Please ensure Javascript is enabled for purposes of website accessibility

Amazon’s HQ2 hiring falls short of 2024 target

SUMMARY:

  • Amazon hired 7,232 workers since 2018, below its 10,000 goal
  • The company downgraded confidence of meeting that target from “high” to “moderate”
  • Amazon requested $6.4M in state incentives
  • Northern Virginia faces a labor market impacted by federal job cuts

When Amazon.com picked as the site of its second headquarters (HQ2) in 2018, the online behemoth said it expected to create 25,000 jobs by 2030.

However, in an April 1 application requesting payment of taxpayer-funded incentives from the state, Amazon checked the “moderate” box as a reflection of its confidence that it would meet the job target by 2038.

In every previous application filed with the state, Amazon checked the “high” confidence box.

“Amazon is proud of the progress we’ve made since first announcing Arlington as the site for HQ2, and that we’ve reached nearly 30% of our goal to date,” Holly Sullivan, of worldwide economic development for Amazon, said in a statement. “From boosting local jobs and small businesses, to expanding affordable housing and supporting Virginia nonprofits, transit and community projects, we are proud to call the Virginia home and to continue being a great neighbor.”

In the application, Sullivan stated, “Our second headquarters has always been and continues to be a long-term investment, and we are proud of the progress we have made.”

The application also notes that since 2018, Amazon has made more than $2.5 billion in capital investment at the HQ2 headquarters.

But things have changed since 2018, including the pandemic’s effect on work-from-home habits and the White House’s plans to lay off federal workers and sell off federal buildings around the region. In 2023, Amazon said it would delay on the second phase of HQ2 shortly before the opening of its first phase.

When the state first celebrated being picked for HQ2, economic development experts forecast that the project would help Northern Virginia diversify its economy, which is heavily reliant on the federal government. More than 175,000 federal workers lived in Northern Virginia in 2023, according to the Northern Virginia Regional Commission. Amazon’s HQ2 jobs were expected to be high paying and competitive.

Reducing reliance on the federal government is especially key today as President Donald works to achieve his “commitment to reducing the size and scope of the federal government,” and has laid off or fired at least 121,000 federal workers in the first 100 days of his second term, according to a CNN analysis.

Having Amazon — and other tech companies expected to follow — to insulate the Northern Virginia economy from the vagaries of federal employment doesn’t work as well if the retailer is also impacted by federal actions, points out Terry Clower, professor of public policy at George Mason University’s Schar School of Policy and Government.

“The unfortunate piece is that the reduction in is happening at the same time that the Trump administration is shocking the entire ecosystem of jobs,” he said Monday. “Everything is very much uncertain now, with all with the trade policies, the broader impacts of cutbacks in federal spending, because Amazon gets federal spending like a lot of other companies.”

Incremental job growth

In its application, Amazon requests more than $6.4 million from Virginia’s Major Headquarters Workforce Grant Payment, a grant that pays out $22,000 per qualifying job. The average annual wage paid for these positions is above the wage target specified in the agreement of $161,593.

Last year, Amazon hired 293 incentive-qualifying employees, according to the application.

“We appreciate every job we can get, but it wasn’t very much in the last year,” Clower said of HQ2’s 2024 number.

From 2018 through the end of 2024, Amazon hired 7,232 incentive-qualifying employees at HQ2, falling short of the 10,000 qualifying workers it had targeted to hire by 2024.

“While we experienced incremental new job growth in 2024, we exceeded hiring goals in previous years,” Sullivan stated in the document.

Amazon has hit other roadblocks with HQ2. In 2023, the company paused construction on HQ2’s second phase, PenPlace, which was set to include 3.3 million square feet of office and retail space spread across three 22-story buildings. In that application to the state, Amazon revealed that the company had lost 295 incentive-qualifying positions since 2022.

Also in 2023, Amazon officially opened Metropolitan Park, the first phase of HQ2. The development includes 2-million-plus square feet of commercial space, including 50,000 square feet of retail space for local, small businesses, according to Amazon.

Since 2010, Amazon has invested more than $135 billion in the commonwealth, in infrastructure and paychecks for employees, Sullivan stated in the application.

“We’ve also created 42,000 full- and part-time jobs in Virginia (as of January 2024), supported nearly 200,000 indirect jobs on top of our direct hires in the state, and $96 billion has been added into the state GDP as a result of Amazon’s investments,” she wrote.

