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byline: Virginia Business
FOR THE RECORD June 2024
CENTRAL VIRGINIA
Washington, D.C.-based real estate analytics and data company CoStar Group will receive a grant from the City of Richmond worth several million dollars because of the company’s plan to build an office tower expected to generate more than $30 million in new tax revenue. On April 22, Richmond City Council approved an ordinance to refund 75% of the company’s new real estate taxes and all of its new business property tax for the first three years after the 26-story tower is built. For the following seven years, the city will give back a smaller portion of CoStar’s taxes. (Richmond Times-Dispatch)
Richmond-based Endeavour Legacy Foundation has pledged $20 million to Hampden-Sydney College, the second largest gift in the college’s history. The college will use the gift, announced May 14, toward renovating its former science center, Gilmer Hall, into an academic facility housing the economics and business, and government and foreign affairs departments, with completion expected in 2026. (VirginiaBusiness.com)
Paymerang, a Chesterfield County-based payment and invoice automation company, has signed a definitive agreement to be acquired by Atlanta-based corporate payments processor Corpay for $475 million, according to an SEC filing and a May 8 news release. The transaction is expected to close in the second quarter of the year, subject to regulatory approval and standard closing conditions. McLean-based Aldrich Capital Partners, a growth equity firm, is parting with Paymerang, after acquiring the company in 2018 following a $26 million investment. Paymerang has 300 employees and the company will stay where it is, with no leadership changes expected, a company spokesperson told Virginia Business. (VirginiaBusiness.com)
After a closed meeting, Petersburg City Council abruptly voted on April 24 to pick Baltimore-based Cordish as the developer for a potential casino in the city, canceling a competitive bidding project. The company’s proposal, planned in conjunction with former NFL Hall of Famer Bruce Smith, is a mixed-use gambling and entertainment development that could total $1.4 billion in investments over 15 years. On May 1, Petersburg Mayor Sam Parham said he stood by the allegation that his city faced political pressure from the General Assembly to choose a particular developer or risk losing the chance to have a casino altogether. (Virginia Mercury)
Richmond City Council approved a new financial structure to build a minor league baseball stadium at the Diamond District in a 6-0 vote on May 8. Under the new plan, Richmond will issue $170 million worth of general obligation bonds, and revenue from the stadium and the surrounding development would pay off the debt. If, however, the revenue doesn’t materialize, the city will have to cover the cost by raising taxes or cutting services. Major League Baseball and the Richmond Flying Squirrels team, who have pushed for the stadium to open by 2026, expressed support for the initiative. (Richmond Times-Dispatch)
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 April 19. The plant is expected to create about 150 jobs, according to a news release from the offices of U.S. Sens. Tim Kaine and Mark Warner and U.S. Rep. Jennifer McClellan. Topsoe will manufacture solid oxide electrolyzer cell (SOEC) stacks, which help produce renewable or “green” hydrogen, in Chesterfield. A May 1 announcement from Gov. Glenn Youngkin noted that the Meadowville Technology Park facility would be Topsoe’s largest U.S. investment. (VirginiaBusiness.com)
EASTERN VIRGINIA
Mary, the tunnel boring machine that has been paving the way for the expanded Hampton Roads Bridge-Tunnel, hit a milestone April 15 when it finished the first of twin tunnels that are part of the bridge-tunnel’s expansion. Launched from the HRBT’s South Island a year ago, the $70 million custom-built tunnel boring machine has been busy — it excavated 7,900 feet, or 750,000 cubic yards of soil, while installing 1,191 concrete rings behind it, according to the Virginia Department of Transportation. Now, it’s ready to turn around and do it all over again on the return trip to carve out the expansion’s second tunnel. (VirginiaBusiness.com)
MacArthur Center mall in downtown Norfolk is expected to be replaced by a major mixed-use development, which could be called “The Anchorage,” featuring a 400-room, military-themed hotel and 518,000 square feet of high-rise residential space, Norfolk Mayor Kenny Alexander announced April 12 during his State of the City speech. The development would have a 518,000-square-foot high-rise residential tower — with possibly 400 to 600 units — offering rental and ownership options, plus 47,000 square feet of “luxury amenities” and active ground-floor leases. There would also be a 2-acre pedestrian-oriented promenade with more than 170,000 square feet of retail space. The new development would completely replace the existing mall, except for the parking garages. (VirginiaBusiness.com)
Newport News Shipbuilding delivered fast-attack submarine USS New Jersey to the Navy, officials announced April 26. The 7,800-ton submarine was built as part of a team agreement between Newport News Shipbuilding and General Dynamics Electric Boat in Connecticut. The New Jersey is the 11th Virginia-class submarine to be delivered by the Newport News shipyard to the Navy, the company said. The delivery comes as the companies face major shipbuilding delays. Blocks four and five of Virginia-class submarines, the Navy said in April, are delayed 24 to 36 months. (The Virginian-Pilot)
William & Mary hopes to be the first public university in Virginia to offer a bachelor’s degree in marine science. The school’s board of visitors in late April passed a resolution to create the new undergraduate program, citing increased demand in the field. The university still needs final approval from the state. William & Mary already has master’s and doctoral programs in marine science through its Virginia Institute of Marine Science at Gloucester Point, which also conducts research for state policymakers. The university is now working on a proposal to submit to the State Council of Higher Education for Virginia. Officials hope to launch the program in fall 2025. (WHRO)
PEOPLE
Leonard Sledge is headed back to Hampton. The city’s former economic development director, who served in the role 2013-2018, was rehired to the same position, Hampton city government announced April 11. After leaving Hampton, Sledge worked in the Atlanta area as executive director of the Henry County Development Authority in Georgia. He then returned to Virginia in 2019, accepting a position as director of Richmond’s economic development department. Prior to 2013, Sledge was director of William & Mary’s economic development office. (The Virginian-Pilot)
Virginia Beach-based Chartway Credit Union has hired Sander Casino as its chief financial officer, the credit union announced May 1. Casino was most recently senior vice president of finance for Raleigh, North Carolina-based Local Government Federal Credit Union and its affiliate, Civic Credit Union. Before joining LGFCU in 2012 and Civic in 2018, Casino worked for about a decade with RBC Bank, where he was director of treasury. He has 26 years of experience in the financial sector. (VirginiaBusiness.com)
NORTHERN VIRGINIA
Arlington County-based Accenture Federal Services entered into an agreement to acquire Falls Church-based Cognosante in mid-April, the two companies announced. Terms were not disclosed, but Cognosante’s 1,500-plus employees will join AFS’ workforce of 14,000, according to the announcement. AFS is a subsidiary of Fortune Global 500 professional services company Accenture, and Cognosante provides IT support to federal, state and local government agencies with public health missions. AFS intends to launch a new health care portfolio with the acquisition. (VirginiaBusiness.com)
The launch of a Boeing spacecraft was postponed May 6 after concerns emerged with a component on the rocket set to propel it into space. Rocket company United Launch Alliance announced the delay about two hours before it expected to blast off the Starliner vehicle stacked on top of its booster. The Cape Canaveral, Florida, launch would have marked the first crewed flight for Starliner, which was set to carry two NASA astronauts. The problem involved an oxygen valve on ULA’s Atlas V rocket. The Starliner’s launch was delayed to May 21. (The Wall Street Journal)
Google is investing $1 billion to expand its Virginia data center campuses this year and is launching a $75 million Google.org AI Opportunity Fund, one of Google’s top executives and Gov. Glenn Youngkin announced April 26 at the tech giant’s Reston office. Google has two data centers in Loudoun County and one in Prince William County that opened in 2023. The AI fund will make grants to workforce development and education organizations, and Google also is launching a certificate course, AI Essentials, to teach people to “use AI effectively in day-to-day work.” (VirginiaBusiness.com)
McLean-based satellite services provider Intelsat made a deal to be acquired by SES, a Luxembourg-based competitor, for $3.1 billion in cash, the company announced in late April. The deal is expected to close in the second half of 2025. Intelsat CEO David Wajsgras will stay on until the close of the transaction but does not plan to remain at the combined company, a spokesman said. In March, SES opened its new U.S. technology and operations hub facility in Prince William County. The two corporations previously discussed a merger, but talks fell apart in June 2023. (VirginiaBusiness.com)
Metro’s board of directors on April 25 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 systems, had warned of “catastrophic” cuts to service because of a $750 million shortfall forecast if Virginia, Washington, D.C., and Maryland state and regional officials didn’t increase funding. Virginia and Northern Virginia localities will chip in a total $467.3 million for Metro’s 2025 operating budget and $294.8 million for the capital budget. (VirginiaBusiness.com)
