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Pharrell urges Norfolk to speed up Military Circle development

During a news conference before his three-day Mighty Dream forum kicked off Tuesday, music superstar Pharrell Williams said he is waiting for Norfolk to officially approve his development team’s Wellness Circle project at Military Circle Mall, noting, “I’ve been told many times that we won it. … You have to ask the city. The ball’s in their court.”

Reached Tuesday through a city spokesperson, Norfolk city manager Larry “Chip” Filer confirmed that they are currently working with the Wellness Circle team.

“I can confirm that the city is in discussions with Wellness Circle regarding the exciting redevelopment of the Military Circle mall site,” he said. “The parties are currently negotiating deal terms so we may bring a world-class arena, affordable housing and more to the site. We are making good progress and I want to thank the individuals on the Wellness team for their steadfast commitment to the project. I look forward to finishing these initial discussions and moving on to the completion of the traffic analysis, economic impact and other studies needed to bring the project to life.”

Pharrell added that the project, which would include an arena and flagship Yellowhab school, as well as residential and retail components, does not have a set timeline, although he said he’s excited to move forward.

“There’s a couple of gatekeepers that are not necessarily happy about that, so they make trouble and kick up dust and do the things that they do,” Williams said. Though he did not name any specific people, Williams and Virginia Beach hotel developer Bruce Thompson, CEO of Gold Key | PHR, had a public spat in October 2021 after Thompson denied Williams the use of the Cavalier’s iconic front lawn for an 800-person party where controversial comedian Dave Chappelle would have performed. Thompson is part of a competing group that also submitted a proposal for the redevelopment of Military Circle Mall.

Reached Tuesday, Thompson said that he heard that Williams’ team was in negotiations with the city, adding, that Williams’ “proposal is very ambitious, and if they could pull it off, it would be great for Norfolk. We stand ready, willing and able to step in with an expansive, unique and economically viable development for sustainability and diversity if he is unable to find a pathway to bring his vision to reality.”

During his Tuesday news conference, Williams also joked about the “generic” developments that have characterized the region and called on city officials to move forward with the Military Circle redevelopment. “Over and over again … knockoff restaurants and generic brands. We deserve more. We are on the middle of the Eastern Seaboard. We can’t keep leaving it to five [or] six people with not the best taste. Sorry, I mean, am I wrong? No. I’m saying it with love. Open it up, guys. Open it up. This [development] should have been moving a long time ago.”

Norfolk’s EDA purchased the 75-acre property for $11 million and the nearby DoubleTree Hotel property for $2.4 million.

The Wellness Circle proposal includes 1 million square feet of office space, a 200-room hotel, 1,100 new housing units and a 15,000-seat arena. The project’s other developers include Virginia Beach-based Venture Realty Group and California arena management company Oak View Group, both of which are also co-developing the Atlantic Park surf park with Williams at Virginia Beach’s Oceanfront.

Two other development teams, including groups connected with Thompson and Pro Football Hall of Famer Emmitt Smith of Dallas Cowboys fame, submitted competing proposals for the project. The city returned $100,000 deposits made by each of the three developers in June, citing the amount of time it has taken the city to choose a developer, according to The Virginian-Pilot.

Stay tuned for Virginia Business’ coverage of Mighty Dream, taking place through Nov. 3 in Norfolk.

Lawyers aim to lower barriers to legal advice for startups

It takes a lot to start a business — a marketable idea, available capital and good advice, among other resources. Tricia Dunlap puts legal guidance in the same bucket.

A former history teacher who became a lawyer in her 40s, Dunlap started her own Richmond-based law firm, Dunlap Law PLC, in 2015 to help “un-lawyered or under-lawyered” entrepreneurs get legal counsel affordably. Hourly billing costs that often range in the hundreds of dollars are a significant barrier for many small business owners, Dunlap notes. That’s why she’s aiming to make legal assistance from her firm more accessible for entrepreneurs through a new program based on setting flat, project-based fees or low monthly retainers. “I’m hoping to launch that in the first quarter of 2023,” she says.

Claire Guthrie Gastañaga, retired executive director of the American Civil Liberties Union of Virginia, joined Dunlap as a partner in September. She’s excited to help entrepreneurs. “A lot of times what happens is they’re so focused on what they’re doing or selling that they forget some of the corporate niceties they have to take care of and sustain,” Gastañaga explains. “They may or may not have a well-written foundational document, whether it’s articles of corporation or the paperwork they need to start up a limited liability company. We really want to help people start out right.”

At the University of Virginia School of Law’s Entrepreneurial Law Clinic, law students advise business owners pro bono  and also make referrals. Pamela Rosen, general counsel at Fermata Energy, is one of the clinic’s co-teachers.

Rosen says that it’s wise for entrepreneurs to ask their networks for lawyer recommendations — and to remember that some attorneys are, themselves, small business owners. “With that lens and mindset, the idea is that a lot of folks are open to networking and getting to know each other,” as well as working out a payment plan that works for both parties, she notes.

