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Virginia Business// October 28, 2022//
Richmond Community Hospital — owned by Bon Secours Mercy Health — has the highest profit margins of any hospital in Virginia, generating as much as $100 million a year. The secret to its success lies with a federal program that allows clinics in impoverished neighborhoods to buy prescription drugs at steep discounts, charge insurers full price and pocket the difference. The program was created with the intention that hospitals would reinvest into their facilities, improving care for poor patients, but Bon Secours has slashed services at Community while investing in the city’s wealthier, white neighborhoods, more than 20 former executives, doctors and nurses say. In a statement, Bon Secours said it has invested $9.8 million in capital improvements at Community since 2018, and $21 million is going toward a new behavioral health program, an MRI suite and upgraded mammography services. (The New York Times; NBC 12)
New car sales were expected to rise in the third quarter of 2022, but a deteriorating market for used vehicles — which sent CarMax Inc. shares tumbling in late September — suggests trouble ahead for automakers. The resale market often indicates where new car demand is headed, and Goochland County-based CarMax said its vehicle sales dropped in the three months ending Aug. 31. Both consumers and wholesalers pulled back, the company said. According to CarMax, inflation is making cars less affordable, rising interest rates make them tougher to finance, and consumer confidence is ebbing. (Bloomberg)
A portion of a meadow facing Rivanna River in Charlottesville could become home to 245 apartments. A local firm, Seven Development LLC, gave its first public presentation of the project in October with city planners over Zoom. According to a Charlottesville-based water engineer, the land is part of a flood plain, but the developers say they would build a 15- to 18-foot wall, backfill and then construct an asphalt parking lot and three four-story buildings on the newly elevated land. The Federal Emergency Management Agency (FEMA) approved the project on the grounds that it would not increase the height of Rivanna floodwaters by more than a foot, and the city’s comprehensive plan calls for general residential zoning in the area. (The Daily Progress)
McLean philanthropists Joanne and William E. Conway gave $13 million to Virginia Commonwealth University’s School of Nursing, the university announced in late September. The gift is the largest in the school’s history and will provide more than 1,000 undergraduate and doctoral students with scholarships over the next five years. The couple also committed $14 million earlier in September to the University of Virginia’s School of Nursing, also providing scholarship assistance. Bill Conway is co-founder, interim CEO and non-executive co-chairman of The Carlyle Group, the Washington, D.C., private equity firm. (VirginiaBusiness.com)
Moe Mathews, a Goochland County real estate developer and investor, was sentenced in October to 41 months in prison for defrauding the Small Business Administration and associated financial institutions out of more than $1.1 million in COVID-19 relief funds during the first year of the pandemic. In May, he pleaded guilty to conspiracy to commit wire fraud and bank fraud. The punishment was at the low end of discretionary federal sentencing guidelines, which could have reached 51 months. Mathews will also have to make restitution in the amount of $1.6 million to the SBA and eight financial institutions.