The United Arab Emirates paid a staggering $55 million for 18 acres overlooking the Potomac River in McLean, where the government plans to build three diplomatic residences and a nearly 11,500-square-foot “exercise structure.” The UAE acquired 1019, 1049 and 1079 Crest Lane in September 2022 in a single off-market transaction that was never recorded with the area’s listing service, but does appear in public records. The lots were bought from a trust tied to Richard L. Adams Jr., the internet pioneering founder of UUNet Technologies. There are no structures on the parcel other than perhaps an outbuilding. (Washington Business Journal)
ROANOKE/NEW RIVER VALLEY
Construction is progressing for a new 45,000-square-foot, $7.8 million industrial building the Amherst County Economic Development Authority is constructing within the Amelon Commerce Center. The goal is to complete the building, which will have flexible spaces to accommodate one to four light industrial businesses, this fall. The project is funded with a grant from the U.S. Department of Commerce Economic Development Administration, along with EDA matching funds, to provide operational space that will accelerate job growth and create additional economic opportunities. (Amherst New Era-Progress)
ESS Technologies, which specializes in packaging line design, equipment manufacturing and integration for the pharmaceutical, nutraceutical, cosmetic and consumer packaging goods industries, plans to invest $1.6 million to increase capacity at a new facility in Montgomery County. A subsidiary of New York-based Pacteon Group, ESS Technologies will close operations in Pembroke and Blacksburg and consolidate them at the 40,000-square-foot new facility in the former Jeld-Wen building on Scattergood Drive in Christiansburg. The project is expected to create 27 jobs. (VirginiaBusiness.com)
A picture of a ruptured section of the Mountain Valley Pipeline circulating on social media in early May ignited fury from those who have protested the project for years. The damaged pipeline, which the photo showed being hauled down a roadway, was the end result of hydrotesting on a section of the mainline pipe on May 1 near Route 221 on Bent Mountain. The incident came as the pipeline’s developers asked the Federal Energy Regulatory Commission for an in-service date of June 1, a decision protesters continue to oppose. (Virginia Mercury)
Rocky Mount Town Council and the town economic development authority approved moving forward with the purchase of 369 Franklin St. during a joint meeting May 6. The property is currently the site of an Atlantic Union Bank branch. With the recent acquisition of American National Bank, Atlantic Union is consolidating its two locations in Rocky Mount and planned to sell the downtown building. Bank operations will move into the American National Bank location at 400 Old Franklin Turnpike in Rocky Mount. (The Roanoke Times)
The United Way of Central Virginia is launching an initiative to tackle workforce and child care issues in the greater Lynchburg area. Inspired by a successful project in Southwest Virginia, UWCV plans to establish the Childcare and Workforce Development Center. The center will provide high-quality child care along with hands-on learning experiences in various fields to prepare participants for future employment and leadership roles. UWCV plans to assemble a team to conduct surveys and create partner-ships with employers and educational institutions as well as secure a suitable facility to accommodate child care and workforce development needs. (The News & Advance)
Volvo Trucks North America in Dublin said it has begun shipping freight trucks that can burn hydrotreated vegetable oil, or HVO, with 20 to 25 gallons of the plant-based fuel in the new trucks’ tanks. The company said it expects to buy more than 1 million gallons of HVO from its supplier. The availability of internal combustion engines that run on renewable diesel coupled with the development of electric trucks now available and, someday, those with hydrogen fuel cells, will provide multiple ways for “decarbonizing transportation,” according to Volvo President Peter Voorhoeve. (The Roanoke Times)
SHENANDOAH VALLEY
Farm Credit of the Virginias, a cooperative lending institution serving Virginia, West Virginia and western Maryland, said it would return $32 million in May to its customer-owners through its annual patronage program, after the institution’s board of directors elected to return 81% of its net profits. The patronage program effectively lowers the cost of borrowing from Farm Credit of the Virginias. This year’s $32 million distribution equates to having an interest-free loan for more than three months and represents about 27% of the interest accrued on loans. (Daily News-Record)
The Front Royal-Warren County Economic Development Authority voted April 26 to approve a motion entering into a contract with Plein Smith, which has agreed to buy three undeveloped plots totaling 148 acres on Progress Drive for $6.26 million. The property sale helps the EDA pay down its multimillion-dollar debt incurred under a previous executive director, Jennifer McDonald, who was convicted of federal charges related to her unauthorized use of EDA funds to buy properties. Plein Smith had a 120-day due diligence period prior to closing on the property. (The Northern Virginia Daily)
A Shenandoah University alumnus and his wife pledged $20 million to the university, the largest individual donation in the history of the Winchester school. Wilbur and Clare Dove’s gift, announced in late April, will go toward the building of a performing and visual arts center on SU’s campus. Wilbur Dove earned his junior college degree in 1959 from what was then known as Shenandoah College and Conservatory. (VirginiaBusiness.com)
Warren County began looking for a new chief of economic development in early May. Joseph Petty, who was the county’s director of economic development and tourism at the time, confirmed he resigned effective May 17. Petty said he was leaving for a new position in the Warren County community, but would not elaborate. County Administrator Edwin Daley will serve as acting director until the position is filled. The county posted an advertisement for the position, which has a starting salary of $93,308, depending on qualifications and experience. (The Northern Virginia Daily)
A potential buyer of the 22-room Wayside Inn, which opened in 1797, proposed adding 15 recreational vehicle parking sites behind the establishment in a May 6 presentation to Middletown Town Council. The potential buyer, Blake Bullard, said he was looking at ways to diversify the business at 7783 Main St., which includes Larrick’s Tavern, the Wright House and The Red Hat speakeasy. Along with adding RV parking spots, Bullard wants to turn one room into an ice cream and crepe shop and implement longer hours. (The Winchester Star)
Forty complete applications were received for conditional permits to operate as the state’s sole licensed pharmaceutical processor of medical cannabis for a region including the Shenandoah Valley, as well as the cities of Charlottesville and Fredericksburg and the counties of Spotsylvania and Stafford, according to the Virginia Cannabis Control Authority. Applications were due April 30. Each company paid an $18,000 fee for the opportunity to be granted the sole medical marijuana license to serve the CCA’s health service area 1, which has been tied up in litigation for years. (VirginiaBusiness.com)
SOUTHERN VIRGINIA
In an 8-1 vote, Danville City Council May 7 approved changes to an agreement with Caesars Virginia that solidifies an investment nearly double what was originally planned in 2020 but dials back jobs and moves a planned stand-alone entertainment center into a multipurpose space. In 2020, the number of workers for Caesars Virginia was pegged at 1,300. The new agreement puts it in a range of 900 to 1,300. Caesars Virginia General Manager Chris Albrecht stressed the multipurpose space will still have 2,500 seats. Caesars is currently in talks to settle on the first acts that will perform in the first quarter of 2025. (Danville Register & Bee)
Construction at Commonwealth Crossing is expected to start back up this summer following Henry County supervisors’ decision to award a $24 million contract to construction firm Haymes Brothers. Located near the Virginia-North Carolina border, Commonwealth Crossing is one of several industrial parks in Henry County and is home to both Press Glass and Crown Holdings. According to the advertisement for bids, which was filed in February, work entails the construction of a 172-acre pad site along with supporting storm-water management, utility infrastructure and storm sewer. (Cardinal News)
Danville officials want to find out if there is enough demand for regional bus service. The city has sent out a request for proposals seeking bids from firms to develop a feasibility study to possibly implement commuter bus service from Danville to Lynchburg, Martinsville and Greensboro, North Carolina. If completed, the study would be attached to the city’s comprehensive plan that is being updated. The regional bus service, if found to be feasible, would start in summer or fall 2026. (Danville Register & Bee)
New College Institute Board Vice Chair Richard Hall was appointed in April 24 by the institute’s board of directors’ executive committee to be sole authority in mediation between NCI and its foundation. The committee met in closed session to discuss the mediation between NCI and the Martinsville Henry County Academic Foundation, formerly New College Foundation. In June, the NCI board committed $250,000 to support legal action against its foundation, which announced the intention to fund entities in Martinsville and Henry County outside of NCI, for which its money had been raised. (Martinsville Bulletin)
