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A dramatic shift

Four years ago, no one would have guessed Gov. Ralph Northam would lead the most progressive Virginia administration in modern memory.

A native of Onancock on Virginia’s Eastern Shore, as well as a pediatric neurologist and Army veteran, Virginia’s 73rd governor was eyed by some Democrats with suspicion after acknowledging he’d voted twice for President George W. Bush and had been courted by Republicans to switch parties while serving in the Virginia Senate.

As Northam prepares to hand over the Executive Mansion’s keys to Republican Gov.-elect Glenn Youngkin on Jan. 15, he leaves behind a legacy of governing amid a deadly global pandemic and perhaps the most racially tumultuous period in decades.

And his tenure as governor almost ended barely a year into his term.

The date everything changed was Feb. 1, 2019. In the middle of the General Assembly session, a photo from Northam’s 1984 Eastern Virginia Medical School yearbook pages depicting a person in blackface and a second person wearing a Ku Klux Klan robe first appeared on a right-wing website. Northam quickly apologized in a video statement, acknowledging he was in the photo, although he did not specify which person was him.

State and national news media crowded into the marble halls of the Virginia State Capitol, waiting for the governor to resign in disgrace. State lawmakers issued statements condemning the photo. Former Democratic Govs. Terry McAuliffe, Tim Kaine and Mark Warner all called for Northam’s resignation. Rumors flew among state government workers and politicos that the governor would be stepping down imminently.

The day after his first statement, however, Northam held a press conference, this time denying he was in the yearbook photo but acknowledging a separate occasion during which he wore blackface dressed as Michael Jackson for a party. First lady Pamela Northam prevented the governor from demonstrating his moonwalking skills for the assembled media.

Amid the political pressure, it didn’t appear there was any path forward for Northam to remain in office — but stay he did, due to a confluence of events.

“I am pleased that Virginia stuck with me,” Northam says

But it wasn’t as simple as that. Without a separate set of circumstances, Northam would likely have been a goner.

Pressure continued to mount for Northam to resign, which would have seen Lt. Gov. Justin Fairfax ascend to governor. However, in the days that followed, two women made sexual assault accusations against Fairfax, charges he denies. As it looked like Fairfax too might resign, the chaos surrounding Virginia’s top Democrats continued. Attorney General Mark Herring admitted to wearing blackface at a University of Virginia Halloween party in the 1980s.

That bought Northam extra time.

He turned to Black clergy members and other community members, meeting with them in private to listen and learn over the next couple of months.

“I reached out, and they were receptive,” Northam says. “They supported me, and I think the rest is history.”

Depending on one’s political point of view, Northam either went on to earn Virginia a reputation as the most liberal state in the South through a sincere effort to make amends, or he made a dramatic, two-year effort to rescue his political career and authored his own party’s losses in November 2021.

Cheryl Ivey Green, the executive minister of the First Baptist Church of South Richmond, recalls meeting with Northam during that early period as part of a clergy group. Northam was “refreshingly honest about what happened,” she recalls. “What he made was a commitment to make it right and do right.”

Virginia Gov. Ralph Northam, left, gestures as his wife, Pam, listens during a press conference in the Governors Mansion at the Capitol in Richmond, Va., Saturday, Feb. 2, 2019. At the time, Northam was under fire for a racist photo that appeared in his college yearbook. (AP Photo/Steve Helber)

Green is the chair of the Virginia African American Advisory Board, which Northam created in March 2019 to advise him on areas of interest to Black Virginians, particularly education, health care, public safety, criminal justice and issues impacting small, Black-owned businesses. Green says she doesn’t know if the governor would have focused as much attention on Black concerns if not for the scandal — possibly because as a white man, he had not encountered racism on a personal level.

“When God opens a window because of an issue called ‘blackface’ or whatever, it’s used to open doors for things people like me have been fighting for for years,” Green says. “I’m just grateful he used that, but it took great courage to say, ‘I want to do right.’”

In May 2019, Northam created the nation’s first state cabinet-level post to focus on diversity, equity and inclusion within state government, tapping Janice Underwood in September 2019 as the state’s inaugural chief diversity officer, a position now preserved in Virginia code.

Tragedy, and a shift

Northam did not reemerge publicly in a prominent way until Memorial Day weekend 2019, when a gunman shot 16 people, killing 12, at the Virginia Beach municipal building. Police shot and killed DeWayne Craddock in a prolonged gunfight 35 minutes after the first shots were fired.

