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Simmons Equipment announces $8.5M expansion into Russell County

Simmons Equipment, a specialty mining equipment manufacturer based in Tazewell County, plans to expand into neighboring Russell County, Gov. Glenn Youngkin announced Monday.

The company expects to invest $8.5 million into converting two buildings in Lebanon, an investment set to create 75 jobs, the governor’s office said. Founded in Tazewell in 2005, Simmons produces soft rock mining equipment, including scoops, haulers and longwall support vehicles. According to the news release, the expansion will allow the company to grow its product line. The Virginia Economic Development Partnership worked with Russell County and the Virginia Coalfield Economic Development Authority to secure the project, which Virginia competed with Tennessee and West Virginia to land.

Simmons plans to also retain its Tazewell facilities, the governor’s announcement said. Youngkin approved a $270,000 grant from the Commonwealth’s Opportunity Fund for Russell County, and VCEDA approved a $187,500 to the company for workforce development and a $500,000 loan to the county’s industrial development authority for facility improvements. Simmons is also eligible to receive incentives from the Major Business Facility Job Tax Credit for full-time jobs created.

The new locations in Lebanon will be at 219 Joe Gillespie Drive, the former Polycap facility, and 200 Haber Drive, and the company plans to move in phases over the next two quarters of the year, a spokesman said. Simmons currently employs 107 people in Tazewell.

“We are thrilled to be expanding our operations into Russell County,” President and CEO Matt Simmons said in a statement. “Our business has been growing into new markets worldwide, and this additional manufacturing capacity will allow us to aggressively pursue those opportunities. After an extensive search, we are excited to continue our growth here in Southwest Virginia. We were highly impressed with the efforts of the Russell County Industrial Development Authority, the Virginia Coalfield Economic Development Authority and the Commonwealth of Virginia to support us in this exciting endeavor. We look forward to being part of the growing business community in Russell County.”

Tazewell indoor salmon farm adjusts course

The $228 million Pure Salmon facility on 200 acres straddling Tazewell and Russell counties has hit a snag with construction delays and is pushing back its expected timeline.

Tazewell County Administrator Eric Young says construction progress has not proceeded as anticipated on the Virginia branch of the United Arab Emirates-based Atlantic salmon farming and processing business’ project, which is expected to create about 200 local jobs. Factors contributing to the delay, he says, included supply chain disruptions, labor shortages and inflationary pressures.

But the plan for the indoor fish farm continues making its way upstream.

Pure Salmon graded 100 acres to prep for a foundation in 2022 and is working with Russell County to build an access road. The next construction phase, including groundwork, will start in early summer, Karim Ghannam, co-founder and chief investment officer of 8F Asset Management, a Singapore-based private equity firm backing Pure Salmon, said during an April visit to Virginia.

The company now has plans to rework some engineering in the facility’s design to mitigate rising construction costs over the past three years, Young says, and it aims to capitalize on state bank bonds and additional fundraising efforts to address financial challenges stemming from inflation. Pure Salmon declined to disclose its budget.

“That’s one of the reasons they’re here; it’s a very strategic place where the land is cheap, the labor is a little bit less expensive, but you can still access those markets. And in the seafood industry, time is of the essence,” he says.

Says Lala Korall, a consultant for Pure Salmon, “We hope to be complete with construction by the end of 2028.” (When first announced, Pure Salmon had aimed for a 2023-24 delivery.)

Production will occur in phases, with salmon eggs entering the facility and fish being harvested before construction is complete, Korall says.

Pure Salmon Virginia has four employees currently but indirectly employed about 100 workers via earthwork subcontractors and engineering teams earlier.

Young says the project will diversify the region’s economy and provide jobs ranging from aquatic veterinarians to fish filleters, with wages above the local average.

“We’ve been dependent on the coal industry for a long time here, and it has ups and downs … but food is food,” Young says. “People are always going to have food, so this should be recession-resistant as far as jobs.”  

5 SWVA projects recommended for $9.5M in federal grants

Five Southwest Virginia economic development projects have been recommended to receive a cumulative $9.35 million in federal Abandoned Mine Land Economic Revitalization (AMLER) grants, Virginia Gov. Glenn Youngkin and U.S. Rep. Morgan Griffith announced Thursday.

The projects are on sites where coal was mined before 1977. Funding for the federal AMLER Program comes through the Office of Surface Mining and Reclamation Enforcement, which has final approval over recommended projects. The Virginia Department of Energy administers AMLER funding for projects in the state.