Across the Dan River from Danville’s River District, a largely revitalized part of the city, is North Danville, a business district with a rich history that lost investments and attention after the tobacco and textile industries left town. Leaders with the River District Association, which coordinates efforts to revitalize downtown Danville, plan to ask residents and property owners what they’d like to see in the district directly, instead of hiring a consultant. The RDA has been hosting community meetings to initiate conversations about this effort since February. (Cardinal News)
The West Piedmont Planning District Commission released in April its Comprehensive Housing Study for a region including the cities of Martinsville and Danville, as well as the counties of Henry, Patrick, Pittsylvania and Franklin. The study is intended in part to provide information to assist economic developers, local governments and housing developers in developing new housing options to meet the needs of the region and offer strategies to facilitate regional collaboration and coordination to address current housing challenges. The study revealed challenges related to affordable starter homes, aging in place and financial obstacles. The most significant finding was a shortage of workforce housing for low-wage workers and single-earner households. (Martinsville Bulletin)
SOUTHWEST VIRGINIA
Emory & Henry College is one of several higher education institutions selected to move forward with community lab school plans, according to an April 25 announcement from Gov. Glenn Youngkin. The college’s proposal is the Southwest Virginia Healthcare Excellence Academy Lab School, which will provide high school science- and health care-related curriculum and work-based learning experiences. The lab school, a collaboration between Emory & Henry and multiple regional partners, will be a career academy for students in grades 10 through 12 to create a pipeline for future health care professionals in Southwest Virginia. (Bristol Herald Courier)
Construction of the $25.5 million Regional Workforce and Child Development Hub —led by the nonprofit EO, formerly the program arm of the United Way of Southwest Virginia — in Abingdon is on schedule and about 85% complete, EO President and CEO Travis Staton said during a May 2 hard hat tour. Construction began July 2023 and is expected to be completed in July, with the center opening in August. The 87,000-square-foot facility, a former Kmart store, will house an early childhood development center operated by Ballad Health, STEM labs for teacher training and a shared services alliance for early child care and education providers. (Cardinal News)
Abingdon-based Food City and the Appalachian College of Pharmacy in Oakwood have teamed up to establish an online pharmacy technician program, aiming to ease the pharmacy tech shortage in the region, the organizations announced May 1 at the Southwest Virginia Higher Education Center. The online program will be offered twice a year, and students will be able to finish it within 26 weeks, including six weeks of experiential rotations. Students will then be eligible to take the Pharmacy Technician Certification Board exam. Food City is contributing to the initial costs and startup of the program, although the amount of funding was not provided, and will provide clinical experience rotations at its locations in five states. (Bristol Herald Courier)
Mike Quillen, the founder and former CEO and chairman of coal producer Alpha Natural Resources, has donated $1 million to the University of Virginia’s College at Wise. The college will name the David J. Prior Convocation Center’s court Quillen Court in recognition of the gift, according to its April 26 announcement. Quillen, who grew up in Gate City, previously served on U.Va. Wise’s board and is a member and former chairman of the GO Virginia Region 1 Council. (News release)
Teresa Tyson, president and CEO of The Health Wagon, a nonprofit free clinic serving one of the poorest and medically underserved areas in the state, earned $520,000 in 2022, a pay package that nearly doubled over the last two years and was 12 times that of the average income of the people the clinic serves. The 2022 compensation package number, found in the most recent tax documents available, includes base compensation and benefits from The Health Wagon and compensation from a closely affiliated nonprofit where Tyson also acts as president and CEO. Tyson’s 2022 compensation was a 53% increase from her 2021 compensation of nearly $340,000. (Cardinal News)
The Virginia Coalfield Economic Development Authority is granting Mountain Empire Community College up to nearly $186,100 for a new fiber optic installation program and a new heavy equipment operator II program, VCEDA announced May 1. MECC will use the funds for workforce development and training costs as well as equipment, supplies and tuition expenses for the two programs. Students who complete the fiber optic installation program will earn a nationally recognized network cable installer certification, and graduates of the heavy equipment operator II program will earn multiple credentials. (The Coalfield Progress)
StartVirginia: Heard Around Virginia
Bricklayer AI announced a pre-seed investment of $2.5 million to advance product development of its autonomous AI security analyst solution on May 2. The pre-seed round had participation from Sovereign’s Capital; Dreamit Ventures; Virginia Innovation Partnership Corp.’s Virginia Venture Partners fund; BlueWing Ventures; and Blu Ventures, as well as cybersecurity industry leaders. Bricklayer AI has built an autonomous security platform that combines multiple AI agents to form a team of AI specialists that collaborate with human peers on cybersecurity. (News release)
The Dominion Energy Innovation Center was awarded $150,000 from the Department of Energy in April through the Office of Technology Transitions’ Energy Program for Innovation Clusters (EPIC) round 3. It will fund efforts to accelerate and support startups doing work around data centers, including an accelerator program for startups focused on improving data center energy usage. The 11-week Hyperscaled program will be modeled after DEIC’s Accelerate program and will run from Sept. 9 through Nov. 22. (News release)
Richmond senior services startup Naborforce is expanding again in North Carolina, this time to Greensboro, Winston-Salem, High Point and the greater Wilmington area. The company, led by CEO Paige Wilson, announced in February a return to the Raleigh and Charlotte areas. Naborforce expanded into those North Carolina cities in 2021, but later pulled back. Naborforce currently operates in nine other markets — Richmond; Charlottesville; the Norfolk-Virginia Beach area; Northern Virginia; Washington, D.C.; Bethesda, Maryland; Atlanta and Savannah, Georgia; and Dallas and Fort Worth, Texas. (Richmond Inno)
A company working to derive cancer therapies from milk is the Roanoke-Blacksburg Technology Council’s top entrepreneur of the year. The council selected The Tiny Cargo Co. and its leader, Spencer Marsh, for its Hart of the Entrepreneur Impact Award during its May 8 TechNite 2024 celebration. The council also added Virginia Western Community College’s president, Robert Sandel, to its hall of fame. Marsh and Tiny Cargo are corralling milk exosomes — which serve as cells’ cargo delivery system — to carry drugs to humans dealing with radiation’s effects in cancer treatment. The exosomes might also treat other diseases. The Hart award honors the late Roanoke tech businessman Bonz Hart. (Cardinal News)
Over the past year, the Washington, D.C., metro area outpaced most of the nation in new job creation tied to artificial intelligence. That’s according to data compiled by UMD-LinkUp AI Maps — a joint effort from the University of Maryland’s Robert H. Smith School of Business and LinkUp, a global labor market tracking firm. From March 2023 to March 2024, 1.77% of all job postings in Washington, D.C., were tied directly to roles involving AI, the research found, compared with 1.46% for Virginia. When looking at the Washington, D.C., Maryland and Virginia region as a whole, the region accounted for 11.7% of the nation’s 14,023 new AI job postings in March. (DC Inno)
PEOPLE
Joe Benevento will remain the Virginia Innovation Partnership Corp.’s president and CEO permanently after serving in the role on an interim basis since September 2023, VIPC announced April 24. Benevento took over as interim CEO when Bob Stolle announced he was stepping down. A not-for-profit corporation created in 1985 by the General Assembly as an economic development organization for the tech sector, VIPC provides strategic commercialization and funding support to Virginia-based tech startups. (VirginiaBusiness.com)
StartVirginia: HEARD AROUND VIRGINIA
Comcast said April 9 it is opening grant applications for a program benefiting small businesses across Greater Richmond. The global cable broadcasting company said the grant packages include business coaching, education sources, media schedules, creative production, technology makeovers and $5,000 in cash. Comcast’s RISE program is aimed at supporting the growth of small businesses while advancing diversity, equity and inclusion, and community investment objectives. Small businesses can apply for the grants throughout the month of May and a total of 100 grants for the Richmond area are planned to be announced in August. (Richmond Inno)
Lightshift Energy, an Arlington County startup that builds energy storage systems, has raised $100 million from a repeat investor to significantly expand its workforce and project pipelines over the next year. The Series B round brings Rossyln-based Lightshift’s total outside funding to $120 million. Founded in 2019 by Michael Herbert and Rory Jones, the company was previously called Delorean Power. The investment from two affiliates of Greenbacker Capital Management, a New York funder of renewable energy firms that gave the company $20 million in initial funding, has been split into two respective tranches. (DC Inno)