That was probably “the toughest day of my four years,” recounts the governor. “I got in the car and drove very quickly to Virginia Beach. On my way there, the numbers of the casualties continued to rise, as well as those that were injured.”

In assuming the familiar role of comforter-in-chief, Northam was able to place his blackface scandal on the back burner. He quickly called the Republican-controlled House of Delegates and the Democratic-controlled state Senate back to Richmond for a special session to enact gun control legislation.

“The Republicans took less than 90 minutes and then adjourned,” Northam says matter-of-factly. “Nothing was done.”

In November 2019, in what Northam attributes to voters saying, “enough is enough,” Democrats won control of the state House for the first time in nearly three decades — although the victory also was likely a reaction to the deeply scorned Trump White House and demographic shifts toward younger, more liberal and racially diverse populations in Northern Virginia.

Led by a previously moderate governor who was indebted to Black leaders who had supported him following the scandal, Democrats in the General Assembly had the power to pass a slate of the most progressive legislation ever seen in Virginia.

Within two years, personal possession of marijuana was legalized, the death penalty was banned, the state created its own voting rights act, minimum hourly wages rose, and abortion restrictions were rolled back. Northam also declared he would remove the state-owned monument to Gen. Robert E. Lee in Richmond, calling it a relic of the Jim Crow era and a symbol of white supremacy. He also launched a state investigation into racist incidents at his alma mater, Virginia Military Institute, following investigative news reports in 2020.

Republican Del. Todd Gilbert, who will become speaker of the House this month after two years of Democratic control, says Northam and state Democrats overreached with their agenda, contributing to Republicans’ dramatic statewide sweep in the November 2021 elections.

A “very cordial” relationship between Republicans and Democrats at the start of Northam’s term “abruptly ended on that day when the revelations of the blackface [photo] occurred, and I don’t know that I’ve spoken to [Northam] since,” Gilbert says.

“There were things that I would never [have] thought that a more middle-of-the-road Gov. Northam would have signed into law, that he was more than willing to sign into law to try and rehabilitate his image,” Gilbert adds. “Pretty much anything that the progressive left was feeding to him, he was putting pen to paper and making it the law of Virginia.”

Northam, predictably, takes a different view, declining to analyze the reasons behind his party’s losses.

“It’s part of democracy,” he says. “More people voted for Glenn Youngkin against Terry McAuliffe, and so he’s the governor-elect. I’ve had a couple of really productive meetings with Gov.-elect Youngkin. I’m confident that he will lead Virginia well.”

Shutdown in Virginia

It’s possible that Northam and state Democrats would have made even more progressive strides if not for the COVID-19 pandemic and its resulting economic crisis. In March 2020, when Virginia recorded its first coronavirus cases, Northam took on a new role as public health leader.

In daily news conferences, Northam reported the commonwealth’s latest case numbers and death statistics and issued a series of executive orders aimed at limiting the spread of the virus. Social distancing and mask mandates encountered some pushback, typically from Republicans following the lead of President Donald Trump, who had declared the country would be back to normal by Easter 2020. By contrast, Northam was cautious, ordering broad shutdowns of schools and “nonessential” businesses through early June.

In September 2020, Northam and first lady Pam Northam contracted COVID-19. The governor says his sense of smell has returned a “little bit, but it’s not normal,” and his sense of taste is still dulled. “The bottom line … is that I’m still alive, thankfully. It could have been a lot worse.”

Although vaccines received federal approval in fall 2020, and vaccination of frontline medical workers started in December 2020, Virginia and other states hit a severe vaccine bottleneck in January 2021. Northam had just declared that doses would be made available to everyone age 65 or older, relying on a promised federal stockpile of vaccine doses that did not materialize. The governor unexpectedly found Virginia ranked last in the nation in vaccine administration efficiency.

“We were really supply-constrained,” recalls Dr. Danny Avula, the state’s vaccine coordinator.

In early January 2021, Northam “called us into the situation room” to discuss the problem, Avula recalls. The Virginia Department of Health “was not going to solve this on its own but needed the breadth of government.” Avula remembers the governor saying that “this had to be an all-hands-on-deck approach.”

