Q&A Archives - Virginia Business

If it ain’t broke, don’t fix it

Khalid Jones moved to Richmond from New York City’s Upper West Side in April to start his new job as executive director of the Virginia Lottery.

Virginia’s River City may move at a slightly slower pace than the city that never sleeps, but Jones found himself instantly at home. Richmond reminds Jones of his youth spent in Little Rock, Arkansas. Both cities are capitals; both are divided by rivers.

In the 1990s, Little Rock had a lot going on, Jones will tell you. It’s the headquarters of Stephens, one of the largest investment banks outside Wall Street, and of course it’s where Bill Clinton as Arkansas governor launched his successful 1992 presidential bid. People who made something of themselves there, Jones says, could make it anywhere.

When Jones visited family in New York’s Queens borough in the summers, they would pepper him with questions about his life in the South. He got the feeling that they didn’t see Little Rock as a bustling hive of activity like he did.

Today when people from out of state ask Jones about his new life in Richmond, he similarly wonders if they’re discounting the city. He wonders if they know that Virginia is a technology hotbed and whether they’re aware the Virginia Lottery in particular has embraced innovation with open arms.

Jones takes the wheel at the Virginia Lottery at an interesting time in the agency’s history. On one hand, for fiscal 2023, the lottery made a record $867 million in profits and $4.6 billion in sales. On the other hand, a coalition of lottery retailers protested Gov. Glenn Youngkin’s proposal of higher taxes and tougher regulations on convenience store skill game machines by refusing to sell Virginia Lottery tickets on April 15, a ploy repeated a few days in May. The governor said in mid-May he would continue to work with state lawmakers to come to an agreement on a skill games bill, ending the protest.

Even in less tumultuous times, running the agency is a big job. In addition to managing the lottery, Jones also oversees licensing and regulation of the state’s nascent online sports wagering and casino gaming industries.

After graduating from Wake Forest University and Stanford Law School, Jones spent nearly a decade at different law firms, specializing in defending financial institutions in large-scale government investigations.

He then decided he’d rather be paid by the idea than by the hour, and became a managing partner at SourceRock Partners, an investment firm focusing on real estate, media, sports and technology. In 2015, Jones co-founded Echo Fox, a now-dissolved esports organization, with actor and former NBA player Rick Fox.

Through his investments in Echo Fox and other gaming businesses, Jones developed a relationship with the Arizona State Lottery and helped to build that lottery’s Ultimate Playlist, a free-to-play, promotional mobile app.

In 2020, Jones co-founded the Kolier Group, a business consulting firm that counted the Multi-State Lottery Association, Paramount Global and Universal Music Group among its clients. A year later, Jones also took on a role as a partner at All American Licensing, which, among its other services, develops merchandising programs for brands like Powertown Wrestling and the Smithsonian Institution.

In an April interview with Virginia Business, Jones talked about how he expects his varied work experiences will pay off in his new position heading the Virginia Lottery.

Virginia Business: How does someone get hired to lead a state lottery? It’s not the kind of job where you fill out an application on your computer, is it?

Khalid Jones: I think my career path, it took me to a point where I developed some of the relevant skills unwittingly. Around 2019, a business partner of mine had a relationship with … Gregg Edgar [then executive director of the Arizona State Lottery], and we started talking. He was really interested in innovation at that point in time.

In my investment company [SourceRock Partners], we had made some investments in the digital space, in the gaming space, and so we had started to develop an expertise there, not in lotteries specifically. [Edgar] saw a lot of crossover between what was happening in the digital space and what the future of the lottery would look like.

Through working with [Edgar] … [I] started having a more formal working relationship with the Arizona Lottery that blossomed into a working relationship with the [Multi-State Lottery Association]. … Over the course of five years, [I became an industry expert,] finding mentors like him … and [by] having a broad lens on what was happening in the industry nationwide and even worldwide, [by] looking at trends and speaking at conferences, [by] making myself educated and really just diving in with both feet and exploring the broad tapestry that the lottery is, especially from the standpoint of beneficiaries.

One of the questions during [the Virginia Lottery hiring] process [was], “Well, why is this something that you want to do?”

I [said] quite flatly, “I’ve never had a job before, and I’m not going to ever have a job again where I can realistically say I have a goal of putting a billion dollars back into public education.”

It’s just a lofty thing to be able to say. Unless you’re Jeff Bezos, if you just write the check yourself, no one can realistically say that. That’s what I go to work every day trying to do.

[But] there’s really no application [to be lottery director]. You put your foot forward in the industry and you help out in the ways that you can. And in this scenario, there were some folks who thought that this might be something that I was both interested in and capable of, and [I] went through the process, and I was fortunate that the governor agreed.

VB: What goals do you have for your first year as the lottery’s director?

While he’s focused on continuing the lottery’s successful record, Jones also hopes to innovate, saying he could see the lottery pursuing targeted entertainment brand licensing agreements for games on its online iLottery platform. Photo by Shandell Taylor

Jones: You walk in, and you have things that you want to accomplish, but whatever you want to accomplish … when you have success that precedes you, your first mission should be to come in and learn, acclimate, ask questions and make sure that you’re buttressing the success that’s come before you.

The phrase I’ve been using is, “I’m not going to come in and start turning all the knobs.” The first order of business is to look in the past, and the lottery had a lot of success that came before me. … Obviously, my main goal is to make sure we’re maximizing the dollars that get sent back to K-12 public education.

I would say my secondary goal is … I want to make sure that the Virginia Lottery is always at the forefront of innovation and that we are leaders in this field.

VB: What future innovations are in store at the Virginia Lottery?

Jones: [There are] a couple things. So, the first is thinking about our online growth. The Virginia online lottery is the largest in the nation. It’s grown the fastest in the nation. At some point in time, that growth curve will flatten. Innovation looks like one of the techniques that we can use to ensure that that growth [curve flattens] as slowly as possible.

And then also, retail, for the sales side of the lottery, is always the backbone. … As the online lottery continues to progress, [the Virginia Lottery must ensure] that we’re bringing the retailers along with that experience, so using innovation to continuously connect those experiences between online and offline.

The casinos and the online sports games, they’re built on technology. Technology drives what they do. Technology has to drive what we do from a regulatory standpoint, so we don’t get left back. … We will at some point in time be convening an AI task force within the lottery. How do we use that tool? How do we use it responsibly?

We just attended a problem gambling task force meeting this past week, and we talked pretty extensively about the ways that in the future technology will be used to support that function as well, because that’s something that’s very, very, very important to us here.

VB: The Virginia Lottery, like the Virginia Alcoholic Beverage Control Authority, differs from other state agencies in that it operates more like a business than a government entity. How do you handle that?

Jones: That’s true. You obviously have to think like a business but have the responsibility of the government as well. Fortunately, you’re given some leeway to do that. We can market. We can advertise. … I think that you have to take your business hat and put it on real snug.

I think a lot of times there’s areas of government where the best answer is the one that’s always the safest answer. We’re not in that position. We’re in a position where we have to be strong in the marketplace, come up with ideas.

VB: How will your experience in law, licensing and consulting help the lottery grow?

Jones: I have a background in law and defending regulated entities. I’ve obviously never been in a casino or a gaming regulatory posture, but [I understand] the mindset of those who are regulated. It really is not the posture that you’re coming in and lifting under every rug and trying to find a violation. That’s not our role. The role is to ensure the safety and fairness of the players and ensure that the operators are following the rules. At the end of the day, it’s really undergirding the integrity of the system as a whole.

The relationship should always be one where they understand that we’re not there to be primarily punitive; we’re there primarily to be protective of both the players … [and] them as well because we don’t want a bunch of operators not following the law.

I think I draw a lot from what I’ve seen in the industry as a whole. Obviously, my background with doing some of the licensing matters. [That] will help bring partnerships. I think that the way that lottery partners with outside industry could be enhanced and can be increased. That’s something that I’ll want to do almost immediately and bring to bear some relationships that I have.

