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Virginia Business// March 30, 2022//
AutoZone Inc. plans to build a $185.2 million warehouse and distribution center in New Kent County, creating 352 jobs, Gov. Glenn Youngkin announced in February. The 800,000-square-foot facility will serve as the auto parts company’s East Coast distribution operation. Based in Memphis, Tennessee, AutoZone has more than 6,000 stores nationwide and reported $14.6 billion in sales in fiscal 2021. The deal includes a $2.5 million grant from the Commonwealth’s Opportunity Fund that former Gov. Ralph Northam approved to assist the county, and AutoZone is eligible for benefits from the Port of Virginia Economic and Infrastructure Development Zone grant program. (VirginiaBusiness.com)
Churchill Downs Inc. entered into an agreement to acquire Peninsula Pacific Entertainment LLC, the parent company of Colonial Downs Group and Rosie’s Gaming Emporiums, for $2.48 billion, Churchill Downs announced in late February. The acquisition is expected to close by the end of the year, although it is dependent on approval from the Virginia Racing Commission and similar entities in New York and Iowa. Pacific’s assets in Virginia include the Colonial Downs Racetrack in New Kent and six Rosie’s sites across the state, as well as The Rose, a $400 million gaming facility and hotel being built in Dumfries, set to open in late 2023. (VirginiaBusiness.com)
Massachusetts-based scientific equipment and software supply company Thermo Fisher Scientific Inc. will invest $97 million to expand its laboratory operations into three new locations in the greater Richmond area, a project expected to create more than 500 jobs, Gov. Glenn Youngkin announced in March. Two of the labs will be at the former Toys “R” Us store in western Henrico County, and the third will be at the VA Bio+Tech Park in downtown Richmond. (VirginiaBusiness.com)
The University of Virginia Foundation wants to add a massive new mixed-use development with up to 1,400 homes to its North Fork industrial park property in Albemarle County, but concerns about water infrastructure could stop it in its tracks. In February, the foundation requested a rezoning of 172 acres of its approximately 540 acres from Planned Development Industrial Park to Neighborhood Model Development, to allow residential, commercial and retail uses. The Rivanna Water and Sewer Authority, though, has expressed concerns around the size and timing of the project.
(The Daily Progress)
Virginia Commonwealth University received an unprecedented $104 million donation from Dr. Richard Todd Stravitz and his family’s Barbara Brunckhorst Foundation to support liver research, President Michael Rao announced in February. It’s the largest gift in VCU’s history and also believed to be the largest publicly shared gift to support liver research in the country. It will support the liver institute that VCU first announced in December 2021. The gift also establishes two endowed chairs for medicine and microbiology at the School of Medicine. Stravitz, whose maternal grandfather founded Boar’s Head Provisions Co. Inc., is a clinical professor at VCU and was medical director of liver transplantation at VCU Health’s Hume-Lee Transplant Center for a decade. (VirginiaBusiness.com)
Walgreens will invest $34.2 million to establish a micro-fulfillment center in Hanover County, a project expected to create 249 jobs, Gov. Glenn
Youngkin announced in late February. The 65,686-square-foot facility will be located at the Atlee Station Logistics Center and outfitted with automated machinery to allow a flexible operating model. Walgreens operates nearly 9,000 stores across the country and its territories, including 200 stores in Virginia, where it employs 4,600 people. The Virginia Economic Development Partnership worked with the county and the Greater Richmond Partnership to secure the project. (VirginiaBusiness.com)
Alarm.com announced in late February it will expand its technology research and development division at its Tysons headquarters, investing $2.6 million and creating 180 jobs, according to Gov. Glenn Youngkin’s office. The technology company already has several hundred workers in Virginia, and the expansion is expected to create additional engineering positions within its research and development division. Alarm.com was named to Fortune magazine’s list of 100 Fastest Growing Companies in 2021, and the company’s platform that integrates with a growing variety of Internet of Things (IoT) devices has more than 8.4 million subscribers. (VirginiaBusiness.com)
Reston-based Leidos Holdings Inc. won an $11.5 billion contract to consolidate and streamline the Department of Defense’s Fourth Estate information technology systems into one common network, the Pentagon announced in March. More than 380,000 employees comprise the Fourth Estate, the nickname for DOD’s nearly two dozen defense agencies and field activities outside the military services and intelligence community. Under the contract, the Fortune 500 government contractor is expected to unify the agencies on one Defense Information Systems Agency network, with a potential 10-year period of performance and a base ordering period through February 2026. (VirginiaBusiness.com)
Reston-based cybersecurity firm Mandiant Inc. has entered into an agreement to be acquired by Google LLC in an all-cash transaction valued at $5.4 billion, the companies announced in March. If approved, it would be Google’s second-largest acquisition ever, behind the $12.5 billion Motorola deal in 2012. When the deal closes later this year, Mandiant will join Google Cloud. (VirginiaBusiness.com)