The Regional and Accelerator Mentoring Program (RAMP) has selected four teams for its spring cohort, the organization announced April 2. RAMP serves startups across the Roanoke and New River valleys. The cohort includes Roanoke-based Alice Innovations, a tech startup aiming to improve operating room service efficiency; Falls Church-based Bacchus Therapeutics, which makes a drug that targets specific cancer metabolic pathways; Roanoke-based Recens Respiratio, a health startup working to produce an autonomous nasal cannula system that will respond in real time to changes in patient oxygen demands; and Blacksburg-based Scanlily, which provides a QR code-based method for managing assets and equipment. During the 12-week cohort program, startups will receive $20,000 in nonequity funding, free office space and other perks. (VirginiaBusiness.com)
The Retail Alliance and Phoebus Partnership announced five small businesses in Hampton will receive $3,000 to $5,000 grants and expert consulting as part of a pilot program. The Retail Alliance is using a $100,000 Virginia Business District Resurgence grant from the Virginia Department of Housing and Community Development to help existing businesses in Phoebus. Eleven businesses applied, and judges selected five: Art Central Gallery, Happy Hempo, Palace Jewelers, SeeWhich Books and Sly Clyde Ciderworks. (Inside Business)
A veteran-led and -owned venture capital firm is relocating its corporate headquarters from Knoxville, Tennessee, to Tysons to be closer to the types of startups it targets for investments: national security contractors led by one or more veterans. Veteran Ventures Capital is set to take up office space in the Boro Tower on Broad Street, steps away from the Greensboro Metro station and Tysons Galleria. Derren Burrell, founder and managing partner of the firm, will return to the region after doing several tours during his 20-year career with the U.S. Air Force. He joins Josh Weed, a general partner of the firm already based in Northern Virginia. (DC Inno)
Rural Southwest and Southside Virginia are in line for a new six-figure grant for entrepreneurship, the Virginia Innovation Partnership Corp. announced March 21. The innovation partnership, which held its board meeting at the New College Institute in Martinsville, gave word that it will commit $100,000. That’s the latest grant in a series that the partnership has awarded within the region over the past couple of years. (Cardinal News)
Executive Insights: Cargo convo
Leaders from Virginia’s maritime sector share their views on offshore wind, supply-chain challenges, workforce recruitment and other factors impacting the industry.
JEREMY BRIDGES
President and chief negotiator, Hampton Roads Shipping Association
Norfolk
VB: You were vice president of labor relations for CMA CGM. What labor issues do you see arising in the next few years, especially in Hampton Roads?
Bridges: The global labor movement is more organized and energized than in decades. Like many places worldwide, Hampton Roads will see workers seeking significant increases in wages, benefits, protections against technology, and improvements to the quality of life to further solidify longshore work as some of the best blue-collar work in the commonwealth.
VB: How will the burgeoning offshore wind industry change the shipping industry?
Bridges: Specifically for HRSA, the unloading, loading and assembly of windmill components at Portsmouth Marine Terminal translates to more work for our International Longshoreman’s Association workforce. This also includes opportunities for workforce skills expansion and training on new methods of operation and new cargo-handling equipment. My vision for the Hampton Roads Shipping Association is to be a modern organization with the most skilled and best-trained workforce on the East Coast; offshore wind operations provide another avenue to reaching that goal. Moreover, diversifying the cargo mix and types of operations in the Port of Virginia adds benefits to the Hampton Roads maritime community as we are better trained and more skilled, improving the value proposition to the existing and prospective shipping lines calling our port.
VB: What’s one thing that would really change the maritime industry in the next five years?
Bridges: The proliferation of artificial intelligence will undoubtedly be a big part of the industry conversation over the next five years. Getting it right in this space is of the utmost importance. There are a variety of potential shipping industry applications, affecting a wide range of things from a regulatory standpoint, workforce management, training and operations. Finding a fair and responsible way to incorporate this while bringing our union partners along is critical to our collective success.
CAPT. JANET DAYS
Commander, Naval Station Norfolk
Norfolk
VB: In addition to military personnel, you have more than 50,000 civilian employees at the base. What’s the biggest challenge in hiring and retaining qualified civilians?
Days: One of the biggest challenges which I am certain even the civilian sector faces is remaining competitive in an environment with limited resources. Individuals have choices, and we have to be certain we are adequately compensating them and offering positions with growth potential. I think the best way we can help mitigate any hiring or retention issues is to ensure our employees feel valued and also provide them a path forward so they can continue to grow within our organizations.
VB: What do you think is important in keeping the Navy and the larger community connected?
Days: I think it is all about access. It is so important for our local community members to know and understand what occurs on Naval Station Norfolk and all our other Hampton Roads installations. One way we try to provide this access is opening our gates to Norfolk and Portsmouth public school districts for STEM Day and to the general public for Fleet Fest each year.
There is nothing like seeing firsthand the amazing work our sailors and civilians do on a daily basis. This certainly may inspire them to fill roles in the military, our civilian jobs or other maritime jobs in the region. Everyone can mark their calendars now for Fleet Fest 2024, which will take place on Oct. 19.
VB: What is one thing that you think will challenge or benefit the base in the next five years?
Days: Along the theme of community engagement/outreach, I think just continuing to foster the community relationships is going to be imperative. There are so many mutually beneficial partnerships that the installation and community can initiate or continue. I believe that is going to be hugely beneficial.
JAMES DURFEE
Vice president of business transformation, Riverside Logistics
Richmond
VB: What’s the biggest misconception about supply chain issues?
Durfee: The shipping community seems to have a short memory and forgets that everything that is currently happening has happened before. Another misconception I run across repeatedly is that the dynamics of one market apply to all markets; they don’t.
VB: You’ve spent more than 30 years in the logistics and supply chain industry. How have you seen the industry change?
Durfee: Technology. At Penn State, my alma mater, the business logistics school didn’t require computer science as a class. In today’s world, technology is the key to almost everything in the supply chain. Another area of change is the quality of people in the field. Early on, people with degrees in logistics were few and far between; most came from other disciplines and just fell into supply chain roles. Now most come from supply chain curriculums right into our space. That’s a good thing!
VB: When you taught at the University of Richmond, what lessons did you pass along to your students that would be valuable to others interested in logistics careers?
Durfee: First, logistics has a broad application across our economy. Roughly 10% of the United States’ gross domestic product is spent on logistics-related stuff. Logistics permeates the entire economy. That means there are a lot of great roles out there for logistics majors, and these roles are impactful to the companies hiring them. The width and breadth of those roles is phenomenal. You can easily find a niche that makes the most of your skill set. The other thing is that the environment has changed dramatically from highly regulated (public) to highly deregulated (private) over the years, which has also created many opportunities for logistics students.
WILL FEDIW
Senior vice president, Virginia Maritime Association
Norfolk
VB: The past four years has been a busy and rocky time with the pandemic and supply chain problems. Have you had to adjust your priorities based on VMA members’ needs?
Fediw: I would say that regardless of what’s happening around the globe or in the market, their overall needs remain the same — being better connected, better represented and better informed about what’s going on so that they can adapt and capitalize on any given situation. Recent years and disruptions have validated the need for a trusted, longstanding association that can pivot quickly and educate decision-makers on threats and opportunities.
VB: What is your view on the proposed Southwest Virginia inland port promoted by state legislators from the region?
Fediw: Over the past several years we’ve successfully advocated for multimillion-dollar investments from the commonwealth for dredging and terminal infrastructure projects, ensuring that our port can receive the largest vessels in the world and service them quickly and efficiently.
Another area of focus is “outside the gate,” ensuring that cargo can quickly transit inland to the market. The key stakeholders involved in the potential inland port in Southwest Virginia are thoughtfully planning to ensure that the timing and market conditions are there for a successful investment. Overall, it has the potential to open new capacity and fluidity to better serve and attract port customers and adjacent economic development.
