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byline: Robyn Sidersky

757 Angels will partner with VentureSouth

757 Angels, a Hampton Roads angel investment group that matches venture capitalists with local entrepreneurs, is partnering with VentureSouth, one of the largest angel investment networks in the United States.

Effective in June, the partnership will provide more access to capital and investors to 757 Angels’ 140 members.

Established in 2015 and based in Greenville, South Carolina, VentureSouth has about 450 members and has invested more than $70 million in nearly 100 early-stage companies. It has markets in 19 cities across seven states, reaching from Virginia to Mississippi.

757 Angels also launched in 2015 and has invested more than $100 million in 49 companies, according to 757 Angels Executive Director Monique Adams. About 90% of 757 Angels’ member investors hail from Hampton Roads, and all the companies 757 Angels invests in are either Virginia-based or have significant operations in Virginia, Adams says.

“This is an evolution where our community is really going to get more,” Adams says, adding that 757 Angels will retain its brand and local board and continue to have a local market director. “We’re using this as a vehicle to grow and we can provide enhanced benefits to entrepreneurs and to investors.”

For entrepreneurs, that means providing broader access to capital and helping early-stage companies raise money faster. Entrepreneurs will present to VentureSouth’s network of 20 chapters across the Southeast. On the investor side, the partnership brings benefits such as diversification and diligence, increased deal flow and access to investments through VentureSouth’s funds. All will benefit from a larger professional staff — nine or 10 people instead of two — and more capacity and capability, Adams says.

“From a values alignment standpoint, I think we think about our role in the ecosystem similarly and that we are really focused on trying to bring capital to early-stage companies,” Matt Dunbar, managing director of VentureSouth, says. “Entrepreneurs historically have had a fairly hard time raising capital in this part of the world.”

Adams will assist with the transition and plans to step down from her role as 757 Angels’ executive director during the summer. A new director will be named at a later date.

“I think this reflects on the great organization we built,” Adams says, adding that “we’ve grown into something that’s exciting and offers incredible benefits to all the stakeholders in the ecosystem.”

Wholesome Foods to expand in Shenandoah County

Wholesome Foods Inc. will expand its meat processing operation in Shenandoah County by adding a new, USDA-inspected slaughter facility with a $1.2 million investment, creating 12 jobs, Gov. Glenn Youngkin announced Thursday.

Nearly all the livestock used at the new facility will be sourced from Virginia farms, according to Youngkin’s office.

“We are excited to grow our business with the help of the commonwealth and Shenandoah County through the AFID program,” Wholesome Foods President Wes Pence said in a statement. “This expansion will increase our capacity, add jobs to our work force and provide a much-needed service to the community and local farmers for years to come.”

The family-owned business has been part of Shenandoah County’s business and agricultural scene for more than 50 years. Established in 1964 by Dean and Syvilla Pence as a home delivery service of poultry, meat and eggs to the Washington, D.C.-area market, the company has grown into a full-scale food distributor and now supplies wholesale accounts in the mid-Atlantic, as well as serving consumers with meat and cheese. After experiencing backlogs from local meat processors the company relied on for beef and pork products, Wholesale Foods decided to add in-house slaughter capacity at its existing operation and expanding its meat processing capabilities, according to a news release.

“As Virginia’s largest private industry, our agricultural sector draws its strength from the diversity of production and the entrepreneurial spirit of families like the Pences, whose company has served the Shenandoah community for more than 50 years,” Youngkin said in a statement. “I thank Wholesome Foods for its commitment to the commonwealth and wish them success in the future serving the farmers and consumers of Virginia and beyond.” 

The Virginia Department of Agricultural Services worked with Shenandoah County and the Shenandoah County Industrial Development Authority to secure the project. Youngkin approved a $40,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund. Shenandoah County will match it with local funds.

 

Youngkin budget outlines EVMS/ODU merger by 2024

In his proposed budget amendments released Thursday, Virginia Gov. Glenn Youngkin lays out the framework and a timeline for the merger of Eastern Virginia Medical School and Old Dominion University, requiring it to take place by July 2024.

Youngkin’s amendments to the 2022-24 state budget, which must be passed by the General Assembly during its 2023 session to take effect, include $10 million for the creation and launch of the Eastern Virginia Health Sciences Center at Old Dominion University, a merger of EVMS and ODU. The money, which would come from the state’s General Fund, is “to support the one-time costs associated with planning and initial integration activities necessary to ensure a successful launch of the Eastern Virginia Health Sciences Center at Old Dominion University,” according to the proposed budget.

