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byline: Kate Andrews

HHHunt Corp. invests $247M in Southeast U.S. projects

Richmond-based real estate developer and builder HHHunt Corp. announced last week it has invested $247 million in residential communities in Charlotte and Raleigh, North Carolina, as well as plans to expand in the South Carolina, Nashville and Atlanta markets.

With the expansion of the company’s investment in the Southeastern United States, it has announced changes in its leadership. Dan Schmitt, president and chief business development officer, will retire at the end of the year. Schmitt joined HHHunt in 1989 and was instrumental in the creation of the company’s master-planned communities in western Henrico County, including Wellesley, Wyndham and Twin Hickory.

Kim Kacani, previously president of its HHHunt Communities division, is being promoted to executive vice president of real estate development, in which she will oversee HHHunt’s growth into the Southeast and identify new growth markets.

“This is a very exciting time for our company,” President and CEO Buck Hunt said in a statement. “Every day we seek to expand on our vision of improving the world and how people live. These investments in new multi-family, home building and master-planned communities throughout the Southeast demonstrate our continued commitment to bringing our ‘How You Live’ lifestyle to more customers.”

HHHunt’s new Charlotte projects include Abberly Commons and Abberly Liberty Crossing, two neighborhoods with more than 600 apartments, and two apartment communities in Raleigh with 581 apartments and 41 townhomes.

S.L. Nusbaum hires vice president of human resources

Jennifer Leigh

S.L. Nusbaum Realty Co. announced last week that Jennifer Leigh has been hired as the Norfolk firm’s vice president of human resources. She joins Nusbaum from CBRE (later acquired by Colliers) as chief human resources officer, with oversight over their offices in Virginia and North Carolina.

Leigh previously worked in human resources at Sentara Healthcare, and she holds degrees from James Madison University and Old Dominion University’s Strome College of Business.

 

Va. April unemployment rate at 4.7%, drops nearly half point

Virginia’s seasonally adjusted unemployment rate was at 4.7% in April, dropping 0.4 percentage points below March’s jobless rate.

April’s statewide unemployment rate was 5.9 percentage points below April 2020’s rate of 10.6%, the first full month of pandemic-related job losses. Virginia contends to trend lower than the nation, however. The U.S. unemployment rate for April was 6.1%.

“Virginia’s unemployment rate has decreased every month since last June and is edging closer to pre-pandemic record lows,” Gov. Ralph Northam said in a statement. “More people are working, businesses are hiring and our economy is getting even stronger as more and more Virginians receive their COVID-19 vaccines. Our administration remains focused on ensuring there is opportunity for every Virginia resident in every part of our commonwealth so we can all move forward.”

The labor force decreased by 12,422 to 4.22 million in April, with the number of unemployed Virginians decreasing by 17,097, according to data released Friday by the Virginia Employment Commission. The number of employed Virginians increased by 4,675 to 4.02 million.

The largest over-the-year job gains occurred in the leisure and hospitality sector, which gained 114,000 jobs or 52%, and the next largest gain was in trade and transportation, which went up by 67,300 jobs, or 11%. Education and health services saw a gain of 38,200 jobs, or a 7% increase. Government experienced the state’s largest year-over-year decrease in jobs, falling by 10,100 jobs in local governments and 3,400 state jobs. The federal government, however, added 2,400 jobs over the past year.

 

Breeze Airways setting up base in Norfolk

Breeze Airways, a new low-cost airline, will invest $5.2 million to build an operations center in Norfolk, producing 116 jobs, the governor’s office announced Friday. The airline also will offer nonstop flights out of Richmond International Airport and Norfolk International Airport.

The Salt Lake City, Utah-based startup company, which offers service to mid-size U.S. markets, will include Norfolk as one of its first four operations bases in the United States, and it also will offer flights out of Richmond International Airport, Gov. Ralph Northam said in a news release Friday. The airline started accepting flight reservations Friday morning.

“Aviation has long been ingrained in the Hampton Roads economy, and the arrival of Breeze Airways is another sign of this region’s growing position as a commercial flight hub,” Northam said in a statement. “The post-pandemic world will offer increasing opportunities for travel and tourism, and the addition of this new low-cost carrier at Norfolk International Airport will be a catalyst for economic growth, welcoming visitors to our commonwealth with convenient, nonstop service to often overlooked markets. We are honored that Breeze Airways has selected Virginia as one of its first domestic locations and look forward to building a strong and successful partnership with the company.”

David Neeleman, who founded JetBlue and other airlines, is behind Breeze, which will begin offering flights in June, mainly in markets not served by other low-cost carriers. All employees, including airline crew and maintenance workers, will remain local, the governor’s office said.