Wall Street takes a breath ahead of another week full of potential swings

NEW YORK (AP) — U.S. stocks are drifting lower Monday ahead of potential flashpoints looming later in the week that could bring more sharp swings for financial markets.

The S&P 500 fell 0.5% in late morning trading, coming off a winning week in its whipsaw ride that’s been rattling investors for weeks. It had slightly more gainers than losers, but pricey technology stocks were losing ground and weighing down the index.

The Dow Jones Industrial Average was down 18 points, or 0.1%, as of 11:40 a.m. Eastern time, and the Nasdaq composite was 0.9% lower.

The relatively calm trading offers a respite following historic swings that have come as hopes rise and fall that President Donald may back down on his tariffs, which investors expect would otherwise cause a recession. The S&P 500 has roughly halved its drop that had taken it nearly 20% below its record set earlier this year.

This upcoming week will feature earnings reports from some of Wall Street’s most influential companies, including Amazon, Apple, Meta Platforms and Microsoft. Their performances carry huge sway over the market because they’ve inflated to become the biggest by far in terms of size.

Outside of Big Tech, executives from Caterpillar, Exxon Mobil and McDonald’s may also offer clues about how they’re seeing economic conditions play out. Several companies across industries have recently been slashing their estimates for upcoming profit or pulling their forecasts completely because of uncertainty about what will happen with Trump’s tariffs.

“We heard more plans to mitigate tariff impacts than in prior months and than during 2018” from U.S. companies, including pre-ordering, shifting production and increasing prices for their own products, according to Bank of America strategist Savita Subramanian. But she also said in a report that she’s seeing “some indications of a pause: no /no firing, no new projects/no cancellations etc.”

A fear is that Trump’s on-again-off-again tariffs may be pushing households and businesses to alter their spending and freeze plans for long-term investment because of how quickly conditions can change, seemingly by the hour.

Domino’s Pizza was flipping between small losses and gains after it reported weaker profit for the latest quarter than analysts expected. The pizza chain’s CEO, Russell Weiner, called the global economic environment “challenging,” and its was most recently up 0.3%

DoorDash rose in early trading after Deliveroo, the food delivery service based in London, said it heard from DoorDash about a possible cash offer to take over the company. It was most recently up 0.2%

So far, economic reports have mostly seemed to show the U.S. economy is still growing, though at a weaker pace. On Wednesday, economists expect a report to show that U.S. economic growth slowed to a 0.8% annual rate in the first three months of this year, down from a 2.4% rate at the end of last year.

But most reports Wall Street has received so far have focused on data from before Trump’s “Liberation Day” on April 2, when he announced tariffs that could affect imports from countries worldwide. That could raise the stakes for upcoming reports on the U.S. job market, including Friday’s, which will show how many workers employers hired during all of April.

Economists expect it to show a slowdown in hiring down to 125,000 from 228,000 in March.

The most jarring economic data recently have come from surveys showing U.S. consumers becoming much more pessimistic about the economy’s future because of tariffs. The Conference Board’s latest reading on consumer confidence will arrive on Tuesday.

In the bond market, Treasury yields held relatively steady. They’ve calmed since an unsettling, unusual rise rise in yields earlier this month rattled both Wall Street and the U.S. government. That rise had suggested investors worldwide may have been losing faith in the U.S. bond market’s reputation as a safe place to park cash.

The yield on the 10-year Treasury slipped to 4.24% from 4.29% late Friday.

In stock markets abroad, indexes were mixed across Europe and Asia. The CAC 40 in Paris rose 0.6%, but stocks slipped 0.2% in Shanghai.

Dollar Tree names chief supply chain officer

Walgreens’ former chief officer has started as ‘s chief supply chain officer effective Monday, the discount retailer announced. Roxanne Weng succeeds Mike Kindy, who is retiring.

Kindy joined the company in May 2023, according to the announcement. He worked in the retail supply chain field for more than 35 years.

Weng joins Dollar Tree with more than three decades of retail operational experience, mainly spent at , where she worked as a pharmacist and in store operations and supply chain.

Weng earned a degree in pharmacy from Purdue University, an MBA from the University of Phoenix and a master’s degree in supply chain management from Loyola University.

