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Virginia Business// January 30, 2023//
Atlantic Union Bankshares Corp., the Richmond-based holding company for Atlantic Union Bank, announced Jan. 6 it was transferring the listing of its common stock and depositary shares from the Nasdaq to the New York Stock Exchange. The bank’s first day of trading on the NYSE was set to be Jan. 18. The common stock and depositary shares are under the ticker symbols of “AUB” and “AUBAP,” respectively, and each is a 1/400 interest in a share of its 6.875% perpetual noncumulative preferred stock, Series A. (VirginiaBusiness.com)
Richmond’s 14.5-acre Mayo Island could become a public park. The Capital Region Land Conservancy was under contract in December 2022 to purchase the property at 501 S. 14th St. The Virginia Land Conservation Foundation said the total cost of the CRLC project is $11.8 million. The conservancy is currently working with the city to seek additional funding from the Community Flood Preparedness Fund. If the deal goes through, the conservation group aims to work with the city to return Mayo Island to an active greenspace open to the public. (Richmond Times-Dispatch)
Telus International Inc.’s $1.225 billion purchase of Charlottesville-based software company WillowTree Inc. has been completed, the Canadian tech company said Jan. 4. The acquisition was announced in October 2022. The purchase included $210 million of assumed debt, of which $125 million was to be settled in Telus subordinate voting shares. Approximately $160 million will be reinvested by certain eligible management team members and settled subject to certain performance-based criteria, and the remainder was to be paid in cash upon closing. Majority stakeholder Insignia Capital Group also sold its stake in WillowTree. (VirginiaBusiness.com)
The University of Lynchburg revealed a $12 million budget deficit in mid-December 2022, after evaluation from its academic and administrative departments. The university also announced that four faculty members would not have their contracts renewed for the 2023 fall semester. The key factors that led to the deficit were the decline in enrollment and graduate enrollment, as well as increased expenses, said Michael Jones, the university’s vice president of enrollment, marketing and communications. The university plans to cut into the deficit by more than $3 million this year, Jones said. (The News & Advance)
Virginia Commonwealth University is the 50th largest public college for research in the U.S., according to a National Science Foundation survey released in mid-December 2022. In fiscal 2021, VCU conducted $364 million worth of research and development, including developing a drug to treat pancreatic cancer and a system for recycling oyster shells in the Chesapeake Bay. Almost half of its research expenditures were funded by the federal government. Among public and private colleges, VCU ranked No. 76 nationwide and No. 3 in the state for research, behind the University of Virginia and Virginia Tech.
(Richmond Times-Dispatch)
PEOPLE
Lynchburg-based Fortune 1000 federal contractor BWX Technologies Inc. announced two personnel changes in early January. On Jan. 1, Omar Meguid assumed the role of senior vice president and chief digital officer, a new position. He is responsible for BWXT’s digital platform supporting business operations in the United States, Canada and the United Kingdom. The company promoted Ronald O. “Chip” Whitford Jr. to senior vice president, general counsel,
chief compliance officer and corporate secretary on Jan. 3. Whitford joined BWXT in 2017 and had most recently served as vice president, deputy general counsel and assistant corporate secretary. (VirginiaBusiness.com)
Virginia officials say Chesapeake Regional Medical Center can start performing open heart surgeries, the conclusion to a yearslong battle for approval that included legal infighting up to the state Supreme Court. State Health Commissioner Dr. Colin Greene has approved the hospital’s application for a certificate of public need for the procedures. Chesapeake Regional first applied to launch an open heart surgery program in 2017. Sentara Healthcare soon petitioned to be involved in the decision. In 2018, then- Health Commissioner Dr. Norman Oliver rejected the heart surgery application. Chesapeake Regional sued Sentara and appealed the state’s decision in court, and it made its way to the Virginia Supreme Court. Last spring, a justice sided with the Chesapeake system, ruling that the state had erred in how it calculated public need. (WHRO)
