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Virginia Business// November 29, 2022//
Henrico County-based Altria Group Inc. announced Oct. 27 that it is partnering with Japan Tobacco Group to sell heated tobacco products in the U.S. and worldwide, placing Altria in direct competition with Juul Labs Inc. and Philip Morris International Inc. The $150 million deal will include marketing of heated tobacco products in the United States and Japan. The partnership comes after Altria sank $12.8 billion into a 35% stake in Juul, at the time the nation’s leader in the e-cigarette market. Juul has staved off bankruptcy, even as the U.S. government seeks to ban all Juul products from being sold in the U.S. (VirginiaBusiness.com)
Baltimore-based The Cordish Cos. wants to build a casino resort on the south side of Petersburg at Wagner Road and Interstate 95, state Sen. Joe Morrissey, D-Richmond, said Nov. 2, but not if the General Assembly also allows Richmond to seek a second voter referendum. Petersburg City Council voted unanimously in October to support Cordish developing a casino — even though Petersburg doesn’t yet have permission to build one under state law. The state’s Joint Legislative Audit and Review Commission released a report Oct. 17 that said Richmond and Petersburg could each support a casino, but Morrissey said Cordish would not proceed with a smaller project in Petersburg if it has to compete with a casino in Richmond. (VirginiaBusiness.com, Richmond Times-Dispatch)
Two Richmond city authorities issued a request for interest Nov. 3 to redevelop the area surrounding the Richmond Coliseum into a hotel-anchored mixed-use development, the City Center Innovation District. Owned by Richmond’s economic development authority, the 9.4-acre property includes the shuttered Coliseum and other structures that were part of the failed Navy Hill development proposal. The Richmond Economic Development Authority and the Greater Richmond Convention Center Authority invited development teams to submit applications by Dec. 20 to be considered for phase one of the project. (VirginiaBusiness.com)
TRP Hermitage LLC, an entity connected to Richmond-based Thalhimer Realty Partners Inc., has purchased two industrial properties near The Diamond baseball stadium in Richmond for $4.6 million, S.L. Nusbaum Realty Co. announced Nov. 3. The plots — 0.735 acres at 1701 Rhoadmiller St. and 0.978 acres at 2508 Hermitage Road — are part of the Diamond District, a 67-acre area that is set to be redeveloped. Thalhimer is part of the winning team of developers, designers and builders known as RVA Diamond Partners LLC. A panel of officials with the city of Richmond tapped the joint venture in September. The entire project is expected to cost $2.44 billion, with the first phase costing $627.6 million. (VirginiaBusiness.com)
Virginia Commonwealth University paused distribution of Ram Bam, a school-branded beer produced by Hardywood Park Craft Brewery Oct. 27, one day after its release. VCU cited concerns raised by a professor and the family of student Adam Oakes — who died of alcohol poisoning during a hazing incident last year — who said it wasn’t appropriate for the school to trademark its own alcoholic beverage at this time. VCU agreed in September to pay the Oakes family nearly $1 million in a settlement. (Richmond Times-Dispatch)
Charlottesville-based WillowTree Inc., recognized by Adweek as one of this year’s fastest-growing agencies in the nation, entered into an agreement to be acquired by Canadian tech company Telus International Inc. for $1.225 billion Oct. 27. Founded in 2008, WillowTree is a software company with roots in mobile app design and development and works with brands including Fox, CBC, PepsiCo, Anheuser-Busch InBev, Marriott and others. Its 2021 revenue total was
$140 million. The acquisition is expected to close in January 2023. (VirginiaBusiness.com)
More industrial space was built in Hampton Roads last year than in the preceding 10 years combined, according to Lang Williams, executive vice president with Colliers Virginia. The 10-year span leading up to 2020 saw about 4.4 million square feet of industrial space developed in the region. “Last year, 5.1 million square feet were completed,” Williams told 100 attendees of Hampton Roads Association for Commercial Real Estate’s final luncheon of the year on Oct. 19. Much of the recent spike can be attributed to Amazon’s new 3.8 million-square-foot robotics-powered fulfillment center in Suffolk and its 640,000-square-foot facility in Chesapeake. (Inside Business)