VB: How did the cancellation of Siemens Gamesa’s blade production plant in Portsmouth affect Hampton Roads’ prospects as a wind energy hub?
Fediw: While it was disappointing to see the blade facility cancellation, the market continues to demonstrate that we’re the premier offshore wind hub for the central Atlantic region. There are several major investments in the works that could bring new offshore wind-related manufacturing capabilities to our region that are independent of any specific offshore wind project, further validating that Virginia is a strategic area to expand and grow because of who we are as a state and what we have to offer.
TRACY GREGORIO
CEO, G2 Ops; assistant treasurer, Virginia Maritime Association board
Virginia Beach
VB: Obviously, military cybersecurity is a major issue these days — what has been the biggest challenge for G2 Ops so far, and what do you anticipate will be a major factor in the future?
Gregorio: Securing adequate funding and resources through a federal defense authorization bill is crucial for cybersecurity. Without it, we’re not just pausing but losing ground against unseen cyberthreats. Timely financial support is essential to stay ahead. Temporary funding measures also disrupt contract management and the deployment of sophisticated technical solutions.
VB: You’re also the cybersecurity committee chair of the Virginia Ship Repair Association. How significant is the Biden administration’s cybersecurity executive order regarding Chinese-made shipping cranes?
Gregorio: The Biden administration’s order on Chinese cranes highlights the need for secure supply chains and infrastructure. At the Virginia Ship Repair Association, we’re guiding members to protect data and operational technology. Cultivating a culture of cybersecurity awareness at all organizational levels is our goal.
VB: A lot of maritime businesses in Virginia are working hard to hire and retain skilled employees. How is it going for your business, and where are your employees coming from?
Gregorio: Our success lies in fostering innovation, continuous learning and development. Our team, comprising cybersecurity, engineering, cloud technology and AI experts, comes from veterans, local talent and college recruits. This keeps us technologically advanced.
VB: Where do you hope to see G2 Ops in the next 10 years?
Gregorio: G2 Ops aims to lead in securing maritime operations globally, expanding our cloud computing, cybersecurity, AI and digital engineering leadership. We’re focused on delivering cost-effective, timely and high-performance solutions. Investing in technology and strengthening partnerships, we aim to be the preferred partner for secure, advanced maritime operations.
MIKE HOPKINS
Managing director, Fairwinds Landing
Norfolk
VB: Siemens Gamesa canceled its $200 million project in Portsmouth, and expenses are growing in the U.S. offshore wind industry. How does Hampton Roads become an offshore wind hub in this environment?
Hopkins: Perseverance and focus. Offshore wind in the United States is a nascent industry starting out on the heels of a pandemic. There will be challenges and delays we must overcome because the need for renewable sources of electricity will only increase. Hampton Roads has many long-term competitive advantages over other East Coast locations to attract offshore wind companies seeking robust port infrastructure, which is in short supply and high demand.
Hampton Roads has a strong maritime workforce, a central location with deep water and no air draft restrictions, large existing terminals that are being upgraded more economically than competing ports, and a great quality of life. In a long-term, apples-to-apples comparison, Hampton Roads is a hands-down better value for offshore wind companies. Hampton Roads must play to its strengths and continue to drive collaboratively towards its objective of being an offshore wind hub.
VB: What is Fairwinds Landing’s role in the logistics, shipbuilding and offshore wind industries, and where do you see it in five years?
Hopkins: Fairwinds Landing’s role is to provide a robust, multifunction marine terminal to enable growth in key pillars of the Hampton Roads economy — shipbuilding, offshore wind and waterborne logistics. In five years, Fairwinds Landing will be a fully rebuilt facility for bustling maritime operations employing hundreds of local residents with good-paying jobs.
Fairwinds Landing will be contributing to national security by expanding the shipbuilding industrial base for nuclear aircraft carriers. Fairwinds Landing will be promoting renewable energy by providing a long-term home for offshore wind maintenance operations and manufacturing. And Fairwinds Landing will be supporting efficient supply chains for heavy lift and project cargoes. Simply put, Fairwinds Landing will be looking like an ideal location for maritime companies seeking great waterfront infrastructure to grow their businesses.
Virginia 500 Spotlight: ERIK H. NEIL
FIRST JOB: Busboy at Washington Golf & Country Club in Arlington
HOBBY/PASSION: Traveling, especially to Italy
HISTORIC PERSON I WISH I COULD MEET: [Chrysler Corp. founder] Walter Chrysler, who created this great collection and gave it to the people
FAVORITE SPORTS TEAM: Princeton Tigers basketball
RECENT BOOK READ: “Stay True: A Memoir,” by Hua Hsu
WHAT I’VE LEARNED: Trust, but verify.
SOMEWHERE I’D LIKE TO VISIT: Mexico City
WHAT SPARKED MY CAREER PATH: I visited the Smithsonian museums in Washington, D.C.
DID YOU KNOW? Beatles legend Paul McCartney’s photography exhibit, “Paul McCartney Photographs 1963-64: Eyes of the Storm,” made the second stop on its global world tour and its U.S. debut at the Chrysler from December 2023 through early April. The exhibition of about 250 photos taken by McCartney during the height of Beatlemania attracted about 60,000 visitors to the museum, some from as far as California. The next stops for “Eyes of the Storm” are New York’s Brooklyn Museum, then Tokyo and Portland, Oregon.
FOR THE RECORD May 2024
CENTRAL VIRGINIA
Richmond-based Atlantic Union Bankshares completed its acquisition of Danville-based American National Bankshares, parent company of American National Bank and Trust, on April 1. Based on the $35.31 per share closing price of Atlantic Union common stock on March 28, the transaction value was approximately $507 million. The deal was announced in July 2023, and in February, the Federal Reserve’s Board of Governors approved the acquisition. Under the terms of the merger, American National shareholders will receive 1.35 shares of Atlantic Union common stock in exchange for each share of American National common stock, with cash paid in lieu of partial shares. (VirginiaBusiness.com)
The City of Richmond intends to change the financial structure of the planned new Minor League Baseball stadium for the Richmond Flying Squirrels at the Diamond District in a move that would cut costs by about $200 million but would shift the financial risk to the city and its taxpayers. In a plan that City Council heard on April 8, city officials propose issuing general obligation bonds backed by the city rather than creating a community development authority to issue bonds. If the project fails to generate the expected revenue, however, Richmond would have to pay off the debt. (Richmond Times-Dispatch)
The Hanover County Board of Supervisors approved permits and rezoning for a 1,200-acre data center park on March 27. Denver-based developer Tract is planning a tech park for data centers on Hickory Hill Road, northeast of Ashland, that would have between 30 and 38 buildings. Based on county projections, the park would provide an estimated $40 million in tax revenue per year over the first five years. The 20-year estimate is almost $1.8 billion in tax revenue. The development faced opposition from residents in Ashland and the county’s Beaverdam District. (Richmond Times-Dispatch)
Five developers are vying for the opportunity to build a casino in Petersburg, including a partnership between Cordish Cos. and NFL Hall of Famer Bruce Smith. Other contenders are Bally’s, Penn Entertainment, Warrenton Group, and Rush Street Gaming, which operates the Portsmouth Rivers Casino. As of mid-April, the city was waiting on the General Assembly to decide whether to allow a referendum to take place in 2024 or 2025. (VirginiaBusiness.com)
Tucker Door & Trim, a Georgia-based manufacturer and distributor of doors, windows and specialty millwork for the construction industry, was set to open its first facility in Virginia on April 1, creating 50 jobs, according to a March 20 announcement from Gov. Glenn Youngkin. The company is investing $10 million in a Henrico County manufacturing and assembly facility for fiberboard and fiberglass doors and windows, aimed at increasing production for clients in the Northeast United States. The facility at 2700 Distribution Drive adds to Tucker Door & Trim’s two facilities in Georgia serving wholesale customers. (VirginiaBusiness.com)
Chronic understaffing, misplaced letters and packages and a poorly executed transition to a regional postal hub are among the critical issues plaguing Richmond’s main mail processing facility, according to an audit from the U.S. Postal Service released March 28. In July 2023, Richmond’s mail processing center in Sandston became the first in the U.S. to transition from a local to a regional postal hub as part of the U.S. postmaster general’s 10-year modernization plan. Around that time, Richmond residents began reporting widespread issues with mail delivery. The report included 10 recommendations for the facility to improve, and USPS agreed to nine of them. (Axios Richmond)
EASTERN VIRGINIA
Federal investigators are looking into whether Norfolk-based Sentara Health’s insurance subsidiary misled regulators when it drastically increased premiums in Hampton Roads and areas across the state in 2018 and 2019, according to court documents. Sentara Health Plans, then known as Optima Health, announced in 2017 it was increasing 2018 premiums in Hampton Roads by an average of 81% for its individual plans. Anthem Blue Cross Blue Shield pulled out of the marketplace for the 2018 Affordable Care Act open enrollment period in Hampton Roads, leaving Sentara as the only game in town. The U.S. government is investigating whether Sentara unfairly increased those premiums as it earned more than $655 million in federal subsidies.