“Breeze is excited to be announcing two destinations in Virginia: Norfolk and Richmond,” Neeleman said in a statement. “Norfolk, particularly, is a strong inbound destination with a significant number of unserved markets that will provide Breeze with many years of growth opportunities. We’re looking forward to providing Virginians with low fares and nonstop service, getting them where they’re going in half the time, usually for about half the price.”

The Virginia Economic Development Partnership worked with the city of Norfolk, the Norfolk Airport Authority and other regional and state organizations to secure the project. Northam approved a $400,000 grant from the Commonwealth’s Opportunity Fund to assist the city, and the company is eligible to receive benefits from the major business facility job tax credit for new full-time jobs created.

 

Va. sees second week of slightly lower initial jobless claims

Virginia saw another week of little change in initial unemployment claims, with 10,642 new claims filed during the week ending May 15, the Virginia Employment Commission reported Thursday. This was a decrease of 628 claimants from the previous week.

Continued claims last week rose by 2,569 from the previous week, reaching 60,413 total claims. This time a year ago, during the early months of the COVID-19 pandemic, 44,699 people filed new unemployment claims, 76% more than last week, while 403,557 people filed continued claims, 85% more than last week. People receiving unemployment benefits through the VEC must file weekly unemployment claims in order to continue receiving benefits.

On Tuesday, Gov. Ralph Northam ordered the VEC to invest $20 million in initiatives to speed up processing of claims, particularly those that require adjudication. The governor’s executive directive requires the commission to hire 300 claims processors, modernize its insurance system by Oct. 1 and make other immediate technology upgrades. The state has ranked as the slowest in the nation in processing difficult-to-resolve claims, according to a class action lawsuit filed on behalf of five Virginia women. Last week, a federal judge disclosed that the state and the plaintiffs have initiated settlement talks.

More than half of the claimants who filed for benefits last week (and the prior four weeks) reported being in the accommodation/food service, administrative and waste services, retail trade and health care and social assistance industries, according to the VEC.

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

Below are the top 10 localities, listed by number of initial unemployment claims, for the week ending May 15:

  • Fairfax County, 549
  • Norfolk, 465
  • Richmond, 439
  • Prince William County, 381
  • Virginia Beach, 359
  • Newport News, 279
  • Chesapeake, 248
  • Alexandria, 239
  • Portsmouth, 237
  • Hampton, 223

Nationwide, the advance figure for seasonally adjusted initial claims last week was 444,000, a decrease of 34,000 from the previous week’s revised level, according to the U.S. Department of Labor. There were 2,163,595 initial claims during the same week last year.

Richmond panel recommends $600M Urban One casino proposal

The city of Richmond’s casino advisory panel has recommended Silver Spring, Maryland-based Urban One Inc.’s $600 million ONE Casino + Resort proposal to move forward for consideration by City Council and citizens, Mayor Levar Stoney’s office announced Thursday. If Council approves the recommendation and voters support it in a November referendum, the resort will be the nation’s only casino currently under Black ownership.

Urban One owns and operates 55 radio stations and the TV One cable network. For this project, the company’s first casino, it has paired with Peninsula Pacific Entertainment, owner of Colonial Downs Group and the Rosie’s Gaming Emporium franchise. The casino is proposed to be built on 100 acres owned by Altria Group Inc. on the city’s South Side, near Interstate 95.

This project includes a sportsbook, 200 hotel rooms (up from 150 previously announced rooms), a 3,000-seat theater, 100,000 square feet of gaming space (up from 90,000 square feet), and 12 bars and restaurants.

A field of six proposals was narrowed to two last month by the city’s nine-member advisory panel, a group comprised of city employees and two City Council members who have been studying competing casino proposals since earlier this year. With Thursday’s announcement, Baltimore developer The Cordish Cos.’ proposed $600 million Live! Casino & Hotel Richmond resort, which was to be built near the city’s Scott’s Addition neighborhood, is out of the running. Residents of nearby neighborhoods had reacted with strong concerns about traffic and crime around the casino’s location, while there was less outcry about the ONE’s location, which is planned for a more industrialized part of the city, although there are residential neighborhoods in the general area.

“ONE Casino + Resort presents a tremendous opportunity to develop a resort casino project in Richmond,” Stoney said in a statement Thursday. “The project will create over 1,000 good paying jobs, generate a significant amount of new revenue for the city, and establish an additional economic engine in South Richmond. I applaud the work of the evaluation panel in their vetting of the proposals and engaging the entire city throughout this project.”

The proposal will now go to the Richmond City Council on May 24, where city councilors will vote by June on whether to approved the proposed casino and its operator. If Council approves the proposal, the casino’s fate will be decided by voters in a Nov. 2 referendum. If it does receive the green light from voters, the casino will still need to meet requirements of the Virginia Lottery, the state agency tasked with regulating casinos and gaming in the commonwealth.

