Alexandria-based health and education nonprofit organization United Way Worldwide has named former SunTrust Foundation President as its chief experience officer, the organization announced Tuesday.
In his new role, Little will lead all donor-facing functions and will be a part of the executive management team. He will report to United Way President and CEO Brian Gallagher. His focus will be on marketing, strategic partnerships and funding initiatives for the organization. Little will also oversee United Way’s partnership with salesforce.org.
Little was previously president of the SunTrust Foundation and led the bank’s corporate philanthropy. Before that, he was SunTrust’s head of marketing strategy and operations. He earned his bachelor’s degree in electrical and electronics engineering from Duke University, his master’s degree in communications networks and systems from Purdue University and his master’s degree in business administration from the University of California – Berkeley.
United Way annually has nearly 3 million volunteers, more than 8 million donors and nearly $5 billion raised. The organization does work in 1,800 communities in more than 40 countries globally.
A three-story office building in Virginia Beach sold for $6.75 million, real estate company Colliers International announced Tuesday.
The 66,062-square-foot building developed in 1989 is located at 2877 Guardian Lane was sold by Park West Owner LLC to Guardian Lane West LLC. The property is located less than a mile from Interstate 264.
The office building named Park West — located in the Lynnhaven area of Virginia Beach — rents to tenants including Cape Henry Associates, Leidos and Legal Resources.
Colliers’ Virginia office employees who handled the transaction included J. Scott Adams, president for Colliers’ Virginia offices; Pat Mugler, executive vice president and principal in Colliers’ Virginia offices; and Ricky Anderson, senior vice president for Virginia. Mugler and Anderson will handle leasing services for Guardian Lane West LLC.
Colliers International is headquartered in Toronto, Ontario, Canada, but has offices in Charlottesville, Norfolk and Richmond. The company operates in 68 countries and has 14,000 employees. In 2018, its corporate revenues were $2.8 billion.
A 112,340-square-foot retail center in Pulaski was sold for $5.25 million, Cushman & Wakefield | Thalhimer’s Capital Markets Group announced Monday.
The shopping center located at 1200 E. Main St. in Pulaski was 91% leased at the time of the sale. Tenants of Pulaski Plaza include Food Lion, Peebles, Badcock Furniture, Gordmans, Aaron’s and Family Dollar.
The property is located less than 3 miles from Interstate 81.
Pulaski Center Associates LLC bought the property on Feb. 18 and was represented by Catharine Spangler from Thalhimer’s Richmond office. Jessica Johnson from Thalhimer’s Roanoke office assisted in the sale.
There was perhaps no greater portent last year of Virginia’s rising fortunes than the news that the Old Dominion had regained its perch as the nation’s No. 1 state for business.
After eight years, CNBC once again ranked Virginia No. 1 in its annual Top States for Business study. The business news network cited Virginia’s successful bid to land Amazon.com Inc.’s $2.5 billion HQ2 East Coast headquarters as the deciding factor. The headquarters, which will employ 25,000 workers by the end of the decade, is under development in Arlington County.
“By the numbers, Virginia is not only the best state for Amazon; it is America’s Top State for Business,” CNBC wrote in its July 2019 article announcing Virginia’s top ranking. “The state has the nation’s best workforce, including the fourth-highest concentration of science, technology, education and math (STEM) workers. Strong school test scores, small class sizes and a wealth of colleges and universities make Virginia’s education system the best in the nation. And with Virginia Tech announcing plans to build a new campus adjacent to Amazon’s HQ2 focused on innovation, things could get even better.”
And yet, Amazon was just one of many ambitious projects and undertakings that got underway in Virginia last year.
In July 2019, Dominion Energy Inc. broke ground on its $300 million Coastal Virginia Offshore Wind (CVOW) pilot offshore wind energy project, which will erect two 600-foot-tall, 6-megawatt wind turbines 27 miles off the coast of Virginia, which are expected to be online later this year. But that was just a precursor to Dominion’s September 2019 announcement that it planned to build an $8 billion, 220-turbine wind farm — the nation’s largest — off the same coastal area by 2026. It’s part of Dominion’s goal, announced in February, for achieving net-zero carbon dioxide and methane emissions from its electricity generation and gas infrastructure operations by 2050.
Also in Virginia Beach, Venture Realty Co. and music superstar Pharrell Williams unveiled plans to partner on the development of a $325 million mixed-use, surf park complex. It’s expected to begin construction in a couple years and be in operation by 2024.