(The Virginian-Pilot)
The Virginia Department of Transportation says the Hampton Roads Bridge-Tunnel expansion project will now be completed in 2027. The new end date is part of a renegotiated deal VDOT reached with the construction company tasked with the project, the agency announced March 28. Officials have been meeting with the construction company on the project since 2022, when Hampton Roads Connector Partners told VDOT it “encountered unforeseen cost and schedule impacts since signing the contract in 2019,” according to a news release. The costs of building materials rose sharply during the pandemic, though costs are expected to stabilize this year. (WHRO)
An anonymous William & Mary alumna donated $30 million to renovate and rename a building in honor of former U.S. Secretary of Defense Robert M. Gates, currently the university’s chancellor. According to a March 20 university announcement, Robert M. Gates Hall will house three academic centers: the Global Research Institute, the Institute for Integrative Conservation, and the Whole of Government Center of Excellence. The currently vacant Brown Hall on W&M’s Williamsburg campus will be renovated into Gates Hall, a LEED-certified facility. (VirginiaBusiness.com)
Virginia Beach-born-and-bred entertainment superstar Pharrell Williams will film a movie this spring and summer in Virginia based on his childhood, Gov. Glenn Youngkin announced April 5. There had been rumors about the musical film project, “Atlantis,” in movie trade publications, but Youngkin confirmed the feature is being made in Central Virginia and Hampton Roads. It will be co-produced by Williams, who grew up in Virginia Beach’s Atlantis Apartments housing project. The film is set in summer 1977 in a neighborhood inspired by Atlantis, although it’s a fictionalized account based on the 51-year-old Williams’ life. (VirginiaBusiness.com)
PEOPLE
Jason R. Davis became president and CEO of Norfolk-based law firm Kaufman & Canoles on April 1. Davis, who has been with Kaufman & Canoles since 1997, succeeds William R. Van Buren III as president. Van Buren served as the firm’s president and chairman for 16 years and will remain chairman. Davis has been a member of the firm’s executive committee and co-chairs its health care team. In his practice, he represents and advises hospitals, physicians, long-term care facilities and other health care providers. Davis holds a bachelor’s degree from the University of Virginia and a law degree from William & Mary Law School.
(VirginiaBusiness.com)
G. Glenn Oder is retiring as executive director of the Fort Monroe Authority in October, the authority announced March 29. Oder has led the FMA for the past 12 years after leaving the General Assembly, where he served as a state delegate from 2002 to 2012, representing the 94th District in the House of Delegates. With Oder’s departure, the executive director role will be retitled to CEO, effective July 1. (VirginiaBusiness.com)
NORTHERN VIRGINIA
Arlington County and the Washington Capitals have started talks about potential improvements to the MedStar Capitals Iceplex, the NHL team’s practice facility and headquarters in Ballston. The 18-year-old, 137,000-square-foot county-owned facility also is open to the public and serves as the home ice for college, high school and beer league hockey teams. As of April, discussions were “in the early stages,” and there was “no timeline” for any potential decisions or actions, according to Sergey Kocharov, the Capitals’ head of communications. (ARLnow)
Metro is opening the door to new development on Alexandria’s Eisenhower Avenue corridor, offering roughly half an acre adjacent to the transit agency’s newest office building for a residential or commercial project — or a combination of the two. The Washington Metropolitan Area Transit Authority issued a request for proposals March 28 seeking a developer to ground lease, design and construct a project totaling as much as 300,000 square feet at 2403-2414 Mill Road. The half-acre lot is less than a third of a mile from the Eisenhower Avenue Metro station and Is used for temporary surface parking. (Washington Business Journal)
Monumental Sports & Entertainment CEO Ted Leonsis and Washington, D.C., Mayor Muriel Bowser reached a deal in late March to keep the Washington Wizards and Capitals NBA and NHL teams in the District of Columbia through 2050, effectively ending all negotiations to relocate the teams to Alexandria. Gov. Glenn Youngkin had touted the $2 billion arena proposal announced in December 2023 as possibly creating 30,000 jobs and $12 billion in economic activity for the state, but Senate Democrats blocked a vote on legislation that would have established a state authority to own the property and buildings in Alexandria. (VirginiaBusiness.com)
OmniRide, the bus service overseen by Potomac and Rappahannock Transportation Commission, is facing a $16 million budget shortfall in Prince William County, unless the county can afford a steep subsidy increase sought by the bus system for the budget year beginning July 1. PRTC is subsidized in Prince William through a motor fuel tax that is projected to bring in not nearly enough to cover the $33 million the transit agency is requesting from the county. OmniRide will be forced to cut service if it can’t secure local funding to offset its rising costs. Prince William supervisors acknowledge the county’s need for robust bus service, but in early April, they expressed skepticism they can afford to pay the amount OmniRide is seeking, particularly amid inflation and the drying up of pandemic relief funds. (InsideNoVa)
Deshundra Jefferson, chair of the Prince William County Board of Supervisors, applied pressure on members to raise taxes substantially on data centers, as the board barreled toward approval of next year’s budget. Data centers currently pay a rate of $2.15 per $100 of assessed value on computers they possess, and Jefferson, a newly elected Democrat, is likely to have the votes to pass an increase to $3.70, the maximum allowed under state law. The board is expected to finalize the budget April 23, and it will go into effect July 1. (InsideNoVa)
Tysons-based developer Cityline Partners and Fairfax County planning commissioners hit a stalemate in April over inclusion of workforce-affordable housing in Cityline’s proposed high-rise, which would be part of the developer’s Arbor Row project on 19.4 acres near Tysons Galleria, joining two completed residential buildings. Commissioners opted to postpone a vote in April on the 23-story residential tower at Arbor Row after county staff voiced objections to the developer’s refusal to include workforce-affordable units in the new building. (FFXNow)
ROANOKE/NEW RIVER VALLEY
After approving two solar farms in the past few years and last month denying the largest proposal yet, the Amherst County Board of Supervisors unanimously adopted an update to its utility-scale solar zoning rules March 19. The revised ordinance caps utility-scale solar operations at 50 acres under panel, a measure intended to limit the operations’ scope. At the joint meeting, the Amherst County Planning Commission recommended approval of the ordinance with an added measure to cap 10 megawatts of solar-generated power, but supervisors opted to not include that action. (Amherst New Era-Progress)
Freedom First Federal Credit Union is discontinuing its basic personal checking account, this month notifying more than 20,000 account holders of the change that took effect May 1. The switch makes Freedom First the only major credit union in the Roanoke Valley that would collect monthly fees if account holders don’t maintain a certain balance or have a certain amount of regular paychecks. Under one checking account option, residents must keep a minimum average daily balance of $2,500 or risk a $7 monthly fee. (The Roanoke Rambler)
Roanoke-based Luna Innovations is in danger of losing its place on the Nasdaq due to transaction questions that led the company to withhold its annual report. Luna, which makes and distributes fiber-optic sensing and monitoring technology, announced last month that it was indefinitely delaying its fourth quarter and annual reports after it discovered transaction discrepancies. Luna is no longer in compliance with the stock market’s rule requiring companies to file reports in a timely manner to the federal Securities and Exchange Commission, according to a letter from Nasdaq’s Listing Qualifications Department. (Cardinal News)
Pulaski County will become the owner of a raceway and a historic Minor League Baseball stadium after the properties’ current owner, Christiansburg-based Shelor Motor Mile, donates them to the local government. The donation is the largest gift the county has ever received, according to a statement. The speedway, officially named Pulaski County Motorsports Park, is a 152-acre property located in Fairlawn, while Calfee Park is a 3,200-seat stadium in the town of Pulaski. (The Roanoke Times)
UPS is cutting a daytime package sorting shift at a Roanoke facility, affecting 153 employees. Day-shift employees at the customer center at 3941 Thirlane Road NW by the Roanoke-Blacksburg Regional Airport “will be separated from employment, unless otherwise required by the applicable collective bargaining agreement” by June 3, according to an April 3 letter from the Atlanta-based shipping company to Virginia’s Rapid Response state coordinator. The letter cites a “reduction in volume” and said 120 part-time hourly employees, seven full-time hourly employees, 22 part-time management employees and four full-time management employees will be affected. (Cardinal News)
