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Tag: Navy Region Mid-Atlantic

Navy Region Mid-Atlantic changes command

After serving as commander of the Navy Region Mid-Atlantic for a little over a year, Navy Rear Adm. Wesley “Wes” McCall finished his duties Wednesday and has been succeeded by Rear Adm. Carl A. Lahti.

As of Wednesday, Lahti now oversees 13 installations from Illinois to North Carolina and is stationed at the world’s largest Navy base, Naval Station Norfolk. According to a Navy spokesperson, McCall is retiring. He became the region’s commander in May 2023, after Vice Adm. Scott Gray received a promotion to lead the Navy Installations Command in Washington, D.C., last year. Gray was on hand during Wednesday’s ceremony at the Norfolk naval station.

A Buffalo, New York native, Lahti previously commanded the Naval Submarine Base New London in Connecticut, and he most recently was commander of the U.S. Naval Forces Japan/Navy Region Japan since 2021. He also was chief of staff at the Navy Installations Command, director of the Energy and Environmental Readiness Division and commandant of Naval District Washington, D.C.

Lahti is a 1989 graduate of the U.S. Naval Academy, where he received a bachelor’s degree in systems engineering, and also has degrees from the Naval Postgraduate School and the Naval War College. In 2005 and 2006, he served as an associate fellow with the chief of naval operations, where he studied alternative energy strategies for the Navy.

Executive insights

Virginia Business asked six Hampton Roads leaders to discuss how their organizations are contributing to the region’s success and meeting challenges such as workforce recruitment and inflation.

DAWN GLYNN

President and chief experience officer, Corporate Services Group, TowneBank, Suffolk

How are your customers responding to inflation and higher interest rates? 

After many years of historically low interest rates, we are all facing increases in the cost of financing for any loan tied to a variable interest rate and any new loan applications. With mortgage rates doubling in the last year, some are putting off plans to buy a home or refinance.

Households and businesses are squeezed as the cost of living rises for everything from housing and construction to goods and services. Remember that your banker is a ready resource to provide insight during these uncertain times. There may be opportunities you have not explored in your banking relationship that can reduce your overall expenses. In any economic climate, we can develop strategies for growth and a path to achieving all of your financial goals. 

What is on TowneBank’s plate for 2024?

TowneBank will continue our focus on the health of local businesses and the support of organizations that provide vital services to our community. We also are fortunate to be celebrating our 25th anniversary next year. It is a reflective time as we look back on 25 years of serving others and enriching lives, with the help of our Hampton Roads community that has grown along with us. We also look ahead to a bright future, imagining the economic prosperity and innovation that we will work hard to support in each market we serve over the next quarter century and beyond.

 

PAT DAVIS-HAGENS

Market president, Bon Secours Mercy Health, Hampton Roads, Suffolk

Bon Secours is building a new hospital in Suffolk — how is construction going?

Construction continues on Harbour View Hospital, which is scheduled to open in 2025.

The approximately $80 million, 98,000-square-foot hospital will adjoin the existing Bon Secours Health Center at Harbour View campus, creating the new hospital. This new, surgically focused hospital will include 18 medical/surgical beds and up to four operating rooms, serving as an extension of the services currently offered on the campus.

Currently, the Health Center at Harbour View includes an emergency department, outpatient imaging, outpatient lab services, an ambulatory surgery center and physician practices. These services are being expanded to include a hospital with inpatient beds and operating rooms.

While most surgeries performed here will be scheduled ahead of time, the benefit of expanding our existing facility is that patients presenting in the emergency department will have access to hospital services on-site, including surgery, when appropriate. Residents will be able to receive hospital and surgical care in the community in which they live, without the need to travel to another city.

Health care staffing was challenging even before the pandemic. How are you tackling the problem in Hampton Roads? 

We are committed to rewarding and recognizing our talented clinical teams through investments in our compensation and benefits offerings, to attract and retain the best health care workforce in the region.

