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Rising in the Southwest

Through decades of owning her own beauty salon and later a gift shop in downtown Abingdon, Cathy Lowe developed an interest in economic development.

In 2006, she decided to run for town council and won — ultimately serving for 12 years, including six as vice mayor and two as mayor.

Throughout her career, Lowe, who sold her shops around 2009 and now leads the Virginia Highlands Small Business Incubator, has kept a close watch on the goings-on in Richmond. Like many in her region, she sometimes feels that Southwest Virginia gets ignored by lawmakers in the state’s capital. 

“Those of us that live here used to joke that we need to educate folks that Virginia doesn’t end at Roanoke,” Lowe says.

“Sometimes, I’ve even said the state seems to stop at Charlottesville,” agrees new House Majority Leader Terry Kilgore, R-Gate City, who has represented the state’s southernmost corner in the House of Delegates since 1994.

Case in point: Last year, a panel of retired judges selected eight citizens to join eight Democratic and Republican legislators to make up the Virginia Redistricting Commission, which was charged with the chore of drawing new state and congressional maps.

After the representative from Bristol resigned, commission members were tasked with choosing his replacement. They elected to pick between two candidates: one from Rockingham County and another from Bedford County — each hours away from far Southwest Virginia. 

 “I do think these two people are as close as we kind of get to Southwest, which is important,” state Sen. Stephen Newman, R-Lynchburg, said at the time, according to WVTF/Radio IQ. “Those people in Southwest deserve a kind of a vote.”

At any rate, the commission promptly combusted; its members called it quits in October 2021 after failing to agree on new boundaries. The process then went to the Virginia Supreme Court, where justices appointed two special masters to draw new legislative maps, which were approved by the court in December 2021. 

The state’s November 2021 GOP sweep led to increased legislative clout for Southwest Virginia. Del. Israel O’Quinn, R-Bristol, (L) was appointed deputy majority whip by the new majority leader, Del. Terry Kilgore, R-Gate City. Photo by Caroline Martin
The state’s November 2021 GOP sweep led to increased legislative clout for Southwest Virginia. Del. Israel O’Quinn, R-Bristol, (L) was appointed deputy majority leader by the new majority leader, Del. Terry Kilgore, R-Gate City. Photo by Caroline Martin

The maps are based on 2020 U.S. Census data that showed Southwest Virginia suffered the largest population decline in the state — a loss of more than 8%.

Due to its shrinking population, the region lost a House of Delegates seat during redistricting. Moving forward, it will be represented by four delegates instead of five.

The new maps place Del. Will Wampler, R-Abingdon, who was first elected to the General Assembly in 2019, in the same district as Del. Israel O’Quinn, R-Bristol, who has served in the General Assembly since 2011 and was recently appointed deputy majority leader. (Wampler did not respond to a request for comment for this story.)

Lowe had expected Southwest Virginia would lose a delegate in redistricting, but she’s still unhappy that scenario came to fruition. 

“If you look at the map of  [Southwest Virginia], it’s a large landmass,” she says. “That puts a lot of geography in the hands of only [a few] people. That’s a huge amount of work.”

Richmond heavyweight? 

Even as Southwest Virginia is losing a delegate in redistricting, some pundits argue the region is poised to enjoy increased influence in the capital as a reward for being reliably red now that Republicans have regained control of state government, except for a narrow minority Democrats still hold in the state Senate.

Virginia’s Democratic base turned out in November 2021, but it couldn’t compete with the GOP turnout for Gov. Glenn Youngkin.

“They were bigger,” says Mark Rozell, dean of George Mason University’s Schar School of Policy and Government, “and a very big part of that came from the rural areas of the state, which surprised many analysts because for years people have been pointing to the shifting of political power to Northern Virginia.”

In Lee County, Youngkin took home a whopping 87.6% of the vote — an example of how well the first-time politician performed all across Southwest Virginia.

“Youngkin was at over 80% of the vote in a lot of those towns,” points out J. Miles Coleman, spokesman for the University of Virginia’s Center for Politics.

In the 2021 election, Russell County saw the state’s largest increase — 40.9% — in voter turnout since the 2017 election, according to the Virginia Public Access Project.

“The governor has a kind of debt of obligation to those constituencies that put him where he is,” Rozell says. “And anybody can look at the data and see the phenomenal — unprecedented, really — turnout in rural Virginia for Youngkin.”

Lowe maintains the new governor, who had never previously served in elected office, has already began paying back that political debt. “I don’t think it’s gone unnoticed,” she says.

Youngkin tapped Amanda Pillion, an Abingdon town council member and wife of state Sen. Todd Pillion, R-Washington County, as one of 12 members of his transition team. He also selected several Southwest Virginians to serve “on landing teams” to prepare Youngkin for his first days in office.

Speaking at the annual Rural Caucus Reception in February, about two weeks into his term, Youngkin acknowledged, “I’ve made two trips to Southwest Virginia [as governor]. Why? Because it’s important for rural Virginia to know that their governor is delivering on what government needs to do — to help.”

The movers and shakers of Southwest Virginia are often quick to mention Youngkin’s business acumen. He retired in 2020 as co-CEO of Washington, D.C.-based private equity firm The Carlyle Group with an estimated personal worth of about $250 million. The governor’s Democratic critics, however, have questioned Youngkin’s commitment to workforce development and aiding the poor, noting news reports that under Youngkin’s leadership, Carlyle offshored at least 1,300 American jobs and raised rent for seniors at a large mobile home park Carlyle owned in California.

“He’s somebody who understands business,” Kilgore says. “And I think that, really, he can help us a lot in Southwest Virginia, whether that’s with new jobs or data centers locating [here or] … new energy infrastructure like solar or modular nuclear opportunities in the future.”

Youngkin’s positivity toward the Southwest sets a tone for state government, says Will Payne, managing partner of Coalfield Strategies LLC, an economic development consulting firm, and director of InvestSWVA, a public-private business attraction and marketing campaign for the region. “I already feel just this change … in the way that we are perceived and a willingness to listen.”

In late February, Payne met with Caren Merrick, Virginia’s secretary of commerce and trade. He brought her two types of beer made with barley grown in Southwest Virginia and produced through Appalachian Grains, a specialty grain broker that connects local growers with breweries and distilleries across the state. 

“I can hardly wait to chill it and try it,” says Merrick, who selected Southwest Virginia as the first region she’ll visit as secretary for a listening tour this spring. “We’ll be doing roundtables and listening to business leaders.”

Even one of Southwest Virginia’s prominent Democrats seems open to seeing whether Youngkin can deliver for the region. A community activist from Big Stone Gap, Taysha DeVaughan hopes to be tapped as the Democratic challenger for U.S. Rep. Morgan Griffith’s seat in November.

DeVaughan says she was disappointed by Youngkin’s executive order to stop school masking mandates, noting that fewer people in her area are fully vaccinated against COVID-19. “In Southwest Virginia, we deal with people who have a lot of different illnesses, especially respiratory illnesses and black lung.”

That said, she approves of the governor’s quest to cut grocery taxes. “Especially in a time of COVID, where people aren’t employed like they used to be … just being able to pay for groceries is a big deal,” she says.

Influential lawmakers

After Republicans took back control of the Virginia House of Delegates, the Virginia GOP caucus tapped Kilgore as majority leader and he appointed O’Quinn as deputy majority leader.