In a recent letter to the state, 17 Hampton Roads cities and counties opposed a proposal for Virginia to leave the Regional Greenhouse Gas Initiative. The Hampton Roads Planning District Commission sent the document as state officials collected public comments related to withdrawing from the initiative. Doing so is a priority for Gov. Glenn Youngkin, who says Virginia’s participation is driving up energy costs for residents. But local officials said they’re concerned because they’ve come to rely on the initiative, often referred to as RGGI, as a funding source for work to improve flood protection. (WHRO)
Huntington Ingalls Industries Inc.’s Mississippi-based Ingalls Shipbuilding has received a $2.4 billion contract modification for the construction of the Navy’s fourth American-class amphibious assault ship (LHA 9), according to the Department of Defense. The fixed-price incentive contract includes options that could bring the cumulative value of the contract to $3.2 billion if exercised. Work is expected to be complete by September 2029, though if all options are exercised, it will continue through March 2031, the defense department said. Construction of LHA 9 is expected to begin in December. Ingalls received the original long-lead-time material contract for LHA 9 in April 2020. (VirginiaBusiness.com)
Old Dominion University on Nov. 3 announced the formal launch of a five-year, $500 million campaign to raise money for scholarships, research, campus improvements and faculty recruitment, with the university saying it’s already more than halfway to meeting its fundraising goal. ODU President Brian O. Hemphill announced the Forward Focused: For Dreams and Beyond campaign on Oct. 20 during an alumni dinner. The university raised $275 million during a quiet phase that began July 1, 2016, and concluded in September, prior to the campaign’s rollout. That included a $35 million gift in 2016 to establish ODU’s
Barry Art Museum. (VirginiaBusiness.com)
PEOPLE
Virginia Beach-based chainsaw and outdoor power equipment manufacturer Stihl Inc. named Uwe Hirsch vice president of finance, effective Nov. 7. Hirsch will plan, direct and control the company’s financial plans and will support IT operations and system implementations. He was most recently global vice president of finance, controlling and purchasing in the automotive aftermarket division of Bosch Automotive Service Solutions LLC, a subsidiary of German engineering and technology firm Robert Bosch GmbH. Before that, he was vice president of finance for Bosch Automotive Service Solutions. (VirginiaBusiness.com)
TowneBank has promoted Brian Skinner to the newly created role of president and regional banking director for all of its markets in Virginia and northeastern North Carolina, the Suffolk-based bank announced in mid-October. “Brian is a dedicated member of the Towne family with a proven track record of leading both emerging and seasoned financial professionals to exceed their potential and enhance the success of our company,” TowneBank Executive Chairman G. Robert Aston Jr. said in a statement. Skinner will also have executive oversight for several specialty banking lines: real estate finance, commercial real estate finance and automotive dealer finance. (VirginiaBusiness.com)
George Mason University rebranded its College of Health and Human Services as the College of Public Health in a move to address a critical need for skilled health professionals and research. GMU announced the renaming Nov. 1, and it is the first and only public health college in the state. The rebranding reflects the school’s academic and research missions and the role it plays in the community; it is also expected to bring more opportunities for interdisciplinary collaboration and expanded funding. (VirginiaBusiness.com)
Reston-based Fortune 500 contractor Leidos was subpoenaed in August and September in connection with criminal investigations. The company was subpoenaed in August related to an investigation by the Justice Department’s antitrust division. That subpoena covers documents related to contracts between the U.S. government and an intelligence-focused IT services branch of Leidos. A separate subpoena in September stems from an investigation into possible violations of the U.S. Foreign Corrupt Practices Act, a law that prohibits companies from paying bribes to foreign government officials to gain a business advantage. Leidos voluntarily reported its FCPA probe to U.S. authorities, and the company said it was conducting an internal investigation.
