Southern Virginia is trading its tobacco-farming past for a technology-development future - and companies are benefiting from the transformation.

The Virginia Tobacco Indemnification and Community Revitalization Commission is providing 34 counties within the state with the financial firepower to build out technology infrastructure, provide workforce training, and offer various grants that are causing telecommunications, biotechnology and software companies to take a second look at rural Virginia.

"The Tobacco Commission has made a tremendous impact on southern Virginia," says David Hudgins, director of economic development for Old Dominion Electric Cooperative. "It has stabilized a region that was declining in traditional tobacco, textile, furniture and coal industries and has helped transition the economy into an attractive location for 21st century companies. The Tobacco Commission is pouring money into the region to prepare it for the future."

Those 21st century companies Hudgins spoke of are benefiting from regional economic development, education, innovation, and technology grants. And tobacco settlement funds are not only spawning economic development, but also sparking the state's tourism industry thanks to revitalization efforts in rural communities. In other words, it's not your grandfather's Virginia anymore and more change is in store for the state's rural communities.

It all begins with a diversified economic base. The Virginia Tobacco Commission makes funds available for regional economic development initiatives in Southwest and Southside for projects that expand and broaden the economic base in the once tobacco-dependent region.

Dozens of grants worth more than $16 million have been distributed to help communities improve infrastructure, including building industrial parks, roads, and even art venues. These funds have seen towns like Marion launch water treatment system improvements and Pennington Gap undergo a downtown revitalization project.

Grants extended to the Cove Ridge Center Foundation for the Appalachian Heritage RV and Motorcycle Tour, the Lincoln Theatre for the "Live from the Lincoln Theater: Song of the Mountains" production, and the National Council for the Traditional Arts for the Blue Ridge Music Center have contributed to tourism in the state. In fact, traveler spending in the Commonwealth increased by 8.6 percent in 2004, with nearly 36 million tourist visits that represent a $15.3 billion investment in the economy.

"We've put a strong focus on developing and marketing tourism in Virginia and it's paying off on a statewide and local level," says Governor Mark Warner. "Tourists are embracing Virginia's diverse vacation experiences and making a significant contribution to our economy. We will continue to work to maximize the benefits of Virginia's tourism assets, especially those in Southwest and Southside Virginia."

The Tobacco Commission also makes funds available for companies locating in those upgraded communities. "We have a fund to offer incentives for employers who expand or open new businesses in the tobacco region," says Ned Stephenson, executive director of the Virginia Tobacco Commission. "We extend several million dollars a year to modern companies because it's not about cutting tobacco anymore. It's about technology and advanced manufacturing."

Progressive companies are beginning to flock to Southwest and Southside Virginia. In October 2005, StarTek said it would open a customer care facility in Dinwiddie County, bringing 500 jobs to the Town of Petersburg. In September 2005, Pacific Headwear said it would invest $1.2 million to open a facility in the J. Aubrey Industrial Park in Halifax County. Also in September, Paris Ceramics USA said it would invest $2 million in a manufacturing facility in Prince Edward County. And that's just in two months.

All-important educational grants are also being awarded in an effort to create a world-class workforce in southern Virginia. Scholarships, community college programs, workforce training, and adult education programs were awarded nearly $9 million in 2004 alone.

The Patrick County Education Foundation received Tobacco Commission grants to build a workforce development program, for example. Former Virginia Governor Gerald L. Baliles, a native of Patrick County, created the foundation to increase levels of educational attainment, and improve area workforce skills.

The TekAdvantage program is the first of several courses offered through the Foundation's Workforce Training Program. It is a four-week instruction and certification course in basic computer skills and applications, which addresses four areas of competency: basic computer knowledge, word processing, spreadsheet creation, and the Internet. TekAdvantage certification provides employers with a means of assuring the computer competency of existing and potential employees. More than 300 Patrick County residents have been through the program.

"Part of the curriculum includes completing a resume. So we inventory the resumes of graduates and when we have businesses potentially interested in an expansion or relocation visit the area, we can provide them with resumes of qualified individuals," says Jerry Hughes, executive director of the Patrick County Education Foundation. "That eliminates the need to run a blind ad in the paper."

The Tobacco Commission also awards innovation grants under the Special Projects fund for projects that have the potential to impact a region within the state. Last year, the Commission committed $5 million to 29 new companies that created 3,192 jobs and generated $147.5 million in capital investment in the tobacco region. Finally, technology grants continue to be awarded to develop regional fiber optic backbone networks to provide high-speed connectivity. All of these efforts combined have helped dozens of companies leverage the benefits of doing business in southern Virginia.

"Five years after we created the Virginia Tobacco Commission the benefits that have accrued for companies are evident," Stephenson says. "And we are moving ahead with this long-term vision. Economic development is like building a house with bricks. You build one brick at a time. We've got a lot of bricks on the ground that will add up to make a huge impact on Southwest and Southside Virginia in the years to come."