Youngkin’s proposal instructs the two institutions to produce the following deliverables to Youngkin and the chairs of the House Appropriations and Senate Finance and Appropriations Committees by Aug. 31, 2023:

  • A five-year integrated strategic and financial plan that defines how the initial and ongoing operations, strategic investments and capital requirements will properly fund the Eastern Virginia Health Sciences Center at Old Dominion University;
  • metrics tied to the strategic plan that will measure the improved health care and community outcomes in the surrounding region resulting from the creation of the Eastern Virginia Health Sciences Center at Old Dominion University;
  • a comprehensive funding plan that supports the execution of such strategic plan and includes all parties necessary to ensure a successful outcome;
  • a time and effort matrix that distributes positions and costs by appropriate fund sources that includes, but is not limited to, educational and general programs, grants and contracts, practice plan clinical activity and hospital activity; and
  • a governance model that aligns all parties necessary to ensure a successful outcome.

When those are approved, EVMS and ODU “shall complete a merger to create the Eastern Virginia Health and Sciences Center at Old Dominion University at the earliest date possible, but no later than July 1, 2024.”

In a message addressed to the EVMS community and posted Thursday to a joint website, ODU President Brian Hemphill and Dr. Alfred Abuhamad, EVMS’s president, provost and dean of the School of Medicine, called the proposal in Youngkin’s budget amendments “a very positive step for both institutions and our communities.”

The joint message also says “with the commonwealth of Virginia’s support, as well as Sentara Healthcare’s partnership, the integration will result in our region becoming a medical and scientific hub that attracts research funding and generates high-paying jobs.”

In July, questions of a potential merger arose after ODU hired Dr. Alicia Monroe as chief integration officer and senior adviser to President Brian O. Hemphill. At the time, ODU said she would help establish a health sciences center in partnership with EVMS and Sentara Healthcare. It was the same month Hemphill sent a letter to ODU’s faculty and staff “to develop a comprehensive plan to integrate ODU and EVMS in 2023,” while also noting that “a formal agreement has not been reached as this merger is contingent upon the work of the functional teams, as well as securing additional resources to support this expanded effort.”

Then, in an August interview with Virginia Business, Aubrey Layne, Sentara’s executive vice president of governance and external affairs, said that he, and ODU and EVMS officials had met with Youngkin in August about the planned merger, which had previously been rejected by earlier leadership, including EVMS’ former president, Dr. Richard Homan, who retired in August 2021.

In November, the ONE School of Public Health, a joint venture between ODU, EVMS and Norfolk State University, hired its inaugural dean, Li-Wu Chen. ODU, NSU and EVMS signed a memorandum of understanding to establish the school in 2021, aiming for it to address regional public health needs and inequalities. The General Assembly and former Gov. Ralph Northam allocated $5 million to the project, splitting the amount evenly between ODU and NSU. Sentara Healthcare provided $4 million in grants to ODU and NSU to support the accreditation process. At the time, Abuhamad called Chen’s selection “an important next step in an exciting and necessary effort to expand the local health care workforce pipeline and create a healthier future for the communities we proudly serve.”

EVMS and ODU have other ties in partnership with Sentara, which has invested millions in regional health initiatives, including $2 million each to ODU, EVMS and NSU to support the development of the public health school, as well as $3 million spread among ODU, EVMS and NSU for public health and health equity initiatives. Also, in May, Sentara established two new collaborative grants at ODU, EVMS and NSU to spur collaboration among the three institutions, along with Children’s Hospital of The King’s Daughters, in decreasing health disparities in underserved local communities.

First look inside Rivers Casino Portsmouth

Rivers Casino Portsmouth will be the first permanent casino to open in Virginia when it opens its doors to the public on Jan. 15, 2023, but local media outlets got a sneak peek on Tuesday.

With 28 days until opening — the casino will open for two “charity days” on Jan. 10 and 12 — construction workers are hurrying to put the finishing touches on the $340 million, 250,000-square-foot casino, which will be operated by Chicago-based Rush Street Gaming. Construction began in December 2021. General Manager Roy Corby hosted Tuesday’s media tour.

The entertainment venue, located along Victory Drive in Portsmouth, will feature 1,448 slot machines, 57 table games and 24 poker tables. It’s expected to bring $16.3 million in annual tax revenues to the city. When it opens, it will be the commonwealth’s first permanent casino, though a temporary casino has been open in Bristol since July. Two other proposed casinos are in the pipeline in Danville and Norfolk.

The Sound Bar will feature live entertainment Thursdays, Fridays and Saturdays, with room for 120 people. It has a rounded bar with 88 seats and tables with seating near the stage.

The poker room will have 24 tables — not yet delivered — as well as an area where players can cash in their winnings and a host check-in area. The poker room is apart from the main floor.