“That’s not symbolic leadership,” Kilgore says. “We’re in meetings with the governor every other day or two, and we’re in the room when legislation is happening.”

Southwest legislators also won committee leadership roles. Del. Will Morefield, R-Tazewell, now serves as vice chair of the Counties, Cities and Towns Committee, while Kilgore is vice chair of the Commerce and Energy Committee, and O’Quinn is vice chair of the Privileges and Elections Committee.

In more purple areas of Virginia, delegate seats are more prone to turn over, Coleman points out, depending on the mood of the electorate. With Southwest Virginia being reliably red, lawmakers have an easier time building seniority. “They’re fairly comfortable in their districts,” Coleman says.

Mount Rogers Regional Partnership Executive Director Josh Lewis is focused on challenges such as how to attract young professionals to the region. Photo by Earl Neikirk

Economic challenges

In 1990, Virginia had 10,265 people working in the coal industry. By 2021, that number had dropped to 1,891. Naturally, coal’s decline has greatly impacted the area of Southwest Virginia known as the Coalfields, which encompasses Buchanan, Dickenson and Wise counties and portions of Lee, Russell, Scott and Tazewell counties.

Lack of employment opportunities led to the region’s dramatic population drop.

“What you see is a tremendous amount of out migration, particularly young adults,
because they don’t see job prospects in the area,” says Hamilton Lombard, a demographer for the Weldon Cooper Center for Public Service at the University of Virginia.

Even before the pandemic, Southwest Virginia struggled with its labor force participation. About 31% of adults, or more than 100,000 people, in Southwest Virginia weren’t working in 2019, according to the Virginia Tech Center for Economic and Community Engagement (CECE). Approximately 10% of all adults not working in Virginia that year lived in the region.

“So, the challenge is, honestly, you have a lot of discouraged workers,” says Sarah Lyon-Hill, associate director for research development at the CECE. “You have a significant portion probably who are already kind of dependent on prescription medication, [who] probably [have even] kind of fallen into greater depressions and are even more dependent, which again prohibits them from working.”

And with many of the region’s young people fleeing to cities to find better paying jobs, she says, the region’s workforce also skews older, adding to the lower labor participation.

There does appear to be some economic recovery, marked by last year’s announcement that Blue Star NBR LLC would be investing $714 million to build a nitrile rubber and medical glove manufacturing facility in Wythe County, a project expected to create nearly 2,500 jobs over five years.

But even with that major victory, Lombard isn’t optimistic about the region’s ability to grow its population again, calling the situation “fairly grim.”

Recently, the Mount Rogers Regional Partnership (the economic development nonprofit formerly known as Virginia’s Industrial Advancement Alliance) has decided to pivot, making its chief focus talent development as a way of retaining more natives and to woo more outsiders to the area.

“How can we work with the secretary of commerce and trade office and the governor’s office and the legislators to develop programs that will allow us to grow in population?” asks Josh Lewis, the partnership’s executive director. “How do we get back to positive population growth and get more younger professionals locating here so that they can put down roots and grow and have families?”

One of the hurdles keeping some parents from working in the western part of the state is the availability and expense of child care, says Travis Staton, president and CEO of United Way of Southwest Virginia.

“We’re very close to about a 30% gap in child care availability, where other parts of the state only have about a 12% gap [in available child care vs. the need for child care],” Staton says.

Majority Speaker Kilgore and state Sen. Pillion proposed budget amendments asking that $14.2 million from federal American Rescue Plan Act resources be directed to the United Way of Southwest Virginia to support its Ready SWVA initiative, which would create five child care facilities in the region, while also strengthening the current network of providers.

The state budget plan released by the House in late February did not include the funding. The Senate’s budget plan included $3.5 million for the initiative. “We shall soon see how they reconcile,” Scott Robertson, director of marketing and communications for the United Way of Southwest Virginia, wrote in a March 8 email.

Jonathan Belcher, executive director and general counsel of the Virginia Coalfield Economic Development Authority, would also like to see Richmond’s lawmakers work on solving Southwest Virginia’s infrastructure problems.

In one of his last official acts, former Gov. Ralph Northam announced plans to put $207 million into completing the U.S. 460/121 Poplar Creek “Phase B” project in Buchanan County, part of the so-called Coalfields Expressway, which was proposed decades ago. (See related story.)

More money needs to be invested, Belcher says. “There’s certain parts of that region that we cover that, until there’s a much better highway connecting to the interstate, it’s always going to be a real big challenge to attract larger projects.”

EDITOR’S NOTE: This story has been corrected since its original publication. State Del. Israel O’Quinn is the deputy majority leader. He was incorrectly identified as deputy majority whip, his former position, in an earlier version of the story.

McGlothlins make nearly $60M gift to VMFA

The Virginia Museum of Fine Arts announced Tuesday that Bristol-area philanthropists James W. and Frances Gibson McGlothlin have donated nearly $60 million toward the Richmond museum’s expansion campaign, including 15 paintings.

Alex Nyerges, the VMFA’s director and CEO, said that a 170,000-square-foot wing will be named for the McGlothlins, who previously made a $30 million gift in 2010 that made possible a 165,000-square-foot addition also named for the couple. In 2015, the McGlothlins donated 73 paintings and other artwork to the museum’s permanent collection, a gift worth more than $200 million that included the works of American artists such as James Whistler, Mary Cassatt and John Singer Sargent.

James McGlothlin, chairman and CEO of The United Co., a former coal mining company, is co-developer of the $400 million Hard Rock Hotel & Casino Bristol. He and his wife have been major donors to their alma mater, William & Mary, as well as the museum.

According to Nyerges, the contribution includes 15 paintings by prominent American artists. In June 2021, the museum announced a $190 million expansion and renovation project that will begin in 2023, with completion scheduled for 2025. The project includes the new wing and a 40,000-square-foot collections center, renovation of the former library and a special events space. SmithGroup, a Detroit-based architecture firm, is planning and designing the project.

Finding new solutions

Movers and shakers in Southwest Virginia wanted to try a new approach to economic development.

The stakes were (and are) high.

Naturally, the decline of the coal industry had a devastating impact on Virginia’s coalfields. The Appalachian Regional Commission classifies four counties in Southwest Virginia — Buchanan, Dickenson, Lee and Wise — as economically distressed.

Every county in Southwest Virginia saw a drop in population over the past decade, according to the 2020 census, leading to the loss of a delegate seat.

Trying to turn the tide, leaders in the area created InvestSWVA, a public-private economic development and marketing initiative for Southwest Virginia.

The idea for the initiative was born, according to Will Payne, InvestSWVA’s director, out of a desire by several current and former state legislators representing the region, including the late state Sen. Ben Chafin, state Sen. Todd Pillion and Dels. Terry Kilgore and Israel O’Quinn, to see Southwest Virginia be more proactive and assertive in pursuing business leads.

One member of the group or another, according to Payne, heard a rumor that EarthLink CEO Glenn Goad, who grew up in Wise County, was considering bringing some customer service operations from overseas back to the United States.

Kilgore drove to Atlanta to visit Goad in November 2019, according to Payne. In January, a larger group consisting of Kilgore, O’Quinn, Pillion, Chafin, Payne and Duane Miller, executive director of the LENOWISCO Planning District Commission, traveled to Atlanta to talk again with the head of the high-speed internet and mobile phone service provider.