We have vacancies, as do many other hospitals and health systems, as the health care industry as a whole continues to face staffing shortages, but [we are making] steady progress in our recruitment efforts. Specialty physicians that practice in niche or unique settings can tend to be more difficult to recruit … due to the high demand for them in areas like neurology, vascular and cardiology. In the last year, we’ve reduced registered nurse turnover by almost 30%.

 

 

REAR ADM. WES McCALL

Commander, Navy Region Mid-Atlantic, Norfolk

How is the Navy Region Mid-Atlantic doing in terms of recruiting and retaining civilian employees?

We are continuously looking for new talent to welcome into our workforce, and our opportunities are vast. From positions as a first responder in our police and fire programs to morale and welfare opportunities in child care and counseling, we have career opportunities for just about anyone.

More than anything, we are really focused on being an employer of choice for our workforce by offering competitive pay and development opportunities that allow for professional growth.

Can you give us an update on land you expect to lease commercially in the Hampton Roads area, including 400 acres at Oceana?

NAS Oceana continues to seek partnership opportunities for leasing several of its underutilized parcels of land to help meet infrastructure and mission requirement challenges throughout the installation.

We are reviewing the requirements for the 113-acre lot known as the Former Horse Stables. If requirements determine a new request for proposal should be issued for that parcel, it will be posted on the government’s System for Award Management. In addition, NAS Oceana is considering releasing several requests for interest for other underutilized parcels at the installation.

What regional community institutions do you hope the Navy can partner with more closely in coming years? 

The Port of Virginia is literally one of our next-door neighbors in Hampton Roads, and we are exploring opportunities with them for some shared wins. The local colleges and universities in the area provide us great opportunity to partner more with them as they graduate talent looking for long-term employment, particularly with law enforcement, child care, dispatchers and a host of other great employment opportunities within the Department of Navy.

 

BRIAN O. HEMPHILL

President, Old Dominion University, Norfolk

How do you expect the integration of Eastern Virginia Medical College into ODU to change the health care landscape in Hampton Roads, and is the merger on track?

Old Dominion University is deeply committed to addressing the health disparities that are facing our region and its people. With that goal in mind, in December 2021, ODU entered into a partnership with Eastern Virginia Medical School, as well as Sentara Health, to enhance health care, strengthen educational programs, bolster the workforce pipeline and expand research capabilities. Since that time, we have made significant progress in establishing an academic health sciences center.

Legislation that passed during the 2023 session calls for the integration to occur on Jan. 1, 2024. 

How is ODU’s $500 million capital campaign going, and what are the challenges of fundraising amid high inflation?

Last October, we boldly and proudly launched a campaign to change the trajectory of Old Dominion, especially the opportunities for our students. To date, we have secured more than $300 million in funding. We are on track to complete this important effort in record time.

What is the biggest challenge in making higher education accessible and relevant to students, and how is ODU meeting those goals? 

Old Dominion University adopted a new strategic plan earlier this year. In the plan, we have intentionally and thoughtfully outlined the innovative steps that we will take to ensure that we are meeting the needs of students now and well into the future. ODU has a reputation for access and opportunity; however, we are equally committed to achievement and excellence. For example, we have pledged to be flexible by pursuing scalable and stackable offerings and remain affordable by exploring alternate tuition models. 

 

TOI HUNTER

Vice president, business retention and expansion, Hampton Roads Alliance, Norfolk

You joined Hampton Roads Alliance in 2020. What has changed since then in how you are assisting businesses to remain and grow in the region?

In 2020, when COVID was at its height, manufacturers were concerned with sourcing labor and shoring up their supply chains, while the business services industry pivoted to remote work, and wage arbitrage played a significant role in the cost of human capital. Industrial warehouse space reached historic demands, and local governments have shouldered the impacts to permitting and managing public concerns. Now, I am listening for how business intelligence data may play a role in analyzing consumer behaviors and optimizing operations for the companies I assist. In addition, I keep in mind that companies need help with developing the business case for remote work by balancing lease rates for likely renovated office space occupied two to three days a week, along with quality-of-life attributes to attract or retain a workforce.