“Her proven expertise aligns perfectly with the Dollar Tree growth trajectory,” Mike Creedon, Dollar Tree’s CEO, said in a statement.

Kindy joined Dollar Tree rival  in 2008 as of distribution and was executive vice president of global supply chain from 2018 to 2021. He also held leadership positions at ConAgra Foods, Safeway and PricewaterhouseCoopers.

“Mike has been a driving force in retail supply chain for more than 35 years, and we’ve been fortunate to benefit from his deep expertise and steady leadership,” Creedon said. “From overseeing complex distribution networks to modernizing our supply chain strategy, his contributions have been instrumental in positioning our company for long-term success.”

In March, Dollar Tree announced it had reached a deal with Brigade Capital Management, a New York-based global asset management firm, and Macellum Capital Management, an investment firm with headquarters also in New York, to acquire its Family Dollar brand for about $1 billion after a decade of trying to make its acquisition of the bargain chain fit.

Dollar Tree operates 16,500 stores across 48 states and five Canadian provinces as of Feb. 1. Net sales for the year ending Feb. 1 were $17.6 billion, an increase of 4.7% over the previous year.

Connolly says this will be his last term in Congress

U.S. Rep. Gerry announced Monday that he will be stepping back as ranking Democratic member of the U.S. House of Representatives’ Oversight Committee and that this will be his final term in , as his cancer has returned after a brief remission.

In an email to constituents, the Democrat wrote, “The sun is setting on my time in public service, and this will be my last term in Congress.” In November 2024, he announced he had esophageal cancer.

The 75-year-old Connolly was first elected to Congress in 2008, and he served on the Fairfax County Board of Supervisors from 1995 to 2009, resigning to assume national office. Connolly was named the ranking member of the House Oversight and Government Reform Committee in January, and he has served on the Committee on Foreign Affairs since 2009.

Connolly currently represents Virginia’s 11th congressional district, which includes the city of Fairfax and most of Fairfax County.

“When I announced my diagnosis six months ago, I promised transparency,” he wrote. “After grueling treatments, we’ve learned that the cancer, while initially beaten back, has now returned. I’ll do everything possible to continue to represent you and thank you for your grace.”

U.S. Sen. Mark Warner issued a statement shortly after Connolly’s announcement: “Throughout his career, Gerry Connolly has exemplified the very best of public service — fiercely intelligent, deeply principled and relentlessly committed to the people of Northern Virginia and our nation.

“Whether it’s standing up for federal workers, advocating for good governance, or now confronting cancer with the same resilience and grit that have defined his life of public service, Gerry is one of the toughest fighters I know. I have no doubt that Gerry will continue to fight — for his health, for his community, and for the causes he believes in.”

Norfolk airport taps new COO in leadership shuffle

The Airport Authority announced last week that Melinda Montgomery will become its new and a , starting in early June.

Montgomery will be tasked with overseeing regulatory compliance and ensuring that various day-to-day operations at are efficiently run. She currently works at New Jersey’s Trenton-Mercer Airport, where she’s held various executive roles for more than 25 years, including the past 13 years as airport manager. She plans to retire from the position shortly before joining Norfolk.

“I’m extremely excited to enter this new chapter of my career at an airport that’s experienced tremendous growth in passenger volume while also improving and expanding its physical infrastructure,” Montgomery said in a statement. “The authority’s organization is also adapting to meet future needs, and I look forward to playing a role in effecting those changes for the team’s continued success.”

In her new role, Montgomery’s duties will include oversight of its operations, field maintenance and security and public safety departments. She will also lead developing and maintaining operational documents such as the airport certification manual, airport security program, wildlife hazard management plan and airport emergency plan. She will also ensure compliance with some Federal Aviation Administration requirements.

Montgomery’s new job is the result of a shuffling of positions at the airport. Executive Vice President and Chief of Staff Steve Sterling will retire at the end of June,  spokesperson Chris Jones said, and his duties are being reassigned. Shelia Ward, vice president and chief operations officer, will assume some of Sterling’s duties and will take on a new role as chief administrative officer. The position she’s leaving will be filled by Montgomery.

Jones said some of Sterling’s other duties will be absorbed by Steve Djunaedi, vice president and chief commercial officer. He joined the organization at the start of the year.

