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Boeing CEO to step down by end of year

In late March, Boeing President and CEO Dave Calhoun said he would step down by the end of the year. The announcement came amid ongoing bad press over production problems and fallout from a high-profile January incident in which a 4-foot wall panel blew out of a Boeing 737 Max 9 jet cabin in mid-air.

Calhoun joined Boeing as its CEO in 2020 and has led the embattled Arlington County-based Fortune 500 aerospace company and defense contractor through multiple challenges, including the aftermath of two deadly 737 Max crashes off the coast of Indonesia and in Ethiopia, which collectively claimed 346 lives.

In addition to Calhoun’s departure, Boeing Board Chair Larry Kellner did not stand for re-election during the company’s April 18 annual shareholders meeting. The board elected a new independent board chair, Steve Mollenkopf, to succeed Kellner. The former CEO of semiconductor manufacturer Qualcomm, Mollenkopf is leading the board in selecting Boeing’s next CEO.

As part of the management shakeup, Boeing Chief Operating Officer Stephanie Pope was appointed to lead the company’s Boeing Commercial Airplanes business unit, replacing BCA President and CEO Stan Deal, who retired from Boeing effective March 25.

“It has been the greatest privilege of my life to serve Boeing,” Calhoun wrote in a March 25 letter to employees. “The eyes of the world are on us, and I know that we will come through this moment a better company. We will remain squarely focused on completing the work we have done together to return our company to stability after the extraordinary challenges of the past five years, with safety and quality at the forefront of everything that we do.”

In January, terrified Alaska Airlines passengers were exposed to open air at 16,000 feet. Reports followed that the wall panel that blew out was missing bolts, and Alaska Airlines found loose bolts on other Boeing aircraft. The incident is under investigation by the National Transportation Safety Board and the Federal Aviation Administration.

The Justice Department opened a criminal investigation into the incident, and in mid-March, it was announced that the FBI notified passengers of that Alaska Airlines flight that they may be crime victims. Following the blowout, the FAA conducted a six-week examination of the company’s 737 Max jet production process, including 89 product audits. According to The New York Times, Boeing failed 33 of the audits. 

Flying off the glass cliff?

You’ve no doubt heard of the glass ceiling — the barrier above which women couldn’t rise professionally — but have you heard about the glass cliff?

It’s not as familiar a term as the ceiling, but the glass cliff is real. It’s what happens when a woman or someone from another marginalized group is put in charge of a failing institution.

This can serve a couple of purposes: The corporation can claim its first hire to a top position of a person representing X group, staving off negative headlines a little longer. Also, if the company is truly at the edge of a financial cliff, the stakes are lower than if the leader could actually do something to turn around the company’s fortunes. Maybe the new leader is just a convenient scapegoat.

It isn’t always evident what’s a glass cliff and what isn’t until later on.

Take Arlington County-based Boeing, for example. Ever since a Boeing 737 Jet experienced a midair panel blowout while filled with Alaska Airlines passengers in early January, the aerospace company has come under considerable federal scrutiny over its safety and manufacturing practices. The Justice Department opened a criminal investigation, and the FBI wrote letters to passengers telling them that they may be victims of a crime.

In April came the corporate fallout: Boeing CEO Dave Calhoun announced he was stepping down by the end of this year, and Stan Deal, head of the Boeing Commercial Airplanes business unit, retired effective immediately. 

Now Stephanie Pope, Boeing’s chief operating officer, has also been put in charge of the commercial planes unit — “the toughest job at Boeing,” according to The Wall Street Journal. 

This may not be a glass cliff situation. This could be Pope’s proving ground. We just don’t know yet. 

A third-generation aerospace employee, Pope led Boeing’s parts and services business  and also held several finance positions. After her promotion to COO, she was seen as a probable successor to Calhoun, but GE Aerospace CEO Larry Culp and Carrier Global CEO Dave Gitlin are now favored for Boeing’s CEO, Fortune reported in April.

If hired as CEO, Pope would be the century-old Fortune 500 company’s first woman leader. Boeing’s not exactly a pioneer in terms of hiring female aerospace CEOs — in Virginia alone, we have General Dynamics Chairman and CEO Phebe N. Novakovic and Northrop Grumman Chairman, President and CEO Kathy Warden.