Which external factors have the most influence on business retention?

There are several factors that can impact business and employee retention. Often internal corporate strategy sets the stage for how the company chooses to operate (or not) in their existing location — whether that be a decision to automate operations or reduce their footprint in implementing a remote work strategy.

Access to affordable child care options, training programs and workforce housing are major factors in ensuring that the workforce has the support systems in place to create a competitive regional labor market.

I would encourage human resources managers and operations leaders to connect with their economic and workforce development partners. There are programs designed to lower the costs for hiring new employees and training incumbent workers. For gaps in the available programming, a meeting between businesses and economic development is an effective approach to shaping policies related to those external factors impacting business growth.

 

DAWN KENNEDY

CEO, Hampton Roads Realtors Association, Chesapeake

The residential market has seen higher prices and interest rates this year. What do you anticipate for 2024? 

I have learned from many Realtors and from observing the industry as a Realtor association CEO that the market is cyclical and often in 15- to 20-year cycles. I think the key point for sellers and buyers is perspective. The National Association of Realtors’ chief economist, Dr. Lawrence Yun, is predicting that mortgage rates will fall to 6% or under in 2024, and new home sales will increase.

For commercial real estate, what factors are most affecting industrial, office and retail markets in Hampton Roads?

One only needs to drive around to see all the new construction happening. The need for multifamily housing has only increased with a tight residential market. Industrial markets are very much impacted by all forms of local and state legislation, but overall this market is very strong in Hampton Roads. Demand is high, but supply can become an issue.

Retail appears stable. However, like everywhere else in the nation, office is still lagging; many people and companies have seen the benefits of working from home. However, compared to the national average office vacancy rate, Hampton Roads is doing incredibly well. We are not that far off from pre-pandemic rates.

Which external factors have the most influence on local real estate?

I believe the huge naval complex here in Hampton Roads most likely has the largest impact on the housing market. I have worked in another market with a large military base, Tinker Air Force [Base, outside] Oklahoma City … and the sheer volume of ancillary and primary jobs these bases bring to an area benefits its citizens and the housing market.

Transportation 2023: REAR ADM. WESLEY McCALL

McCall became the Navy’s mid-Atlantic commander in May after Rear Adm. Christopher “Scotty” Gray was promoted to lead the Navy Installations Command in Washington, D.C.

McCall previously commanded Navy Region Southeast, which includes operations in Kansas, Oklahoma, Texas and much of the Southeastern United States. He was based in Jacksonville, Florida, at its Naval Air Station. Now, he oversees 14 installations from Wisconsin to North Carolina and is stationed at the world’s largest Navy base, Naval Station Norfolk.

McCall was inspired to join the Navy after seeing the 1986 Tom Cruise film “Top Gun” and was nicknamed “Cowboy” after becoming a naval aviator in 1992, according to The Florida Times-Union. His operational assignments have included tours with helicopter squadrons and serving as helicopter operations officer for the Navy’s 5th Fleet area of operations, which includes the Middle East.

McCall, who also served as protocol officer for the chairman of the Joint Chiefs of Staff and commanding officer of Naval Station Mayport in Florida, became commander of Navy Region Southeast in April 2021.

Gray promoted from Navy Region Mid-Atlantic commander

After less than a year as the Norfolk-based commander of the Navy Region Mid-Atlantic, U.S. Navy Rear Adm. Christopher “Scotty” Gray is being promoted to lead the Navy Installations Command in Washington, D.C., pending U.S. Senate confirmation.

Gray, who will be promoted to vice admiral after approval by the Senate, was relieved by his successor, Rear Adm. Wesley McCall, during a ceremony in Norfolk on Friday, according to a Navy announcement. McCall previously commanded the Navy Region Southeast, which includes operations in Kansas, Oklahoma, Texas and much of the Southeastern United States. He was based in Jacksonville, Florida, at its Naval Air Station.

