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byline: Robyn Sidersky

Norfolk looks to renovate Scope, Chrysler Hall instead of building new arena

Norfolk no longer plans to build a new arena after Military Circle Mall is torn down, and instead is seriously considering renovating two city-owned venues downtown: the 53-year-old, 10,000-seat Scope Arena and the nearby 52-year-old Chrysler Hall, a 2,500-seat theater.

“The participation of the public dollar that we would need on the arena is more than anybody anticipated,” Sean Washington, Norfolk’s economic development director, told Virginia Business.

The decision puts to rest the city’s long-delayed plans to choose among three competing development teams to redevelop the Military Circle Mall site into an arena-anchored mixed-use development. The frontrunner among the proposals had been the Wellness Circle project backed by a development team including superstar singer Pharrell Williams, Virginia Beach-based Venture Realty and California-based Oak View Group. Two other development teams, including groups connected with Hampton Roads hotel developer Bruce Thompson and Pro Football Hall of Famer Emmitt Smith of Dallas Cowboys fame, submitted competing proposals.

Despite the city apparently giving up on plans to build a new arena on the former Military Circle Mall site, it is still seeking to redevelop the property. On Feb. 20, the Norfolk Economic Development Authority issued a new request for proposals for an architectural firm to come up with multiple adaptive reuse plans to redevelop the Military Circle Mall property “for office, retail, residential, open space and other public amenities,” with a March 4 deadline for proposals. “The authority intends to award a contract as soon as practicable after receipt and evaluation of vendor’s proposals,” according to the document.

‘A real opportunity’

Norfolk commissioned a study in late 2023 from Richmond-based Moseley Architects to examine possibilities for renovating Scope Arena and Chrysler Hall, with results expected in March. The city had begun looking at potential renovations of Scope Arena and Chrysler Hall in 2019, but paused during the pandemic.  

The major reasons to modernize the Scope Arena would be to create a better experience for guests and touring shows, as well as generate more revenue, city officials said. 

“These buildings are 50 years old, and, boy, they are tired. They need some help,” said Rob Henson, acting director for the city’s Department of Cultural Facilities, Arts and Entertainment. Henson manages SevenVenues, the city entity that runs the Scope Arena and Chrysler Hall, among other city-owned venues. “To fix some things after 50 years is hard work. They’re due for a facelift.” 

Henson added the two venues are “maxed out on our revenue-generating potential. … If we could get another 40% or 50% more than we are getting now, that [would be] huge. That [would be] a total game changer.”

With its 10,000-seat capacity, Scope Arena still has an adequate audience size to attract major touring productions, Henson said, but it needs to be able to generate more revenue to attract better-quality performing acts. A renovated facility would justify higher prices for premium features and greater revenues.

“I see a real opportunity here,” he said. Rather than construct “an expensive new arena,” the city could renovate the existing Scope Arena and add new amenities. “In my business, we have found that patrons want not just to have to buy a ticket to see a show; they want to buy a ticket to have an experience.” 

That means VIP lounge options, premium seats, VIP parking options and exclusive access to certain areas, for example. Those kind of additions, Henson said, account for 80% of revenues and profits, not just at Scope Arena and Chrysler Hall, but every venue in the city. 

Making improvements and creating new revenue-generating opportunities will help Scope Arena and Chrysler Hall continue to be a competitive and attractive touring stop for performing acts traveling between Washington, D.C., and Charlotte, North Carolina, Henson added. “That’s where Norfolk hits its stride,” he said. “That’s where Norfolk is going to win, and it’s going to win every time.”

Proposed changes at Scope Arena — that will be more fleshed out in the study — include projects such as adding amenity space outside the arena, premium seating inside the arena and more bathrooms. Needs for the plaza, the outdoor space between Scope Arena and Chrysler Hall, are the ability to program outdoor events and upgrade parking garages.

Across the plaza from Scope Arena, Chrysler Hall has a logistics issue with the limited capacity of its loading dock. Only one truck can be unloaded at a time at its loading dock, Henson said, and many touring shows require multiple trucks. This can add to labor costs for production companies.

