Please ensure Javascript is enabled for purposes of website accessibility
Upcoming Event

Best Places to Work in Virginia

Hamburger Menu Hamburger Menu

byline: Kate Andrews

Now shed of wireless assets, Shentel embraces broadband

Shenandoah Telecommunications Co., or Shentel, sold its wireless assets in July to T-Mobile USA Inc. for $1.94 billion, leaving the Edinburg-based company with approximately $1.25 billion in proceeds after paying off outstanding loans and ending contracts.

The sale is an outgrowth of Shentel’s former wireless affiliate contract with T-Mobile (and earlier with Sprint Corp., which was purchased by T-Mobile in April 2020).

After Shentel pays a special dividend of $18.75 per share to its shareholders (totaling $936.6 million) in August, the company plans to invest the rest of the money in broadband expansion.

The company, which serves customers in western Virginia, West Virginia, Maryland and Kentucky, has focused on growing its Glo Fiber and Beam broadband services.

Since 2020, Shentel has laid down Glo Fiber residential fiber optic lines in Harrisonburg, Staunton, Winchester, Lynchburg and Roanoke, with Blacksburg on the way. And during the pandemic, the company’s Beam line, which provides 5G service via fixed wireless broadband to rural areas, saw a major increase in customers who suddenly needed robust internet while working from home.

“We’ve got a lot in the pipeline,” says Ed McKay, the newly appointed executive vice president and chief operating officer who assisted with Shentel’s transition out of the wireless business. For starters, he says, Beam is moving into Albemarle and Rockingham counties soon. “The key, in our perspective, is to go for areas that truly are underserved.”

As of July, the company employs 886 people, down from about 1,000 before its wireless assets were sold, says Shentel President and CEO Christopher French. Some former wireless employees have moved to T-Mobile, and others moved to different positions within Shentel, he adds.

Shentel’s expansion of broadband along Virginia’s western edge aligns with the goals of state and federal officials. Gov. Ralph Northam is aiming for full statewide broadband coverage by 2024, while President Joe Biden has also placed a high priority on internet access in his infrastructure plan, allocating $65 billion
to boost broadband infrastructure.

French notes that the company plans to seek partnerships with local governments to expand broadband access, but the company still faces large challenges in bringing reliable internet to more remote areas.

“You can’t legislate away the distance and the cost to connect those locations,” he says. “A lot of these [government] initiatives are helpful, but they can be most impactful if they’re targeted toward underserved areas.”

Va. jobless claims saw slight decrease last week

Virginia’s initial and continued unemployment claims decreased last week, the Virginia Employment Commission reported Thursday.

For the filing week ending July 24, the state recorded 6,178 new jobless claims, down 126 from the previous week, while continued claims totaled 33,603, down 1,599 from the previous week. Compared to the same week last year, continued claims were 90% lower than the 344,826 claims the same week in 2020, while initial claims last week were 86% lower than a year ago, when claims reached 42,966.

People receiving unemployment benefits through the VEC must file weekly unemployment claims in order to continue receiving benefits.

On Monday, the General Assembly will convene for a special session to allocate federal stimulus funds. Gov. Ralph Northam has proposed spending $862 million to refill the state’s unemployment trust fund, which funds unemployment benefits, and allocating $73.6 million to modernize the VEC, which is under court order to get through a backlog of 92,000 cases by Labor Day. As of July 17, the agency had brought the backlog to about 23,300, but it has not said how many new cases have been added to the load over the summer.

More than half of the claimants who filed for benefits last week (and the prior four weeks) reported being in these industries: accommodations/food service; administrative and waste services; retail; and health care and social assistance.

The regions of the state that have been most impacted continue to be Northern Virginia, Richmond and Hampton Roads. 

Nationwide, the advance figure for seasonally adjusted initial claims last week was 400,000, a decrease of 24,000 from the previous week’s revised level, according to the U.S. Department of Labor. There were 1,202,278 initial claims during the same week last year.

Va. Beach apartment complex where Pharrell lived sells for $24.5M

The Virginia Beach apartment complex where music superstar Pharrell Williams lived until he was 7 has been sold for $24.5 million to Fairstead, a New York-based real estate company focused on sustainable development and affordable housing.

The company announced Thursday that it plans a $15 million overhaul of the Atlantis Apartments in Virginia Beach’s Seatack neighborhood. The 12-acre complex’s 19 two-story buildings with 208 units house 600 residents. Fairstead plans to renovate the apartment complex and its common areas over the next 18 months, including adding a community garden, fitness center and computer room. The seller was CP Atlantic LP.

