FOR THE RECORD June 2024

CENTRAL VIRGINIA

Washington, D.C.-based real estate analytics and data company CoStar Group will receive a grant from the City of Richmond worth several million dollars because of the company’s plan to build an office tower expected to generate more than $30 million in new tax revenue. On April 22, Richmond City Council approved an ordinance to refund 75% of the company’s new real estate taxes and all of its new business property tax for the first three years after the 26-story tower is built. For the following seven years, the city will give back a smaller portion of CoStar’s taxes. (Richmond Times-Dispatch)

Richmond-based Endeavour Legacy Foundation has pledged $20 million to Hampden-Sydney College, the second largest gift in the college’s history. The college will use the gift, announced May 14, toward renovating its former science center, Gilmer Hall, into an academic facility housing the economics and business, and government and foreign affairs departments, with completion expected in 2026. (VirginiaBusiness.com)

Paymerang, a Chesterfield County-based payment and invoice automation company, has signed a definitive agreement to be acquired by Atlanta-based corporate payments processor Corpay for $475 million, according to an SEC filing and a May 8 news release. The transaction is expected to close in the second quarter of the year, subject to regulatory approval and standard closing conditions. McLean-based Aldrich Capital Partners, a growth equity firm, is parting with Paymerang, after acquiring the company in 2018 following a $26 million investment. Paymerang has 300 employees and the company will stay where it is, with no leadership changes expected, a company spokesperson told Virginia Business. (VirginiaBusiness.com)

After a closed meeting, Petersburg City Council abruptly voted on April 24 to pick Baltimore-based Cordish as the developer for a potential casino in the city, canceling a competitive bidding project. The company’s proposal, planned in conjunction with former NFL Hall of Famer Bruce Smith, is a mixed-use gambling and entertainment development that could total $1.4 billion in investments over 15 years. On May 1, Petersburg Mayor Sam Parham said he stood by the allegation that his city faced political pressure from the General Assembly to choose a particular developer or risk losing the chance to have a casino altogether. (Virginia Mercury) 

Richmond City Council approved a new financial structure to build a minor league baseball stadium at the Diamond District in a 6-0 vote on May 8. Under the new plan, Richmond will issue $170 million worth of general obligation bonds, and revenue from the stadium and the surrounding development would pay off the debt. If, however, the revenue doesn’t materialize, the city will have to cover the cost by raising taxes or cutting services. Major League Baseball and the Richmond Flying Squirrels team, who have pushed for the stadium to open by 2026, expressed support for the initiative. (Richmond Times-Dispatch)

Topsoe, a Danish electrolyzer manufacturer, is planning to build a $400 million manufacturing facility in Chesterfield County after receiving $136 million in federal tax credits to help fund construction, the company announced April 19. The plant is expected to create about 150 jobs, according to a news release from the offices of U.S. Sens. Tim Kaine and Mark Warner and U.S. Rep. Jennifer McClellan. Topsoe will manufacture solid oxide electrolyzer cell (SOEC) stacks, which help produce renewable or “green” hydrogen, in Chesterfield. A May 1 announcement from Gov. Glenn Youngkin noted that the Meadowville Technology Park facility would be Topsoe’s largest U.S. investment. (VirginiaBusiness.com)

EASTERN VIRGINIA

Mary, the tunnel boring machine that has been paving the way for the expanded Hampton Roads Bridge-Tunnel, hit a milestone April 15 when it finished the first of twin tunnels that are part of the bridge-tunnel’s expansion. Launched from the HRBT’s South Island a year ago, the $70 million custom-built tunnel boring machine has been busy — it excavated 7,900 feet, or 750,000 cubic yards of soil, while installing 1,191 concrete rings behind it, according to the Virginia Department of Transportation. Now, it’s ready to turn around and do it all over again on the return trip to carve out the expansion’s second tunnel. (VirginiaBusiness.com)

MacArthur Center mall in downtown Norfolk is expected to be replaced by a major mixed-use development, which could be called “The Anchorage,” featuring a 400-room, military-themed hotel and 518,000 square feet of high-rise residential space, Norfolk Mayor Kenny Alexander announced April 12 during his State of the City speech. The development would have a 518,000-square-foot high-rise residential tower — with possibly 400 to 600 units — offering rental and ownership options, plus 47,000 square feet of “luxury amenities” and active ground-floor leases. There would also be a 2-acre pedestrian-oriented promenade with more than 170,000 square feet of retail space. The new development would completely replace the existing mall, except for the parking garages. (VirginiaBusiness.com)