Washington

“When you think of a show like ‘Hamilton’ that had 32 semis, imagine how long that took. So we have jerry-rigged, built out a second one so we can unload two at a time,” Henson said. Chrysler Hall needs a bigger loading dock, he added.

Other proposed changes the city is considering at Chrysler Hall include adding a center aisle, expanding the lobby and improving flow, adding more restrooms, catering facilities backstage and other amenities for traveling acts. The city also wants to add to the loading dock capacity and improve sound, lights and acoustics.

But many questions remain to be answered surrounding the costs and timelines for making changes to the venues. 

‘Putting a Band-Aid’ on the problem?

Regarding costs, the city needs to determine if it will seek historic tax credits for each structure and the whole complex. Scope Arena was built in 1971 and Chrysler Hall was built in 1972. As part of a complex, both venues, including the outdoor plaza, are eligible for historic tax credits. While that could save the city money, it may not allow for some cosmetic improvements, though. But if the city doesn’t use the credits, the project would likely cost more.

Another consideration, Washington said, is whether renovations to Scope Arena and Chrysler will be cost-effective as a long-term solution or if it would just be “putting a Band-Aid” on the problem. The city hopes the forthcoming study from Moseley Architects will provide some answers to that.

City staff hope to bring the study before City Council as soon as March and present two proposals for deliberation: one encompassing all potential renovations, and another covering just interior work. City leaders most recently broached the topic of the venue renovations during the council’s November 2023 retreat.

Aside from costs, another big factor for the city to ponder is timing. Touring companies generally plan their schedules about two years out, and the Norfolk Admirals hockey team plays home games at Scope Arena, so logistics and timelines are going to be important.

Both buildings could be renovated at the same time, which could prove to be more cost-effective. With Scope Arena, it could be phased or planned around hockey, but that’s a larger conversation, Washington said. Both he and Henson emphasized the importance of making sure that any renovations of the two facilities are carried out in the best possible way.

“We only get one swipe at this apple,” Henson said. 

BAE Systems closes $5.6B acquisition of Ball Aerospace

Falls Church-based BAE Systems Inc., the U.S. arm of the British defense giant BAE Systems, has completed its $5.6 billion acquisition of Colorado-based Ball Aerospace from Ball Corp.

BAE Systems announced Feb. 14 it earned the necessary regulatory approvals and followed that with a Feb. 16 announcement of the deal’s completion. The company first announced the transaction, which it is funding through existing cash and new external debt, in August 2023.

BAE Systems will form a new business division, Space and Mission Systems, following the acquisition, and 5,200 U.S. employees from Ball Aerospace will join the company.

Ball Corp., the former owner of Ball Aerospace, supplies aluminum packaging for beverage and household product customers. Ball Aerospace supplies spacecraft, mission payloads and optical and antenna systems and works with the intelligence community, the Department of Defense, civilian space agencies and on aerospace and defense contracts.

“In recent years, we’ve said that we would seek out opportunities to grow our portfolio in advanced technology areas that meet our customers’ most urgent needs, and completing the acquisition of Ball Aerospace is an example of that strategy in action,” BAE Systems CEO Charles Woodburn said in a statement. “We look forward to welcoming the employees of Ball Aerospace to BAE Systems, bringing one of industry’s most respected and capable businesses into the group. The addition of this quality, fast-growing technology-focused business will significantly expand our presence in this increasingly critical space domain and further enhances our value compounding model of top-line growth, margin expansion and high cash generation.”

BAE Systems reported $12.6 billion in revenue in 2022 and has 31,300 employees in the U.S., including more than 5,100 in Virginia.

Lighthouse Labs names new managing director

Debbie Irwin, the former director of the Shenandoah Community Capital Fund, will be the next managing director of Lighthouse Labs, the Richmond accelerator announced Friday. She begins her new role Feb. 26.

Irwin is leaving her role at SCCF, another entrepreneurial support organization based in Staunton, where she served for six years, first as director of education and marketing and then as executive director. Before that, she was director of programs and special events for the Greater Augusta Regional Chamber of Commerce, according to her LinkedIn page.

