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Chesapeake City Council rejects massive data center

SUMMARY:

  • unanimously denied a rezoning request that would have allowed a 350,000-square-foot in the Great Bridge area
  • Developer considering alternate sites
  • Residents voiced concerns about traffic, noise, pollution, environmental impact

Following an outcry from hundreds of residents, Chesapeake City Council unanimously voted Tuesday night to deny a rezoning request that would have allowed the construction of ‘ first major data center.

Developer Doug Fuller, president of Emerald Lakes Estates, wanted to build the 350,000-square-foot data center on a 22.6-acre property in the Great Bridge area of Chesapeake, on the west side of Centerville Turnpike, south of Etheridge Manor Boulevard. However, for the project to get off the ground, he needed the land rezoned from agricultural to light industrial use.

Had the project gone forward, the center would have been 35 feet tall, employed 30 to 50 people, and been manned 24 hours a day.

But after about two-and-a-half hours of citizens speaking against the project Tuesday night, the council decided to reject Fuller’s proposal, also declining a request to delay the vote until August. Mayor Rick West was absent, and council member Daniel Whitaker recused himself from the vote, saying he had provided professional services to Fuller.

On Wednesday, Fuller said via text that he is considering alternative sites for the project.

Calling it a “disappointment,” Fuller said that Chesapeake residents “spoke loud and clear that they oppose rezoning agriculture land to industrial. They want it to remain agriculture for now, and I will research and find what is the highest and best economic use for the property with its current A1 zoning.

“It is important for Hampton Roads have a commercial size data center and my goal was to bring one to our city so it could benefit from the millions of dollars in tax revenue. Since the denial, I have had two localities reach out to me and asked to be considered for a like project. I am considering all alternate site options at this point.”

Before voting, City Council member Amanda Newins asked Deputy City Manager Brian Solis if the city had offered to swap one of its properties, which would be more appropriate for a data center, with Fuller. Price said there may be potential to swap property, but that so far Fuller has not expressed interest in exploring that.

“The reason that I am not supporting this project is because I think it’s completely incompatible with the location,” Newins said. “I think there is viable use for that property outside of what’s being proposed that is not on top of residential property in that area. I think that’s been abundantly clear from the community that’s here today, that shared with us, that that is not compatible with the community.”

In the weeks leading up to Tuesday’s vote, the proposal had drawn fierce opposition from hundreds of residents, who spoke against it through petitions, emails and public hearings.

Complaints included concerns about increased traffic, noise, light pollution, the site being too close to residential homes and schools, disruptions caused by construction, lack of sufficient public input, loss of agricultural land and green space, environmental concerns and fears that the center might cause blackouts. Many also voiced worries that the city’s first data center would open the doors to more and other .

Resident Kelli Gossmann, who lives near the proposed data center site, said Tuesday night the data center would directly impact her. She added that residents in , where the data center industry is booming, have repeatedly complained about data centers causing a myriad issues.

“For me, this means my favorite view of the sunrise will be permanently blocked by a massive industrial building,” Gossmann said of the proposal. “Words cannot express my personal shock and dismay.”

Navy veteran Jennifer Anderson, who lives in a neighborhood near the site, said she chose her home for its beauty, the sound of birds chirping and the ability to look at the stars at night. However, she said she believed if the data center were approved, more would come, “and all of these things we love about our new home will either be reduced greatly or removed entirely.”

“Can you promise the light pollution from this one and the imminent building of more won’t drown out the stars,” she asked the council. “Can you promise the constant humming won’t make it unbearable to enjoy the park across the street or even our own front and backyard? Can you promise my children won’t develop health issues?”

The planning commission last month voted 6-1 to recommend denial of the rezoning, with several saying they wanted more time to study the long-term impact of the data center on the city.

Tuesday’s denial from the council drew loud applause and a standing ovation from many members of the audience.