The View at Tysons development will include the 600-foot Iconic Tower. Rising higher than the Washington Monument, it will be the tallest building between Philadelphia and Charlotte, North Carolina. Rendering courtesy Clemente Development Co.
Northern Virginia saw forward movement on major development projects such as the $1 billion Virginia Tech Innovation Campus in Alexandria, as well as the $2.9 billion expansion of Metrorail’s Silver Line and the $1.3 billion mixed-use development The View at Tysons.
And some projects, such as Richmond’s proposed $1.5 billion Navy Hill downtown redevelopment project, weren’t realized.
In health care news, the $150 million Inova Schar Cancer Institute opened in May in Fairfax County. And in Roanoke, Carilion Clinic launched fundraising for its proposed $100 million cancer center with a $1 million donation from Carilion President and CEO Nancy Howell Agee and her husband.
And in education, the University of Virginia kicked off its landmark $5 billion “Honor the Future” fundraising campaign. The largest such initiative by any Virginia public university, it’s also tied for the biggest public higher education campaign in the nation.
The following pages of The Big Book take a deeper look at these and many other events from the last year, exploring how Virginia’s economy has performed across several key sectors, including economic development, ports and shipping, construction and commercial real estate, accounting, law, banking and finance, insurance, hotels and more. And like always, you’ll find a host of valuable, up-to-date reference lists covering everything from Virginia’s largest public and private companies to the commonwealth’s top conference hotels and craft breweries.
In September, Dominion Energy Inc. unveiled an ambitious, $8 billion project to erect the nation’s largest offshore wind farm off the Virginia Beach coast. If all goes to plan, it will power 650,000 Virginia homes by 2026.
This year, Dominion expects to bring its offshore wind pilot project online and start ocean survey work on the commercial project, which would include 220 massive wind turbines built in three phases. Rising 600 feet above the surface, each turbine would be taller than the Washington Monument.
The first group of turbines — producing 880 megawatts of energy — would be operational in 2024, with additional turbines going into service in 2025 and 2026, ultimately producing 2,600 megawatts. Dominion would be the first electric utility to have sole ownership of an offshore wind farm.
The commercial offshore wind farm is planned for a 112,800-acre site adjacent to Dominion’s Coastal Virginia Offshore Wind (CVOW) project, a pilot venture in which two, 600-foot-tall, 6-megawatt research wind turbines, manufactured by Siemens Gamesa Renewable Energy, will be installed 27 miles off Virginia Beach this spring. Dominion has contracted with Danish firm Ørsted, one of the world’s largest wind-energy developers, to install the turbines on 2,135 acres of federally owned waters leased to the Virginia Department of Mines, Minerals and Energy. In January, Ørsted agreed to lease part of the Portsmouth Marine Terminal from the Virginia Port Authority to stage materials and equipment for the CVOW project, and Dominion selected Siemens Gamesa as its preferred turbine provider for the wind farm.
The $300 million offshore pilot project is projected to be operational by the end of the year, generating 12 megawatts of energy at peak winds, enough to serve 3,000 customers. In October, the U.S. Bureau of Ocean and Energy Management awarded final approval to the pilot, the only offshore wind project permitted in federal waters.
Dominion will use information from the pilot to design and build the wind farm — with hopes for Virginia to become a national leader in the technology, management and deployment of offshore wind energy.
The initiative is in line with Gov. Ralph Northam’s directive to state agencies to develop plans to produce 30% of their electricity from renewable resources by 2030 and be carbon-free by 2050.
“Governor Northam has made it clear that Virginia is committed to leading the way in offshore wind and renewable energy, and we’re rising to the challenge,” says Jeremy Slayton, media relations representative for Dominion Energy.
The company’s offshore wind projects are part of its comprehensive clean energy strategy aimed at achieving net-zero carbon dioxide and methane emissions by 2050.
Currently, turbines and other components used to operate offshore wind projects are manufactured in Europe and shipped to the United States. However, as more commercial wind farms come online, a U.S. supply chain is expected to emerge. Virginia could play a major role in the industry due to its pro-business climate, deep-water ports free of overhead obstructions, maritime workforce and dock capacity, according to a 2018 report prepared by consulting firm BVG Associates.
The United States’ first offshore wind farm began operating off the coast of Rhode Island in 2016, and Maryland and Massachusetts also have similar projects in development.