(The Wall Street Journal)
Arlington-based Leonardo DRS Inc. received a five-year, $579 million contract to make the Army’s next-generation thermal weapons sight, the company announced Oct. 10. The company will likely produce thousands of the device — a standalone, clip-on weapon sight that connects wirelessly to helmet-mounted vision systems. The device uses Leonardo DRS’ uncooled thermal imaging technology and gives users the capability to locate targets during day and night and in smoke or fog. It will connect to the Army’s enhanced night-vision goggle binoculars as well as the service’s Integrated Visual Augmentation System, an augmented reality headset being tested by the service. (VirginiaBusiness.com)
The second half of Metro’s long-anticipated Silver Line in Northern Virginia opened Nov. 15, after years of cost overruns and delays. The 11.5-mile extension fulfills a long-coveted goal of connecting Dulles International Airport and a growing tech corridor to the transit system and the nation’s capital. The completion of the 23-mile line adds six stations and marks Metro’s debut into Loudoun County, coming 13 years after the first phase broke ground. The second phase began construction in 2014 and was initially scheduled to open in 2018. (The Washington Post)
After a contentious overnight public hearings, the Prince William County Board of County Supervisors on Nov. 2 voted to amend the county’s comprehensive plan to create the PW Digital Gateway. The project proposes 27.6 million square feet of data centers on 2,139 acres along Pageland Lane. The board’s action changes the land designations from agricultural/estate and environmental resource to technology/flex, parks and open space, county registered historic site and environmental resource overlay. It will provide guidelines for the overall development but does not deal with specific construction plans. The project puts the county on track to dethrone Loudoun County as the data center capital of the world. (InsideNoVa)
Daniel and Tanya Snyder are considering selling the Washington Commanders, and the potential buyers reportedly include Amazon.com Inc. founder and Executive Chairman Jeff Bezos, rapper Jay-Z and actor Matthew McConaughey, who may team up to buy the Ashburn-based NFL team. Other potential bidders include Entertainment Studios Inc. Chairman and CEO Byron Allen and Tesla and SpaceX head Elon Musk. The Snyders hired Bank of America Securities to evaluate “potential transactions,” the Commanders announced Nov. 2. (VirginiaBusiness.com, The Washington Post)
Carilion Franklin Memorial Hospital said in October it had wrapped up renovations for the first part of a three-phase expansion. Overall, the expansion is expected to cost $15 million. “The expanded space … will provide for more services [and] more types of surgeries to come into our area. For example, we will be offering hand surgery, increased podiatry, increased OB-GYN surgeries, [and] we’ll be increasing the general surgery population,” said Carl Cline, vice president and hospital administrator for Franklin Memorial. The goal is to make care more accessible to rural patients in the Franklin County area.
(The Roanoke Times)
Montgomery County will eliminate its merchants’ capital tax on Jan. 1, 2023, a plan that will end a revenue stream that has been in existence for nearly a century. The county Board of Supervisors, via a 4-3 vote split along partisan lines, approved the measure Oct. 11 following a number of public debates on the matter since August and after hearing from numerous employers who have criticized certain points of the tax. The issue that ultimately led to the historically significant decision has divided the board along partisan lines due to a number of concerns over aspects of the tax and the potential impact
of its elimination. (The Roanoke Times)
Citing what it called a federal court’s “continued hostility” to the Mountain Valley Pipeline, the joint venture’s lead partner has said that the best path forward may be through Congress. In a Nov. 1 conference call to discuss its third quarter earnings, Equitrans Midstream Corp. expressed hope that calls to reform the permitting process for energy projects will include legislation that requires the completion of the natural gas pipeline. But at the same time, the company will continue to pursue new permits that have been struck down repeatedly by the 4th U.S. Circuit Court of Appeals. (The Roanoke Times)
A 1964 graduate of Roanoke College and his wife have given the school $5 million that will be used toward construction of a new science center. Roanoke College alumnus John Snyder and his wife, Linda, said their gift was inspired by John’s fond memories of Roanoke College, respect for President Emeritus Michael Maxey and a belief in the importance of quality science education.
The planned science center is projected to cost $70 million. The college has raised
more than $50 million in cash and pledges
to date. The center will house three of the college’s 10 most popular majors: psychology, biology and environmental studies. (Cardinal News)
PEOPLE
Ferrum College President David L. Johns announced he would resign effective Nov. 7. The private college’s board of trustees will select an interim president as it begins a national search for its next president. Johns has been the college’s president since January 2018. Kevin P. Riley, vice president of academic affairs, has been promoted to chief operating officer of Ferrum and will lead Ferrum through the transition as it selects an interim president and then a permanent president. (VirginiaBusiness.com)
A chemistry professor from Louisiana State University will join Virginia Tech as executive director of its Fralin Life Sciences Institute. Robin L. McCarley will start Dec. 1. He is currently the Barbara Womack Alumni Association Endowed Professor of Chemistry at LSU. At the Fralin institute, McCarley will oversee investments, including recruitment and startup support for new institute-affiliated faculty members, retention and recognition of established faculty, investments in research centers, seed funds for new research, equipment purchases, core services, undergraduate and graduate student recruitment and support, and outreach support. (VirginiaBusiness.com)
The first flight by Contour Airlines, Shenandoah Valley Regional Airport’s new partner airline, departed Nov. 1 from the Weyers Cave airport to Charlotte, North Carolina. The Tennessee-based airline replaced Utah-based SkyWest Airlines, which announced it was ending service with SVRA and 20 other airports in March because of pilot shortages. The U.S Department of Transportation has a three-year, $5.4 million contract with Contour to service SVRA, offering flights to the Charlotte Douglas International Airport. There will be two round-trip flights every day except Wednesday and Saturday, which will only have a departure in the morning and an arrival in the evening each. (Daily News-Record)
