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Tag: Southwest Virginia

United Way launches child care initiative

The gap between the need for child care and its availability and accessibility is nearly three times higher than the state average in Southwest Virginia, where parents lack child care services for more than 7,000 children under age 5, according to a 2019 report from the Bipartisan Policy Center.

Child care is not cost-effective for many Southwest Virginia families because it can nearly cancel out a parent’s take-home pay, says Travis Staton, president and CEO of the United Way of Southwest Virginia.

With the median household income in some Southwest counties hovering around $30,000, the most a minimum wage worker can expect to bring home after Social Security and taxes is around $15,200 a year. But the average annual child care cost in the region is around $10,600, according to a 2020 United Way report.

“If we want to get people back to work and gainfully employed and get our employers running at their fullest capacity, we’ve really got to work to fill those gaps,” Staton says.

In December 2021, the United Way of Southwest Virginia launched Ready SWVA, an initiative to expand access to affordable child care, strengthen the provider network and increase the number of credentialed teachers.

If the General Assembly grants its $7 million request, United Way will adapt buildings into five new child care centers across the region, creating at least 324 additional slots each year for children under age 5. Another $9 million in state funding would cover operations for three years, including hiring 62 educators at a base pay of $15 per hour plus benefits.

Child care fees for parents and guardians working or attending college would be determined on a need-based sliding scale, possibly through a private subsidy fund.

To help lower costs, the nonprofit will form a shared services alliance, consolidating back office functions for 206 local child care providers and the five new centers.

As another part of Ready SWVA, United Way also will partner with local colleges and universities to provide incentives, resources and technical support for child care teachers to enroll in the state’s Get a Skill, Get a Job, Get Ahead (G3) program for early childhood and K-12 education.

“This is transformational,” says House of Delegates Majority Leader Terry Kilgore, R-Gate City. “Bringing business training, education and child care all into the same room is going to create a win-win for everybody.”

Homes inventory declined sharply last month in Va.

Virginia’s inventory of homes continues to decline, but buyer demand remains high, according to a report released Tuesday by Virginia Realtors.

At the end of November, there were 16,242 active listings across the commonwealth, nearly 25% fewer than the same time last year.

The rate of decline in homes on the market slowed down over the summer but began to fall sharply in October, according to the report. The total supply in Virginia’s housing market is about one-third of the level it was five years ago.

Demand remains high. In November, there were 12,134 sales, a 3.7% increase from the same month last year.

“The housing market remains very resilient in Virginia,” Virginia Realtors Chief Economist Lisa Sturtevant said in a statement. “There are some headwinds — including the rise in omicron cases and the potential for interest rate hikes — but most signs point to continued strong demand in the months to come.”

Strong demand has raised prices. The statewide average sold-to-list price ratio in November was 100.6%, indicating that on average, a home that sold in Virginia closed at a price that was 0.6% higher than the seller’s asking price. The median sales price was $355,795, an 8.3% increase from the comparable period last year. There was about $5.3 billion in volume sold in November, up 9.9% compared to a year ago.

The year-to-date median sales price statewide was 9.4% higher than this time last year, which is about a $30,000 increase. Within the regional markets, the strongest price growth continues to be in Northern and Eastern Virginia. Price growth has also been strong in parts of Southern and Southwest Virginia.

Homes also continue to sell faster. In November, the statewide average days on market was 26 days, five days less than this time last year.

“Local housing markets across Virginia continue to see strong buyer demand, but very low inventory remains a challenge,” Virginia Realtors 2022 President Denise Ramey said in a statement. “It will continue to be a strong sellers’ market as we head into 2022.”

Virginia Realtors, formerly the Virginia Association of Realtors, is a trade association representing 36,000 realtors in the residential and commercial real estate business.

Southwest Va. project will help manufacturers enter wind energy supply chain

Public-private campaign InvestSWVA announced Tuesday the launch of an economic development initiative designed to help Southwest Virginia manufacturers find entry points in the supply chain for wind energy equipment components.