The personal approach worked.

In September, EarthLink announced plans to invest $5.4 million to build a customer support center on property that sits on a reclaimed mine site in Norton, creating 285 jobs.

Miller feels confident it was the efforts by lawmakers and leaders to make personal connections with business executives that caused Southwest Virginia to be successful with EarthLink.

“Everyone has just said, ‘OK, let’s roll our sleeves up, and let’s just get to it,’” Miller explains.

Big news in Wythe County

Experts say there are two must-haves for sealing economic development deals: the right infrastructure and the right location.

Virginia committed $8.5 million to upgrade infrastructure at Progress Park in Wythe County to secure a deal with Connecticut-based Blue Star NBR LLC to invest $714 million to build a manufacturing facility that will produce nitrile butadiene rubber and medical gloves, creating more than 2,000 jobs. (See related story.)

The state’s investment in the project includes $3 million to expand the Fort Chiswell Wastewater Plant, $1.5 million to extend public sewer infrastructure and $4 million to build a water tank serving Progress Park.

Another new tenant at Progress Park will also get to benefit from those upgrades. STS Group AG, a supplier of interior and exterior parts for commercial vehicles, announced in April it plans to invest $39 million to bring its first U.S. manufacturing operation to the Wythe County business park, creating 120 jobs.

Slot machines and sawmills

Southwest Virginia’s biggest economic development news in 2020 was, of course, Bristol voters’ overwhelming approval of a referendum allowing Hard Rock International Inc. to build a $400 million resort and casino.

In late 2021, Hard Rock International announced construction has begun on a temporary casino at the former Bristol Mall, set to open in the first half of 2022, creating an expected 600 jobs. The temporary, full-service casino will offer about 900 gaming slots and 20 tables for gaming, as well as a restaurant and lounge in a 30,000-square-foot space.

Smyth and Grayson counties celebrated a win in August 2021 when Woodgrain Inc., a manufacturer of wood molding and trim, announced plans to invest nearly $9 million to expand its Smyth County operations and put $8 million more into purchasing and expanding Independence Lumber sawmill in Grayson County.

“If this hadn’t have worked, it probably would have closed,” Mitch Smith, deputy county administrator for Grayson County, says of the sawmill, which is the county’s largest private employer.

This deal means the sawmill’s 80 workers will keep their jobs, and Woodgrain is set to add 20 jobs at the sawmill over the next three years, according to Smith. Additionally, the expansion is expected to create 80 jobs at the facility in Smyth County.

Energy opportunities

Del. Will Morefield, R-Tazewell, believes there’s a perception that Virginia’s coalfield communities are opposed to alternative energy. “In reality, we’re not,” he says. “We welcome it with open arms.”

Morefield is working closely with Kentucky-based Edelen Renewables, which is partnering with Kansas City-based solar developer Savion LLC to build a 700-acre solar farm on a former surface mine in Buchanan County. The $100 million solar farm is expected to generate about $100,000 annually in tax revenue and create about six permanent jobs and
250 construction jobs.

Although he’s a supporter of what he describes as “an-all-of-the-above approach” to energy, Morefield isn’t abandoning coal.

He was pleased when SunCoke Energy Inc., a producer of high-quality coke for blast furnace steel production, announced plans in May 2021 to invest $50 million to refurbish its manufacturing operation in Buchanan County and to perform upgrades allowing the facility to produce foundry coke, which is used for melting iron and other metals. Work on the project is expected to last several years, according to a company spokesperson.

“They’re one of the largest buyers of coal in Southwest Virginia,” Morefield says of SunCoke. “The multiplier effect that that company has on the local economy is significant.”

Growing established companies

“We’re seeing some really good growth among our existing manufacturing companies in the area,” says Jonathan Belcher, executive director of the Virginia Coalfield Economic Development Authority.

For one, Tempur Sealy International Inc. is expanding its Duffield facility in Scott County, investing $16.7 million and adding 25 jobs to meet growing demand for its foam mattress and pillow products.

In another win for Scott County, VFP Inc., which manufactures enclosures to protect critical infrastructure, announced plans in November 2021 to invest $7.2 million to expand its operation there, enabling the company to produce larger concrete shelters and meet future market demand.

Tazewell County also benefited from an expansion by a longtime area employer in 2021. Family-owned heavy metal fabricator Lawrence Brothers Inc. announced plans in April to invest $3.2 million to upgrade and modernize its machinery and equipment to increase capacity and double production. The expansion is expected to create 40 jobs.

Good fits for Russell County

Some economic development offices get obsessed with landing a whale, according to Ernie McFaddin, chairperson of Russell County’s industrial development authority. While he’ll certainly take a corporation bringing 2,000 jobs to the area, he’s also happy to land medium-size deals.

“I know for us that an employer with 50 to 150 jobs is really the sweet spot,” he says. The county got just that with Ceccato S.p.A. In September, the Italian vehicle-washing equipment manufacturer announced plans to invest $1.75 million to build its U.S. headquarters in Russell County, creating up to 50 jobs over the next three to five years.

Ceccato USA President and CEO Jimmy Sisk settled on the Russell Place building in Lebanon the first time he looked at it, according to McFaddin.

“I think the biggest thing he liked was that he really didn’t have to do anything to it,” McFaddin says. “Clearly they were looking for a place where they could get started quickly.”   


 

Southwest Virginia’s recent deals

Blue Star NBR LLC

Wythe County

2,464 jobs

EarthLink

Norton

285 jobs

Amazon.com Inc.

Bristol

200 jobs

STS Group AG

Wythe County

120 jobs

Maine Five Distributors LLC

Buchanan County

100 jobs

Woodgrain Inc.

Smyth County

80 jobs

Ceccato S.p.A.

Russell County

50 jobs

Lawrence Brothers Inc.

Tazewell County

40 jobs

Mohawk Industries Inc.

Carroll County

35 jobs

VFP Inc.

Scott County

30 jobs

Source: Virginia Economic Development Partnership

Hard Rock names president of new Bristol hotel and casino

Hard Rock International Inc. has announced a president to lead its hotel and casino operations in Bristol.

Allie Evangelista most recently served three years as a vice president and general manager for Penn National Gaming operations, including the past seven months at Hollywood Casino Perryville, in Maryland. Evangelista has “already hit the ground running and is busy assembling a talented team to operate the resort,” Hard Rock International Chief Operating Officer Jon Lucas said in a news release announcing the hire Tuesday.

Evangelista joined the gaming industry in 2006 as an assistant slot operations manager in Missouri, and worked her way up into vice president and managerial roles at casinos in Iowa and Ohio. Lucas called Evangelista an “American success story.”

Hard Rock is expected to open a 30,000-square-foot temporary casino featuring 900 gaming slots and 20 tables for gaming operations at the former Bristol Mall during the second quarter of 2022. The temporary casino is expected to generate 600 jobs.

The permanent casino, to come later, will be 90,000 square feet and cost about $400 million, creating 2,000 jobs once it is fully operational and 1,500 indirect jobs. It will have a 3,200-seat performance venue and 20,000-person capacity outdoor entertainment venue. Once operational, it is expected to bring $21 million in annual tax revenue for Bristol.