In his proposed budget amendments released in December 2022, Gov. Glenn Youngkin laid out the framework and a timeline for the merger of Eastern Virginia Medical School and Old Dominion University, requiring it to take place by July 2024. Youngkin’s amendments to the 2022-24 state budget, which must be passed by the General Assembly during its 2023 session to take effect, include $10 million for the creation and launch of the Eastern Virginia Health Sciences Center at Old Dominion University, a merger of EVMS and ODU. State Sen. Louise Lucas introduced legislation in January that would make EVMS into the Eastern Virginia Health Sciences Center at ODU, a medical and health sciences school. (VirginiaBusiness.com)
M S International Inc. (MSI), a California-based flooring, countertop, wall tile and hardscaping products supplier, will invest $61.6 million to establish its East Coast distribution facility in Suffolk, a project expected to create 80 jobs, Gov. Glenn Youngkin announced Dec. 12, 2022. McDonald Development Co. will construct the 548,000-square-foot facility, which will be located at 2821 Holland Road. MSI imports more than 70,000 containers each year from more than 37 countries on six continents. Its inventory spans 300 million square feet. (VirginiaBusiness.com)
Rivers Casino Portsmouth’s grand opening was delayed until Jan. 23, eight days after its initially scheduled opening. The casino said it wanted additional time to test and verify new gaming equipment. The $340 million, 250,000-square-foot casino will be operated by Chicago-based Rush Street Gaming. Construction began in December 2021. The gaming venue has 1,448 slot machines, 57 table games and 24 poker tables. Expected to bring $16.3 million in annual tax revenues to the city, Rivers Casino Portsmouth is Virginia’s first permanent casino, though a temporary casino opened in Bristol in July 2022. (VirginiaBusiness.com)
PEOPLE
A former NFL player is heading to the General Assembly. Democrat Aaron Rouse declared victory Jan. 10 in a tight special election for Virginia’s 7th Senate District. Rouse, a former Virginia Beach city councilman, faced Republican Navy veteran Kevin Adams. District 7 includes a large swath of northwest Virginia Beach and several precincts in Norfolk. The seat was left vacant when Jen Kiggans, a Republican, resigned after winning Virginia’s 2nd Congressional District race in November 2022. The winner will finish out the last year of Kiggans’ term. (The Virginian-Pilot)
TowneBank promoted R. Lee Clark from chief human resources officer to chief operating officer, the Suffolk-based bank announced Jan. 5. Clark will continue to oversee human resources and will be responsible for bank operations. He’ll also become a member of the corporate management team. Clark succeeds Brad E. Schwartz, who retired as bank president and COO on Dec. 31, 2022. Clark joined TowneBank in 2006 as a senior business analyst. He held leadership positions in loan administrations and banking operations before becoming chief human resources officer in 2019. (VirginiaBusiness.com)
Arlington-based Boeing Corp. will continue manufacturing the core and upper stages of the Space Launch System rockets for NASA’s Artemis missions that are expected to take astronauts to the moon and beyond. NASA announced in December 2022 that it finalized its $3.2 billion contract with Boeing, just two days before completing the uncrewed Artemis I mission flight test that launched Nov. 16, 2022, from Kennedy Space Center in Florida. Boeing will produce SLS core stages for Artemis III and IV, procure critical and long-lead material for the core stages for Artemis V and VI, and provide exploration upper stages for Artemis V and VI, as well as related support and services. (VirginiaBusiness.com)
Reston-based Leidos Inc. will help the Air Force develop its Mayhem hypersonic system under a $334 million contract, the Fortune 500 contractor announced in December 2022. Under the contract, Leidos will assist the U.S. Air Force Research Laboratory in developing the Expendable Hypersonic Multi-mission ISR and Strike Program, known as Mayhem. The system will use a scramjet engine to generate thrust to propel the vehicle at speeds greater than Mach 5. Leidos is expected to design and develop a large-class version that surpasses current air-breathing systems in range and payload capacity using digital engineering to ensure the design efforts help future development and transition. (VirginiaBusiness.com)
According to a document filed Dec. 22, 2022, with the Securities and Exchange Commission, MicroStrategy Inc. sold 704 bitcoins for $11.8 million in cash through its subsidiary MacroStrategy LLC, marking the first time the Tysons tech company has sold its bitcoin holdings. The average price per coin came out to $16,776 net of fees and expenses; as of Jan. 3, the firm held 132,500 bitcoins, which it said it spent $4.03 billion to buy, or an average purchase price of $30,397 per bitcoin inclusive of fees and expenses. Between Nov. 1 and Dec. 21, 2022, the company also purchased 2,395 bitcoins for $42.8 million in cash, or about $17,871 per bitcoin, through MacroStrategy. On Dec. 24, 2022, it spent $13.6 million to purchase 810 bitcoins at about $16,845 per bitcoin.
