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Tag: Southwest Virginia

All in good time

For decades, the promise of economic revitalization has tantalized Southwest Virginia. The sparsely populated region, once home to booming coal mining and tobacco industries, has had money and resources thrown at it by local, state and federal governments, but it’s still had a difficult time finding its footing.

As the region’s economy has declined, so too has its population, with the University of Virginia’s Weldon Cooper Center for Public Service predicting Southwest Virginia’s headcount will have dropped by more than 10% between 2020 and 2030 and will decline more than 23% by 2050. What’s more, just over half of Southwest Virginians participate in the labor force — about 12% lower than the state average, according to the Virginia Employment Commission. That’s due to a variety of factors, including child care, transportation, housing and the opioids epidemic.

And that’s in normal times — not taking into account the impact from disasters such as Hurricane Helene, which damaged or destroyed more than 500 homes and 80 businesses across the region in September and shut down a l.5-mile segment of U.S. Route 58, a key regional artery for commerce and travel that stretches from far Southwest Virginia to Hampton Roads. The Virginia Cooperative Extension has estimated that agricultural damage in the region could surpass $125 million.

Despite Southwest Virginia’s challenges, billions of public dollars have been invested regionally during the past several years, including $3.8 billion in planned Interstate 81 improvements, $8.2 million in affordable housing support, and $1.48 billion in federal funds to expand broadband access. And that’s not to mention Highlands Community Services’ new mental health crisis center, which opened in Abingdon in May, or Emory & Henry University’s new state lab school, SWVA HEALS (Southwest Virginia Healthcare Excellence Academy Lab School), which launched in August and prepares regional high school students for careers in health care.

Plus, considering the region’s historic connection to the energy industry and its ample supply of vacant land, economic development officials have been marketing Southwest’s abandoned coal mining lands for renewable energy and data center projects. While industries like those could provide investments in jobs and capital the region needs, the situation won’t change overnight, experts caution.

“We hear all the time, ‘Oh, you guys have all this land. You can do solar everywhere. You can do projects everywhere,’” says Will Payne, director of InvestSWVA and managing partner of regional economic development consulting firm Coalfield Strategies. “And … if that was true, where are the projects right now?”

Payne is heavily plugged into Southwest Virginia politics and his work is focused on marketing the region for economic development projects.

Fighting against time

Completely revitalizing a region’s economy takes time. Energy projects are complex and can take years to get off the ground, considering the due diligence involved.

“There are no quick wins in energy generation projects,” Payne says. “There are no quick wins in data center projects.”

Even developing a solar farm can take four years to complete, and that’s “probably really aggressive,” says Will Clear, managing partner of Bristol-based consultancy Virginia Energy Strategies and a former chief deputy director of the Virginia Department of Energy.

Clear and Payne are advisers for Energy DELTA Lab, a regional nonprofit collaborative initiative to market more than 65,000 acres of previously mined land in the region to develop into renewable energy projects, such as solar, wind or hydrogen, and data centers. Partners in the initiative include energy companies, InvestSWVA, the Southwest Virginia Energy Research and Development Authority, and the Virginia Department of Energy.

“The idea of using mine lands — it makes a lot of sense … using brownfield sites, but the real issue is not that simple,” Clear says. “There’s a lot of complexities associated with land that has been previously mined and currently mined [and] potentially under permit. There’s a lot of things you have to tackle.”

In November 2023, Gov. Glenn Youngkin announced an agreement between Wise County, the Energy DELTA Lab and Dallas-based Fortune 100 energy company Energy Transfer to aid in developing a variety of energy projects that would attract private investment and fit Youngkin’s all-of-the-above strategy for fulfilling the Virginia Clean Economy Act’s renewable power mandates.

Youngkin also announced a new initiative this year, Accelerate Southwest. Aimed at improving the region’s economic development, infrastructure, housing and cost of living, the initiative focuses on existing programs like improvements to I-81 and the DELTA Lab.

On the economic development front, although it requires a great deal of time and investment to bring data centers and renewable energy projects to fruition, next year could be a turning point for such developments in the region, Clear and Payne say.

“I think that in 2025, it’d be fair to say that we’re going to see real movement here based on a lot of due diligence that’s been going on for the last three years,” Payne says.

Data center storage rack manufacturer Tate is investing $15 million in a new manufacturing facility in St. Paul, with plans to add 170 jobs over four years, says Virginia Coalfield Economic Development Authority’s Jonathan Belcher. Photo by Tim Cox

From mining to manufacturing

Energy and data center projects are eyed as key remedies for the economically ailing region, which has seen its coal production fall off dramatically during the past three decades. The region’s coal production, which occurs mostly in Buchanan, Dickenson and Wise counties, fell from 46.6 million tons in 1990 to fewer than 10 million tons in 2020, according to the Virginia Department of Energy.

“Coal’s not dying. We’re producing more coal than we’ve ever produced. It’s just with fewer people,” Sen. Travis Hackworth, R-Tazewell County, said during the Southwest Virginia Economic Forum at the University of Virginia’s College at Wise in May.

“If you look back at that 20-year period, there were definitely highs and lows for that industry, [but] it’s continued to be a significant part of the economy,” says Randall Rose, associate vice chancellor for community and economic development at U.Va. Wise. “However, there also has been a very strategic effort looking at diversifying the region so that if there is a decline in the coal industry, it doesn’t make such a major impact on the economy and the lives of individuals.”

At U.Va. Wise, Rose is responsible for fostering the symbiotic relationship between the university’s pool of student talent and the region’s employers, as well as assisting in larger economic development and entrepreneurship-focused goals for the region.

U.Va. Wise is also part of Opportunity Southwest, a regional collaborative initiative for promoting entrepreneurship. It was formed in 2012 to create the Blueprint for Entrepreneurial Growth & Economic Prosperity in Southwest Virginia, a strategic planning document for developing a regional entrepreneurial ecosystem.

“That blueprint really set the stage for not only local economic developers and small business developers, but also regional and statewide and even federal partners to see what that future could look like and where the areas of focus would be for the Southwest region,” Rose explains.

Additionally, U.Va. Wise has been working with localities and economic development officials to research the feasibility of renewable energy and data center projects at specific sites in the region.

“We want to support in any way possible the economic developers in the region [and] the private sector,” Rose says.

Another focus of economic development efforts in Southwest Virginia has been manufacturing.

“A lot of that goes back to the blue-collar heritage of the region with the coal mining history. That workforce adapts very well to manufacturing positions, so we focus very heavily on that,” says Jonathan S. Belcher, executive director and general counsel for the Virginia Coalfield Economic Development Authority (VCEDA). Established by the General Assembly in 1988 to enhance and diversify Southwest Virginia’s economy, VCEDA works closely with the Virginia Economic Development Partnership and local economic development officials to secure new projects for the region.

Most of the manufacturing companies VCEDA seeks to recruit are advanced manufacturers using specialized equipment that requires specific training and experience. “They’re not just basic assembly positions or something that would be a lower skill level or lower-paying position,” Belcher says.

One such project was announced in November 2023, when data center storage rack manufacturer Tate announced it would establish a new 270,000-square-foot manufacturing facility in St. Paul, along the Russell and Wise counties border. The nearly $15 million project is expected to create 170 full-time jobs over the next four years, Belcher says.

The region’s manufacturing industry has started paying off — literally. Since early 2022, average annual wages in Southwest Virginia have been growing at a higher rate than the rest of the commonwealth, according to data from Chmura Economics & Analytics.