Richmond is the last of five cities voting on whether to allow a commercial casino, after the Virginia General Assembly voted in 2020 to allow five economically challenged cities across Virginia to have one casino per locality if approved by local voters. Bristol, Danville, Norfolk and Portsmouth all passed casino referendums last November by large margins. Although no polls have been released on Richmonders’ likelihood of passing the casino referendum this year, there appears to be reluctance among some residents to build a casino, although the most vocal resistance was against the Live! Casino’s proposed North Side location and, earlier, Bally’s proposed location on a heavily residential area in the city’s South Side.

“ONE is thrilled the Richmond casino selection committee has chosen the best project with the best location and best team to develop a world-class entertainment destination in Richmond’s South Side,” Urban One CEO Alfred Liggins said in a statement. “Urban One and our diverse group of local investors are fully committed to creating good-paying jobs with profit-sharing for employees, pathways to successful careers and generating significant new tax revenues that can improve Richmond’s schools and fund community programs and infrastructure.”

The city will hold a public, virtual meeting to discuss the project on Tuesday. More information is available here.

Smithfield company announces $40M Fort Monroe redevelopment

Smithfield-based Pack Brothers Hospitality LLC on Wednesday announced plans for a conference center, hotel, 500-seat restaurant and an overhauled 300-slip marina on part of Fort Monroe in Hampton. The company plans to invest $40 million in the redevelopment project and has been granted a 40-year ground lease by the Fort Monroe Authority, the governor’s office said.

The lease of the land on the southwestern edge of the fort includes several requirements for Pack Brothers Hospitality, run by principals and brothers Randy and Brian Pack, including environmental protection provisions and historic preservation covenants that the company must meet before starting construction. The anticipated opening date is spring 2025, Pack Brothers said.

“Fort Monroe is among the most important historic sites in our country and commonwealth, and must be redeveloped in a way that reflects and preserves this significance,” Gov. Ralph Northam said in a statement. “Pack Brothers Hospitality shares our vision, and I am thrilled to see a Virginia company win this contract. Our administration remains committed to protecting this historical and natural area, expanding access to its recreational opportunities, and maintaining Fort Monroe as a place that is desirable to live, work, and visit now and for generations to come.”
According to the company, which owns and operates the Surry Seafood Co. in Surry and Smithfield Station, the project will be called 37 North at Fort Monroe and will repurpose buildings already on the national monument site. The 500-seat restaurant will incorporate the Old Torpedo Storehouse and the Old Cable Tank Building, as well as a 15,000-square-foot outdoor deck overlooking the harbor. The CAS Bindery will house a 250-person event facility and a new 90-room boutique hotel that will be an independent property, the Packs said in a news release.
Meanwhile, the Old Point Comfort Marina currently in operation will receive extensive renovations, including new floating docks, a 1,600-foot concrete “super dock” that will attenuate waves, and a new structure will house the yacht club, ships store and marina office.
“On behalf of our family, our employees, and the patrons who support our family businesses, Pack Brothers Hospitality is thrilled to accept this new challenge to repurpose and adaptively reuse the property at Old Point Comfort Marina,” Randy Pack said in a statement. “We recognize the value of this historic property, what it means to the community and believe our proposal will become an East Coast resort destination suitable for association with a national monument such as Fort Monroe.”
A rendering of the renovated marina planned at Fort Monroe. Image courtesy Pack Brothers Hospitality

Decommissioned in 2011 and proclaimed in part as a national monument, Fort Monroe is the largest fort by area ever built in the United States. Other than the portions preserved by the federal proclamation by President Barack Obama, Fort Monroe sought redevelopment plans for the land in 2018. It received 18 proposals, which were reviewed by the authority, the city of Hampton, the state’s Department of General Services and the National Park Service.

“This is an important chapter in Fort Monroe’s history, and we are excited to see Pack Brothers Hospitality bring it to life,” state Secretary of Commerce and Trade Brian Ball said in a statement. “The administration and FMA board has very high standards for this redevelopment project, and we believe Pack Brothers Hospitality will do an excellent job at developing the Marina District into an exciting destination.”

Richmond-based GPM Investments closes on ExpressStop purchase

Richmond-based GPM Investments LLC became the nation’s sixth-largest convenience store chain Wednesday, after closing on its acquisition of the ExpressStop chain, including 60 gas station convenience stores in Michigan and Ohio.

Financial terms were not disclosed. The acquisition, which was announced in March, adds to GPM’s existing 165 stores in Michigan and nine in Ohio. GPM now has approximately 3,000 locations and 1,400 operated by the company. The ExpressStop acquisition bumped up GPM from its previous ranking as the seventh-largest store convenience store operator and owner in the U.S.

GPM is a wholly owned subsidiary of Richmond-based holding company Arko Corp. Its brands include Fas Mart and E-Z Mart.

