VCEDA Closes on $1.6 Million in Grants for Buchanan County Southern Gap Projects
GRUNDY, VA – OCTOBER 8, 2025 -- Three grants totaling $1.6 million to benefit projects at Southern Gap in Buchanan County were closed by the Virginia Coalfield Economic Development Authority (VCEDA) to the Buchanan County Industrial Development Authority (IDA).
The three projects include up to $1 million to be used to finance site development and infrastructure for a new 130-acre mixed-use development within Phase II of the Southern Gap Industrial Park; up to $500,000 to be used to finance site development and infrastructure for a proposed commercial area at Southern Gap; and up to $100,000 to be used to finance site development and infrastructure for a proposed housing development at Southern Gap.
“All three projects are part of the Buchanan County IDA’s comprehensive master plan for the Southern Gap area,” said VCEDA Executive Director/General Counsel Jonathan Belcher. “Not only do each of these projects create jobs in the construction phase, but they also create jobs in the implementation phases as well.”
As proposed, the $1 million grant will be used to finance site development and infrastructure for mixed-use development within Phase II of the Southern Gap Industrial Park, including site grading, road construction, the installation of utilities and utilities infrastructure including electric, water, sewer, stormwater sewer, natural gas and telecommunications.
The mixed use site is located behind the existing Southern Gap Regional Office Park and the existing residential area at Southern Gap and will be near the county’s new consolidated high school, currently under construction.
According to the IDA’s application the mixed-use development will consist of residential, commercial and industrial property. The acreage set aside for housing will include single-family homes, town homes and apartments. At the same time, the mixed used site will also give the IDA a new area to market for industry, now that nearly all of the IDA’s existing available industrial sites at Southern Gap have been taken.
“This is part of the IDA’s overall strategy to develop Southern Gap as a regional hub that will offer a diversity of employment opportunities, retail and restaurant options, a regional airport and affordable housing in an area that is removed from the floodplain,” said Buchanan County IDA Executive Director Matt Fields.
The $500,000 grant closed will assist with site development and infrastructure for an approximately 1.18-acre commercial site within Area A of the Southern Gap development. The proposed work includes developing underground electric and telecommunications conduits, waterline and sewer systems and addressing stormwater handling.
According to the IDA’s application, once site development at Area A is complete, the space will be available for commercial leasing. The application notes the project is in line with the IDA’s Master Plan for the Southern Gap development and is an essential component of a broader effort to develop Southern Gap.
“The IDA feels the new commercial site will help attract new employers, create additional jobs, generate increased tax revenue and potentially provide rental income,” Fields noted.
The $100,000 housing infrastructure grant would be used to extend and expand Ruffed Grouse Road by approximately 1,150 feet and install infrastructure including water, sewer, natural gas and internet, for the purpose of preparing this section of Southern Gap for residential development and workforce housing.
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. www.vceda.us or www.e-Region.org.
PHOTO CAPTION:
VCEDA Executive Director/General Counsel Jonathan Belcher, right, presents a ceremonial check for $1.6 million to be used for workforce housing, commercial and industrial development at Southern Gap to Buchanan County IDA Executive Director Matt Fields.