Last year, [the lottery] had record sales, record growth. This year, fingers crossed, we’ll be able to do the same. There are professionals that have been in this building for a really long time that have been doing an excellent, excellent job.

The analogy I’ve been using internally is if you take over the head coaching job of the Kansas City Chiefs, you’re not going to start telling Patrick Mahomes how to throw the ball.

This really is for me one agency. It really is. We don’t have this agency, and that’s the lottery, and that agency, and that’s gaming/regulatory compliance. There is much more crossover to me in terms of mindset, whether it’s technology, whether it’s learning from others, whether it’s ideas, whether it is taking a leadership position in all that we do that I apply across the business lines.

VB: What does partnering with industry look like?

Jones: For example, right now the lottery has in market a Willy Wonka ticket. That’s an example of a licensing agreement that would happen. I’ve got some ideas on different ways we can do that to maximize profitability, maybe bring different partners in.

You don’t want the liability that you printed a bunch of tickets and they went out and nobody bought the tickets. Well, through our iLottery platform, we obviously don’t print tickets. Maybe there’s an opportunity to work with more niche partners or work with larger partners for very specified items.

I’m not promising this, but this is an example: You have the opportunity to work with a movie studio, let’s say. In the previous world, you would have to say, “All right, I’m going to work with this movie studio, we’re going to find a great property, we’re going to print X number of millions of tickets and market the hell out of it, and we’re going to cross our fingers.” Maybe there’s an opportunity to work with that same studio and say, “Can we do something smaller and more frequently, but for something really cool? Can we have someone win a role in your next movie that comes out of the studio?” Maybe that’s something that we could have … that’s recurring and that players know that it’s really cool and it’s going to come. We do it through our iLottery platform, our online platform, and therefore, we don’t have as much liability of printing tickets.

VB: On two occasions this spring, a coalition of lottery retailers temporarily stopped selling lottery tickets to protest Gov. Glenn Youngkin’s proposed changes to a Virginia bill on skill games, which included capping the number of machines allowed statewide. How does that impact the Virginia Lottery’s relationship with those retailers?

Jones: I know that that’s been an issue that’s been ongoing before I got here. I think it’s finding a way to, first of all, have a conversation. We absolutely take no position on the skill games themselves, but we obviously are going to support our retailers in any way we can, both before and after. I think that’s a large chunk of that answer.

Potentially, we would have to regulate the skill games as well, which makes us a part of their business in that sense from a regulatory standpoint. We’ll be with them no matter what. We’ll continue to build those relationships. They’ll continue to know how important that they are to us.

VB: Virginia Lottery’s branding has stayed fairly consistent since it launched in the late 1980s, even though the agency has recently taken on new responsibilities like regulating casinos. Do you plan to change up any of that branding?

Jones: “Stay tuned” maybe is the answer.

VB: Is there anything else you want Virginians to know about the change in leadership at the lottery?

Jones: It’s not surprising that Virginia Lottery sits where it’s at. I feel really fortunate to come into this. This is not a reclamation project. It’s not a rebuilding project. This is not anything like that. We get to ride a stallion that’s in full gallop and just making sure that it continues on that.

Under new management

Washington Commanders fans did everything but sing “Ding-Dong! The Witch Is Dead” during the team’s Sept. 10 season opening game.

It felt like a new day as the NFL team came away with a win against the Arizona Cardinals. FedEx Field was sold out, and the stands were packed with local fans instead of supporters of the opposing team, an irritating trend over the past decade-plus.

The reason, of course, was the team’s new ownership as of July. The Commanders’ unpopular former owner, Daniel Snyder, offloaded the team for a record-breaking $6.05 billion to a group led by Chevy Chase, Maryland, native Josh Harris, who assembled 20 investors, including NBA Hall of Famer Magic Johnson. The billionaire investor is now the Ashburn-based NFL team’s primary owner — a relief to many beleaguered fans.

The sale came after a long, ignominious history of mediocre-to-worse win-loss records, a revolving door of quarterbacks and coaches, alleged interference and retaliation by Snyder, and — most seriously — two NFL investigations of alleged sexual harassment against female employees and findings of a “toxic work culture” in a U.S. House of Representatives report in 2022.

Last year, amid congressional scrutiny of Snyder’s team, Northern Virginia state legislators rescinded their offer of economic incentives to bring a future Commanders football stadium to the commonwealth. (See related story.) Another team owner said it may be time for Snyder to sell, breaking the traditional code of silence among NFL owners.

And even those problems didn’t touch the sheer magnitude of local distaste for Snyder, who bought the Super Bowl-winning team in 1999 and saw its attendance decline from perennially sold-out games to the lowest numbers in the NFL, as well as a dearth of post-season wins.

Exorbitant parking fees, 9/11 commemorative Redskins baseball caps sold at a profit, Snyder’s lawsuits against 125 fans who tried to back out of season ticket purchases and much more all added to the sense of insult.

It’s no wonder fans at the Sept. 10 game chanted “Thank you!” to majority owner Harris, who co-founded the private equity firm Apollo Global Management and whose net worth is estimated between $6.9 billion and $8.6 billion.

In addition to the Commanders, Harris is principal owner of the Philadelphia 76ers NBA team and the NHL’s New Jersey Devils, as well as a general partner of the Crystal Palace English football club. His home base is in Miami, where he and his wife, Marjorie, live with the two youngest of their five children. They also spend some of the year in New York City.

Last year, Harris’ investment group put in a bid for the Denver Broncos NFL team and lost out to a group led by Walmart heir Rob Walton. But in an interview with Virginia Business on the Friday preceding the start of the 2023 NFL season, Harris says he considers the failed bid a blessing, because he was able to purchase the Commanders, his favorite pro football team while he was growing up.

Virginia Business: When did you first seriously consider buying the Commanders?

Josh Harris: Really, it was a sales process. Dan himself hired a banker and there was a process. We got a call, and that was probably in the fall of last year. Certainly, we’re well known in the sports community, obviously, so generally speaking, the intermediaries, the banks — Bank of America in this case — knew we were out there, contacted our people, and then eventually I spoke with the Snyder family.

VB: It sounds like you have pretty solid ideas of what role you’re meant to take as owner, and where to let coaches and players handle things themselves. How did you learn those lessons?

Harris: Obviously, I’ve owned the Philadelphia 76ers since 2011 and a number of other sports franchises — the [New Jersey] Devils since 2013, Crystal Palace since 2015.

It’s been experiential learning, on-the-job training, if you will, but also, it’s just common sense. But in sports, because fans [are] so focused on all the details and because everyone is such a great fan of the sport, sometimes owners who are fans come in and they want to make a lot of decisions. But it’s like every other career.

Ultimately, the years of learning that a coach might have dealing with 53 men, 53 individuals, and how to make a system work — if [owners] don’t defer to that [experience], that would probably not be common sense. Sometimes people don’t.

VB: With sports, people do have strong emotions and yell at the TV screen to change quarterbacks or strategies. Is that a temptation you have to fight?

Harris: Yes. Listen, I’ll go the other way. Just because I’m only a fan that’s recently become an owner of the Washington Commanders, it doesn’t mean that you’re not entitled to have opinions, it doesn’t mean that you might not see something that a coach might not.

I’ve sat on the floor for the last 11 years for NBA basketball. I have an opinion on how we should play, and I have opinions on some things that I see, but generally, I will voice those in a constructive way at the right time quietly.

You’re allowed to be involved, and you should be involved. If you see something you don’t like and you’re the owner of a franchise, it’s almost on you to bring it up and say, “What about this? What about that?” At the same time, I think you have to recognize that other people might have more experience than you do. It’s finding that balance, and everyone is different.