(Washington Business Journal)
Arlington County-based Raytheon Technologies Co. was awarded two large contracts in late December 2022. Under a $412.6 million Air Force contract, Raytheon will provide continued sustainment to the Taiwan Surveillance Radar Program. The contract includes logistics support, engineering services, technical updates, spare parts and other logistics and program support. Under a $317.4 million contract modification, the Navy is exercising options to produce and deliver AIM-9X Sidewinder missiles to the Army, Air Force and for foreign military sales. (VirginiaBusiness.com)
PEOPLE
On Jan. 3, Army Maj. Gen. Telita Crosland assumed leadership of the Falls Church-based Defense Health Agency. She becomes the fourth director of the combat support agency that provides shared health and medical services to the armed forces and succeeds Army Lt. Gen. Ronald Place, who had led DHA since September 2019. Crosland received her medical degree and a master’s degree in public health from the Uniformed Services University and joined the Army in 1993. She oversees a staff of nearly 140,000. (ExecutiveGov.com, VirginiaBusiness.com)
Ashburn-based Fortune 500 contractor DXC Technology Co. has added former U.S. Rep. Anthony Gonzalez and former Washington, D.C., Attorney General Karl Racine to its board. Gonzalez, a Republican who represented Ohio’s 16th Congressional District, will serve on the DXC board’s compensation committee. Racine will serve on the nominating/corporate governance committee. It’s the first corporate role for each since leaving public office. DXC has brought on seven new board members since August 2020. Its 12-member board includes three women and five men of color. (Washington Business Journal)
The State Corporation Commission has substantially reduced an Appalachian Power Co. request for a revenue increase the utility used for an Oct. 1 customer base rate boost. In a Dec. 21, 2022, ruling, the SCC approved a $28.4 million revenue increase, $12.2 million less than Appalachian sought, a 30% reduction. Additionally, Appalachian was ordered to provide customers with a rebate based on the lower revenue amount approval. Appalachian raised its base rate on an interim basis while an SCC decision was pending. That Oct. 1, 2022, base rate increase was 6.7% — or $8.55 per month for a residential account that consumes 1,000 kilowatt-hours of electricity. (The Roanoke Times)
Roanoke businessman George Logan and his wife, Helen Harmon Logan, donated $1 million to Carilion Clinic to help fund expansion of the Roanoke-based health system’s cancer services. “The Logans have contributed much to Carilion and to our community’s success over the years,” said Ralph Alee, Carilion’s vice president for philanthropy, in a Jan. 9 statement. Carilion’s plans to expand its cancer services include a new cancer center to consolidate personalized care, advanced treatment options and research in one location. The center, which will be built next to Virginia Tech’s Health Sciences and Technology campus, is expected to cost more than $150 million. (VirginiaBusiness.com)
The Galen College of Nursing, a for-profit nurse training school with 14 campuses nationwide, will open a 15th in the Roanoke Valley this April. The college will open in partnership with the HCA Virginia Health System, to which the LewisGale Medical Center belongs. Galen plans to offer a two-year program for an associate degree in nursing, together with an advanced associate program with prerequisites required for registered nurse or licensed practical nurse training. Amy Woods, the chief nursing officer at LewisGale, said the partnership would offer a new pool of trained nurses to fill the more than 800 vacancies for nursing jobs in the Roanoke and New River valleys. (The Roanoke Times)