The main casino floor will have 1,448 slot machines, 1,100 of which have already been delivered. About 300 are in the right places already, but the rest are yet to be installed. Another 348 will be delivered before opening day, Corby says.

 

The 90,000-square-foot main casino floor will have 57 tables, 24 of them for poker games, and others for blackjack, craps (live and electronic), roulette and baccarat.

Corby said the casino has held five job fairs and will hold one more before opening day. More than 1,100 full-time employees have been hired so far, but the casino is still hiring. More than 5,000 people have filled out applications, he said. Though all hires so far have been full time, there has been demand for part-time work. Rivers Casino Portsmouth’s estimated annual payroll will be $62 million.

The sportsbook area will have a screen that is 12 feet high and 62 feet wide, for a 753-square-foot viewing wall that can show dozens of televised sports. Overlooking the sportsbook will be a Topgolf suite with three bays, each holding up to eight guests.

The high-limit game room will have 85 slot machines and 11 tables, along with two private salons and a private table area, for gamblers who are interested in a high roller experience.

Inside the casino, there are three restaurants — Starbucks, Slice Pizzeria, Mian (pictured above), a fast-casual Asian restaurant, which is in all of Bet Rivers’ casinos.

Two restaurants will be accessible from outside the main floor and anyone, even those younger than 21, will be able to eat there. Crossings Cafe (below) is a 24/7 restaurant and seats more than 140 guests.

Admiral’s Steak & Seafood will seat 250 people, with private dining options for small and large parties and seating indoors and outdoors.

Admiral’s will also feature two large bars, including the one below, just inside the doors to the steakhouse.

The 25,000-square-foot event center can be used as convention space for conferences and performances. Corby said that when set up with tables, it can hold 1,100 to 1,400 people, and when set up theater-style, it can hold 1,500 to 1,700 people. If arranged for standing-room only, the center can hold up to 2,000 people. The space has already been booked for Portsmouth’s State of the City address and Tidewater Community College’s upcoming inauguration ceremony for President Marcia Conston. (The photo above shows the pre-reception area at the entrance to the event space.)

Virginia Beach-based S.B. Ballard Construction Co. and Philadelphia-based Yates Construction are the general contractors. Raleigh, North Carolina-based Kimley-Horn is the engineering consultant; Las Vegas-based Klai Juba Wald Architecture + Interiors is the architect of record; New York-based Jeffrey Beers International is the primary interior designer and Illinois-based DMAC Architecture & Interiors is the designer of the interior venues.

HCA taps new CEO for Chippenham, Johnston-Willis hospitals

Lance Jones will be the new CEO of Richmond’s Chippenham and Johnston-Willis hospitals, HCA Virginia announced this week.

Jones previously served as market president for HCA Healthcare Inc.’s LewisGale Regional Health System from 2018 until earlier this year, when he left to join the private equity industry. Before Jones was at LewisGale, he was CEO of StoneSprings Hospital Center in Northern Virginia.

Dr. William Lunn, the former CEO of Chippenham and Johnston-Willis hospitals, will move up to HCA’s Capital Division president when Tim McManus, who had been in that position and was promoted to lead HCA’s national operating group, shifts to his new role on Jan. 1, 2023.

“I am thrilled Lance is rejoining the HCA Virginia family at Chippenham and Johnston-Willis hospitals,” Lunn said in a statement. “His reputation for developing a strong team culture precedes him. He joins a talented group of people who are vital to the community, and I have no doubt his addition will ensure we continue providing the highest level of care.”

While at LewisGale, Jones recruited numerous specialists to the hospital and launched an electrophysiology program, comprehensive graduate medical education program, robotics service line and an advanced orthopedic and neurosurgical program, according to a news release. The hospital also expanded its cardiovascular service line and women’s services. Jones also oversaw the opening of two freestanding emergency rooms.

The New Zealand native earned a bachelor of science in physiology and a bachelor of physical therapy from the University of Otago before earning his master of science in health care administration degree from the University of Alabama at Birmingham.

HCA Virginia has 14 hospitals, 27 outpatient centers, six freestanding emergency rooms and is affiliated with 3,000 physicians.

 

Arko closes Pride convenience stores deal

Arko Corp., a Fortune 500 holding company for Henrico County-based convenience store chain GPM Investments LLC, has closed on its acquisition of Pride Convenience Holdings LLC, which operates 30 Pride convenience stores in Massachusetts and one in Connecticut.

The deal was first announced in October.

The $230 million acquisition, plus the value of inventory, brings Arko to its 34th state and is the company’s 22nd acquisition since 2013.