The Virginia Beach Department of Housing and Neighborhood Preservation will partner with the company, and apartments will continue to be subsidized, with residents paying 30% of their income in monthly rent, while the U.S. Department of Housing & Urban Development and the Virginia Housing Development Authority will reimburse the remainder to Fairstead, according to an article in The Virginian-Pilot.

Grammy-winning superstar Williams has stayed connected to his hometown through various projects, including Atlantic Park, a $325 million surf park, apartments, retail offices and an entertainment venue that Williams is co-developing on 10 acres in Virginia Beach near the Oceanfront.

The city and Fairstead plan to hold Atlantis Community Day on Aug. 7, featuring a job and health fair, as well as music and games.

Va. new jobless claims edged up last week

Virginia’s initial unemployment claims increased slightly last week while continued claims decreased again, as they have for several weeks, the Virginia Employment Commission reported Thursday.

For the filing week ending July 17, the state recorded 6,304 new jobless claims, up 352 from the previous week, while continued claims totaled 35,202, down 1,135 from the previous week. Compared to the same week last year, continued claims were 90% lower than the 357,098 claims in 2020, while initial claims last week were 83% lower than a year ago, when claims reached 37,946.

People receiving unemployment benefits through the VEC must file weekly unemployment claims in order to continue receiving benefits.

More than half of the claimants who filed for benefits last week (and the prior four weeks) reported being in these industries: accommodations/food service; administrative and waste services; retail; and health care and social assistance.

The regions of the state that have been most impacted continue to be Northern Virginia, Richmond and Hampton Roads. 

Nationwide, the advance figure for seasonally adjusted initial claims last week was 419,000, an increase of 51,000 from the previous week’s revised level, according to the U.S. Department of Labor. There were 1,373,239 initial claims during the same week last year.

Breeden Co. names three new executives

The Breeden Co., the Virginia Beach-based real estate firm, announced last week it has promoted two people to become vice presidents, as well as hiring a third person as a vice president.

Brenda Karp, currently vice president of Breeden Realty, has been promoted to vice president of business development for the entire company, effective Oct. 1. She’ll be responsible for developing the company’s national footprint, particularly third-party management and construction clients.

Christine Gustafson has been promoted to vice president of marketing and public relations, as well as being named to the executive leadership team, after having been hired last year as corporate marketing and public relations director.

Jake Marshall joins the company as vice president of acquisitions and development, as well as part of the executive leadership team. He previously worked with Revolution, a Washington, D.C.-based private equity firm, and Ernst & Young, where he was a senior tax accountant.

The Breeden Co. has more than 15,000 apartments that it owns, manages or develops, as well as more than 2 million square feet of retail and office space.

Newport News hotel sold for $5.3 million

The Comfort Inn hotel at Newport News’ Patrick Henry Mall has been sold for $5.3 million, Grand Bay Advisors announced earlier in July. The 123-room property will still be operated as a Comfort Inn.

Virginia Beach-based Omaarav Hospitality purchased the property from Landmark Hotel Group, which is also based in Virginia Beach. Grand Bay Advisors, a boutique hotel brokerage and advisory firm headquartered in Norfolk, facilitated the sale.

Centra names new president and CEO

Lynchburg-based health system Centra announced Friday that Amy F. Carrier will be its next president and CEO, effective Sept. 7. The Hampton Roads market president for the Bon Secours Mercy Health system, Carrier will replace interim CEO Richard Tugman, who will resume his post as president of the Piedmont Community Health Plan.

“We conducted a comprehensive national search to ensure we found the best fit for our communities, and the board is confident in the highly qualified individual we have selected to assume leadership of Centra,” Centra Board of Directors Chair Amy Ray said in a statement. “Ms. Carrier’s mission-driven focus, approachability and proven track record of health care leadership make her uniquely qualified to successfully lead Centra well into the future.”

Carrier, who received her bachelor’s degree in labor studies from Penn State University and an MBA from Indiana University of Pennsylvania, has worked in health care for 28 years. She was previously chief operating officer for the Bon Secours Virginia Health System.

Centra has four hospitals in Lynchburg, Farmville and Bedford among its 50 facilities. It employs more than 8,100 people and serves 500,000 patients in Central and Southern Virginia. In 2020, the system received $1.2 billion in revenue. Dr. Andrew Mueller resigned as president and CEO in January to join MaineHealth as its CEO.

Virginia unemployment rate improves to 4.3% in June

Virginia’s unemployment rate dropped again in June, landing at 4.3%, 0.2 points below May’s jobless rate, Gov. Ralph Northam announced Friday.

In June 2020, the unemployment rate was at 8.8%, 4.5% higher than June 2021. Virginia also continued to trend lower than the nation, which was at 5.9% unemployment last month, and the state had the fourth-lowest seasonally adjusted joblessness rate, according to Northam’s office.