Growing tourism, small business

While Southwest Virginia continues to struggle with challenges such as its low workforce participation rate and obstacles to economic development, the region still attracts tourists to its large swaths of unspoiled, natural beauty. For that reason, tourism has continued to grow in Southwest Virginia during the past couple of decades, Belcher says. Much of the tourism in the region is centered on outdoor recreation such as hiking, ATVs and horseback riding — but it’s also home to The Crooked Road Heritage Music Trail. The scenic, 330-mile driving route connects a variety of music venues and festivals including the Birthplace of Country Music Museum in Bristol and the Floyd Country Store, which features live Appalachian music and a weekly Friday Night Jamboree.

“There’s also a lot of historical attractions in the area going back to the Colonial time period,” Belcher says. And much of Southwest’s tourism development has been “building upon those assets … building small businesses that support that.” As a result, more colleges in the area have also started to implement hospitality management and outdoor recreation management programs.

Some of these small businesses and economic stimulation comes from Airbnbs, campgrounds, restaurants and food trucks, he says. Many restaurants, coffee shops and other small retailers have emerged from seed capital programming and regional Small Business Development Centers. One such small business that’s found success is a drone photography business run by Dickenson County native Brad Deel. He received a $10,000 grant from VCEDA, and now his photography is used to market the region and promote tourism.

“We really feel like small business development is a key part of the economic development strategy as well,” Belcher says. “Relying just on larger industrial recruitment projects is a really misplaced strategy to rely solely on. The activity [we’re seeing is] really helping with the stability of the economy.”  

Southwest Virginia at a glance

Known for its rural, mountainous landscapes and as the birthplace of American country and bluegrass music, Southwest Virginia includes Bland, Buchanan, Carroll, Dickenson, Grayson, Lee, Russell, Scott, Smyth, Tazewell, Washington and Wythe counties, as well as the cities of Bristol, Galax and Norton. Formerly known mostly for coal mining, the region is turning its efforts toward attracting ecotourism, alternative energy projects and data centers. The University of Virginia’s College at Wise, Emory & Henry University and Mountain Empire, Wytheville and Southwest Virginia community colleges are also located in the region.

Population

335,847

Top employers

  • Walmart 
  • CGI
  • Lee, Russell, Scott, Tazewell and Wise county school systems
  • Tempur-Sealy
  • Coronado Coal

Notable hotels

The Bristol Hotel (Bristol)
65 rooms, 3,800 square feet of event space

The Inn at Wise (Wise)
49 rooms, 5,000 square feet of event space

The Martha Washington Inn
& Spa (Abingdon)
63 rooms, 3,200 square feet of event space

The Primland Resort (Meadows of Dan)
53 rooms, 12,149 square feet of event space

The Sessions Hotel (Bristol)
70 rooms, 2,311 square feet of event space

Western Front Hotel (St. Paul)
30 rooms, 2,000 square feet of indoor and outdoor event space

Dining

Burger Bar (Bristol)
American, theoriginalburgerbar.com

The Tavern (Abingdon)
American, abingdontavern.net

Graze on Main (Wytheville)
Southern, bollingwilsonhotel.com/index.php/graze-on-main

Major attractions

One of the premier attractions of Southwest Virginia is the Appalachian Trail, which runs through 14 states and through the heart of the region. SWVA is also home to the 300-mile gospel, blues and bluegrass music heritage trail The Crooked Road and Bristol’s Birthplace of Country Music Museum. In Damascus, up to 20,000 people attend the Appalachian Trail Days Festival each year. On Nov. 14, the Hard Rock Hotel & Casino Bristol is set to host a grand opening of its $515 million permanent facility, including the Hard Rock Live entertainment venue. For live stage performances, visit The Barter Theatre in Abingdon, the nation’s longest-running Actors’ Equity theater.

Health Wagon CEO’s pay gains attention

Once best known outside the region for its role in an annual Remote Area Medical pop-up clinic at the Wise County Fairgrounds, Southwest Virginia’s Health Wagon has gained new notoriety — and lost state funding — over executive pay. After Cardinal News reported in May that Health Wagon President and CEO Teresa Gardner Tyson makes more than $520,000 annually, Virginia legislators cut more than $800,000 in funding for the Health Wagon.

The Health Wagon provides free medical, dental and vision care to six Southwest Virginia counties and Norton through three clinics, a pharmacy and four bus-sized mobile units. It was founded in 1980 by Sister Bernadette Kenny, who offered care from her Volkswagen Beetle. Median household income in the Health Wagon’s service area ranges from $36,974 in Norton to $47,541 in Wise County.

The General Assembly began funding the Health Wagon in 2005, allocating $75,000 over two years. The amount fluctuated, but funding continued and eventually grew to $402,717 annually beginning in 2018.

That ended when legislators learned about Tyson’s compensation package, $522,326, according to the organization’s most recent filing with the IRS, which covers 2022. That’s a 113.9% increase from her pay in 2019. Paula Hill-Collins, clinical director and Tyson’s friend since the eighth grade, received $308,725 — a 53.2% increase from 2019.

During that time, the Health Wagon’s revenue increased 87%, to more than $9.2 million. The organization’s executive compensation fell from 19.2% of revenue in 2018, when total executive compensation was $467,390, to 10.7% in 2022.

By comparison, CrossOver Healthcare Ministry, which runs two Richmond-area clinics, had more than $9.5 million in revenue for the fiscal year ending June 2023, and its CEO’s compensation was $175,102. Its medical director received $186,885.

Tyson says comparing the Health Wagon “to other free clinics is neither fair to us nor them when there are many key distinctions that set us apart.” With its many services, she says, her organization is more like federally qualified health centers, nonprofits serving medically underserved populations regardless of ability to pay.

The state funding cut won’t affect services, says Tyson: “We are always seeking alternative funding sources, including grants, donations and active partnerships. To the contrary, we are expanding programs.”

The Health Wagon’s free pharmacy in Wise opened in July, just before the 25th annual pop-up clinic served 574 people, this time at the University of Virginia’s College at Wise.  

Appalachian Community Capital to launch Green Bank

Appalachian Community Capital, the Christiansburg-based community development financial institution for the Appalachian Valley, plans to launch the Green Bank for Rural America with a $500 million award from the Environmental Protection Agency, it announced Friday.

Focused on financing up to 2,000 new energy projects that could create up to 13,000 jobs, the Green Bank will leverage private capital to fund $1.6 billion in projects across the coalfields of Southwest Virginia and parts of Alabama, Georgia, Kentucky, Mississippi, North and South Carolina, Ohio, Pennsylvania, Tennessee and West Virginia in the Appalachian region, as well as other rural communities nationwide. ACC’s statement notes that the projects also could reduce up to 850,000 tons of pollution annually and generate 460 megawatts of clean energy or establish storage for clean energy by 2030.

“The Green Bank for Rural America is a place-based effort that will be a hub for investment and technical assistance to community lenders, local leaders and workforce development partners across the United States,” Donna Gambrell, ACC president and CEO, said in a statement. “We are grateful to the EPA for this recognition. We want to ensure that no communities are left behind and that low-income and disadvantaged communities in Appalachia and other parts of this country benefit from efforts that will result in healthy communities for generations to come.”

The EPA awarded $500 million to ACC as part of the Greenhouse Gas Reduction Fund, a $27 billion federal initiative under the Inflation Reduction Act. The award came from the $6 billion Clean Communities Investment Accelerator, which provides grants to nonprofit organizations in struggling communities, focusing on new technology projects.