Evangelista has masters degrees in business administration and human resources management.

“I look forward to embracing the community in Bristol and working with the many partners who have been instrumental in supporting the project,” Evangelista said in a statement.

 

Construction begins on Hard Rock casino in Bristol

Construction has started on the Hard Rock Hotel & Casino Bristol’s temporary casino, with opening scheduled in the second quarter of 2022, Hard Rock International Inc. announced Thursday.

Before its permanent casino is built, Hard Rock will build a 30,000-square-foot casino at the former Bristol Mall. It will feature 900 gaming slots and 20 tables for gaming options. It will have a main casino floor and non-smoking and high limit gaming areas, plus a new restaurant, grab-and-go food outlet, sports bar and lounge with entertainment and adjacent smoking sports lounge. The site will have a sportsbook, Virginia lottery offices and a retail store.

Construction will begin soon in the former women’s Belk store in the building.

The temporary casino will create 600 jobs, Hard Rock anticipates.

“We’ve introduced the Hard Rock experience to a number of cities this year, and our presence in Bristol, Virginia, is especially rewarding for the brand as the project is our first hotel and casino in the state,” Jon Lucas, chief operating officer of Hard Rock International, said in a statement. “The project will spur economic growth, additional tax revenue and create new jobs for the city and its surrounding areas. We look forward to welcoming Hard Rock fans in the new year.”

The permanent casino, to come later, will be 90,000 square feet and cost about $400 million, creating 2,000 jobs once it is fully operational and 1,500 indirect jobs. It will have a 3,200-seat performance venue and 20,000-person capacity outdoor entertainment venue. Once operational, it is expected to bring $21 million in annual tax revenue for Bristol.

In November 2020, Bristol voters overwhelmingly approved the casino plans via referendum, as did voters in Danville, Norfolk and Portsmouth. The casino is being developed by former coal mining magnates Jim McGlothlin, chairman and CEO of The United Co., and Clyde Stacy, president of Par Ventures.

Amazon opens delivery station in Bristol

The Amazon.com Inc. delivery station in Bristol opened for its first official day of operation Wednesday.

Located at 103 Thomas Road, the station is 72,000 square feet. A delivery station creates on average 100 to 150 full- and part-time associate jobs “in addition to hundreds of driver opportunities,” with wages of at least $15 per hour, the global e-tailer said in a news release. Amazon has created more than 27,000 jobs in Virginia since 2010.

Two Bristol companies, Strategic Growth Logistics and Friendship Automotive Enterprises, have partnered to support the new jobs by hiring and training drivers.

Delivery stations are the last step in Amazon’s ordering process. Nearby Amazon fulfillment and sortation centers send packages to the stations, where the parcels are loaded into vehicles to be delivered to customers.

Amazon also recently launched a career center in Chesapeake and delivery stations in Norfolk and Hampton, as well as announcing that it will open one in Stafford County this month.

Additionally last week, Amazon announced it has hired 3,000 of the expected 25,000 employees it expects to recruit by 2030 for its multibillion-dollar East Coast H2Q headquarters in Arlington.

 

Virginia Lottery reports record $3.26B in annual revenue

The Virginia Lottery posted an all-time record $3.26 billion in annual sales and a record $765 million in profits for the fiscal year that ended June 30, the lottery’s board announced Wednesday.

The lottery saw a 52% increase in revenue and a nearly 30% increase in profits over the prior fiscal year. The introduction of online lottery sales on July 1, 2020, drove the increase, accounting for more than $807 million in sales, lottery officials said.

Virginia Lottery players won a record $2.2 billion in prizes in the recently ended fiscal year. Additionally, more than 5,300 brick-and-mortar retailers earned a total of $139 million in sales and cashing commissions, a $19 million increase from the previous fiscal year.

“The Lottery partners with thousands of licensed retailers across Virginia, many of them small ‘mom-and-pop’ and minority-owned businesses. These retailers continue to be the backbone of how we reach consumers, and we literally could not do it without them. We were especially pleased this year to see substantial sales increases at retail even after we added online play,” Lottery Executive Director Kevin Hall said in a statement.

The results announced Wednesday are preliminary, and the auditor of public accounts is expected to officially certify them in mid-August.

Under state law, Virginia Lottery profits go to Virginia K-12 public schools.

The Virginia Lottery is also responsible for licensing and regulating mobile sports betting and casino gaming. Legalized sports betting began in late January in Virginia and by July, Virginians had bet more than $1 billion. The lottery also has begun the licensing process for voter-approved casino projects in Bristol, Danville, Norfolk and Portsmouth. A proposed Richmond casino will be decided on by city voters in a Nov. 2 referendum.

Eight over 80

What keeps a person working at an age when most of us are happy to let others take care of business? These overachieving Virginians, all over age 80, have remained hard at work mostly for one or more of three reasons.

The first is being able to continue work with family. Retirement is rarely mandatory if you or your progenitors founded the company, which is the case for many of these dynamos.

The second is their desire to make their communities a better place, whether through their businesses or charitable good deeds, but usually both.

And last, but certainly not least, most take undiminished pleasure in continuing to wheel and deal.

Meet eight* outstanding octogenarian Virginians who aren’t yet done making their mark on the commonwealth. 

*The online version of this story includes a bonus ninth profile of nonagenarian Norfolk real estate magnate Harvey Lindsay Jr.

 

“You’ve got to give up everything to achieve success. You’ve got to have that dedication.”-Ramon W. Breeden Illustration by Vicente Martí

RAMON W. BREEDEN JR. | 87
President and CEO, The Breeden Co., Virginia Beach

“My hobby is really my business,” says Ramon W. Breeden Jr. “I’m thinking about it in the middle of the night.”

That level of intensity wouldn’t surprise anyone who has ever worked with the real estate magnate, who has been a go-getter from the get-go. The Richmond native grew up in modest circumstances and went to the University of Virginia on a baseball scholarship. When his parents couldn’t afford to keep him in school, Breeden wasn’t deterred, taking on odd jobs to finance his own education. He began his career as a math teacher but, desiring to be in charge of his own destiny, Breeden soon turned to real estate development and mortgage financing, founding The Breeden Co. in 1961.

In the 60 years since, The Breeden Co. has owned, managed or developed more than 15,000 apartments, 1,700 single-family homes and 2 million-plus square feet of retail and office space, mostly in Virginia. It now focuses on high-density, mixed-use projects, and its business continues to expand at a rate of 12% to 15% annually, says Breeden, who continues to work full time. “Why not?” he says about his schedule. “I’m healthy. I’m fit.”

Breeden’s son, Torrey, has worked with him in the family business for more than 20 years.

In his down time, Ramon Breeden likes to fly and still pilots his company’s corporate airplanes and helicopters. Over the years, he also served on the board of the former Commerce Bank in Virginia Beach and was a director of Branch Banking & Trust (BB&T) Co. of Virginia (now part of Truist Financial Corp.).

He also has remained involved with higher education, variously serving U.Va. as a member of the McIntire Foundation Board and the McIntire Advisory Board. Some
of his considerable energies have gone into supporting his local SPCA and United Way, as well. “I never think about doing more,” Breeden says of the prodigious number of things
he already does. “I think about doing [it] the right way.”