Hunter Guerin, who started Llamawood, a Richmond-based firewood delivery service with four employees, in 2021, says there’s a lot of free templates online for legal documents used in business — everything from nondisclosure agreements to vendor contracts. But, he adds, “I would still like an attorney to review those. When I started my business, I knew I wanted to be forward-thinking in terms of liability, dotting my i’s and crossing my t’s.”  

Altria strikes $150M deal with Japan Tobacco

Altria Group Inc., the Henrico County-based tobacco giant, announced Thursday it is partnering with Japan Tobacco Group to sell heated tobacco products in the U.S. and worldwide, placing Altria in direct competition with Juul Labs Inc. and Philip Morris International Inc.

The $150 million deal, in which Altria subsidiary Philip Morris USA has a 75% economic interest in the Horizon Innovations LLC joint venture and Japan Tobacco International has 25%, will include marketing of heated tobacco products in the United States and Japan.

The partnership comes after Altria sank $12.8 billion into a 35% stake in Juul, at the time the nation’s leader in the e-cigarette market. However, Juul soon faced major legal woes, including numerous lawsuits claiming the company had illegally marketed its products to teens. Having settled some lawsuits, Juul is facing possible bankruptcy, and the federal government has said it wishes to ban all Juul products from being sold in the U.S.

In September, Altria opted to end its noncompete deal with Juul, after its $12.8 billion investment was valued at $450 million as of June 30. In August, the company said it had not yet decided to end the agreement. “At this time, we continue to believe that these investment rights are beneficial to us,” Altria spokesperson Jennifer Kelly said at the time. “Therefore, we have not opted to be released from our noncompete obligations at this time, but we retain the option to do so in the future.”

Meanwhile, former subsidiary Philip Morris International and Altria attempted to reunite, but that agreement collapsed in November 2021, and PMI has received the European Union’s approval for its $16 billion purchase of Swedish Match AB, another competitor in the smokeless tobacco space.

Altria officials have long maintained that e-cigarettes and other nontraditional tobacco products are important products to help adult smokers wean off cigarettes, although much of the opposition to vaping products arose from their use by underage smokers. In subsequent years, the federal government has banned fruit and candy flavors in smoke-free products, limiting their appeal to teens.

“We are excited to begin a new partnership with JT Group, a leading international tobacco company,” Altria CEO Billy Gifford said in a statement Thursday. “We believe this relationship can accelerate harm reduction for adult smokers across the globe. We believe ‘Moving Beyond Smoking’ in the U.S. requires multiple FDA-authorized products within each smoke-free category to appeal to a diverse range of adult smokers. We believe that our joint venture and pipeline of heated tobacco products position us well to increase adoption of smoke-free products.”

Altria’s third-quarter earnings fell short of expectations, with $5.41 billion in revenue, down from $5.59 billion expected by Wall Street and a 2% decline from the same period last year. The Japan Tobacco announcement preceded the earnings release today. As of 12:50 p.m. Thursday, shares of Altria’s stock were down 0.93% at $45.96 per share.

According to Altria’s announcement, the deal with Japan Tobacco will produce two products that will reach the U.S. market by the first half of 2025: JTS’ Ploom heated tobacco device, which is similar to the IQOS product removed from U.S. markets last year in a patent dispute with R.J. Reynolds Tobacco Co., and Marlboro heated tobacco consumables, which Philip Morris USA will produce. Altria says that the Marlboro product is “a consumable that meets the definition of a cigarette under the U.S. Federal Cigarette Labeling and Advertising Act.”

Earlier this month PMI agreed to pay Altria Group $2.7 billion for U.S. commercialization rights starting April 30, 2024, and Altria’s announcement Thursday says the company does not expect to have commercialization rights when Horizon’s exclusivity requirements go into effect. The company also expects to partner with Japan Tobacco to launch a new heated tobacco capsule product in an international test market in late 2024 or early 2025, as well as starting work on a proposal to the U.S. Food and Drug Administration by the end of 2024.

Pharrell’s Mighty Dream forum coming to Norfolk Nov. 1-3

Executives from Google, H&M, Universal Music Group, Yelp and McDonald’s will join Grammy winner Pharrell Williams Nov. 1-3 in Norfolk for his Mighty Dream forum, a sequel to last fall’s Elephant in the Room event.

Along with panel discussions and networking events focused on making work and business opportunities more equitable and supporting and growing Black-owned businesses, the conference will include a small business-focused block party and nightly concerts.

Last October’s Elephant in the Room event at Norfolk State University included discussions with business leaders co-moderated by Williams, who is involved in two major Hampton Roads developments — the redevelopment of Military Circle Mall and the Atlantic Park surf park project in Virginia Beach.

Williams also is the force behind Something in the Water, which debuted in 2019 on Virginia Beach’s Oceanfront, but he moved the music festival to Washington, D.C., this summer, after announcing in 2021 that he was pulling the festival from his hometown because of the city’s “toxic energy,” including the police shooting of his cousin.