“Arko’s primary focus is creating long-term shareholder value by growing our core convenience store business,” Arko Chairman, President and CEO Arie Kotler said in a statement.“We believe we can enhance the value of Pride’s stores and strong regional brand through our operational and merchandising abilities and scale. We welcome Pride’s employees to our family of community brands and look forward to working together to enhance the business and provide value for customers.”

Arko financed $30 million of the cash consideration and the remaining $202 million was funded by Oak Street, a division of Blue Owl Capital as part of a $1.15 billion agreement. Arko leases the real estate assets from Oak Street.

Pride has 31 convenience stores, including one that broke ground in July, and sold 74.2 million gallons of gas in fiscal year 2021. Its network of electric chargers increases the charger count in Arko’s footprint.

On Wednesday, Arko announced that it agreed to acquire the retail, wholesale and fleet fueling assets of Texas-based WTG Fuels Holdings LLC, the owner of Uncle’s convenience stores and Gascard fleet fueling operations. The $140.4 million acquisition, plus the value of inventory, introduces Arko to Texas.

Va. Beach City Council approves $2M sponsorship of Something in the Water

Virginia Beach native Pharrell Williams’ Something in the Water three-day music festival will get a $2 million sponsorship from Virginia Beach as part of an incentive package approved by the City Council Tuesday night.

Something in the Water debuted in April 2019 at the Oceanfront and was called off in 2020 and 2021 due to the COVID-19 pandemic. After the police shooting of his cousin in Virginia Beach in 2021 and a grand jury’s decision not to indict the officer, Williams announced the festival would not be held in Virginia Beach in 2022 due to its “toxic energy,” but last month, he announced at the Mighty Dream forum in Norfolk that the festival would return to Virginia Beach in April 28-30, 2023. This year, the festival took place in Washington, D.C.

Virginia Beach councilors voted 10-1 to reserve $2 million from the Tourism Investment Program for a city sponsorship of the festival. It means the festival’s organizers would keep the “but for” taxes, which include admissions, meals and local sales taxes sold within the festival’s footprint, which is from Fourth Street to 15th Street at the Oceanfront, and online ticket sales. They’re called “but for” taxes because they would not exist without the festival happening.

The Something in the Water website displays the location and dates of the third festival.
The Something in the Water website displays the location and dates of the third festival.

Councilman John Moss voted against it.

The actual sponsorship amount would be determined after the fact, and if it exceeds $2 million, council would have to vote again on the amount.

The city has already given festival organizers an advance of $500,000 for marketing and in-kind contributions, including use of various resort stages for concerts, use of public parking lots for festival support and rideshare, city public safety and public works personnel already programmed for that weekend, and availability of the Virginia Beach Convention Center.

Virginia Beach Economic Development Director Taylor Adams told Virginia Business that city funding contributes to local businesses and the local economy and helps with tourism recovery. The $2 million number is an estimate based on the 2019 festival’s data.

Now that council has approved the sponsorship, it allows Adams to get a contract in place with the festival’s organizers based on the incentives presented to council. He will also get to work on setting up a team within city staff to “be nimble and responsive” and “create the best guest experience we can.”

The last time Something in the Water was held in Virginia Beach, the hotel occupancy rate for the event was about 90% throughout the city and hovered between 94% and 96% in the resort area, and 86% throughout Hampton Roads, according to an economic analysis done by Old Dominion University. Hotel revenue generated $4.85 million for all of Hampton Roads, including $2.2 million in Virginia Beach. According to the ODU report, the economic impact of Virginia Beach-based and visitor ticket holders was $21.76 million, with resulting tax revenue of $1.19 million and a total economic impact of $24.11 million across Hampton Roads.

Tickets for the 2023 Something in the Water went on sale Nov. 5, although performers have not yet been announced. Tier 1 and Tier 2 level tickets, $195 and $225 respectively, have already sold out, according to the festival’s website.

Arko to buy Uncle’s convenience stores for $140M

Arko Corp., a Fortune 500 holding company for Henrico County-based convenience store chain GPM Investments LLC, announced Wednesday it has agreed to acquire the retail, wholesale and fleet fueling assets of Texas-based WTG Fuels Holdings LLC, the owner of Uncle’s convenience stores and Gascard fleet fueling operations.

The $140.4 million acquisition, plus the value of inventory, introduces Arko to Texas, where there are 24 company-operated Uncle’s stores across the western region of the state. The deal also includes WTG’s 57 proprietary Gascard-branded fleet fueling sites and 52 private sites. Gascard’s locations are in West Texas, South Texas and Eastern New Mexico.