The $1.9 billion, all-cash acquisition of Falls Church-based government contractor PAE Inc. by an affiliate of Maryland-based aerospace defense contractor Amentum Services Inc. closed on Feb. 15. Founded 67 years ago, PAE was acquired by Lockheed Martin Corp. in 2006, sold to two other owners, and then became a publicly traded company in 2020 on the Nasdaq. Following the sale, former PAE CEO John Heller was tapped as Amentum’s next CEO. He was set to take his new post March 28. (VirginiaBusiness.com)
Tysons-based broadcast and digital media giant Tegna Inc. will be acquired in a $5.4 billion cash deal by an affiliate of New York hedge fund Standard General LP, the company announced in February. Standard General is one of Tegna’s largest shareholders and will team up with New York-based private equity firm Apollo Global Management to buy the media company for $24 per share in cash, with the deal set to close in the second half of the year. Tegna, which owns 64 TV stations in 51 U.S. markets, said the deal has an enterprise value of $8.6 billion, including the assumption of debt. The company was created in 2015 after Gannett Co. Inc., the nation’s largest newspaper publisher, spun off its broadcast and digital media divisions. (VirginiaBusiness.com)
The Washington Commanders NFL team is considering three sites in Virginia for a new stadium, which would serve as the centerpiece to a vast entertainment complex, according to planning documents prepared for the project. The Ashburn-based team is considering options in Sterling, Woodbridge and Dumfries, sites all at least 27 miles from Washington, D.C., and only the Sterling site would be accessible by Metro, assuming the Dulles extension on the Silver Line opens. The state’s efforts to lure the Commanders to the commonwealth have intensified, coinciding with the franchise’s rebrand in early February. (The Washington Post)
Breeze Airways will expand flight offerings from Norfolk International Airport to Jacksonville, Florida; Los Angeles; Savannah, Georgia; and Las Vegas this summer. The new flights will range in price from $49 to $99 one-way, and increase based on customer comfort level. Breeze CEO David Neeleman said his company has five bases, including Norfolk. He says the expansion will also lead to more jobs. Breeze added flights to Long Island and Palm Beach, Florida, in February. (WAVY)
The most expensive Hampton Roads home sale on record happened in February for $9.5 million. A nearly 11,000-square-foot mansion on 3.7 acres overlooking Linkhorn Bay in Virginia Beach sold after about 18 months and was reduced from $11.8 million. The home features a saltwater pool, private sand beach and dock and was sold by former Virginia state Sen. and entrepreneur Jeff McWaters to Harbor Group International President T. Richard Litton Jr. (The Virginian-Pilot)
Demolition of the 65-year-old Ridley Place Housing Community in Newport News’ Southeast Community began in mid-February and is expected to take four months. The public housing complex will be replaced by a mixed-use, mixed-income development, including homes, commercial spaces, an early childhood center and a walking/biking trail and is part of a phased plan to revitalize the area. The $58 million Ridley project is funded by a $30 million grant from the U.S. Department of Housing and Urban Development’s Choice Neighborhood Initiative. The city devoted an additional $26.7 million of its American Rescue Plan Act dollars for the project. (Daily Press)
On Feb. 28, California-based Rocket Lab USA Inc. picked Wallops Island as the location to manufacture, assemble and launch its Neutron rocket, a move that’s expected to create as many as 250 jobs. A 250,000-square-foot complex will be built next to the NASA Wallops Flight Facility and Mid-Atlantic Regional Spaceport. Rocket Lab recently landed a $24 million contract from U.S. Space Force’s Systems Command in support of Neutron’s capability to aid national security and defense missions. (VirginiaBusiness.com)
Health care workers resigned in droves as the pandemic raged. During the past two years, Sentara Healthcare has spent more than $310 million on employee raises, benefits, gifts and other compensation to attract and retain workers. Bon Secours spent $100 million in 2021 on market adjustment pay increases and more than $87 million in bonuses related to the pandemic. Riverside Health System employees received a pay increase of up to 17% in January. Sentara says its actions led to a below average turnover rate of 14.5%, compared with a national average of 19.5%. (The Virginian-Pilot)
Former Virginia Beach Economic Development Director Warren Harris will serve no jail time after admitting to embezzling nearly $79,479 from city taxpayers during his 11-year tenure. Harris, who served from 2007 to 2018, was sentenced in Circuit Court in February and is required to repay the city. Among the expenses he charged was a 2018 trip to Spain. The city changed its policy allowing department heads to approve their own expenses after Harris’ resignation. (The Virginian-Pilot)