The initiative, called Project Veer, will connect Southwest Virginia manufacturers with industry experts, public sector partners, the Hampton Roads Alliance, Dominion Energy Inc., Appalachian Power and GO Virginia Region One’s economic and workforce development organizations.

Construction on Dominion’s 2.6-gigawatt Coastal Virginia Offshore Wind (CVOW) project will begin in 2024. Dominion plans to build the 180 wind-turbine farm 27 miles off the coast of Virginia Beach. Two turbines have been built as pilots.

“Dominion Energy Virginia is actively engaging business communities to bring offshore wind supply chain economic opportunities to all regions of the commonwealth,” John Larson, Dominion Energy director of public policy and economic development, said in a statement. “We look forward to working with Project Veer to tap into the strong manufacturing legacy of Southwest Virginia to help the region capitalize on the growing wind energy industry.”

Project Veer builds on recommendations from a study conducted by the Hampton Roads Alliance that exposed gaps in the supply chain and defined how manufacturers could fill them. The alliance worked with Aberdeen, Scotland-based energy consulting firm Xodus Group Ltd., which is part of the project team, and Carlsbad, California-based BW Research Partnership to assess the offshore wind supply chain and conduct a gap analysis for the Hampton Roads metropolitan area and Southern Virginia.

“Renewable energy developers and original equipment manufacturers (OEMs) need partners who produce quality components and deliver them on time,” Will Payne, managing partner of Coalfield Strategies and project lead for InvestSWVA, said in a statement. “We have partners who fit this bill in Virginia’s Southwest. Now we have some infrastructure to help them explore their entry into the burgeoning wind energy market, while leveraging the energy industry experience many of them already possess.”

The project received funding from the GO Virginia Region One Council, the Virginia Tobacco Region Revitalization Commission and Coalfield Strategies.

InvestSWVA is a public-private business research, attract and marketing campaign launched under the umbrella of the Virginia Tobacco Revitalization Commission, a 28-member body created by the General assembly in 1999 to promote economic growth and development in tobacco-dependent communities using proceeds of the national tobacco settlement.

Two Va. projects are finalists for $100M U.S. EDA grants

Two Virginia projects — one to make Central Virginia an advanced pharmaceutical manufacturing hub and one to support the transportation and logistics cluster in Southern and Southwest Virginia — are two of 60 finalists for the U.S. Economic Development Administration’s Build Back Better Regional Challenge, which will provide awardees with up to $100 million each.

The pharmaceutical project is based in Central Virginia.

“We’re thrilled to have the Richmond MSA’s proposal on advanced pharmaceutical manufacturing selected as among the top 10% of all proposals submitted,” Jennifer Wakefield, president and CEO of the Greater Richmond Partnership, said in a statement. “This is a critical win for the region and an important next step in the work to revolutionize how pharmaceuticals are made here in the U.S.”

A Richmond-based coalition of public and private organizations proposed the Advanced Pharmaceutical Cluster Growth Project, which aims to develop and scale the advanced pharmaceutical industry in the Richmond/Petersburg region. The initiative’s founding leadership board includes Activation Capital, AMPAC Fine Chemicals, the city of Petersburg, the city of Richmond, Civica Inc., the Community College Workforce Alliance, the Greater Richmond Partnership, Medicines for All Institute at Virginia Commonwealth University, Phlow Corp., the Virginia Economic Development Partnership, Virginia’s Gateway Region and Virginia State University.

“Growing the advanced pharmaceutical manufacturing industry in Central Virginia will benefit not only the region, but the nation, as it is an issue of national security, as many of our country’s most essential medicines are currently being produced overseas,” Activation Capital President and CEO Chandra Briggman said in a statement.

