December For The Record

Eastern Virginia

In early November, the U.S. Navy awarded Newport News-based Airborne Tactical Advantage Co. (ATAC) a potential five-year, $441.58 million contract to provide subsonic and supersonic aircraft for the branch’s fleet training operations. Under the contract, ATAC will supply Type IV supersonic (which exceed the speed of sound) and Type III high subsonic (which has a maximum speed less than the speed of sound) aircraft for airborne threat simulation activities for the branch’s Specialized and Proven Aircraft program. (VirginiaBusiness.com)

Elizabeth River Crossings HoldCo LLC, the operator of the Downtown and Midtown tunnels that run between Norfolk and Portsmouth, was sold in November to Abertis Infraestructuras S.A. and Manulife Investment Management Ltd., on behalf of John Hancock Life Insurance Co., for more than $2 billion. Elizabeth River Crossings operates four tunnels and a highway in the Norfolk area, and its transportation infrastructure is used by more than 100,000 vehicles for daily commutes. (VirginiaBusiness.com)

In late October, crews broke ground on the $3.8 billion Hampton Roads Bridge-Tunnel (HRBT) expansion — the largest project in the Virginia Department of Transportation’s history and one of the largest infrastructure projects in the nation. The project will increase tunnel and interstate capacity along 9.9 miles of Interstate 64 between Hampton and Norfolk in order to reduce congestion and improve access to the Port of Virginia. The completed project — which is expected for 2025 — will include a total of eight lanes across the water. (VirginiaBusiness.com)

Referendums for proposed casinos in Norfolk and Portsmouth were approved overwhelmingly by voters on Nov. 3. The Pamunkey Indian Tribe’s proposed $500 million Norfolk casino near Harbor Park received 64.4% approval in the referendum vote; Chicago-based Rush Street Gaming saw 66.7% of voters approve its $300 million hotel-casino complex near the campus of Tidewater Community College. Upon its completion in 2023, Norfolk city officials anticipate that their casino will bring in roughly $44 million annually in taxes and gambling revenue. Rush Street says its tables and slots will send $16 million annually to Portsmouth’s coffers. (The Virginian-Pilot)

The governors of Virginia, Maryland and North Carolina announced in October a three-state collaboration to advance offshore wind projects — the Southeast and Mid-Atlantic Regional Transformative Partnership for Offshore Wind Energy Resources. SMART-POWER will work to promote the Southeast and mid-Atlantic regions as a hub for offshore wind energy and industry. The U.S. Department of Energy estimates that the Atlantic Coast offshore wind project pipeline will support up to 86,000 jobs and $57 billion in investments and provide up to $25 billion in economic output by 2030. (VirginiaBusiness.com)

_______________________________________________________________________________________________________________

Southern Virginia

Danville voters overwhelmingly passed a local casino referendum on Nov. 3, giving Caesars Entertainment the green light for its $400 million proposed casino resort in the Schoolfield neighborhood. More than 68% of Danville’s in-person voters approved the referendum, joined by majorities of voters in Bristol, Norfolk and Portsmouth voting on their own casino referendums. Caesars CEO Tom Reeg said he expects to bring 1,300 permanent jobs to the area, and the deal will include a $20 million one-time payment to the city, including $5 million for the property. A study by the state Joint Legislative Audit and Review Commission predicted that the casino will generate at least $190 million in direct revenue and $51 million in tax revenue each year by 2025. The casino is expected to open in 2023. (VirginiaBusiness.com)

Danville Utilities, in partnership with three energy companies, announced in late October it has completed the city’s largest solar development to date, a 14-megawatt utility-scale solar project on 100 acres. Started in December 2019, the project is estimated to generate 23,551 megawatt hours a year for 1,500 Danville and Pittsylvania County residences. The solar farm is next to other solar project sites on Irish Road and Whitmell. (VirginiaBusiness.com)

In late October, the Halifax County Industrial Development Authority fired its executive director, Brian Brown, a little more than a year after hiring him. The decision came after IDA board members met in a closed emergency session that did not include Brown. After coming out of the meeting, IDA directors asked Brown to turn over all of the files he had been working on, and two members escorted him from the building. Brown was clearly surprised by his firing, and the board did not explain the decision, other than board chair Robert Bates’ statement that the IDA was “moving in a different direction.” In November, the IDA hired Michael Davidson, retired director of the Campbell County economic development department, as its part-time interim director. (News & Record)