“The people do not want it there,” said Councilor Patricia “Pat” King, when justifying her vote. “It is your community, and we are your voice, and you have requested that we not allow it. So I stand by you and your request.”

US unemployment ticked down, hovering at historically low levels

SUMMARY:

  • Weekly declined to 245,000 from 250,000.
  • Four-week average rose to 245,500, highest since August 2023.
  • fell to 1.95 million for the week of June 7.
  • Uncertainty over Trump’s trade policies clouds economic outlook.

WASHINGTON (AP) — The number of Americans applying for dipped to 245,000 last week, hovering at historically low levels, the Labor Department said Wednesday.

U.S. jobless claims ticked down from 250,000 the week before. Economists had expected last week’s claims to match that at 250,000.

The four-week average of claims, which smooths out week-to-week volatility, rose to 245,500, the highest since August 2023.

The number of Americans collecting benefits the week of June 7 slid to 1.95 million.

Weekly unemployment claim are a proxy for layoffs and mostly have stayed within a healthy band of 200,000 to 250,000 since the economy recovered from a brief but painful COVID-19 recession in 2020, which temporarily wiped out millions of jobs.

In recent weeks, however, claims have stayed at the high end of range, adding to evidence that U.S. job market is decelerating after years of strong hiring. So far this year, employers are adding a decent but far from spectacular 124,000 jobs a month, down from an average 168,000 last year and an average of nearly 400,000 from 2021 through 2023.

The hiring slowdown is partly the drawn-out result of 11 interest rate hikes by the in 2022 and 2023. But Trump’s aggressive and often-erratic trade policies — including 10% taxes on imports from almost every country on earth — are also weighing on the economy, paralyzing businesses and worrying consumers who fear they’ll mean higher prices.

Carl Weinberg of High Frequency Economics is worried that claims remain elevated compared with recent years, when employment has remained very low by historical standards.

“We believe firms have been ‘hoarding’ workers to ensure that they don’t lay off skilled and trained workers by mistake, especially with the still very close to full employment,” Weinberg wrote. “With uncertainty still high … companies have remained hesitant about layoffs. That may be changing.”

The Fed, satisfied that an was coming down, cut rates three times last year. But the central bank has turned cautious in 2025, worried that Trump’s will rekindle inflationary pressures. The Fed is expected to leave rates unchanged as it wraps up a two-day meeting Wednesday.

Average long-term US mortgage rate eases to 6.81%, the third consecutive weekly decline

SUMMARY:

The average rate on a 30-year U.S. mortgage eased for the third week in a row, a welcome trend for prospective at a time when elevated borrowing costs remain a drag on the housing market.

The long-term rate fell to 6.81% from 6.84% last week, mortgage buyer said Wednesday. A year ago, the rate averaged 6.87%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell. The average rate eased to 5.96% from 5.97% last week. A year ago, it was 6.13%, according to Freddie Mac.

Mortgage rates are influenced by several factors, from the ‘s interest rate policy decisions to bond market investors’ expectations for the economy and . The key barometer is the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

The 10-year Treasury yield was at 4.35% at midday Wednesday, down from 4.58% just a few weeks ago.

The average rate on a 30-year mortgage has remained relatively close to its high so far this year of just above 7%, set in mid-January. The 30-year rate’s low point this year was in early April when it briefly dipped to 6.62%.

With the latest decline, the average rate is now back to where it was in mid-May, reflecting a recent pullback in bond yields.

High mortgage rates can add hundreds of dollars a month in costs for borrowers and reduce their purchasing power. That’s helped keep the U.S. housing market in a sales slump that dates back to 2022, when mortgage rates began to climb from the rock-bottom lows they reached during the pandemic.

Last year, sales of previously occupied U.S. homes sank to their lowest level in nearly 30 years. Sales remain weak this year, most recently dampening the spring homebuying season.

Elevated borrowing costs are also squeezing the new-home market. Homebuilders broke ground on fewer homes last month than economists expected, the government reported Wednesday.