At SCCF, Irwin grew the organization’s budget by 10 times and grew its staff to 14, managed small business development efforts and won three major state/federal grants and oversaw its lending portfolio, according to a news release from Lighthouse Labs.

Irwin also founded The Manufactory Collective, a manufacturing-focused coworking and support space in Harrisonburg, and serves on the City of Staunton and Stafford County Joint Industrial Development Authority, which supports the Virginia Municipal League and Virginia Association of Counties municipal programs.

“As Lighthouse Labs focuses on the next 10 years, I’m pleased to have an opportunity to build on past work,” Irwin said in a statement. “Lighthouse’s strong record of accelerating dynamic — and successful — startups while investing in the lives of founders has set the organization up for continued growth.”

Art Espey stepped in to lead Lighthouse Labs last April, after Paul Nolde departed to become managing director of Norfolk-based 757 Angels and 757 Collab. Espey will continue to serve on Lighthouse Labs’ board of directors.

“Debbie brings a wealth of experience in strategic planning and fundraising, both critical to Lighthouse Labs as we progress into our second decade,” Joe Whitchurch, president of the Lighthouse Labs Board of Directors, said in a statement. “Her understanding of founder needs, deep connections across Virginia and growth mindset are skills that impressed the hiring committee. We look forward to welcoming her to the Lighthouse Labs team.”

Lighthouse Labs is an accelerator supporting founders and startups. It has accelerated 119 companies and invested more than $2.2 million since its founding in 2012. Its 11-week program provides founders with support from mentors, industry experts, investors, free office space and $20,000 in equity-free funding. The accelerator announced its spring cohort of eight startups this week.

Armada Hoffler to name Shawn Tibbetts as next CEO

Virginia Beach real estate investment trust Armada Hoffler expects to name Chief Operating Officer Shawn Tibbetts as its CEO next spring, when current CEO Louis Haddad plans to retire. Tibbetts has been promoted to president and will remain COO, Armada Hoffler announced Thursday.

Tibbetts has been COO since he joined the company in 2019 after serving as the Port of Virginia’s president and COO. He spent nine years at the port.

Daniel Hoffler, the company’s founder and executive chairman, will relinquish his chairman role in June, and Haddad will become executive chairman, while remaining CEO, until his retirement in 2025. Pending a shareholders’ vote at the company’s 2024 annual meeting, Hoffler will continue to serve as chairman emeritus.

In his expanded role, Tibbetts will continue to oversee all aspects of the company’s operations, guiding strategic initiatives and fostering innovation, according to a news release from Armada Hoffler.

“Shawn has consistently demonstrated exceptional leadership qualities and strategic vision throughout his time with us,” Haddad said in a statement. “We have full confidence in Shawn’s ability to lead our company to even greater heights. His promotion to president is a well-deserved recognition of his outstanding contributions and will undoubtedly bring continued success to Armada Hoffler.”

Under Tibbetts’ leadership, Armada Hoffler’s portfolio net operating income grew by 45%, and Tibbetts oversaw the execution of more than $1.2 billion in transactions.

“I am honored to assume this role and deeply appreciative of the support from the board of directors, including Dan and Lou,” Tibbetts said in a statement. “I am excited to continue to build upon the incredible foundation Armada Hoffler has established over the past four decades and continue to exceed the expectations of our shareholders.”

Tibbetts earned his bachelor’s in business administration from James Madison University and his MBA from William & Mary, as well as completing the Advanced Management Program at Harvard Business School.

Armada Hoffler is the real estate giant behind Virginia Beach’s Town Center. The firm’s flagship project was built as part of a public-private partnership.  As of last fall, it had 51 large-scale commercial assets and had developed more than $800 million in new projects. It has operations in seven mid-Atlantic states and also provides general construction and development services to third-party clients. It was founded in 1979 by Hoffler.

Lego delays Chesterfield production start to 2027

Lego Group will begin production at its $1 billion Chesterfield manufacturing facility in 2027, at least a year later than originally planned, the Danish toymaker announced Thursday. 

The company also named Preben Elnef as project lead and Gray | Hourigan, a joint venture between Lexington, Kentucky-based Gray and Richmond-based Hourigan, as general contractor. 