Despite this, the music and fashion superstar maintains close ties to Norfolk and, in particular, Norfolk State University, where he has twice addressed graduating classes. Mighty Dream, while featuring appearances by Williams and fellow Hampton Roads hip-hop star Pusha T, as well as musical performances, will be more focused on business.

In an interview with Virginia Business in January, Williams said he planned the conference to include “full days of caucuses and panels,” featuring Fortune 500 business leaders but also including Norfolk and Virginia Beach voices — a cross between Davos, Switzerland’s World Economic Forum and Austin, Texas’ South by Southwest. The focus, the Virginia Beach native says, is to provide more economic opportunities for the region and make them more equitable for underrepresented groups, particularly Black residents.

Executives slated to participate include Felecia Hatcher, CEO of Williams’ Black Ambition Opportunity Fund, which provides grants to diverse entrepreneurs; Corey Smith, vice president of diversity and inclusion at LVMH Inc., the holding corporation that owns Louis Vuitton and other luxury companies; Stacey Owsley, executive director of Yellow, Williams’ nonprofit educational organization, which started the Yellowhab school in Norfolk; former NBA all-star Joakim Noah, who is an ambassador to the Basketball Africa League and an investor in NBA Africa; and Lisa Osborne Ross, the U.S. CEO of Edelman, the global public relations firm. Astronaut Leland Melvin, comedian and actor Hannibal Buress and Google Vice President and Chief Diversity Officer Melonie Parker are also scheduled to appear.

The three-day event kicks off Nov. 1 with “Black Ambition Demo Day,” a showcase of “trailblazing Black and Latinx entrepreneurs,” including a special guest and a conversation with 2021 grand prize winners. Williams will take part in several panels, including several business leaders, angel investors and NSU President Javaune Adams-Gaston, who will provide updates on what has happened since Elephant in the Room. A “Business Block Party” is scheduled the evening of Nov. 2, with small businesses, organizations and food trucks setting up in the NEON District, and on Nov. 3, H&M’s Annie Wu, who leads the clothing retailer‘s global diversity and equity efforts, will discuss her company’s path to becoming more inclusive.

A full schedule is available at mightydreamforum.com.

Mighty Dream will also feature evening concerts at local music venues around Norfolk. Tickets for daytime events are available at mightydreamforum.com, with three-day badges ranging from $75 for students up to $3,500 for “C-Suite level” access.

Genworth insurance co. settles class action for $25M

Richmond-based Genworth Life & Annuity Insurance Co. has settled a class-action lawsuit with 13,400 insurance policy holders for $25 million. U.S. District Judge David Novak of the Eastern District of Virginia approved the settlement Monday.

GLAIC, a subsidiary of Fortune 500 life, mortgage and long-term care insurer Genworth Financial Inc., was sued for $5 billion in 2020, with plaintiffs claiming their life insurance policies were subject to unlawful cost of insurance (COI) increases in September 2019, which could be between 40% and 140% higher than the company’s monthly risk rates scale, according to the lawsuit. The complaint was filed in April 2020.

The agreement reached in May and approved Monday provides a $25 million all-cash fund for settlement class members, before deduction of fees and expenses, and no money reverts to Genworth. The company also agreed not to impose a new COI rate schedule of higher fees during the next seven years, and not to deny a death claim submitted by the plaintiffs’ insurance policies based on a lack of valid insurable interest.

“We’re pleased with the judge’s approval of this settlement, as it supports the policyholders and ensures they’re protected in the future from unlawful rate increases,” Steven Sklaver, partner at Houston-based Susman Godfrey LLP and one of the plaintiffs’ attorneys, said in a statement. “We remain committed to advocating for policy owners affected by similar COI increases.” Novak encouraged the two parties to settle earlier this year.

Sklaver said in an interview with Virginia Business that his firm is involved in another class-action lawsuit against Genworth on behalf of universal life insurance policyholders whose rates were raised. The original complaint was filed in November 2018 in the U.S. District Court for the Eastern District of Virginia, he said, but Genworth filed a motion in Georgia, arguing that a class-action lawsuit settlement approved in 2004 barred the lawsuit. The judge in Georgia ruled in the plaintiffs’ favor in March, and Genworth has appealed the ruling, Sklaver said.

Because discovery has not yet taken place, Sklaver said he is not sure how many people were affected, but added, “We assume it’s substantial,” likely more than 10,000 policy holders.

In July, in a separate class-action lawsuit involving rate increases, a federal judge in the U.S. District Court for the Eastern District of Virginia ruled that Genworth Life Insurance Co. must pay $1.2 million in attorneys’ fees as part of a settlement with plaintiffs. Members of the class will be able to maintain their current benefits and can pursue a claim in court if it’s filed within the next three years.