A closely watched measure of homebuilder sentiment sank this month to its third-lowest reading since 2012, as builders’ sales expectations in the next six months and declined.

Many homebuilders have been offering incentives such as mortgage rate buydowns to entice prospective home shoppers. Many are also lowering prices, according to a survey released this week by the National Association of Home Builders.

Home shoppers who can afford to buy at current mortgage rates are also benefiting from more homes on the market when compared with recent years.

“While home prices remain elevated, market conditions are gradually tilting in favor of buyers, thanks to rising inventory, longer time-on-market, and climbing price reductions,” said Hannah Jones, senior economic research analyst at Realtor.com.

Economists generally expect mortgage rates to stay relatively stable in the coming months, with forecasts calling for the average rate on a 30-year mortgage to remain in a range between 6% and 7% this year.

Wall Street rises as oil prices ease and the countdown ticks to the Fed’s decision on interest rates

SUMMARY:

  • , Dow, and Nasdaq all posted morning gains.
  • Fed expected to hold steady; projections due later.
  • Oil prices dip after Trump comments on Iran’s nuclear program.
  • Economic data mixed; fell, declined

NEW YORK (AP) — U.S. stocks are rising on Wednesday as Wall Street waits to hear where the  may be taking interest rates.

The S&P 500 was 0.5% higher in morning trading. The Industrial Average was up 244 points, or 0.6%, as of 10:30 a.m. Eastern time, and the Nasdaq composite was 0.6% higher.

Some of the strongest moves were again in the oil market, where crude prices dropped after President Donald Trump said it’s not “too late” for Iran to give up its nuclear program. Oil prices have been yo-yoing for days because of rising and ebbing fears that Israel’s fighting with Iran could disrupt the global flow of crude.

A barrel of benchmark U.S. oil dropped 1.2% to $72.33. Brent crude, the international standard, fell 2.3% to $74.65.

The headline event for the day will likely arrive at 2 p.m. Eastern, when the Federal Reserve is set to announce its latest move on interest rates. The nearly unanimous expectation is that it will hold rates steady, as it’s been doing for all of this year after cutting through the end of 2024.

More important will be what the Fed says about the future. Officials will release projections for where they see the economy, inflation and interest rates heading in upcoming years. The widespread expectation on Wall Street is that the Fed will cut its main interest rate at least two times by the end of 2025, though that has been weakening a bit recently as oil prices have climbed and put upward pressure on inflation.

A cut in rates could make mortgages, credit-card payments and other loans cheaper for U.S. households and businesses, which in turn could give the overall economy a boost. But lower rates can also fan inflation higher.

Besides the threat of higher oil prices because of the fighting between Israel and Iran, the Fed has been concerned about the potential for President Donald Trump’s tariffs to both hurt the economy and to drive inflation higher. That’s been the main reason it’s been on hold with interest rates this year.

So far, inflation has remained relatively tame, and it’s near the Fed’s target of 2%. But economists have been saying it may take months more to feel the full effects of tariffs.

A pair of reports on the came in mixed on Wednesday. One said fewer workers applied for unemployment benefits last week, which could be an indication of lightening layoffs. But a second report said that homebuilders broke ground on fewer homes last month than economists expected. That could be a sign that higher are chilling the industry.

On Wall Street, solar stocks rose to recover some of their sharp losses from the day before, when worries flared about Congress possibly phasing out tax credits for solar and other alternative energy sources. First Solar rose 1.3%, but it’s still down 16.8% for the week. climbed 3.2% to trim its loss for the week to 20.9%.

rose 3.2% after the steelmaker based in Charlotte, North Carolina, said it expects to report growth in profit for all three of its operating groups in the second quarter. It said it benefited from higher selling prices at its sheet and plate mills, among other things.

In the bond market, Treasury yields edged a bit lower.

The yield on the 10-year Treasury fell to 4.37% from 4.39% late Tuesday. The two-year Treasury yield, which more closely tracks expectations for what the Fed will do with its overnight interest rate, held steady at 3.94%.