The Highlander Hotel Radford across the street from Radford University’s campus is now accepting reservations for visitor stays and special events beginning April 1. The new hotel celebrates the area’s Scots-Irish origins, with views of the Blue Ridge Mountains, and will offer a coffee bar, an in-lobby visitor center with concierge, a rooftop terrace and 6,000 square feet of meeting and event space. The $40 million development project began in April 2021 and was a public-private partnership between Radford University, the Radford University Foundation, design firm Blur Workshop, Preston Hollow Capital, S.B. Ballard Construction Co. and Aimbridge Hospitality. (The Roanoke Times)
Massachusetts-based advanced materials manufacturer Hollingsworth & Vose will invest $40.2 million to expand its Floyd County operation, a project expected to create 25 jobs, Gov. Glenn Youngkin announced Jan. 10. H&V will add more than 28,000 square feet to accommodate new production equipment at its facility at 365 Christiansburg Pike NE. Incorporated in 1892, H&V has been family-owned for seven generations. The company produces advanced materials used in filtration, battery and industrial applications. It has more than 200 employees. (VirginiaBusiness.com)
Floyd-based SWVA Biochar LLC, an absorbent charcoal producer, will invest $2.6 million to increase capacity at its Floyd County operation, a project expected to create 15 jobs, Gov. Glenn Youngkin announced in mid-December 2022. The company will update its facility at 209 Sams Road SE, adding equipment, including new kilns. Founded in 2021, SWVA Biochar produces biochar using biomass from Virginia companies. SWVA Biochar “is committed to making a positive impact on the environment and playing a role in the reversal of climate change.” (VirginiaBusiness.com)
Staunton-based medical and drug delivery devices manufacturer Cadence Inc. has acquired Connecticut-based miniature medical device components manufacturer Utitec Inc., Cadence announced Jan. 3. Financial details of the transaction were not disclosed. Utitec specializes in miniature, deep-drawn, medical-device and commercial components. The company has a medical facility in Costa Rica. Manufacturing deep draw components — those with depths equal to or greater than their diameters — costs less than creating conventional machined parts because of the process’ reduced labor and high volume, according to a news release. (VirginiaBusiness.com)
The state awarded the Hub for Innovators, Veterans and Entrepreneurs (HIVE) a $4.5 million Industrial Revitalization Fund grant, Gov. Glenn Youngkin announced Dec. 27, 2022. The HIVE is a partnership between the city of Winchester and Shenandoah University to renovate the former National Guard Armory on Millwood Avenue into a veterans’ center, business incubator, job training center and community gathering area, with a focus on technology fields. IRF grants provide gap financing for construction projects, primarily in distressed communities, that align with local and regional economic development strategies. (The Winchester Star)
The Omni Homestead Resort reopened its Warm Springs Pools in mid-December 2022 after completing a $4.6 million restoration. Bath County had ordered the pools closed to the public in 2017 because of safety concerns due to deterioration of the wood-frame buildings, the oldest of which dates to the early 19th century. The resort held a locals-only preview day on Dec. 16, 2022, before taking reservations from the general public. The Ladies’ Bath House can hold 35 visitors at a time, and the Gentlemen’s Bath House accommodates 25 at a time. (Cardinal News)