Sklaver’s firm is involved in class-action cases against several insurers that have raised rates. Lifespans have risen about 1% per year over the past three decades, according to the American Academy of Actuaries; although longer lifespans lower the cost of life insurance for insurers, which provide death benefits, long-term care insurance costs rise as people live longer.

“They raise rates when it’s good for them, but they don’t drop them,” Sklaver said.

A spokesperson for Genworth declined to comment Tuesday about the settlement approved Monday, and the company’s attorneys did not return a request for comment.

MacKenzie Scott pledges $15M to PATH Foundation

Billionaire philanthropist MacKenzie Scott has pledged $15 million to the Warrenton-based PATH Foundation, an organization that provides grants for health-focused organizations in Fauquier, Rappahannock and Culpeper counties, PATH announced Thursday.

Scott, the billionaire ex-wife of Amazon.com Inc. founder Jeff Bezos, has made large donations to many nonprofits and universities, including in Virginia, over the past two years. She notified PATH Foundation of the grant recently, the organization said in a news release.

“We were so excited to learn that Ms. Scott selected the PATH Foundation for this generous contribution,” Christy Connolly, PATH Foundation’s president and CEO, said in a statement. “We were completely taken by surprise that she was aware of the work we’ve done in the community and thrilled to have this validation of efforts we’ve made since our inception.”

Connolly added, “Our board and staff are incredibly grateful for Ms. Scott’s grant and will use this significant gift to continue investing in our community, guided by our mission and strategic plan.”

PATH was started as the Fauquier Health Foundation and changed its name in 2013 when the Fauquier Health System was sold to LifePoint Health, becoming a standalone, private philanthropic foundation. Since then, PATH has provided $60 million in grants and partnerships with recipients focused on health, childhood wellness, mental health and senior services.

In 2020, Scott made record-setting donations to Hampton, Norfolk State and Virginia State universities, as well as Goodwill of Central and Coastal Virginia. After receiving a quarter of Bezos’ Amazon stock in their 2019 divorce, Scott has donated more than $12 billion to over 1,200 organizations since 2020, according to her foundation.

U.S. Navy to open training center in Danville

The Navy on Wednesday launched an additive manufacturing “center of excellence” to train students in defense manufacturing at Danville’s Institute for Advanced Learning and Research, as well as announcing a larger training facility to be built nearby.

The center of excellence is part of the 16-week Accelerated Training in Defense Manufacturing (ATDM) program that started as a multiyear pilot in 2021 in Danville, a partnership among the Department of Defense, IALR, Danville Community College, The Spectrum Group and Phillips Corp. that has trained three cohorts of students so far. Also announced Wednesday was the Navy’s plan to build a 100,000-square-foot regional ATDM training facility on the campus, where between 800 and 1,000 students will complete training annually by 2024.

Additive manufacturing, better known as 3D printing, is a relatively new way to produce submarine parts more quickly. Training at the center of excellence will include sustainable and scalable manufacturing of parts for submarines, including some castings and forgings that are currently very fragile.

After graduation from ATDM, the students are expected to be ready for jobs within the defense industrial base, including Columbia-class submarines and shipbuilding and supply-chain businesses, all of which have encountered labor shortage challenges in recent years. In 2020, IALR and Danville Community College were awarded a $1.78 million contract from the Army to develop the prototype training program for ATDM’s pilot.

Secretary of the Navy Carlos Del Toro announced the Navy’s move to IALR’s new Center for Manufacturing Advancement on Wednesday at the second annual ATDM Summit, held this week at IALR. The Navy center is the first partnership at the $28.8 million, state-funded center, which opened at a ribbon-cutting ceremony Wednesday morning with Gov. Glenn Youngkin.

“Across the Department of Defense, we are adapting our training mission to equip our industrial workforce with the knowledge and the experience they need,” said Del Toro, former CEO of Northern Virginia defense contractor SBG Technology Solutions Inc. “Over the past year, this fast-track, intensive and targeted program has helped fill skill gaps across the key trades to keep us in the fight. These include advanced machining, quality control, welding and additive manufacturing. Graduates of this program will enter the workforce with the specific skills and nationally recognized certifications that we need now.”

“This partnership will diversify, transform and grow Southern Virginia’s production capability for the submarine industrial base as well, marking another major win for Virginia’s defense economy and labor market,” Youngkin said in a statement.

The center also includes an inspection lab, room for operations while businesses build factories off-site, and space for manufacturers, technology companies and engineering students to collaborate, according to IALR’s announcement.

“The center will help close critical supply chain gaps and accelerate defense manufacturing. It will enable partners to move and adapt at the speed of technology, and directly complements the ATDM program,” said Craig Crenshaw, Virginia’s secretary of veterans and defense affairs. “ATDM is a great opportunity for our veterans, who are supremely suited to the culture and competencies of defense manufacturing. They provide an immediate connection to the mission.”

On the cusp

Once again, Virginia is a significant factor in this year’s national electoral playing field, in which Democrats are jockeying to stay in power and Republicans are anticipated to make midterm gains.

