastructure and will revitalize our com munities. The economic stimulation that will result will match the ripple projects like this have for the communities they are based in. My hope for this project reflects United Way of Southwest Virginia’s hope for the region. When we combine the strength of our com munities with the creativity our region is known for, we can accomplish great things. Join us in making our home of Southwest Virginia one of the best places to live, work, and raise a family. Together, we can make it a reality.

Over the past decades, United Way of South west Virginia has worked on many initiatives, walking in locked arms with entire communi ties so they could respond to and ultimately recover from devastating disasters. With the launch of Ready SWVA, we gath ered more than 150 leaders from South west Virginia’s public and social sectors to explore barriers and shared opportunities for economic development for our home. From this work, Southwest Virginia’s needs for a strong future became clear. When employees struggle to find affordable childcare, they miss work as a result. When families are sidelined from working, employ ers cannot run at full speed, and the commu nity misses out on reaching its full potential. As a hub for workforce development and a childcare center, this community space will support today’s workers while preparing the workers of the future. The multi-generation al approach pairs workforce training with affordable and high-quality early childhood care and education.

[Imagery: Travis Statton signature]

Travis Statton, CEO and President, United Way of Southwest Virginia

3

Childcare Shortage The childcare shortage in Southwest Virginia affects more than half of our children. Southwest Virginia’s approximately 300 childcare centers have the maximum estimated capacity to only serve 41% of the children in our region. In Virginia, families needing infant and toddler care struggle the most. A recent analysis provided by the Virginia Early Childhood Foundation revealed less than 2% of our state’s families are able to find childcare for their young.

Support Where it’s Needed Most

51% of our children left without childcare

Workforce Gaps Southwest Virginia has some of the lowest labor force participation rates in the state. In 2019, 31.3% of adults in SWVA did not work. Employment took an even greater hit due to the COVID-19 pandemic in 2020. The 5 counties with the lowest labor force participation in our state were in Southwest Virginia.

Sources: Southwest Virginia Workforce Development Board | Virginia Career Works, Virginia Tech, 2021, 2022 | Virginia Department of Social Services, 2022 | Virginia Early Childhood Foundation, 2023

This is our home For more than 60 years, United Way of Southwest Virginia has been working to support our community. Over time, as our home has changed, we have changed with it. Instead of funding solutions to treat symptoms, we research, test, and scale solutions that address root causes. Using a cradle-to-career framework, we focus on improving the health, education, and financial stability of every person in our region. With a support network covering over 20% of Virginia, we represent some of the most economically challenged communities in the Commonwealth. We believe that between problems and potential lies endless opportunities. We work across partisan and income divides, leading community

conversations and bringing people from all walks of life to the table. By partnering with our neighbors, we can keep our home one of the best places to live, work, and raise a family. Our region has a lot to offer, and a strong voice When looking at how to support our home and neighbors in Southwest Virginia, we listened. United Way of Southwest Virginia brought together community members, families, educators, and employers. We met with economic development professionals, government officials, and early childhood education providers. We listened and consulted with some of the brightest minds in our region. And then, we developed a plan.

5

Multi-generational Support for Our Region

The new Workforce Innovation and Childcare Center is a solution to gaps in the regional economic ecosystem in rural Southwest Virginia. It will make employment in the labor force a feasible choice for families and provide talent development solutions for the emerging and adult workforce. Located in the heart of Southwest Virginia, a state-of-the-art building will be home to a childcare center, hightech STEM labs, and a career simulation center.

Lack of access to early childhood care and education continues to sideline families from the workforce. When families aren’t working, and businesses aren’t running at full capacity, our region is left behind.” Brendan McSheehy, Board Chair of UWSWVA and VP of Innovation & Intellectual Property at Universal Fiber Systems LLC

Layout and renderings are for informational purposes and may not reflect the final Center design or configuration.

6 WORKFORCE INNOVATION AND CHILDCARE CENTER

7,500 (+/-) square feet Warehousing and distribution to support more than 200 local childcare and education providers.

2,500 (+/-) square feet for kitchen and food preparation.

20,000 (+/-) square feet Early childhood services for

approximately 300 children ages birth to five. Includes classrooms, indoor/ outdoor recreation areas, a cafeteria, and administrative offices.

30,000 (+/-) square feet Youth and adult workforce development programming.

Includes high-tech STEM labs and an interactive workforce exploration center for student programming.

25,000 (+/-) square feet Professional offices and meeting/training rooms for programming, community, and employer use.

7

...states who develop, attract, and retain talented workers are the ones that will have a competitive advantage with economic development and business growth.” Blueprint Virginia 2030

Project Estimated Costs/Value Include:

The budget for the project is primarily capital expenses but recognizing the additional costs associated with owning the land and building, United Way of Southwest Virginia has included a $5 million endowment. This amount will cover annual utility, maintenance, and repair expenses, as well as support a portion of the programming costs.

Building Acquisition

$3,000,000

Building In-Kind Donation $5,850,000 Renovations & Other Project Costs $16,165,000 TOTAL $25,015,000

8 WORKFORCE INNOVATION AND CHILDCARE CENTER

FOOD CITY * $7.8M

Project Commitments

WELLSPRING FOUNDATION $4M

Food City *

($7,850,000) ($4,000,000) ($5,000,000) ($4,000,000) ($694,000)

Wellspring Foundation Town of Abingdon & Virginia DHCD — IRF Grant Child Care Operator Investment

REMAINING NEEDED $3.4M

Other

TOTAL COMMITMENTS

($21,544,000)

TOWN OF ABINGDON & VIRGINIA DHCD $5M

OTHER $690k

CHILD CARE OPERATOR INVESTMENT $4M

* Includes building in-kind donation

9

2020-2021 COVID-19 brought historic job loss to our region, sending families home without childcare or a feasible path back to work. December 2021 Ready SWVA launches. An economic development project addressing accessible childcare and supporting local workforce development and retention.

This is the type of cross-sector innovation that is going to solve some of our [ region’s ] biggest problems. ”

[Image: Amanda Pillion]

Amanda Pillion, Mayor of Abingdon

February 2023 United Way of Southwest Virginia commenced a community engagement process to gain input on the design and programming of the center.

April 2023 Architectural design and permitting for the center.

June 2023 United Way of Southwest Virginia enters into a purchase and sale agreement on the former Kmart building.

Fall 2023 Groundbreaking once sufficient funding is secured.

Summer 2024 Construction and renovation completed. Grand opening to commence educational programming.

Join us! Contact us today to learn how your charitable goals for our region may align with this capital campaign project. bmcconkey@unitedwayswva.org 276.525.4102 There are multiple naming opportunities available, which we would be happy to discuss with you. Capital gifts may be pledged over multiple years up to five years.

We commit[ed] funding to the project… because we believe that thriving communities are also good for business. We understand that philanthropy is key to making our communities a better place to live, work, and educate our children.” Steve Smith, CEO and President of Food City

[Image: Steve Smith]

11

Join us in continuing to make Southwest Virginia the best place to live, work, and raise a family.

To learn more about this project, including how to make a gift, visit:

UNITEDWAYSWVA.ORG/WORKFORCE-CENTER

Beth McConkey bmcconkey@unitedwayswva.org 276.525.4102