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Staff Reports// April 30, 2020//
Armada Hoffler Properties Inc. announced in April that a deal to sell seven of its grocery-anchored shopping centers, including two in Hampton Roads, had fallen through. The Virginia Beach developer that built Town Center also said it had indefinitely postponed all asset acquisition activity. The company had planned to get $106.5 million from the sale, to an institutional investor, and use the proceeds toward $135 million in property acquisitions this year. (The Virginian-Pilot)
Bon Secours Mercy Health, which operates 11 hospitals in the Richmond and Hampton Roads regions, furloughed 700 full-time employees across seven states and 12 markets in late March. The health system said in a statement that the furloughs came as a result of fewer people seeking primary care, outpatient and surgical services, because most recent services were related to the COVID-19 outbreak. The furlough was expected to last 30 to 90 days, possibly through June. (VirginiaBusiness.com)
In response to the pandemic, Colonial Williamsburg Foundation closed its Historic Area, museums, visitor center, hotels and restaurants through May 31 and furloughed most of its hospitality staff. The foundation also instituted pay cuts for all employees making more than $50,000 per year, with the highest-paid managers taking the largest cuts. The Williamsburg Lodge, Autograph Collection, which had remained open to assist city and public health officials with emergency lodging, closed on May 1. (VirginiaBusiness.com)
Newport News Shipbuilding reported 29 confirmed COVID-19 cases as of mid-April, providing a detailed look at how the coronavirus spread, as well as new steps the yard wants shipbuilders to take to protect themselves and the community at large. President Jennifer Boykin, in a message to staffers, said that nearly half of the company’s 120 quarantines were the result of contact with only two cases. One involved an employee who was riding in vehicles with co-workers shortly before feeling ill, and the other was the result of employees visiting a co-worker who was sick at home. Boykin later required all employees to bring a mask to work and wear it if within 6 feet of another person. (Daily Press)
The Newport News/Williamsburg International Airport sounded the alarm in April, saying that the $2.2 trillion federal stimulus bill could lead to the end of commercial air service at the airport. The U.S. Department of Transportation interpreted one provision — requiring airlines to keep flying out of markets they already serve — as meaning that airlines serving Hampton Roads need to fly out of only one of the region’s two commercial airports to comply. Delta Air Lines and American Airlines, the two remaining carriers serving Newport News, have not announced plans to consolidate operations at Norfolk International Airport. But the possibility that they could do so is alarming airport and government officials. (Daily Press)
As the coronavirus continues to smother the global shipping industry, the Port of Virginia will close the Portsmouth Marine Terminal, effective May 4. The port will phase out ship calls there and move them to its two other nearby container terminals, Virginia International Gateway and Norfolk International Terminals. The port also reduced truck gate hours by an hour at Virginia International Gateway and Norfolk International Terminals. (The Virginian-Pilot)
Smithfield Foods announced in April that it would be closing its pork processing plant in Sioux Falls, South Dakota, until further notice after hundreds of employees tested positive for the coronavirus — a step the head of the Smithfield-based company warned could hurt the nation’s meat supply. The announcement came a day after South Dakota’s governor and Sioux Falls’ mayor wrote to Smithfield and urged the company to suspend operations for 14 days so its workers could self-isolate and the plant could be disinfected. A few days later, Smithfield announced it would close two more pork-processing plants in Wisconsin and Missouri. (The Associated Press)
The Community Foundation of the Central Blue Ridge launched a COVID-19 Local Response Fund — and announced it received a $100,000 donation to jump-start it. The initial donation came from a Staunton couple and will provide resources to charitable organizations in Staunton, Waynesboro, and the counties of Augusta, Highland and Nelson. A partnership comprised of the Community Foundation, United Way, Augusta Health, CAPSAW, officials from local municipalities, and others will oversee the distribution of funds to nonprofit organizations. (News Leader)