In stock markets abroad, indexes were mixed across Europe and Asia.

Tokyo’s Nikkei 225 rose 0.9%, and Hong Kong’s Hang Seng fell 1.1% for two of the bigger moves.

Traditional Medicinals moves forward with $47M plant in Franklin County


SUMMARY:

While out for lunch Tuesday, Ronnie Thompson, chair of the Franklin County Board of Supervisors, was approached by a citizen.

“He said, ‘When y’all going to do something at that business park?’” Thompson recalled at the board’s Tuesday evening meeting. “And I said, ‘Soon. I hope.’ That was my answer.”

Board members Tuesday unanimously voted to finalize a performance agreement with California-based wellness tea company Traditional Medicinals, which plans to schedule groundbreaking soon on a $47 million manufacturing and processing plant in Franklin County’s . The project is expected to create 57 jobs with an average annual salary of more than $70,657, according to Christopher Whitlow, county administrator.

A company famous for teas with names like Throat Coat and Cup of Calm and founded in Sebastopol, California, a town founded by hippies, Traditional Medicinals has flirted with the moonshine capital of the world before.

In early 2020, Traditional Medicinals announced plans to build an operation that then was expected to cost $29.7 million. The project got put on pause during the pandemic.

Company co-founder apologized for the wait at the meeting.

“We’ve been taking our time with it,” he said. “And now, we’re ready, and we have committed, as you heard, a significant investment, and we’re going to grow here.”

Some footings will be constructed this year and construction on the Traditional Medicinal facility is expected to be completed in 2026, according to Whitlow.

Representatives from Interactive Design Group, a Roanoke architecture firm, and Parker Design Group, a Roanoke civil engineering firm, will help to build the company’s complex and stood at Tuesday’s meeting. Current Traditional Medicinals CEO Joe Stanziano and Gary Gatton, a previous CEO and current project manager for the Virginia site, also attended.

“I was so pleased that they’re using Franklin County resources, our Franklin County residents as architects, as engineers,” Whitlow said of Traditional Medicinals. “We just look forward to continue the good work and partnership as we break ground just in a matter of weeks.”

When Sadler addressed the meeting, he noted the invocation held at the beginning by Tommy Shepherd from Stuart Church of Living Water.

Traditional Medicinals, he said, also likes to begin their meetings with an invocation, which he described as “an invocation of gratitude.”

“We don’t take this work for granted,” he said. “We believe that we’ve been called to do this work. It’s important work. We feel like we’ve been called here to Franklin County.”

The members of the board were all smiles after the announcement Tuesday.

“This is for you, Buddy,” Thompson said in honor of the citizen who approached him at lunch. “It’s good news.”

Reston-based ASRC Federal names new chief strategy officer

Reston-based government contractor announced last week that Ann Stevens has joined the company as its .

In the role, Stevens will work closely with senior leadership and spearhead efforts to refine and progress the company’s enterprise strategy. ASRC Federal is a federal government services subsidiary of Arctic Slope Regional Corp., an Alaska Native corporation owned by over 14,000 Iñupiat shareholders. Its family of companies provides engineering, IT, infrastructure, logistics, analytics and professional services support.

“It’s an exciting time to be joining ASRC Federal, and I am both proud and humbled to play a part in shaping the future here,” Stevens said in a statement.

As CSO, Stevens will be responsible for aligning ASRC Federal’s operating groups, enterprise technology investments and communications strategies as they support challenges and changing customer needs. She will also oversee the enterprise program management and process excellence functions.

She previously worked for more than 20 years at Boeing, where she led programs and teams across the federal defense and civilian government markets. According to her LinkedIn profile, Stevens has a bachelor’s degree in aerospace, aeronautical and astronautical engineering from Virginia Tech and a master’s degree in organizational sciences from George Washington University.