On June 30, 2022, Gray assumed command of the Navy Region Mid-Atlantic, which stretches from Wisconsin to North Carolina and includes 14 installations and nearly two dozen reserve outposts. A Virginia Beach native, he was stationed at the world’s largest Navy base, Naval Station Norfolk, where as many as 72,000 military, civilians and contractors work. He replaced Rear Adm. Charles “Chip” Rock, who commanded the mid-Atlantic region from 2018 to 2022.

U.S. Navy Rear Adm. Wesley McCall

If confirmed as commander of the Navy Installations Command (CNIC), Gray will be headquartered at the Washington Navy Yard in Washington, D.C., and will be responsible for all shore installations in all 11 Navy regions — including the mid-Atlantic. He will report to the chief of naval operations, Adm. Michael M. Gilday.

Vice Adm. Yancy Lindsey currently serves as commander of the Navy Installations Command, having assumed the job in May 2020.

Gray will likely have to wait a while for his Senate confirmation, as there is a backlog of senior military promotions in the legislative body, which is in a standoff over the Pentagon’s policy of covering travel and leave for troops seeking abortions.

McCall is a U.S. Naval Academy graduate with a bachelor’s degree in oceanography and holds a master of arts degree in national security and strategic studies from the Naval War College in Rhode Island. He was designated a naval aviator in 1992, and his operational assignments include tours with helicopter squadrons and serving as helicopter operations officer with the commander of U.S. Naval Forces Central Command/U.S. 5th Fleet. McCall, who also served as protocol officer for the chairman of the Joint Chiefs of Staff and commanding officer of Naval Station Mayport in Florida, became commander of Navy Region Southeast in April 2021.

Gray previously led the Navy’s Europe, Africa, Central region, based in Naples, Italy. He also was a naval flight officer and deployed on the aircraft carrier USS Dwight D. Eisenhower. Additionally, he commanded the Norfolk-based Carrier Airborne Early Warning Squadron 124. In addition to being responsible for as many as 90,000 active-duty personnel and 52,000 civilian employees, Gray was involved with Future Base Design, a plan launched in 2021 under which the Navy would lease desirable, underused land to private developers.

In a 2022 interview with Virginia Business, Gray said that he was working to make connections with Norfolk officials and find ways to benefit both the city and the base: “What I am communicating to them is: Let’s find ways to find win-win solutions to the problems that are facing the city and the problems that are facing the military.”

Coming home

As a kid growing up in Virginia Beach, “Scotty” Gray saw military aircraft so routinely that he wanted to become a pilot.

Today he is U.S. Navy Rear Adm. Christopher (still “Scotty”) Gray, commander of Navy Region Mid-Atlantic, where he oversees an area that stretches from Wisconsin to North Carolina and includes 14 installations — five in Hampton Roads — and nearly two dozen reserve outposts.

In Hampton Roads, Gray is responsible for as many as 90,000 active-duty personnel and another 52,000 civilian employees — as well as the world’s largest Navy base, Naval Station Norfolk, where as many as 72,000 military, civilians and contractors work.

He replaced Rear Adm. Charles “Chip” Rock, who retired in June. 

Gray’s most recent post was commanding the Navy’s Europe, Africa, Central region, based in Naples, Italy. He also was a naval flight officer and deployed on the aircraft carrier USS Dwight D. Eisenhower. Additionally, he commanded the Norfolk-based Carrier Airborne Early Warning Squadron 124.

A graduate of the University of South Florida and a former investment banker before receiving his commission as a naval flight officer in 1989, Gray says he was a true “beach kid” who spent a lot of time fishing and surfing in Sandbridge.

