Followups – July 2019

SOUTHWEST VIRGINIA
Daimler AG, the German auto giant acquiring Torc Robotics, has created a new business unit focused on putting self-driving trucks on the road within a decade. It’s all part of a $570 million investment by Daimler Trucks, with some of that work landing in Blacksburg, according to a May news release. The news adds clarity to the role Blacksburg-based Torc will play within the corporate structure of its new parent company pending the Daimler acquisition approval by federal regulators. (The Roanoke Times)

Pulaski County is in the beginning stages of a multiyear project that will connect the 57-mile New River Trail to Randolph Park in Dublin. About $1.3 million in federal and county funds has been allocated to the project, with $1.1 million being spent on the current phase. The federal portion of the trail project was disbursed by the state as part of a transportation improvement grant. The first phase of the project will connect the terminus of the trail near East Main Street in Pulaski by the Food Lion to behind Critzer Elementary School. (The Roanoke Times)

The third cohort of entrepreneurs that has taken up residence inside the Gill Memorial Building includes a former Microsoft coder, a longtime banking executive and a scientist who just won a $750,000 NASA grant. They represent some of the founders behind six startups chosen from the 20 that applied to participate in downtown Roanoke’s RAMP business accelerator. The six startups will receive training from Virginia Western Community College, office space from the city of Roanoke and mentoring organized by the Roanoke-Blacksburg Technology Council. At the end, they’ll have a platform to pitch their ideas to investors during the annual demo day event. As an added bonus, four startups received $20,000 in equity-free funding to help build their companies. The other two slots come with no funding and are instead paid for by corporate sponsors. (The Roanoke Times)

The Roanoke Regional Partnership, an economic development organization, has made a concerted effort to recruit talent to the region. After collaborating with its eight localities, the business community, tourism officials, colleges and universities, and professional organizations such as the regional chambers and Roanoke-Blacksburg Technology Council, the partnership is developing new and creative ways to recruit talent, ranging from new college graduates to professionals with several years of experience. The partnership has launched the Get2KnowNoke brand to focus on bringing talent to the region. Along with it came the Get2KnowNoke summer internship program. The partnership also has taken on the Experience conference and programming for young professionals. It hosted or participated in about 20 college programs over the last six months as well. (The Roanoke Times)

In the wake of an over-enrollment crunch, Virginia Tech is offering money to some incoming students as an incentive to delay attending the university for up to a year. Tech’s oversize freshman class, which is anticipated to number more than 7,000 students, would strain the infrastructure of the university and town of Blacksburg, officials say. To reduce potential growth pains, Tech is offering financial incentives to 1,559 incoming, in-state freshmen in specific programs to skip the 2019-20 school year in Blacksburg — or at least one semester. The university has budgeted $3.3 million for the program. (The Roanoke Times)

The owners of a local winery are using their winnings from a recent contest to remodel their company’s kitchen. Loren and Elizabeth Gardner, a husband-and-wife team who purchased Abingdon Vineyards last August, placed second in the 2019 Washington County Business Challenge’s Existing Business Expansion Awards. Their prize was $1,500. The couple has extensive wine experience in Napa Valley. Elizabeth Gardner says the current kitchen is not up to health codes, the household electric stove has no hood and the refrigerator has limited space. “Our wine dinner chefs have to prepare food offsite and cook outside on the grill, even in the winter,” she said. The renovated kitchen will have the potential to be used as a commissary for food startups that need to rent space in a commercial setting, the couple said. Since purchasing the 45-acre property on the South Holston River, the couple’s goals are to grow the community and the economic impact of the winery. Just since last year, they have increased wine production from 2,000 to 3,000 cases annually and have doubled the winery income by offering a variety of community events. According to the couple, the commercial kitchen will add $97,000 of annual income to the business while increasing jobs. (SWVAToday.com)

Ballad Health officials acknowledged they could have done a better job letting people know they were no longer doing surgery at Mountain View Hospital in Norton but said that they notified the state of the change. However, Virginia’s health department could not have notified the public because much of Ballad’s correspondence is considered proprietary, said Erik Bodin, who is director of the division that includes overseeing the cooperative agreement that allowed two rival health systems to merge in the coalfields. (The Roanoke Times)