North Carolina-based Ison Furniture Manufacturing Inc. will invest $3.5 million to acquire and renovate the recently closed A.C. Furniture Co. Inc. facility in Pittsylvania County, creating 150 jobs, Gov. Ralph Northam announced in late October. The company also will purchase new assembly and production equipment, and Ison’s supplier, Dogwood Global LLC, will occupy a vacant onsite building and invest $500,000 in new equipment. (VirginiaBusiness.com)

Three group homes operated by Southside Behavioral Health were struck by the coronavirus in early November, with three residents and an undisclosed number of staff members testing positive for COVID-19. Brandon House in South Boston was closed, and Ashley Manor and Hope House in La Crosse were affected. Separately, South Boston Health and Rehab, a long-term care facility formerly known as The Woodview, saw an outbreak of 145 people as of Nov. 9, according to the Virginia Department of Health. Until recently, the home, purchased in July by Saber Healthcare from Sentara Healthcare, had about 200 residents. (SoVaNow)

In an October education roundtable with Sen. Mark Warner, officials from public schools and colleges in Martinsville and Henry County said they all face a common challenge during the pandemic: broadband access. Educators at New College Institute, Patrick Henry Community College and the two public school systems continue to offer at least some of their classes virtually, but many students don’t have high-speed internet access, they told Warner. The senator, recently re-elected to a third term, said he will push for the next federal coronavirus relief package to include broadband funding and more money for schools. (Martinsville Bulletin)

_______________________________________________________________________________________________________________

Shenandoah Valley

Virginia Beach-based Armada Hoffler Properties, owner of the Harrisonburg Regal movie theater property, announced plans in late October to redevelop the site for “a major multifamily component” as well as restaurants and retail. Regal announced on its website in early October that the chain would close theaters until further notice due to the COVID-19 pandemic. On Oct. 26, Armada Hoffler announced it had terminated its lease with the cinema chain. The Harrisonburg Regal property is 9.5 acres and valued at $9.35 million — more than $3.7 million for the land alone, according to Harrisonburg city records. The cinema was built in 1999. (Daily News-Record)

Bridgewater College’s board of trustees approved recommendations in November that will eliminate programming and result in 40 faculty and staff layoffs. The layoffs will take effect on June 30, and severance packages will be given. Bridgewater will also phase out major programs in applied chemistry, French, mathematics, nutritional science, philosophy and religion, and physics, as well as restructure its equestrian program.
(Daily News-Record)

Researchers at James Madison University received grants this summer to learn more about the early development of the brain and the possible causes of neurological disorders such as autism or Asperger syndrome. A $423,675 grant from the National Institutes of Health is funding research into early developmental issues in children. An additional $1 million grant from NIH will assist research into early brain development. With the grants, researchers will attempt to figure out the causes of these seemingly random disorders and how to treat or lessen their effects. (The Breeze)

Shenandoah Memorial Hospital was preparing in early November to begin work on the second phase of a multiyear master facility plan to upgrade the 69-year-old hospital in Woodstock. Phase Two is set to cost around $3.5 million and will be completed by summer 2021. It will include a larger physician and therapy gym, additional treatment rooms, enhanced areas for speech therapy and wound therapy, dedicated pediatric therapy space, as well as upgrades to building systems to comply with current codes and standards. (The Northern Virginia Daily)

As of mid-November, Winchester, Frederick County and Clarke County public schools were seeking new health insurance coverage amid unresolved contract negotiations between Valley Health System and Anthem Blue Cross Blue Shield. The school divisions currently offer Anthem to their employees. Valley Health operates Winchester Medical Center and five other hospitals in the region, in addition to numerous other health care facilities. If a deal isn’t reached by the end of the year, people with Anthem or related Blue Cross Blue Shield policies will be out-of-network at Valley Health facilities, resulting in higher out-of-pocket costs for medical care. Failure to reach an agreement would affect about 40,000 people, including local government workers. (The Winchester Star)