By March 2021, the supply problem eased, only to be replaced with a growing unwillingness of some people to get vaccinated.

If there was one thing that rankled the governor publicly, it was outright opposition — primarily on the part of Republicans — to wearing masks and getting vaccinated. Northam saw it as a deadly politicization of a health crisis that has resulted in the deaths of more than 800,000 Americans in less than two years.

The usually mild-mannered Northam would sometimes call people who flouted COVID mitigation measures “selfish” during news conferences, saying they were putting health care workers and the general public at risk.

Even in November 2021, when Virginia was ranked No. 10 out of the 50 states for percentage of its population who were fully vaccinated against the coronavirus, Northam was still frustrated that 30 to 35 Virginians were dying per day, a “totally avoidable” toll, he says.

“Virginia has done well, but we probably could have had this pandemic in the rearview mirror if everybody would be part of the solution, if everyone would look at this like a biological war, which is really what it is.”

Economic wins

Even amid the pandemic, the blackface controversy and the Democrats’ progressive agenda, one recent feature of Virginia politics remained steady through Northam’s term: economic development wins.

In November 2018, Amazon.com Inc. announced it would be locating its $2.5 billion-plus East Coast HQ2 headquarters in Arlington, bringing approximately 25,000 jobs. CNBC cited the deal in 2019 while anointing Virginia as its Top State for Business, an achievement Virginia repeated in 2021 after a one-year postponement in the rankings due to the pandemic. A plethora of big deals from Microsoft, Google, Facebook, Siemens Gamesa and other major corporations followed.

Stephen Moret, who was president and CEO of the Virginia Economic Development Partnership from January 2017 through December 2021, says Northam was always willing to meet with business executives to seal economic development deals, and the governor’s cabinet members were particularly accessible.

Northam also invested heavily in workforce training, including the state’s Tech Talent Investment Program to produce more than 31,000 computer engineering and science graduates over 20 years, and VEDP’s Virginia Talent Accelerator Program, a collaboration with the Virginia Community College System to provide free job training and assistance for companies locating or expanding in the commonwealth.

“I always found [Northam] to be smart and thoughtful,” Moret says, adding that, unlike some political leaders, Northam was willing to share credit for successes. “Governors love to make the announcements, but a lot of people contribute to these projects. I see his legacy as a combination of commitment to rural Virginia — particularly broadband access — and his support for major advances in talent development.”

Northam, who plans to return to his medical practice in Norfolk after his term ends, takes pride that his administration was “probably, in the history of Virginia, the most progressive and also the most successful. Our economy is doing better than it has ever done. It’s proof that you can have both. I think that would be the legacy that I’ll leave behind.” 

U.Va. alumni make $5M gift to fund professorship

University of Virginia alumni Donna and Richard Tadler made a gift of $5 million that will be used to create a professorship of entrepreneurship at their alma mater, U.Va. President Jim Ryan announced earlier this month.

The gift will be matched with $5 million more from the university’s Bicentennial Professorship Fund, for a total investment of $10 million, according to U.Va.’s announcement. The Tadlers, who live part time in Charlottesville, met at U.Va. and were married there in 1979. Richard Tadler is a 1978 graduate of the McIntire School of Commerce and has worked in private equity funding for 40 years. He is presently a senior advisor at TA Associates, where he has worked since 1987, and is based in Boston. Donna Tadler is a 1979 graduate of the School of Education and Human Development, and she worked previously at CYRK Inc.

“Much of what matters to donors is the opportunity to work across schools and curriculums,” Richard Tadler said in a statement. “That’s why a university professorship is so compelling to us. Entrepreneurship is still in the very formative stages in academic circles, and we wanted to focus on something that will be transformative for a university that was so important to both of us. This is a chance to include entrepreneurship as one of 10 very significant academic fields that can be raised to a higher level at U.Va. We are honored to help make that happen.”

U.Va. started the university professorship program to award distinguished scholars whose work is interdisciplinary, allowing the recipient to teach in any discipline at the university. The president and provost will appoint the holder of the Tadler professorship.

“Nurturing an entrepreneurial culture at U.Va. requires smart investment in faculty,” Ryan said in a statement. “With this university professorship, Donna and Richard Tadler are giving students across Grounds the opportunity to learn business and life skills that will foster growth and success. Donna and Richard are active and devoted alumni, and I am incredibly grateful for their generous gift. Their thoughtful investment will yield long-lasting benefits to our community.”