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Sentara Healthcare President and CEO Howard P. Kern announced his retirement from the Norfolk-based health system in early February. Kern worked in hospital administration, finance and insurance for Sentara for 42 years and has led the $9.8 billion system since 2016. Sentara was listed as one of the nation’s top five large health systems in the 2021 annual ranking by Fortune and IBM Watson Health. It employs more than 1,200 physicians and 30,000 other people. Kern said he would continue in his position until his replacement starts later this year; a search for a new CEO is underway. (VirginiaBusiness.com)
A new $11 million Lowe’s warehouse and distribution center is expected to create 70 jobs in Roanoke County, the project’s developer announced Feb. 7. Lowe’s Cos. Inc. has hired Roanoke-based Cherney Development, in partnership with North Carolina-based Samet Corp., to build a 60,000-square-foot distribution warehouse and distribution center on an 8.45-acre site in Roanoke County’s Valley TechPark. Construction is expected to begin in the next few months and be completed within about a year. (VirginiaBusiness.com)
The Mountain Valley Pipeline is facing what it calls “greater uncertainty” after losing two crucial permits and the confidence of one of its five corporate partners. Yet developers of the natural gas pipeline are not giving up, they said Feb. 22 in a conference call with financial analysts. “We’re all hands on deck to find the right path forward for MVP,” said Thomas Karam, chairman and CEO of Equitrans Midstream Corp., the venture’s lead partner. Mountain Valley, which had hoped to complete the often-delayed project by this summer, no longer expects that to happen.
(The Roanoke Times)
The location of the New River Valley’s proposed rail station has been narrowed to one of two sites, each of which are in proximity to the Uptown Christiansburg mall, based on work performed by the Virginia Passenger Rail Authority. The VPRA began a feasibility study this past fall to look at potential station locations in the New River Valley and then conducted a survey that ran from Dec. 22, 2021, to Jan. 31. Respondents’ general preferences were for the two Christiansburg mall sites. The start of the New River Valley service is not expected until at least 2025. (The Roanoke Times)
Virginia Tech leaders and donors broke ground Feb. 2 on the university’s $85 million, 100,000-square-foot Hitt Hall, which will house the Myers-Lawson School of Construction. The building, which is expected to be completed in spring 2024, will feature general assignment classrooms and a 600-seat multivenue dining facility. The Myers-Lawson School is a collaboration between the College of Architecture and Urban Studies and the College of Engineering. The Virginia Tech board of visitors approved funding for the hall in August 2021. W.M. Jordan Co. is the construction manager, and the building is designed to obtain
or exceed the LEED Silver certification. (VirginiaBusiness.com)
Officials from LewisGale Hospital Montgomery celebrated the groundbreaking of the facility’s new surgical wing Feb. 24 in Blacksburg. The hospital will add more than 7,500 square feet to its surgery department, including two new operating rooms, a 15-bed post-anesthesia care unit and additional storage space. Crews will also renovate 4,800 square feet of the existing surgery center. Construction is expected to finish in spring 2023. “What we’re trying to do is continue to stay with the community as it grows,” CEO Alan Fabian said. “We’re excited to provide services here at LewisGale Hospital Montgomery rather than have people travel outside of the area.” (The Roanoke Times)
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Roanoke College President Michael C. Maxey was elected chair of the Council of Independent Colleges’ board of directors, the council announced Feb. 7. Maxey joined the board in January 2018 and became vice chair for programs in 2021. Maxey, who has been with Roanoke College since 1985, announced in September 2021 that he would be retiring from his college presidency at the end of this academic year. He has served the longest of any Roanoke College president, having assumed the role in 2007. (VirginiaBusiness.com)
The Blue Ridge Rock Festival — an event that brought a record crowd of 33,000 people to Pittsylvania County in 2021 — is steering down the road this year to a new venue at Virginia International Raceway in Halifax County. The new location was officially announced Feb. 18 when tickets went on sale for the four-day festival set Sept. 8-11. The event will be the largest on record for the road racing course tucked away in rural Alton. (Danville Register & Bee)
A spot next to the Olde Dominion Agricultural Complex in Chatham could be a good fit for a new hotel, according to a feasibility study released in February. The hotel would have easy accessibility because of its location along U.S. 29 and provide good proximity to four airports, including those in Danville, Lynchburg, and Greensboro and Raleigh, North Carolina, according to the study performed by Horwath HTL, an Atlanta-based hospitality consulting firm. The ag complex brings in more than 100,000 visitors per year for a variety of events, and a hotel there would face no direct competition from Chatham. (Danville Register & Bee)
In late February, Danville announced it had been chosen to join an initiative led by the National League of Cities and commit to increase economic inclusion and resilience for communities of color. As part of the Southern Cities Economic Inclusion initiative, Danville joins 15 other cities in the Southeast that will receive up to $30,000 in grant funding and opportunities to learn from national experts and other cities. Economic inclusion strategies involve intentional engagement by cities to implement policies and programs to expand the participation of businesses and residents of color in the economy. (WDBJ)