“Repurposing land to create jobs and grow communities is a wonderful benefit of the AMLER program,” Youngkin said in a statement, “and we are excited to see these developments create opportunities in our Southwest communities.”

The five projects are:

  • Data Center Ridge, Wise County, $3 million
  • Haysi High School Site Redevelopment, Dickenson County, $2 million
  • Southern Gap Office Park Building, Buchanan County, $1.95 million
  • Norton Light Industrial Building, Wise County, $1.2 million
  • Russell County Access Bridge, Russell County, $1.2 million.

The Data Center Ridge project is located on a 4,000-acre industrial site in Wise County known as the Bullitt site. The project will convert a 400-acre previously mined property into a 1-gigawatt, multitenant data center campus. It’s part of a planned clean energy development that could attract up to $8.25 billion in capital investments, resulting from a land development agreement between Energy DELTA Lab, Dallas-based Fortune 100 energy company Energy Transfer and Wise County. The AMLER funding would support site and infrastructure development for Data Center Ridge.

Funding for the Haysi High School site redevelopment project would support infrastructure development and land preparation for retail development. The Southern Gap Office Park project includes building a two-story commercial office building in the regional office park. The Norton project is constructing a spec building in the Project Intersection industrial park, where Atlanta-based high-speed internet service provider EarthLink is building a 28,000-square-foot customer support center. The Russell County bridge will add infrastructure supporting the Project Reclaim industrial park, which previously received close to $5 million in AMLER funding.

Virginia began receiving federal grant dollars for the AMLER program in 2017 and has recommended more than 40 projects since then. The state is one of six that receives AMLER grant funding.

“The AMLER Program, federal funding I championed, provides our communities in Southwest Virginia with opportunities to reuse old mine lands for new and exciting purposes. AMLER projects have contributed to job creation, economic growth and environmental renewal in the coalfields, improving the quality of life for residents in the surrounding areas,” Griffith, a Republican who represents Virginia’s 9th Congressional District, said in a statement.

 

Russell County farm to invest $1M in expanded manufacturing

Goat milk products maker Bates Family Farm will invest roughly $1 million to relocate its manufacturing facility to a Russell County-owned building in Lebanon, a project expected to create 12 jobs, Gov. Glenn Youngkin announced Wednesday.

“We’re creating agriculture-based jobs and selling Virginia-made products,” Bates Family Farm co-founder and CEO Joseph “Joe” Bates said. The jobs encompass multiple skills, he said, with most employees moving between the processing and farm sides depending on the season.

The Russell County-based manufacturer will move its skin care products manufacturing from a roughly 4,000-square-foot building on the farm to the 40,000-square-foot former Acme grocery store building, according to Bates. Bates Family Farm will then convert its current manufacturing building into a creamery to expand its dairy operation within a year to 18 months, he said, producing bottled goat milk and cheeses.

“What’s happened is our herd has grown over the years,” Bates said. “We’ve gone from basically 30 goats to about 200 goats at the moment, and of course, we’re getting a lot more milk, so now, our sales can’t keep up with our milk production,” which prompted the expansion.

Over the next three years, the company expects to increase production to $2 million worth of agricultural product (the value of the milk, not the finished products).

Shannon and Joe Bates established the company in Lee County in 2013 and later moved it to Russell County. Bates Family Farm’s skin care products include soap, lotion, lip balm and body cream and are sold in more than 1,000 retail and specialty stores across the U.S. The company offers 26 scents, Joe Bates said.

The Virginia Coalfield Economic Development Authority provided the Russell County Industrial Development Authority with three loans for the purchase and renovation of the former Acme building in Lebanon: up to $500,000 in July 2021, up to $200,000 in February 2022 and up to $250,000 in March.

The Virginia Department of Agriculture and Consumer Services worked with Russell County and the Russell County Industrial Development Authority to secure the project. Youngkin approved a $70,000 grant from the Governor’s Agriculture and Forestry Industries Development (AFID) Fund, which Russell County will match locally.

“I am pleased to see this AFID award assist in the relocation and expansion of Bates Family Farm, a Virginia home-grown, agricultural business, founded by one of our country’s veterans,” Youngkin said in a statement. “This project increases economic development activity in Russell County, provides new jobs in a rural area and demonstrates our support of the commonwealth’s dairy industry and to Virginia’s entire agricultural community.”

$14.9M manufacturing facility coming to Russell County

Tate, a data center supplier, will invest $14.9 million to establish a new manufacturing facility in Russell County, creating 170 jobs, Gov. Glenn Youngkin announced Thursday.