According to the award’s structure, the Green Bank must provide $300 million in capitalization funding to community lenders by March 31, 2026, and it must raise $180 million in private capital and reduce or avoid 47,000 tons of pollution by the same deadline. By year four — a deadline of March 31, 2028 — the bank must have provided $400 million in capitalization funding to lenders and mobilized $780 million in private capital, as well as reducing pollution by 595,000 tons.

By March 31, 2031, the bank must have provided $450 million in total funding (including $400 million in capitalization funding) to lenders, and mobilized $1.2 billion in private capital, as well as reducing pollution by 2.5 million tons.

“With climate impacts increasingly impacting all Americans, and especially those in communities that have been historically left behind, EPA knew it had to move swiftly and deliberately to get this historic funding out the door,” EPA Administrator Michael S. Regan said in a statement. “American families will soon feel the benefits in the form of lower energy costs and revitalized communities, while the United States leads the clean energy economy of the future. The [awardees] announced today will deliver transformational investments for American communities, businesses and families and unleash tens of thousands of clean technology projects like putting solar on small businesses, electrifying affordable housing, providing EV loans for young families and countless others.”

In addition to ACC’s $500 million award, the Opportunity Finance Network received $2.29 billion to provide capital and assistance to community lenders nationwide, and Inclusiv received $1.87 billion to deliver funding to credit unions to help customers get loans for energy-focused projects. Other recipients are the Justice Climate Fund and the Native CDFI Network.

Gambrell will serve on the Green Bank’s steering committee, which includes leaders from multiple organizations that will guide and support the Green Bank. Other members represent Main Street America, Grow America, CommunityWorks Carolina, Kentucky Highlands Investment Corp. and regional organizations in other parts of Appalachia. The Green Bank’s CEO has yet to be selected, according to documents provided by the EPA.

At first, the Green Bank will prioritize investments in 582 Appalachian counties — including those in Southwest Virginia — and rural communities across the nation, as well as rural communities of color and Indigenous communities. In addition to financing energy projects, the Green Bank will offer technical assistance to eligible rural areas nationwide.

“I praise the coalition of organizations — close to 50 lenders, community organizations, educational institutions and assistance providers — who came together to contribute to the proposal,” Clint Gwin, ACC board chair and president and CEO of Pathway Lending in Tennessee, said in a statement. “Their participation and collaboration have been phenomenal. This will be a game changer for historically under-invested communities and the community development finance field that supports underserved areas.”

Emory & Henry names interim president

Louise “Lou” Fincher, Emory & Henry University’s senior vice president, has been named interim president of the Washington County-based private college beginning Aug. 1, as President John W. Wells steps down and becomes the school’s first chancellor in late July.

Fincher is also the inaugural dean of the E&H School of Health Sciences, a position she accepted in 2014, and became senior vice president in 2020, according to Emory & Henry’s announcement Monday. Fincher helped launch the health sciences school in Marion, and has led the development of the Southwest Virginia Healthcare Excellence Academy Laboratory School (SWVA-HEALS), which targets the health care worker shortage in Southwest Virginia.

Before coming to Emory & Henry, Fincher served as professor and chair of the kinesiology department in the College of Education and Health Professions at the University of Texas at Arlington, and she was president and CEO of the Joe W. King Orthopedic Institute at the Texas Orthopedic Hospital.

Wells became Emory & Henry’s 22nd president in 2019, and during his tenure, he launched a business school, a nursing school and the van Vlissingen Career Center. In 2017, he joined the school as provost and dean of faculty, after having served as associate general secretary for the General Board of Higher Education and Ministry of the worldwide United Methodist Church, and was chief academic officer at Mars Hill University in North Carolina.

Fincher holds a doctor of education degree with a focus on human performance studies from the University of Alabama, a master’s degree in education with a focus on athletic training from Indiana State University, and a bachelor’s degree from Stephen F. Austin State University. She will remain interim president until Wells’ successor is named by the university’s board of trustees.

FOR THE RECORD May 2024

CENTRAL VIRGINIA

Richmond-based Atlantic Union Bankshares completed its acquisition of Danville-based American National Bankshares, parent company of American National Bank and Trust, on April 1. Based on the $35.31 per share closing price of Atlantic Union common stock on March 28, the transaction value was approximately $507 million. The deal was announced in July 2023, and in February, the Federal Reserve’s Board of Governors approved the acquisition. Under the terms of the merger, American National shareholders will receive 1.35 shares of Atlantic Union common stock in exchange for each share of American National common stock, with cash paid in lieu of partial shares. (VirginiaBusiness.com)

The City of Richmond intends to change the financial structure of the planned new Minor League Baseball stadium for the Richmond Flying Squirrels at the Diamond District in a move that would cut costs by about $200 million but would shift the financial risk to the city and its taxpayers. In a plan that City Council heard on April 8, city officials propose issuing general obligation bonds backed by the city rather than creating a community development authority to issue bonds. If the project fails to generate the expected revenue, however, Richmond would have to pay off the debt. (Richmond Times-Dispatch)

The Hanover County Board of Supervisors approved permits and rezoning for a 1,200-acre data center park on March 27. Denver-based developer Tract is planning a tech park for data centers on Hickory Hill Road, northeast of Ashland, that would have between 30 and 38 buildings. Based on county projections, the park would provide an estimated $40 million in tax revenue per year over the first five years. The 20-year estimate is almost $1.8 billion in tax revenue. The development faced opposition from residents in Ashland and the county’s Beaverdam District. (Richmond Times-Dispatch)

Five developers are vying for the opportunity to build a casino in Petersburg, including a partnership between Cordish Cos. and NFL Hall of Famer Bruce Smith. Other contenders are Bally’s, Penn Entertainment, Warrenton Group, and Rush Street Gaming, which operates the Portsmouth Rivers Casino. As of mid-April, the city was waiting on the General Assembly to decide whether to allow a referendum to take place in 2024 or 2025. (VirginiaBusiness.com)

Tucker Door & Trim, a Georgia-based manufacturer and distributor of doors, windows and specialty millwork for the construction industry, was set to open its first facility in Virginia on April 1, creating 50 jobs, according to a March 20 announcement from Gov. Glenn Youngkin. The company is investing $10 million in a Henrico County manufacturing and assembly facility for fiberboard and fiberglass doors and windows, aimed at increasing production for clients in the Northeast United States. The facility at 2700 Distribution Drive adds to Tucker Door & Trim’s two facilities in Georgia serving wholesale customers. (VirginiaBusiness.com)

Chronic understaffing, misplaced letters and packages and a poorly executed transition to a regional postal hub are among the critical issues plaguing Richmond’s main mail processing facility, according to an audit from the U.S. Postal Service released March 28. In July 2023, Richmond’s mail processing center in Sandston became the first in the U.S. to transition from a local to a regional postal hub as part of the U.S. postmaster general’s 10-year modernization plan. Around that time, Richmond residents began reporting widespread issues with mail delivery. The report included 10 recommendations for the facility to improve, and USPS agreed to nine of them. (Axios Richmond)

EASTERN VIRGINIA

Federal investigators are looking into whether Norfolk-based Sentara Health’s insurance subsidiary misled regulators when it drastically increased premiums in Hampton Roads and areas across the state in 2018 and 2019, according to court documents. Sentara Health Plans, then known as Optima Health, announced in 2017 it was increasing 2018 premiums in Hampton Roads by an average of 81% for its individual plans. Anthem Blue Cross Blue Shield pulled out of the marketplace for the 2018 Affordable Care Act open enrollment period in Hampton Roads, leaving Sentara as the only game in town. The U.S. government is investigating whether Sentara unfairly increased those premiums as it earned more than $655 million in federal subsidies.
(The Virginian-Pilot)