In November, the General Assembly allocated $1 million for an independent investigation of alleged racist practices at Virginia Military Institute, following media exposés by The Roanoke Times and The Washington Post. In an Oct. 19 letter, Gov. Ralph Northam and top state legislators announced that they were “directing an independent, third-party review of VMI culture, policies, practices and equity in disciplinary procedures” by a “nonpartisan, national organization.” One week later, the school’s superintendent, retired U.S. Army Gen. J.H. Binford Peay III, resigned. (Richmond Times-Dispatch, VirginiaBusiness.com)

_______________________________________________________________________________________________________________

Northern Virginia

The California Department of Forestry and Fire Protection awarded McLean-based DynCorp International a potential five-year, $352 million contract to provide depot-level aircraft maintenance services for CAL FIRE’s wildfire control operations. Under the contract, DynCorp will help maintain 57 fixed-wing vehicles in Sacramento, California. According to Jeff Cavarra, DynCorp’s CAL FIRE program director, there was an increase of 2,700 fires above the previous 5-year average from Jan. 1 through Oct. 25. (VirginiaBusiness.com)

The U.S. Navy awarded the Electric Boat subsidiary of Reston-based General Dynamics Corp. a $9.474 billion contract modification to build and test the first two Columbia-class ballistic missile submarines — the largest ever built by the United States — and provide related design and engineering services, the company announced in early November. The Columbia program will replace the aging Ohio class of ballistic missile subs, and Electric Boat will perform about 78% of construction at the company’s Rhode Island complex. (VirginiaBusiness.com)

One of the largest planned data center campuses in Loudoun County has earned the support of a key county official after the parties negotiated a deal over the manner in which power will be delivered to the server farm. Amazon Web Services has proposed 1.75 million square feet of data centers for 100 acres on the north side of Route 50, immediately south of Washington Dulles International Airport. Supervisor Matt Letourneau, R-Dulles, sought a firm commitment that power lines on the Route 50 corridor wouldn’t be extended to the site. The lines won’t be extended, after negotiations between the county, AWS and Dominion Energy Inc. (Washington Business Journal)

The Metropolitan Washington Airports Authority has seen its year-to-date revenue from airlines decline more than 23%, according to late October figures, with revenue from sources indirectly related to aviation service declining 46%. From January to August, total revenue from airline operations was $181.6 million, down from $236.4 million during the same period in 2019. Declines at the Ronald Reagan Washington National Airport and Washington Dulles International Airport include a 45% decrease in landing fees to $36.7 million, and rents paid by airlines for use of airport facilities dropped 10% to $138.8 million. (InsideNova)

Raytheon Technologies Corp. reached a deal in November to extend its stay in Rosslyn nearly three years before its current lease was slated to expire. The Massachusetts-based defense contractor signed a long-term lease renewal with Monday Properties to remain in its 116,000 square feet at 1100 Wilson Blvd. in Arlington. It’s one of many tenants that have moved to take advantage of more generous lease terms during the ongoing coronavirus pandemic. (Washington Business Journal)

Volkswagen Group of America Inc. announced in late October it will keep its headquarters in Fairfax County, signing a 20-year lease agreement in Reston Town Center. The automobile giant’s North America headquarters has been in Fairfax since 2007, and it will be the anchor tenant in Boston Properties’ 1.1 million-square-foot development in the next phase of the town center, now under construction. It will occupy 196,000 square feet, with the move planned by the end of 2023. (VirginiaBusiness.com)

_______________________________________________________________________________________________________________

Central Virginia

The Federal Energy Regulatory Commission has put the canceled Atlantic Coast Pipeline on the clock, asking officials to file specific plans by the end of 2020 for disposition of the defunct project. In early November, FERC asked Atlantic Coast Pipeline LLC (a joint venture between Dominion Energy Inc. and Duke Energy Corp.) to file a plan within 60 days on intentions for the project’s facilities and the areas for which the pipeline was set. The interstate natural gas pipeline received federal approval from FERC in 2017. In early July, Dominion and Duke officially canceled the project. The 600-mile project was planned to cross West Virginia, Virginia and North Carolina. (The News & Advance)