Three congressional districts in the commonwealth — all held by Democratic female incumbents — are considered vulnerable to the GOP by differing degrees.

The competitive races in Virginia’s 2nd, 7th and 10th congressional districts not only will determine which party will hold the majority of the state’s 11 newly redrawn districts, but whether Republicans can regain control in the U.S. House of Representatives.

In Hampton Roads, Democratic incumbent U.S. Rep. Elaine Luria is running for re-election against Republican state Sen. Jennifer Kiggans in the 2nd District. Luria’s prominence as part of the Jan. 6 congressional investigation has amplified her role at the Capitol but also made her more of a target, especially after Democratic-leaning parts of Norfolk were drawn out of the district after the 2020 U.S. Census. 

The University of Virginia’s Center for Politics ranked the Kiggans-Luria race as a toss-up in late August, and the competitive 7th District was deemed “leans Democratic,” favoring incumbent U.S. Rep. Abigail Spanberger, who is running against Republican Yesli Vega, a Prince William County supervisor and auxiliary deputy with the county sheriff’s office. The 2021 redrawing of Virginia’s districts shifted Spanberger’s district to the north, removing Richmond’s suburbs and including Fredericksburg and the counties of Prince William, Stafford, Culpeper, Orange and Greene, among others.

Democratic incumbent U.S. Rep. Abigail Spanberger is running for her third term in the newly redrawn 7th District. Photo by Tom Williams/CQ Roll Call via AP Images

Finally, there’s Northern Virginia’s 10th District, where Democratic incumbent U.S. Rep. Jennifer Wexton is defending a seat she flipped in 2018. Wexton’s opponent is Hung Cao, a retired U.S. Navy captain who emerged from a crowded GOP primary of 10 prospective challengers. It’s not likely to flip, state political analysts say, but if it does, it would likely signal a massive Republican wave. Think 2014, when the GOP won 247 seats in the House of Representatives — a 59-seat majority — during Barack Obama’s last term as president.

“Virginia’s interesting in terms of the [potential GOP] wave,” says A.J. Nolte, assistant professor in the Robertson School of Government at Virginia Beach’s Regent University. “If you think about [a] beach analogy, if Luria wins, Democrats aren’t even getting their toes wet. If Hung Cao wins, they probably didn’t spend enough money on flood insurance.”

August polling in Virginia showed Spanberger with a 5-point edge over Vega, and Luria also leading Kiggans by 5 points.

National headwinds

Earlier in the year, the conventional wisdom viewed a GOP sweep of the House and Senate this fall as increasingly likely, amid low approval ratings plaguing President Joe Biden, gas exceeding $5 a gallon and inflation hitting its highest rate in four decades. Now, that outcome is less sure, political observers note.

The U.S. Supreme Court’s June ruling to overturn Roe vs. Wade, leaving many states without access to legalized abortion due to state trigger laws, has energized Democratic and some independent voters who want to see a Democratic-controlled Congress pass federal legislation to allow abortions. Biden and House Democrats sought to pass laws this year, but the tightly controlled Senate — as well as a filibuster rule that required a 60-vote majority to enact legislation — prevented it.

But after that predicted failure, gas prices declined below $3.50 and Biden notched some successes: pledging to forgive up to $20,000 in student loans for Pell Grant recipients and other people with federal loans due, as well as passing inflation reduction, infrastructure and semiconductor chips spending bills.

Another possible factor governing voter enthusiasm: The raid on Mar-a-Lago, in which FBI agents recovered thousands of classified documents at former President Donald Trump’s Florida resort in August as part of an investigation into violations of the Espionage Act, obstruction of justice and criminal handling of government records. Although it’s not clear that Trump or anyone else will be criminally charged in connection with the investigation, the event has stoked partisan emotions. In a Sept. 1 prime-time address to the nation, Biden condemned “MAGA Republicans” who support Trump’s false claims of a stolen 2020 election, unprovable cases of election fraud and violent political statements like those that led up to the Jan. 6, 2021, insurrection at the U.S. Capitol.

In Hampton Roads, U.S. Rep. Elaine Luria, the Democratic incumbent, is running a tight race for a third term after redrawn boundaries erased Democratic-leaning parts of Norfolk from the 2nd District. Photo by AP Photo/J. Scott Applewhite

In a Wall Street Journal poll conducted Aug. 17-25, 64% of Republican respondents said they’re more likely to vote in November due to the FBI search, while 37% of independent voters and 36% of Democrats said they were more likely to vote because of the search.

In August, Democrats celebrated the congressional win of Mary Peltola in Alaska, where she becomes the first Alaska Native woman to hold congressional office. The special election was held to replace the late U.S. Rep. Don Young, but a second regular election takes place in November. Among Peltola’s opponents in August and this fall is former GOP vice presidential candidate Sarah Palin, who has since complained about the state’s use of a ranked-choice ballot in the special election.