In May, Mac Holladay, founder and CEO of Market Street Services, an Atlanta-based economic and community development consulting firm, spoke to a group of about 20 community and business leaders from both Bristols; Sullivan County, Tennessee; and Washington County, Virginia, at the Bristol Chamber of Commerce. Holladay said the most attractive areas for businesses have quality education, a prepared workforce and good quality of life. By contrast, he cited rural areas where hospitals have closed, describing those areas as economically “done” because health care is a key, basic consideration. Having no hospital makes it more difficult to attract new employers or families, he added. He also said everyone involved needs to appreciate when another locality lands a business or industry. Bristol Virginia City Manager Randy Eads, who is also an attorney, says it only makes sense for border communities to cooperate. “I don’t know why we can’t work together. We need to work with our representatives in Richmond and Nashville to make them understand that this is a unique area of both Tennessee and Virginia, and we’re stronger together than we are separate. If we start working together, we can have a tremendous impact on this region,” Eads says. Holladay was in town in advance of a Bristol 2040 steering committee meeting. The effort is a long-term visioning and economic development planning process promoted by the Chamber of Commerce. (Bristol Herald Courier)

The Bristol Hotel, the historic Reynolds Memorial United Methodist Church and the owner of a home once labeled the “horror house of Solar Hill” were honored in May for historic preservation. The trio was among five honorees recognized during the sixth annual Bristol Virginia Historic District Preservation Awards at the Birthplace of Country Music Museum. The awards program was established to recognize significant historic preservation and revitalization efforts of eligible homes, businesses and other structures within the city’s five designated historic districts, as recognized by the National Register of Historic Places. Also honored were Chris Cannon, owner of the former E.K. Crymble house at 225 Solar St., and Lucinda Brown, for renovations at 1022 Euclid Ave. Dr. Fred Greer received the stewardship award for maintaining his 1930s-era home at 501 Lawrence Ave. Nominations for the 2020 awards are now open and will be accepted until next March, according to Catherine Brillhart, chairwoman of the awards committee. (Bristol Courier Herald)

A $600,000 grant from the Environmental Protection Agency will assist Bluefield in Virginia and West Virginia with cleaning and redeveloping industrial and commercial sites. U.S. Rep. Morgan Griffith, R-9th, announced that the Brownfields Program awarded $600,000 to the city. Bluefield Town Manager Mike Watson said the application process took nine months and involved Tazewell and Mercer counties as well as the two Bluefields. Jim Spencer, Bluefield, W.Va., community and economic development coordinator, said the city will be seeing how many properties can be redeveloped and used for new projects. Watson said the first step will be identifying the properties and determining if there is an environmental issue. (The News & Press)

GO Virginia Region One’s Council approved grants totaling $220,947 in May to help fund three development projects. Meeting in the Bristol Virginia School Board auditorium for the first time, the 20-member council unanimously approved providing $50,000 to help fund an oversight position within the LENOWISCO Planning District Commission, more than $70,947 to develop a solar energy program for Appalachian Voices in Norton and $100,000 for a livestock education project in Carroll County. The GO Virginia model requires at least two entities to partner before seeking funds and in most cases requires matching funds. (Bristol Herald Courier)

The Tazewell County Chamber of Commerce hosted the ribbon cutting for its new home, a renovated former Norfolk and Western Railway train station, on May 18. The station was empty for many years before the town of Tazewell obtained it from Norfolk Southern Railroad and began its restoration. Under the direction of Vice Mayor Terry Mullins, a committee of interested citizens was formed, and they were able to obtain funding to restore the building. In addition to being the chamber office, the station will serve as a satellite of the county’s tourism office. (SWVAtoday.com)

A growing program initiated more than 10 years ago at Virginia Highlands Community College is in the national spotlight for empowering foster youth to succeed academically. Deborah Ledford, coach for Great Expectations at the community college, said she’s been contacted by higher education programs from as far away as California and Colorado since The Chronicle of Higher Education featured the Abingdon community college in a video. The program, shared by 21 Virginia community colleges, is designed to help foster youth pursue associate degrees and workforce credentials, transfer to four-year universities and position themselves for employment and life success. The Virginia Highlands Community College program has grown from 10 students in 2008 to 94 in the latest academic year. (Washington County News)