Billund, Denmark-based Lego first announced the project in July 2022 and broke ground on its plant in Chesterfield’s Meadowville Technology Park in April 2023. The company expects to hire 1,761 workers over the next 10 years. When complete, Lego’s 340-acre campus will have 13 buildings comprising 1.7 million square feet, including office spaces, molding, processing and packing buildings, and a high bay warehouse. 

When Lego broke ground, the company said it would start production in late 2025. Factors that contributed to the delay include finalizing the agreement with the general contractor and assessing design and ramp-up plans. 

Construction of the factory buildings will begin later this year.

Lego has already opened a temporary packaging facility in Chesterfield’s Walthall Interchange Industrial Park in October 2023, ahead of schedule, where it has hired 200 workers.

“We are pleased with the progress we’re making with our investment in Virginia and grateful for the continued support from the local community,” Lego Chief Operations Officer Carsten Rasmussen said in a statement.

Lego’s vice president of workforce solutions and operations, Preben Elnef, will lead the project beginning in April and oversee all aspects of the project, including the Chesterfield factory’s construction and opening. Elnef was previously vice president and general manager for Lego Manufacturing in Vietnam and has been with Lego for the past decade. 

“I am excited to join the team. This is an important program in support of our mission to inspire and develop kids across the Americas region for generations to come,” said Elben, who expects to relocate to the Richmond area in the spring. “It is also a step towards operating more sustainably, as we’re building a site designed to minimize energy use. I look forward to continuing our important partnerships in the local community to bring play to more children in Virginia.”

The Chesterfield factory is Lego’s first U.S. manufacturing facility and its second in North America, the first being in Monterrey, Mexico. 

Lego established its American subsidiary, Lego Systems, in 1973. Although its Americas headquarters have been in Enfield, Connecticut, since 1975, the company is moving its U.S. headquarters to Boston in 2026. The toymaker employs more than 3,000 people in the U.S. and has more than 100 stores, including four in Virginia — in Arlington County, McLean, Woodbridge and its most recent in Virginia Beach. Worldwide, the company has more than 27,000 employees.

Trident Systems to add 50 jobs in Fairfax

Fairfax-based aerospace defense contractor Trident Systems plans to invest $3.7 million in an expansion of its Fairfax County operation, creating about 50 jobs, Gov. Glenn Youngkin announced Tuesday.

Trident Systems, which was acquired by Chantilly-based LightRidge Solutions in July 2023, produces space electronic systems for the Department of Defense, NASA and the intelligence community. The company works in space electronics and integrated C4ISR (Command, Control, Communications, Computers Intelligence, Surveillance and Reconnaissance) technologies.

The expansion will add infrastructure to assemble, integrate and test Trident products. It will expand capacity for material handling and storage, electronic lab benches, test stands and specialized testing equipment such as environmental test chambers, a spokeswoman for LightRidge Solutions told Virginia Business.

Trident Systems has 172 employees, with about a dozen currently working at the Chantilly facility, according to the LightRidge spokesperson. Trident expects to add 30 to 50 employees in Chantilly over the next year and into 2025. The jobs will include production engineering, test and assembly as well as specialized technician roles and management/oversight roles to support the operation.

“Trident’s rapid growth providing unique solutions that maximize our customer’s mission impact enabled the need for this higher-volume production facility. We are excited to expand our presence in Virginia supporting our nation’s critical space needs,” Lorin Hattrup, general manager of Trident Systems, said in a statement. “Our new production facility will allow us to support a range of products on rapid timelines while maintaining affordability.”

Trident Systems is a 2020 graduate of the Virginia Economic Development Partnership’s Virginia Leaders in Export Trade (VALET) program, which assists established Virginia-based companies with growing their export business.

“Trident Systems’ expansion demonstrates the strength of the commonwealth’s aerospace and tech ecosystem,” Youngkin said in a statement. “This homegrown Fairfax County company has grown its business in the commonwealth for nearly [40] years, and its continued innovation in space electronics is at the heart of this production expansion to serve the defense and intelligence communities.”