In August, he spoke to Virginia Business about the Navy’s efforts to recruit and retain civilian and military personnel, as well as Future Base Design, a plan launched last year under which the Navy would lease desirable, underused land to private developers. About 400 acres in Virginia Beach’s 7,000-acre Naval Air Station Oceana is the first property offered for leasing.

Virginia Business: What are your priorities for the Navy’s presence in Hampton Roads, and what are the main challenges you face?

Gray: The biggest thing is making sure we can just continue to do our business. Frankly, we’re struggling in many areas. Security is first and foremost for us, and the pandemic and the COVID environment has made it very challenging.

Our model is based on a certain number of military folks and a certain number of civilian guards and/or law enforcement officials. We’re just much too close to the edge, where it could be impactful for us. The primary challenge is the pay has not been very good. We’ve hired at a level that has been low, where we get some interest but not very good interest. … We’re just getting ready to go out and try and hire at a higher pay grade. I’m hopeful that we will attract a lot more interest.

I’m taking a much broader look at how we leverage our underutilized resources and assets that we have here across this region … so that we can reinvest in ourselves. The infrastructure is very old, and it’s challenging us and our ability to maintain it. We’re seeing increased numbers of power outages and utility failures. I’d say that’s probably my second priority, because the Navy has chosen to underfund the shore for the benefit of the combat forces.

VB: What are some ideas you have for the Future Base Design plan, in terms of leasable property or in-kind swaps?

Gray: We’ve got lots of opportunities here. Down Hampton Boulevard, there’s … the South Depot Annex. It’s a piece of property that we’ve owned for years, and it’s smack-dab in the middle of the Port of Virginia’s enclave there.

The Port of Virginia has expressed some interest in it because it is in the middle of its operation, and because it’s very valuable. It has a rail line into it, and it has warehouses that they could utilize. They have a piece of property that abuts the south end of Naval Station Norfolk. We could do a land swap. They could take those warehouses that are on that piece of property and build us a warehouse on the piece of property they have that abuts the south end, [and] they would get what they want. We would get some new warehouses and property that is adjacent to our existing structure, our base.

We’ve got the Lafayette River Annex. It’s just a beautiful piece of property on the water. We’ve got one headquarters there. I’d be perfectly willing to swap that to somebody, if they built me a five-story building on, or paid for some type of in-kind consideration on Naval Station Norfolk. I’d save all the expense of having to protect and operate a little separate enclave.

There’s St. Julien’s Creek Annex down in Chesapeake. We have some functions down there, but I don’t know that there [are] any that we couldn’t shift somewhere else — and that’s a lot of property on the waterfront that’s hard to come by these days.

I’m considering it all holistically, and we’re starting to talk to folks about all the potential opportunities, and we’ll begin to gauge interest. Where we find interest, we will look to pursue.

Gray (R) meets with Navy Region Mid-Atlantic staffers Capt. Daniel S. Bense, executive assistant (L), and Capt. Derek Adametz, program director of operations and public safety. Photo by Mark Rhodes

VB: Has there been any interest in the land at Oceana, which has been available since August 2021?

Gray: We’ve had some … consequential meetings with senior Navy folks, with the base, with some of the local military and community organizations. My impression is we’ve made some good progress. We have put out some requests for interest, which have received interest, which is encouraging.

Like anything that’s relatively new, especially when you have a large bureaucracy, the bureaucracy is resistant to change. You may get some new policy that says, ‘You can do this,’ but a lot of times [you’ve] got to go through many different stakeholders in the bureaucracy to get people to sign off on it — and what you find is resistance.

Those are the types of challenges that we face. If there’s one thing I would say that people would say about me, [it] is [that] I’m not afraid to bull through barriers.

VB: How have your conversations gone with local government and community stakeholders?

Gray: I’ve met with several local leaders, spoken to them in passing, [and] some of them in more than just collateral passing. I’ve attended a couple of local civic meetings. I’m still getting up to speed.

What I am communicating to them is: Let’s find ways to find win-win solutions to the problems that are facing the city and the problems that are facing the military.