VB: A congressional report said the Commanders had a “toxic work culture” under Snyder’s leadership. What are your responsibilities for improving and maintaining the team’s culture as its new owner?

Harris: The thing about sports franchises — unlike companies generally — is that they’re public assets; they’re public trusts. I want to create a franchise that my kids are proud of, and the city is proud of and I’m proud of. I think everything, ultimately, is my responsibility. I spend many sleepless nights thinking about making sure that everything is going to go right. I think that extends to how people are treated inside the organization, how employees are treated, how they act with one another, how fans are treated, how all the stakeholders, players and coaches are treated. It’s a village, so what I have to do is set the tone and then hold people accountable.

VB: How did the process of buying the Commanders differ from bidding for the Denver Broncos?

Harris: It was different personally for me. I think I was blessed in some sense to not buy the Broncos.

Obviously, this is where I grew up, and it was emotional for me, and I’ll never forget when I walked into FedEx Field and I saw the pictures. I have an investment team that I’ve been involved with [for] a lot of this stuff. You have a whole team that shows up with you [when] we were given a couple days to do due diligence.

We came into the stadium and my team saw me marveling at the pictures of the legends and Super Bowl trophies, and they were like, “This is different. You’re acting differently.” I’m not an emotional person as an investor. I try to be quite clinical about it, but clearly, I was emotional about it, and that was very different for me personally.

VB: Speaking of stadiums, what do you consider important attributes for a new stadium?

Harris: I start with football and I branch out. When an opposing team walks into our stadium, I want them to not want to be there. When I was talking to [former Dallas Cowboys quarterback] Troy Aikman on “Monday Night Football,” he’s a guy who didn’t like to play [at] RFK. On the other hand, I want our team to feel excited. The noise level, how you set it up, the crowd engagement and focus, all that’s good.

Then you get to fan experience, which is a really broad concept, but accessibility really matters, whether it’s being on … Metro, whether it’s a close drive, ingress and egress parking, all that stuff. We want people to get in, get out, have a great time. The Washington DMV fan base does extend deep into Virginia; it extends into Maryland.

Not everyone is going to have the same accessibility, but certainly having it on a rail system would be a massive plus. Having it close to most of the fans, [being] able to get in and out [of] major highway systems, all that actually really matters, all those logistics.

Then it’s about economic development, and how you help a community economically. I mean, we built a practice facility [for the 76ers] in Camden, [New Jersey], which is a tough city. We run Prudential Center in Newark. We’re building a center in Philly in an area that needs help, and … we’re using trade. If we are allowed to go forward in Philly [with a new arena], we’re going to use contractors from diverse backgrounds, which is probably slightly different than what’s happened in the past.

All that stuff plays into it.

VB: Under the team’s previous ownership, two possible stadium locations were designated in Loudoun and Prince William counties. What’s the status on those?

Harris: We’re literally just starting at the beginning. We’re at the very beginning of thinking about what we want, versus the sites.

VB: You grew up in the area. What was your relationship to the team?

Harris: My relationship with the team was really deep. There’s a picture of me that someone dredged up wearing a [1970s Washington quarterback] Billy Kilmer uniform when I was like 10 years old. I was a huge fan, and I never in my wildest dreams thought I might own the Commanders. I went to RFK once or twice a season. It was a 25-year waiting list to get [season] tickets.

I have two really early memories as a child. One is walking down East Capitol Street and then walking into RFK and hearing … all the noise and looking up at Jack Kent Cooke’s owner’s box, and my dad saying, “That’s the owner,” and me saying, “Wow.”

VB: The team’s name has changed twice in the last few years. What’s your timeline for thinking about the name?

Harris: We’re really focused right now, honestly, on limiting distraction. We’re focused on getting the stadium ready, and I’m doing tons of meetings everywhere in the city to engage with everyone. I’m not really thinking about [the name] right now.

VB: You have 20 people in your investment group, including Magic Johnson. What do they bring to the table?

Harris: Look, the reality of an NFL franchise is that it’s expensive, and so it’s hard to participate unless you’ve had tremendous success. We have people that have D.C. backgrounds that are super-engaged charitably in the community. We have a lot of diversity in the group. Then we have amazing business builders, real estate people. Honestly, Eric Schmidt is in our group. Can you imagine I [brought in] one of the founders of Google? Obviously, Mitch [Rales] built Danaher, a storied business. When I left Apollo and I was considering what to do, I was trying to find people that I could talk to, and I sought out Mitch because I said, “Wow, this guy built Danaher, [a] $200 billion company,” and by the way, D.C.’s biggest company. As far as professional athletes, [there’s] Magic Johnson.

VB: Is Magic on your text chain? What’s he like?

Harris: Yes. Magic, I would say, he’s incredibly charismatic, an amazing motivator. I’m motivated when I speak to him. He’s won five NBA titles with the Lakers, and then five other titles with other sports, and he’s built an incredible business. He’s an amazing speaker. He can relate to a businessman, and then he can relate to the players, and he can relate to a 10-year-old at a boys’ club.

He has an amazing way of connecting with people, and he’s a humble person. I think for him to be humble, he’s a great example for me because he’s achieved so much in his life and he’s someone that I want to emulate. … By the way, the other thing I like about Magic, and we share this, is that he’s a religious person. He believes that there’s a greater force. For all of us who’ve achieved some luck and been blessed in our life, I think personally it really helps me, and it’s something I really relate to.

VB: Let’s look ahead five years. What will need to be in place for you to consider this purchase a success?

Harris: I think that we’re going to need to have improved the fan experience to a great extent. That would mean improving the existing FedEx Field and [making] substantial progress towards a new stadium. In five years, I would hope that we would be a perennial playoff team. I’d say in five years I would want to see the arena selling out on a consistent basis and the team being supported, and I want us to be more deeply engaged in the community.

VB: The Sixers had a big rebuilding period under your ownership. Do you think the Commanders could benefit from a similar rebuilding that was high-risk, high-reward?

Harris: I think they’re totally different. Obviously, when you engage in a rebuild as we did in Philly, we wanted to be a championship-contending team. We rebuilt the team, and it worked. We haven’t won an NBA championship, obviously, but we’re perennial contenders every year right now.

I think the Commanders’ situation is totally different than that. Look, I think that we have a great young team. We don’t have an aged team. I’d say that so far I really like what I see in the coaching staff. I think [Head Coach] Ron [Rivera] is a good man. We have real areas of strength on the team. I think the answers to what we do and what we think will become apparent as this season plays out.

VB: I saw a picture recently of you and Virginia Gov. Glenn Youngkin at the Commanders’ Ashburn facility. He was previously co-CEO of the Carlyle Group, so how long have you known each other?

Harris: I’ve known him for many years. We were in the same business. We competed, but … I always had great respect for Glenn. He was always just a really nice person and a decent human being. Even though we were competitors, we were kind of friendly competitors.

VB: Does that have any bearing on where you would decide to put the stadium?

Harris: Look, I have to actually think about the city. Having a relationship of trust always matters in every situation, but, obviously, we’re going to do what’s right for the DMV. There is a “V” in DMV.

RELATED STORY: Virginia’s back in game to score Commanders stadium

Talking telework

SHAWN AVERY

President and CEO, Hampton Roads Workforce Council, Norfolk

Prior to the pandemic, did Hampton Roads Workforce Council allow hybrid or remote work?

We allowed employees to occasionally work remotely [due to] extenuating circumstances, such as car trouble, sick family members, etc.

What is your policy today, and how is it working?

Last year, we implemented a 4 ½-day workweek, plus a two-hour-a-week flex-time policy — closing all offices a half day on Friday. [We are] currently evaluating whether additional adjustments are possible.

What challenges do you foresee with remote/hybrid work among your staff?