“Ann brings a wealth of knowledge, experience and strategic insight to ASRC Federal during a time of significant opportunity and innovation at our company,” ASRC Federal President and CEO said in a statement. “Her expertise will be instrumental in supporting the evolving needs of our federal customers and securing a bright and enduring future for our Alaska Native shareholders.”

ASRC Federal has more than 8,500 employees and operations spanning 44 states. The company did not immediately return requests for comment.

Updated: Jones, Hashmi win Democratic primaries for AG, lieutenant governor

Updated June 18

SUMMARY:

• Virginia state Sen. and former Del. secure Democratic nominations for , respectively
• Hashmi is first Indian American and Muslim to win nomination for statewide office in Virginia
• They face Republican Attorney General Jason Miyares and lieutenant governor nominee John Reid

RICHMOND (AP) — The candidates for Virginia’s lieutenant governor are set to make history after Sen. Ghazala Hashmi won the Democratic nomination for lieutenant governor on Wednesday.

Hashmi is the first Muslim and the first Indian-American to be nominated to appear on the ballot for a Virginia statewide office. She defeated five other candidates, including former Richmond mayor Levar Stoney and state Sen. Aaron Rouse, to secure the nomination in a razor-thin primary race.

Hashmi will now face Republican John Reid, the first openly gay man to receive a major party’s endorsement for statewide office in Virginia, who became the de-facto nominee after his primary opponent left the race.

Her victory rounded out the Democratic ticket ahead of the November general election. It comes after former Del. Jay Jones became the party nominee for attorney general late Tuesday.

Virginia’s off-year elections typically draw national attention as a possible bellwether for politicians as they head into midterms in 2026.

Democrats held down-ballot races for their statewide ticket, which is being led by U.S. Rep. Abigail Spanberger, the party’s nominee for governor. The former congresswoman, whose candidacy managed to avoid prospective primary challengers, will go up against Republican Lt. Gov. Winsome Earle-Sears, the only person to qualify for the GOP primary.

Conservatives did not hold statewide primaries this year, with only one candidate in each statewide contest advancing to the general election ballot.

Earle-Sears became the Republican gubernatorial nominee after conservatives Dave LaRock and Amanda Chase failed to collect enough signatures to qualify for the ballot. Both LaRock and Chase initially challenged Earle-Sears for not being fully aligned with the White House.

Reid, a conservative talk-radio host, secured the Republican nomination for lieutenant governor despite intraparty quarreling over whether he was tied to a social media account reposting pornography, a charge he vehemently denied.

Virginia Attorney General Jason Miyares sailed to his spot on the ballot after announcing his reelection bid.

Hashmi’s political career has been marked by its fair share of firsts: she was the first Muslim woman and the first South Asian American in Virginia’s upper chamber.

She emigrated from India to Georgia when she was four years old, later moving to Richmond after getting a doctorate in American literature. She spent most of her career as a professor, first at the University of Richmond and then at Reynolds Community College.

The Democrat managed to distinguish herself by touting her legislative chops. Hashmi began her career in the Virginia Senate six years ago after ousting incumbent Republican Sen. Glen Sturtevant. She was reelected to her seat in 2023.

In the Senate, Hashmi put forth bills establishing Virginians’ right to contraception, which passed both chambers but were vetoed by Republican Gov. Glenn Youngkin.

Del. Jay Jones, D-Norfolk, gives remarks during the Virginia Democratic attorney general debate, Saturday, May 15, 2021 in Richmond. (Shaban Athuman/Richmond Times-Dispatch via AP, File)

Former delegate defeats county prosecutor

Former Del. Jay Jones will look to be the face of legal resistance to President Donald Trump in Virginia after winning Tuesday’s closely watched Democratic state primary for attorney general.

Jones will face Republican Attorney General Jason Miyares in the November general election. His victory was a critical step for Democrats in rounding out their ticket ahead of a bellwether election later this year.