Former MUFG Americas head tapped as next Va. finance sec

Stephen Emery Cummings, who retired in March as the president and CEO of Mitsubishi UFJ Financial Group (MUFG) in the Americas, has been chosen as Virginia’s next secretary of finance, Gov.-elect Glenn Youngkin announced Wednesday.

“Lowering taxes and restoring fiscal responsibility in Richmond is a primary focus of our Day One Game Plan, and Steve’s experience and expertise will help make sure we deliver real results for Virginians. Steve shares my vision of respecting Virginians’ hard-earned tax dollars and ensuring the commonwealth’s budget is managed effectively and efficiently, and he has the skillset and leadership qualities that our team needs to make Virginia the best place to live, work, and raise a family,” Youngkin said in a statement.

Cummings has a long resume in the area of investment banking, having also served as managing director and chairman of UBS’ American investment banking branch, Wachovia Corp.’s global head of corporate and investment banking, and chairman and CEO of Bowles Hollowell Conner & Co.

A graduate of Columbia Business School and Maine’s Colby College, Cummings was the first non-Japanese CEO for Mitsubishi’s American market upon his hiring in 2015, and he oversaw the U.S. businesses held by the Bank of Tokyo-Mitsubishi UFJ, as well as serving as a member of MUFG Union Bank’s board of directors. He has been based in New York.

Aubrey Layne, Virginia’s former secretary of finance, joined Sentara Healthcare as its senior vice president and chief of staff in July. Youngkin, a Republican, takes office Jan. 15, 2022.

Virginia named top business climate in U.S. by Business Facilities

Business Facilities magazine, a trade publication that focuses on corporate site selection and economic development, has named Virginia first in the nation for its overall business climate, Gov. Ralph Northam announced Tuesday.

The state joins fellow honorees Tennessee (recognized for best dealmaking) and Massachusetts, recognized for its workforce and educational system in Business Facilities’ annual ranking of the states. Virginia last won Business Facilities’ state of the year award in 2018, followed by Texas in 2019 and North Carolina last year.

“For the first time, we thought it was appropriate to name three winners in this prestigious process,” Business Facilities Editorial Director Seth Mendelson said in a statement. “As businesses look to expand or relocate, the questions they have about communities are becoming more complex. They want to know as much as they can about a community before making a final decision. We think this is going to help them make informed choices. The commonwealth’s location, right next to the District of Columbia, combined with its pro-business work environment, strong workforce and educational systems, makes it a great place to do business in.”
Business Facilities notes that Virginia has an unemployment rate of 3.6%, the 10th-lowest in the country, and it has a workforce of 4.1 million people as well as successful workforce programs, including the Virginia Talent Accelerator Program, a collaboration between the Virginia Community College System and the Virginia Economic Development Partnership that provides on-site work training, and Fast Forward Virginia, a VCCS program that provides industry credentials after a short-term training program that typically takes between six and 12 weeks.
“I am proud of the work our administration has done to develop the strongest business-friendly environment in the nation,” Northam said in a statement. “During my term, we’ve attracted more than $80 billion in economic investment, creating more than 100,000 jobs — a record for any Virginia governor. Virginia has set a new standard for all other states. Companies want to invest here and create jobs here because of our welcoming environment, commitment to developing our workforce, and our existing infrastructure.”
In July, Virginia was named the No. 1 state for business by CNBC for the second time in a row and five times in all.

Plastics manufacturer to produce 300 jobs in Chesterfield

Starplast USA, a subsidiary of Israel-based plastic manufacturer Starplast, plans to invest $17.7 million in a new facility in Chesterfield County, creating 300 jobs over the next five years, Gov. Ralph Northam announced Tuesday.