James Madison University’s second comprehensive fundraising campaign, Unleashed, raised more than $251 million, the Harrisonburg university announced Oct. 21. The eight-year fundraising campaign, which exceeded its $200 million goal in March 2021, ended June 30. It began with an advanced gift phase in July 2014 before JMU announced it publicly in October 2018. Unleashed attracted 63,976 donors, about 37.4% of whom were alumni. The second largest segment of donors were parents, at 34.3%. Corporations donated 2% of the total. More than half of donors made their first gift to JMU through the campaign. (VirginiaBusiness.com)
In response to a recent spike in residential developments in the Winchester area, Middletown in late October prohibited the construction of homes on about 25 acres of land it had acquired northwest of the Wayside Inn along Main and West First streets. Middletown Mayor Charles Harbaugh IV said the prohibition eliminates the possibility of up to 80 single-family homes being added to the town. The town council voted in the spring to purchase 20 acres of land from the Bernstein Family Foundation, and the $550,000 sale was finalized in October. (The Northern Virginia Daily)
A week after a surprise gift of $15 million from billionaire philanthropist MacKenzie Scott, Warrenton-based PATH Foundation paid it forward in October with its latest round of “flexible funding” awards to 56 local nonprofits totaling $1.5 million. The grant awards can be used as needed for nonprofits to strengthen the health and vitality of people in the counties of Culpeper, Fauquier and Rappahannock. The foundation’s four priority areas are access to health, childhood wellness, mental health and senior services. (Culpeper Star-Exponent)
The Vaden family is donating the Millwood Avenue property that includes Shenandoah University’s South Campus Commons and Buzzins restaurant to the university, the university announced Oct. 27. The deal will be finalized Jan. 3, 2023. Shenandoah University renamed South Campus Commons as Vaden Campus Commons. Don Vaden agreed to lease the property at 711 Millwood Ave. — a longtime motel and conference center — to the university in 2020, when it needed more space because of the COVID-19 pandemic. The lease allowed the university to establish the property as a college housing facility.
(The Northern Virginia Daily)
People
The Winchester Economic Development Authority voted unanimously on Oct. 18 to hire Richard “Rick” Cobert as its economic development director. Cobert was Stafford County’s economic development manager and was scheduled to start with the EDA on Nov. 14. He has a bachelor’s degree in economics and business from Randolph-Macon College. Cobert succeeds Shawn Hershberger, who accepted a private sector job in May. Following Hershberger’s departure, Winchester split the role into two: an economic development director who works with the EDA and a development services director who works for the city.
(The Winchester Star)
It looks like Caesars Entertainment may bring a casino to Danville sooner than expected. The company plans to open a temporary casino at Schoolfield in the middle of next year — more than a year before Caesars Virginia plans to open its $650 million casino hotel resort in the same spot. Caesars Entertainment executives mentioned the plans three times during a third-quarter earnings call with investors Nov. 1. Danville City Manager Ken Larking confirmed the company’s plans. Also in November, Caesars announced a gift of $504,000 to Averett University, which will go toward developing a hospitality and tourism academic program in fall 2023. (Danville Register & Bee)
Billionaire philanthropist MacKenzie Scott — the former wife of Amazon.com Inc. founder and Executive Chairman Jeff Bezos — has donated $13 million to the Danville Regional Foundation. The organization announced the gift Oct. 17. “This gift is a recognition of the Dan River Region’s efforts … as we all work together to transform our community for the better,” Clark Casteel, president and CEO of the Danville Regional Foundation, said. “Everyone should be proud that Ms. Scott saw the collaborative efforts in our community and chose to invest here.” The foundation’s goal is to be a “catalyst for long-term transformation” in
the region. (Danville Register & Bee)
FyberX Holdings, a regenerative agriculture company, will invest $17.5 million to establish its U.S. headquarters and production operations in Mecklenburg County, creating 45 jobs, Gov. Glenn Youngkin announced Nov. 2. The company will be located in the formerly vacant Kinderton Distribution Center in Clarksville, where it will process hemp and other agricultural products and produce fibers for the textiles industry, Youngkin’s office said. FyberX was founded in 2019 to build the infrastructure necessary to process raw agricultural biomass into refined natural fibers, while creating environmentally friendly manufacturing solutions. (VirginiaBusiness.com)
Hitachi Energy Ltd. will invest $37 million to expand its operation in Halifax County, creating 165 jobs, Gov. Glenn Youngkin announced Oct. 12. The technology company will add 26,000 square feet to its existing facility in the county to make space for a new production line of large transformers to support the utility and renewable energy markets. The existing facility opened in 1968 to service the distribution transformer market and in 2008, the plant added the capability to produce medium power transformers in addition to distribution transformers. The site has two buildings: the distribution transformer factory, which is 517,000 square feet, and the power transformer factory, which is 90,000 square feet. (VirginiaBusiness.com)
As public relations expenses and salaries of staff at Martinsville’s New College Institute ballooned, the programs NCI offered quietly dwindled, despite the continued infusion of millions of dollars of state funding, a three-part investigation by the Martinsville Bulletin published in mid-November found. Since 2017, Virginia has invested more than $17 million in NCI, in addition to more than $10 million approved by the Virginia Tobacco Region Revitalization Commission. NCI spent millions on salaries and programs that offered little payoff to Martinsville and Henry County residents, offered training for employers that were prepared to hire workers without it, and filled key positions with remote workers from other parts of the state.