 

“Don’t borrow money you don’t know how
to pay back.” -Daniel Clemente. Illustration by Vicente Martí

DAN CLEMENTE | 84
Chairman and CEO, Clemente Development Co. Inc., Vienna

When he is working, Dan Clemente doesn’t stop. “It’s 24 hours a day,” he says. “I don’t do anything else.”

With that schedule, unsurprisingly, Clemente has accomplished a lot. He started out in the 1960s as a lawyer specializing in bankruptcies, eventually becoming a nationally known expert on bank failures. He subsequently parlayed that knowledge into founding banks in Arlington and Springfield.

But at heart, Clemente is a developer. Perhaps it was in his blood, since his grandfather was in the development business in New York City with former President Donald Trump’s father, Fred. Clemente’s inaugural project was Virginia’s first-ever condominium complex, the Tower Villas in Arlington, built in 1974. Condos were such a new concept in that era, Clemente says, that state and local officials didn’t even know what a condominium was.

From that first foray into the housing market, Clemente went on to become one of the largest commercial and residential developers in Northern Virginia, and the many projects that he has undertaken in the past 40 years have helped shape the NoVa landscape, most dramatically at Tysons. There, Clemente has been a prime force behind the transformation of the former small town crossroads into an edge city. In recent years, he has been planning a $1.3 billion mixed-use project, The View at Tysons. Currently delayed because of the pandemic, the project includes plans for the tallest building in Virginia. Clemente’s wife, Juliann, serves as president of the company.

Clemente has also carved out time to be active on the civic front. Most notably, he was instrumental in the creation of George Mason University, for which he later served as a rector and chairman of the board of trustees. He has sat on many prestigious commissions, and is currently a board member of the powerful and influential Virginia Economic Development Partnership.

So, what is the secret to Clemente’s impressive productivity? Taking time off to smell the roses between projects. “Historically, I’ll not do something for six to eight months,” he says, taking that time to travel and get “educated on how the world works.” It’s a yin-yang approach to building a career, but it’s worked for him. “It helps keep me balanced,” he says.

 

“Get as much education as you possibly can, [but] a lot of good fortune comes to those who work the hardest.” -W. HEYWOOD FRALIN Illustration by Vicente Martí

W. HEYWOOD FRALIN | 80
Chairman, Medical Facilities of
America Inc.; chairman, Retirement Unlimited Inc.,
Roanoke

“As long as it is fun, I plan to continue.” That’s how Heywood Fralin sums up his decision to keep working full time as chairman of not one, but two, large businesses, both dedicated to senior care. With COVID-19 targeting older adults, Fralin has led his businesses through extremely difficult times of late.

“We faced a tremendous number of challenges,” he says, but, thankfully, the vaccinations have brought “very positive results.”

Fralin’s work ethic was shaped early. As a child, he was expected to do his chores before doing anything else, and by age 13, he was delivering newspapers. “I had a morning route delivering
121 papers,” Fralin recalls. “I had to get up at 4:30 or 5 every morning.” But he didn’t mind. In fact, the job was his idea. “These kinds of things are good lessons for kids,” he says. “It gives them a drive to succeed.”

Fralin’s 60-year-plus career certainly makes him the poster child for that view. After training as a lawyer, the Roanoke native joined the family businesses, and under his guidance both expanded exponentially: MFA Inc., which offers nursing and rehabilitation services, now has about 40 locations, and Retirement Unlimited Inc. operates 10 senior living communities. Fralin’s son William has taken over as president and CEO of both companies.

The senior Fralin is well known across the commonwealth for his civic and charitable endeavors. He serves on both the State Council of Higher Education for Virginia and the Virginia Business Higher Education Council, and he has served on the boards of visitors at his alma mater, the University of Virginia, as well as for Virginia Tech. He and his wife, Cynthia, have been outstandingly generous to both schools. In 2012, they donated their collection of American art to U.Va., which subsequently renamed its art museum in their honor. Six years later, it was Virginia Tech’s turn, when the Fralins, along with the Horace G. Fralin Charitable Trust, donated $50 million to the university for a biomedical research institute. Most recently, the Fralins gave U.Va. $5 million to endow the head football coach’s position.

Looking back at his illustrious career, Fralin says, “The best part of any job is the relationships with the employees and the friendships you develop.”

 

“Know everything you could possibly know about property and then work like hell.” BARBARA FRIED Illustration by Vicente Martí

BARBARA FRIED | 85
President, The Fried Cos. Inc., Crozet

“I used to really enjoy rezoning,” says Barbara Fried. That’s not a claim that many folks could probably make, but after 45 years in the real estate development and management business, Fried still finds “the prospect of something new always exciting.”

Fried’s company, based out of the family farm in Crozet with offices in Greene County, focuses on building residential and office complexes, shopping centers and industrial parks, many in the Charlottesville market. It handles about $100 million in new construction projects every year and also manages properties, although it sold off many of its holdings before the 2008-09 real estate crash, Fried says.

An exception to that selloff was Olde Towne Pet Resort, a luxe boarding operation for dogs and cats with three locations in the D.C. metro area. An ardent animal lover, Fried also sponsors a therapeutic riding program on her farm. For most of her long career, Fried ran the pet spa and other enterprises in tandem with her late husband, Mark.

“He was the gas, and I was the brakes,” she says, but since his death in 2010, she had to keep her feet on both pedals. Helping her steer the company into the future are her daughter, Leah, and nephew David Lesser. But Fried remains central to everything the company does. Chief Financial Officer Steve Rotter says he copies her on every email.

Although he says he spares her the gory details occasionally when the company faces “a particular hurdle” or a new project, he consults Fried, and “they bounce ideas back and forth. Forty years of experience can’t be learned in a book necessarily,” Rotter says.

 

“If you decide to accept a position, give it all you got.” VINCENT MASTRACCO

VINCENT MASTRACCO | 81
Senior partner, Kaufman & Canoles PC, Norfolk

Other than a stint as a federal law clerk in New York City when he was starting out, Vince Mastracco has practiced business law in Norfolk for more than 55 years. He began his career locally as the second lawyer in what was the solo practice of Leroy T. Canoles Jr. “I wrote to Canoles and told him I wanted to come home and work in Norfolk. Canoles said, ‘I don’t know, we’ll see how we do,’” Mastracco recalls.

How they did, as it turned out, was gangbusters. Their business prospered and grew along with the Hampton Roads region. In 1981, the practice merged with another firm to become Kaufman & Canoles, which now has eight offices and about 100 attorneys. “Timing was on our side,” Mastracco says.

Timing, though, deserves little credit for the game-changing role Mastracco has played in the region as a civic leader and lawyer specializing in mergers, acquisitions and financing. He has been involved in mega-projects such as Chesapeake’s Jordan Bridge, the Midtown Tunnel and the Hilton Norfolk The Main hotel.

As a senior attorney, Mastracco decides when he wants to work these days, offering a flexibility that has allowed him to serve on several boards and commissions, including the Hampton Roads Community Foundation, the Sentara Foundation, Eastern Virginia Medical School Foundation and Virginia Wesleyan University. As the former chairman of the Virginia Economic Development Partnership, his influence extended to Northern Virginia, where VEDP played a significant role in bringing Amazon.com Inc.’s East Coast HQ2 to Arlington.