“Starplast chose Chesterfield County for its new manufacturing operation because the geographic location is very attractive, especially given its proximity to the East Coast and the Port of Virginia,” Starplast CEO Danny Schwartz said in a statement. “Additionally, Virginia — and in particular the Richmond area — has a strong workforce with readily-available talent.”
According to Chesterfield’s economic development authority, Starplast will retrofit an existing industrial building near Meadowville Technology Park, on Bermuda Hundred Road in the southern part of the county.
Starplast was founded in 1958, and its U.S. subsidiary started in 2005, according to the governor’s office. Starplast USA produces housewares, garden storage and toys, among other plastic products. Virginia competed with Ohio and Pennsylvania for the project. In 2018, Starplast USA opened its first U.S.-based manufacturing plant in Houston.
“We are so pleased to see global manufacturers like Starplast USA planting their roots right here in Virginia,” Northam said in a statement. “Our strategic East Coast location, world-class port facilities, competitive operating costs, and robust manufacturing workforce, make us a prime destination for international companies. We welcome a long partnership with Starplast USA and look forward to their future success.”
The Virginia Economic Development Partnership worked with Chesterfield County and the Greater Richmond Partnership to secure the project, and it will support job creation through the Virginia Jobs Investment Program at no charge to Starplast. The company is eligible to receive 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.

Merrick named as state’s next commerce secretary

Caren Merrick, the CEO of Virginia Gov.-elect Glenn Youngkin’s nonprofit Virginia Ready Initiative, has been chosen to serve as Virginia’s next secretary of commerce and trade, Youngkin’s campaign announced Tuesday.

Before leading VA Ready, a role in which she managed $10 million in public and private funding to assist Virginians affected by the COVID-19 pandemic and recent labor shortage, Merrick started webMethods, a software company that grew to $200 million, and is a partner in NextGen Venture Partners, which invests in startups. She also has served on multiple companies’ boards with combined assets of $12 billion and revenues of $3 billion, according to Youngkin’s announcement, and was a director of the Metropolitan Washington Airports Authority. Merrick is also a member of Gladstone Capital’s board, as well as a director of the company’s investment, land and commercial sectors since 2014.

In 2011, Merrick ran unsuccessfully as a Republican for the Virginia Senate District 31 seat, defeated by Democrat Barbara Favola, who continues to hold the seat.

“Virginia’s jobs machine has stalled out, and Caren is going to play a pivotal role on the team that will jumpstart our economy and reinvigorate job growth here in the commonwealth,” Youngkin said in a statement. “Caren is an innovator, a business builder and a true leader in workforce development — the kind of experience needed to develop talent, train workers, attract investment and make Virginia the best state to start a business as we set out to add 400,000 jobs and launch 10,000 startups.”

Brian Ball, the current secretary of commerce and trade, has served in that role since April 2018.

A graduate of UCLA and the Harvard Business School’s corporate governance program, Merrick lives in Northern Virginia with her husband and two sons. She is the second Cabinet-level appointee announced by Youngkin, who named Aimee Rogstad Guidera as education secretary on Monday. A Republican, Youngkin takes office Jan. 15, 2022.

Dominion orders 176 turbines from Siemens Gamesa

Dominion Energy Inc. has ordered 176 offshore wind turbines from Siemens Gamesa Renewable Energy S.A. for its 2.6-gigawatt, $9.8 billion Coastal Virginia Offshore Wind project, the utility announced Monday.

The Richmond-based Fortune 500 utility declined to release financial details of the contract.

The SG 14-222 DD turbines — at more than 800 feet tall, the world’s largest offshore wind turbines in operation — are set to be fully operational in late 2026 and produce up to 14.7 megawatts of power apiece, enough to generate electricity for 660,000 homes. According to Siemens Gamesa, all of the turbines’ parts, including blades that will be created at the company’s forthcoming facility in Portsmouth, will be completed by the first quarter of 2023. Under the contract, the Spanish company also will provide 10 years of service on the turbines, which are expected to last 30 years.

Announced in October, the first U.S.-based offshore wind turbine blade manufacturing plant is expected to create 310 jobs and cost $200 million.

Dominion has been moving swiftly this fall in meeting deadlines for the project set to be built 27 miles off the coast of Virginia Beach. After receiving all components of the turbines next year, Siemens Gamesa expects to begin installing the 176 turbines in 2024, keeping to the utility’s timeline.

In November, Dominion Chairman, President and CEO Bob Blue said during a third-quarter earnings call that the CVOW project will cost approximately $2 billion more than the previously estimated $7.8 billion price tag, due to rising commodities expenses, mounting inflation pressure and onshore infrastructure costs. The utility submitted its application for the project to the Virginia State Corporation Commission on Nov. 5, with a public hearing set for May 17, 2022.