Frederick Water is accepting bids until May 14 to build the Henry F. Sliwinski Water Treatment Plant. The plant is a component of the Opequon Water Supply Plan (OWSP), which aims to meet Frederick Water’s projected needs by drawing water from Opequon Creek. By 2035, Frederick Water’s customers may require up to 12 million gallons of drinking water per day — about twice the current average usage. It will take about two years to build the plant and will cost about $20 million to build. Construction is set to begin this summer. (The Winchester Star)
Shenandoah National Park is temporarily closed in response to the COVID-19 pandemic. Virginia State Highways 211 and 33, which pass through the park, will remain accessible. The National Park Service closed all overnight shelters and privies along the 2,193-mile-long Appalachian Trail, which passes through Shenandoah National Park as well as the counties of Warren and Clarke. Trailhead facilities in Virginia are closed on the Appalachian Trail. (The Northern Virginia Daily)
Shenandoah University’s 12th Annual Business Symposium was postponed until Nov. 13 due to the coronavirus pandemic. The event’s keynote speaker, Daymond John, one of the stars of ABC’s popular entrepreneur pitch show “Shark Tank,” has been rescheduled for the November date. (Shenandoah University release)
The Southeastern Container Inc. plant in Frederick County, which usually makes bottles for Coca-Cola, produced more than 100,000 hand sanitizer bottles for sanitizer manufacturers in early April. Additionally, two Southeastern employees are making face masks to donate to Valley Health and Winchester Medical Center, using sewing equipment they brought from home. (The Winchester Star)
PEOPLE
Augusta County promoted Rebekah Castle as the county’s new director of economic development and marketing. Castle served as the economic development department’s marketing coordinator for more than six years. She is a member of the Virginia Economic Developers Association. (The News Virginian)
United Way of Greater Augusta has promoted Kristi Williams as its new president and CEO. Previously director of operations, Williams has renamed the organization to United Way of Staunton, Augusta County and Waynesboro (SAW). Williams is also the former director of marketing and communications for the Greater Augusta Regional Chamber of Commerce. (The News Virginian)
Coal mines in Southwest Virginia shut down operations in late March and early April to stop the spread of the coronavirus. Buchanan Mine No.1, which employs 543 workers in Southwest Virginia closed, is owned by Coronado Coal. And INMET Mining LLC — which owns the Osaka, Pigeon Creek, North Fork and D-31 mines — also closed, leaving nearly 100 people out of work. Contura Energy closed its coal mines in Virginia in early April. Its Virginia facilities include 88 Strip, Long Branch, Deep Mine 41, Deep Mine 44, No. 10, McClure River and Toms Creek. The mines will keep small crews at each site for maintenance. (VirginiaBusiness.com)
Floyd-based Hollingsworth & Vose (H&V), a manufacturer of advanced filtration materials, including media used to make N95 face masks, has added staff and adjusted manufacturing schedules to make more product, the company announced in late March. The team is also focused on producing materials used in surgical hoods, as well as HVAC filtration media that would be used in hospital settings. Company-wide, H&V is producing media for ventilators and filtration material for use in operating rooms. H&V is currently supplying media that will be used to produce 40 million N95 face masks, 40 million medical breathing devices (including ventilators), 20,000 HEPA filters for use in hospitals and labs, and 1 million surgical hoods per month. (SWVA Today)
More than $5 million will go to the federal Mine Safety and Health Administration to settle unpaid mine penalties from two dozen coal companies. The settlement includes mine operations in Wise, Lee, Dickenson and Tazewell counties that were liable for more than $646,000, along with companies in adjacent Kentucky and West Virginia counties. Twenty-three companies agreed to pay the full penalties with interest, totaling nearly $4.07 million. Virginia firms that were named in the suit include Roanoke-based Southern Coal Corp.; A&G Coal Corp., with mines in Wise and Dickenson counties; Nine Mile Mining Inc., with mines in Lee and Wise counties; Virginia Fuel Corp., with mines in Lee, Dickenson and Wise counties; and Black River Coal LLC, with a mine in Tazewell County. (The Coalfield Progress)
Packaging company Scholle IPN Corp. in Chilhowie reduced its workforce in early April by 128 employees due to a sharp decline in business following the COVID-19 crisis. Some of the reductions are anticipated to be permanent, although the entire facility is not closed. Just in the past year, Scholle IPN on Deer Valley Road in Chilhowie had expanded its production facility with a $10.29 million investment and more than 42 additional jobs. (Bristol Herald Courier)