“You want to make sure to be part of something that is productive and good for the community,” Mastracco says. As both a lawyer and a citizen activist, he checks both boxes.

 

“Be honest and do the right thing, and life will treat you well.” JIM McGLOTHLIN

JIM McGLOTHLIN | 80
Chairman and CEO, The United Co., Bristol

Jim McGlothlin tried to retire when he was 62. “It wasn’t much fun,” he says. “I missed making deals and working with my associates.”

Almost 20 years later, the head of The United Co. (formerly United Coal Co.) is still making deals and still finds it “a thrill to work with really good people.”

After starting his career as a lawyer, McGlothlin, almost on a whim, bid on a floundering coal company. With the help of some partners, including his father, he turned it into a rousing success. In short order, United Coal was producing a million and a half tons of coal annually and brokering almost three times that much. McGlothlin eventually became sole owner of the renamed United Co., which diversified into mine ownership as well as oil and gas holdings in Texas. Never averse to trying something new, McGlothlin also has opened RV parks in Florida, South Carolina and Mississippi.

His latest deal is one of his biggest — McGlothlin and his high school classmate and fellow coal baron Clyde Stacy spearheaded an effort to bring a Hard Rock Hotel and Casino to Bristol, a project that local voters overwhelmingly approved last November.

Plans call for the $400 million casino to open as soon as late 2022 on the site of the former Bristol Mall, which is owned by Stacy.

The venture is expected to employ about 2,000 people in the region. “We need these jobs really badly,” McGlothlin says, noting that unlike coal industry jobs, card dealers can’t be outsourced to China. For their efforts to bring the gambling complex to Bristol, McGlothlin and Stacy were recently named Bristolians of the Year by the Bristol Herald Courier.

“It’s a good way to leave our mark, to help the people in our region and our city,” McGlothlin says.

 

“Bet on the jockey, not the horse.” JIM UKROP
“Bet on the jockey, not the horse.” JIM UKROP

JIM UKROP | 83
Managing director and co-founder,New Richmond Ventures LLC, Richmond

“I don’t hunt, I don’t fish, I don’t go to Florida, and I threw my golf clubs in the ocean, so I have to do something,” Jim Ukrop responds facetiously when asked why he still works. Besides, he adds, “I do what I like to do. It’s not a job.”

What Ukrop calls “not a job” is being “the idea guy” for New Richmond Ventures, the five-person venture capital firm he helped establish in 2012 to help area startup companies.

“I connect the dots,” says Ukrop, who possesses a wealth of connections from a lifetime as one of Richmond’s most prominent businesspeople. “I could never read a balance sheet. I have someone else do that.
I give advice and counsel.”

Before becoming a venture capitalist, Ukrop was president, CEO and chairman of Ukrop’s Super Markets Inc., the eponymous chain of grocery stores that his family operated in the Richmond area from 1937 to 2010. He was an idea guy then too, introducing new concepts such as customer loyalty cards and prepared foods. “No one else had that” at the time, he says proudly.

In 2010, the Ukrop family sold the grocery stores and divested from First Market Bank (now Atlantic Union Bank), which Ukrop co-founded and chaired. Those sales freed up time for his heavy involvement with nonprofits. He has served on more than 20 community boards and has volunteered in a variety of capacities for his alma mater, William & Mary.

Ukrop still is active in several community organizations but is especially passionate about Virginia Learns, a statewide advisory council of business leaders that focuses on K-12 education.

Too many children, Ukrop says, “have already dropped out in their minds way before high school. That’s poor public policy.” Unlike some people of a certain age, he loves younger people, including millennials, he says. Their arrival on the scene means “one less person who likes fruit cake, one less person who likes Smithfield ham, and one less bigot.”

“Be determined to learn all you can.” RICHARD WALLER JR.

RICHARD WALLER JR. | 83
Owner, Waller & Co. Jewelers, Richmond Richard Waller Jr. started working at age 7.

Every day after school, he would go directly to the family watch-repair business, M.C. Waller & Sons, where his job was to wipe down the glass showcase, inside and out. “I made 10 cents a day, and I always had extra money in my pocket,” he remembers.

Fast-forward 76 years, and both Waller and the showcase can still be found at the rechristened Waller & Co. Jewelers on East Broad Street in Richmond. Waller is the third generation of his family to work in the business, which was founded by his grandfather in 1900 as a watch repair business. He has been joined in the enterprise by members of the family’s fourth generation, including sons David and Richard III and his daughter-in-law, Kim. The shop has morphed into a full-inventory jewelry store and a go-to place for members of Black fraternities and sororities in search of Hellenic-themed items, including everything from necklaces, rings and earrings to umbrellas and knee socks.

Last May, about 100 Black university students and members of Greek organizations helped pick up the pieces after the store, one of the oldest Black family-owned businesses in Virginia, suffered damage and theft during racial justice protests that sparked looting and vandalism. After helping with repairs, many of the volunteers took out their wallets to buy merchandise.

Waller was only 17 when he took over the business after the death of his father. He had five younger sisters to support, and “you do whatever is necessary,” he says. He subsequently became a master jeweler and watchmaker.

“I still have a callus from winding 150 watches every morning,” he says. Most watches these days are digital, but Waller also repairs crystals and vintage timepieces, and most days he arrives at the store at 8:15 a.m. for its 10 a.m. opening.

He doesn’t have to be an early bird, but he wants to be there. “I enjoy what I do,” he says.

 

Bonus profile:

“Try to work with a firm that has a good reputation. Reputation means so much.” HARVEY L. LINDSAY JR

HARVEY L. LINDSAY JR., 92, chairman, Harvey Lindsay Commercial Real Estate, Norfolk

Harvey L. Lindsay Jr. has worked in real estate for a whopping 66 years, but he hasn’t tired of it yet. He continues to come in every day to try to get listings and help make deals.

“I just love the business,” he says, explaining his longevity on the job. Part of the reason for that sentiment is that real estate always has been a family affair for him. After a stint as a Marine serving in the Korean conflict in the early 1950s, he joined his father’s real estate firm.

“My dad was a great real estate man and did a lot of great things,” he says. Today, family remains central to Lindsay and to the business. His sons, Robert M. “Bob” King and William E. King, two sons-in-law, two grandsons and a nephew join him in selling, leasing, managing, financing and developing commercial properties, primarily in Hampton Roads. Lindsay’s definition of family extends into his community, where he has a distinguished history of pursuing social justice.

In the 1950s, he chaired a citizens advisory committee that pushed to reopen Norfolk public schools that had closed instead of integrating. At various times since, he has volunteered for the United Way and served on the board of Eastern Virginia Medical School (then known as the Medical College of Hampton Roads) along with being active in civic institutions such as the former Norfolk Chamber of Commerce. He currently sits on the boards of the General Douglas MacArthur Foundation and the Harbor’s Edge Foundation.

In 2018, the CIVIC Leadership Institute presented Lindsay with its Darden Award for Regional Leadership in honor of “his optimism, his regional vision and his commitment to justice for all.” The following year, Old Dominion University recognized his business acumen by naming its real estate program after him. Lindsay’s wife, Frances, passed away three years ago, and he’s had a difficult time coping with the loss.

“Coming in to work helped me through that,” he says, in no small part because it has allowed him to keep “building things that will be of benefit to people in our city and our region.”