But Boeing never hired a woman to lead its company in good times or even less-bad times.

Now it’s in real trouble. In the first quarter of the year, Boeing delivered 83 jets, down from 157 in the previous quarter, and United told Boeing to halt production of the 737 Max 10 jets it ordered. Sales ground to a halt in January, with only three plane orders, and are still down.

Pope, in her new capacity, wrote in an email to employees last month, “This is a pivotal moment for us, and we have serious work ahead to build trust and improve our operations.”

And who’s in charge? Women.

Pope is joined by Katie Ringgold, who previously led 737 airplane deliveries at Boeing, as new head of the Max program, and Elizabeth Lund has been promoted to senior vice president of quality for Boeing Commercial Airplanes.

They’re tasked with fixing the reputation of Boeing, starting with bringing quality control measures up to standard, most experts acknowledge. These are lessons earlier leaders didn’t learn after two Max 8 planes crashed in 2018 and 2019 incidents, claiming hundreds of lives.

Boeing stopped production of the jets and then resumed in late 2020, but C-suite leaders demanded more jets produced faster, according to a March 28 New York Times article based on interviews with more than two dozen current and former Boeing employees.

We can’t say this is a glass cliff yet. Maybe Pope and company will succeed where others (mainly men) have failed. But it’s not a job most people would want, unless they’re promised golden parachutes.

U.Va. opens School of Data Science building

Billed as a “school without walls,” the University of Virginia’s School of Data Science officially inaugurated its first dedicated academic building Friday, five years after the school started.

“I was a little surprised and somewhat disappointed, if I’m being honest, when I came here yesterday for a tour and I realized [school without walls] was just a metaphor, in spite of the practical need for walls,” U.Va. President Jim Ryan said to an audience including  accomplished academics and businesspeople — such as Gov. Glenn Youngkin — as well as current and former data science students. “My hope is that the theory of ‘school without walls’ continues to animate this place.”

Ryan, a former law school dean and attorney, said he’s been on a speed course to learn more about data science, which includes artificial intelligence, machine learning and other data collection methods, as well as data use in other sectors, such as health care and finance. Because the field is moving so fast and becoming “indispensable for almost every field,” Ryan said, he expects the new four-story, 61,000-square-foot facility on Ivy Road in Charlottesville to be a hub of the latest research into data science.

Jaffray Woodriff, a 1991 U.Va. graduate who co-founded Quantitative Investment Management and made a $120 million donation in 2019 with his wife, U.Va. alumna Merrill Woodriff, to start the School of Data Science, also was on hand for Friday’s ceremony. He said that as an 11-year-old boy in 1980, he became interested in data from baseball statistics.

“At the age of 18, after seven years of studying baseball, I switched my focus to financial markets, applying statistical prediction to the market,” Woodriff said. “That was my chance to solve the challenge I faced as a U.Va. first-year [student], figuring out what career I would truly enjoy — and solve that money thing. I knew both challenges would be conquered if I could gamify investment management.”

Woodriff decided, with his father’s encouragement, to become an entrepreneur. In 2003, he and two co-founders started QIM, a Charlottesville-based hedge fund. He and his wife, another U.Va. graduate, started the Quantitative Foundation as a philanthropic vehicle, through which they made the $120 million gift to U.Va., the university’s largest private donation. The School of Data Science builds upon earlier academic offerings at U.Va.’s Data Science Institute, which was established in 2013.

University of Virginia President James Ryan (L) shakes hands with the new School of Data Science’s founding dean, Philip E. Bourne, during an April 26 inauguration ceremony for the school’s first building. Photo by Kate Andrews/Virginia Business

The new building — which replaces three sections of existing buildings at U.Va. where data science students and faculty members have worked since 2019 — includes a large, two-story hub and event area named for Capital One, which chipped in $2 million. Although it’s much more modern than what many consider Jeffersonian, the school is designed for meeting and collaboration, with variable seating arrangements and a large atrium. There are also four adaptable classrooms.

Capital One’s chief scientist and head of enterprise AI, Prem Natarajan, noted that the bank made its donation because U.Va. and other academic institutions invest in “invention and discovery. We recognize also the critical need to focus on STEM education to build a dynamic technology workforce both in Virginia and indeed the nation.”