As a finalist, the coalition will receive $500,000 to develop a plan to scale the existing pharmaceutical manufacturing and research and development cluster. The plan has six component projects that would invest in infrastructure, workforce development and education, as well as construct a pharma manufacturing demonstration facility and expand a wet lab space in Activation Capital’s VA Bio+Tech Park in Richmond.

The VA Bio+Tech Park is a life sciences and emerging technologies development. With 1.2 million developed square feet on 34 acres, the park is home to nearly 70 companies, research institutes and state or federal laboratories.

Virginia Tech proposed “The Future of Transportation and Logistics” project to support the local transportation and logistics cluster in the area and to accelerate the adoption of electric and automated vehicles. Tech’s plan uses three projects to provide more accessible technology testbeds and networks for tech transfer, business development support and talent development services.

The proposal builds upon the regions’ existing strengths in vehicle manufacturing, digital technology research and development and vehicle test and evaluation, Tech said in its proposal.

The U.S. EDA received 529 applications in the challenge’s first phase. In the second phase, finalists will compete for implementation assistance, and the EDA will select 20 to 30 winners to receive up to $100 million to implement three to eight projects that support an industry sector. The Build Back Better Challenge uses $1 billion of the $3 billion in supplemental funding that the agency received under the American Rescue Plan.

Established in 1993, the Virginia Biotechnology Research Partnership Authority, dba Activation Capital, is an ecosystem development organization. Its mission is to grow life sciences and other advanced technology innovation by promoting scientific research and economic development that attracts and creates jobs and companies.

Coalfield Expressway could have $12.8B impact, study says

The cumulative economic impact of the Coalfields Expressway (CFX) during a 50-year span is estimated to be $12.8 billion in 2021 dollars, according to a study by Richmond-based Chmura Economics & Analytics presented Tuesday.

The CFX is a proposed limited-access highway that would run through Southwest Virginia and southern West Virginia. It is designated as U.S. Route 121 and a congressional high priority corridor.

West Virginia has started on the CFX. In Virginia, only a shared section with U.S. 460 in Buchanan County is funded.

The Virginia Coalfields Expressway Authority and the Virginia Coalfield Economic Development Authority requested that Chmura conduct the study, building on a study it finished in 2013. The Virginia CFX Authority Board heard the results Tuesday in Lebanon.

The study found that while the completed roadway would cost $3.1 billion, each dollar invested could yield $3.10 in economic impact over the highway’s lifespan.

The study conclusion anticipates that construction of the CFX would inject an annual average of $225.4 million into the local economy from 2013 through 2038 and that it would generate 1,543 jobs each year in that period. The construction’s one-time impact is expected to reach $5.9 billion in the corridor from 2013 to 2038, of which $4.1 billion would be in direct construction spending. The cumulative ripple effect of the capital investment could generate $1.8 billion in spending and 13,859 cumulative jobs in the corridor.

According to the study, “CFX can help improve travel efficiency and provide cost savings. The total user benefits are estimated to reach $89.2 million in 2039.”

Chmura estimated that the CRX could support 79 service businesses, which would likely be clustered around access points on the roadway, in 2039. The businesses could generate $151.9 million and create 1,236 jobs.

State and local governments would reap $7.8 million in 2039 from sales tax, corporate income tax and individual income tax, the study estimates.

The study notes that the CFX would benefit mining, manufacturing and agricultural businesses by providing easier access to markets. The presence of an interstate highway could also increase the appeal of the region to expanding and relocating firms, as well as increasing population and tourism growth and improving the region’s quality of life.

Patrick County flooring company announces $9.3M expansion

Ten Oaks LLC, a manufacturer of residential hardwood floors, will invest $9.3 million in a sorting and stacking facility in Patrick County, creating 11 jobs, Gov. Ralph Northam announced Wednesday.

The company was established in 2004 in the town of Stuart and was acquired in 2019 by Canadian company Boa-Franc. The new facility is located fewer than five miles from the company’s manufacturing center and headquarters.