A subsidiary of Lowell, Arkansas-based transportation company J.B. Hunt Transport Services Inc. has acquired a subsidiary of Bassett-based home furniture and marketer Bassett Furniture Industries Inc. for $87 million. J.B. Hunt Transport Inc. finalized the purchase of Zenith Freight Lines LLC on Feb. 28, a deal funded by Hunt’s existing cash balance. (VirginiaBusiness.com)
PEOPLE
A familiar face will take the helm of the Danville Pittsylvania Chamber of Commerce in April. Anne Moore-Sparks will serve as the chamber’s next president and CEO, the chamber announced March 7. She replaces Alexis Ehrhardt, who left last year to become the University of Virginia’s executive director for state government relations. “Anne is well-known in the community and will bring her connections and strong interpersonal skills to the Chamber,” said John Settle, chair of the search committee. A Danville native, Moore-Sparks worked for the city school system as a community engagement and business partnership specialist, a teacher quality specialist and as director of the Danville Public Schools Education Foundation. (VirginiaBusiness.com)
Martinsville-based ValleyStar Credit Union promoted three executives to C suite-level positions in mid-February. Justin Barnes was appointed the credit union’s chief lending officer, Mendy Shaffer was tapped as interim chief financial officer and Robert Sparrow is ValleyStar’s new chief risk officer. Barnes joined the credit union in 2018 and was most recently vice president of commercial lending. Shaffer joined ValleyStar in 2018 as vice president of accounting. Sparrow joined the credit union in 2013 and was most recently vice president of risk management. (VirginiaBusiness.com)
Amazon.com Inc. will open a 1 million-square-foot fulfillment center in Augusta County, creating 500 jobs, Gov. Glenn Youngkin announced Feb. 23. The facility at 32 Trader Road in Fishersville will open in spring 2023 and will pick, pack and ship bulky or larger-size items, such as patio furniture, outdoor equipment or rugs. Amazon has more than 30 fulfillment and sorting centers and delivery stations in Virginia. The first opened in Sterling in 2006. (VirginiaBusiness.com)
Developer Echelon Resources Inc. of South Boston is proposing a residential and commercial complex for the 1900 and 2000 blocks of Valley Avenue in Winchester. According to information presented March 1 to the Winchester Planning Commission, Echelon intends to buy the 17.34 acres needed to accommodate the Winchester Grove mixed-use complex from its current owners — Virginia Apple Storage Services LLC and Elms Properties LLC. The property has a total assessed value of $5.76 million. Echelon would construct and manage seven buildings containing 440 apartments, 19,457 square feet of commercial and restaurant space and 13,038 square feet of indoor amenities. The rezoning will go before the Planning Commission, the Planning and Economic Development Committee and City Council. (The Winchester Star)
Harrisonburg City Council voted Feb. 22 to approve Simms Pointe, an 80-unit affordable housing development on Lucy Drive. The development is geared toward nonstudent housing. Neighbors of the property had encouraged the council to vote against the proposal, citing concerns with the traffic, safety and other impacts to the neighborhood, as well as questioning the character of the Ohio-based developer, Woda Cooper Development. The approved special-use permit requires the complex to include a 6-foot fence and at least a 10-foot-tall landscaping buffer along the southern boundary of the property (Daily News-Record)
The Rockingham County Board of Supervisors voted Feb. 23 to deny Pennsylvania-based Dynamic Energy Solutions’ request for a special-use permit to build a large-scale solar energy facility outside Dayton. The project would have encompassed about 22 acres of a 50.7-acre parcel on the west side of John Wayland Highway, southwest of Huffman Drive. Dayton Mayor Cary Jackson and the town manager, Angela Lawrence, had asked the board to deny the project, and one of the concerns board members had was that the proposed facility would have been located in Dayton‘s annexation area for future growth. (Daily News-Record)
The Winchester-Frederick County Tourism Board decided Feb. 17 that it would release $290,000 in American Rescue Plan Act funds to the Winchester-Frederick County Convention and Visitors Bureau in two phases over the next two years. Since it is jointly funded by the governments of Winchester and Frederick County, the CVB will receive $160,000 in ARPA funds from the county and $130,000 from the city. The funds are intended to support new marketing initiatives to bolster local tourism and can be used for expenses such as print, broadcast and online advertising; video production; social media campaigns; and targeted promotions. (The Winchester Star)
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Brandy William was appointed the next president and CEO of United Way of Northern Shenandoah Valley, effective March 15. William leads a staff of six at a United Way branch that has more than 50 community partners, 4,000 donors and 2,000 volunteers serving Winchester and the counties of Clarke, Frederick, Page and Shenandoah. She succeeds Nadine Bullock-Pottinga, who stepped down Dec. 31.