Saving the day

Running from police, an unremarkable bad guy with sandy hair suddenly grabs a little girl and dangles the young hostage from the third floor of a mall atrium.

As a gaggle of nonplused bad guys decked out in ’80s pastels and John Oates mustaches look on, the skylight above
shatters. It’s Wonder Woman, swooping into the scene on her golden Lasso of Truth! She saves the girl and makes quick work of the baddies, notably throwing one through a giant gimmick marching drum emblazoned with the “Virginia is for Lovers” logo.

The scene, filmed at Alexandria’s defunct Landmark Mall in 2018, is from “Wonder Woman 1984,” a December 2020 superhero movie that re-creates the era of Jazzercize, Members Only jackets and side ponytails. Though CGI can accomplish most anything these days, the filmmakers behind this feminist slugfest were pleased to make use of the Landmark, which was built in 1965 and operational until 2017.

The sad reality, though, is that not all malls can be repurposed as movie sets. Even before the pandemic hit and online shopping exploded, the so-called “retail apocalypse” caused by the prominence of Amazon.com Inc. and other online merchants had caused many retailers to go the way of Waldenbooks.

However, developers are beginning to see opportunities in aging shopping mall properties, either in redeveloping the spaces as multiuse projects combining residential, office, entertainment and dining or converting them into something else entirely. Across Virginia, mall properties are being redeveloped to include apartments, sports venues, a medical campus, a casino, and, just maybe, a massive entertainment arena.

The former Bristol Mall is being converted into a Hard Rock casino and resort hotel, slated for completion by late 2022. Rendering courtesy Friedmutter Group
The former Bristol Mall is being converted into a Hard Rock casino and resort hotel, slated for completion by late 2022. Rendering courtesy Friedmutter Group

That’s entertainment

Robert Gibbs, a Michigan-based urban planner who specializes in repurposing mall properties, paints a bleak portrait of the future for brick-and-mortar retail. Citing reports from Credit Suisse and others, he predicts 50% to 60% of the nation’s current stock of regional malls will be shuttered by 2026. Larger strip malls with big box anchors will go away even faster. Strip malls anchored by grocery stores? Their numbers will be cut in half as more people move online to buy groceries, forecasts Gibbs, who specializes in repurposing mall properties as an urban planner and managing principal of the Gibbs Planning Group.

Still, Gibbs says there’s hope in property renewal. Malls are generally set on large plots of contiguous land that are well-connected to highways and other popular thoroughfares.

“There is a lot of money to be made in repurposing these malls, and it’s starting to be known,” says Gibbs, who worked during the ’80s as director of planning for Michigan-based Taubman Co., one of the largest mall owners in the country.

Some properties, like the shuttered Bristol Mall, are being redeveloped into entertainment venues.

In November, voters in Bristol, Virginia, approved a plan to build a $400 million casino at the former mall. The Hard Rock Hotel & Casino Bristol is expected to create about 2,000 jobs and generate $130 million in revenue and $35 million in taxes annually.

Opened in 1976, the 550,000-square-foot mall shuttered for a second and final time on Aug. 31, 2017, after its last remaining store closed.

“The Bristol Mall for many years was kind of the heartbeat of the community. Like a lot of malls, unfortunately, it faced an economic decline and ultimately had to close,” says Andy Poarch, chief operating officer of Richmond-based Alliance Group, a lobbying and public relations firm. While extensive interior remodeling will take place, Poarch says, the plan is to retool the mall into the casino. “The bones of the mall are going to be left intact.”

Local investors Jim McGlothlin and Clyde Stacy hope to open the Hard Rock Bristol casino resort by the end of 2022.

Mall makeovers

Developer Rob Hargett of The Rebkee Co. is redeveloping Regency Square Mall in Henrico County into a mixed-use community with apartments, offices, restaurants and a reduced retail footprint. Photo by Matthew R.O. Brown
Developer Rob Hargett of The Rebkee Co. is redeveloping Regency Square Mall in Henrico County into a mixed-use community with apartments, offices, restaurants and a reduced retail footprint. Photo by Matthew R.O. Brown

Rob Hargett, a principal and co-founder of Richmond-based development group The Rebkee Co., is at the center of two major mall redevelopments underway in Henrico County that aim to replace former retail properties with sports and entertainment amenities.

Regency Square, which opened in 1975 as Central Virginia’s premier indoor mall, is undergoing a conversion to a mixed-use development. Rebkee is reducing Regency’s retail footprint and adding restaurants, apartments, offices and entertainment venues. New shops and restaurants have been added since Rebkee and Thalhimer Realty Partners purchased Regency Square in February 2017 for $13.1 million, and more additions are in the works, including a swimming facility and a trampoline park. Already, Hargett says, Rebkee and Thalhimer have invested $125 million in the project, including purchasing the mall’s former JCPenney store for $3.1 million last year.

“It could easily be another $125 to $150 [million] in the next three years,” Hargett says, adding that some of the lessons he’s learned with Regency Square are helping him with the redevelopment of Virginia Center Commons, a sprawling indoor mall that opened in 1991 in Henrico near the border with Hanover County.

Where the Regency project is an adaptive reuse, Virginia Center Commons’ redevelopment is more of a teardown, Hargett says.  

All new development at Virginia Center Commons will take place over the mall’s existing footprint. That includes the Henrico County Sports & Event Center, a 4,500-seat facility that can be used for events such as sports competitions, small concerts or church services. The Virginia Center Commons redevelopment will likely be completed in the next three or four years and also will include a hotel built by Chester-based Shamin Hotels.

In Norfolk, the city government is seeking bids to redevelop Military Circle Mall which entered foreclosure and lost its anchor tenants in 2015 into a walkable, live-work-play development. The city government purchased the mall property and the adjacent former DoubleTree Hotel tower last June for $13.4 million.

Norfolk city government acquired the unsuccessful Military Circle mall in 2020 and is seeking bids to redevelop it into a walkable, live-work-play community. Photo by Mark Rhodes
Norfolk city government acquired the unsuccessful Military Circle mall in 2020 and is seeking bids to redevelop it into a walkable, live-work-play community. Photo by Mark Rhodes

Among those pitching to redevelop the property are Grammy-winning musician and Virginia Beach native Pharrell Williams and Virginia Beach developer Bruce Thompson. Three of the four groups competing to take on the 73-acre project are companies specializing in designing or operating major arenas, and their plans include large-scale sporting and entertainment venues.

Jared Chalk, Norfolk’s director of economic development and executive director of the Norfolk Economic Development Authority, says that while an arena wasn’t required in the redevelopment pitches, “Virginia and Hampton Roads specifically lacks a world-class arena, and Military Circle is a super-regional location,” noting that it sits near the interchange of Interstates 64 and 264. “The center of the region is where Military Circle is.”

Military Circle proposals are due to the city by May 14, and the city will likely select a redevelopment proposal before this summer.

Additionally, the city is already beginning to envision the future of the struggling MacArthur Center downtown mall. Norfolk has laid out three possibilities for redeveloping the 22-year-old, 140-store mall to ensure its future viability; options include complete demolition, converting part of the property into office space and creating a pedestrian-friendly promenade with mixed-use buildings.

Scrapes and bandages

Though Alexandria’s Landmark Mall recently cosplayed as its younger self for “Wonder Woman 1984,” its future will take place behind a stethoscope.