Youngkin noted that the School of Data Science, the first such institution established in Virginia, is “much more than the building. It is all of the amazing minds that are here. We sit in a world today that is seeking truth, that is seeking insight. And when 90% of the world’s data is recreated every two years, there is an opportunity for us to find that truth, to shed light on those insights and, most importantly, to lead.”

Phil Bourne, the school’s founding dean, said it is working with community K-12 schools “to prepare them in the world of data literacy, for what’s coming if and when they come to U.Va. It’s really about lifelong learning … in a field that’s changing so dramatically so quickly.”

Sunidhi Goyal, a University of Delhi alumna who is pursuing a master’s degree at U.Va.’s data science school, said she plans to work “somewhere in the intersection of health care and public policy. I want to use the skills that I’ve taken from this program. It has a very interdisciplinary approach. The professors are from various backgrounds.”

And that’s important to Bourne and other faculty members as well. “I think we’re getting some really good researchers partly because they want to operate in an interdisciplinary environment. They see that creates real value.”

Metro passes $4.8B budget for FY25

Metro’s board of directors on Thursday passed a $4.8 billion capital and operations budget for fiscal year 2025, which avoids massive service cuts, although fares will increase by 12.5% beginning July 1.

The Washington Metropolitan Area Transit Authority, which oversees the Metrorail and Metrobus public transportation systems, had warned of “catastrophic” cuts to service because of a $750 million shortfall, if Virginia, Washington, D.C., and Maryland state and regional officials didn’t increase funding to support Metro, which has seen decreased ridership since the pandemic, with many regional workers still on part-time or fully remote schedules.

According to Thursday’s announcement, all three jurisdictions provided hundreds of millions of dollars to cover the budget gap — including a total $467.3 million from Virginia and Northern Virginia localities for Metro’s 2025 operating budget and $294.8 million for the fiscal 2025 capital budget. Also, Metro’s board found $50 million in cost efficiencies to put toward the funding gap.

Meanwhile, customers will pay 12.5% more for bus and rail fares, with base rail and bus fares rising from $2 to $2.25, and maximum rail fares increasing from $6 to $6.75. There also will be a salary and wage freeze for Metro employees, expected to save the system $113 million in fiscal 2025, which starts July 1.

The $2.3 billion capital budget will fund 256 new 8000-series railcars and more electric buses, as well as repairs and replacements for aging bus garages and track maintenance.

According to the approved budget’s introduction, if Maryland, Virginia and Washington had not allocated more funding, Metro expected to eliminate more than 2,200 jobs, a 25% increase in fares and a 20% hike in parking costs, as well as “steep reductions in maintenance, police presence and customer service functions.”

“We want to thank our elected officials and jurisdictional partners for the historic commitments they have made to Metro and the region to keep Metro strong in the coming years,” Metro Board Chair Paul C. Smedberg said in a statement Thursday. “Over the next year, we’re looking forward to continuing a robust conversation with jurisdictional partners, elected officials and business and community stakeholders around Metro’s role in the region and how the region can sustain and support the world-class transit that the DMV deserves. We also acknowledge that, while this budget maintains the frequent and reliable service our customers rely on, it asks for a shared sacrifice from our employees and customers to make it work. On behalf of the board, we’re grateful for their continued support.” 

In Virginia, the request for increased Metro funding from the state has caused a tug-of-war between Gov. Glenn Youngkin and Democrats in the Virginia State Senate. The House of Delegates’ proposed 2024-26 state budget included about $144 million in extra funding for Metro over the next two years, which the Senate increased to $149.5 million. Then, in Youngkin’s budget amendments, he changed the amount to $133 million in additional funding — but used $98 million from a Northern Virginia transportation trust fund instead of allocating more state taxpayer funds.

According to Metro’s announcement Thursday, the authority expects to encounter similar shortfalls next year without dedicated funding.

Northern Virginia lawmakers and others have warned that providing Metro with money now from the regional transportation trust fund would leave other future transportation projects in jeopardy. Currently, the source of extra Metro funding is under discussion among state lawmakers and Youngkin, who are working now to come to a compromise on the state’s budget after barely avoiding a state government shutdown earlier this month. After Senate Democrats killed the $2 billion Alexandria arena plan touted by the governor, he returned the legislature’s amended budget with 233 proposed budget amendments of his own, as well as a record-shattering 153 vetoed bills and 116 amended bills.