William was previously a fundraising and development specialist for the American College of Radiology and the development director for the Lorton Community Action Center. (The Northern Virginia Daily)
The Appalachian Regional Commission announced on Feb. 22 funding for two projects in Southwest Virginia. The town of Lebanon will receive $500,000 for the Russell Theater Restoration Project to renovate and reopen the 5,590-square-foot Russell Theater. The restored theater is expected to attract businesses for live performances, concerts and other events. The second project, in the town of Wise, will also receive $500,000. The project will install 5,540 linear feet of sewer line to the Hamiltontown community located along Virginia State Route 758. (Bristol Herald Courier)
The Bristol Virginia Industrial Development Authority unanimously approved transferring a 2.88-acre tract of land at retail development The Falls to Georgia-based Tidal Wave Auto Spa Properties on Feb. 23. Tidal Wave Auto Spa Properties will develop a $5 million car wash project on its half of the parcel. Developer Martie Murphy said the company hopes to open it in the fourth quarter of this year. The business will employ 12 to 15 people. The company has pledged to grade the site and prepare the pad for an adjoining business, an unnamed fast food restaurant. (Bristol Herald Courier)
Project Fuse, a regional cooperative initiative to make Southwest Virginia a location of choice for remote employment, launched Feb. 18 with the release of a playbook to attract businesses. The Lonesome Pine Regional Industrial Facilities Authority commissioned the playbook with support from the state’s GO Virginia economic development initiative and the U.S. Economic Development Administration. InvestSWVA brought project members together. The study states that to attract businesses, localities need to have ubiquitous internet connectivity and reliable transportation networks; downtown office buildings with meeting space; affordable, diverse housing options in walkable areas; and established networks with academic partners. (VirginiaBusiness.com)
Chicago-based custom sign manufacturer Signco Inc. will invest $650,000 to take over the former MC Signs facility at 334 Industrial Park Road in Bluefield, Gov. Glenn Youngkin announced March 4. Signco, which is owned by Anthony Morrone and Vince Sclafani, designs, manufactures and installs signs for many industries, and the company has developed a new manufacturing process using 3D printing to make multidimensional LED letters. Signco expects to hire 19 workers at the facility. The company employs welders, painters, assemblers and computer numeric controlled (CNC) operators. (VirginiaBusiness.com)
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On Feb. 22, Hard Rock International Inc. announced Allie Evangelista had been appointed as its president of hotel and casino operations in Bristol. She most recently served three years as a vice president and general manager for Penn National Gaming Inc. operations. Evangelista joined the gaming industry in 2006 as an assistant slot operations manager in Missouri and worked her way up into vice president and managerial roles at casinos in Iowa and Ohio. (VirginiaBusiness.com)
Carl Snodgrass, Wise County’s chief economic development professional for three decades, died on Feb. 3 at age 84. Snodgrass began working for the county in 1992 and remained active with its Industrial Development Authority projects. He was instrumental in recruiting Dominion Energy Inc. to build the Virginia City Hybrid Energy Center, renovating the Inn at Wise, and creating the Lonesome Pine Business and Technology Park and bringing the Mineral Gap data center to it. He had served on Wise Town Council and as mayor. Before his county employment, Snodgrass helped launch the First State Bank, of which he became president. (The Coalfield Progress)
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