Five major agreements represent about $6.9 billion of the $9.8 billion budget, and the remaining project costs are $1.4 billion for onshore transmission facilities and projected system upgrades and another $1.5 billion for other project costs including contingency onshore transmission facilities necessary to interconnect offshore generation components reliably and to maintain the structural integrity and reliability of the transmission system in compliance with mandatory North American Electric Reliability Cooperation (NERC) standards.

The wind farm will help Virginia reach its target, mandated by the Virginia Clean Economy Act, of having 100% carbon-free energy production by 2045, and Dominion Energy’s goal of net zero carbon and methane emissions by 2050. President Joe Biden’s administration has set a 2030 target to have installed 30,000 megawatts of U.S. offshore wind power capacity.

The prototype of the 14.7-megawatt turbines to be created for CVOW was installed in November in Denmark and is currently producing power, Siemens Gamesa said in its announcement Monday. The company provided the two 6-megawatt turbines currently in use in the pilot project off Virginia Beach, which started in October 2020.

Northam proposes $2.1B in tax cuts for ‘working people’

Virginia Gov. Ralph Northam, who leaves office next month, proposed four tax cuts Tuesday, including eliminating Virginia’s 1.5% sales tax on groceries and providing an income tax cut for low- and middle-income Virginians.

He also proposed one-time tax rebates — $250 for individuals and $500 for married couples — and ending “accelerated sales tax” payments by retailers. Virginia code requires that the outgoing governor create a budget for the following year, even though his successor may have vastly different priorities, but Northam’s proposals are similar to those recommended by Virginia Gov.-elect Glenn Youngkin, who campaigned on a promise to end the state’s grocery tax and make other cuts. Youngkin takes office Jan. 15, 2022.

According to Northam’s announcement, the four tax policy changes would reduce state revenues by $2.1 billion, with most of the amount a one-time reduction for the state’s General Fund, and $419 million in ongoing obligations. The budget also would put $1.7 billion into the Revenue Stabilization Fund, set aside $1 billion for the Virginia Retirement System and allocate $2.8 billion for capital projects in state government and higher education buildings.

“When Virginia cuts taxes next year, it should be done in a way that benefits working people,” Northam said in a statement. “Many professionals made it through the pandemic fine, as their work simply moved online. But workers haven’t been so lucky when their jobs require close contact with other people. Some jobs simply can’t move online — restaurant workers, early childhood educators, home care attendants and others — and we all depend on the people who do this work. Virginia can help working people by eliminating the state grocery tax, providing one-time rebates, and giving a tax break to people who are working.”

Under Northam’s budget, the state would end the sales tax on groceries, which is the case in many states and, according to the governor’s office, would not affect local tax revenues. Also, Northam proposed making up to 15% of the federal earned income tax credit (EITC) refundable for eligible low- and middle-income residents, which depends on income level, marital status and family size. The $250 and $500 one-time tax rebates would be available to anyone who files state income taxes. Finally, retail sales tax payments — which are required to be paid before retailers collect revenues, in response to the 2008 Great Recession — would no longer be charged early.

Northam, who has been traveling the state in a farewell “Thank You, Virginia” tour, noted that Virginia ended the 2021 fiscal year with a record surplus of $2.6 billion. Under Northam’s proposed budget, the state would have $3.8 billion in financial reserves.

Youngkin, the first Republican elected as Virginia’s governor since Bob McDonnell in 2009, said this month at the Virginia Economic Summit & Forum on Trade that he would double the state’s standard tax deduction, provide a one-time tax rebate, eliminate the grocery tax and suspend for one year the most recent increase in the state’s gas tax.

Qualtrics expansion expected to bring 400 jobs to Fairfax

Qualtrics, a data analytics and experience management software company based in Seattle and Provo, Utah, is expanding its presence in Fairfax County and expects to create 400 jobs in a new location in Reston, Gov. Ralph Northam announced Thursday.

The company will move from its former office in Reston to an 85,000-square-foot space at 1906 Reston Metro Plaza, investing $15.9 million. Virginia competed with Pennsylvania and Ohio for the project, according to a news release from the Fairfax County Economic Development Authority. The building is a 150,000-square-foot office tower near the Reston Metro station.

“Virginia offers access to the highest concentration of tech talent in the United States,” Northam said in a statement. “The commonwealth’s diverse tech ecosystem is driven by our stable business climate, competitive operating costs, and a world-class workforce. We look forward to Qualtrics’ continued success in Fairfax County.”