Senators and delegates are scheduled to return to Richmond to vote on a new budget in a special session May 13, if Youngkin and Democratic lawmakers can hammer one out.

Youngkin to embark on Northern Europe trade mission

Gov. Glenn Youngkin will leave on his third international trade mission next week, visiting Germany, Denmark, Finland and Switzerland, his office announced Wednesday.

According to the news release, he will meet with Finnish President Alexander Stubb, along with officials in Frankfurt, Stuttgart and Munich, Germany; Copenhagen, Denmark; Helsinki; and Zurich, from April 28 through May 3.

“This economic development trade mission with strong European partners will build on business relations, our shared priorities and highlight the commonwealth’s capabilities,” Youngkin said in a statement. “Virginia’s strong workforce, incredible business environment, robust transportation system and world-class education institutions make the commonwealth uniquely positioned to attract businesses around the globe. Germany, Denmark, Finland and Switzerland represent critical markets that will advance economic growth and prosperity in Virginia. In strengthening these relationships, we are not only reaffirming our commitment to economic development in the commonwealth but also strengthening the spirit of Virginia.”

In April 2023, Youngkin embarked on his first international trade mission as governor, meeting with Taiwan’s president and visiting Japan and South Korea, and in December 2023, he traveled to France, where he attended the 2023 International Paris Air Show, where he met with aerospace executives and other defense officials.

According to the governor’s office, there are 119 German-owned companies with presences in Virginia, as well as 30 Swiss corporations, 13 Danish companies and eight Finnish businesses. Denmark-based Lego Group is building a $1 billion manufacturing facility in Chesterfield County, the state’s largest economic development win announced during Youngkin’s administration. It’s expected to be operational in 2027, the toymaker said in February.

Virginia ABC board vice chair named CEO

Former beverage industry executive Dale Farino has been appointed the Virginia Alcoholic Beverage Control Authority’s next CEO, effective April 29, Gov. Glenn Youngkin announced Tuesday.

Farino served as vice chair of the ABC Board of Directors, and upon his resignation from the board, his seat will be filled by L. Mark Stepanian, former owner and CEO of Loveland Distributing Co., according to the governor’s office. Last year, Farino retired as executive vice president of Sandston-based Breakthru Beverage Virginia, a wholesaler and brokerage company in the wine and spirits industry, and he previously held positions with Tidewater Wholesalers and Coca-Cola Bottling, as well as having served as president of the Virginia Wine Wholesalers Association from 2019 to 2023.

Former ABC CEO Travis Hill stepped down in November 2023 after close to a decade with the authority, which transitioned from a state department to a semi-independent authority with more autonomy in 2018. He is now a counsel for Hunton Andrews Kurth’s Global Economic Development, Commerce and Government Relations Group. ABC Chief Law Enforcement Officer Thomas Kirby served as the authority’s interim CEO.

Virginia ABC has exceeded $1 billion in annual liquor sales starting in 2018 and broken consecutive sales records each year. However, authority officials came under fire after employees embezzled money from seven ABC stores in 2022, thefts uncovered during an audit in September 2022, though ABC leaders said they didn’t learn about the embezzlement until February 2023.

“Dale Farino’s exceptional background in both national and international beverage distribution positions him perfectly to lead the Virginia ABC,” Youngkin said in a statement Tuesday. “His strategic insights and operational expertise are vital as we continue to enhance our services, increase revenues and enforce the regulations that keep Virginians safe.”

A former artillery officer in the Marine Corps and a graduate of the University of Richmond, Farino was chief financial officer, chief operating officer and vice president of operations at Breakthru.

“I could not be more excited about this selection,” said ABC Board Chairman Tim Hugo. “I have confidence that with Dale working collaboratively with the board, executive team and teammates across the authority, a successful future is imminent. While the authority contributed an impressive $12 billion to the Virginia General Fund over the past 90 years, I have no doubt Dale will lead the authority to a place of even greater profitability, sustainability and resilience in the years to come.”

Electrolyzer manufacturer to build $400M plant in Chesterfield

Updated May 1, 2024

Topsoe, a Danish electrolyzer manufacturer, is planning to build a $400 million manufacturing facility in Chesterfield County after receiving $136 million in federal tax credits to help fund construction, the company announced Friday. The plant is expected to create about 150 jobs, according to a news release Friday from the offices of U.S. Sens. Tim Kaine and Mark Warner and U.S. Rep. Jennifer McClellan.