Some of our positions are based in career centers where they work directly with job seekers. The Workforce Council also has robust, mobile outreach programming where team members work from a variety of places, including libraries and coffee shops. Lastly, the council has multiple administrative teams that work predominantly in nondirect roles. This complexity requires a flexible approach to remote/hybrid scheduling to ensure that the needs of both the community and our employees [can] be met.

What trends are you seeing among partner businesses?

Industries that are more focused on the traditional trades like shipbuilding and ship repair, manufacturing, construction, health care and the hospitality industry cannot typically accommodate a remote workforce. Consequently, those employers have had to increase wage rates to maintain and attract workers. … Ultimately, all industries have had to become more creative in how they onboard and communicate with new employees to remain competitive in their respective fields. From what we are seeing locally, as well as nationally, hybrid scheduling seems to be the new standard.

AMY BRODERICK

Senior vice president, Cushman & Wakefield | Thalhimer, Glen Allen

What trends have you seen in commercial real estate due to remote and hybrid work?

Many companies are able to downsize their office footprint due to remote work, but because their business is still thriving, they don’t necessarily have to cut costs. In these scenarios, they are relocating to higher-quality, more desirable properties.

How has hybrid or remote work changed your day-to-day worklife?

If at all possible, I like to arrange property showings for Tuesday through Thursday. Office buildings tend to be more active and, as a result, more welcoming during the middle of the week. … I’m thinking about how we can improve these properties … to make a return to office more attractive for current tenants, prospective tenants and their employees. … Our office stock in Richmond is dated, and between the costs of construction and the limited rent growth here, a plethora of new construction is not on the horizon. … ‘Spec suites’ are a part of the conversation with many landlords. These are office suites that are move-in ready, with fresh paint and new flooring, and they are sometimes furnished. … In Richmond, a lot of property owners are hesitant [to make improvements] due to the cost. For tenants, many have shortened their timeline to occupancy and so waiting months for permitting and build-out isn’t feasible. … Landlords also need to consider that they may be competing for tenants with a sublease.

Is an office real estate “apocalypse” ahead, as some experts have warned?

I don’t foresee an apocalypse — at least not in Richmond. … There is still more vacancy to come. There are still companies expanding as well, so it will just take some time for the office needs of the community as a whole to balance out.

KATE ELLIS

General manager, Hotel Indigo Old Town Alexandria; Chairperson, Visit Alexandria Board of Governors, Alexandria

How do area hoteliers view the shift to more hybrid and remote work?

Our key is to focus on what is, not what was, and what we see is that hybrid and remote is driving the need for business, government and association managers to meet in small groups to strategize. … So, as Alexandria hoteliers, we’re all focused on how we can share this beautiful small city and make our spaces and amenities fun and exceptional. We want people to come here, collaborate on their best work and then go home and tell their friends how great it was. They’re our secret sales force.

What challenges do hybrid and remote work create for the hospitality industry?

Our biggest challenge has most likely been the compression of the planning window. We get calls from meeting planners sometimes with just a week’s notice. And because workers are now meeting less frequently in person in an office, they need to do more high-value work in our hotels.

How has hybrid work shifted the type of traveler you see, as well as their meeting needs?

We’re seeing more local and regional guests. That’s a function both of hybrid work and a desire to meet in locations that are easy to get to. In terms of the experience, again, it’s as much about what happens outside the meeting room as in. Everyone already has state-of-the-art hybrid meeting space in their office, but what sets an organization apart is a meeting that reflects the personality of your organization, that everyone remembers and authentically connects you to the place in which you meet.

SUZANNE GARDNER

Sales operations manager, Kopis, Blacksburg

How did you become a fully remote worker?

My personal life brought me to the [New River Valley] this summer, which led to a conversation about full-time remote work with [Greenville, South Carolina-based tech company] Kopis. They were incredibly accepting of the idea and were willing to provide anything I needed to get settled and be successful remotely.

What are the positives in working remotely?

I save money by not commuting or eating out for lunch. I don’t feel inclined to work late at the office, and I’m able to manage household chores throughout the day without sacrificing time in the evenings. I also have an incredibly clingy golden retriever who is a fan of midday walks on the Huckleberry Trail.

What are the challenges?

When I have been in the office, organic conversations with colleagues have always been a good way to build trust and rapport. Being remote, I have to make a conscious effort to ensure that I am touching base with my team throughout the day.

How have you connected with the broader community to find connections?

Even before I relocated to Virginia, I was searching online to see where I could get plugged in to meet people and get involved once I got here. … I reached out to several people through the Get2KnowNoke partnership in Roanoke and set up coffee meetings with them to connect and learn more about Roanoke. I got involved with Blacksburg Young Professionals and signed up for happy hours. Lastly, I was able to find the Roanoke-Blacksburg Technical Council and joined their Women in Technology group and signed up for their luncheons and networking events. … People want to see you succeed, especially when they know you are new, have a skillset and want to get plugged in.

REBECCA GELLER

President and CEO, The Geller Law Group, Fairfax County

Why did you establish your law firm as a remote workplace?

While working as an attorney in a large law firm, I saw brilliant women fleeing the profession because firm partners showed utter disregard for attorneys’ lives outside the firm. … As the mom of a baby and a toddler in 2011, I knew there had to be a better way to run a law firm that enabled women to be moms and successful lawyers, but I didn’t see an alternative model in existence, so I created one. … The Geller Law Group has grown to 33 women with 37 children among us, and the average age is 6 years old. Our kids get to grow up seeing their parents do work they care about while also being actively involved parents.

Prior to the pandemic, what were the biggest obstacles with remote work that your firm faced?

We have learned over the years that not everyone is successful in a remote work environment. Some people lack the technical skills, while others are better suited for an in-person team environment. … If someone is not suited for our workstyle, we both typically figure it out quickly.

The firm has offices in Fairfax and Washington, D.C. Why did you establish those offices, and how do your employees use them?

We … have office space for in-person meetings with clients, partners or other firm attorneys and team meetings/events. We also utilize the offices for notary services and document signings with our clients. Our administrative team regularly works in the office to handle tasks requiring a lot of paperwork and filings.

MICHELE LEWANE

CEO, founder and lead attorney, Injured Workers Law Firm, Henrico County

When did your firm go back to the office 100%?

June 2020. … We had some staff alternate days [that] they came in so it wasn’t all at once. … By September 2020, everyone was back in office.

What prompted the firm to go back to the office full time?

Basically, many of us were longing for collaboration so we started going back to the office. We wore masks and were socially distanced. About a third of the positions needed to be in the office since the jobs required organizing and scanning medical documents. One individual had health issues and decided to continue to work from home for over a year.

Did the firm previously allow hybrid or remote work outside of COVID-related closures?

We have one remote worker who lives in Ohio. She has worked remotely for 12 years. She was an awesome employee and when her family moved back to her hometown in Ohio, we couldn’t [bear] to see her leave, so we created a remote position for her that worked and continues to work wonderfully.

How has being back in the office affected the firm?

We now see clients in the office, which is very different since we had been doing hearings and mediations and deposition via Webex or Zoom. … There has [been] a very slight issue with recruitment if individuals solely want to work from home, but we haven’t seen it much. Most of our clients prefer the convenience of not traveling to the office so they do not mind phone/Zoom appointments throughout their case.

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Top of the class

In April, David Doré started his new job as Virginia Community College System chancellor, stepping into the shoes of the retired Glenn DuBois, who held the position for 21 years.

A Pennsylvania native who once considered becoming a Jesuit priest, Doré is a former high school teacher who once took his students to meet PBS icon Mister Rogers on a field trip. He joins the college system at a time when it’s under a bright spotlight.

The search for DuBois’ replacement took on a political tenor after Gov. Glenn Youngkin objected to being left out of the hiring process last year, when the state community college board announced it had hired a Michigan college president as VCCS chancellor. However, Russell Kavalhuna backed out last June, leaving a vacancy.