Doug Smith, president and CEO of the Hampton Roads Economic Development Alliance, predicts that wind energy will have a huge economic impact on the state and the region in the next three to five years, noting that the $70 billion industry could bring 14,000 jobs to Virginia.
“Literally, you’re creating an industry out of whole cloth off the East Coast,” Smith says. “There’s opportunity for Hampton Roads to become the hub for the supply chain for this industry. Ninety percent of the skills needed to put the offshore wind industry into play are skills that we already have in the shipyards and ship repair. These are highly skilled jobs like welders and machinists.”
Last June, Volvo Group announced plans to invest nearly $400 million, add 350,000 square feet to its Dublin complex in Pulaski County — already the largest Volvo truck plant in the world — and hire 777 new workers over the next six years. Five months after that announcement, though, Volvo said it would lay off 700 workers, starting in January.
“We regret having to take this action, but we operate in a cyclical market, and after two years of extremely high volumes, we have to adapt to reduced market demand,” John Mies, Volvo’s senior vice president of corporate communications, said in a November email.
Pulaski County Administrator Jonathan Sweet compares the rise and fall of Volvo’s employment to the stock market. “It ebbs and flows, ebbs and flows, ebbs and flows,” he says, “but if you look at the straight-line trend, it’s on an increase.”
In late January, there was another incline, when Volvo Group’s Mack Trucks company announced it would hire 250 people later this year for a new medium-duty truck assembly plant in Roanoke County, in the former LSC Communications book plant, which closed in 2017. Mack Trucks plans to invest $13 million in the project, according to the governor’s office.
With the layoffs, Sweet says, “They just shed the additional workers they need for that peak volume they experience due to cyclicalities.”
Matt Blondino, president of United Auto Workers’ Local 2069 in Dublin, says Volvo workers expect layoffs. “We’ve all been through it here. I mean, I’ve been through three myself,” he says. “It’s just something everyone knows when you come to work here.”
It’s the plant’s two-tiered wage system that bothers workers, according to Blondino. New hires start at $16.77 an hour, he says. Wages top out at $26.77 — except for anyone hired after 2006. Their raises stop at $21. The benefit packages are different, too.
Volvo will receive up to $16.5 million in state-funded economic development incentives over 10 years if the company adds 777 jobs to the 3,219 already in the plant when expansion negotiations began in 2018. After the January layoffs, Blondino says, that will mean adding nearly 1,500 jobs.
Franky Marchand, vice president and general manager of the Dublin plant, says, “It’s going to take us a few years to get there, but we see the potential, and that’s part of the fun of our business.”
The physical expansion will be quick. One new building is already finished. A second building should be outfitted by summer. The expansion will enable the plant to build more trucks, help it to prepare to build electric trucks and allow Volvo to bring more of its truck manufacturing process in-house. As of late January the company had not said which suppliers will be displaced. However, Marchand says Volvo will still depend on other companies to provide parts for its trucks, even though the plant temporarily laid off about 3,000 workers in October 2019 because of a UAW strike at the Mack Trucks plant that supplies Dublin with engines and transmissions.
“Manufacturing is about doing things very well,” Marchand says. “It’s not about doing everything. Nobody is good enough to do everything.”
Flexibility, such as having more than a dozen union workers qualified to operate heavy machinery helping to prepare the building site for the current expansion, works to everyone’s advantage, Marchand says.
“Some companies look at a union contract as a very dogmatic, legal way of managing a relationship,” he adds. “In reality, all of that is just a framework that defines the minimum of our relationship. … You can do things if you’ve got people with skills, as long as you agree to work for the overall benefit for everybody.”
Blondino has a different take. “It’s not a framework,” he says. “We just want them to follow the contract. That’s why we have a contract.”
Marchand realizes his plant’s importance to the local economy. “If I were in a big town, I would be one of many,” he says. “Now, here, we are a big industrial tool, a financial engine for the community. Everyone understands the good of Volvo is the good of our employees and is the good of our community. Once you’ve got that alignment, I think it’s good in general. I’m proud of it.”
Sweet, the county administrator, agrees.
“They are a vital part of our business community and larger community. They are the county’s largest taxpayer, the largest employer,” he says. “We’re super proud of Volvo. We don’t know what we would do without Volvo in our community. Who would step up and fill those big shoes?”
You’d be hard pressed to find an economic development official who had a better first year on the job than Jay Langston did in 2019.