The company will manufacture Solid Oxide Electrolyzer Cell (SOEC) stacks, which help produce renewable or “green” hydrogen, in Chesterfield, according to the announcement. Under the federal Inflation Reduction Act passed in 2022, about 35 companies, including Topsoe, received clean energy tax credits totaling nearly $2 billion, which the U.S. Department of Energy announced Friday.

A May 1 announcement from Gov. Glenn Youngkin notes that the Meadowville Technology Park facility will be Topsoe’s largest U.S. investment. To secure the project, Chesterfield County received a $6 million grant from the Commonwealth Opportunity Fund, and Topsoe is eligible for benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program. The Virginia Talent Accelerator Program also will support job creation and training, according to the governor’s office.

“Through legislation like the Inflation Reduction Act and strong support from individual states such as Virginia, the U.S. government is helping to accelerate the clean energy transition,” Topsoe CEO Roeland Baan said in a statement. “With our strong dedication to innovation, we will help the U.S. achieve its goals of driving down the cost of clean hydrogen and delivering clean energy jobs.”

Topsoe’s cells increase electrolyzer efficiency up to 30% more than other electrolysis technology, according to the company. Green hydrogen is created by electrolysis of water while using renewable electricity, so it emits no pollutants into the atmosphere, and scientists say the gas can limit global warming if used to replace fossil fuels in industries such as shipping, aviation and production of steel, cement, glass and chemicals.

Democrats Warner, Kaine and McClellan, who represents part of Chesterfield County in Virginia’s 4th Congressional District, wrote a letter to the Energy Department to advocate for the Topsoe project’s inclusion in the awards, the federal legislators said in their statement Friday.

“The Inflation Reduction Act represented a bold step towards maintaining American leadership in manufacturing, creating the next generation of clean energy jobs, and combatting climate change,” Warner said. “I’m glad to see that vision executed in Chesterfield County with the announcement of a new Topsoe manufacturing facility. Thanks to tax credits from this landmark law, Virginia will continue to power our nation and lead the clean energy transition by creating good-paying manufacturing jobs across the commonwealth.”

Youngkin previously released a statement April 19 after the senators’ announcement: “I am thrilled that Topsoe has chosen the great commonwealth of Virginia for its new, state-of-the-art factory that will be key to scaling clean hydrogen production. Virginia’s robust workforce, strategic location and top business climate provide the necessary tools for Topsoe to continue to grow as a leader in the clean energy industry.”

Founded in 1940 in Denmark, Topsoe has two facilities in the United States in Texas and California, and it has offices around the world, although about 1,700 of its 2,300 employees are based in Denmark. The company specializes in technology that helps reduce carbon emissions, including heavy industry, long-haul transportation and producing cleaner fuels.

Petersburg casino referendum could take place in 2024

Petersburg voters will likely get the opportunity to vote on a casino referendum this fall, as a Virginia General Assembly obstacle has been removed from its path.

SB 628, sponsored by Sen. Lashrecse Aird, D-Petersburg, replaces Richmond with Petersburg among Virginia cities eligible to host a casino following approval by voters on a ballot. An earlier version of the bill had required a second General Assembly vote in 2025 before the law could take effect, but Gov. Glenn Youngkin removed that section of the measure this spring.

On Wednesday, both legislative bodies passed Youngkin’s version — meaning a vote could take place this fall in Petersburg, expediting the possible development of a casino resort in the city.

“After two previous failed attempts, in my first Senate session, the General Assembly has officially given its support to allow the citizens of Petersburg to have a referendum vote on a casino,” Aird said in a statement Wednesday. “I made a promise to give my community this opportunity, and today I delivered on that promise. While voters will have the final say on whether a casino becomes a reality, this legislation has the potential for multimillion-dollar economic investment to be made in a community that both needs and truly deserves it.”

The Virginia House of Delegates passed a Petersburg casino bill on April 17, 2024, in a special session.

Petersburg’s city council, the Virginia Lottery Board and the Petersburg Circuit Court must also approve the addition of the referendum to the 2024 local ballot, but those are largely administrative tasks that are not expected to affect the referendum’s progress to voters.