Doré, who most recently was president of campuses and executive vice chancellor for student experience and workforce development at Tucson, Arizona-based Pima Community College, was hired in January with the vocal support of Youngkin, who has promoted workforce education programs run through the state’s community colleges as a solution to skilled labor shortages.

With 23 colleges and nearly 150,000 students under his purview, Doré quickly got started visiting each college in his first weeks on the job. In June, having finished his tour, Doré sat down for an interview with Virginia Business at VCCS’ headquarters in Chesterfield County.

In August, Doré plans to roll out VCCS’ legislative agenda during his chancellor’s retreat to an audience that will likely include Youngkin and other state officials.

Doré says that he believes in the system’s role in creating more opportunities, especially for people in economically disadvantaged areas of the state. One of his chief goals, too, is to see that all Virginia high school students graduate with a community college credential under their belts, whether it’s a marketable job certification or a credit that transfers toward their bachelor’s degree.

Doré and his husband, Chauncey Roach, a Veterans Affairs nurse who served in the Air Force, live in Richmond with their dog, Riley, and enjoy running in the city’s parks.

Virginia Business: How does VCCS compare with other community college systems?

David Doré: I was somewhat familiar with this system, and there were a couple of items that really stood out for me.

One is that the Virginia Community College System had initiated … FastForward, which is a short-term, noncredit credential program that was very well-known throughout the country. I think that was one of the first impressions that I had, that this was a forward-thinking system.

I’ve served 27 years in the community college sector. I spent the majority of that time in the California community college system, where the community college districts are independent. Even though there is a chancellor, the presidents don’t report to the chancellor.

Then I spent about 10 years in Arizona, and those are independent districts. What really attracted me about this position was that the 23 colleges are one system. I think it provides an opportunity for alignment across the entire commonwealth of Virginia, particularly with the needs of business and industry.

VB: As far as which programs are being offered at the colleges, is there a real difference depending on where you are geographically?

Doré: In some instances, yes. For example, Northern Virginia is home to data centers, and so a lot of the focus is going to be focused on regional needs in terms of business and industry. Certain sectors and regions of the commonwealth are in need of certain kinds of workers. If you go into the Hampton Roads area, one of the largest employers there, of course, is the Newport News Shipyard.

With that said, I think that we can do an even better job of aligning more from a regional perspective.

Now, in certain aspects for transfer education, which is a really important part of what we do, many programs [are] similar from college to college because, again, we want to have a real seamless alignment for our students who are transferring to the four-year schools. If you’re taking an English class at [Northern Virginia Community College] or you’re taking an English class at [Southwest Virginia Community College], that class needs to transfer to all of the same transfer institutions.

Around health care, pretty much every region of the commonwealth has health care [labor] needs. In some instances, I think we’re going to see some scaling [up] of certain programs in certain parts of the commonwealth and will actually need to do some realigning, from my perspective.

VB: Was there anything that surprised you during your tour?

Doré: We are doing incredibly innovative things at the colleges. I think that was really powerful for me to see firsthand some of the innovations.

I was really, really impressed with how our faculty and staff have embraced emerging technologies. One example is in the health care space. Right now, there’s a challenge in health care around clinical placements [for students], but educational institutions are permitted to have about 25% of the [in-class] simulations count for clinical placements.

For example, when I was doing the tour [at Virginia Peninsula Community College], I delivered a baby. I literally delivered a baby. It was all simulated. [Laughter]

Doré wants all Virginia students to graduate high school with a community college credit of some kind. Photos by Caroline Martin

VB: Whoa — how did that work?

Doré: Again, this is all [a] simulation, [in which] there was a woman in the middle of childbirth. I accompanied the EMT students who took her in the ambulance, and then we went to the hospital. This mannequin [is] so high-tech now that you actually deliver a baby in a hospital bed. We’re talking about placenta and the whole nine yards!

Then, similarly, in a lot of our heavy machine operation programs, [there’s] a lot of simulation there and in our truck-driving programs. It actually is a more efficient model for learners.

We’re using virtual reality at our colleges, artificial intelligence. We can’t run from these emerging technologies. We’ve got to embrace them, and we’ve got to incorporate them not just into how we teach and how our students learn, but then what kinds of skills we’re giving our learners. Students today need to have not just digital literacy, they need to be digitally fluent in these technologies in their respective fields.

VB: Do you think that people in general are more aware of what is offered at community colleges?

Doré: I think that is going to be one of my primary goals, is to market our Virginia community colleges much better than we have. I think that we have a lot of work to do in terms of not only promoting our colleges, but really promoting all of these different fields that are high-demand and high-wage fields that you do not necessarily need a four-year degree to compete and to be successful in many, many of these career fields.

I think it’s important for us to really work very closely with our K-12 partners and with high school counselors, so that we really can ensure that students get on a pathway much earlier into some of these high-demand areas.

VB: Can you elaborate on that?

Doré: When I came to Virginia back in January, I was able to meet with Gov. Youngkin and with [state] Secretary of Education Aimee Rogstad Guidera. One of the things that we discussed was this goal of having every high school student graduate from high school with a postsecondary credential.

I am very aligned with Gov. Youngkin, Secretary Guidera and Secretary of Labor [Bryan] Slater around these issues. I think that this is an achievable goal. We will need to deepen our partnerships with K-12 institutions across the commonwealth, but our colleges are ready and able to scale what we are doing to get students into a pipeline, to be career-ready when they graduate from high school.

Now, that is not to say that these students will not continue to pursue postsecondary [education], but … I think people are looking for the skills that can be applied in their lives sooner. When I went to college, I had a job that was really not related to my major to earn my way. Then I looked for a job when I got my degree.

More and more of our learners are actually employed full time, and they’re trying to get to a next level, and so they want to be able to use those skills right away. I think what we’re really doing much more is this notion of stackability — what we’re doing is really stacking credentials. They can be used earlier in their career, but then those credentials can be stacked to [become] an associate degree and ultimately … a bachelor’s degree.

VB: There are many sectors that need trained workers, from health care to education to wind energy. What can be achieved on this front in the next five or 10 years?

Doré: There are a number of sectors that we will be focusing on in the community college system. I’ll just give you some examples: IT and cyber. Obviously, we have an incredible skills gap in the health care sector.

Then we have a whole host of what we call the skilled trades: welding and machines, advanced manufacturing, mechatronics, public safety.

We really need to educate this new pipeline of talent. We’re going to have to scale certain programs at a much faster pace than we have over the last several years.

We are working collaboratively from a regional perspective to look at the pipeline that is needed for our various industry sectors — not just next year, but over the next five and 10 years. Then we need to, if you will, realign our entire system to make sure that we are really educating the pipeline to fill those necessary positions.

VB: Do you have enough educators?

Doré: No. We particularly do not have enough faculty in the high-demand sectors. If there’s a nursing shortage, then there’s obviously a nursing instructor shortage.

Attracting talent to our institutions is going to be another significant issue that I will need to address as the leader of this system. One of the things is that we have to be competitive to be able to attract the talent that we need to our system. That has to do with compensation. It is quite frankly challenging for us to attract faculty in these high-demand areas because industry has a shortage, and many of our faculty could make a lot more money working in industry.

We need to work very closely with business and industry to solve that problem. I see pockets of innovation in which our industry partners are in fact helping provide those faculty to our system.

VB: How do you appeal to prospective students who could choose a for-profit college over a community college?

Doré: Traditionally, if you look at the model for many for-profit institutions, they allocate a much higher percentage of their operating budget for marketing. They’re very, very well-invested in terms of marketing, and that’s something that, historically, public community colleges have not done. That is one area that I think it’s really important for us to look at is, how do we market the value proposition of our public community colleges?

VB: Youngkin signed a bill in May to create the Virginia Department of Workforce Development and Advancement, which consolidates a lot of different state workforce initiatives under one roof. How will that impact VCCS?