(Richmond Times-Dispatch)
Shoppers headed to Short Pump Town Center might be allowed to breeze through concourses with alcoholic drinks in hand by spring 2023. Brookfield Properties, the mall’s co-owner, applied to the Virginia Alcoholic Beverage Control Authority for a Commercial Lifestyle Center license allowing customers to take drinks out of mall restaurants. Tenants can decide whether they want to allow drinks inside of their businesses. (Richmond Times-Dispatch)
Asian buyout firm Baring Private Equity Asia Ltd. is in talks to acquire Ashburn-based DXC Technology Co. after Baring approached DXC, a Fortune 500 information technology services firm, about a potential takeover. DXC has been working with advisers after receiving interest from the private equity firm in late September and has said only that it was “approached by a financial sponsor regarding a potential acquisition of the company.” DXC added that no formal proposal has been received and there were no promises that one would be made or determined adequate by the company’s board of directors. “Consistent with its fiduciary responsibility to maximize shareholder value, the company is engaged in preliminary discussions and is sharing information,” DXC said. (Bloomberg; VirginiaBusiness.com)
RapidFlight LLC will invest $5.5 million to establish operations in Manassas, creating 119 jobs over the next three years, Gov. Glenn Youngkin announced Sept. 23. RapidFlight is an integrated, end-to-end provider of airborne drones. Founded in 2021, the company works for national security and private sector clients. It will establish a 25,000-square-foot facility, renovating the former Georator Corp. building. RapidFlight is hiring engineers, manufacturing technicians, program managers, administrative staff and others. (VirginiaBusiness.com)
Raytheon Technologies Corp.’s missile and defense division received the go-ahead from the Air Force to move beyond the prototype phase and continue development of a new hypersonic cruise missile weapon under a $985 million contract announced by the Pentagon Sept. 22. The Hypersonic Attack Cruise Missile is an air-launched, maneuverable weapon propelled by a scramjet engine that allows it to travel up to five times the speed of sound. Raytheon will design, develop and ready the missile for integration with fighter aircraft. Work is expected to be complete by March 2027. (VirginiaBusiness.com)
The opening of the new Potomac Yard Metro station is being pushed back into next year, the Washington Metropolitan Area Transit Authority said Sept. 30. Metro blamed its contractor, Potomac Yard Constructors, for “failure to meet the project delivery schedule,” the transit system said. The Potomac Yard station is located between the existing Braddock Road and Reagan National Airport stations on Metro’s Yellow and Blue lines. In July 2021, the new station’s opening was pushed back by five months, from April 2022 to September 2022. Metro said it will provide an update on the project and its new delivery timeline by the end of this year. (Washington Business Journal)
PEOPLE
Karen Dahut is the new CEO of Google Public Sector, a Google LLC subsidiary focused on government and educational contracting work. Dahut started Oct. 31 and takes the place of Will Grannis, Google Public Sector’s founding CEO, who is returning to his role as chief technology officer of Google Cloud. Dahut previously served as a sector president at Booz Allen Hamilton, where she led the company’s $4 billion global defense business. Google Public Sector was formed in June and is focused on bringing Google Cloud technologies, including artificial intelligence and machine learning tools, to federal, state and local government customers and educational institutions. (VirginiaBusiness.com)
A month after ManTech’s stockholders approved the Herndon-based tech contractor’s $4.2 billion sale to Washington, D.C.-based private equity firm The Carlyle Group, ManTech announced Oct. 3 that Kevin Phillips will retire as CEO and president and transition to chairman of the board of directors. Chief Operating Officer Matt Tait has been promoted to CEO. ManTech also announced a new board, which includes four Carlyle executives, and Tait, who joined ManTech in 2018. Before joining ManTech, Tait spent 20 years with Accenture and a decade in the Navy. Phillips became chair of ManTech’s board in 2020 and served as president and CEO since 2018. (VirginiaBusiness.com)