PEOPLE
Roanoke County’s former assistant director for economic development, Danielle Poe, started her new job as director of economic development for Franklin County on April 15. At Roanoke County, Poe was responsible for real estate development, business retention and expansion and key community partnerships. She succeeds Beth Simms, who left the Franklin County post in October 2023 after more than two years to become Patrick County’s administrator. Poe is the 2024 chair of Leadership Roanoke Valley and is a Radford University alumna. (VirginiaBusiness.com)
SHENANDOAH VALLEY
American University announced on March 18 that James Madison University President Jonathan Alger will be its next president, starting July 1. Alger joined the Harrisonburg public university in 2012. He will be the 16th president of AU, a private university in Washington, D.C., replacing President Sylvia Burwell. During his tenure, JMU more than doubled its endowment, received R2 research classification from the Carnegie Commission on Higher Education and joined the FBS level in NCAA Division I football. Alger also launched the Valley Scholars program, which provides scholarships for first-generation students from the Shenandoah Valley. (VirginiaBusiness.com)
Bridgewater College will receive a $250,000 grant from The Mary Morton Parsons Foundation if the college matches the amount in cash and pledges by November, the college announced in mid-May. The matching grant from the private foundation would help fund the $8.5 million renovation of Bowman Hall, which was built in 1952 and 1953. The renovation started last spring and is set to end in August. Bridgewater College previously received a $250,000 Mary Morton Parsons Foundation grant in 2018, although that grant was a two-to-one challenge. Bridgewater College used the funding to renovate and expand its Mack Library into the John Kenny Forrer Learning Commons. (Daily News-Record)
Strasburg-based First National entered into a definitive merger agreement to acquire Prince George-based Touchstone Bankshares in an all-stock transaction worth approximately $47 million, First National announced March 26. The parent companies’ merger combines community banks First Bank and Touchstone Bank to create a bank with expected total assets of about $2.1 billion, $1.5 billion in loans and $1.8 billion in deposits. The resulting company is expected to be the ninth largest Virginia community bank by deposits and will have 30 branch offices across Virginia and two branches in North Carolina. (VirginiaBusiness.com)
HP Hood, a nationally branded dairy processor, will invest more than $83.5 million to expand operations at its Winchester-area facility in Frederick County, Gov. Glenn Youngkin announced April 9. The project includes upgrades to production and packaging equipment as well as construction of additional warehouse and cooler space. HP Hood’s expansion will provide increased production capacity that will fund technology allowing Hood to offer new products, according to a news release. Constructed in 2000, the Winchester-area facility employs more than 600 workers. In 2013, HP Hood invested $84.6 million to expand the operation, increasing ultra-high temperature production capacity. (VirginiaBusiness.com)
Kraft Heinz plans to invest an estimated $26 million in its Frederick County plant to lower carbon emissions, part of the up to $170 million in federal funding the company is receiving from the U.S. Department of Energy. The department selected Kraft Heinz to receive the funding for implementing clean energy projects on March 25. The Chicago- and Pittsburgh-based company operates a manufacturing facility in the Fort Collier Industrial Park, located north of Winchester at 220 Park Center Drive, where it produces Capri-Sun and Kool-Aid beverages, among other food products. Kraft Heinz will install heat pumps, electric heaters and electric boilers at 10 facilities. (The Northern Virginia Daily)
Winchester City Council unanimously approved a rezoning request on March 26 from Winchester Acquisition Partners, advancing the investment group’s plans for a mixed-use redevelopment of Ward Plaza. The declining shopping center built in the 1960s sits on 22 acres in the 2200 block of Valley Avenue. Winchester Acquisition Partners, headed by McLean-based John. W. “Wes” Gray Jr., plans to build 453 residential units, offices, a grocery store and other retail stores. The investment group needs the council to approve site and subdivision plans and to obtain required building permits before it can begin construction. (The Winchester Star)
SOUTHERN VIRGINIA
A new aviation training center at Danville Regional Airport is one step closer to reality. The Danville Planning Commission voted 6-0 during its April 8 meeting to recommend granting a waiver of yard setback requirements so the project could move forward. A proposed 12,532-square-foot hangar will be the location of the new Danville Aviation Training Facility. Danville Community College’s aviation maintenance technology program and Averett University’s aeronautics program will use the training facility. (Danville Register & Bee)
Chicago-based Foresight Health, the company that purchased the long-shuttered Pioneer Community Hospital in 2022 from Patrick County Real Estate, sold the property March 12 after its plan to reopen it as a critical access facility collapsed. According to a deed filed at the Patrick County Circuit Court clerk’s office, Foresight sold the 10-acre property in Stuart to Chicago-based Wolf of Wabash for $1.6 million. Foresight has entered into an agreement with the new owner to lease back the property and use the proceeds of the sale to modernize the building and open a behavioral health and substance abuse program. (Cardinal News)
A project that will bring 69 apartments to downtown Martinsville has received another financial boost from the state. A $2.8 million grant from the Industrial Revitalization Fund, announced March 29 by Gov. Glenn Youngkin, will help pay for planned renovations at the One Ellsworth development, a construction project that will turn a former BB&T bank building into affordable housing. Developer JRS Realty is currently working to remove asbestos from the building, which was constructed in 1974. (Cardinal News)
Matt Penning, director of development for Reston-based Milestone Towers, a wireless tower developer, made a presentation at the April 8 Patrick County Board of Supervisors meeting. The company has signed a lease with Verizon for a cell tower on Patrick County High School property, according to Penning. Three other carriers could be hosted by the proposed 199-foot-tall tower. A supervisor noted parents are concerned about safety of children participating in extracurricular activities near the proposed tower. The board voted to table any action until its next meeting. (Martinsville Bulletin)
Thunder Road Harley-Davidson and South Boston Speedway have signed a new sponsorship agreement that will have the Danville-based Harley-Davidson motorcycle dealership continue as the title sponsor for the speedway’s showcase pre-Fourth of July NASCAR Late Model Stock Car Division event for the next three years. The Thunder Road Harley-Davidson 200 on June 29 is the opening race of the Virginia Late Model Triple Crown. This season marks the 11th year Thunder Road Harley-Davidson has sponsored the event. (Danville Register & Bee)
A new dual-branded hotel under Hilton’s Tru and Home2Suites brands was approved by Danville City Council April 2. Council members voted 9-0 to grant a special-use permit for a waiver allowing RMS Investments in Raleigh, North Carolina, to exceed the city’s 50-foot height limit so it could build a hotel that would employ about 30 people at 1080 Riverside Drive. The new hotel will be 53 feet tall. (Danville Register & Bee)
The Virginia Museum of Natural History will soon unveil its largest addition since the facility opened in Martinsville in March 2007. Construction of the Jean S. Adams Education Pavilion, a 1,221-square-foot, three-season, open-air programming and visitor area, is currently underway, with completion anticipated this summer. The museum is currently leading a public campaign to raise funds for the first-ever life-sized model of Pelagornis sandersi, the prehistoric bird with the largest known wingspan — about 20 to 24 feet. (Martinsville Bulletin)
SOUTHWEST VIRGINIA
The Appalachian Regional Commission awarded Washington County $100,000 to improve broadband service on the Virginia Creeper Trail and Mendota Trail, according to a March news release from U.S. Rep. Morgan Griffith’s office. The funding, with a $130,000 local match, will help the county offer 100 Mbps/20 Mbps download/upload speeds along the two trails. The county and an engineering firm will develop coverage studies and research how best to deploy broadband fiber before moving onto design, construction and deployment, which should be finished by the end of 2024. (Cardinal News)