I’ll give you a perfect example: If I have to buy enough trucks to plow snow here in Virginia Beach, where it only happens every now and again, then I’ve got millions and millions of dollars of equipment sitting around waiting for a contingency that may only happen a time or two a year. Why don’t I just make an agreement with the city to pay them a certain amount of money … to plow my streets on the base?

There [are] all kinds of opportunities like that. I could go down the list of probably 10 or 20 of those things.

VB: Retaining separating sailors to take skilled jobs is a huge goal locally, and this is a potential workforce for you. What efforts are being made by the Navy to keep veterans here?

Gray: First and foremost, I think we need to increase our agility and the ability to adjust to the market conditions, because we’re getting creamed at it right now.

Here’s another thing that on a broader scope that we need to take a look at: The state of North Carolina just passed a bill to make military retirement [pensions] untaxable. Well, guess what? North Carolina’s 50 miles from here. I know where I’m going — that’s a straight economic decision for me.

 

Va. Beach native to lead Navy Region Mid-Atlantic

The next commander of Navy Region Mid-Atlantic is a former naval flight officer and Virginia Beach native.

Rear Adm. Christopher “Scotty” Gray will take over for Rear Adm. Charles “Chip” Rock during a change of command ceremony scheduled at Naval Station Norfolk Thursday. Rock, who has commanded a region overseeing 14 naval installations and nearly two dozen reserve outposts from Wisconsin through North Carolina, including the world’s largest naval base in Norfolk, is retiring from the sea service after almost 35 years.

Gray has led the Naples, Italy-based Navy Region Europe, Africa, Central since May 2020, where he was responsible for nine installations as well as other locations stretching from the Atlantic Ocean to the Arabian Gulf, and from Northern Europe to Africa. He graduated from the University of South Florida with a bachelor’s degree in international relations in 1988 and worked as an investment banker before receiving his commission through the Navy’s Aviation Officer Candidate Program. Gray earned his wings of gold in June 1990, becoming a naval flight officer on the E-2C Hawkeye, the Navy’s early warning, carrier-based tactical aircraft.

Gray’s sea duties have included assignments with several Carrier Airborne Early Warning Squadrons (VAW) as well as commanding officer of Norfolk-based VAW 124 before reporting as the operations officer aboard the aircraft carrier USS Dwight D. Eisenhower for back-to-back deployments to the Arabian Gulf during Operation Enduring Freedom. He has more than 500 carrier-arrested landings and 2,800 flight hours in tactical aircraft. On shore, he has also served as a military legislative assistant to the House Appropriations Military Construction Subcommittee; legislative affairs officer to U.S. Central Command; plans director at Navy Warfare Development Command; commanding officer of Naval Support Activity Naples, in Italy; chief of staff at Navy Region Southeast;  commanding officer, Naval Station Guantanamo Bay, Cuba, executive assistant to the Assistant Secretary of the Navy for Energy, Installations and Environment, and chief of staff for Navy Installations Command. Before his most recent position, Gray commanded the Silverdale, Washington-based Navy Region Northwest from June 2018 to March 2020.

Among Gray’s multiple honors are four Legion of Merit awards and the Air Medal with Combat “V” denoting valor.

Rock has commanded Navy Region Mid-Atlantic since July 2018, presiding over challenges including investigations into complaints of substandard military housing and the COVID-19 pandemic. In a first, the Navy struck an economic development deal with Virginia Beach in summer 2021 to lease land on Naval Air Station Oceana to private business for in-kind services. 

In fiscal 2020, the Navy accounted for $15.8 billion in direct local spending in Hampton Roads, down about $650 million from the previous year. Nearly 90,000 active-duty Navy and Marine Corps personnel serve in Hampton Roads alongside 52,000 civilians and contractors. Rock is a member of the Virginia Council on the Interstate Compact on Educational Opportunity for Military Children and serves on the board of the Hampton Roads Chamber of Commerce.