In an unprecedented move, the Virginia Port Authority has told a manufacturer to repay a $500,000 economic development grant because the company failed to maintain enough employees at its Pittsylvania County facility.
Morgan Olson makes walk-in step vans, the boxy trucks commonly used by package delivery companies, bakeries and other industries.
In 2019, officials announced that Morgan Olson would bring 703 new jobs as it set up shop in Pittsylvania County.
In 2022, the Virginia Port Authority awarded the company a $500,000 Economic and Infrastructure Development Grant with conditions that included the company maintaining at least 574 jobs there at all times during the following three years.
Morgan Olson announced last year that it would lay off 435 employees as of this past December and in July, announced it would lay off another 139 by the end of this year, citing “economic conditions.”
In a recent letter, the port authority told Morgan Olson that based on state layoffs data and conversations with company staff, the authority “has determined that Morgan Olson has failed to maintain at least 25 new, permanent full-time positions” since the award.
Morgan Olson must therefore repay the full $500,000 grant within 60 days of the notice, which came in a one-page letter dated Sept. 25 from Stephen Edwards, the port authority’s CEO and executive director, to Greg Pairitz, Morgan Olson’s vice president and CFO.
It’s unclear how many people are currently employed at Morgan Olson’s Pittsylvania County location or if the company intends to repay the grant. A Morgan Olson spokesperson did not respond to requests for comments.
From 2022 through 2024, the Virginia Port Authority has awarded five Economic and Infrastructure Development grants. The amount of money a company can receive is based on the number of jobs it creates.
This marks the first time the authority has ordered a company to repay such a grant. Port authority spokesperson Joe Harris said that if Morgan Olson doesn’t return the money, the authority could pursue legal action, but the authority hopes it doesn’t come to that.
Sturgis, Michigan-based Morgan Olson also has a location in Loudoun, Tennessee. When the company notified Virginia officials last year of its round of 435 layoffs, it also told Tennessee officials of its intent to cut 290 jobs there.