Utility Trailer Manufacturing, one of the largest employers in Southwest Virginia, plans to lay off 326 employees due to the COVID-19 pandemic. Utility Trailer issued Worker Adjustment and Retraining Notification (WARN) letters April 9 and 10 to certain members of its Glade Spring workforce. The impact date for the layoffs is June 6. Plant Manager Sam Cassell said the company does not have an end date for the layoff. Cassell also confirmed that on April 6, there was one confirmed case of COVID-19 at the company. A notice has been filed with the Virginia Employment Commission. (Bristol Herald Courier)
Appalachian Power proposed a rate increase in late March that would raise monthly bills for its customers by an average of 5%. Under the 2018 Grid Transformation and Security Act, Appalachian Power had to submit a rate case filing on March 31, and the State Corporation Commission is required to rule on the application by Nov. 30. It would take effect in 2021 if approved. The rates customers currently pay for electricity were set in 2011 and are based on 2010 costs. The company is proposing to implement a rate discount effective December through February each year. Appalachian Power has 1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power). (Appalachian Power news release)
While business closures and work-from-home orders have altered the employment scene for many Southwest Virginians, most outdoor construction projects are moving forward. In Roanoke, field workers are continuing to inspect construction sites. Construction of an expansion of the Fralin Biomedical Research Institute at the Virginia Tech-Carilion complex in Roanoke has not experienced any disruptions or delays. Road maintenance and major highway projects in the region have not been affected. Work on the Mountain Valley Pipeline is also not expected to be further slowed. (The Roanoke Times)
A 517,000-square-foot student housing community will be built near Virginia Tech. Charleston, South Carolina-based real estate developer Greystar announced in early April that it will develop the 424-unit property at 1001 University City Boulevard, which will accommodate 1,040 students. Nine of the 11 buildings will be razed to make space for six buildings that include one-, two-, three- and four-bedroom apartments and townhomes. The architect for the project is BSB Design Inc. Blacksburg has seen a student housing surge after Tech’s $1.5 billion fundraising campaign to expand its programming, expanding enrollment to more than 36,000 students. Construction is expected to begin in fall 2020 and to be completed by fall 2022. (VirginiaBusiness.com)
Precision Fabrics Group (PFG), which has been in business in Vinton since 1988, has expanded and expedited its manufacturing of protective medical gear. PFG produces fabrics, both woven and nonwoven, including personal protective gear (such as masks, drapes and gowns), wipes for the pharmaceutical industry and personal hygiene fabrics for consumers. The medical fabrics are directly involved in the corona-virus fight — for the medical community, the military and the pharmaceutical industry. The fabric for the products is manufactured at the Vinton plant and then shipped to its Greensboro plant to be finished/dyed. PFG employs approximately 600 associates and operates plants in Vinton, North Carolina, and Tennessee. (Vinton Messenger)
The Virginia Tech Transportation Institute (VTTI), in partnership with a 16-member team, received a $7.5 million research grant in late March to provide the trucking industry, regulators and the general public with safety guidelines for automated driving systems. VTTI will create best practices for technology deployment, driver training, installation, maintenance, inspection procedures, insurance, roadway readiness, data and cybersecurity for automated driving systems. The team will work with safety technology developer Pronto to demonstrate the integration of automation technology into fleet operations on public U.S. roadways. (Virginia Tech news release)
Danville ranked near the top of a list of the hardest hit localities in Virginia for jobless claims amid the economic fallout from the coronavirus. The city was third highest per capita, with 68 unemployment claims per 1,000 residents in early April. The number largely can be attributed to its service, accommodation and retail industries, which make up more than 22% of the city’s total businesses and provide more than 7,000 jobs. Also, Goodyear Tire & Rubber, the region’s largest employer, with roughly 1,900 employees, has shut down until further notice as market conditions remain poor. (Danville Register & Bee)
Danville City Council adopted a resolution in April supporting the Danville Braves Minor League Baseball team, which is on the chopping block after Major League Baseball proposed cutting ties with 42 minor league teams. City Manager Ken Larking wrote a letter to councilors, saying that minor league teams “employ thousands of individuals, help strengthen local businesses and support charitable organizations.” In March, the Atlanta Braves announced it would provide relief assistance for ballpark workers for its farm teams, including the Danville Braves. (Danville Register & Bee)