Jones won the Democratic nomination in the race for attorney general despite his opponent, Henrico County Commonwealth’s Attorney , casting him as lacking criminal prosecutorial experience.

Jones, who represented Norfolk in the House of Delegates for four years, comes from a long line of politicians. His father was also a delegate, and his grandfather was the first Black member of the Norfolk School Board. Jones previously ran for attorney general in 2021 but lost the primary to Democratic incumbent Mark Herring.

He defeated Taylor, who has served more than a decade as the top prosecutor in the suburbs outside Richmond after flipping the open seat in 2011.

On the campaign trail, Jones touted himself as a candidate with the experience best suited for the job: He had worked as an assistant attorney general in Washington, where he said he had litigated consumer protection cases.

If elected attorney general, he also vowed to push back against Trump in court.

“I am ready for this fight and to win this November,” Jones said in a victory statement.

Six Democrats sought to be lieutenant governor

Stoney touted his ties to the Democratic Party and experience working under former governors Mark Warner and Terry McAuliffe. U.S. Transportation Secretary Pete Buttigieg endorsed his campaign in June.

Hashmi is also from the Richmond area, representing part of the city and suburbs. Hashmi has pushed reproductive health in her bid and has been endorsed by abortion rights political action committees.

State Sen. Aaron Rouse, from Virginia Beach with ties to Southwest Virginia, has also highlighted his legislative accomplishments.

Prince William County School Board Chair , former federal prosecutor Victor Salgado and retired U.S. Department of Labor worker are from .

Lateef, an eye surgeon, has honed in on education and health care. Salgado has stressed the importance of strengthening democracy, and Bastani has emphasized labor rights.

Downballot races in the House of Delegates

All 100 seats of the House of Delegates are up for election in November, and some nomination contests took place in Virginia’s more competitive districts.

Democrat May Nivar won her primary race and will be taking on Republican incumbent Del. David Owen in a Richmond-area district that House liberals are vying to flip.

Democrat Lindsey Dougherty won her primary race and will battle Republican Del. Carrie Coyner in a Petersburg-area district.

Republicans and Democrats also had separate primaries to fill a competitive seat in the area, which opened after Republican Rep. Baxter Ennis announced his retirement. Republican Michael Lamonea and Democrat Karen Carnegie won their respective primaries for that seat.

___

Olivia Diaz is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.

Medallia to invest $2M in Tysons, create 100 jobs

Global customer and employee company announced Tuesday that it’s investing $2 million to open a new in later this year.

Medallia’s new headquarters, scheduled to open in late 2025, will be located at a 31,360-square-foot space at Tysons Tower — one of the tallest buildings in Tysons at 22 stories and situated across from Tysons Corner Center.

The California-based company says its new East Coast office will be a central hub for Medallia’s senior leadership, providing a key location for expanding artificial intelligence and analytics talent and creating “a dynamic space” for hosting clients. The office includes a rooftop space, arcade games and modern technology.

Medallia plans to add 100 jobs over the next two years.

“Tysons will play a critical role in the next chapter of our growth,” said Medallia CEO Mark Bishof in a statement. “The new location provides space to deepen our relationships with key customers, expands our leadership presence, and gives us access to world-class talent in data science, AI and experience management.”

Medallia has an enterprise experience management platform, Medallia Experience Cloud, that captures billions of signals across voice, video, internet of things, digital, social media and corporate-messaging tools interactions. The company uses proprietary AI and machine learning technology to reveal insights about customers and help businesses develop strategies and improve decision-making.

“We are proud that Medallia is expanding their footprint in the commonwealth,” said in a statement. “Their investment not only brings 100 quality jobs to Virginia but also reflects our reputation as a hub for innovative, tech-driven businesses. By helping organizations improve how they listen to and support their employees and customers, Medallia is setting a strong example of how technology can enhance workplace culture and performance.”