Newport News Shipbuilding delivered fast-attack submarine USS New Jersey to the Navy, officials announced April 26. The 7,800-ton submarine was built as part of a team agreement between Newport News Shipbuilding and General Dynamics Electric Boat in Connecticut. The New Jersey is the 11th Virginia-class submarine to be delivered by the Newport News shipyard to the Navy, the company said. The delivery comes as the companies face major shipbuilding delays. Blocks four and five of Virginia-class submarines, the Navy said in April, are delayed 24 to 36 months. (The Virginian-Pilot)

William & Mary hopes to be the first public university in Virginia to offer a bachelor’s degree in marine science. The school’s board of visitors in late April passed a resolution to create the new undergraduate program, citing increased demand in the field. The university still needs final approval from the state. William & Mary already has master’s and doctoral programs in marine science through its Virginia Institute of Marine Science at Gloucester Point, which also conducts research for state policymakers. The university is now working on a proposal to submit to the State Council of Higher Education for Virginia. Officials hope to launch the program in fall 2025. (WHRO)

PEOPLE

Leonard Sledge is headed back to Hampton. The city’s former economic development director, who served in the role  2013-2018, was rehired to the same position, Hampton city government announced April 11. After leaving Hampton, Sledge worked in the Atlanta area as executive director of the Henry County Development Authority in Georgia. He then returned to Virginia in 2019, accepting a position as director of Richmond’s economic development department. Prior to 2013, Sledge was director of William & Mary’s economic development office. (The Virginian-Pilot)

Virginia Beach-based Chartway Credit Union has hired Sander Casino as its chief financial officer, the credit union announced May 1. Casino was most recently senior vice president of finance for Raleigh, North Carolina-based Local Government Federal Credit Union and its affiliate, Civic Credit Union. Before joining LGFCU in 2012 and Civic in 2018, Casino worked for about a decade with RBC Bank, where he was director of treasury. He has 26 years of experience in the financial sector. (VirginiaBusiness.com)

NORTHERN VIRGINIA

Arlington County-based Accenture Federal Services entered into an agreement to acquire Falls Church-based Cognosante in mid-April, the two companies announced. Terms were not disclosed, but Cognosante’s 1,500-plus employees will join AFS’ workforce of 14,000, according to the announcement. AFS is a subsidiary of Fortune Global 500 professional services company Accenture, and Cognosante provides IT support to federal, state and local government agencies with public health missions. AFS intends to launch a new health care portfolio with the acquisition. (VirginiaBusiness.com)

The launch of a Boeing spacecraft was postponed May 6 after concerns emerged with a component on the rocket set to propel it into space. Rocket company United Launch Alliance announced the delay about two hours before it expected to blast off the Starliner vehicle stacked on top of its booster. The Cape Canaveral, Florida, launch would have marked the first crewed flight for Starliner, which was set to carry two NASA astronauts. The problem involved an oxygen valve on ULA’s Atlas V rocket. The Starliner’s launch was delayed to May 21. (The Wall Street Journal)

Google is investing $1 billion to expand its Virginia data center campuses this year and is launching a $75 million Google.org AI Opportunity Fund, one of Google’s top executives and Gov. Glenn Youngkin announced April 26 at the tech giant’s Reston office. Google has two data centers in Loudoun County and one in Prince William County that opened in 2023. The AI fund will make grants to workforce development and education organizations, and Google also is launching a certificate course, AI Essentials, to teach people to “use AI effectively in day-to-day work.” (VirginiaBusiness.com)

McLean-based satellite services provider Intelsat made a deal to be acquired by SES, a Luxembourg-based competitor, for $3.1 billion in cash, the company announced in late April. The deal is expected to close in the second half of 2025. Intelsat CEO David Wajsgras will stay on until the close of the transaction but does not plan to remain at the combined company, a spokesman said. In March, SES opened its new U.S. technology and operations hub facility in Prince William County. The two corporations previously discussed a merger, but talks fell apart in June 2023. (VirginiaBusiness.com)