Montgomery has a bachelor’s degree in aeronautics and management from New York’s Dowling College, and later obtained a MBA from Embry-Riddle Aeronautical University.

The airport announced earlier this year that it recorded a third consecutive year of record-breaking passenger traffic last year, with 4.86 million passengers in 2024, up from 4.55 million in 2023. Allegiant, American, Breeze, Delta, Frontier, JetBlue, Southwest, Spirit and United currently offer service from the airport.

Commanders and Washington agree to a deal to build at RFK Stadium site

WASHINGTON (AP) — Washington’s franchise is set to return to the nation’s capital as part of an agreement between the organization and the District of Columbia government to build on the site of the old .

Mayor Muriel Bowser said Monday the District of Columbia and the -based Commanders reached an agreement to construct a new home for the football team in the city at the place the franchise called home for more than three decades. The agreement is pending D.C. City Council approval.

The team and the mayor announced the move in a video posted on social media, narrated by Super Bowl-winning quarterback Joe Theismann, who spoke about his experience playing at RFK Stadium and how the new one will benefit the city.

“The time is now,” Theismann said. “Let’s bring Washington back to D.C.”

Further details on timing and funding are expected later in the day. Bowser and team officials are scheduled to hold a news conference at 11 a.m. EDT.

Commanders ownership, led by Josh Harris, has been considering places in Washington, Maryland and Virginia since buying the team from Dan Snyder in 2022. The most recent progress came when  passed a bill transferring the RFK Stadium land to D.C. that was signed by former President Joe Biden in early January, after lobbying on Capitol Hill by Harris and NFL Commissioner Roger Goodell late last year.

Washington has played in Landover, Maryland, since moving there in 1997. The Commanders’ lease at Northwest Stadium in Landover runs through 2027. Harris has called 2030 a “reasonable target” for a new stadium.

The team played at RFK Stadium, 2 miles (3.22 kilometers) east of the U.S. Capitol, from 1961-96 before moving to Maryland. Harris and several co-owners, including Mitch Rales and Mark Ein, grew up as Washington football fans during that era, which included the glory days of three Super Bowl championships from 1982-91.

Virginia lieutenant governor candidate stays in race, defying Youngkin

SUMMARY:

  • Virginia says he will stay in race despite allegations of “disturbing content” posted on social media
  • called him to request he step down Friday
  • Openly gay Reid says he didn’t post nude images on Tumblr; they are part of “coordinated” attempt to force him off statewide ticket
  • Reid says he plans to consult attorneys

In a video posted on X Friday, John Reid, a former conservative radio talk show host and candidate for Virginia’s lieutenant governor, called allegations that he posted nude images on a Tumblr account attributed to his Instagram handle “a total fabricated internet lie,” adding that Gov. Glenn Youngkin called him to demand Reid step down from the GOP statewide ticket.

He does not plan to leave the race, Reid said in the five-minute video posted on his X account late Friday afternoon. He also accused Youngkin of demanding his resignation “without even showing me the supposed evidence or offering me a chance to respond. I did not accept that, and I deeply resent it.”

He alleged that other, unnamed conservatives had staged a “coordinated character assassination attempt to force the first openly gay candidate off the Republican statewide ticket,” and that someone had used Reid’s Instagram handle to create a page on Tumblr, where Reid said someone posted photos of nude people — not including him.

“It’s not my place to judge others, so I won’t, but I haven’t publicly performed or publicly posted anything pornographic,” he said. “Have I seen porn? Yes. Have I had one-night stands? Yes.”

The Times-Dispatch and The Washington Post shared a statement from Youngkin’s PAC: “The Governor was made aware late Thursday of the disturbing online content. Friday morning, in a call with Mr. Reid, the Governor asked him to step down as the Lt. Governor nominee.”

Standing in front of framed photos of Youngkin and the current lieutenant governor and GOP candidate for governor, Winsome Earle-Sears, Reid said this wasn’t the first time he had been targeted, referring to a post on Facebook that alleged he “likes little boys” that he fought to have removed from the social media platform. He said that Republicans and Democrats had attacked him over the years.

Reid noted that since his opponent for the Republican nomination, Supervisor Pat Herrity, dropped out of the race this week due to a heart ailment, Reid has experienced “nonstop harassment.”