The Breaks Interstate Park Commission received a $300,000 Abandoned Mine Land Economic Revitalization program grant to add a swimming pool to the Breaks water park, the Virginia Department of Energy announced March 26. Adding the pool is expected to increase visitation for the water park, which draws 12,000-plus visitors each season. Scheduled to open Memorial Day weekend, the new pool also is expected to increase annual revenue by nearly $100,000 and to create five to seven seasonal jobs. Breaks Interstate Park’s annual revenue is more than $3 million, and the park has 10 full-time employees and 85 seasonal workers. (News release)
Emory & Henry College officials are planning a restructuring to reduce the school’s budget that will likely require small reductions in faculty, staff and programs over the next three years, Jennifer Pearce, E&H’s vice president for external affairs, said April 8. The number and positions that could be impacted, as well as the timing of layoffs, aren’t known, although the college will likely make a decision on the numbers by the end of June. John Wells, president of the 188-year-old private liberal arts college, spoke to the college’s board of trustees about the restructuring in late March. (Cardinal News)
A 95-room Hampton Inn in Norton opened April 12, although officials were still planning a grand opening ceremony as of early April. SAI Properties announced in early October 2023 that it would open the Hampton Inn in the previously vacant building on the corner of Park Avenue and 11th Street. From 2002 to about 2019, the building was the Norton Holiday Inn. The Hampton Inn includes a spa, a meeting/event space, a pool and a fitness center. According to hotel official Vik Kshirsagar, the hotel has only exterior work remaining. (The Coalfield Progress; Kingsport TimesNews)
In a March 21 meeting, the Virginia Coalfield Economic Development Authority approved two loans and one grant for projects in Buchanan, Russell and Wise counties with the potential to cumulatively create 107 full-time jobs and 40 additional construction-related jobs. The Buchanan County Industrial Development Authority will receive an up to $2.214 million loan to help with the construction and development of an office building at the Southern Gap development. VCEDA approved an up to $500,000 loan to the Russell County Industrial Development Authority for an unannounced project. VCEDA also awarded an up to $186,091 grant to Mountain Empire Community College for workforce development and training. (Bristol Herald Courier)
Abingdon-based Virginia Highlands Community College and Bristol, Tennessee-based King University partnered on an agreement to streamline admissions and coursework for students progressing in the registered nurse to bachelor of science in nursing degree pathway, the schools announced April 3. Under the agreement, VHCC students who are earning associate degrees in nursing and have registered nurse licenses are guaranteed admission to King’s RN-BSN program, which is fully online. Students with qualifying grades of C+ or better will be classified as juniors, and candidates can then complete King’s RN-BSN program in three semesters, rather than four. (News release)
Crisis in Baltimore
Since the March 26 container ship collision that collapsed the Francis Scott Key Bridge in Baltimore, ships previously bound for the Port of Baltimore have been diverted to other ports, including the Port of Virginia.
The Singapore-flagged container vessel Dali hit the Key Bridge at about 1:30 a.m. March 26 after issuing a mayday following an onboard power outage. The Dali, chartered by Maersk, had previously called at Virginia International Gateway’s terminal and left March 22 for Baltimore, its next scheduled port of call. Six road construction workers were killed in the accident.
Baltimore’s port was closed to ships after the bridge collapsed, with supply chain experts warning it could have a major impact on East Coast trade. In early April, the Port of Baltimore opened temporary shipping lanes to accommodate smaller boats and essential cargo. The U.S. Army Corps of Engineers Baltimore District planned to open a limited access channel for larger vessels by late April and restore full service to the port’s main navigation channel as soon as late May.
According to Rachel Shames, vice president of pricing and procurement for CV International, a Norfolk-based international logistics and transportation company, the collision was expected to create a temporary increase in cargo volume at other East Coast ports, including Norfolk’s terminals.
“It’s likely that nearby East Coast ports, including Norfolk, Philadelphia, New York and others will absorb cargo traffic from Baltimore in the short term,” she wrote. “This sudden increase in volume may strain operations at other ports.”
As National Transportation Safety Board investigators looked into the cause of the crash in late March, the Biden administration pledged federal support to rebuild the bridge, calling on Congress to authorize billions of dollars in funding likely needed for the bridge’s replacement, an undertaking that could take at least a year.
In an interview with Virginia Business, Shames said that the impact of the port’s temporary closing “could end up rippling down to Wilmington, [North Carolina], Charleston, [South Carolina], and Savannah, [Georgia],” although, she noted, “Norfolk is probably the most practical place to absorb most of the capacity. You want to keep the cargo that was supposed to go to Baltimore … as close as possible to Baltimore.”
Apart from the human toll, the port’s closure means a temporary stop to about $15 million a day in daily economic activity for Baltimore, and experts estimated that the ripple effect on railroads, distribution centers and trucking will also cost the city tens of millions of dollars.
Shames also noted that Baltimore’s port is the top U.S. port for the import and export of automobiles, light trucks, wheeled farm vehicles and construction machinery, which often move on specialized vessels.
The Port of Virginia’s Newport News Marine Terminal has facilities that accommodate vehicles, including ramps that allow workers to load and unload rail cars and ships, but not on Baltimore’s scale, Shames said.
“There is capacity at [Newport News Marine Terminal] … but not a lot, nothing like what Baltimore can do. It will not be as simple as just shifting. Unfortunately, I think we are going to be looking at congestion, and I just don’t know how long. That can mean delays for cargo [and] probably extra costs. It’s a ripple, a domino effect.”
As of early April, the Port of Virginia had received about 43% of all redirected container traffic from the Port of Baltimore, more than any other East Coast port, according to supply chain tracker Project44.
However, the increased traffic won’t impact the Port of Virginia’s service levels, Port of Virginia spokesman Joe Harris said. “This is a modern, 21st-century port that has a significant amount of experience in handling surges of import and export cargo.”
Top Five May 2024
The top five most-read daily news stories on VirginiaBusiness.com from March 13 to April 12 were led by news that Altria would sell a large portion of its stake in Anheuser-Busch InBev.
1 | Altria plans to sell 35 million Anheuser-Busch InBev shares
The Henrico County-based Fortune 500 tobacco manufacturer holds about 197 million shares, or about a 10% stake, in the world’s largest brewer. (March 13)
2 | Baltimore bridge collapse drives ships to Port of Virginia
After the deadly container ship collision that collapsed the Francis Scott Key Bridge, many cargo ships previously bound for the Port of Baltimore were diverted to the Port of Virginia. (March 26)
3 | Youngkin removes tax cuts, RGGI mandate in budget
Gov. Glenn Youngkin’s slate of 233 budget amendments removed language mandating Virginia’s participation in the Regional Greenhouse Gas Initiative. (April 8)
4 | Virginia real estate industry weighs in on $418 million Realtors settlement
In Virginia, industry experts took a measured response to news that a landmark industry legal settlement will change how Realtors set commission rates. (March 18)
5 | William & Mary receives $30 million anonymous donation
An alumna made the gift to renovate and rename a building in honor of former U.S. Secretary of Defense Robert M. Gates, the university’s chancellor. (March 20)
Port of Virginia
The Port of Virginia’s economic impact rose significantly in fiscal 2022, the most recent year for which data is available, moving up from $100.1 billion in output sales in 2021 to $124.1 billion, according to a report prepared by William & Mary’s Raymond A. Mason School of Business for the Virginia Port Authority. The port also produced 11% of total state employment, and direct export-related jobs and direct import-related jobs were up, respectively, 36% and 32%, compared to fiscal 2021. The Port of Virginia owns the Norfolk International Terminals, Portsmouth Marine Terminal, Newport News Marine Terminal and the Virginia Inland Port in Front Royal, and it leases Virginia International Gateway and Richmond Marine Terminal. In March, the port’s $450 million dredging project to widen its channels up to 1,400 feet was completed, and its deepening phase is set to be complete in late 2025. However, its cargo handling fell a bit in fiscal 2023, from 3.7 million TEUs (20-foot equivalent units) in 2022 to 3.4 million in 2023. The port’s cargo handling is likely to increase significantly this year, though, with ships bound for the Port of Baltimore diverted to Norfolk after the March 26 cargo ship Dali’s collision with Baltimore’s Key Bridge.