Metro’s board of directors on April 25 passed a $4.8 billion capital and operations budget for fiscal year 2025, which avoids massive service cuts, although fares will increase by 12.5% beginning July 1. The Washington Metropolitan Area Transit Authority, which oversees the Metrorail and Metrobus systems, had warned of “catastrophic” cuts to service because of a $750 million shortfall forecast if Virginia, Washington, D.C., and Maryland state and regional officials didn’t increase funding. Virginia and Northern Virginia localities will chip in a total $467.3 million for Metro’s 2025 operating budget and $294.8 million for the capital budget. (VirginiaBusiness.com)

The United Arab Emirates paid a staggering $55 million for 18 acres overlooking the Potomac River in McLean, where the government plans to build three diplomatic residences and a nearly 11,500-square-foot “exercise structure.” The UAE acquired 1019, 1049 and 1079 Crest Lane in September 2022 in a single off-market transaction that was never recorded with the area’s listing service, but does appear in public records. The lots were bought from a trust tied to Richard L. Adams Jr., the internet pioneering founder of UUNet Technologies. There are no structures on the parcel other than perhaps an outbuilding. (Washington Business Journal)

ROANOKE/NEW RIVER VALLEY

Construction is progressing for a new 45,000-square-foot, $7.8 million industrial building the Amherst County Economic Development Authority is constructing within the Amelon Commerce Center. The goal is to complete the building, which will have flexible spaces to accommodate one to four light industrial businesses, this fall. The project is funded with a grant from the U.S. Department of Commerce Economic Development Administration, along with EDA matching funds, to provide operational space that will accelerate job growth and create additional economic opportunities. (Amherst New Era-Progress)

ESS Technologies, which specializes in packaging line design, equipment manufacturing and integration for the pharmaceutical, nutraceutical, cosmetic and consumer packaging goods industries, plans to invest  $1.6 million to increase capacity at a new facility in Montgomery County. A subsidiary of New York-based Pacteon Group, ESS Technologies will close operations in Pembroke and Blacksburg and consolidate them at the 40,000-square-foot new facility in the former Jeld-Wen building on Scattergood Drive in Christiansburg. The project is expected to create 27 jobs. (VirginiaBusiness.com)

A picture of a ruptured section of the Mountain Valley Pipeline circulating on social media in early May ignited fury from those who have protested the project for years. The damaged pipeline, which the photo showed being hauled down a roadway, was the end result of hydrotesting on a section of the mainline pipe on May 1 near Route 221 on Bent Mountain. The incident came as the pipeline’s developers asked the Federal Energy Regulatory Commission for an in-service date of June 1, a decision protesters continue to oppose. (Virginia Mercury)

Rocky Mount Town Council and the town economic development authority approved moving forward with the purchase of 369 Franklin St. during a joint meeting May 6. The property is currently the site of an Atlantic Union Bank branch. With the recent acquisition of American National Bank, Atlantic Union is consolidating its two locations in Rocky Mount and planned to sell the downtown building. Bank operations will move into the American National Bank location at 400 Old Franklin Turnpike in Rocky Mount. (The Roanoke Times)

The United Way of Central Virginia is launching an initiative to tackle workforce and child care issues in the greater Lynchburg area. Inspired by a successful project in Southwest Virginia, UWCV plans to establish the Childcare and Workforce Development Center. The center will provide high-quality child care along with hands-on learning experiences in various fields to prepare participants for future employment and leadership roles. UWCV plans to assemble a team to conduct surveys and create partner-ships with employers and educational institutions as well as secure a suitable facility to accommodate child care and workforce development needs. (The News & Advance)

Volvo Trucks North America in Dublin said it has begun shipping freight trucks that can burn hydrotreated vegetable oil, or HVO, with 20 to 25 gallons of the plant-based fuel in the new trucks’ tanks. The company said it expects to buy more than 1 million gallons of HVO from its supplier. The availability of internal combustion engines that run on renewable diesel coupled with the development of electric trucks now available and, someday, those with hydrogen fuel cells, will provide multiple ways for “decarbonizing transportation,” according to Volvo President Peter Voorhoeve. (The Roanoke Times)