Doré: Some folks that are now here in this system office will be moving to this new agency, so yes, it does affect us somewhat. Now, with that said, I believe that we are going to be able to partner much more closely with the Commonwealth of Virginia to really streamline workforce programs. The Virginia community colleges are designated as the coordinator of postsecondary workforce education in the Commonwealth of Virginia.

Ultimately, we will play a crucial role in helping to shape what that new agency looks like and ensuring that we’ve got greater efficiency across the commonwealth.

VB: What about military veterans and their family members? There’s a big effort to keep them here in Virginia so they can take some of these in-demand skilled jobs. How big a priority is that?

Doré: I want to make it very clear that all of our colleges are veteran- and military- friendly, and that we have veteran centers.

Now, what’s really important for veteran students is that we have a robust program called Credit for Prior Learning. This is really for those who are transitioning out of the military. They’ve spent a whole lot of time perfecting a field, and in many instances they may or may not then have the necessary industry credentials to be hired in various sectors.

In many instances, they may only need another semester to complete even a degree. That’s really important for me — that we honor the skills that these veterans are already bringing to our colleges, and [that we’re] giving them credit for those skills. It’s [also] important for our veterans to get their benefits for the G.I. Bill and all of those programs.

VB: What did your own educational path look like?

Doré: I come from the working class, and neither my mom nor my dad went to college. I’m a first-generation college student. I grew up in Erie, Pennsylvania. I’m one of five children.

To be honest with you, I did not want to go to college. I graduated from high school, and I really didn’t want to go to college. My parents were like, “No. You’re going to college.” I had an opportunity, the summer that I graduated from high school, [to spend] the summer in Mexico working at a hospice. It was run by Catholic nuns in Mérida, which is in Yucatán. I was 17 years old.

I’ll never forget the first day in there, the nun, she tells me to go in and give this guy a bath. I walk in to give this guy a bath who’s in the shower, no arms or legs. Well, fast-forward to the end of the summer, I grew up really fast. There was a young man there who had fallen off of a hut, broke his back, was paralyzed from the neck down. I was taking care of these people.

One of the things that hit me that summer was my parents wanted me to go to college. I didn’t really want to go to college. I just wanted to get a job, but I was like, “I have the opportunity to go to college, and these people that I had been serving in this hospice, they didn’t have any opportunity.”

It was a wake-up call for me. I got home and I went down to my local college, and I enrolled right away. College transformed my life. I did become a teacher out of college. I taught in Catholic high school
for two years.

VB: And you met Fred Rogers, late host of “Mister Rogers’ Neighborhood,” during a class field trip to his TV studio in Pittsburgh?

Doré: At the lunch break, Fred Rogers spent an entire hour with me and my class. It was awesome! All my students were asking him all kinds of questions — everything. I remember I got to ask him the last question, and I said, “I’m a young new teacher. What advice do you have for me?”

I’ll never forget what he said. “David,” he said, “Remember that love is at the heart of all learning.” That has been my North Star throughout my entire career.

2022 Taxes/Estates/Trusts Q&A

Yates Campbell & Hoeg LLP, Fairfax

Title: Of counsel

Education: Bachelor’s degree, Georgetown University; law degree, George Washington University; master of laws, University of Miami

Family: My spouse, Ian Bolden (also a lawyer, but a different kind), and my step-daughter

Career mentors: My colleagues Tom Campbell and Tom Yates, who have taught me so much about the law, people and life

Hobbies: Right now, I have some plants I’m trying to keep alive, and I’m jogging a little more often than I bake (and eat) sugary treats.

Your dream client: Nice people. The rest doesn’t matter.

What do you consider the biggest challenge in assisting clients with estate planning? Not having unlimited time to get to know my clients, understand their needs and goals, help them understand all their options and make sure they understand how their estate plan works.

Your bio says you decided to become of counsel in pursuit of work-life balance. What led you to make that decision? A few months into the pandemic, I realized my work had become my life. So, I did some soul searching, got a life outside of work and changed my work to fit my life. It’s all going wonderfully!

Read the 23rd edition of the Virginia Business Legal Elite here.

Read the complete Taxes/Estates/Trusts 2022 list here.

Vested interest

Eleven months into his first term in elected office, Gov. Glenn Youngkin can boast of several economic development successes and a few legislative wins, but one thing a lot of observers are discussing is his national profile and what it could mean in 2024.

Youngkin — and his careful campaign to win over not only Trump fans but moderates who didn’t support the 45th president — is of keen interest to politicos who see him as a possible model for other GOP candidates seeking office.

The governor’s frequent appearances on Fox News and his hectic travel schedule, which has included trips to stump for Republican candidates in Connecticut, Maine, Arizona, Michigan, Oregon and other states, has raised questions about whether Youngkin views his governorship as a steppingstone to a presidential run in 2024.

During an October appearance on CNN’s “State of the Union,” Youngkin said the Republican Party “has to be a party where we are not shunning people and excluding them, because we don’t agree on everything.”

Virginia state Sen. Louise Lucas, who has made a cottage industry out of poking at Youngkin on Twitter, joked in September that the governor “has spent so much time in Texas that now he thinks Virginia is a border state.” Along more serious lines, she and other Senate Democrats have vowed to block abortion restrictions proposed by the governor and have spoken out against Youngkin’s new educational policies regarding transgender students. Many Democrats view the moves as discriminatory, although Youngkin said it’s meant to involve parents more fully in their children’s schooling.

In Virginia Business’ check-in with the governor, he doesn’t completely rule out running for president in 2024 but argues that his appearances in political battleground states are mainly to repay the Republican Governors Association for its support of his campaign.

Meanwhile, Youngkin has yet to embark on — or announce — any international trade missions but says he does plan to travel overseas on behalf of the commonwealth once Virginia’s economy is “sorted out.”

The former Carlyle Group co-CEO is much more comfortable talking about Virginia’s recent economic wins, including The Lego Group’s $1 billion toy factory and Plenty Unlimited Inc.’s $300 million indoor vertical farm operation, both coming to Chesterfield County. There are also the recent corporate headquarters relocations of Raytheon Technologies Corp. and Boeing Co. to Arlington, making Virginia home to the second- and third-largest space and defense contractors in the world.

In recent months, Youngkin, who has been skeptical of the state’s move toward decarbonization, unveiled a new energy policy, calling for increased investment in nuclear power. He also has called for overhauling the state’s workforce development efforts, saying that realigning the efforts of numerous agencies and hundreds of programs statewide under one umbrella will be a key part of his 2023 legislative agenda. “At the end of the day,” the governor says, “companies need workers.” — VB editors

Virginia Business: As you near the completion of your first year in office, how do you think your administration’s economic development efforts compare so far with previous governors?

Gov. Glenn Youngkin: I am very encouraged by our first eight months, and I think what we have really demonstrated is, first, Virginia’s open for business. Unfortunately, over the previous eight years, we didn’t really grow much, less than 1% on a compounded rate. We really didn’t add many jobs over the eight-year period. One of the things that I’ve been really focused on is getting our job engine cranked back up.

Youngkin speaks at a Sept. 22 fundraiser for Kansas gubernatorial candidate Derek Schmidt at Hayward’s Pit Bar B Que in Shawnee, Kansas. Photo by Mark Reinstein/MediaPunch/IPX

I think for the first six months, we were just up under 100,000 jobs. That’s very exciting, because that’s a faster rate than we’ve ever grown. It’s really important that we start growing. We were 47th in job recovery coming out of the pandemic in 2021. Now we’re in the top 15. [Editor’s note: From August 2021 to August 2022, Virginia gained an estimated 118,100 jobs, according to the Virginia Employment Commission. As of early September 2021, Virginia ranked 49th in percentage of jobs recovered since February 2020. As of June 2022, Virginia was 27th in job recovery, according to U.S. Bureau of Labor Statistics data.]