L.C. King Manufacturing, a longtime Bristol business, isn’t closing its local site and moving to China, contrary to an April Fools’ Day stunt. On April Fools’ Day, the company, maker of “famous workwear,” shared news on its Facebook, Twitter and Instagram social media accounts that it was moving its factory in downtown Bristol to Shandong Province in China. The company, which also sent a news release to the Bristol Herald Courier — not on April Fools’ Day — said the change was effective immediately. One day after the announcement, L.C. King revealed the move was an April Fools’ joke. L.C. King has been making garments in Bristol since 1913 and has a factory and store at the corner of Shelby and Seventh streets. Reaction to the original announcement was swift. While some caught on quickly that it was an April Fools’ joke, others didn’t find it funny. At least one person said they are boycotting the company. Be prepared. Jack King, the great-grandson of founder Landon Clayton King, said he already has plans for next year, which he believes “will really be talked about.” (Bristol Herald Courier)

Nonstop service to Dallas/Fort Worth International Airport will begin at Tri-Cities Airport on Sept. 4, American Airlines and the Tri-Cities Airport Authority announced in April. The additional flights mean American Airlines passengers will have access to 84 additional one-stop routes from the airport in Blountville, Tennessee, Tri-Cities Airport Director Gene Cossey said in a news release. The flights will be twice daily. (Bristol Herald Courier)

Before May, the idea of buying a restaurant — much less, a hot dog diner — had never crossed Debbie Clark’s mind. But then, at a party, she was talking to Farron Smith, co-owner of Wytheville’s Skeeter’s World Famous Hot Dogs, and suddenly the idea didn’t seem so crazy. Debbie and her husband, Dale, bought Skeeter’s from Smith, and her husband, Bill, on May 30 — three decades from the day that the Smiths purchased it from the founding Umberger family. (The Roanoke Times)

SHENANDOAH VALLEY
Staunton-based Cadence Inc. has acquired the assets of Arcor Laser Services LLC, a laser processing company based in Connecticut. Financial details of the deal were not disclosed. Cadence is a contract manufacturing firm providing advanced products, technologies and services to medical-device, life science, industrial and defense companies worldwide. Founded in 2004 by Gary Francoeur, Arcor specializes in precision laser welding, machining marking and drilling, as well as turnkey systems integration. The company’s home in Suffield, Connecticut, includes two facilities totaling 30,000 square feet. Cadence employs about 575 people in Staunton. It has other locations in Connecticut, Pennsylvania, Rhode Island and Wisconsin. (VirginiaBusiness.com)

The Hershey Co. will invest $104 million to expand its manufacturing operations in Augusta County. The 111,000-square-foot expansion is expected to add 65 jobs to the candy company’s Virginia payroll. Hershey now employs more than 1,000 people in the commonwealth, with the majority of them working at the Stuarts Draft manufacturing facility in Augusta. Gov. Ralph Northam approved a $600,000 grant from the Commonwealth’s Opportunity Fund to assist Augusta with the project. Northam also approved a $400,000 performance-based grant from the Virginia Investment Performance program, an incentive that encourages capital investment by existing Virginia employers. The Hershey, Pennsylvania-based company has operated in Augusta for more than three decades. The company has about 16,500 employees and annual sales of $7.8 billion. (VirginiaBusiness.com)

The pharmaceutical firm Merck & Co. Inc. plans to invest up to $1 billion in stages over the next three years to expand its pharmaceutical manufacturing plant in Rockingham County. The Kenilworth, New Jersey-based company will add 120,000 square feet to its existing 1.1-million-square-foot operation in Elkton, to increase production of its human papillomavirus (HPV) vaccines. The expansion is expected to create 100 additional jobs at the plant, which currently employs 900 people. In connection with the expansion, Blue Ridge Community College and James Madison University will collaborate on programs training biotechnology engineering and computer science workers to address workforce needs of Merck and other life-science industries in the Shenandoah Valley. Subject to approval by the General Assembly, Merck will be eligible to receive a state performance grant of up to $7.5 million for stormwater and infrastructure upgrades to support the expansion. In addition, Blue Ridge and James Madison are eligible to receive up to $2.5 million for the development of custom workforce solutions. Merck, which has 69,000 employees, has operated its Elkton manufacturing plant in Rockingham County for more than 75 years. (VirginiaBusiness.com)