Wednesday’s vote will be good news to some Petersburg officials and the five development groups vying for an opportunity to build a casino in Petersburg. Bruce Smith, a Virginia Beach developer and NFL Hall of Fame member who is partnering with Baltimore-based casino company Cordish Cos., has been outspoken about the legislative obstacle, calling for House Speaker Don Scott to pass Youngkin’s amended version of the bill in recent interviews.

“Now’s not the time to play politics with the people of Petersburg,” Smith said last week in an interview with Virginia Business, directing his remarks toward Scott. “They need this economic development opportunity — more so than any other city in the state of Virginia. This is a critical time. That is costing the city money [and] jobs, trying to alleviate the problems of food deserts [and] underfunded schools. We can’t allow folks to say one thing and do another. The time to act is now, and all we’re asking for is to … take the reenactment clause right out of the bill.”

Bally’s, Cordish Cos., Penn Entertainment, Rush Street Gaming and The Warrenton Group are the five contenders in Petersburg, and Aird hosted a town hall on Sunday at which representatives of the development teams presented details of their proposed casino resorts.

The Virginia State Senate passed the amended bill 32-8 on Wednesday afternoon, moving it to the House of Delegates for consideration. Because the House of Delegates had added the reenactment clause to the earlier measure, the bill’s fate was slightly less certain in that body, but the bill passed 80-19 in the House.

In 2020, the state legalized commercial casinos to be built in five economically underserved cities: Bristol, Danville, Norfolk, Portsmouth and Richmond. The first four cities passed casino referendums easily in 2020, but Richmonders voted down casino referendums in 2021 and 2023. Petersburg’s process would be similar to the other cities’ processes, requiring the city council to choose a casino operator and a city referendum to win for the plan to move forward.

Richmond-based attorneys win U.S. Supreme Court case

After nine years and through three U.S. presidents, two Richmond-based attorneys and their client, an FBI agent who also lives in Richmond, received great news Tuesday: They had won their U.S. Supreme Court case against the federal government.

Rudisill v. McDonough was decided 7-2 in favor of plaintiff Jim Rudisill, a retired Army captain who sought to use education funds he earned through two periods of military service. In 2015, he appealed the U.S. Department of Veterans Affairs’ decision to deny him about a year’s worth of GI Bill funding, with the help of two Richmond attorneys then employed at Hunton Andrews Kurth.

David DePippo and Tim McHugh took on Jim Rudisill’s case pro bono in 2015. According to DePippo, they figured it would be a relatively simple matter. The attorneys certainly didn’t think it would end up at the highest court in the land.

Rudisill served two stints in the U.S. Army — as an enlisted member from 2000 to 2002 and then as a commissioned officer from 2007 to 2011 — and sought to use two GI Bills to pay for his expenses at Yale Divinity School, but the VA said he could not use all 48 months of college benefits Rudisill believed he had earned.

An FBI agent based in Richmond, Rudisill had used part of the Montgomery G.I. Bill for his undergraduate education, but had not used the Post-9/11 fund. He hoped to use the two funds to cover his tuition at Yale and then return to the Army to serve as a chaplain, but the VA denied him approximately 10 months of benefits. That’s when DePippo and McHugh got involved.

In 2015, McHugh was a newly minted first-year associate — having paid for law school through his own GI Bill benefits — and was donating time to Hunton’s pro bono office when he was tapped to work on the Rudisill case with DePippo, who was co-chair of the firm’s veterans pro bono program and a veteran himself.

They began by simply representing Rudisill at a VA administrative appeal, DePippo said in an interview Tuesday with Virginia Business.

They expected the matter might go to the U.S. Court of Appeals for Veterans Claims, and that’s what happened. Rudisill won the case, but the VA was not taking this lying down. There were more appeals, all the way up to the U.S. Supreme Court, continuing through three presidential terms.

Meanwhile, life went on for the plaintiff and his lead attorneys, who were assisted by at least 30 to 40 lawyers and paralegals over the nine-year process, and spent an average of 100 hours a year each on the case.

DePippo left Hunton about seven years ago and joined Dominion Energy, which was aware of and supportive of his work on the pro bono case, as the utility’s legal department also participates in extensive pro bono legal work, he said.