Palin’s August loss aside, many experts still predict Republicans will win control of the House of Representatives this fall — but The Cook Political Report wrote in September that a GOP majority in the House is “no longer a foregone conclusion.”

The party in control of the White House historically performs poorly in midterm elections — and Biden’s approval ratings have been historically low.

As of Sept. 1, Rasmussen and Wall Street Journal polls showed Biden’s job approval rating at 44% and 45%, respectively, while 54% disapproved, putting him 9 to 10 percentage points underwater. Polling site FiveThirtyEight also had Biden’s approval rate at a similar 42.3% on Sept. 15.

Democrats in Virginia are well aware of the possibility of failure, as Gov. Glenn Youngkin led a GOP sweep last November of the state’s top offices, with Republicans also regaining control of the Virginia House of Delegates. Pundits noted in 2021 that the party in control of the White House has historically lost the governor’s race the following year, and with significant numbers of suburban voters having jumped on the affable, fleece-vest-wearing Youngkin’s bandwagon, Republicans won their first statewide victories since 2009.

The Republican Party of Virginia say it’s a reaction to the public’s displeasure with Democrats and the Biden White House. “Virginians are tired of the Biden administration’s failed policy agenda that is hurting American families at the pump, the grocery store and everywhere in between,” says Ellie Sorensen, the state party’s press secretary.

Yet Virginia Democrats say abortion rights — which are currently protected in Virginia by Democrats’ narrow majority in the state Senate — are a major incentive for liberal-leaning voters to vote this year and next.

“It comes down to choice for everyone who lives here,” says Democratic Party of Virginia Chair Susan Swecker. “Do you want to elect officials who will defend reproductive rights or empower those who want to rip them away?”

Nevertheless, analysts opine that Biden’s low approval ratings and rising inflation still tilt the odds slightly toward the GOP.

“I still view it as a Republican-leaning midterm environment,” says Kyle Kondik, managing editor of Sabato’s Crystal Ball, an online political newsletter and election handicapper produced by the Center for Politics at the University of Virginia.

Setting boundaries

Virginia’s congressional candidates are running in new districts for the first time in a decade. Virginia’s new bipartisan redistricting commission deadlocked after the 2020 Census, leading to the Virginia Supreme Court appointing experts to draw the districts.

The new maps tilted Luria’s district slightly more Republican.

“The map still favors Republicans, although the new map has fewer wasted Democratic votes,” says Amanda Wintersieck, associate professor at Virginia Commonwealth University. “The 2nd was a safer district for Democrats prior to redrawing lines. Today it is more Republican.”

The 2nd District consists largely of Hampton Roads communities, centered on the Republican-leaning swing city of Virginia Beach. Its congressional seat has flipped between political parties four times since 2000. Luria is running to hold it in a challenging atmosphere, against a strong candidate in state Sen. Kiggans.

Republican State Sen. Jen Kiggans is opposing Luria in the 10th District race, which U.Va.’s Center for Politics deemed a toss-up in late August. Photo by AP Photo/Steve Helber

Kiggans says her time in the Virginia Senate has given her “a firsthand look at the danger and insanity of liberal, one-party political rule here in the commonwealth,” the nurse practitioner and Navy veteran helicopter pilot says. Her first two years in the Senate, after she won a seat in 2019 formerly held by Democrats, coincided with Democratic control of both legislative houses and the top three state offices.

“I’m running for Congress to restore American strength in our economy, communities, borders and our military,” Kiggans says. “Virginians are suffering at the gas pump, at the grocery store and everywhere in between. Americans have a choice whether or not they want to continue like this for two more years or make a change.”

Luria, who also was a naval officer before taking congressional office in 2019, cites her experience running a business as a formative experience, saying it led her to lobby the General Assembly “to change the restrictive licensing red tape on businesses like mine and expand opportunities for others.” (Luria and her husband established and later sold a small local retail chain and art studio, The Mermaid Factory, specializing in mermaid-themed souvenirs.)

“Supporting the business community remains one of my top priorities in Congress,” Luria says, “and I am committed to ensuring businesses and working families have the resources they need to thrive.”

As for her participation in the House of Representatives’ Jan. 6 select committee, Luria says the day of the U.S. Capitol raid was “one of the darkest days of our democracy,” and adds that protecting the country’s democratic institutions is a key part of her oath to uphold the Constitution.

Chris Saxman, executive director of Virginia FREE and a former Republican delegate, says this argument probably matters less in the 2nd District than it would in areas closer to Washington, D.C.

“It’s important to differentiate the 2nd from statewide,” Saxman says. “The level of intensity against Trump in the Northern Virginia area is off the charts, because he ran against the swamp. ‘Drain the swamp’ — that’s Northern Virginia. There’s deep antipathy for Donald Trump in that area, [but] with him not on the ballot, I don’t know how much of an accelerant and stimulant it is for anti-Trump voters.”