In March 2023, Northrop Grumman selected Trident Systems as a subcontractor to provide processing and storage electronics for 14 of the Space Development Agency’s Tranche 1 Tracking Layer satellites. Trident Systems is delivering developmental and flight units in support of the payload, which is designed to track missiles and other hypersonic objects from low Earth orbit.

Chantilly-based defense contractor LightRidge Solutions, a portfolio company of ATL Partners, acquired Trident Systems for an undisclosed amount last summer. It was LightRidge’s third acquisition.

VEDP worked with the Fairfax County Economic Development Authority to secure Trident’s expansion for Virginia. Trident will receive support through VEDP’s Virginia Jobs Investment Program, which provides consulting services and funding supporting job recruitment and training for companies creating new jobs in the commonwealth.

This story has been updated since publication to reflect LightRidge’s updated headquarters location.

 

SCCF exec director to depart

Debbie Irwin, executive director of the Shenandoah Community Capital Fund, an entrepreneurial support organization based in Staunton, is leaving her role in March, the organization announced Tuesday.

SCCF’s board of directors will begin a national search for her replacement. When Irwin leaves, Ryan Hall, director of growth and revenue, will take over the responsibilities of the executive director.

“It has been an immense pleasure to serve as the executive director of SCCF,” Irwin said in a statement. “I’m so thankful for all the partners, board members, staff and community members who have believed and supported me as we have continued to build the entrepreneurial ecosystem in the Shenandoah Valley. I’m extremely confident that the SCCF team will continue to drive the organization forward. Their big thinking, passion for entrepreneurship, and dedication to the Shenandoah Valley will keep SCCF thriving.”

Irwin joined SCCF in October 2017, and under her leadership, the organization invested more than $4 million in state and federal funds into the region and created partnerships within the Shenandoah Valley’s entrepreneurial ecosystem.

“We are deeply grateful to Debbie for her outstanding contributions and unwavering commitment to the mission of SCCF,” John Gillies, president of the SCCF board, said in a statement. “Her leadership has been instrumental in driving positive change and creating opportunities for economic growth and prosperity in our region.”

Irwin wrote in a LinkedIn post Tuesday that she is excited “to embrace a new opportunity that aligns with my personal and professional goals,” but didn’t name her next step.

SCCF is a Staunton-based nonprofit entrepreneurial support organization that offers startup and small business loans and helps entrepreneurs develop business plans and skills.

UPDATE: Irwin named new managing director of Richmond’s Lighthouse Labs

BlueHalo nears $1B in annual revenue with acquisition

Arlington-based tech contractor BlueHalo announced Tuesday it plans to acquire Maryland-based Eqlipse Technologies, a purchase that the company expects to bring its annual revenue to nearly $1 billion. 

Eqlipse and BlueHalo are both portfolio companies of Arlington Capital Partners, and together, the combined company will have 2,400 employees, including 200 doctorate holders, across 11 states, as well as owning 90 patents. BlueHalo has 700 employees in Virginia, and Eqlipse has 800 employees total.

Reaching the billion dollar mark is an “investment metric that allows us to really level up and play on a new plane relative to how we can continue to invest in our technologies, in our road map, in our employees and continue to differentiate us across a competitive landscape,” BlueHalo CEO Jonathan Moneymaker told Virginia Business on Tuesday.

He declined to disclose the purchase price. The deal is expected to close in the first quarter, and Moneymaker will be the combined company’s CEO.

Eqlipse, which started less than a year ago, provides capabilities in electronic warfare, virtual operations, identity management, cyber and online operations, and research and technology capabilities.

Moneymaker said BlueHalo has been working with Eqlipse for the past 18 months and the acquisition allows the company to accelerate “the roadmap of where we were already looking to invest into the business.” 

BlueHalo’s core mission areas are space, counter-unmanned aircraft systems (C-UAS) and autonomous systems, electric warfare (EW) and cyber and artificial intelligence, all stated priority areas for the Department of Defense. BlueHalo formed in 2019 and has made several acquisitions in the past few years. In November 2023, BlueHalo announced its acquisition of Ipsolon Research, and in April 2023, it acquired Leesburg-based Verus Technology Group. 