Founded in 2001, Medallia also has a West Coast and global headquarters in Pleasanton, California, along with global offices in Buenos Aires, London, Madrid, Mexico City, Paris, Prague, Tel Aviv, Tokyo and Toronto. It has more than 2,000 employees and 2,600 customers.

Medallia did not immediately return requests for comment.

Broadband installation statute unconstitutional

Summary

  • Supreme Court of Virginia rules unconstitutional
  • Law allowed installation of fiber optics on railroad land without proving
  • Court says private companies can’t use  powers
  • Ruling may slow projects and increase installation costs

A Virginia statute that allowed internet providers to run across railroad property without showing the installation was for public use is unconstitutional, because it permits a taking of private property, the Supreme Court of Virginia has ruled.

Va. Code § 56-16.3 was enacted in 2023. Subsequently, sought to install fiber optic cables across ‘s railroad tracks.

Norfolk Southern challenged the constitutionality of the statute, arguing that it violated Article I, Section 11 of the state constitution.

The State Corporation Commission disagreed and allowed Cox to proceed with the installation. Norfolk Southern appealed to the state’s high court.

In an opinion authored by Justice Teresa M. Chafin, the Supreme Court of Virginia held that allowing Cox to install fiber optic cable under the train tracks meant the cables “would occupy a defined space for an indefinite period of time [and such] a physical occupation is a taking.”

Further, Chafin continued, “the taking at issue … is not for a public use. Cox is a private, for-profit broadband service provider. It is not a government entity, public service corporation or public service company. Therefore, Cox cannot exercise the power of eminent domain for a ‘public use,’ under either Article I, Section 11 of the Constitution of Virginia or Code § 1-219.1.”

The 11-page decision is Norfolk Southern Railway Company v. State Corporation Commission (VLW 025-6-015).

Slowing down broadband?

Rachel Yates, a Glen Allen-based attorney who specializes in appellate litigation, said that there will likely be arguments that the decision might slow down broadband service project timelines and may increase the costs.

But, she said, “this decision is based on Virginia’s Constitution and Code Section 1-219.1. The court was arguably simply applying the law that Virginia voters bargained for.”

John Byrum and Elaine McCafferty, attorneys for Norfolk Southern, did not respond to a request for comment. Virginia’s Office of the , which represented the SCC, declined to comment.

A Cox spokesperson said in a statement that the company “remains committed to connecting all Virginia residents to high-speed internet and will continue to work with the railroads to ensure that we can access customers on all sides of railroad crossings.”

Underground cables

In early 2024, Cox Communications filed three applications to install fiber optic cables across Norfolk Southern tracks in New Kent County. Cox planned to install the cables in underground conduits beneath the railroad tracks.

Initially, Norfolk Southern did not object to the proposed crossings. It forwarded a draft licensing agreement to Cox that requested licensing fees exceeding the maximum allowed under statute.

Cox declined to accept the agreement, asserting that the proposed crossings were governed by Va. Code § 56-16.3. Cox said it would proceed with the project without the licensing agreement.

Norfolk Southern petitioned the SCC for relief.  In addition to asserting that Va. Code § 56-16.3 violated the state constitution, the railroad also argued that the statute eliminated a condemnor’s burden to establish a public use undergirding the proposed taking of property. The railroad further noted that Cox was a private, for-profit company.

The SCC rejected the railroad company’s argument, declining to hold a hearing on the matter. It concluded that the allegations in Norfolk Southern’s petition were insufficient to establish an “undue hardship.”

Norfolk Southern appealed.

Not a ‘public use’

Before the state supreme court, Norfolk Southern contended that Code § 56-16.3 permitted Cox to take its property for a nonpublic use and eliminated Cox’s constitutionally imposed burden to establish the public use underlying the proposed taking.

The court agreed.

“By essentially ignoring the public use requirement set forth in Article I, Section 11 of the Constitution of Virginia and Code § 1-219.1, Code § 56-16.3 permits Cox to take Norfolk Southern’s property for a private purpose,” Chafin wrote.