The 7th District is considered only slightly less competitive than the 2nd. Spanberger defeated two-term Republican U.S. Rep. David Brat to win election in 2018 amid the same Democratic wave that put Luria and Wexton in office. Redistricting saw the 7th District lose some Republican-leaning Richmond suburbs but pick up more Democratic-leaning Northern Virginia suburbs.

“It’s a mildly-leaning-Democratic seat,” Kondik says. “Biden won it by 7 points. It’s probably one of the most expensive, high- profile House races in all the country. Republicans look at this and say, ‘This is the type of seat that should flip in a year like this.’”

Because of the boundary shifts, Spanberger is new to many of its voters and has had to reintroduce herself. The former CIA officer has walked a fine line — pushing back against party leader Nancy Pelosi and the progressive House “squad” — to win and retain her previous district, which was held by Republicans for more than three decades.

“In no particular order, the issues that I hear Virginians talk about the most are high costs at the grocery store and pharmacy counter, public safety and the fundamental threat to privacy as a result of the Supreme Court’s decision to overturn Roe v. Wade,” Spanberger says. “I’m focused on moving solutions forward that businesses know will help all Virginians get ahead — like strengthening support for workforce training programs, cutting burdensome and unnecessary red tape, and expanding high-speed broadband internet access.”

A Prince William County supervisor and former police officer, Vega decries how “massive government handouts” during the pandemic disrupted the economy.

“The economy is the top issue for voters in our district right now,” Vega says. “Our country is in a recession and people are struggling to make ends meet with soaring gas and food prices. With the cost of living through the roof, my top priority will be working to relieve the burden of increased costs on our nation’s citizens and reduce unnecessary taxes and regulations that are crushing our small businesses.”

In late August, The Cook Political Report moved the race from a toss-up to “leans Democratic.” Kondik gives Spanberger an edge as well. “My guess is she and her campaign will be able to make some hay out of what Vega has said about abortion,” he says.

In June at a Stafford County event, Vega expressed support for more restrictions on abortion, before adding, “The left will say, ‘Well, what about in cases of rape or incest?’ I’m a law enforcement officer. I became a police officer in 2011. I’ve worked one case where as a result of a rape, the young woman became pregnant.”

Spanberger tweeted that her opponent’s words were “extreme and ignorant,” and the state Democratic party has continued to push the issue in statements through the summer.

But Regent University’s Nolte says Vega’s comments likely will make less difference to voters than economic issues.

“In a neutral economy, social issues are potentially a very effective wedge,” Nolte says. “Inflation numbers and gas prices have gone down some. They would have to go down a lot further for this not to be an economic election and referendum on Biden.”

The 10th District only recently flipped after being represented by Republicans since 1981. Democrat Wexton defeated incumbent Republican Barbara Comstock in 2018 by 13 points and held the seat by the same margin in 2020.

“It’s been my top priority to bring down costs for Virginians and ease the burden of inflation on families’ budgets,” Wexton says. “I’m proud that we’ve passed major legislation to lower health care and prescription drug costs, take meaningful action to combat climate change and ensure a healthy planet for our future, and tackle inflation while reducing the deficit.”

Analysts see the 10th District as less competitive than either the 2nd or 7th.

“Biden won it by 18 points, and Republicans don’t hold any districts currently that came close to that margin,” Kondik says. “The best Biden district they hold is 10 or 11 points. It flips if it’s a mega [GOP] wave. I’m skeptical of that. It’s still a Republican wave year, but not quite as sharp as most wave years.”

Nolte also ranks the 10th as the least competitive of Virginia’s three districts in play. But he sees a possible route for Republicans, particularly if Cao can pull big numbers among Asian voters. Nolte also identifies an additional campaign dynamic to watch: Youngkin’s travels to support GOP candidates in other states.

Democrats have used his busy travel schedule — including trips to Michigan, Georgia, Kansas, Maine, New Mexico and Oregon — to question his interest in serving as governor, and Youngkin has not definitively said he is uninterested in a presidential run.

“It’s not too early to start thinking about 2024,” Nolte says — a nod to the next presidential election. “Watch the endorsements and watch who is coming and campaigning for whom. In and out of Virginia, what is Youngkin doing?”

Conways make $13M donation to VCU nursing school

McLean philanthropists Joanne and William E. Conway Jr. have given $13 million to Virginia Commonwealth University’s School of Nursing, the university announced Monday. The gift is the largest in the school’s history and will provide more than 1,000 undergraduate and doctoral students with scholarships over the next five years.

Bill Conway is co-founder, interim CEO and non-executive co-chairman of The Carlyle Group, the Washington, D.C., private equity firm that was once co-led by Gov. Glenn Youngkin before he left to pursue public office. Bill and Joanne Conway committed $14 million earlier this month to the University of Virginia’s School of Nursing, where it will provide at least 175 need- and eligibility-based scholarships for nursing students.