The new facility will create 11 jobs and lead to the purchase of more than $18 million of Virginia-grown forest products over the next three years, according to a news release.

“We are really happy with this announcement, and we are convinced that this project will have a positive impact for Patrick County’s community,” said Ten Oaks President Pierre Thabet in a statement. “This will help to accelerate the growth by developing new innovations and secure the well-being of the region. We are confident that it will be a success over time.”

The Virginia Department of Agriculture and Consumer Services and the Virginia Economic Development Partnership worked with Patrick County and the Patrick County Economic Development Authority to secure the project. Northam approved a $40,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund. Patrick County will match the funding. Funding and services to support job creation will be provided through VEDP’s Virginia Jobs Investment Program.

Roanoke biz to create 30 jobs in Scott County

Roanoke-based VFP Inc. will invest $7.2 million to expand in Scott County, creating 30 jobs, Gov. Ralph Northam announced Monday.

The expansion will allow VFP to produce larger concrete shelters.

“Great workers live in Southwest Virginia, and companies like VFP recognize that,” Northam said in a statement. “Virginia is advancing manufacturing across the commonwealth, and we thank VFP for expanding in Scott County.”

Founded in 1965, VFP develops customized enclosures to protect critical infrastructure for telecommunications, public safety radio, data centers and utility projects. Products include concrete and metal shelters, secure modular data centers, utility control houses and Fiber To The Home huts. Its customers include utilities, municipalities, broadband providers and Fortune 500 companies.

“Since relocating our manufacturing facilities to Scott County in the 1990s, we have continued to grow,” VFP President Scott File said in a statement. “This is largely due to the loyalty and support from our valued employees. VFP is grateful to be located in Scott County with an available workforce and local talent that can meet our vast manufacturing needs. We owe special thanks for the continued support and assistance received over the years from local, regional and state agencies.”

The Virginia Economic Development Partnership worked with Scott County and the Virginia Coalfield Economic Development Authority, for which Virginia competed with Missouri and Oklahoma. Northam approved a $100,000 grant from the Commonwealth’s Opportunity Fund. VFP is eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development. The VEDP’s Virginia Jobs Investment program will provide funding to support employee recruitment and training activities. The Virginia Coalfield Economic Development Authority approved a $100,000 grant to the Scott County Economic Development Authority to assist VFP with workforce development and training.

Damascus sees hike in trail tourism

On a September afternoon, Stuart Wright was trying to persuade a tourist to bring her son back to visit the town of Damascus in Washington County.

“Bring that little boy down here and he can play in the river, he can hike, he can bike the trail,” Wright coaxed. “Bring him where he’s got something to do.”

Wright, who owns a number of vacation cabins in the area, along with a lodge, an inn and an RV park, serves as the unofficial cheerleader for tourism in Damascus, his hometown.

Back in the 1970s when Washington County leaders first started talking about converting an abandoned 35-mile Norfolk and Western Railway corridor into the Virginia Creeper Trail, a hiking and biking destination running from Abingdon through Damascus to the Virginia-North Carolina line, Wright wasn’t on board.

“I fought to keep the train here,” he recalls. “I thought we needed the train but, boy, I was wrong.”

Even amid a pandemic, Wright says, tourism thrives in Damascus, a town once known for its now-departed timber and furniture industries. As proof, he points to Brinkwaters, the downtown boutique hotel that began welcoming guests in August. It sits near the Appalachian Heritage Distillery, which will open a tasting room and store in October not far from the new Appalachian Trail Center scheduled to open during Damascus’ Trail Days celebration in May 2022.

“Damascus is the poster child for what tourism can do for a community,” Wright says.

Trey Waters had listened to his buddy Wright kvetch so much about having to turn away potential guests because his properties were always booked that Waters, a pharmacist and real estate developer, decided to transform a downtown building he owned into the Brinkwaters hotel, which he says is more accurately described as “a big box of Airbnbs.”