The Virginia Department of Transportation says the Hampton Roads Bridge-Tunnel expansion project will now be completed in 2027. The new end date is part of a renegotiated deal VDOT reached with the construction company tasked with the project, the agency announced March 28. Officials have been meeting with the construction company on the project since 2022, when Hampton Roads Connector Partners told VDOT it “encountered unforeseen cost and schedule impacts since signing the contract in 2019,” according to a news release. The costs of building materials rose sharply during the pandemic, though costs are expected to stabilize this year. (WHRO)

An anonymous William & Mary alumna donated $30 million to renovate and rename a building in honor of former U.S. Secretary of Defense Robert M. Gates, currently the university’s chancellor. According to a March 20 university announcement, Robert M. Gates Hall will house three academic centers: the Global Research Institute, the Institute for Integrative Conservation, and the Whole of Government Center of Excellence. The currently vacant Brown Hall on W&M’s Williamsburg campus will be renovated into Gates Hall, a LEED-certified facility. (VirginiaBusiness.com)

Virginia Beach-born-and-bred entertainment superstar Pharrell Williams will film a movie this spring and summer in Virginia based on his childhood, Gov. Glenn Youngkin announced April 5. There had been rumors about the musical film project, “Atlantis,” in movie trade publications, but Youngkin confirmed the feature is being made in Central Virginia and Hampton Roads. It will be co-produced by Williams, who grew up in Virginia Beach’s Atlantis Apartments housing project. The film is set in summer 1977 in a neighborhood inspired by Atlantis, although it’s a fictionalized account based on the 51-year-old Williams’ life. (VirginiaBusiness.com)

PEOPLE

DAVIS

Jason R. Davis became president and CEO of Norfolk-based law firm Kaufman & Canoles on April 1. Davis, who has been with Kaufman & Canoles since 1997, succeeds William R. Van Buren III as president. Van Buren served as the firm’s president and chairman for 16 years and will remain chairman. Davis has been a member of the firm’s executive committee and co-chairs its health care team. In his practice, he represents and advises hospitals, physicians, long-term care facilities and other health care providers. Davis holds a bachelor’s degree from the University of Virginia and a law degree from William & Mary Law School.
(VirginiaBusiness.com)

 

ODER

G. Glenn Oder is retiring as executive director of the Fort Monroe Authority in October, the authority announced March 29. Oder has led the FMA for the past 12 years after leaving the General Assembly, where he served as a state delegate from 2002 to 2012, representing the 94th District in the House of Delegates. With Oder’s departure, the executive director role will be retitled to CEO, effective July 1. (VirginiaBusiness.com)

 

 

 

NORTHERN VIRGINIA

Arlington County and the Washington Capitals have started talks about potential improvements to the MedStar Capitals Iceplex, the NHL team’s practice facility and headquarters in Ballston. The 18-year-old, 137,000-square-foot county-owned facility also is open to the public and serves as the home ice for college, high school and beer league hockey teams. As of April, discussions were “in the early stages,” and there was “no timeline” for any potential decisions or actions, according to Sergey Kocharov, the Capitals’ head of communications. (ARLnow)

Metro is opening the door to new development on Alexandria’s Eisenhower Avenue corridor, offering roughly half an acre adjacent to the transit agency’s newest office building for a residential or commercial project — or a combination of the two. The Washington Metropolitan Area Transit Authority issued a request for proposals March 28 seeking a developer to ground lease, design and construct a project totaling as much as 300,000 square feet at 2403-2414 Mill Road. The half-acre lot is less than a third of a mile from the Eisenhower Avenue Metro station and Is used for temporary surface parking. (Washington Business Journal)

Monumental Sports & Entertainment CEO Ted Leonsis and Washington, D.C., Mayor Muriel Bowser reached a deal in late March to keep the Washington Wizards and Capitals NBA and NHL teams in the District of Columbia through 2050, effectively ending all negotiations to relocate the teams to Alexandria. Gov. Glenn Youngkin had touted the $2 billion arena proposal announced in December 2023 as possibly creating 30,000 jobs and $12 billion in economic activity for the state, but Senate Democrats blocked a vote on legislation that would have established a state authority to own the property and buildings in Alexandria. (VirginiaBusiness.com)

OmniRide, the bus service overseen by Potomac and Rappahannock Transportation Commission, is facing a $16 million budget shortfall in Prince William County, unless the county can afford a steep subsidy increase sought by the bus system for the budget year beginning July 1. PRTC is subsidized in Prince William through a motor fuel tax that is projected to bring in not nearly enough to cover the $33 million the transit agency is requesting from the county. OmniRide will be forced to cut service if it can’t secure local funding to offset its rising costs. Prince William supervisors acknowledge the county’s need for robust bus service, but in early April, they expressed skepticism they can afford to pay the amount OmniRide is seeking, particularly amid inflation and the drying up of pandemic relief funds. (InsideNoVa)

Deshundra Jefferson, chair of the Prince William County Board of Supervisors, applied pressure on members to raise taxes substantially on data centers, as the board barreled toward approval of next year’s budget. Data centers currently pay a rate of $2.15 per $100 of assessed value on computers they possess, and Jefferson, a newly elected Democrat, is likely to have the votes to pass an increase to $3.70, the maximum allowed under state law. The board is expected to finalize the budget April 23, and it will go into effect July 1. (InsideNoVa)

Tysons-based developer Cityline Partners and Fairfax County planning commissioners hit a stalemate in April over inclusion of workforce-affordable housing in Cityline’s proposed high-rise, which would be part of the developer’s Arbor Row project on 19.4 acres near Tysons Galleria, joining two completed residential buildings. Commissioners opted to postpone a vote in April on the 23-story residential tower at Arbor Row after county staff voiced objections to the developer’s refusal to include workforce-affordable units in the new building. (FFXNow)

ROANOKE/NEW RIVER VALLEY

After approving two solar farms in the past few years and last month denying the largest proposal yet, the Amherst County Board of Supervisors unanimously adopted an update to its utility-scale solar zoning rules March 19. The revised ordinance caps utility-scale solar operations at 50 acres under panel, a measure intended to limit the operations’ scope. At the joint meeting, the Amherst County Planning Commission recommended approval of the ordinance with an added measure to cap 10 megawatts of solar-generated power, but supervisors opted to not include that action. (Amherst New Era-Progress)

Freedom First Federal Credit Union is discontinuing its basic personal checking account, this month notifying more than 20,000 account holders of the change that took effect May 1. The switch makes Freedom First the only major credit union in the Roanoke Valley that would collect monthly fees if account holders don’t maintain a certain balance or have a certain amount of regular paychecks. Under one checking account option, residents must keep a minimum average daily balance of $2,500 or risk a $7 monthly fee. (The Roanoke Rambler)

Roanoke-based Luna Innovations is in danger of losing its place on the Nasdaq due to transaction questions that led the company to withhold its annual report. Luna, which makes and distributes fiber-optic sensing and monitoring technology, announced last month that it was indefinitely delaying its fourth quarter and annual reports after it discovered transaction discrepancies. Luna is no longer in compliance with the stock market’s rule requiring companies to file reports in a timely manner to the federal Securities and Exchange Commission, according to a letter from Nasdaq’s Listing Qualifications Department. (Cardinal News)