The new plant will focus primarily on data center component manufacturing and containment products to serve clients in Virginia and other data center sites.

“I’m proud that the commonwealth has once again proven itself against other states as the top choice for a global company like Tate to invest in a new manufacturing facility,” Youngkin said in a statement. “Southwest Virginia is committed to business attraction and offers the environment and skilled workforce to help its corporate partners succeed. We are excited to see all that Tate accomplishes in Russell County.”

Tate is hiring for a quality supervisor and maintenance manager, according to its hiring website. The company also said it soon will be hiring for positions such as mechanical techs, electrical techs, paint techs and laser techs.

The Virginia Coalfield Economic Development Authority provided $2.5 million to the Russell County Industrial Development Authority in 2020 that enabled the Russell County to buy the building in St. Paul that will be occupied by Tate for the project, VCEDA Executive Director and General Counsel Jonathan S. Belcher said in a statement. It has also approved up to $250,000 in workforce development and training funds for Tate, he added.

“This is one of the most significant manufacturing projects to locate in the VCEDA region in many years, and it will greatly enhance and diversify the economy of St. Paul and of the region as a whole,” Belcher said.

The Virginia Economic Development Partnership worked with Russell County and the VCEDA to secure the project for Virginia. Youngkin approved a $700,000 grant from the Commonwealth’s Opportunity Fund to assist Russell County with the project. The Virginia Tobacco Region Revitalization Commission approved a $146,000 Tobacco Region Opportunity Fund grant to support the project.

Support for Tate’s job creation will be provided through the Virginia Talent Accelerator Program, a VEDP workforce initiative.

Economic Development 2023: JONATHAN S. BELCHER

In addition to leading the Virginia Coalfield Economic Development Authority, Belcher has also headed up the Virginia Coalfields Expressway Authority since 2020. This year, the Virginia Department of Transportation received $7 million from the federal government, which the expressway authority will use to widen a 2-mile stretch of U.S. Route 460 in Buchanan County into a four-lane road, part of the proposed $4 billion Coalfields Expressway that would run through Southwest Virginia and southern West Virginia.

Belcher’s work with the VCEDA spurs development in the region, and last year included awarding a slew of grants to organizations such as The Napoleon Hill Foundation to assist with developing a free online course in entrepreneurial skills for high school students in the VCEDA region.

Ever since his first job as a law clerk in the York County attorney’s office, Belcher always knew he wanted to get involved in a career involving real estate, business and law. He has a law degree from William & Mary and a bachelor’s degree in real estate from Morehead State University.

HOBBY/PASSION: Working on classic cars, of which I have several that are not worth very much but are enjoyable to tinker on.

MOST VALUED POSSESSION: My 1985 Pontiac Fiero, which was also the first car I ever owned

Judge dismisses Trigiani lawsuit against New Peoples Bank

A federal judge issued a summary judgment last week, dismissing all claims in former executive Mary Y. Trigiani’s lawsuit against Russell County-based New Peoples Bank for discrimination and wrongful termination. Trigiani’s complaints of a “cultlike office culture” did not hold up to judicial scrutiny, U.S. District Judge James P. Jones ruled.

A Big Stone Gap native, sister of bestselling author Adriana Trigiani and former Virginia Bar Association president Pia Trigiani, Mary Trigiani was employed as New Peoples Bank’s senior vice president of strategic planning and development from 2017 to 2019. Trigiani founded a consulting practice, Spada Inc., in 1990 and has served on multiple advisory and nonprofit boards, including the GO Virginia Region One Technology Working Group. Before joining NPB full-time, she was a contracted consultant for the bank.

In January 2021, Trigiani sued New Peoples Bank in U.S. Western District Court of Virginia, claiming that she was discriminated against because of her Catholic, nonevangelical religious beliefs, her age and her gender. She characterized the bank’s culture as akin to a cult, claiming that NPB President and CEO C. Todd Asbury, who also serves as senior pastor of Adoration Church in Bristol, “encouraged a cultlike office culture by opposing individualistic thinking/ideas, penalizing or ostracizing employees who did not follow to the letter the certain cultural-religious tenets (such as the subjugation of women), expecting a slavish devotion to the NPB Cult, avoiding what he considered to be worldly/contemporary activities, and rewarding blind allegiance.”

However, on April 20, Jones ruled in favor of the defendants’ motion for summary judgment, writing, “While over-the-top allegations are unfortunately not unusual in initial pleadings, the time for reckoning often comes, as it does in this case. The plaintiff here is essentially her only witness and her subjective conclusions about her own conduct and the resulting treatment by her employer do not overcome the undisputed facts.”