Monthly bills for an average residential customer of Appalachian Power Co. will likely be about $30 higher by year’s end. Appalachian informed the State Corporation Commission in late September it will increase its base rate by 6.7% — or $8.55 per month for a home account that consumes 1,000 kilowatt-hours of electricity — effective Oct. 1. That will be followed by a second hike starting Nov. 1, which will add about $20 more to the monthly bill to cover the rising costs of fuel the utility burns to provide power to 500,000-plus customers in Western Virginia. A series of other rate adjustments has cost consumers an additional $18 per month. (The Roanoke Times)
Reston-based Bowman Consulting Group Ltd. founder and CEO Gary Bowman committed
$5 million to Virginia Tech’s College of Engineering for the expansion of sustainable land development learning initiatives, the university announced Oct. 3. The donation will establish the Bowman Sustainable Land Development Program, serving both undergraduate and graduate students. The sustainable land development master’s program, currently in its second year, will fall under the program, as will the Land Development Design Initiative (LDDI), which will be renamed. (VirginiaBusiness.com)
Osseo, Wisconsin-based North American Specialty Laminations LLC, a company that provides lamination solutions to the building products industry, will invest $2 million to open a mid-Atlantic production facility in Roanoke County, creating 44 jobs, Gov. Glenn Youngkin announced Sept. 20. NASL’s 57,000-square-foot plant will serve NASL customers along the East Coast and Southeast. A portfolio company of Boston-based private equity investment firm Building Industry Partners, it has facilities around the country and in Canada. The Roanoke facility will be a hub for profile lamination and fabrication capabilities for door, window, cabinet, wall panel, fencing and moulding customers. (VirginiaBusiness.com)
Enrollment at Radford University dropped again this fall, similar to other colleges in Virginia and nationwide amid declining student population trends, according to preliminary data. A total of 7,199 degree-seeking students were enrolled at Radford University this fall as of Sept. 5, down from 7,714 students last year, according to a college news release. That’s a 6.7% year-over-year decline in enrollment, and a more than 21% decrease from fall 2019, when Radford University had 9,190 degree-seeking students. (The Roanoke Times)
PEOPLE
Megan Baker will take over as Roanoke County’s new economic development director on Oct. 24.
She succeeds Jill Loope, who will assist with Baker’s transition, then head up tourism for Roanoke County’s Parks, Recreation and Tourism department until she retires in July 2023. Baker comes to Roanoke from Peachtree City, Georgia, where she has been president of the Fayette County Development Authority. There, she led business attraction and retention programs for Fayette County and spearheaded development of a 600-acre business park. (VirginiaBusiness.com)
Research!America, a national organization that builds awareness and support for health research, will award its Gordon and Llura Gund Leadership Award to Michael Friedlander, the founding executive director of the Fralin Biomedical Research Institute at VTC, and Heywood Fralin, a health care executive who has helped build the biotechnology industry in Virginia. The award recognizes individuals who have increased the level of advocacy for medical and health research. President Joe Biden and former New York City mayor Michael Bloomberg are among the past honorees. The awards will be given in March 2023. The recognition is meaningful for a region that has not been known for biomedical research and technology, according to Friedlander and Fralin. (Virginia Tech news release)
California Burrito, a Latin nightclub in downtown Norfolk, has become the fourth nightlife establishment shuttered by the city since early September. The Norfolk City Council voted to revoke California Burrito’s conditional use permit Oct. 10 for repeated overcrowding violations. California Burrito’s downfall was the nightclub called “The Back” it operated in the rear of the building. The city began ramping up its enforcement of nightclubs for code violations in August following several late-night shootings, including a quadruple shooting outside Legacy Restaurant and Lounge on Aug. 5 and a triple homicide outside Chicho’s Backstage in March. Since then, city officials closed Culture Restaurant & Lounge for violations of its restaurant zoning certificate. The council closed Legacy on Sept. 13 for violating security protocols and Scotty Quixx’s on Sept. 27 for a meals tax violation.(The Virginian-Pilot)