The second big thing that we’ve been able to do is demonstrate that we have a package of initiatives that are taking Virginia, which is a wonderful state for business, and we’re going to make it the best. That’s our big tax cuts that we got done in the first budget cycle … [and] our hard work on making sure we’re addressing an … overburdensome regulatory environment. Our Office of Regulatory Management is off and running.

All the work we’re doing on workforce … is hugely important in order to give companies confidence that we’re going to educate and build the workforce of the future.

Then, finally, work we’re doing to be ready for companies — sites investment, site development, is hugely important. I think that’s translated into some great wins.

… We see companies come from other states, like Boeing and Raytheon, companies that are here, like Hilton and Google, growing, [and] we see international businesses coming here like Lego … picking Chesterfield County. … Then we see new industries starting, and in the whole indoor-growing world, which has found a new hub in Virginia, where we all of a sudden see Plenty [Unlimited] and AeroFarms.

We got a lot to do, though. I want to continue to work on our regulatory environment. I want to continue to get taxes down. We got to continue to build workforce. We’ve got to continue to invest in our transportation infrastructure. We got a long way to go, but so far, so good.

VB: We lost a $5.5 billion Hyundai plant to Georgia, partly because the Southern Virginia Megasite wasn’t as ready as Georgia’s site. What do we need to do to be more competitive in landing deals like this?

Youngkin: This has unfortunately been an issue that’s been unaddressed by previous administrations, and states around us were addressing it. We weren’t ready. We called for and submitted an amendment into the [2022] budget process to put $150 million into site development and site readiness. In the grand scheme of things, it’s not going to be enough, and we’re going to have to put more in. We have got to rapidly accelerate the development of sites and, particularly, megasites. [Editor’s note: Youngkin’s predecessor, Gov. Ralph Northam, also advocated for the $159 million allocation that the General Assembly approved this year for the Virginia Business Ready Sites Program. Before that, the Assembly invested roughly $1 million per year in site readiness.]

We’re behind. It takes time to catch back up. The funding is important. We are … prioritizing the best sites around the commonwealth and starting to invest in them. I think this is going to be our last step of really going to the forefront for these megaprojects.

We’ve got the automotive industry reshoring, we’ve got the chip industry … reshoring, pharmaceuticals reshoring. We want them all in Virginia, and we need to make sure we have sites ready for them.

VB: Georgia offered more than $1 billion in incentives to Hyundai. Should Virginia be offering larger incentives?

Youngkin: We don’t have a problem in losing the incentive battle. We’re losing the site battle, and that’s the bottom line. … The reality, of course, is that when a company is going to put $6 [billion], $8 [billion or] $10 billion in the ground, the difference of 12 to 18 to 24 months in being up and running matters a lot, and that’s where Virginia’s behind.

We have found a very comfortable construct to compete from an incentive standpoint. I think we’ve been successful. Lego demonstrated that, and the Plenty [Unlimited] arrangement demonstrated that. I’m very pleased with the effort that we’re putting forth in order to provide the right incentive package.

I think when we have all of our sites caught up … [and] bring to bear all the great things that the commonwealth has plus competitive incentive packages, we win. We have the best location: Virginia’s within a day’s drive of half the country’s population. With the Port of Virginia, we have the best logistics hub on the East Coast. … We have got a great offering for companies. The big thing for us is getting our sites ready.

VB: Every Virginia governor for at least the last 20 years has gone on foreign trade missions, but so far, you haven’t. What are your plans for marketing Virginia overseas?

Youngkin: I do plan on going. … I’ve traveled a lot during my business career and have extensive relationships in lots of places. I believe that the best opportunities for the commonwealth right now are for us to get our economic situation sorted out and to help the businesses that are here [to] grow and attract businesses that want to come to the United States or to Virginia. I do expect that I’ll go on trade missions.

VB: You’ve made high-profile trips to support GOP gubernatorial candidates across the nation. What do you say to people speculating that you’re planning a presidential run?

Youngkin: I think it’s representative of where we are politically. … I’m flattered by it all the time, but at the end of the day, I have been in this position for less than a year. I understand we’ve flipped a state that had been blue. … I also understand that people are excited about the fact we’ve delivered on our Day One game plan and gotten Virginia moving. Right now, I’m really focused on being the best governor that I can be.

I’m very honored to be able to help some gubernatorial candidates around the country. The Republican Governors Association was hugely helpful to me when I was running, and it’s a chance for me to return the favor for other governors. I’ve only been working on governors’ races … and then working in the commonwealth to help Republican congressional candidates get elected.

VB: What are your economic development priorities for 2023? What sectors are you looking to grow?

Youngkin: First of all, there’s building blocks that have to continue to be put in place. This is sector-agnostic at this point. One, we have to get sites moving, and that’s megasites and some of the smaller sites. Second of all, we have to continue with our massive push in workforce development. Companies don’t want to come here if they don’t think they can have a great workforce.

Finally, we’ve got an overall cost-of-business regulatory framework that I think we can go a long way on. … We are cutting anti-business regulatory hurdles.

On top of that, there are a number of sectors that we find ourselves really growing quickly in. I think the whole pharmaceutical and bioscience world is a great place for Virginia. We’ve had huge wins in the pharmaceutical cluster here in Petersburg and Richmond and Chesterfield County. I’m very excited about the bioresearch that’s going on across the commonwealth.

I think we’ve got a tremendous leg up in advanced manufacturing, and we’ve got a great workforce. We’ve just got to bring it together around our defense companies and our aerospace companies, not to mention all of the great headway that is being made on advanced manufacturing in the supply chains into the automotive sector, etc.

Third, I’m very excited about our aerospace sector … what’s happening in Wallops Island, along with the buildup of our unmanned aerial systems, has been great. I think we’ve got some real hubs of new and exciting things happening. Not to mention the [next-generation] agri-tech world.

Then we have our entire computer science and technology world where Virginia’s just out in front. We look at where it begins with our data center dominance all the way up through end development. Our cyber capabilities are extraordinary, and these are sectors that we should continue to grow rapidly.

VB: What role do you see the Virginia Ready initiative you and your wife co-founded playing in the state’s workforce development efforts?

Youngkin: I would hope that Virginia Ready can continue to play a big part in supporting folks getting short-term training for in-demand jobs. One of the things we’ve seen is that our community college system is poised to play a major role in this, but it’s episodic in how it is doing it.

I think there’s a great opportunity here for organizations like Virginia Ready, and there’s lots of other ones that support people who are looking for new skills and training. … Our community college system can play an extraordinarily interesting role in preparing people for careers of the future. We can do that even in high school. This is the exciting part, where our community colleges partnered with K-12 education … with dual enrollment and the idea that you can graduate from high school with a two-year associate’s degree or a credential.

We’ve got to prepare our students coming out of Virginia’s high schools to be college-ready or career-ready, and I do believe that our community college system can play an enormous role in that.

VB: Senate Democrats are still in charge of the General Assembly, and they blocked your proposed gas tax break. Inflation is high and some economists are predicting a recession is likely. What do you hope to do for families and businesses in the 2023 General Assembly session?

Youngkin: My learnings from this first year is that common sense can prevail mostly. We got everything in our Day One agenda moving, all of it, other than a suspension of the gas tax.

Virginia’s universities have decided that they agree with me, they’re going to keep tuition flat this year.

I’ll need the General Assembly to finally come along, but we got $4 billion of tax cuts done last year. I think the General Assembly recognizes that if we continue to overtax Virginians like they have been doing, we’re going to continue to drive people away, and that’s no winning formula. I’m optimistic that this idea of bringing down the cost of living in Virginia, providing tax breaks for Virginians [and] going to work on affordable and accessible housing is going to be really important. We can make Virginia the best place to live, work and raise [a] family.