“We are very pleased with the outcome of the lawsuit,” Asbury said in a statement. “It has been our position since the day it was filed that this lawsuit was frivolous and the claims were false, and it is great to see that justice has finally been served. It is unfortunate that the bank and its employees have had to endure this unnecessary disruption to serving our customers’ banking needs.”

Trigiani had argued that she was terminated “because she is a strong woman,” according to the ruling, “a ‘bold … loud-speaking, emphatic person and that does not jive with their definition of femininity,'” but the judge wrote that “no one complained … that Trigiani was a strong woman. Rather, she was accused of yelling and raising her voice, slamming her door, and belittling her colleagues and making them cry.” The judge noted that she “admitted that such conduct would be inappropriate in the workplace, regardless of gender,” and her claim that male executives acted similarly “lacks any evidentiary support.”

Also, her claims of religious discrimination did not hold up, the judge ruled, noting that several board members who approved her hiring and firing are also Catholic.

Thomas E. Strelka of Roanoke-based Strelka Employment Law, who represents Trigiani, said she is “currently weighing all options,” including a possible appeal. “Ms. Trigiani had strong claims, and we believe that her claims were struck in error. As alleged, she was treated in a discriminatory fashion.”

Trigiani had dropped earlier claims of alleged hostile work environment harassment and age discrimination, and Jones dismissed her remaining claims in the April 20 ruling. The bank, represented by O’Hagan Meyer, contended that Trigiani had been chosen for termination as part of a workforce reduction “because of her high salary and performance issues,” according to the judgment.

At least 10 employees complained about her behavior, saying that Trigiani often lost her temper, the judgment said, and Asbury met with Trigiani to discuss the complaints in December 2018 and had ordered another employee to draft a separation agreement. At the time of Trigiani’s June 2019 separation from the bank, 10 other staff positions were eliminated, nine of which were held by women, and in 2020, 30 more people were laid off, including four senior male executives, according to the judgment.

Jones wrote in the ruling that the bank met its burden to show that its workforce reduction was conducted to reduce headcount and debt, “and that it based its selection criteria on cost and job performance — both valid, nondiscriminatory bases.”

By the end of 2020, NPB had 189 employees, down from 371 employees in 2008, and the bank did not report positive earnings until 2021, the ruling said.

 

Rising in the Southwest

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Richmond heavyweight? 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Influential lawmakers

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

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

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

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

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

Economic challenges

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Finding new solutions

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

The stakes were (and are) high.

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

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

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

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

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

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

The personal approach worked.

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

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

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

Big news in Wythe County

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

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

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

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

Slot machines and sawmills

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

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

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

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

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

Energy opportunities

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

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

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

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

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

Growing established companies

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

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

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

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

Good fits for Russell County

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

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

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

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


 

Southwest Virginia’s recent deals

Blue Star NBR LLC

Wythe County

2,464 jobs

EarthLink

Norton

285 jobs

Amazon.com Inc.

Bristol

200 jobs

STS Group AG

Wythe County

120 jobs

Maine Five Distributors LLC

Buchanan County

100 jobs

Woodgrain Inc.

Smyth County

80 jobs

Ceccato S.p.A.

Russell County

50 jobs

Lawrence Brothers Inc.

Tazewell County

40 jobs

Mohawk Industries Inc.

Carroll County

35 jobs

VFP Inc.

Scott County

30 jobs

Source: Virginia Economic Development Partnership

Appalachian Council for Innovation taps exec director

John Bebber has been hired as executive director of the Appalachian Council for Innovation, its board announced earlier in January. He was previously district director for U.S. Rep. Morgan Griffith, R-Abingdon.

ACI is a nonprofit regional economic development organization founded in 1999 as the Southwestern Virginia Technology Council. It includes businesses and organizations in 16 Southwest Virginia cities and counties, including Bristol and the counties of Wythe, Russell, Wise and Buchanan. ACI created IN Appalachia to connect businesses, health care providers, customers and organizations to drive growth and regional collaboration.

“I am excited for this opportunity to promote regionalism, cooperation and growth among our businesses, localities, schools and communities,” Bebber said in a statement. “Promoting these ideas in our region is vital to long-term success and sustainability, as well as showing our youth that they can grow up and build a life here without having to sacrifice prosperity, or any level of success or happiness. I believe that ACI will be a driving force behind building this model of sustainability and changing the way we look at ourselves as a region. I am thrilled that I get to be a part of that.”

A U.S. Navy veteran, Bebber has degrees from King University and Appalachian State University.