“Pursuant to the plain terms of Article I, Section 11 of the Constitution of Virginia, ‘[t]he condemnor bears the burden of proving that the use is public, without a presumption that it is.’ Despite this clear constitutional directive, Code § 56-16.3 does not even reference the term ‘public use,’” the court said.

The statute permits a broadband service provider to install fiber optic cables across railroad property after it files an application with the affected railroad company, the court said, and that application is not required to address the public use underlying the proposal. And although a railroad company may petition for relief based on three specific grounds, none of those grounds address the public use.

Therefore, the court held, “[i]n the present case, the application of Code § 56-16.3 effectuates a taking of Norfolk Southern’s property.”

Further, because Cox is a private company, not a government entity or public service company, it “cannot exercise the power of eminent domain for a ‘public use,’ under either Article I, Section 11 of the Constitution of Virginia or Code § 1-219.1.”

The court’s decision noted that the General Assembly enacted Va. § 56-16.3 to promote the of broadband services.

“[W]e acknowledge that the expansion of an existing broadband network may benefit the members of the public who would be served by the expansion,” Chafin wrote. “Nevertheless, a taking for a ‘public benefit’ is not necessarily a taking for a ‘public use.’”

The court reversed the State Corporation Commission’s decision and remanded the case for judgment in favor of Norfolk Southern.

VLW 025-6-015

Virginia Lawyers Weekly

Google offers buyouts to more workers amid AI-driven tech upheaval and antitrust uncertainty

SUMMARY:

  • Google offers voluntary buyouts in search, ads, and research
  • Move comes ahead of ruling on illegal search monopoly case
  • DOJ also pushing for breakup of Google’s digital ad network
  • Company continues post-pandemic layoffs and AI investment

MOUNTAIN VIEW, Calif. (AP) — Google has offered buyouts to another swath of its workforce across several key divisions in a fresh round of cost cutting coming ahead of a court decision that could order a breakup of its internet empire. The Mountain View, California, company confirmed the streamlining that was reported by several news outlets.

It’s not clear how many employees are affected, but the offers were made to staff in Google’s search, advertising, research and engineering units, according to The Wall Street Journal. Google employs most of the nearly 186,000 workers on the worldwide payroll of its parent company, Alphabet Inc.

“Earlier this year, some of our teams introduced a voluntary exit program with severance for U.S.-based Googlers, and several more are now offering the program to support our important work ahead,” a Google spokesperson, Courtenay Mencini, said in a statement.

“A number of teams are also asking remote employees who live near an office to return to a hybrid work schedule in order to bring folks more together in-person,” Mencini said.

Google is offering the buyouts while awaiting for a federal judge to determine its fate after its ubiquitous search engine was declared an illegal monopoly as part of nearly 5-year-old case by the U.S. Justice Department. The company is also awaiting remedy action in another antitrust case involving its digital ad network.

U.S. District Judge Amit Mehta is weighing a government proposal seeking to ban Google paying more than $26 billon annually to Apple and other technology companies to lock in its search engine as the go-to place for online information, require it to share data with rivals and force a sale of its popular Chrome browser. The judge is expected to rule before Labor Day, clearing the way for Google to pursue its plan to appeal last year’s decision that labeled its search engine as a monopoly.

The proposed dismantling coincides with ongoing efforts by the Justice Department to force Google to part with some of the technology powering the company’s digital ad network after a federal judge ruled that its digital ad network has been improperly abusing its market power to stifle competition to the detriment of online publishers.

Like several of its peers in Big Tech, Google has been periodically reducing its headcount since 2023 as the industry began to backtrack from the hiring spree that was triggered during pandemic lockdowns that spurred feverish demand for digital services.

Google began its post-pandemic retrenchment by laying off 12,000 workers in early 2023 and since then as been trimming some divisions to help bolster its profits while ramping up its spending on artificial intelligence — a technology driving an upheaval that is starting to transform its search engine into a more conversational answer engine.