A former WRVA radio talk show host, Reid alleged that earlier in the week “a local religious activist” contacted him to say that they had seen photos of Reid watching a downtown Richmond drag show — saying the pictures would tank his campaign, as well as “destroy his life,” and that Reid should drop out of the race.

While saying that drag shows aren’t for children, Reid said that he was an adult and that adults have freedom to watch drag or similar entertainment.

“I will not bow down to the establishment,” Reid said in the video. He closed the video by saying that he would be consulting with lawyers and that he would have more to say in the future. The Richmonder, a Richmond-based online news outlet, broke the story Friday afternoon.

According to Earle-Sears’ campaign website, she is slated to appear with Youngkin, Reid and Attorney General , who is seeking a second term, in a rally April 30 at Atlas 42 in Glen Allen. The “Ever Forward” rally promotes the debut of the “2025 statewide slate” for the .

Youngkin’s office and his Spirit of Virginia PAC did not immediately respond to Virginia Business’ requests for comment Friday, and nor did Earle-Sears’ campaign.

Flood insurance costs rise with newer risk rating

SUMMARY:

  • Change to rating standard for National Program in 2021
  • Critics think it drove up prices
  • Lawsuit challenged rising flood insurance rates but was dismissed
  • Virginians will see a 45% increase in flood insurance rates

Joshua Carroll owns Valley Auto Spa in , one of the many businesses and homes in impacted by .

The storm was Category 4 when it hit the Florida coast and blew north, causing at least $800 million in damages in seven states, according to a recent Federal Emergency Management Agency report.

“Before I knew it, it was about a foot deep,” Carroll said. “And then the foot turned into two, and two turned into three in some places, and I got all of the stuff I could out before we had to leave.”

Carroll traveled to Asheville, North Carolina to help victims after seeing social media posts about extensive flood damage. His first interaction was with an elderly couple whose generator was stolen, and the woman left without electricity for her oxygen supply, he said. He helped get her a new generator through a church.

“This place was decimated,” Carroll said.

The damage was so extreme in Asheville that Carroll shut down his business for a month to go help more affected victims. Flood insurance is an important safety net, but only three percent of Virginia homeowners have it, according to the state’s Department of Conservation and Recreation, or DCR. Federal changes to the evaluation parameters of flood insurance could make it more expensive, and at a time when a growing number of housing units are at risk of flooding.

manages the National Flood Insurance Program, or NFIP, which supplies flood insurance to the public and businesses through a network of insurance providers. The agency began implementing a rating standard known as 2.0 in October 2021, and completed its implementation in April 2023.

Risk Rating 2.0

The previous system relied on measurements of elevation within flood zones to determine rates, according to FEMA. The new rating uses a property’s structure, home value and location to determine rates. The new rate uses “industry best practices” and “cutting-edge technology” to better determine rates for flooding insurance, with FEMA saying it has decades more information to utilize.

The new rating intended to more appropriately spread the risk across purchasers of the policies, according to planning director Sarah Stewart with the regional planning commission Plan RVA. It factors in how a larger, very costly home may have a higher burden to pay than a smaller, less costly home.

“It was an attempt to better factor that in, to better share the risk across policies,” Stewart said.

Virginia residents can join the Community Rating System through NFIP to help reduce the cost burden on policyholders, according to Stewart.

Communities that implement flood protection policies beyond minimum NFIP participation requirements get “points” which can improve the rating and help with policy discounts. Examples of activities include citizen-education programs, preserving open space in the floodplain, requiring higher standards and enforcing stormwater regulations, according to DCR.

Critics think the new rating failed to show how it would reduce premiums, and that it drove up prices.

“It didn’t sufficiently reward proactive protection,” Carroll said. “I watched it destabilize entire neighborhoods because everything became extremely unaffordable, even more unaffordable than it already was.”

Virginia Attorney General , along with other state attorney generals agree. Miyares in 2023 joined Louisiana v. Mayorkas, a lawsuit that states FEMA is no longer living up to its promise of affordable insurance if states, local governments and citizens undertook “expensive flood mitigation projects.”

Policyholder premiums “are dramatically increasing,” by 1,000% in some areas, the lawsuit stated. Additionally, the new policy method disrupts the housing market and drives up prices.

The court dismissed the lawsuit in November last year, two months after Helene struck. The court acknowledged potential mitigation costs for states, but did not think there was enough evidence to prove the claim.