Waynesboro City Council gave the OK for a conditional-use permit to allow a 178-foot water tower to be sited in the H-1 Heavy Industrial District at 1625 S. Delphine Ave. and 51 S. Oak Lane south of Interstate 64 heading toward Lyndhurst. The permit for the tower, which previously received the support of the city planning commission, was sought by the city even though there is no definitive timeline for the project, explained Waynesboro Planning Director Luke Juday. The idea, he said, is that having the permit approval now will streamline the process whenever council decides to fund the work. Juday said the tower, which will hold 500,000 gallons, primarily would serve the tech center, although it may benefit residents and businesses in the area by adding water pressure to their lines. (The News Virginian)

NORTHERN VIRGINIA
Days after announcing plans to expand its global workforce by 1,000 employees, Cvent Inc. acquired San Francisco-based wedding venue sourcing platform Wedding Spot Inc. Terms of the deal were not disclosed. Wedding Spot is an online tool that helps engaged couples search, compare and book wedding venues by category. It counts more than 12,000 special event venues and hotels on the platform. Tysons-based Cvent said the acquisition of Wedding Spot will bring additional group business opportunities to more than 260,000 hotels and venues that use Cvent’s supplier network. (Washington Business Journal)

Tysons-based KLDiscovery is selling to New York blank check company Pivotal Acquisition Corp. in a move that allows the local data and compliance software firm to go public at a value of $800 million. The deal would mark the publicly traded debut of one of the region’s largest private and fastest-growing players, one backed by majority shareholders The Carlyle Group LP and Revolution Growth. Both investors will retain and roll over their shares under the deal with Pivotal. (Washington Business Journal)

Loudoun County could seek nearly $80 million in damages related to the nation’s opioid epidemic, the county Board of Supervisors determined. After a closed session in May, the board directed County Attorney Leo Rogers to retain and work with Sanford Heisler Sharp LLP, Kaufman & Canoles LLP and the Cicala Law Firm PLLC to initiate and prosecute ligation against opioid manufacturers and recover costs incurred. A board-initiated cost assessment found the county has a claim for at least $79.6 million over the last five years in the areas of criminal justice costs, emergency services costs, school system costs, mental health costs, family and Children’s Services Act costs and other expenses. (Loudoun Times-Mirror)

To say the first week of a summerlong shutdown of six Metro stations was trying for Blue and Yellow line riders is a bit of an understatement. One commuter reported that it took nearly two hours to get from the Eisenhower Avenue station to Crystal City because the driver didn’t know the route, had to backtrack, skipped some stops … and then the bus broke down. Metro and local elected and transportation officials had warned it was going to be bad, but many riders were hopeful that the months of planning and preparations by officials would ease the pain. The 107-day shutdown of Blue and Yellow Line stations south of Reagan National Airport is the first phase of a three-year platform reconstruction project. The six stations affected serve about 17,000 riders daily. (The Washington Post)

In April, the Virginia Information Technologies Agency notified Reston-based Science Applications International Corp., the company in charge of integrating IT services from multiple vendors, that it is in “material breach” of the terms of its contract with the state for financial management. SAIC spokeswoman Lauren Presti said that the company “looks forward to quickly resolving the issues identified in this letter and continuing our strong partnership with VITA in delivering first-class IT services to the Commonwealth of Virginia.” (Richmond Times-Dispatch)

CENTRAL VIRGINIA
Colortree Group, which has operated for more than 30 years printing direct-mail envelopes, flyers, brochures, abruptly closed its offices and plant in Henrico County, laying off 240 employees. One laid-off employee filed a federal lawsuit seeking lost wages for being let go without the required federal 60-day termination notice. The suit also seeks class action status for all of the employees who were laid off. (Richmond Times-Dispatch)