Groundbreaking on the Foxhound Solar LLC facility in Mount Laurel, originally planned for spring, was pushed back to September. Longroad Energy, the project’s Boston-based developer, said in April it was forced to delay construction due to a combination of factors related to Old Dominion Electric Cooperative and the spread of the corona-virus. Longroad Energy officials say that Foxhound Solar is still planning to build an 83-megawatt facility on 1,125 acres near the Clover Power Station. Panels will spread across nearly 600 acres, and the rest of the land will be set aside as a protective buffer and possibly for farm use. (SoVaNow)
Construction continued in March on two South Boston projects — the Southern Virginia Innovation Hub and the South Boston Fire Department — despite the COVID-19 outbreak. The innovation hub, developed by Mid-Atlantic Broadband Communities Corp. in partnership with Microsoft, is set to be completed in November. The virus has slowed some processes, including permits and materials, but in general, most projects in Halifax County are on course, managers said. (SoVaNow)
Danville-based Supply Resources Inc. purchased a 152,379-square-foot warehouse and distribution facility formerly used by Ikea in Pittsylvania County for $3.85 million in April. Ikea closed its Pittsylvania plant about two miles away from the warehouse in late December, and Morgan Olson LLC, a delivery van manufacturer based in Michigan, has been finishing renovations there this spring, with its first vans expected to be manufactured at the plant by July. Supply Resources will distribute packaging, corrugated and paper products from the former Ikea warehouse, which was previously owned by Cruciger LP. (VirginiaBusiness.com)
Virginia Legal Aid Society recently set up an office in Martinsville, providing free legal advice. As financial fallout from the pandemic continues to spread, attorney Rebecca Brown is helping clients navigate issues related to safe and secure housing. Funding for the Martinsville legal aid office came from The Harvest Foundation, which awarded the society a three-year, $300,000 grant in December. Before, clients were served in the Danville office. (Martinsville Bulletin)
PEOPLE
Don Aungst has been hired as Averett University’s new vice president and chief financial and operating officer. He started at the Danville university in April and came from Susquehanna University in Pennsylvania, where he was CFO. Aungst has more than 30 years of experience in higher education leadership, including stints at Capital University, Upper Iowa University and Mercy College. (VirginiaBusiness.com)
Construction of the first of Amazon.com Inc.’s HQ2 towers remained on schedule in April, although the planning process for the green space around the towers was slowed while spread of the coronavirus forced cancellation of public meetings. Clark Construction, lead contractor on the first 2.1 million-square-foot office building, said that work at Metropolitan Park in Pentagon City was advancing with additional safety measures following guidance from the Occupational Safety and Health Administration (OSHA) and the Centers for Disease Control and Prevention (CDC). Amazon expects to open its first towers in early 2023, including 67,000 square feet of retail. (Washington Business Journal)
McLean-based global IT consulting firm Booz Allen Hamilton pledged to keep its 27,000 workers employed at least through July 1 during the coronavirus crisis and also has promised funding to support employees dealing with health care and child care issues. The company said in April it will redirect $100 million to a “pandemic resilience program” to support employees, including those in Norfolk, where the company has a large presence, and make donations to food banks and other nonprofit organizations. (VirginiaBusiness.com)
A series of proposed tax hikes are off the table in Fairfax County, undoing plans for substantial new affordable housing spending as officials attempt to respond to the havoc coronavirus is wreaking on the economy. County Executive Bryan Hill submitted a revised budget proposal for fiscal 2021 in April, erasing a previously proposed 3-cent real estate tax rate increase and a 4% admissions tax hike on movie and concert tickets. In Loudoun County, officials took the unusual step of holding $100 million in reserve in its new budget in a bid to prepare for potentially dire drops in tax revenue tied to the coronavirus crisis. Supervisors appropriated the full $3 billion in spending recommended by County Administrator Tim Hemstreet, but they held off on allocating $40 million for the county government and $60 million for the school system. (Washington Business Journal)