McHugh moved to Troutman Pepper’s Richmond office about two and a half years ago as an associate and has become partner. Like DePippo, he brought up the VA case during interviews with the firm and said it was important to him to continue working on it. Troutman, which does not place a cap on its attorneys’ pro bono hours, was on board, he said.

Rudisill, who served three tours of duty in Iraq and Afghanistan and was wounded in Iraq in 2005, stayed with the FBI — in 2015, he was instrumental in stopping two men from attacking churches and synagogues in the Richmond area, according to a Richmond Times-Dispatch news story.

In November 2023, the two sides presented their arguments to the U.S. Supreme Court, with Misha Tseytlin, a Chicago-based attorney for Troutman making Rudisill’s case, and Vivek Suri of the Justice Department representing the government. Although DePippo had written amicus briefs before, this was his first time as a lead attorney on a Supreme Court case, and this was also McHugh’s first case before the high court. Both said it’s a lot of work to prepare for the justices’ questions, but they were impressed by the justices and the court staffers.

“It’s humbling, and it’s impressive,” DePippo said. “What you don’t see, because the Supreme Court is not on television, is just how incredibly smart and detailed and diligent the justices are and certainly their clerks and their staff, and how seriously all the parties that are involved take it.”

On Tuesday, the Supreme Court released its 39-page decision, with Associate Justice Ketanji Brown Jackson authoring the majority opinion and associate justices Samuel Alito and Clarence Thomas dissenting. They ruled that service members who accrue benefits under both the Post-9/11 Veterans Act and the Montgomery GI Bill through separate periods of service can use either pool of money to pay for up to 48 months for their educations.

“The bottom line is this: Veterans who separately accrue benefits under both the Montgomery and Post-9/11 GI Bills are entitled to both benefits,” Jackson wrote, overturning a federal circuit court ruling in the government’s favor. Justice Thomas wrote in his dissenting opinion that the federal statute limiting the use of multiple GI Bills, “though complicated, is ultimately unambiguous.”

Rudisill was not available for an interview Tuesday afternoon because he was at a secure facility all day for work, DePippo said, but the attorneys reached him by phone briefly to tell him the news.

“He was just elated,” McHugh said. “I’m sure he wouldn’t mind me saying that. Just true to form, his happiness and elation was really about everybody else [who would benefit from the decision]. He wants everyone else to get these benefits. This whole case started off with him wanting to go … to Yale Divinity School, wanted to become an [Army] chaplain to minister to service members and help folks with PTSD and stuff like that.”

As of now, it’s not clear how many veterans will benefit from the Supreme Court’s decision, but it’s possible up to 1.7 million post-9/11 vets could benefit, DePippo said, and he and McHugh are working together now on other GI Bill suits involving veterans with different situations than Rudisill’s, as well as those who wish to pass along their benefits to family members.

Rudisill, 43, is now over the age limit to rejoin the Army as a chaplain, but DePippo said he’s enrolled in a seminary (although not Yale) and will be able to use the federal benefits he won Tuesday to cover his education costs. And since all three men are in Richmond, DePippo hopes they’ll get together soon for a celebratory meal.

“He is now in the naval reserves and hopes to be ordained as a chaplain in the naval reserves,” DePippo said. “He still hopes to achieve that goal, and I think he’s gonna get there. You can always use more people like Jim.”

Petersburg casino competitors roll out details

More details have rolled in about the five Petersburg casino contenders, all of whom presented their plans during a town hall Sunday at the Petersburg Public Library.

Hosted by state Sen. Lashresce Aird, D-Petersburg, the town hall saw officials representing Bally’s, Cordish Cos., Penn Entertainment, Rush Street Gaming and The Warrenton Group reveal more details about their casino proposals, even though the city doesn’t yet have the state legislature’s go-ahead to include a casino referendum on this fall’s ballot.

Virginia Beach developer and NFL Hall of Famer Bruce Smith, who is partnering with Cordish, has called on Virginia House of Delegates Speaker Don Scott to expedite an amended bill allowing a referendum this year instead of requiring a second General Assembly vote in 2025, which would delay construction of a casino by at least a year.

“Now’s not the time to play politics with the people of Petersburg,” Smith said in an April 12 interview with Virginia Business.