Local real estate development firm Foulger-Pratt is partnering with Texas-based real estate management company The Howard Hughes Corp. and New York- based Seritage Growth Properties to redevelop the 52-acre site into a 4-million-square-foot, mixed-use walkable community anchored by a $1 billion replacement for the outdated Inova Alexandria Hospital. Brigg Bunker, chief operating officer and managing partner at Foulger-Pratt, says the development will bring a critical mass of people to the area and likely offer a mix of residential offerings, including townhomes, apartments and senior assisted and independent living. The development will feature ground-level retail, as well as public spaces and parks.

“[We] hope that people will just come to the public spaces and enjoy them, whether they’re shopping or not,” Bunker says.

Demolition and infrastructure work on the property will begin in 2023, with portions of the site set to open in 2025.

In a more straightforward approach to redeveloping large retail properties, developer Rob Chesson of Richmond-based The Manakin Cos. LLC is looking to “scrape” the closed Staunton Mall in Augusta County and start over from scratch.

Chesson purchased Staunton Mall in late 2020 for $3.2 million. He says that JCPenney’s recent bankruptcy declaration couldn’t have come at a better time. Often, one of the major hurdles for redeveloping a mall is that struggling anchor stores own their buildings and have contracts with the mall, making their properties difficult to repurpose.

Even though the Staunton Mall had been depressed for a decade, with retail vacancies piling up, the mall’s prior owner couldn’t close it down because of JCPenney’s contractual requirements. Just in utilities, keeping the mall open was costing $900,000 annually.

While there was some public blowback from the mall’s remaining tenants about Chesson’s decision to close the mall in January, he says 85% of tenants were on month-to-month leases, and the remaining leases were set to expire at the end of 2020. Some tenants were paying as little as 20 cents per square foot when most malls cost $2.50 a foot to operate, he added.

“Frankly, this mall had kind of become a shantytown,” says Chesson, whose company specializes in purchasing vacant buildings and distressed assets and making them profitable once again. “You really needed JCPenney to go into bankruptcy in order to close the mall.”

Demolition of the Staunton Mall is slated to be finished in July. The property, Chesson says, is “30 acres of dirt with great visibility and access to the interstate.” He plans to replace the mall with a mixed-use development combining retail, flex space and multifamily with retail outparcels.

In any case, as shopping tastes continue to evolve and millennials and Gen Z-ers gain purchasing power, malls will need to adapt quickly, says Gibbs, the mall repurposing guru. Old-fashioned ’80s-style malls have little appeal to today’s younger consumers, he says.

“They find them boring, and they prefer to shop somewhere they can have an experience,” he says. “There’s a real desire to shop and to dine around other people, [but] shopping is secondary to the experience.”

Click Here For A Larger PDF of the Commercial Real Estate Firms.

Reopening weekend largely positive for restaurants

Reopening weekend was largely positive for restaurants and other businesses in Virginia localities that entered Phase One of Gov. Northam’s Forward Virginia plan on Friday.

“It was actually very busy,” said Brad Smith, general manager of Quaker Steak & Lube on Bristol’s State Street. “We were busy to the capacity we could be.”

Smith had seen firsthand the difference earlier this spring when Tennessee’s governor allowed restaurants to reopen literally across the street from his own restaurant on the Virginia side. To keep people from crowding, Smith’s staff texted patrons as tables became available.

Quaker Steak & Lube, as required by Northam’s Phase One regulations, opened its outdoor patio and kept tables more than six feet apart. Staff members wore masks, but Smith noted, “I did not see a guest wear a mask the entire weekend.”

“I felt like guests were overwhelmingly patient,” he said. “People were generally happy to get out and eat at a restaurant.”

It was similar in downtown Fredericksburg at Foode and Mercantile, sister restaurants that have stayed afloat by offering curbside delivery, take-home dinner packages and even selling groceries. Operations for both restaurants are now combined in Foode’s kitchen.

Reopening their patio this weekend “was good,” said co-owner Joy Crump, the restaurant’s executive chef. “It’s hard to assess it. We’re more careful in a million ways, so that slows things down. We’re doing it in the vacuum of what we can accomplish now.”

Like Smith, Crump said that guests seemed happy to be out and about. Many of her patrons wore masks when not eating and drinking. Because the restaurants still offer pickup and delivery, Crump said, patrons who did join them on the patio were happy to be there.

“You’re not getting people sitting at a table that aren’t ready to sit at a table,” she said. “They wanted to see how we were doing.”

In Virginia Beach, Rudee’s Restaurant & Cabana Bar was bustling, said Carter Turpin, the restaurant’s owner. Rudee’s was “very busy all three days of the weekend. We open at 11 each day. Customers were waiting at 10:45 a.m. Friday to get on the deck.”

Turpin too said some customers wore masks and were “very friendly and patient. Most everything went smoothly,” although staff had to learn new table sections.

Business at Rudee’s and other Virginia Beach restaurants is likely to increase further as beaches reopen Friday for recreational use, although restaurants will still be required to keep dining rooms closed until localities enter Phase Two, expected to begin in two or three weeks.

Reopening meant more work for restaurant employees, and Turpin said all of his staff was back. Smith is hiring in Bristol, and Crump, who has been able to gradually add shifts since her dining rooms were shut down, said about three-fourths of her former staff are back at work.

It was considerably slower at Roanoke’s Historic City Market on Saturday than it usually would be on a pleasant spring day, said Jaime Clark, marketing and communications manager for Downtown Roanoke Inc., which runs the farmer’s market. “Crowds were decent but by no means close to what they normally be,” she said. “Only four vendors showed up,” down from about 30 to 35 on a typical Saturday.

Part of the reason was a restriction on vendors who sell things other than food, soap or other hygiene products, Clark noted, which kept artists and crafters away. “I think a lot of people are thinking ‘wait and see what happens,'” she said. “Hopefully once people get the message that the farmer’s market is open and we’re following safety protocols, we hope people will come out safely.”

Clark and her family left town to go camping in Floyd County, another opportunity that was unavailable to Virginians until this weekend. There were not a ton of people at the campground, she said, and campers were “pretty spread out.”

Accomack County, the city of Richmond and five Northern Virginia localities chose to delay Phase One until May 29; local officials requested a postponement from Northam last week. The five counties and two cities still have higher-than-average rates of COVID-19, and officials there said they weren’t ready to reopen “nonessential” businesses, restaurants and personal care businesses such as massage therapy parlors, barber shops and nail salons.

However, businesspeople and elected officials in other parts of the state — especially those that have not seen many coronavirus cases, such as in Southwest Virginia — have been urging the governor to reopen their areas since mid-April, emphasizing the loss of jobs and income in their localities.

Now that the first weekend is over, Smith said it’s probably going to be more like business as usual. Bristol closed State Street to allow pedestrians more room Saturday, but vehicle traffic returned Sunday, as did a smaller crowd of patrons, he said. Also, there’s rain in the forecast, which will keep a lot of people away.

Crump and her business partner, Beth Black, have had to make hard decisions, including the temporary closure of Mercantile and cutting staff members’ hours, but Crump says the past weekend may represent a turning point for her restaurants. “I think we’re only going forward,” she said. “I think Virginia is doing an excellent job toeing the line between its economy and being cautious.”

 

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