Chesterfield County-based CarLotz Inc., a consignment dealer of used cars, in late October announced plans to go public and expand nationwide. CarLotz, which is valued at $827 million, will combine with Miami-based Acamar Partners Acquisition Corp., a publicly traded special purpose acquisition company, to make it a public company. At closing, the company name will remain CarLotz Inc. and will be listed on Nasdaq and trade under LOTZ. The company’s headquarters will remain in Chesterfield County. (VirginiaBusiness.com)

In early November, Richmond-based Dominion Energy Inc. closed on the sale of the majority of its gas transmission and storage assets to Berkshire Hathaway Energy (a Berkshire Hathaway Inc. affiliate) for approximately $2.7 billion in cash and the transfer of approximately $5.3 billion of related indebtedness. Following the cancelation of its Atlantic Coast Pipeline joint venture in July, Dominion announced that it had entered into a definitive agreement to sell off its gas transmission and storage segment assets for $9.7 billion, including the assumption of $5.7 billion in existing debt to abandon the pipeline project. The sale is expected to be complete in early 2021. (VirginiaBusiness.com)

On Oct. 28, Jerry Falwell Jr. filed a lawsuit in Lynchburg against Liberty University, claiming his former employer made defamatory statements about him. He also alleges in the lawsuit that his former business partner, Giancarlo Granda, who had a highly publicized affair with Falwell’s wife, has conspired against Falwell with “politically motivated backers.” Falwell seeks punitive damages and attorney’s fees from Liberty University, as well as a trial by jury. (VirginiaBusiness.com)

Using its largest-ever gift — a $68 million donation last year from Frank M. Sands Sr., founder of Sands Investment Group Inc. — the University of Virginia’s Darden School of Business launched the Marjorie R. and Frank M. Sands Sr. Institute for Lifelong Learning in late October. The institute will provide degree and non-degree programs for working professionals. The Sands’ gift will also go toward developing more online courses amid the pandemic, constructing the U.Va. Inn at Darden and Conference Center for Lifelong Learning and new degree offerings. (VirginiaBusiness.com)

_______________________________________________________________________________________________________________

Southwest Virginia

Gov. Ralph Northam announced in early November that more than $3.9 million in Appalachian Regional Commission (ARC) funding will go toward recovery health programs, broadband infrastructure expansion, workforce development, natural gas line improvements and rural tourism and job growth efforts in Southwest Virginia. Recipients include Henry County, the Harvest Foundation and Southwest Virginia Gas Co.; New River/Mount Rogers Workforce Development Area Consortium Board in Radford; The Health Wagon in Wise County; the Lenowisco Planning District Commission; The Center for Rural Virginia; and the New River Valley Regional Commission. (VirginiaBusiness.com)

Ballad Health in early November announced the creation of The Appalachian Highlands Care Network, an effort designed to improve care and increase health care access for uninsured people in Ballad’s 21-county service area. The program includes all Ballad hospitals, outpatient services and physician practices, along with a regional network of community health care providers and primary care services offered through regional safety net clinics, health departments and federally qualified health centers. (SWVAToday.com)

In mid-October, Dharma Pharmaceuticals formally opened in the Bristol Mall to patients seeking medical cannabis treatment. The firm is the first medical processor to open in Virginia for registered medical cannabis patients to receive treatment. Pharmacists will meet with patients to discuss medical cannabis and determine treatment courses for specific conditions. While located in Southwest Virginia, Dharma Pharmaceuticals will be open to all eligible Virginia patients. (Bristol Herald Courier)

Bristol voters on Election Day approved Hard Rock International’s planned casino complex by the widest margin of victory of the four approved casinos across Virginia. More than 71% of Bristol voters supported plans for Hard Rock to establish a casino, hotel, entertainment and convention center at the former Bristol Mall, which ceased operations in 2017. The Bristol project is forecast to attract millions of visitors and create up to 2,000 jobs, as well as generating between $15 million and $20 million in annual tax revenues for the city, and millions more in gaming tax revenues for the city and 11 other localities in Southwest Virginia. (Bristol Herald Courier)