Hampton Roads’ economy is expected to grow, Robert McNab, economics professor and director of Old Dominion University’s Dragas Center for Economic Analysis and Policy, told attendees of ODU’s annual State of the Region address. The Oct. 4. presentation showed that growth in the region’s inflation-adjusted gross domestic product is expected to be 2% this year, down from 3% last year but better than the contraction of 3.9% in 2020. McNab highlighted how Hampton Roads’ civilian labor force is still more than 45,000 workers smaller than it was before the pandemic relative to other large metro regions in Virginia. (Inside Business)
Virginia plans to increase the use of freight rail to transport goods by partnering with the Port of Virginia, according to the draft 2022 Statewide Rail Plan published Sept. 28. Using freight services to transport goods is expected to help relieve traffic congestion, reduce carbon emissions and yield an annual $2.1 billion in benefits. Port spokesman Joseph Harris said the plan is critical due to its growth and expansion of the central rail yard at Norfolk International Terminals that is expected to process 1.1 million rail lifts per year. He said the port’s rail volume is up by 4% or about 446,000 containers, versus 428,000 containers moved by rail during the pandemic. (Virginia Mercury)
The USS Gerald R. Ford departed Naval Station Norfolk Oct. 4, embarking on its first deployment a day later than expected due to stormy weather. The Navy’s newest aircraft carrier, touted as its most technologically advanced, was years late and 27% over budget. The Gerald R. Ford Carrier Strike Group deployment is made up of about 9,000 personnel. The USS John F. Kennedy, built by Huntington Ingalls Industries’ Newport News Shipbuilding division, is expected to join the Ford’s class in 2024. (The Virginian-Pilot; VirginiaBusiness.com)
More than 18 months after being awarded a grant for nearly $1.7 million, Virginia Peninsula Community College is nearly ready to unveil its second trade center in January. The new location is in Toano in upper James City County. The site is owned by David Johnson Builders, which is handling the renovations, and offers 7,800 square feet of training space. Four programs will be offered: welding, CNC machining, carpentry and masonry. (Williamsburg Yorktown Daily)
PEOPLE
After a C-suite shakeup, Chesapeake-based Fortune 500 discount retailer Dollar Tree Inc. named Michael Creedon Jr. as its new chief operating officer in late September. Creedon had been with Advance Auto Parts since December 2013, serving as president of its U.S. stores in recent years. On Sept. 28, Dollar Tree also named Pedro Voyer its new chief development officer. Voyer previously served as the international general manager for Panera and chief operating officer of Caribou Coffee and Einstein’s Bagels, brands owned by JAB Holding Co. (VirginiaBusiness.com)
Asian buyout firm Baring Private Equity Asia Ltd. is in talks to acquire Ashburn-based DXC Technology Co. after Baring approached DXC, a Fortune 500 information technology services firm, about a potential takeover. DXC has been working with advisers after receiving interest from the private equity firm in late September and has said only that it was “approached by a financial sponsor regarding a potential acquisition of the company.” DXC added that no formal proposal has been received and there were no promises that one would be made or determined adequate by the company’s board of directors. “Consistent with its fiduciary responsibility to maximize shareholder value, the company is engaged in preliminary discussions and is sharing information,” DXC said. (Bloomberg; VirginiaBusiness.com)
RapidFlight LLC will invest $5.5 million to establish operations in Manassas, creating 119 jobs over the next three years, Gov. Glenn Youngkin announced Sept. 23. RapidFlight is an integrated, end-to-end provider of airborne drones. Founded in 2021, the company works for national security and private sector clients. It will establish a 25,000-square-foot facility, renovating the former Georator Corp. building. RapidFlight is hiring engineers, manufacturing technicians, program managers, administrative staff and others. (VirginiaBusiness.com)