Henrico County-based HHHunt, a diversified real estate development, building and management company, ranked No. 36 on the Professional Builder magazine Housing Giants list, which includes both new homes for sale and apartment homes for rent. The company moved up 17 spots from No. 53 last year. HHHunt also ranked No. 72 on Builder magazine’s Builder 100 list of largest homebuilders based on the number of new home closings. (News release)

Two Richmond-area construction companies have merged. Hourigan, a major Richmond-based construction and development firm, has merged operations with The Capstone Contracting Co., which is based in Henrico County. Terms of the deal were not disclosed. The 20-plus employees at Capstone, a general contractor and design/builder, became employees at Hourigan, which has about 200 workers. (Richmond Times-Dispatch)

Richmond-based Lingerfelt CommonWealth Partners LLC announced in May it had acquired two office towers in St. Louis along with a four-level parking garage. Terms of the deal were not disclosed. The seller in the deal was KBS, a private equity real estate company and investment adviser based in California. The towers, dubbed Pierre Laclede Center, are on Forsyth Boulevard in the Clayton submarket of St. Louis. The buildings, which total 580,368 square feet, were built in 1964 and 1970. They have undergone $19 million in renovations since 2010. (VirginiaBusiness.com)

The University of Virginia Darden School of Business has announced the biggest gift in its history. Frank M. Sands Sr., the founder of Sands Capital Management, is giving $68 million to the graduate business school. Sands received an MBA degree from Darden in 1963. The gift will establish the Sands Institute for Lifelong Learning, which the school said will enable innovation in degree, nondegree and online programs while helping retain and recruit top-ranked faculty members. Sands and his son, Frank Sands, who also is a Darden alum, previously gave $5 million that was used to build Darden’s new campus in Arlington’s Rosslyn district, U.Va. Darden Sands Family Grounds. That facility opened in March. (VirginiaBusiness.com)

Nonprofit economic development organization Virginia Gateway Region announced in its annual report the fulfillment of 38 new business ventures, almost 2,000 more jobs and $460 million in capital investments for the area it represents, which includes the cities of Colonial Heights, Hopewell and Petersburg, and the counties of Chesterfield, Dinwiddie, Prince George, Surry and Sussex. This year’s annual report announced new local projects for companies like PepsiCo, Sabra Dipping Company LLC, NVHomes and Rolls-Royce. The Rolls-Royce expansion in Prince George created 100 new jobs, bringing the company’s total in that county to 400 jobs with the new $40 million investment. (The Progress Index)

SOUTHERN VIRGINIA
Danville could get a satellite horse race betting facility. Colonial Downs Group, which owns the Colonial Downs horse racetrack in New Kent County, has submitted paperwork in Danville to bring a voter referendum to allow off-track, pari-mutuel betting at a satellite facility in Danville. Backers of the proposal hope to bring a referendum before Danville voters in November. Colonial Downs Group intends for the Danville satellite site to be branded as Rosie’s Gaming Emporium, a gaming facility with sites throughout Virginia. An announcement about a preferred site is expected to be made during the referendum campaign, company spokesman Mark Hubbard said. (Danville Register & Bee)

Higher pay in the private sector appears to be taking a toll on Danville’s public sector. “We’ve got a wide variety of vacancies,” said Danville Human Resources Director Sara Weller. “The bottom line is we’re having a challenge finding qualified people.” For example, Danville Public Works Director Rick Drazenovich says he cannot find experienced construction workers even though he has been advertising jobs for several months. He’s also had two openings for project engineers and has had trouble getting qualified applicants. (Danville Register & Bee)

In late May members of the Patrick Henry Community College board unanimously gave their approval for a new program. The three-semester precision machining program is slated to launch this fall. The program will function as the first year of the two-year precision machining program that Danville Community College offers. Officials from PHCC say that creating this transfer pathway between the two community colleges will make a high-demand, well-paying career more accessible to Henry and Patrick County residents. (Danville Register & Bee)