The state legislature meets in Richmond on Wednesday to vote on the 2024-26 state budget and other bills amended by Gov. Glenn Youngkin, who removed the reenactment clause from the casino bill, allowing a 2024 vote.

Here are the five prospective casino developers and their proposals, of which the Petersburg City Council may green-light one for development as soon as this summer:

  • Bally’s, a major national player in the casino industry, previously vied for the Danville casino (which Caesars Entertainment ultimately won) and a proposed Richmond casino, ultimately losing to Urban One in 2021. The proposed Bally’s resort, with a casino, 500-room hotel, restaurants and entertainment space, would be on Rives Road near Interstate 95, and officials say 15% of the casino’s equity would go to local people.
  • Baltimore-based Cordish, which competed unsuccessfully to build a casino in Richmond in 2021, received Petersburg City Council’s approval for a $1.4 billion casino development in 2022, but without state approval, that project was null and void. This year’s proposal is similar to the company’s earlier proposal, Smith says, and would include 400,000 square feet of gambling, hotel and dining space, as well as a 3,000-seat entertainment venue. To be built on 90 acres at the intersection of Wagner Road and Interstate 95, the venue would be known as Live! Casino & Hotel Virginia.
  • Rush Street Gaming is the Chicago-based company that operates the Portsmouth Rivers Casino, the first permanent casino to open in Virginia. Its proposed Petersburg resort would include a casino, hotel, business and entertainment space, possibly off County Drive.
  • Penn Entertainment is based in Pennsylvania, and its focus is on “community casinos,” as opposed to those based in Las Vegas and Atlantic City. Its proposal includes a 200-room hotel, an 8,000-capacity amphitheater partnered with Live Nation, in addition to a casino and ESPN sportsbook.
  • The Warrenton Group is a Washington, D.C.-based business developer that has an agreement with casino operator Delaware North and the Upper Mattaponi Tribe, based in King William County. Its proposal is significantly different from the other four, as development would be in two different parts of Petersburg. A 160,000-square-foot casino and 200-room hotel, as well as restaurants and housing units for casino employees, would be at the “Southern Gateway” location off Route 301, and a second phase, known as the “Northern Gateway” on the waterfront of Pocahontas Island, would include a 100-to-150-room hotel, 120,000 square feet of retail and housing for Virginia State University students.
Rendering of Cordish Cos.’ proposed Petersburg casino development, which would include retail and residential buildings. Image courtesy Cordish

Who’s involved

Smith, who played defensive end for the Buffalo Bills and the Virginia Tech Hokies football teams, was on hand at Aird’s town hall. He said that the Cordish ownership team would have 50% minority equity participation, more than the other development teams vying for the opportunity to develop a casino in Petersburg and, if successful, it would have the largest minority equity participation in a U.S. casino. Other investors are former Philadelphia Eagles and University of Virginia All-American receiver Billy McMullen, former Cox Communications executive Gary McCollum and the Reynolds family, which founded Reynolds Metals.

The Warrenton Group’s alliance with the Upper Mattaponi Tribe distinguishes it as the only proposal with a federally recognized Indian tribe. U.Va. basketball legend Ralph Sampson, a Harrisonburg native whose mother attended VSU, and VSU President Makola M. Abdullah wrote letters to support the project known as Gateways2Petersburg.

Rush Street said in its presentation Sunday that its casino, if chosen, would have up to 40% minority investment and ownership.

There have been Black-owned casinos in the U.S. before, most notably by the late Don H. Barden, who owned resorts in Pittsburgh, Las Vegas, Colorado and Mississippi. In 2021, Maryland-based Black-owned media company Urban One promoted its Richmond casino as being the only Black-owned casino currently operating in the U.S., although the proposal failed in a city referendum. Its 2023 proposed venture was a 50-50 collaboration with Churchill Downs, and that referendum also failed, opening the doors to the possibility of a casino in Petersburg.

In 2020, the state legalized commercial casinos to be built in five economically underserved cities: Bristol, Danville, Norfolk, Portsmouth and Richmond. The first four cities passed casino referendums easily in 2020, but Richmonders voted down casino referendums in 2021 and 2023. Petersburg’s process would be similar to the other cities’ processes, requiring the city council to choose a casino operator and a city referendum to win in either 2024 or 2025 for the plan to move forward.