“Virginia’s falling unemployment rate and expanding labor force show the strength of our economy and business climate,” Northam said in a statement. “We continue to be recognized as best place in America to do business because we are building a commonwealth where both workers and employers can thrive. We can all be optimistic about what the future holds as we move beyond this pandemic.”

The labor force increased by 4,343 to 4.23 million in June, with the number of unemployed Virginians decreasing by 5,448, according to data from the Virginia Employment Commission. The number of employed Virginians increased by 9,791 to 4.05 million.

The largest year-over-year job gains occurred in the leisure and hospitality sector, which gained 67,200 jobs or 25.5%, and the next largest gain was in trade and transportation, which increased by 40,100 jobs, or 6.5%. Professional and business services saw a gain of 26,300 jobs, or a 3.5% increase. Public sector jobs rose by 10,500 in June, after months of declining public sector employment.

The VEC reported that eight out of Virginia’s 10 metropolitan areas saw nonfarm job gains during June, with the Richmond region gaining 2,800 jobs and Virginia Beach-Norfolk-Newport News ranking second with 2,100 more jobs. Lynchburg lost 300 jobs and Blacksburg-Christiansburg-Radford marked a 100-job decrease during the month.

Va. jobless claims continued decline last week

The state’s initial unemployment claims continued to decrease last week, dipping below 6,000 in the filing week ending July 10, the Virginia Employment Commission reported Thursday. Continued claims also decreased last week.

For last week, initial claims totaled 5,952, a decrease of 873 claims from the previous week, while continued claims went down by 1,453 to 36,337, VEC said. Compared to the same week last year, continued claims were 90% lower than the 372,070 claims in 2020, while initial claims last week were 82% lower than a year ago, when they reached 32,292. People receiving unemployment benefits through the VEC must file weekly unemployment claims in order to continue receiving benefits.

More than half of the claimants who filed for benefits last week (and the prior four weeks) reported being in these industries: accommodations/food service; administrative and waste services; retail; and health care and social assistance.

The regions of the state that have been most impacted continue to be Northern Virginia, Richmond and Hampton Roads. 

Noting that the Hampton Roads area has seen a 40% decline in claims over the past two months, Dominique Johnson, a research associate at the Dragas Center for Economic Analysis and Policy at Old Dominion University’s Strome College of Business, said in a statement, “While we have yet to reach pre-pandemic levels, the number of claims filed in May and June 2021 had fallen below the roughly 10,000 initial claims filed in a single month at the height of the Great Recession. We expect this trend to continue in the coming months as the recovery continues to accelerate.”

However, notes Dragas Center Director Robert McNab, “While fewer residents of Hampton Roads are filing for and receiving unemployment benefits, we cannot forget that there were 69,000 fewer workers in the labor force in May 2021 when compared to February 2020. As the unemployment rolls continue to shrink over the summer, the next challenge will be to bring these workers back into the regional labor market. Rising wages and the return to full-time instruction in public schools in the fall will help, but employers in retail trade, restaurants and bars, and the tourism industry will continue to struggle to fill open positions in the coming months. Increasing COVID-19 infections, hospitalizations, and deaths amongst the unvaccinated due to the rise of the Delta variant also threaten to undermine the relatively tepid regional recovery.”

Nationwide, the advance figure for seasonally adjusted initial claims last week was 360,000, a decrease of 26,000 from the previous week’s revised level, according to the U.S. Department of Labor. There were 1,512,549 initial claims during the same week last year.

Virginia ranked CNBC’s Top State for Business again

Virginia retained its place as CNBC’s Top State for Business this year, beating out North Carolina and Texas and becoming the first state to achieve the honor twice in a row and five times in all, the cable business news channel  announced Tuesday morning.

Virginia Gov. Ralph Northam appeared live Tuesday morning on CNBC’s “Squawk Box” sitting in front of the Norfolk harbor, where ships blasted their horns and sprayed water in celebration following the announcement that Virginia had again ranked No. 1 in CNBC’s America’s Top States for Business competition. Virginia also took the top spot in CNBC’s annual state rankings in 2019, 2011, 2009 and 2007. CNBC did not rank the states in 2020 due to the COVID-19 pandemic.

“When you do the right thing for people, it’s not only the right thing, but it’s good for business,” Northam said, alluding to the measures the state has taken toward supporting diversity, equity and inclusion efforts over the last two years. In July 2019, when Virginia last topped CNBC’s Top States for Business, Northam was still in hot water over the revelation of a blackface photo on his pages from his medical school yearbook. He has focused the remainder of his term on increasing diversity, equity and inclusion — legalizing marijuana, increasing the state’s minimum wage, abolishing the death penalty and overhauling the state’s procurement process to make sure woman- and minority-owned businesses receive equal opportunities to bid and win state contracts.