The VCU gift is through the Conways’ Bedford Falls Foundation, and the couple has donated $18.5 million to its nursing school since 2019. VCU expects to expand nursing enrollment — currently at 930 — by 15% each year with the donation. More than 70% of VCU undergrad nursing students qualify for need-based scholarships, and the gift will allow the school to increase the number of scholarships by 37% over the next five years.

“Nurses are essential,” Bill Conway said in a statement. “Joanne and I believe that, by reducing the financial burden for nursing students at VCU School of Nursing, the school will be better equipped to expand its programs to address the critical nursing shortage. When nurses face a lower debt burden, they can more easily achieve their personal and professional goals.”

Although the pandemic severely reduced the number of practicing nurses in hospitals who sought jobs in private health care or left the industry entirely, the shortage already was bearing down on the field, with many nurses and nursing faculty set to retire this decade.

“This gift will fundamentally transform the VCU School of Nursing program, allowing us to offer much-needed financial support to our students who are the future of the nursing profession,” Jean Giddens, professor and dean of the VCU School of Nursing, said in a statement. “The Conways’ generosity will have an enormous impact on building a diverse pipeline of early-career nurses and future researchers and gives VCU the important responsibility of educating and delivering that workforce. I am deeply grateful for their commitment to our students.”

$300M vertical farming campus coming to Chesterfield

A $300 million indoor vertical farm campus — billed as the world’s largest — is coming to Chesterfield County’s Meadowville Technology Park, Gov. Glenn Youngkin announced Wednesday. San Francisco-based Plenty Unlimited Inc. is expected to produce 300 jobs over the next six years in a multiphase project.

The first farm, expected to be completed in winter 2023-24, will grow Driscoll’s strawberries at scale. Founded in 2014, Plenty is based in California and recently secured $400 million in Series E financing. The company has more than 200 patents related to its agricultural technology, which allows it to grow produce year-round in 30-foot grow towers.

Youngkin, who made the announcement Wednesday morning at the future campus site, called the vertical growing technology “mammoth towers that represent the future of agriculture. They’re rewriting the rules of agriculture, where you can, in fact, see yields and yet use fewer and fewer of our precious natural resources. How’s that for a combination?” CEO Arama Kukutai said that indoor vertical farming has up to 350 times the yield per acre than traditional outdoor farms.

The campus will be on 120 acres off Bermuda Hundred Road in the Chester region, and officials with Plenty anticipate 20 million pounds of produce to be grown annually when the full campus is in operation. Aside from producing about 4 million pounds of strawberries annually, Plenty expects to grow leafy greens, cherry tomatoes and other crops.

Chesterfield is situated within a day’s drive of about 100 million customers, according to Kukutai. “Transport times, shelf-life freshness — those are all really important,” he said Wednesday. Kukutai noted that the project involved “a huge amount of investment and effort,” and that the company made a commitment to remain in Virginia at least 20 years. “These are long-term, very large physical assets that we’re building. We hope to not just create hundreds of millions of dollars of investment but hundreds of jobs, and to have this be really a historic moment in the development of indoor farming.”

At Wednesday’s announcement, Garland Reiter of Driscoll’s noted that the extreme heat earlier this year in California has caused further challenges to conventional agriculture. “It’s really hard to farm our crop, so we look forward to going indoors,” he said.

Virginia competed with five other states for the project, and Youngkin said he met multiple times with the company’s leadership during late winter and early spring, as Plenty decided where to go.

Plenty Unlimited has a research facility in Wyoming and is currently building a vertical indoor farm in Compton, California. Earlier this year, the company struck a deal to supply leafy greens to Walmart in California, with the possibility of more markets in the future as Plenty opens additional farms.

Virginia has become home to operations for several indoor agriculture companies, including AeroFarms, which announced its expansion plans in Pittsylvania County in July, Beanstalk’s launch in Fairfax County,  and Soli Organic Inc. in Rockingham County, which sells lettuces, herbs and purées at 20,000 stores nationally.

Rendering of the future Plenty Unlimited Inc. campus, including the Driscoll’s strawberry farm, in Chesterfield County’s Meadowville Technology Park

The Virginia Economic Development Partnership and the state Department of Agriculture and Consumer Services worked with Chesterfield County to secure the Plenty deal, and Youngkin approved a $2.4 million grant from the Commonwealth’s Opportunity Fund and $500,000 from the Governor’s Agriculture and Forestry Industries Development Fund — an incentive package created specially for the company, Youngkin said.

Plenty is eligible for other benefits through the Port of Virginia Economic and Infrastructure Development Zone grant program, as well as the major business facility job tax credit for full-time jobs created. VEDP will provide job training and other support through the Virginia Talent Accelerator Program at no cost to the company.

Youngkin said that with AeroFarms and Plenty here, the state will have the two largest indoor vertical farming facilities in the world.

Last week, nonprofit drugmaker Civica Rx announced its plans for a new lab in Chesterfield’s Meadowville Technology Park, a $27.8 million investment expected to create 51 jobs.