“We are excited to complete this transaction and welcome ExpressStop to the GPM family of community brands,” Arko Chairman, President and CEO Arie Kotler said in a statement. “As our 19th acquisition since 2013, ExpressStop is the latest example of our continued commitment to aggressive growth through the acquisition of strong regional community brands.”

Earlier this month, GPM announced it has entered into a one-year agreement with Chicago-based Oak Street Real Estate Capital, which is committing up to $1 billion to purchase and lease to GPM real estate parcels associated with GPM’s acquisitions of convenience store chains and fueling stations.

Northam orders VEC to hire 300 more claim processors

Gov. Ralph Northam on Tuesday ordered the Virginia Employment Commission to invest $20 million in upgrading its claims system and hire 300 more staffers to process complicated unemployment insurance claims, which have dogged the agency during the COVID-19 pandemic and led to a civil lawsuit.

In an executive directive signed Tuesday, Northam directed the agency to complete a full modernization of its insurance system by Oct. 1 and make immediate technology upgrades.

His office said in a news release that the state ranks sixth in the nation for the timely payment of benefits to eligible applicants, but a class action lawsuit filed in April alleged that Virginia is the slowest state in the nation when processing difficult-to-resolve claims. The pro bono lawsuit on behalf of five Virginia women was filed by the Legal Aid Justice Center, Legal Aid Works and the Virginia Poverty Law Center,  along with Consumer Litigation Associates PC and Kelly Guzzo PLC.

Last week, U.S. District Judge Henry E. Hudson said in an order that the VEC and the plaintiffs had initiated settlement talks. The VEC has been under significant pressure during the pandemic and record-breaking unemployment claims since last March, with more than 1.6 million people filing initial jobless claims over the past 15 months. Along with more people filing for unemployment insurance, the VEC received thousands of phone calls and emails from people seeking answers and unemployment checks from both the state and the federal government.
A study on the VEC by the Joint Legislative Audit & Review Commission is set for November, but with state lawmakers asking for information sooner, the watchdog agency will give updates on the VEC’s status through the summer.
According to Tracey Smith, JLARC’s associate director, the commission had processed only 2.4% of claims that required additional review within 21 days, the benchmark that lands Virginia at the bottom of the nation in adjudicating claims, the U.S. Department of Labor reported.
“Virginia is a national leader in getting unemployment benefits to eligible individuals, but it’s clear that complex cases must be resolved more quickly,” Northam said in a statement. “That’s why I’m directing the Virginia Employment Commission to invest $20 million to significantly speed up its adjudication process and immediately implement long overdue technology upgrades. This action will address many of the issues that have caused delays and ensure that we continue to deliver relief to Virginians who need it.”
According to Northam’s directive, the VEC must increase the number of adjudicated claims being process per week from 5,600 to 10,000 by June 30 and to 20,000 by July 31. To accomplish this goal, the agency will finalize a $5 million contract for more than 300 officers. The VEC will also invest in its customer contact center, which has grown during the pandemic to handle calls from claimants. The 41-year-old benefits system will be updated with a $5 million contract to expedite work, with Oct. 1 as its targeted finish date.
Finally, Northam’s order says, the state will work with the Virginia congressional delegation to resolve a federal funding disparity, in which the state receives among the lowest amounts of federal unemployment funding in the nation, requiring Virginia businesses to pay more in federal unemployment taxes.

Modular housing manufacturer setting up Newport News plant

A modular housing manufacturer plans to establish its first East Coast facility in Newport News, investing $2 million and producing 220 jobs, Gov. Ralph Northam announced Tuesday.

A Public Benefit Corporation and Certified B Corporation founded in 2018, indieDwell turns recycled shipping containers into small homes with one to four bedrooms to help solve the affordable housing crisis, according to the governor’s office. It currently has facilities in Idaho and Colorado, with plans to expand to other states, building factories in areas that have low to moderate income rates and a need for affordable housing. Virginia competed with other states for the project, which will be located in a portion of 520 21st St. in Newport News.

“The affordable housing deficit in Virginia and across our country has deepened amid the pandemic, and indieDwell’s innovative modular units are an important part of the solution,” Northam said in a statement. “We are proud to welcome this mission-driven company to the commonwealth and look forward to collaborating with indieDwell and the many local partners involved in this project to build strong, resilient and sustainable communities.”
“We selected Newport News for our expansion after considering a number of locational advantages,” Pete Gombert, executive chairman and co-founder of indieDwell, said in a statement. “Our Newport News facility is strategically located in the mid-Atlantic region with access to the interstate highway system and, most importantly, a strong workforce. Workforce development is one of indieDwell’s guiding principles, and our sincere desire to work with the Southeast community neighborhood to create new jobs and construction trade training was a driving force behind our decision to select Newport News.”
Virginia Housing worked with the Newport News Redevelopment and Housing Authority and the city to secure the project for Virginia, approving a grant of up to $500,000 for the company, which anticipates that by 2025, it will have built 20,000 homes.