Raytheon Technologies Corp.’s missile and defense division received the go-ahead from the Air Force to move beyond the prototype phase and continue development of a new hypersonic cruise missile weapon under a $985 million contract announced by the Pentagon Sept. 22. The Hypersonic Attack Cruise Missile is an air-launched, maneuverable weapon propelled by a scramjet engine that allows it to travel up to five times the speed of sound. Raytheon will design, develop and ready the missile for integration with fighter aircraft. Work is expected to be complete by March 2027. (VirginiaBusiness.com)
The opening of the new Potomac Yard Metro station is being pushed back into next year, the Washington Metropolitan Area Transit Authority said Sept. 30. Metro blamed its contractor, Potomac Yard Constructors, for “failure to meet the project delivery schedule,” the transit system said. The Potomac Yard station is located between the existing Braddock Road and Reagan National Airport stations on Metro’s Yellow and Blue lines. In July 2021, the new station’s opening was pushed back by five months, from April 2022 to September 2022. Metro said it will provide an update on the project and its new delivery timeline by the end of this year. (Washington Business Journal)
PEOPLE
Karen Dahut is the new CEO of Google Public Sector, a Google LLC subsidiary focused on government and educational contracting work. Dahut started Oct. 31 and takes the place of Will Grannis, Google Public Sector’s founding CEO, who is returning to his role as chief technology officer of Google Cloud. Dahut previously served as a sector president at Booz Allen Hamilton, where she led the company’s $4 billion global defense business. Google Public Sector was formed in June and is focused on bringing Google Cloud technologies, including artificial intelligence and machine learning tools, to federal, state and local government customers and educational institutions. (VirginiaBusiness.com)
A month after ManTech’s stockholders approved the Herndon-based tech contractor’s $4.2 billion sale to Washington, D.C.-based private equity firm The Carlyle Group, ManTech announced Oct. 3 that Kevin Phillips will retire as CEO and president and transition to chairman of the board of directors. Chief Operating Officer Matt Tait has been promoted to CEO. ManTech also announced a new board, which includes four Carlyle executives, and Tait, who joined ManTech in 2018. Before joining ManTech, Tait spent 20 years with Accenture and a decade in the Navy. Phillips became chair of ManTech’s board in 2020 and served as president and CEO since 2018. (VirginiaBusiness.com)
Averett University will enter the metaverse later this academic year. A digital twin (a virtual version of a real-world, physical space) of the university’s campus will allow parents to feel more connected to their students and offer new opportunities in the classroom by giving users the ability to explore Averett’s campus without actually being there. Averett has partnered with California-based Dalrada Financial Corp. to create a metaverse for the campus. The partnership, announced Sept. 16,
will also focus on physical changes to Averett’s campus such as new HVAC systems, prioritizing sustainability and energy efficiency. (Cardinal News)
Hitachi Energy Ltd. will invest $37 million to expand its operation in Halifax County, creating 165 jobs,
Gov. Glenn Youngkin announced Oct. 12. The technology company will add 26,000 square feet to its existing facility in the county to make space for a new production line of large transformers to support the utility and renewable energy markets. The facility currently produces both distribution transformers and power transformers. Following the expansion, Hitachi will be able to produce larger power transformers that operate at higher voltages. (VirginiaBusiness.com)
Charlotte, North Carolina-based IperionX Ltd., a minerals company that produces titanium metal powder for use in manufacturing, announced plans to establish Virginia’s first titanium demonstration facility in Halifax County, an investment of
$82.1 million expected to create 108 jobs,
Gov. Glenn Youngkin announced Sept. 27. The
three-year project will be in two phases: The first is a $12.5 million investment in construction and production-related machinery and tools, and the second is a $69.6 million expansion. The facility will also mark the nation’s first titanium powder producer using 100% recycled scrap metal.