At the end of the day, companies need workers. I was first very clear with the General Assembly … that tax cuts should extend to both individuals and to corporations. I think that’s a really important step for us to begin to bring down the tax burden across all taxpayers in Virginia.

Then second of all, at the heart of all of this is making sure that we have a robust workforce for companies to hire and for people to thrive. … Bringing down the cost of living, bringing down the tax burden, is really important in making housing affordable and accessible.

Virginia’s awesome. We just have to make it a little more awesome so that people will choose to stay here.

Virginia Society of CPAs’ 2022 Virginia Economic Expectations Survey interviews

HAMPTON ROADS

Richard E. Groover, CPA

Shareholder | Wall, Einhorn & Chernitzer PC Norfolk

What local industries/sectors do you think have potential for growth?

Continued growth around the Port of Virginia and green energy. … Entrepreneurs and local leaders have made substantial investments to tee up this area as part of a wind turbine corridor for future developments on the East Coast. If that vision comes to fruition, then the impact on our area could be once in a lifetime.

What’s the biggest challenge to doing business n your area?

Attracting and retaining young talent.

How is your area recovering economically from the pandemic?

Everything here is coming back strong. We lost quite a few local restaurants and bars, but the leisure sector as a whole is humming, and new development plans are back in the pipeline.

What are the top factors that have had the biggest impact on attracting business to your region?

Ease of transportation into and out of our market is a huge draw. We have one of the deepest and busiest ports on the East Coast and great connections by rail and highway to the rest of the U.S. We encounter a number of European and Asian companies opening offices in the area to service their U.S. customers. It is always exciting to watch them grow and develop. Additionally, the military presence here remains a huge draw for supporting organizations in the area, particularly in the government contracting sector.

What are the top obstacles to your region’s economic success?

Regional cooperation has been our Achilles’ heel for many years; fortunately, I believe a lot of business leaders are working to change that with the 757 initiative. Availability of employees is also a struggle; in our firm, we have adapted to some fully remote hires for various positions due to the staffing shortage in our local market.

CENTRAL VIRGINIA

George D. Forsythe, CPA

Managing Partner | WellsColeman | Richmond

What local industries/sectors do you think have potential for growth?

The health care industry continues to thrive and grow, given increasing demand placed by COVID. Optimistically, I believe the local hospitality and events sectors are poised for growth. Given the reduction in travel and in-person events, coupled with the shelter fatigue that many people are feeling, this sector is prepared to explode.

What’s the biggest challenge to doing business in your area?

The obvious challenge to doing business in our area is the pandemic. With numbers on the rise, and uncertainty in our future, it is very challenging to conduct business. Additionally, access to available and quality personnel has further impacted the region economically. There is an abundance of jobs available and a scarcity of individuals who can and will appropriately fill these roles.

How is your area recovering economically from the pandemic?

The Richmond region was recovering nicely, albeit [on] a long road, from the pandemic until the delta variant began its momentum. … In times of uncertainty, human nature is to conserve resources versus expend them. This pandemic uncertainty, including health requirements, available staffing and supply chains, will continue to impair our recovery.

What are the top factors that have had the biggest impact on attracting business to your region?

Our high-quality colleges and universities providing access to top-tier talent, as well as access to financial resources, including available investment capital and incentives offered by local government.

What are the top obstacles to your region’s economic success?

The biggest obstacle facing the Richmond region’s economic success is the unknown future of the coronavirus pandemic. … The second, and more rooted, obstacle facing our region is the suboptimal collaboration among our local government, business and community leaders.

SOUTHWEST VIRGINIA

Andrea Hupp Stepka

Partner | Foti, Flynn, Lowen & Co. | Roanoke

What do you love about living and working in your region?

I moved here in summer of 1995, right after graduation from Virginia Tech. I love the mountains and the greenways. I am an avid runner, so the outdoor life here in Roanoke is amazing.

How is the economy faring in your part of the state right now?

Small businesses are having trouble finding good help, suppliers are limited everywhere … [and] prices are higher everywhere as well.

What local industries/sectors do you think have potential for growth?

Technology/software and knowledge-based industries

What’s the biggest challenge to doing business in your area?

Right now, the answer has to be COVID, right? It’s a huge challenge for workers to be face to face, and thus we as a CPA firm have had to embrace the remote aspects of working with our clients.

How is your area recovering economically from the pandemic?

Overall, I think we are doing fine. … Our clients have weathered the storm, and for the most part seem to be coming out on the other side. We haven’t seen many businesses having to close, most likely due to the [Employee Retention Credits] and loans from the government.

What are the top factors that have had the biggest impact on attracting business to your region?

Roanoke is a beautiful place to live. The mountains and scenery are a big attraction. The cost of living is very competitive as well. We have a high quality of living here, with a good mix of industries ranging from the small mom-and-pop to large businesses.

What are the top obstacles to your region’s economic success?

There are some disparities in income levels in Roanoke and we have a growing population of people in poverty.

SHENANDOAH VALLEY

Thomas L. Milburn, CPA

Principal | Yount, Hyde and Barbour (YHB) | Winchester

How is the economy faring in your part of the state?

Spring and summer showed a strong recovery. Pent-up demand led to tourism, shopping and dining again. The valley offers outdoor activities along with farm markets, vineyards and breweries that capitalized on people traveling closer to home or getting out of cities. Our industrial sector is doing well, with I-81 contributing to our role as a distribution/manufacturing hub in a world of mail order.

What local industries/sectors do you think have potential for growth?

Based on the quality of life and comparatively low cost of living, the valley has been an attractive location for retirees but more recently has become a destination for people migrating from cities to work remotely. Housing and professional services for those groups have potential for growth, such as health care and assisted living, along with wealth management, accounting, legal and other services.

What’s the biggest challenge to doing business in your area?

One major challenge to doing business across industry sectors is obtaining and retaining talent. … Affordable housing is an issue for younger professionals and retail/hospitality workers.

How is your area recovering economically from the pandemic?

With COVID uncertainty creeping back, indications are the valley economy isn’t full speed ahead. While businesses spent stimulus on employees, cash reserves remain as employers decide on spending and investment. It’s worth noting the uneven impact of the pandemic. While businesses have cash, the appetite for further unemployment benefits for hourly and gig workers seems low if the pandemic lingers.

What are the top obstacles to your region’s economic success?

First, affordable housing remains a priority. Second, the lack of high-speed internet in large areas of the valley for work and education was exacerbated by the pandemic.

NORTHERN VIRGINIA

Christine B. Williamson, CPA, PMP

Government contracting industry audit & advisory lead partner | CohnReznick LLP | Tysons

How is the economy faring in your part of the state?

Over the decades, many have commented that NoVa is “in a bubble,” meaning it fares well during turbulent economic times. This phrase continues to ring true in the pandemic and as we get back to the new normal. With the federal government, Amazon, Micron and data storage facilities, these sectors fuel the bubble effect here in Northern Virginia.

What local industries/sectors do you think have potential for growth?

The industries are endless here in NoVa, but I think the technology and medical sectors have the greatest potential for growth.

What’s the biggest challenge to doing business in your area?

My expertise is servicing companies who work for the federal government via government contracts. There is a talent war for many business sectors, including CPA firms. I’d say talent is the biggest challenge, regardless of the business type. We all struggle to find enough people to do the work, causing companies to go outside the area to look for talent.

How is your area recovering economically from the pandemic?

The Northern Virginia area is no different than other regions, as the business world has pivoted out of the pandemic by modifying how to do business, be creative, think strategic and figure out new ways to sell the same services. I hear many businesses say we are revisiting our business culture and purpose, which helps them through the recovery process.

What are the top factors that have had the biggest impact on attracting business to your region?

Location, location and location! And our vibrant technology sector.

What are the top obstacles to your region’s economic success?

Cost of living and traffic.

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