Pulaski County will become the owner of a raceway and a historic Minor League Baseball stadium after the properties’ current owner, Christiansburg-based Shelor Motor Mile, donates them to the local government. The donation is the largest gift the county has ever received, according to a statement. The speedway, officially named Pulaski County Motorsports Park, is a 152-acre property located in Fairlawn, while Calfee Park is a 3,200-seat stadium in the town of Pulaski. (The Roanoke Times)

UPS is cutting a daytime package sorting shift at a Roanoke facility, affecting 153 employees. Day-shift employees at the customer center at 3941 Thirlane Road NW by the Roanoke-Blacksburg Regional Airport “will be separated from employment, unless otherwise required by the applicable collective bargaining agreement” by June 3, according to an April 3 letter from the Atlanta-based shipping company to Virginia’s Rapid Response state coordinator. The letter cites a “reduction in volume” and said 120 part-time hourly employees, seven full-time hourly employees, 22 part-time management employees and four full-time management employees will be affected. (Cardinal News)

PEOPLE

POE
SIMMS

Roanoke County’s former assistant director for economic development, Danielle Poe, started her new job as director of economic development for Franklin County on April 15. At Roanoke County, Poe was responsible for real estate development, business retention and expansion and key community partnerships. She succeeds Beth Simms, who left the Franklin County post in October 2023 after more than two years to become Patrick County’s administrator. Poe is the 2024 chair of Leadership Roanoke Valley and is a Radford University alumna. (VirginiaBusiness.com)

 

 

SHENANDOAH VALLEY

American University announced on March 18 that James Madison University President Jonathan Alger will be its next president, starting July 1. Alger joined the Harrisonburg public university in 2012. He will be the 16th president of AU, a private university in Washington, D.C., replacing President Sylvia Burwell. During his tenure, JMU more than doubled its endowment, received R2 research classification from the Carnegie Commission on Higher Education and joined the FBS level in NCAA Division I football. Alger also launched the Valley Scholars program, which provides scholarships for first-generation students from the Shenandoah Valley. (VirginiaBusiness.com)

Bridgewater College will receive a $250,000 grant from The Mary Morton Parsons Foundation if the college matches the amount in cash and pledges by November, the college announced in mid-May. The matching grant from the private foundation would help fund the $8.5 million renovation of Bowman Hall, which was built in 1952 and 1953. The renovation started last spring and is set to end in August. Bridgewater College previously received a $250,000 Mary Morton Parsons Foundation grant in 2018, although that grant was a two-to-one challenge. Bridgewater College used the funding to renovate and expand its Mack Library into the John Kenny Forrer Learning Commons. (Daily News-Record)

Strasburg-based First National entered into a definitive merger agreement to acquire Prince George-based Touchstone Bankshares in an all-stock transaction worth approximately $47 million, First National announced March 26. The parent companies’ merger combines community banks First Bank and Touchstone Bank to create a bank with expected total assets of about $2.1 billion, $1.5 billion in loans and $1.8 billion in deposits. The resulting company is expected to be the ninth largest Virginia community bank by deposits and will have 30 branch offices across Virginia and two branches in North Carolina. (VirginiaBusiness.com)

HP Hood, a nationally branded dairy processor, will invest more than $83.5 million to expand operations at its Winchester-area facility in Frederick County, Gov. Glenn Youngkin announced April 9. The project includes upgrades to production and packaging equipment as well as construction of additional warehouse and cooler space. HP Hood’s expansion will provide increased production capacity that will fund technology allowing Hood to offer new products, according to a news release. Constructed in 2000, the Winchester-area facility employs more than 600 workers. In 2013, HP Hood invested $84.6 million to expand the operation, increasing ultra-high temperature production capacity. (VirginiaBusiness.com)

Kraft Heinz plans to invest an estimated $26 million in its Frederick County plant to lower carbon emissions, part of the up to $170 million in federal funding the company is receiving from the U.S. Department of Energy. The department selected Kraft Heinz to receive the funding for implementing clean energy projects on March 25. The Chicago- and Pittsburgh-based company operates a manufacturing facility in the Fort Collier Industrial Park, located north of Winchester at 220 Park Center Drive, where it produces Capri-Sun and Kool-Aid beverages, among other food products. Kraft Heinz will install heat pumps, electric heaters and electric boilers at 10 facilities. (The Northern Virginia Daily)

Winchester City Council unanimously approved a rezoning request on March 26 from Winchester Acquisition Partners, advancing the investment group’s plans for a mixed-use redevelopment of Ward Plaza. The declining shopping center built in the 1960s sits on 22 acres in the 2200 block of Valley Avenue. Winchester Acquisition Partners, headed by McLean-based John. W. “Wes” Gray Jr., plans to build 453 residential units, offices, a grocery store and other retail stores. The investment group needs the council to approve site and subdivision plans and to obtain required building permits before it can begin construction. (The Winchester Star)

SOUTHERN VIRGINIA

A new aviation training center at Danville Regional Airport is one step closer to reality. The Danville Planning Commission voted 6-0 during its April 8 meeting to recommend granting a waiver of yard setback requirements so the project could move forward. A proposed 12,532-square-foot hangar will be the location of the new Danville Aviation Training Facility. Danville Community College’s aviation maintenance technology program and Averett University’s aeronautics program will use the training facility. (Danville Register & Bee)

Chicago-based Foresight Health, the company that purchased the long-shuttered Pioneer Community Hospital in 2022 from Patrick County Real Estate, sold the property March 12 after its plan to reopen it as a critical access facility collapsed. According to a deed filed at the Patrick County Circuit Court clerk’s office, Foresight sold the 10-acre property in Stuart to Chicago-based Wolf of  Wabash for $1.6 million. Foresight has entered into an agreement with the new owner to lease back the property and use the proceeds of the sale to modernize the building and open a behavioral health and substance abuse program. (Cardinal News)

A project that will bring 69 apartments to downtown Martinsville has received another financial boost from the state. A $2.8 million grant from the Industrial Revitalization Fund, announced March 29 by Gov. Glenn Youngkin, will help pay for planned renovations at the One Ellsworth development, a construction project that will turn a former BB&T bank building into affordable housing. Developer JRS Realty is currently working to remove asbestos from the building, which was constructed in 1974. (Cardinal News)

Matt Penning, director of development for Reston-based Milestone Towers, a wireless tower developer, made a presentation at the April 8 Patrick County Board of Supervisors meeting. The company has signed a lease with Verizon for a cell tower on Patrick County High School property, according to Penning. Three other carriers could be hosted by the proposed 199-foot-tall tower. A supervisor noted parents are concerned about safety of children participating in extracurricular activities near the proposed tower. The board voted to table any action until its next meeting. (Martinsville Bulletin)

Thunder Road Harley-Davidson and South Boston Speedway have signed a new sponsorship agreement that will have the Danville-based Harley-Davidson motorcycle dealership continue as the title sponsor for the speedway’s showcase pre-Fourth of July NASCAR Late Model Stock Car Division event for the next three years. The Thunder Road Harley-Davidson 200 on June 29 is the opening race of the Virginia Late Model Triple Crown. This season marks the 11th year Thunder Road Harley-Davidson has sponsored the event. (Danville Register & Bee)

A new dual-branded hotel under Hilton’s Tru and Home2Suites brands was approved by Danville City Council April 2. Council members voted 9-0 to grant a special-use permit for a waiver allowing RMS Investments in Raleigh, North Carolina, to exceed the city’s 50-foot height limit so it could build a hotel that would employ about 30 people at 1080 Riverside Drive. The new hotel will be 53 feet tall. (Danville Register & Bee)