At its Jan. 3 meeting, the Warren County Board of Supervisors voted unanimously against a proposal that would have allowed data centers in the county. The proposed zoning ordinance change would have allowed data centers as a by-right use — without requiring conditional-use permits — in certain zoning districts. About six months earlier, county supervisors did not adopt county officials’ proposed zoning ordinance amendment to add “light industrial” to zoning districts and to allow data centers in industrial and light industrial zones by right. Residents voiced concerns about the potential effects data centers could have on the local water supply and the electrical power system. (The Northern Virginia Daily)
Wholesome Foods Inc. will expand its meat processing operation in Shenandoah County by adding a USDA-inspected slaughter facility with a $1.2 million investment, creating 12 jobs, Gov. Glenn Youngkin announced Dec. 29, 2022. Nearly all the livestock used at the new facility will be sourced from Virginia farms, according to Youngkin’s office. Established in 1964 by Dean and Syvilla Pence as a home delivery service of poultry, meat and eggs to the Washington, D.C.-area market, Wholesome Foods has grown into a full-scale food distributor and now supplies wholesale accounts in the mid-Atlantic, as well as serving consumers with meat and cheese. (VirginiaBusiness.com)
The Winchester Economic Development Authority approved in December 2022 a list of planned Old Town events for 2023 and 2024, including the return of the Fiddles and Fifths Festival. The first Fiddles and Fifths Festival was a two-day event in August 2022 that lost more than 75% of its budget. Part of the problem was timing, Alex Flanigan from the EDA says. After former director Shawn Hershberger stepped down in May 2022, Flanigan had to finalize planning three months before the festival. The EDA will host the second festival as a one-day event on Sept. 16 with a total budget of $75,000. (The Winchester Star)
New York-based specialty textile manufacturer Apex Mills Corp. will invest $3.1 million to acquire the former HanesBrands facility in Patrick County, along with the plant’s equipment. The acquisition will retain 96 jobs and create an estimated 44 jobs, Gov. Glenn Youngkin announced Jan. 6. Apex Mills will fulfill contracts for the Hanes clothing brands. HanesBrands Inc. closed the facility in July 2021, eliminating 140 jobs. Founded in 1943, Apex Mills makes warp-knit fabrics geared toward industrial and technical applications. The company provides solid knit, mesh/netting and 3D-spacer textile solutions. (VirginiaBusiness.com)
Danville and The Alexander Co. held a Jan. 12 groundbreaking for the redevelopment of the long-vacant White Mill in the city’s River District. City officials revealed that the White Mill will now be called Dan River Falls. The $100 million public-private redevelopment of the 550,000-square-foot former textiles mill is a joint venture between the Industrial Development Authority of Danville and Madison, Wisconsin-based The Alexander Co. It will have 147,000 square feet of commercial space and 150 apartments, 32 of which will be reserved for people earning up to 80% of the area’s median income. (VirginiaBusiness.com)
A standing-room only crowd applauded loudly on Jan. 10 when Martinsville City Council voted 3 to 2 to end its efforts, begun in December 2019, to revert to a town within Henry County. “A majority of council now believes the reversion process should be stopped,” said council member Tammy Pearson. Council member Kathy Lawson read a letter asking that more consideration be given, and councilman Chad Martin said citizens should have a chance to comment on it. Pearson, Mayor LC Jones and Vice Mayor Aaron Rawls voted to accept the resolution ending reversion, with Martin and Lawson voting against the measure.