A Danville-based company was acquired by a major producer of salad dressings and other products. Sandpoint, Idaho-based Litehouse Inc. invested $46 million to buy and expand Sky Valley Foods in Danville. Sky Valley Foods sells dressings, condiments, sauces and organic sodas. The deal was finalized in June. Danville is Litehouse’s first East Coast production facility, creating 160 jobs over the next five years. Litehouse also plans to retain Sky Valley Foods’ 50 employees. Litehouse makes salad dressings, dips, cheese, herbs and other packaged products throughout North America. The employee-owned company has five other manufacturing facilities in the United States, located in Michigan, Utah and Idaho. (Virginia­­Business.com)

How much money would it take to entice someone to move to a rural locality? Would $140,000 motivate someone to work as a nurse in Halifax County? Is $24,000 enough to attract a recent college graduate to teach high school science in Russell County? In Southwest and Southside Virginia, where young people are leaving to find opportunity elsewhere, a state commission is trying to combat that trend by offering to pay off student loan debt for those willing to live and work in the region. The Virginia Tobacco Region Revitalization Commission is overhauling its student loan repayment program with a new focus on luring people to one of the 40 localities in Southwest and Southside for hard-to-fill jobs. (The Roanoke Times)

EASTERN VIRGINIA
As national and local conversations circle around ways to prevent gun violence in public places, a local amusement park is stepping up its security. Busch Gardens has installed walk-through metal detectors at its guest entry area to improve the screening process, said Cindy Sarko, Busch Gardens Williamsburg leader of communications. (WY Daily)

Don’t be surprised if you walk into a Dollar Tree and see new products for $3, $4 or $5. Chesapeake-based Dollar Tree began experimenting with new pricing in a limited number of locations in mid-May, dubbing sections in the stores “Dollar Tree Plus!” During a call in late May to discuss first-quarter earnings, President and CEO Gary Philbin said the company planned to initially expand the pricing strategy to more than 100 stores of its 7,102 Dollar Tree stores. The multiple price test is part of an effort to follow an activist investor’s suggestion that the chain have multiple prices in its stores. Philbin said prices wouldn’t be raised for current $1 items. (The Virginian-Pilot)

A co-defendant is pleading guilty in a federal fraud case that accuses a former host of a financial advice radio show of leading an effort that cost hundreds of investors $20 million. Raeann Gibson had been the chief operating officer of Daryl Gene Bank’s Dominion Investment Group LLC, managing it day to day in Virginia Beach until it was moved to Florida. She agreed to plead guilty to conspiracy to commit mail fraud and conspiracy to commit money laundering. Each count comes with a possible maximum sentence of five years in prison and a $250,000 fine. The agreement also appears to require Gibson to forfeit $530,005 and a 2012 BMW 535i. (The Virginian-Pilot)

The iconic toy store that made many of a certain age want to be “Big” like Tom Hanks and dance atop a floor piano is coming to an airport near you. FAO Schwarz was set to open by mid-June at Norfolk International Airport, past security in Concourse B, making it one of only a handful of airports with the shop. The oversize-toy wonderland has had several owners since it was created in 1862, including Toys ‘R’ Us, which closed its Las Vegas store featuring a three-story Trojan horse, in 2010, and its famed Fifth Avenue store in New York City in 2015. (The Virginian-Pilot)

A newly released study involving Norfolk, Virginia Beach and the Navy recommends sweeping changes that would reshape areas from Ocean View to Sandbridge to prevent floodwaters from cutting off military bases. The 266-page report details 22 steps both cities and other partners should take to ensure the Navy can carry out its mission and remain a key part of the region’s economy in the face of climate change. (The Virginian-Pilot)

Norfolk International Airport is raising its long-term parking rate by $1 starting Sept. 1, and it expects to get $2.68 million in return. The last increase came in February 2014, when the rate was set at $9 a day, said airport director Robert Bowen. The new increase will raise the price to $10 a day. At Richmond International Airport, garage parking is $12 a day and the shuttle economy lot costs $7. Newport News/Williamsburg International Airport has a $7 economy lot, an $8 a day long-term surface parking lot and $10 garage parking. (The Virginian-Pilot)