SHENANDOAH VALLEY

Farm Credit of the Virginias, a cooperative lending institution serving Virginia, West Virginia and western Maryland, said it would return $32 million in May to its customer-owners through its annual patronage program, after the institution’s board of directors elected to return 81% of its net profits. The patronage program effectively lowers the cost of borrowing from Farm Credit of the Virginias. This year’s $32 million distribution equates to having an interest-free loan for more than three months and represents about 27% of the interest accrued on loans. (Daily News-Record)

The Front Royal-Warren County Economic Development Authority voted April 26 to approve a motion entering into a contract with Plein Smith, which has agreed to buy three undeveloped plots totaling 148 acres on Progress Drive for $6.26 million. The property sale helps the EDA pay down its multimillion-dollar debt incurred under a previous executive director, Jennifer McDonald, who was convicted of federal charges related to her unauthorized use of EDA funds to buy properties. Plein Smith had a 120-day due diligence period prior to closing on the property. (The Northern Virginia Daily)

A Shenandoah University alumnus and his wife pledged $20 million to the university, the largest individual donation in the history of the Winchester school. Wilbur and Clare Dove’s gift, announced in late April, will go toward the building of a performing and visual arts center on SU’s campus. Wilbur Dove earned his junior college degree in 1959 from what was then known as Shenandoah College and Conservatory. (VirginiaBusiness.com)

Warren County began looking for a new chief of economic development in early May. Joseph Petty, who was the county’s director of economic development and tourism at the time, confirmed he resigned effective May 17. Petty said he was leaving for a new position in the Warren County community, but would not elaborate. County Administrator Edwin Daley will serve as acting director until the position is filled. The county posted an advertisement for the position, which has a starting salary of $93,308, depending on qualifications and experience. (The Northern Virginia Daily)

A potential buyer of the 22-room Wayside Inn, which opened in 1797, proposed adding 15 recreational vehicle parking sites behind the establishment in a May 6 presentation to Middletown Town Council. The potential buyer, Blake Bullard, said he was looking at ways to diversify the business at 7783 Main St., which includes Larrick’s Tavern, the Wright House and The Red Hat speakeasy. Along with adding RV parking spots, Bullard wants to turn one room into an ice cream and crepe shop and implement longer hours. (The Winchester Star)

Forty complete applications were received for conditional permits to operate as the state’s sole licensed pharmaceutical processor of medical cannabis for a region including the Shenandoah Valley, as well as the cities of Charlottesville and Fredericksburg and the counties of Spotsylvania and Stafford, according to the Virginia Cannabis Control Authority. Applications were due April 30. Each company paid an $18,000 fee for the opportunity to be granted the sole medical marijuana license to serve the CCA’s health service area 1, which has been tied up in litigation for years. (VirginiaBusiness.com)

SOUTHERN VIRGINIA

In an 8-1 vote, Danville City Council May 7 approved changes to an agreement with Caesars Virginia that solidifies an investment nearly double what was originally planned in 2020 but dials back jobs and moves a planned stand-alone entertainment center into a multipurpose space. In 2020, the number of workers for Caesars Virginia was pegged at 1,300. The new agreement puts it in a range of 900 to 1,300. Caesars Virginia General Manager Chris Albrecht stressed the multipurpose space will still have 2,500 seats. Caesars is currently in talks to settle on the first acts that will perform in the first quarter of 2025. (Danville Register & Bee)

Construction at Commonwealth Crossing is expected to start back up this summer following Henry County supervisors’ decision to award a $24 million contract to construction firm Haymes Brothers. Located near the Virginia-North Carolina border, Commonwealth Crossing is one of several industrial parks in Henry County and is home to both Press Glass and Crown Holdings. According to the advertisement for bids, which was filed in February, work entails the construction of a 172-acre pad site along with supporting storm-water management, utility infrastructure and storm sewer. (Cardinal News)

Danville officials want to find out if there is enough demand for regional bus service. The city has sent out a request for proposals seeking bids from firms to develop a feasibility study to possibly implement commuter bus service from Danville to Lynchburg, Martinsville and Greensboro, North Carolina. If completed, the study would be attached to the city’s comprehensive plan that is being updated. The regional bus service, if found to be feasible, would start in summer or fall 2026. (Danville Register & Bee)

New College Institute Board Vice Chair Richard Hall was appointed in April 24 by the institute’s board of directors’ executive committee to be sole authority in mediation between NCI and its foundation. The committee met in closed session to discuss the mediation between NCI and the Martinsville Henry County Academic Foundation, formerly New College Foundation. In June, the NCI board committed $250,000 to support legal action against its foundation, which announced the intention to fund entities in Martinsville and Henry County outside of NCI, for which its money had been raised. (Martinsville Bulletin)