Ashburn-based FSA Federal, a government services company, has won a U.S. Department of Justice contract potentially worth $1.3 billion to continue its support of the DOJ’s asset forfeiture work. Started in 2004 to support DOJ law enforcement contracts, FSA is a joint venture of Reston-based Science Applications International Corp. and Maryland-based Amentum. This is the third time that FSA Federal has been selected for this contract. (VirginiaBusiness.com)
McLean-based Gannett Co. Inc., the nation’s largest newspaper publisher, announced mass layoffs, furloughs and pay cuts in an email to employees in late March. Like other media outlets, the company has reportedly seen a large drop in advertising revenues due to the financial crisis caused by the COVID-19 pandemic. Gannett has a portfolio of 261 local daily newspapers in 46 states and Guam, including its flagship publication, USA Today. Many workers have been furloughed for five days per month until June. (VirginiaBusiness.com)
Falls Church-based Inova Health System is cutting 427 nonclinical positions, mostly management roles, as the organization responds to the corona-virus pandemic and sees its bottom line take a major hit. The layoffs were announced April 21 in a letter to staff. Inova’s revenue has declined by 40% because of substantially reduced elective surgery activity, and the system has had to spend $32 million for coronavirus-associated protective measures. Inova has also frozen nearly all discretionary spending and reduced senior executives’ salaries by 25%. (Washington Business Journal)
A nursing home in Henrico County, Canterbury Rehabilitation & Healthcare Center, saw the state’s largest fatal outbreak of the COVID-19 virus in late March and April. By mid-April, 49 residents had died from the virus, and others were receiving treatment at a hospital or at the center. With assistance from the Henrico County Health Department, the center tested all of its residents and staff members in April, discovering that more than half of the 84 positive patients did not show symptoms. (VirginiaBusiness.com)
Goochland County-based CarMax Inc. announced in April that more than half of its employees nationwide — about 15,500 workers — would have to take unpaid furlough leave starting April 18. That number includes about 450 workers in Virginia, where CarMax has 1,600 employees. Most of the affected employees work at one of CarMax’s 70 stores in states that have mandated their closure. The 10 stores in Virginia remained open. (Richmond Times-Dispatch)
Chesterfield County furloughed more than 500 part-time and full-time county employees starting April 4 until further notice, the county announced in late March. Employees were notified last week of the furloughs. “Unfortunately, we find ourselves in unusual circumstances as the national, state and local economies continue to be negatively impacted by COVID-19 and the subsequent quarantines,” County Administrator Joseph P. Casey said. County department budgets were frozen to limit the number of furloughs. Of the 500 furloughed positions, approximately 10% were vacant positions. (VirginiaBusiness.com)
DuPont Spruance shifted its work in March to producing more Tyvek, a material typically used in protecting buildings during construction, as protective clothing like coveralls for medical workers. The Chesterfield County factory, DuPont’s largest in the world, was running 24 hours a day, seven days a week, with employees working 12-hour shifts, even after five workers tested positive for COVID-19. One died from complications related to the virus, the company announced in April. The plant partnered in April with the U.S. Department of Health and Human Services and FedEx to expedite shipping of Tyvek garments to hospitals and other health care facilities. (VirginiaBusiness.com)
Lynchburg city officials blasted Liberty University President Jerry Falwell Jr. in March after he invited students back to campus after spring break, despite the growing COVID-19 pandemic. About 1,110 students returned to campus in March, a spokesman said. After national news stories reported virus symptoms in the college community, the university obtained arrest warrants on charges of criminal trespassing against two journalists — a freelance photographer for The New York Times and a ProPublica reporter — for Class 1 misdemeanors that are punishable by up to a year in jail. (VirginiaBusiness.com and Associated Press)
Goochland County-based Performance Food Group Co., one of the nation’s largest food-service distributors, has furloughed or eliminated about 3,000 of its 25,000 employees across the country. The company said it took the actions and other steps to protect its long-term financial position because of the economic impact from the coronavirus pandemic. Performance also is deferring 25% of senior management’s base salary and 25% of board of directors’ cash fees through the end of 2020. The company has dispatched 1,100 employees to work at grocery stores or distribution centers to help keep shelves stocked with food. (Richmond Times-Dispatch)