“We are committed to creating value for our stockholders with a systematic, convenience-store focused long-term growth strategy focused on disciplined and accretive transactions,” Arko Chairman, President and CEO Arie Kotler said in a statement. “We believe that we add significant value to acquisitions with our excellent integration capacity, which has helped accelerate the pace of dealmaking, which in turn improves our business, creates more efficiencies, and funds future growth —  a virtuous cycle that we believe sets Arko apart as a leading convenience store operator and acquirer of choice. Adding these assets to our family of community brands is perfectly aligned with Arko’s strategy, and we look forward to welcoming WTG employees to our company.”

The acquisition is the company’s fourth in 2022. In October, Arko entered into an agreement to acquire Pride Convenience Holdings LLC.

Combined, WTG, Pride, and TEG are expected to grow Arko’s base of convenience stores by approximately 15%, adding more than 200 retail stores and a pipeline of new build opportunities, according to a news release from Arko.

This acquisition would bring Arko’s fleet from 183 sites at the end of the third quarter to more than 290 upon closing. WTG sold about 85 million gallons of of gas in fiscal 2021.

For the purchase of WTG, Arko plans to finance about $25.4 million of the transaction. Oak Street Real Estate Capital, a division of Blue Owl Capital, expects to fund the remaining $115 million as part of a $1.15 billion agreement announced in May 2021. Oak Street plans to acquire the real estate assets of WTG as part of the transaction, and Arko expects to lease them back from Oak Street.

Arko Corp. made the Fortune 500 list for the first time in 2022, ranking No. 498.

Farmer Focus taps new president/COO

Harrisonburg-based organic poultry producer Farmer Focus announced leadership changes Tuesday, including tapping a new president and chief operating officer as well as a new chief commercial officer.

Stephen J. Shepard is the company’s new president and COO, a promotion from executive vice president of operations, a position he has held since April. In his new role, he will focus on increasing production capacity while reducing the company’s greenhouse gas footprint and championing environmental sustainability, according to a news release from Farmer Focus. He replaces Erik Vaughan, who had been president and COO since 2017.

Kathryn Tuttle
Photo courtesy Farmer Focus

Kathryn Tuttle has been promoted from chief marketing officer, the position she’d held since 2020, to the newly created position of chief commercial officer. In her expanded role, she will oversee sales, marketing and new product innovation.

“The promotion of Stephen and Kathryn furthers our mission to promote and protect generational farming while prioritizing animal welfare and growing the organic category as a whole,” Farmer Focus Founding Farmer and CEO Corwin Heatwole said in a statement. “We are excited to continue developing our team, and leveraging their experience to grow our business and network of family farmers.”

Founded in 2014 and formerly known as Shenandoah Valley Organic, Farmer Focus sells organic poultry raised as free-ranging on humane-certified farms. It has partnered with 78 independent chicken farmers and has more than 130 on its waiting list. In February, Farmer Focus opened a 78,000-square-foot packaging facility in Harrisonburg, which increased production capacity and expanded Farmer Focus’ 700-person-plus workforce.

The organic chicken producer has expanded its product line into Publix Super Markets Inc. and now has a partnership with Safeway Inc. in the mid-Atlantic region, according to a news release. It added 750 retail locations in the fourth quarter of 2022, making its chicken available in more than 3,100 stores throughout the East Coast and Midwest.

In September 2021, Farmer Focus hired a new chief financial officer and a research and development head.

GMU names EVP for finance and admin

George Mason University has promoted Deb Dickenson to executive vice president for finance and administration, the university announced Monday.

Dickenson had been serving as interim senior vice president for administration and finance since June. In her new role, she will be responsible for universitywide leadership, strategic oversight and financial and operational management of the administrative and financial business units at the university. She will also collaborate with GMU’s board of visitors, office of the provost and academic and nonacademic leadership, as well as working with the university’s government relations team and elected and appointed leaders in Richmond.

“I’m so proud to be part of this community of Patriots making huge leaps forward for the university, our region and the commonwealth,” Dickenson said in a statement. “Alongside our outstanding leadership team, I will continue to work efficiently and effectively to increase support for Mason students, faculty and staff and ensure everyone has equal opportunity to thrive as part of a diverse and inclusive Mason Nation.”
Dickenson joined GMU in 2019 after 13 years at George Washington University. Before serving in her interim role, she served as vice president for finance. At GWU, she held roles such as assistant dean for finance, planning and fiscal operations and principal business officer.

Before she joined GWU, she served in senior financial positions at Marriott International Inc., Price Waterhouse LLP (now PricewaterhouseCoopers) and Arthur Anderson & Co. (now Accenture).