In mid-November, Washington County-based highway guardrail manufacturer SPIG Industry LLC announced plans to invest $7.9 million to expand its operations in the Bristol-Washington Industrial Park, creating 113 jobs. Formed in 2007 by brothers Joshua and Chris Harman, SPIG Industry has been working since 2011 to develop the SGET end terminal, a safety device located at the end of guardrails that absorbs and dissipates energy created during a head-on automobile or truck crash. SPIG Industry plans to build three production plants and a welding shop, as well as a new rail spur line to continue development work on the SGET product. (VirginiaBusiness.com)

A grant for up to $1.2 million in infrastructure improvements to the Red Onion Industrial Site in Dickenson County was approved by the Virginia Coalfield Economic Development Authority board in early November. The funds, which will be given to the Dickenson County Industrial Development Authority, will be used to help finance site grading, site development, access road construction and storm drainage improvements at the Red Onion site, which is also known as the Coalfield Regional Industrial Park. The funds will also be used for the extension of utilities, including water, sewer, electric, natural gas and broadband to the property. (VirginiaBusiness.com)

_______________________________________________________________________________________________________________

Roanoke/New River Valley

The State Corporation Commission in early November approved a request from Appalachian Power Co. to reduce a portion of customer bills designated to pay for fuel used to generate electricity. The reduction took effect Nov. 1. A drop this year in the price of natural gas — which makes up about 19% of Appalachian’s energy portfolio — is largely responsible for the company’s request to lower its rate. SCC approval of the reduction was made independently of Appalachian’s request to increase its base rate by 6.5% for residential customers, which would lead to a $10 hike in monthly bills. (The Roanoke Times)

Roanoke-based optical technology company Luna Innovations Inc. in early November acquired Owings Mills, Maryland-based fiber optic equipment manufacturer New Ridge Technologies LLC. Financial terms of the deal were not disclosed. New Ridge Technologies develops and manufactures fiber optic test and measurement equipment and advanced fiber optic subsystems for telecommunication applications. The acquisition will bring New Ridge Technologies’ products to Luna for more reliable and faster communications networks to support 5G buildout and bandwidth expansion. (VirginiaBusiness.com)

The Virginia Department of Environmental Quality in November approved a change for the proposed wind farm in Botetourt County that would allow the project to begin construction this winter. Rocky Forge Wind Farm will have 22 wind turbines standing upward of 680 feet tall and could produce enough electricity to power 21,000 homes during peak capacity. Under an earlier permit approved in April 2016, 25 wind turbines were to be constructed, standing 55 feet tall. The facility will sell the generated energy to Dominion Energy Inc., which has a contract with the commonwealth of Virginia to provide renewables. Apex Clean Energy estimates construction could be completed by late 2021. (The Fincastle Herald)

Construction began in late October on The Vue, an apartment complex slated on a plot of land adjacent to the Virginia Tech Corporate Research Center, a growing business park that includes science and technology companies. This will be one of the town’s largest apartment complexes, including three, four-story buildings. The Vue will provide up to 207 units, ranging from one to three bedrooms. SAS Builders is developing the site with Branch Construction. CMG Leasing Inc., a firm affiliated with SAS, will manage the new apartments. The Vue is slated for a mid-2022 opening. (The Roanoke Times)

CBL Properties, the owner of Valley View Mall in Roanoke, in early November filed for bankruptcy. The Chattanooga, Tennessee-based company, which owns and manages 107 properties across 26 states, will enter the Chapter 11 process, filing in Houston. The process will allow the company to implement a plan to recapitalize, including restructuring portions of its debt. The filing comes after the company entered into a restructuring agreement in August concerning its balance sheet. The process is designed to help reduce the company’s total debt and preferred obligations by around $1.5 billion. (WDBJ)

In place of traditional spring break, Virginia Tech is giving students five one-day breaks during the spring semester, during which classes will not be held. Spring semester classes will begin on Tuesday, Jan. 19, and all instruction will be delivered fully online through Friday, Jan. 22. In-person and hybrid instruction will begin on Monday, Jan. 25, and continue through the end of the semester. Courses may be held fully online, fully in person or as a hybrid, as determined by each instructor. (Virginia Tech Daily)

Subscribe to Virginia Business.

Get our daily e-newsletter.