Two years ago, Virginia’s 2019 win was a bright point, coming after the state had fallen to 13th place in 2016. Northern Virginia economic development officials and Gov. Ralph Northam were taking a victory lap after landing Amazon.com Inc.’s East Coast HQ2 in Arlington in late 2018, a $2.5 billion project that is expected to bring 25,000 jobs. This time, the reasons behind the ranking are more nuanced. CNBC weighted its decisions toward the cost of doing business, also taking inclusiveness and public health measures into consideration, acknowledging the COVID-19 pandemic and 2020’s nationwide racial justice-focused protests.

Virginia also is emerging from the pandemic, with more than 70% of its residents having been at least partially vaccinated against COVID. Northam discussed recovery efforts with CNBC and also mentioned his “Get Skilled, Get a Job, Give Back” program, one of his signature initiatives. Known as G3, the program provides tuition funding for eligible low- and middle-income students who are pursuing degrees in high-demand fields, including health care,  technology and manufacturing.

In an interview with CNBC about this year’s win, Virginia Port Authority CEO and Executive Director Stephen Edwards said, “We’ve seen a remarkable V-shaped recovery from COVID. May 2021 was an all-time record for the port, 56% bigger than we were last year, and significantly above 2019.”

“Today’s ranking reaffirms what we already knew — Virginia is the best state for business,” Virginia Chamber of Commerce President and CEO Barry DuVal said in a statement. “The ranking reflects our longstanding investments in workforce training and our robust education system, while also recognizing the increasingly inclusive nature of the commonwealth. This ranking validates our approach to maintain Virginia’s standing as the top state for business through long-term planning efforts and targeted policy recommendations as part of Blueprint Virginia.”

Virginia outranked North Carolina, which came in second place, marking that state’s best finish since CNBC began the comparative study of the states in 2007. Maryland ranks at 12th, the most-improved state, moving up from its 2019 ranking of No. 31.

“Virginia continues to be the best place to do business because of our world-class education institutions, talented workforce, and shared commitment to equity, diversity, and inclusion,” Northam said in a statement Tuesday. “I am proud of what this coveted recognition says about the policies we have put in place and how they are driving growth and innovation across our commonwealth. Our success is a blueprint for creating a vibrant economic climate in the post-pandemic world — and proves that when you lift everyone up, when you treat people right, and when you celebrate diversity, it’s also good for business.”

CNBC based this year’s rankings on 85 metrics — up from 64 metrics in 2019 — across 10 categories, including workforce, education, life, health and inclusion, access to capital, cost of doing business and cost of living. This year, cost of doing business was the most heavily weighted category, which had previously been taken by workforce. The top category is determined by states’ economic development marketing.

Virginia topped the education category, based on multiple measures of K-12 education including test scores, class size and spending, as well as the number of higher education institutions in each state. Virginia also did well in workforce, coming in third. The workforce category considers factors such as the availability of workers, the concentration of science, technology, engineering and math (STEM) workers, union membership and right to work laws and the diversity of each state’s workforce.

The commonwealth ranked 11th in the life, health and inclusion category, which CNBC previously called quality of life. The change reflects the addition of inclusiveness and public health measures, such as voting rights and COVID-19 vaccination rates.

Northam told CNBC, “We’ve had a number of elections here in Virginia. They’ve been safe. We’ve had accurate results. … We want to make it less cumbersome to vote.”

Northam also addressed the public health metrics. “Initially, it was tough to get PPE and then testing supplies. We’ve had a very successful vaccine rollout in Virginia. Over 73% of Virginians have now had their first shot or two,” he said.

Virginia scored 1,587 out of 2,500 points.

Runners up included:

2. North Carolina was helped by Apple locating its first East Coast campus outside Raleigh, but hurt by the lack of statewide public accommodation law to protect nondisabled residents against discrimination, CNBC wrote.

3. Utah ranked high for its overall economy but didn’t perform as well in the categories of life, health and inclusion; education; and cost of living.

4. Texas was hurt by policies that counted against inclusiveness metrics and an underfunded public health system, plus the highest rate of uninsured and a low COVID-19 vaccination rate, as well as electric grid stability issues, as evidenced by the state’s February 2021 power crisis that saw 4.5 million homes left without power amid severe winter storms. Until this year, Texas was tied with Virginia as the overall winner of America’s Top States for Business, with four previous wins.

5. Tennessee appeared in the top five for the first time, thanks to its second-best economy and eighth-lowest cost of doing business, the most heavily weighted category, according to CNBC.