(Martinsville Bulletin)
The Mecklenburg County Board of Supervisors on Jan. 9 voted down a utility-scale solar project proposed for more than 1,000 acres of forested land near Boydton. By a vote of 6-0, supervisors agreed with the findings of the county’s planning commission, which determined in December 2022 that the 90-megawatt solar facility on Antlers Road near Boydton did not conform with the county’s comprehensive plan. Supervisors agreed that the project would remove nearly 500 acres of prime farmland from agricultural use and potentially contaminate several creeks and Lake Gaston due to soil erosion. (Mecklenburg Sun)
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The Danville Neighborhood Development Corp., a nonprofit community development corporation with a mission to improve Danville’s neighborhoods and the quality of life of its residents, has chosen Wendi Everson as its next executive director. The nonprofit buys and renovates homes in targeted impact areas, serves as the city of Danville’s designated administrator of land bank properties and manages a forgivable loan renovation program for homeowners and landlords. (Danville Register & Bee)
Sovah Health announced that Steve Heatherly was named the new CEO for Sovah Health – Danville, effective Jan. 16. He also assumes the role of market president for Sovah Health, granting him operational oversight of facilities and associated services within the Sovah Health system, including Martinsville. Heatherly replaces Alan Larson, who announced plans to retire from the system in 2022 after leading the market since 2015. Heatherly joins Sovah Health from Pardee UNC Health Care in Hendersonville, North Carolina. (Cardinal News)
Emory & Henry College ranked No. 19 in Intelligent.com’s 2023 ranking of Virginia’s best colleges. The website, a resource for program rankings and higher education planning, identifies top schools based on tuition fees, program strength, student readiness, return on investment, cost, student engagement, credit requirements and available coursework formats, which refers to on-campus or online classes. Intelligent.com pulled data from U.S. News & World Report, BestColleges.com and other ranking sites. Emory & Henry ranked No. 20 out of 136 institutions in U.S. News & World Report’s Best Regional Universities South. (Bristol Now, Intelligent.com)
Del. Terry Kilgore said on Dec. 30, 2022, that he would introduce legislation to repeal House Bill 904, the bill he introduced in 2022 to revoke the town of Pound’s charter if the town did not improve its management in a year. House Bill 904 became law in February 2022. Council members and town staff corrected several management issues over the year. The Town Council approved a balanced budget by the end of the 2021-22 fiscal year. Interim Mayor Brittany Carter won the mayoral election in November 2022. The police evidence room was declared secured and documented in fall 2022. (Bristol Now)
According to a $200,000 study commissioned by the General Assembly and released in early January, Mount Rogers Planning District, composed of six counties and two cities in Southwest Virginia, has the potential to support an inland port and warrants additional assessment. The Central Virginia Planning District, centered around Lynchburg, does not, according to consultant Moffatt & Nichol’s report. An inland port facility that sits on 100 acres and could handle 50,000 shipping containers annually would cost $55 million to construct and could have a cumulative economic impact of $1.75 billion over 20 years. (Cardinal News)
The New River/Mount Rogers Workforce Development Board will receive $1.24 million in grant funding for Ready SWVA, a child care initiative launched by United Way of Southwest Virginia, Gov. Glenn Youngkin announced in December 2022. The United Way chapter launched Ready SWVA in December 2021 to expand access to affordable child care, strengthen the provider network and increase the number of credentialed teachers. With the grant, the chapter will work with the New River/Mount Rogers board and the Southwest Virginia Workforce Development Board to develop a workforce of early care providers, according to Ryan Dye, UWSWVA’s marketing and communications manager. (VirginiaBusiness.com)
The city of Norton and Friends of Southwest Virginia held a groundbreaking for the High Knob Destination Center on Dec. 16, 2022. The center will serve as a gateway to the High Knob region’s recreational activities and communities, Mayor Joe Fawbush said. The 5,300-square-foot complex will have an exhibit hall to teach visitors about the region, a retail area and 1,000 square feet of office space. Construction is estimated to cost around $2.2 million and finish this fall. The center is part of a four-project series intended to boost the region’s outdoor recreation industry. (The Coalfield Progress)
St. Paul officials and others held a ribbon-cutting for the Lyric Theater’s reopening on Jan. 4. The town of St. Paul purchased the then-abandoned building in 2013, and St. Paul Tomorrow oversaw its restoration. Because of donations, grants and volunteer work, the town opened the theater debt-free. The theater had programming lined up through March, and the building will be multiuse, offering space for conferences and meetings, stage shows, concerts and other programs. Food City, one of the project’s several financial backers, presented a $25,000 check to St. Paul Tomorrow. (The Coalfield Progress)
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