Waters, who splits his time between Montana, North Carolina and Damascus, partnered on the project with his friends Eric and Emily Brinker, who own a Raleigh-based construction company. Brinkwaters is a combination of the partners’ last names.

In addition to sleek modern furnishings, some of the hotel’s 13 suites include full kitchens and sleeping lofts. A bike rack sits in front of the building for guests who come to pedal the Virginia Creeper Trail.

Word about the hotel seems to be out. “We’ve been at capacity for the last several weekends,” Waters says. “That’s tremendous.”  

Scott County Tempur Sealy bedding factory to add 25 jobs

Tempur Sealy International Inc. is expanding its Duffield facility in Scott County, the Virginia Coalfield Economic Development Authority announced Thursday.

The bedding company known for its Tempur-Pedic, Posturepedic and Stearns & Foster mattresses, among others, is headquartered in Lexington, Kentucky, but has two manufacturing facilities: one in Albuquerque, New Mexico, and one in Southwest Virginia.

The Duffield facility has 300 workers. Tempur Sealy will use a $100,000 grant awarded to the Scott County Economic Development Authority for workforce development and training needs to support the expansion, and the 25 jobs will be added within two years.

VCEDA, Scott County and the LENOWISCO planning district recruited Temur Sealy to open its first U.S. manufacturing plant in Duffield 20 years ago.

“On behalf of the Virginia Coalfield Economic Development Authority, we would like to congratulate  Tempur Sealy on its expansion in Scott County,” said Jonathan Belcher, VCEDA executive director and general counsel, in a statement. “Since locating in the region two decades ago, this operation has been a tremendous asset for the entire region, providing excellent employment opportunities for the citizens of Scott County and Southwest Virginia. We look forward to continuing to work with them in the future.”

It’s not the first expansion for the Virginia facility. The most recent expansion was announced in March by Virginia Gov. Ralph Northam, who said the state would invest $16.7 million to expand the manufacturing operation.

Virginia competed with New Mexico for the project. The new expansion will enable the Duffield plant to increase its production.

Va. projects get $2.5 million from Appalachian Regional Commission

The Appalachian Regional Commission’s Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) Initiative is granting three Virginia projects a total of $2.5 million, Gov. Ralph Northam announced Tuesday.

“As our economy recovers from the impacts of COVID-19, it is critical to invest in Appalachia,” Northam said in a statement. “ARC’s POWER initiative will continue to build on the region’s strengths and address its challenges, driving growth and opportunity throughout Appalachia.”

The Virginia Coalfield Coalition Inc. is receiving $1 million for its Buchanan/Tazewell Wireless Communication Job Growth Corridor project, in which it will build six fiber-lit cell towers along a 20-mile stretch off U.S. Route 460. The project is expected to serve 25 existing businesses and help with business recruitment for industrial parks.

The POWER Initiative is granting Appalachian Community Capital $1.5 million for its Central Appalachian CDC: Bringing Community Development Investment to Coal-Impacted Communities project. The project will give 40 communities across Virginia, North Carolina, Ohio, Tennessee and West Virginia technical assistance, guidance and outreach support. It is expected to create 15 businesses and 3,000 jobs, while leveraging $400 million in private investment. The U.S. Treasury Department’s Community Development Financial Institutions Fund, the North Carolina-based Dogwood Health Trust, Goldman Sachs and Ohio Southeast Economic Development will provide financial support.

With $49,875, the LENOWISCO Planning District, in partnership with InvestSWVA, will lead Project Trace, determining the feasibility of creating an agriculture-technology tool to track and report food miles — the distance food travels from where it is grown to where it is consumed — of speciality grains grown in Southwest Virginia.

Established in 1965, the Appalachian Regional Commission is a federal agency focused on economic development in the Appalachian region. The POWER Initiative helps communities and regions affected by job losses in coal mining and power.