Across the Dan River from Danville’s River District, a largely revitalized part of the city, is North Danville, a business district with a rich history that lost investments and attention after the tobacco and textile industries left town. Leaders with the River District Association, which coordinates efforts to revitalize downtown Danville, plan to ask residents and property owners what they’d like to see in the district directly, instead of hiring a consultant. The RDA has been hosting community meetings to initiate conversations about this effort since February. (Cardinal News)

The West Piedmont Planning District Commission released in April its Comprehensive Housing Study for a region including the cities of Martinsville and Danville, as well as the counties of Henry, Patrick, Pittsylvania and Franklin. The study is intended in part to provide information to assist economic developers, local governments and housing developers in developing new housing options to meet the needs of the region and offer strategies to facilitate regional collaboration and coordination to address current housing challenges. The study revealed challenges related to affordable starter homes, aging in place and financial obstacles. The most significant finding was a shortage of workforce housing for low-wage workers and single-earner households. (Martinsville Bulletin)

SOUTHWEST VIRGINIA

Emory & Henry College is one of several higher education institutions selected to move forward with community lab school plans, according to an April 25 announcement from Gov. Glenn Youngkin. The college’s proposal is the Southwest Virginia Healthcare Excellence Academy Lab School, which will provide high school science- and health care-related curriculum and work-based learning experiences. The lab school, a collaboration between Emory & Henry and multiple regional partners, will be a career academy for students in grades 10 through 12 to create a pipeline for future health care professionals in Southwest Virginia. (Bristol Herald Courier)

Construction of the $25.5 million Regional Workforce and Child Development Hub —led by the nonprofit EO, formerly the program arm of the United Way of Southwest Virginia — in Abingdon is on schedule and about 85% complete, EO President and CEO Travis Staton said during a May 2 hard hat tour. Construction began July 2023 and is expected to be completed in July, with the center opening in August. The 87,000-square-foot facility, a former Kmart store, will house an early childhood development center operated by Ballad Health, STEM labs for teacher training and a shared services alliance for early child care and education providers. (Cardinal News)

Abingdon-based Food City and the Appalachian College of Pharmacy in Oakwood have teamed up to establish an online pharmacy technician program, aiming to ease the pharmacy tech shortage in the region, the organizations announced May 1 at the Southwest Virginia Higher Education Center. The online program will be offered twice a year, and students will be able to finish it within 26 weeks, including six weeks of experiential rotations. Students will then be eligible to take the Pharmacy Technician Certification Board exam. Food City is contributing to the initial costs and startup of the program, although the amount of funding was not provided, and will provide clinical experience rotations at its locations in five states. (Bristol Herald Courier)

Mike Quillen, the founder and former CEO and chairman of coal producer Alpha Natural Resources, has donated $1 million to the University of Virginia’s College at Wise. The college will name the David J. Prior Convocation Center’s court Quillen Court in recognition of the gift, according to its April 26 announcement. Quillen, who grew up in Gate City, previously served on U.Va. Wise’s board and is a member and former chairman of the GO Virginia Region 1 Council. (News release)

Teresa Tyson, president and CEO of The Health Wagon, a nonprofit free clinic serving one of the poorest and medically underserved areas in the state, earned $520,000 in 2022, a pay package that nearly doubled over the last two years and was 12 times that of the average income of the people the clinic serves. The 2022 compensation package number, found in the most recent tax documents available, includes base compensation and benefits from The Health Wagon and compensation from a closely affiliated nonprofit where Tyson also acts as president and CEO. Tyson’s 2022 compensation was a 53% increase from her 2021 compensation of nearly $340,000. (Cardinal News)

The Virginia Coalfield Economic Development Authority is granting Mountain Empire Community College up to nearly $186,100 for a new fiber optic installation program and a new heavy equipment operator II program, VCEDA announced May 1. MECC will use the funds for workforce development and training costs as well as equipment, supplies and tuition expenses for the two programs. Students who complete the fiber optic installation program will earn a nationally recognized network cable installer certification, and graduates of the heavy equipment operator II program will earn multiple credentials. (The Coalfield Progress)