The Virginia Museum of Natural History will soon unveil its largest addition since the facility opened in Martinsville in March 2007. Construction of the Jean S. Adams Education Pavilion, a 1,221-square-foot, three-season, open-air programming and visitor area, is currently underway, with completion anticipated this summer. The museum is currently leading a public campaign to raise funds for the first-ever life-sized model of Pelagornis sandersi, the prehistoric bird with the largest known wingspan — about 20 to 24 feet. (Martinsville Bulletin)

SOUTHWEST VIRGINIA

The Appalachian Regional Commission awarded Washington County $100,000 to improve broadband service on the Virginia Creeper Trail and Mendota Trail, according to a March news release from U.S. Rep. Morgan Griffith’s office. The funding, with a $130,000 local match, will help the county offer 100 Mbps/20 Mbps download/upload speeds along the two trails. The county and an engineering firm will develop coverage studies and research how best to deploy broadband fiber before moving onto design, construction and deployment, which should be finished by the end of 2024. (Cardinal News)

The Breaks Interstate Park Commission received a $300,000 Abandoned Mine Land Economic Revitalization program grant to add a swimming pool to the Breaks water park, the Virginia Department of Energy announced March 26. Adding the pool is expected to increase visitation for the water park, which draws 12,000-plus visitors each season. Scheduled to open Memorial Day weekend, the new pool also is expected to increase annual revenue by nearly $100,000 and to create five to seven seasonal jobs. Breaks Interstate Park’s annual revenue is more than $3 million, and the park has 10 full-time employees and 85 seasonal workers. (News release)

Emory & Henry College officials are planning a restructuring to reduce the school’s budget that will likely require small reductions in faculty, staff and programs over the next three years, Jennifer Pearce, E&H’s vice president for external affairs, said April 8. The number and positions that could be impacted, as well as the timing of layoffs, aren’t known, although the college will likely make a decision on the numbers by the end of June. John Wells, president of the 188-year-old private liberal arts college, spoke to the college’s board of trustees about the restructuring in late March. (Cardinal News)

A 95-room Hampton Inn in Norton opened April 12, although officials were still planning a grand opening ceremony as of early April. SAI Properties announced in early October 2023 that it would open the Hampton Inn in the previously vacant building on the corner of Park Avenue and 11th Street. From 2002 to about 2019, the building was the Norton Holiday Inn. The Hampton Inn includes a spa, a meeting/event space, a pool and a fitness center. According to hotel official Vik Kshirsagar, the hotel has only exterior work remaining. (The Coalfield Progress; Kingsport TimesNews)

In a March 21 meeting, the Virginia Coalfield Economic Development Authority approved two loans and one grant for projects in Buchanan, Russell and Wise counties with the potential to cumulatively create 107 full-time jobs and 40 additional construction-related jobs. The Buchanan County Industrial Development Authority will receive an up to $2.214 million loan to help with the construction and development of an office building at the Southern Gap development. VCEDA approved an up to $500,000 loan to the Russell County Industrial Development Authority for an unannounced project. VCEDA also awarded an up to $186,091 grant to Mountain Empire Community College for workforce development and training. (Bristol Herald Courier)

Abingdon-based Virginia Highlands Community College and Bristol, Tennessee-based King University partnered on an agreement to streamline admissions and coursework for students progressing in the registered nurse to bachelor of science in nursing degree pathway, the schools announced April 3. Under the agreement, VHCC students who are earning associate degrees in nursing and have registered nurse licenses are guaranteed admission to King’s RN-BSN program, which is fully online. Students with qualifying grades of C+ or better will be classified as juniors, and candidates can then complete King’s RN-BSN program in three semesters, rather than four. (News release)

 

Making headway

With recent expansions nearly complete, and a new Southwest Virginia port under consideration, it’s been a busy year for the commonwealth’s inland ports.

The industrial market from Hampton Roads to Richmond has expanded in terms of industrial space available, says Devon Anders, president of the Harrisonburg-based InterChange Group and chair of the Virginia Maritime Association’s Valley Logistics Chapter. Millions of feet of warehouse space being built near the Virginia Inland Port will allow the Port of Virginia to better compete against other East Coast ports, he says.

The trend of industrial development from Northern states — including Pennsylvania, West Virginia and Maryland — moving southward into Virginia also holds economic promise for the commonwealth’s inland ports, as new business translates into more potential freight.

Development “[is] encouraging for the region, and bodes well for the ports,” says Joe Harris, spokesperson for the Port of Virginia, which oversees both the Virginia Inland Port in Front Royal and the Richmond Marine Terminal on the James River.

Along with capacity for nearby warehouse space, $15 million in structural improvements are nearly finished at the Virginia Inland Port. That includes three new rail sidings and the repurposing of four rubber-tire gantry cranes from Norfolk to the inland port, allowing the Port of Virginia to retire older, less-efficient equipment. The rail sidings will allow the inland port to handle more freight, and the updated conveyances will make the port more efficient overall, increasing terminal capacity by about 40%.

With completion expected later this year, the improvements also include technological upgrades that will help prepare for any future expansions needed, Harris says.

“The goal is to go ahead and prepare it for the next 20 years to make sure there’s ample capacity,” he adds. “We look at this project just like we do with our multimillion-dollar projects in the harbor. This is about keeping ahead of any demand curve, staying competitive and investing because the overall environment — materials, finances, timing, etc. — is right for such a project.”

Additionally, $3 million in improvements at the RMT, which is owned by the City of Richmond and leased to the Virginia Port Authority, are scheduled to wrap up this year. Changes to the front gate will allow faster processing of trucks exiting and entering the terminal and make way for the installation of two new scales. The fenced, 40-space drop lot will give truckers an after-hours option for leaving containers in a secure area adjacent to the terminal.

Both projects are part of the port’s $1.4 billion Gateway Investment Program to modernize and upgrade port capacity, first announced in April 2022.

Improvements to the port’s maritime terminals, including dredging and widening projects in the Norfolk Harbor, automation at Norfolk International Terminals and upgrades at Virginia International Gateway in Portsmouth, also aid the state’s inland ports, Anders says.

Additionally, the Port of Virginia, already the East Coast’s largest intermodal rail port, will be expanding Norfolk International Terminals’ central rail yard, adding capacity to accommodate 455,000 additional twenty-foot equivalent units (TEUs) by rail each year, bringing the port’s overall rail capacity to more than 1.8 million TEUs.

Adding rail capacity, instead of putting more trucks on the road, is another positive draw for Virginia when companies look to relocate or expand, “especially for those distribution centers coming down out of Pennsylvania, Maryland and West Virginia,” Anders says.

It’s hoped that this extra capacity will translate into a catalyst for development around the inland ports as well. 

While the Richmond and Front Royal inland ports’ construction projects are nearly done, a proposed Southwest Virginia inland port is still under study.

In the 2024-26 state budget, legislators allocated $2.5 million to fund continued feasibility studies on the placement of an inland port at Oak Park in Washington County. While that’s less than the $10 million the General Assembly allocated for planning, engineering and site acquisition in 2023, it represents an important show of good faith in the project, says state Sen. Todd Pillion, R-Washington County, one of the inland port’s proponents.

He views an inland port as not only an economically viable substitute for the region’s former coal-dependent economy, but also as a means to expand Virginia’s reach westward for cargo shipments and rail capacity while creating sorely needed jobs and alleviating some of the heavy truck traffic along the Interstate 81 corridor.