“Everyone I spoke to seemed to have experienced a large increase in their flood insurance,” Carroll said.

The increase was sometimes up to 15% higher, which doesn’t help people who need insurance, Carroll said. Nor does a “one-size-fits-all” approach.

“There’s so much fine print, there’s nothing that’s just cut and dry anymore,” Carroll said. “You’ll try to file a claim and they’ll be like, ‘on page 300, section four, sub code B, we can’t cover this.’”

Cost of Flood Protection

Virginia residents will see a 45% increase in flood insurance rates with the new method, according to the insurance broker Policygenius. The average cost is $743 annually, and could rise to an average of $1,077. Virginia’s housing count was 3.7 million in 2023, according to the U.S. Census. Over 28% of homes in the state could face some level of flood risk in the next 30 years, according to a 2020 First Street Foundation report. The organization studies flood risks across the U.S.

Flood risk is especially heightened in the area, where sea level rise could help drive a 60% increase in flood vulnerability over the next 30 years, according to First Street.

Local leaders have worked to address and mitigate flood risks, although a $20 million Environment Protection Act grant to help a Hampton neighborhood be more flood resilient could be canceled as part of the federal government efforts.

Community Support After returning from helping in Asheville, Carroll received help from the Savage Freedoms Relief Organization and the Love Thy Neighbor organizations. Eight car loads of people showed up to rebuild his business.

“I had people come from my community and pressure wash the building out and in the blink of an eye, I was once again reminded how incredible the Appalachian culture is and the Appalachian people are,” Carroll said.

Carroll has no regrets about the days spent helping others, working on logistics and collecting donation money.

“I just really wanted to continue to help and prepare for whatever disaster may come next,” he said.

Capital News Service is a program of Virginia Commonwealth University’s Robertson School of Media and Culture.

FiberLight to acquire York County-based fiber provider

Georgia-based optic networks provider announced last week it has entered into a definitive agreement to acquire -based .

The companies did not disclose financial terms. The transaction is expected to close in the second quarter of the year, once customary requirements have been met.

Metro Fiber is a fiber provider serving carriers and public institutions, with an underground network spanning over 200 miles from , near , to the major subsea cable landing station in . The Virginia Beach cable landing station supports transatlantic and United States-Latin American traffic.

FiberLight says the transaction will strengthen its existing network in Virginia.

“This transaction marks a significant milestone for FiberLight as we expand our network to reach Virginia Beach, which hosts the largest defense installation outside of the Pentagon and the largest [cable landing station] in the U.S.,” FiberLight CEO Bill Major said in a statement. “The MFN assets are a natural extension of our existing network and will allow us to provide customers with reliable, high-speed connectivity services to various organizations in Virginia.”

Virginia Beach is one of a few East Coast landing spots for subsea high-speed internet transmission cables, with a data center and cable landing station where subsea telecommunications cables MAREA, BRUSA and DUNANT connect Virginia to points in Europe and South America.

FiberLight was founded in 1993 and is headquartered in Alpharetta, Georgia. It has more than 19,000 route miles of network throughout the United States, including locations in Washington, D.C., as well as in Virginia, Maryland, Georgia and Texas. It provides service at Mexican border crossings as well as the Latin America gateway.

The Breeden Co. completes $43M apartment complex in Norfolk

Virginia Beach-based real estate development firm announced April 24 that it has completed of a 198-unit multifamily community in , located near .

Breeden was the general contractor on the $43 million project, located at 1060 Kempsville Road. Known as Lake Taylor Pointe , the development has carriage house-style buildings as well as a resort-style pool, outdoor meeting areas, a fitness center, arcade room and bark park for dogs.

“We are incredibly excited to be a part of the Lake Taylor community,” Breeden CEO Tim Faulkner said in a statement. “Lake Taylor Pointe evokes feelings of serenity and seclusion while also providing residents with the convenience of easy access to employers, local retailers and more.”

Breeden Construction President Brian Revere said in a statement the project was delivered “on time and on budget.”

According to the Lake Taylor Pointe website, the units range between 723 and 1,383 square feet.

Headquartered in and founded in 1961, The Breeden Co. has a portfolio of over 25,000 apartments and 2 million square feet of retail and office that have been owned, managed and developed.