(VirginiaBusiness.com)
Population trends over the past half-century show a significant decline in population in Martinsville and Henry County. Data from the Census Bureau as compiled by USAfacts.org show a lesser decline in the city of Danville and Pittsylvania County, while Franklin and Patrick counties have seen growth. In 1972, there were 53,094 people residing in Henry County and while the population in the United States grew by 58.6% from then until 2021, Henry County’s population shrank by 5.4%. Despite the overall decline, the data shows that Henry County’s population increased 20 out of the 49 years, with the largest annual population increase occurring between 1986 and 1987. (Martinsville Bulletin)
The Navy on Oct. 5 launched an additive manufacturing “center of excellence” to train students in defense manufacturing at Danville’s Institute for Advanced Learning and Research, as well as announcing a larger training facility to be built nearby. The center of excellence is part of the 16-week Accelerated Training in Defense Manufacturing program that started as a multiyear pilot in 2021 in Danville, a partnership among the Department of Defense, IALR, Danville Community College, The Spectrum Group and Phillips Corp. that has trained three cohorts of students so far. Also announced Oct. 5 was the Navy’s plan to build a 100,000-square-foot regional ATDM training facility on the campus. (VirginiaBusiness.com)
PEOPLE
The Institute for Advancing Learning and Research in Danville has named Todd M. Yeatts as executive vice president of manufacturing advancement. Yeatts joins IALR from The Boeing Co., where he was senior manager for government operations. At IALR, he will oversee the manufacturing advancement training program, and operations and strategic direction of the new Center for Manufacturing Advancement, expected to open this year. He will report directly to IALR President Telly Tucker. At Boeing, Yeatts conducted program advocacy and awareness campaigns, managed congressional site visits, provided legislative testimony and served as the primary contact for government officials. (VirginiaBusiness.com)
Emory & Henry College announced the start of its Collective Connections Campaign during the college’s homecoming activities in the first weekend of October. The fundraising campaign’s goal is to raise $25 million that will go toward establishing additional scholarships, creating new housing and supporting the development of a planned multi-sports complex, which would house athletic programs including men’s and women’s rugby, lacrosse and the E&H equestrian team. As of Oct. 3, the college had raised $5 million. The campaign comes after the college welcomed a record 1,400 undergraduate students this semester. (Bristol Herald Courier)
The Virginia Department of Energy, the Southwest Virginia Energy Research and Development Authority and InvestSWVA will launch the Energy DELTA Lab project, an initiative to turn some of the 100,000 acres of former coal mining sites in Southwest Virginia into laboratories to promote energy innovation, Gov. Glenn Youngkin announced Oct. 4. The first site will be near the town of Pound and will be a lab for advanced solar and energy storage. It will likely take at least two years to be up and running. A $975,000 grant from the federal Abandoned Mine Land Economic Revitalization Program provided development funding. (Cardinal News)
The restoration of five trestles on the Mendota Trail that added 2.5 miles to the 12.5-mile foot and bicycle path is complete. The new portion of the trail stretches between Bristol and Mendota. A grand opening and ribbon cutting were held Oct. 14 at the trailhead. State Sen. Todd Pillion and Dels. Terry Kilgore, Israel O’Quinn and Will Wampler spearheaded a $466,500 state appropriation for the project. Johnson City, Tennessee-based engineering firm Tysinger, Hampton & Partners Inc. designed the project. The Mendota Trail Conservancy Inc. contracted with Abingdon-based Inland Construction Inc. for construction services. (Bristol Now)
The University of Virginia’s College at Wise dropped its $25 application fee as part of a larger streamlining of the school’s admissions process to make it easier to apply, the college announced in early October. UVA Wise also eliminated enrollment deposits. Students who have or will complete the required high school coursework no longer need a combination of test scores, class rankings and grade point average to be admitted, as the college now requires only a single qualifier. UVA Wise also now promises to make an acceptance decision within 48 hours of receiving an application and high school transcript. (Cardinal News)
The Wise County Industrial Development Authority received a $232,500 grant from the Virginia Coalfield Economic Development Authority Education and Telehealth Access Fund to fund broadband internet service through satellite internet provider Starlink to unserved or underserved households with school children in Wise County, VCEDA announced in late September. The Wise County IDA will use the funds for the cost and expense of hardware and wiring and for two-year subscriptions for 94 residences in Wise County, providing 438 students with Starlink internet service. (Bristol Herald Courier)
PEOPLE
Formerly a television news anchor for WCYB NBC 5 Bristol, Olivia Bailey became marketing director for Friends of Southwest Virginia on Sept. 7. The Abingdon nonprofit works on promoting cultural heritage, natural resources, downtown economic development and the arts across 19 counties, four cities and 53 towns, partnering with groups like Heart of the Appalachia Tourism Authority, Blue Ridge Travel Association and the LENOWISCO Planning District Commission. A Smyth County native and graduate of Emory & Henry College, Bailey wants to work with other localities to amplify their tourism and destination marketing efforts. (Bristol Now)
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