“It’s a huge prospect not only for Southwest Virginia, not only for the industry that’s already there, but for the industry it could bring,” Pillion says. “Having more traffic coming from the Port of Virginia would serve the whole state and could be a total game changer for Southwest Virginia.” 

Southwest Va. Big Deal: Land ho!

The largest business deal announced during the past year in Southwest Virginia is an agreement between Dallas-based Fortune 100 natural gas and propane pipeline transport company Energy Transfer, Virginia’s nonprofit Energy DELTA Lab and Wise County to develop energy infrastructure in the region.

Under the agreement, the partners will work with energy companies and electric utilities to promote development of 65,000 acres of reclaimed coal mining lands as part of a public-private regional economic development campaign.

The partnership will pursue development using an “all-of-the-above” energy technology strategy. This aligns with Gov. Glenn Youngkin’s 2022 Virginia Energy Plan, which aims to fulfill the 2020 Virginia Clean Economy Act’s 2050 mandate for generating electricity statewide from renewable, carbon-free energy sources by harnessing a mix of energy sources such as nuclear, hydrogen and natural gas in addition to wind, solar and battery storage supported by Virginia Democrats.

It’s hoped that the deal could attract up to $8.25 billion in private capital investment and generate more than 1,650 jobs, according to a news release from the governor’s office.

“It’s safe to assume that energy jobs on average are going to exceed the median household income for Wise County of approximately $47,000 and per capita income below $24,000,” says Will Clear, managing partner of Bristol, Virginia-based consultancy Virginia Energy Strategies and an adviser to DELTA Lab.

The Energy DELTA Lab will be the primary developer of the project, and more than a dozen projects that could generate nearly 1 gigawatt of power were under consideration as of November 2023.

Energy Transfer’s vast land holding, which is managed by Penn Virginia Operating Co. (PVOC), is primarily located in Wise County and includes ownership of surface and subsurface rights.

“The important thing about the agreement is that there is now something in writing with PVOC, so we can go to investors, developers or grant providers and show them that the landowners are onboard with leveraging the land for potential energy-related projects,” Clear says. “I expect 2024 to be a year when land-lease deals will get done, the first of which would be around midyear. There are regulatory steps that first must be taken.”

Clear declined to name the companies eyeing the land for development but added, “I can say they have done transmission studies and have spent hundreds of hours evaluating this land.”

U.S. Rep. Morgan Griffith, R-9th District, who represents much of Southwest Virginia, Martinsville and parts of the New River Valley, says energy has been the foundation of the area’s economy for more than 100 years.

“This deal will bring hundreds of jobs related to so many energy sources such as nuclear, wind, solar and hydro,” Griffith says. “This is a huge parcel of land. … It has the potential to have a positive and dramatic effect on our area. We are striving to bring cutting- edge technology to old energy sources.”

Much of the surface of this land hasn’t really been utilized, Clear says: “It’s been mined — and so, it’s been disturbed — but it’s in a great position to deploy alternative energy assets such as solar and perhaps wind power.

“Because of the land disturbances that have been made, the rock is easy to move around,” Clear explains. “The land is essentially flat. Very little additional excavation is necessary.”

Wise County Administrator Mike Hatfield said in a statement, “Large portions of Wise County have often been difficult to develop, given limited access due to private and federal ownership. This agreement will create game-changing opportunities that simply did not exist before.”

One of three industrial sites that the Energy DELTA Lab is developing in Wise County, including on land owned by Energy Transfer, is the 4,000-acre Bullitt site on the border of Lee County. The site could hold multiple industrial projects with adjacent energy sites to power on-site demand, and the complex is situated over abandoned mines that contain nearly 10 billion gallons of water.

The team also plans to develop the Data Center Ridge campus on the Bullitt site, converting a 400-acre previously mined property to a 1-gigawatt, multi-tenant data center campus that would be powered by the planned adjacent energy projects.

Associate Editor Katherine Schulte contributed to this story. 

Southwest Va. Year-in-Review: A wide range

A local connection helped bring an impactful business project to Southwest Virginia. Daniel Kennedy, who was born and spent his early days in St. Paul, was instrumental in bringing home one of the largest manufacturing deals in years.

Data center storage rack manufacturer Tate struck a deal in early November 2023 to occupy a long-vacant, 280,000-square- foot facility in St. Paul, along the Russell and Wise counties border. Tate began moving into the facility in December 2023, with plans to add 170 jobs over the next four years, according to Jonathan Belcher, executive director of the Virginia Coalfield Economic Development Authority (VCEDA). The project includes a $14.9 million capital investment, he adds, mostly to cover equipment.

“This is big,” Belcher says. “It’s the most major manufacturing jobs announcement in the area in a long time.”

The deal gives an economic boost to St. Paul, which has mostly relied on outdoor tourism because of its access to the Spearhead Trails and proximity to the Clinch River State Park.

Tate’s access floors division, which focuses on the research, development and manufacturing of raised-access floors, airflow management and infrastructure solutions for commercial and data center applications, opened the plant on schedule in January.

Kennedy, a George Mason University graduate, is president of the Americas for Tate, a subsidiary of the Ireland-based Kingspan Group, where he’s worked for the past 14 years.

Kennedy moved away from St. Paul at an early age but visits family there regularly, especially during summers, he says.

“I know the area’s work culture and the history of the city,” says Kennedy, who now lives in Lovettsville. “They put together an attractive package for us, we did our labor studies, and the area really meets our needs.”

Belcher says, “Having people from our area giving back to the community through business projects is a method that has worked well for us.”

U.S. Rep. Morgan Griffith, R-9th District, who represents much of Southwest Virginia, says, “We love to bring anything data center-related to our area. We have the power and the water and the space to do it. [And] we know that if you are from Southwest Virginia, even if you move away, your heart is always with us here.”

Hiring is underway, but Tate’s facility won’t be fully staffed from the start, Belcher says. The company, which held a job fair on Jan. 4, will be hiring several dozen workers at a time.

“There aren’t many buildings of that size in this part of the state, and this is needed because of the data center business we have,” Belcher says. “The location means that the building’s data center function will not only serve Virginia but can extend as far as the Midwest.”

The Russell County Industrial Development Authority has owned the building for about 2 ½ years.

Ernie McFaddin, executive director of the Russell County IDA, says, “This is really huge for our area. These are high-paying jobs with an average starting salary of $58,000, with full benefits.”

The project “will pull from locals and others in our area, including eastern Tennessee, and spur more much-needed housing and other entrepreneurial business endeavors.”

Dickenson County

Dickenson County is partnering with Kentucky-based developer Southwest Properties and Kentucky-based Addiction Recovery Care (ARC) to build a 112-bed rehabilitation center for substance use disorders that’s expected to open in the first half of 2024, according to Dana Cronkhite, the county’s economic development director. She estimates the Clintwood facility, Wildwood Recovery Center, will create 50 jobs.

Those who graduate from the ARC program become eligible to be hired as peer support specialists through the center’s “Crisis to Career” program. Other vocational programs will be offered for individuals with other interests and/or skills, Cronkhite says.

Dickenson has a population of about 14,000 and ranks nationally as having one of the highest percentages of residents with a substance use disorder, Cronkhite says. Local household median income is approximately $40,000, according to the U.S. Census Bureau.

The project will be one of the first in the state to develop a substance use disorder treatment program as a form of economic development. Wildwood Recovery Center will be Virginia Medicaid-credentialed.

“There’s a need in the county for this rehabilitation,” Cronkhite says. “There can’t be a better ‘win’ for Dickenson County and our region. By treating individuals with substance use disorder, we are working to rebuild our workforce and our community.”