Moneymaker says BlueHalo doesn’t have a mergers and acquisitions strategy, it has a corporate strategy, and that the company is now in a desirable position to be able to invest in growth locally in the Washington, D.C., region.

“Unifying BlueHalo and Eqlipse’s capabilities will accelerate our development of new technologies for our defense and intelligence customers to a pace that others cannot match,” David Wodlinger, a managing partner at Arlington Capital Partners, said in a statement. “The strategic combination of BlueHalo and Eqlipse creates a scale of innovation that establishes the combined company as one of the preeminent defense technology platforms in the industry.”

ODEC keeps interim president and CEO permanently

John C. Lee Jr. will stay on as Old Dominion Electric Cooperative’s permanent president and CEO after serving in an interim capacity since Sept. 8, 2023, the Glen Allen-based not-for-profit power cooperative announced Monday.

In October 2023, ODEC began its search for a new president and CEO after Marcus Harris resigned in September. He’s now senior vice president of planning and power supply for Central Electric Power Cooperative in South Carolina.

Lee had also been president and CEO of Mecklenburg Electric Cooperative and Empower Broadband, but he will retire from those roles to focus his attention on ODEC, according to a news release. He was CEO of Mecklenburg Electric Cooperative since January 2008 and since then has also served on ODEC’s board of directors, including as chair from 2020 to 2023. He will resign from his board position with his new role.

Lee had been with Empower Broadband since 2018, and he held several roles at ODEC beginning in 1992.

“I am honored to be selected as the CEO of one of the nation’s premier generation and transmission cooperatives and will work diligently to maintain ODEC’s powerful legacy of outstanding service to its members,” Lee said in a statement. “ODEC and its dedicated board of directors are focused squarely on the needs of those we serve, and it will be a privilege to work alongside the outstanding team of employees at ODEC as we tackle imposing issues that face our industry, while keeping the electrons reliably flowing to our 11 member electric cooperatives.”

Lee has also served on other electric cooperative boards, including the Virginia, Maryland and Delaware Association of Electric Cooperatives, National Rural Electric Cooperative Association, National Cooperative Services Corp. and others.

He has a bachelor’s degree in business from Mississippi State University.

“John has served as ODEC’s interim CEO extremely well over the past five months, and the board is completely confident that this continued transition to his full-time service will proceed without the cooperative missing a beat,” ODEC board Chairman Steven Harmon said in a statement. “We are extremely optimistic about the future of the organization due to John’s leadership and ODEC’s talented staff.”

In January, ODEC named Jack Robb its chief legal officer and senior vice president and Chris Cosby its chief operations officer.

ODEC is a not-for-profit. member-owned power supply cooperative that supplies wholesale power requirements to its 11 member electric distribution cooperatives that provide electricity to 1.5 million people in Maryland, Virginia and Delaware.

Va. Beach apartment complex sells for $36M

Dove Landing, a 318-unit apartment complex in Virginia Beach, has changed hands, Berkadia announced Jan. 31.

Chesapeake-based Community Investment Group bought the property for $36 million from Enterprise Community Development, a nonprofit affordable housing provider in the mid-Atlantic, according to a news release from Berkadia.

Dove Landing, at 5301 Justin Court, was built in 1982, renovated in 2015 and has 318 one- and two-bedroom apartments. The community also has a pool, dog park and laundry facility. The property will be improved and transformed, according to the release.

The deal closed Jan. 18.

“We are proud to add Dove Landing to our quickly expanding portfolio of multifamily properties within the Southeast,” Brad Newton, community executive officer of CIG, said in a statement.

Drew White of Berkadia DC Metro, Carter Wood of Berkadia Norfolk and Cole Carns of Berkadia Richmond led the sale on behalf of the seller.

Patrick McGlohn, Brian Gould, Miles Drinkwalter and Natalie Revers of Berkadia DC Metro, joined by Hunter Wood of Berkadia Richmond, secured a $31.85 million acquisition loan from New York-based Ease Capital on behalf of the buyer.