“Organizations everywhere are undergoing an experience transformation, and Qualtrics has an incredible opportunity in front of us. With its strong talent pool, Virginia is a perfect place for Qualtrics to grow,” Qualtrics CEO Zig Serafin said in a statement. “The investments we’re making today will put us in an even stronger position to help our customers build their next great customer, employee, product and brand experiences.”

FCEDA worked with the Virginia Economic Development Partnership to secure the project for Virginia. Northam approved a $1.4 million grant from the Commonwealth’s Opportunity Fund to assist Fairfax County with the project, as well as $2 million in from the Virginia Economic Development Incentive Grant, a program of performance-based incentives for large economic development projects bringing high-wage jobs to the state.

In August, Qualtrics announced its purchase of Reston-based software company Clarabridge Inc. in a nearly $1.13 billion all-stock deal that is expected to close Dec. 31. Both companies’ boards have approved the deal.

“This marks the second vote of confidence that Qualtrics has made in our business community this year,” Victor Hoskins, FCEDA’s president and CEO, said in a statement. “First was the purchase of Clarabridge, a homegrown tech success story, and now the expansion being announced today. We thank and congratulate Qualtrics for this tremendous growth and we stand ready to assist the company further as it expands its footprint here.”

 

Lee Enterprises rejects Alden’s $144M purchase offer

Lee Enterprises Inc.’s board unanimously rejected Alden Global Capital’s $144 million buyout offer made last month, saying it “grossly undervalues” the company and its newspapers, which include 31 publications in Virginia.

“The Alden proposal grossly undervalues Lee and fails to recognize the strength of our business today, as the fastest-growing digital subscription platform in local media, and our compelling future prospects,” Lee Chairman Mary Junck said in a statement released Thursday. “We remain confident in our ability to create significant value as an independent company.”

Alden, the hedge fund that owns The Virginian-Pilot and Daily Press in Virginia, as well as other former Tribune Publishing Co. newspapers, proposed purchasing Iowa-based Lee at $24 a share. If successful, the purchase would have placed 12 of Virginia’s daily legacy newspapers with approximately 330,000 circulation under one company — a firm that is known for eliminating newsroom positions at its assets, including the Chicago Tribune, Denver Post, New York Daily News, Boston Herald and the Baltimore Sun, as well as closing newsrooms, including the Pilot and Daily Press’ offices.

Lee newspapers’ newsroom unions decried the prospect of Alden ownership, urging the board to reject the offer.

“Alden has cut their staffs at twice the rate of competitors, resulting in the loss of countless jobs,” the unions’ open letter reads. “They’ve fostered unhealthy and untenable workplaces that make it impossible to retain talent. They’ve shuttered physical newsrooms to leave journalists working from their cars, and at properties they lease, Alden stiffs local landlords for the rent. Their investment history is littered with bankruptcies and federal probes, and they use secretive money to fund their shady dealings.”

Among the signatories were the Richmond Newspapers Professional Association, representing newsroom employees at the Richmond Times-Dispatch; Blue Ridge NewsGuild, representing The Daily Progress in Charlottesville; and Timesland News Guild, The Roanoke Times’ newsroom union; as well as unionized newsrooms in Nebraska, Illinois, Iowa, Wisconsin, Montana, New York, Washington and the national United Media Guild.

Lee’s board previously took action to prevent a hostile takeover by Alden, which owns more than 6% of Lee’s stock. Lee’s board adopted a “poison pill” plan that would allow other shareholders to buy shares at a 50% discount or possibly get free shares if Alden gains control of more than 10% of Lee’s stock.

Lee owns 31 newspapers in Virginia, purchased in January 2020 from a subsidiary of Berkshire Hathaway Inc., Warren Buffett’s firm. Among the Virginia newspapers under Lee’s ownership are the Times-Dispatch; Bristol Herald Courier; The News & Advance in Lynchburg; The Free Lance-Star in Fredericksburg; Martinsville Bulletin; Danville Register & Bee; The News Virginian in Waynesboro; The Roanoke Times; and The Daily Progress.

Lee reported strong fourth quarter fiscal 2021 results with 37% growth in digital revenue and 65% growth in digital-only subscriptions, the company reported Thursday.