By building the center through modular construction — building off-site and assembling the structure on the property — rather than stick-built construction, the project reduced its costs from $12 million to $4.5 million, Cronkhite says.

In December 2023, the county announced plans for a similar women’s facility from ARC, which will be located in the former Ervinton Elementary School in Nora.

The Ervinton property was conveyed to the county from the Dickenson County School Board as surplus property and was subsequently conveyed to the IDA for development. Cronkhite anticipates it will house more than 50 beds. Renovations are expected to begin in 2024 and be completed by the end of 2025.

Tazewell County

Pennsylvania-based CNX Resources, a natural gas producer, is expanding its footprint in Southwest Virginia, adding eight executive office jobs, each paying at least $100,000. The office will be in Richlands in Tazewell County.

Meanwhile, Belcher says, it’s important to note that CNX Resources will be retaining its 67 current jobs there.

“We were worried we might lose this deal to West Virginia,” Belcher says, because CNX had previously stationed its regional headquarters in West Virginia and was considering returning it to the neighboring state.

“The incentives we were able to offer and a personal visit from Gov. Youngkin with the company helped tip the regional headquarters project in Virginia’s favor,” he says.

Pennsylvania-based business process outsourcing firm AnswerNet could bring as many as 30 remote jobs to the area, Belcher says. VCEDA has worked with the company to advertise remote teleworking jobs in the region ranging from call center agent to marketing and network administration jobs.

“This was due to some outreach by our agency to AnswerNet and similar firms to attract IT jobs to the region — a strategy we have been doing for 25 years,” Belcher says. “In the case of AnswerNet, they had 30 remote work-from-home positions they were having difficulty being able to fill [nationally], and they were willing to work with us and the [Southwest Virginia Workforce Development Board and the Virginia Employment Commission] to try and fill them in our region.”

R&R Automation announced in November 2023 that it would bring 27 jobs to Tazewell County in a $2 million expansion of its existing facility. R&R performs machine shop and fabrication work and supplies hardware to the natural gas industry.

Additionally, wealth management firm Ronald Blue Trust announced in October 2023 that it would bring 22 jobs to Wise. It is locating in an existing office building that is owned by the county and financed by VCEDA.  

United Way of SWVA spins off workforce programs

The United Way of Southwest Virginia is spinning off its workforce development programs by establishing a new nonprofit, EO, to oversee them, UWSWVA announced Feb. 20.

EO, which stands for Endless Opportunity, is also Latin for “go.” The new nonprofit will manage what has been the UWSWVA’s $10 million portfolio of grant-funded workforce development programs, including the Ignite Career Expo, Ready Regions, the Rural Summit and the $23 million Regional Workforce and Child Development Hub, which UWSWVA has been building in Abingdon by converting a former Kmart.

The United Way chapter will focus on convening partners, identifying community needs and harnessing the financial resources and capacity to address those needs, while EO will be “more of a program implementer and house and deliver and manage on the cradle-to-career continuum,” from early childhood initiatives to programs to directly address labor shortages, said Travis Staton, now president and CEO of EO and interim president and CEO of UWSWVA.

EO “would be the implementer of some of those programs and initiatives so that United Way can really focus on a high level, getting resources, communicating the need, the challenges, figuring out what partners and resources need to tie together to meet those needs,” Staton said. “But EO would be the implementer of those initiatives and of those programs, so it would technically be almost like a partner agency of the United Way.”

UWSWVA will continue to serve as a fundraiser and will continue to host events like its Impact Awards. The nonprofit will also remain an organizer for disaster response efforts, according to a news release.

“Over last 18 years, we’ve just had incredible growth, and as things continue to grow and get more complex, it will help, I think, both organizations with their mission delivery, and be able to concentrate and focus on their roles in the community … so it really is about mission amplification for both organizations,” Staton said.

UWSWVA expects the transition to take six months, and EO will share its logo and brand in the coming weeks, according to a news release. EO employs 40 people, according to Beth McConkey, UWSWVA’s vice president of development and outreach, and the reorganized UWSWVA will have five full-time staff members.

A search for the UWSWVA’s new leadership will begin in March, with the intent to have Staton’s successor in place by June 30, McConkey said in a statement.

Currently, both nonprofits have the same members on their boards of directors, but over the transition period, the boards will be diversified, McConkey said, and the boards will not have a more than 50% overlap in representation.

As for the Regional Workforce and Child Development Hub, EO owns the building and will manage and operate the facility, as well as the hub’s workforce development programs. Ballad Health will manage the facility’s child care portion. UWSWVA will lease office space in the facility for its headquarters, Staton said.

The hub, which will house STEM labs for teacher training, an early childhood care and education center, workforce development and training programs and a shared services alliance for child care providers in the region, is scheduled to be complete at the end of July or early August.

Through its youth workforce programming, the center will serve 21 school districts and will have about 30,000 students a year visiting the center for learning and hands-on activities with employers.

“That requires a lot of capacity and a lot of resources,” Staton said, “and so EO will be well-positioned to focus and concentrate on that day-to-day delivery of programs and operations to drive that impact, and United Way can still function at that higher level of, ‘Well, what additional resources are needed for Southwest Virginia? What other community needs even besides child care and workforce need to be addressed? And can we raise support and resources for those causes, too?’”

UWSWVA’s programs and initiatives serve the counties of Bland, Buchanan, Carroll, Dickenson, Floyd, Giles, Grayson, Lee, Montgomery, Pulaski, Russell, Scott, Smyth, Tazewell, Washington, Wise and Wythe and the cities of Bristol, Galax, Norton and Radford.

Addiction recovery center set to open in Dickenson County

Kentucky-based Addiction Recovery Care is expanding its addiction recovery services into Virginia. Opening in Dickenson County in early to mid-2024, Wildwood Recovery Center, ARC’s first recovery center in the state, will provide treatment for substance use disorders in a residential program allowing individuals to stay for up to one year.

ARC’s mission goes beyond recovery, also providing job training, educational opportunities and post-treatment employment options.

“We have developed a very nimble training and education division inside the organization, and so we can meet with an employer who has labor needs and we can tailor training programs to meet those needs, and we can supply employees to them,” ARC President Matt Brown says.

ARC plans to offer skilled trades and vocational training such as welding, carpentry and culinary arts at the center.

Dickenson County Economic Development Director Dana Cronkhite says the site of the recovery center was intentional, located across the road from the Red Onion Industrial Park, which is set to be completed around the same time. The Dickenson County IDA hopes to leverage ARC’s workforce training programs when marketing the industrial site.

“The Dickenson County leadership and Board of Supervisors and Industrial Development Authority recognize the correlation between substance use disorder and the deficits in our workforce, and this is our way to try to work towards correcting that issue,” Cronkhite says.

The center has 112 beds for men, and ARC has announced plans to add a women’s center in the county later. The men’s center will create 50 jobs in the county, including nurses, clinicians and peer support specialists, as well as daily support staff such as certified maintenance workers and kitchen staff.

Peer support specialists use their firsthand recovery experience to help others who are in and seeking recovery from substance use disorders. In Kentucky and Virginia, individuals who have been in recovery for a year and meet requirements can become certified peer support specialists and are then eligible for employment with ARC.

Dickenson County is using $250,000 from the Virginia Opioid Abatement Authority to purchase furniture, fixtures and equipment for the center. Contractors were on track to finish construction at the facility by the end of 2023. Occupancy certifications and licensing and credentialing must be obtained before ARC can begin accepting clients at the center. That process, Brown says, will begin once construction is complete.