(Martinsville Bulletin; Richmond Times-Dispatch)
E-commerce solutions company Radial is looking to hire 400 new employees in Martinsville for the peak holiday season. “It is a great opportunity for our community here as we approach the holiday season,” said Henry County Administrator Dale Wagoner. “It provides new economic opportunity for residents who may want to get a part-time job to help cover the expenses related with the holidays or make a little extra money to get them through the winter months.” (WDBJ)
Eight Southwest Virginia economic development projects totaling $10.6 million have been recommended for federal funding under Virginia’s Abandoned Mine Land Economic Revitalization grant program, Gov. Glenn Youngkin and U.S. Rep. Morgan Griffith announced Oct. 14. Referred to the federal Office of Surface Mining and Reclamation Enforcement for approval, the projects include $2.347 million to develop a 23.5-acre build-ready pad at the Chip Mill Industrial Site in Dickenson County; $2 million to support the Energy DELTA Lab in Wise County; and $2 million to create campsites and connector trails at Devil’s Bathtub in Wise and Scott counties. (VirginiaBusiness.com)
The Appalachian Regional Commission announced in mid-October nearly $47 million of Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) grants for 52 projects in several states. The Health Wagon is receiving a $500,000 grant to expand dental services in the region. The funds will go toward providing dental care and training new dental professionals. The project will create four dental staff positions, and six trainees will get workforce training more than a year. The Health Wagon broke ground in May for its new dental clinic in Wise. (The Coalfield Progress)
Emory & Henry College has finalized its School of Business’ MBA program and is prepared for a 2023-24 cohort. The application period for the program opened Oct. 31. The hybrid program includes 18 days of on-campus learning in Carriger Hall, which is undergoing renovations for the first MBA cohort. Members of the program will have more than 200 hours of leadership and managerial development courses with senior practitioners, CEOs and leadership experts. The program has three phases of learning: foundational business courses, team building and networking, and a personalized electives pathway. (Bristol Herald Courier)
Leaders in colleges and school systems along the Interstate 81 corridor between Bristol and Wytheville are working to open a lab school, a public K-12 school that is a partnership between higher education, employers, school divisions and communities and must focus on academic programs in an in-demand field, such as computer science. Emory & Henry College’s School of Health Sciences would launch the school, which would include school systems in Bristol and the counties of Washington, Smyth and Wythe, along with the Southwest Virginia Higher Education Center, Virginia Highlands Community College and Wytheville Community College. (Cardinal News)
New Jersey-based custom resin and vinyl manufacturer Ronald Mark Associates Inc. will invest $13.5 million to establish a manufacturing operation in Tazewell County, a project expected to create 29 jobs, Gov. Glenn Youngkin announced Nov. 3. The company will occupy the former Komatsu Mining Corp. facility at 1081 Hockman Pike in Bluefield. Ronald Mark Associates has marketed, distributed and packaged PVC resin since 1971 and has manufactured vinyl films since 1979. The company provides vinyl fabrics to the military. Youngkin approved a $116,000 grant from the Commonwealth’s Opportunity Fund to assist the county. (VirginiaBusiness.com)
The Southwest Virginia Higher Education Center in Abingdon hosted a two-day Rural Summit in late October. Leaders from Southwest Virginia in the education, nonprofit, business and health care fields gathered to discuss the region’s rural counties. Jason Smith, a senior community development adviser with the Federal Reserve Bank in Richmond, presented a series of data points showing Southwest Virginia’s rural counties trailing most of the state in workforce development, income, education level, access to child care, and the percentage of disabled workers. The group then discussed ideas and strategies to move the region forward. (Bristol Herald Courier)
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