With Langston at the helm, the Shenandoah Valley Partnership, a regional economic development group, announced a record $1.5 billion in business investment last year, anchored by Merck & Co.’s expansion of its longstanding pharmaceutical production facility in Rockingham County.
“It was a banner year for us in terms of what we were able to achieve and what we can achieve in the future,” says Langston, who left the Virginia Economic Development Partnership in late 2018 to become executive director of SVP, which serves the region including Augusta, Bath, Highland, Page, Rockbridge, Rockingham and Shenandoah counties.
The record investment was a testament to the valley’s many assets, Langston says, including workforce development, a strategic location, robust infrastructure and the willingness of key players in the region “to work together for a common cause.”
That spirit of cooperation was evident in Merck’s decision to invest up to $1 billion over the next three years to boost local production of its human papillomavirus (HPV) vaccines, creating 100 jobs and building a 120,000-square-foot addition to its Elkton plant. To help supply the workforce, James Madison University and Blue Ridge Community College will team up to develop curriculum and training programs in advanced manufacturing, biotechnology and process engineering. (Read story here.)
A sweet deal
While the Merck investment grabbed most of the headlines in 2019, it wasn’t the valley’s only significant expansion.
Chocolate-maker The Hershey Co. announced plans to invest $104 million to grow its Stuarts Draft plant by 110,000 square feet. The addition will allow for the production of penuche — a fudgelike candy made from brown sugar, milk, butter and a hint of vanilla — and peanut cream that will be distributed to other Hershey facilities on the East Coast.
Hershey evaluated its production facilities nationwide before ultimately choosing Augusta County for the project, which will create 65 jobs. The facility already employs more than 1,000 people.
Langston says the valley’s pro-business environment was invaluable in landing the Merck and Hershey expansions. “These are international companies,” he says. “For them to be willing to invest here, you have to have an environment that’s conducive for growth.”
A ‘market to watch’
The year began rather auspiciously for the region when Colliers International, a global commercial real estate organization, identified the Shenandoah Valley/Interstate 81 region as one of its “10 Emerging U.S. Industrial Markets to Watch in 2019.”
“That really set the tone,” Langston says of the report, which highlighted mostly metro areas such as Las Vegas, Minneapolis, Sacramento and Seattle. The report paints the Shenandoah Valley as a great option for industries aiming to build facilities with easy access to rail lines and ports.
The I-81 corridor in Virginia offers many commercial advantages, according to the report, including available land and proximity to the metro Washington, D.C., Baltimore and Ohio Valley population bases.
InterChange Cold Storage is one of the latest companies to move into the corridor. The homegrown third-party logistics provider held a grand opening in September for its 250,000-square-foot refrigerated warehouse in Mount Crawford.
InterChange Group President Devon Anders says the warehouse, a $41.6 million investment that will eventually create 88 jobs, is the company’s largest project to date. “We designed and built this project for the food and beverage companies that rely on our local agriculture, productive and skilled workforce, transportation infrastructure and friendly business climate to produce, store and ship their products around the world,” he says.
The cold-storage facility has the potential to expand to 600,000 square feet across multiple rooms, along with blast freezing and other services. New rail service and road improvements will connect the facility to area manufacturers and the Virginia Inland Port, providing opportunities for international export of food products.
In the northern valley, WCS Logistics — formerly Winchester Cold Storage — held a ribbon-cutting in July for its new 63,000-square-foot warehousing facility in Frederick County. The building, the company’s seventh in the Winchester area, quadruples its freezer capacity for storing foreign and domestic food products for distribution.
Trex to add production capacity
Decking and railing manufacturer Trex Co. Inc. broke ground in November on a new plant adjacent to its existing production facility in Frederick County. The facility will create more than 150 jobs in manufacturing, skilled trades and engineering.
The new facility is part of a $200 million, multiyear capital investment program that will allow Trex to meet demand for its wood-alternative decking and railing. The company is also increasing capacity at its Nevada site. The Frederick County location is scheduled to open in early 2021.
Also last year, Chicago-based CareerBuilder announced plans to invest $2.5 million to establish a 20,000-square-foot call center and research facility in Frederick, creating 250 jobs.
And Navy Federal Credit Union is in the midst of a $100 million expansion of its Frederick call center that’s expected to create more than 1,400 jobs.
Airport traffic taking off
Shenandoah Valley Regional Airport has seen tremendous growth in passenger traffic since switching carriers in April 2018 to United Express, which is operated by SkyWest Airlines. In December 2019, the airport in Weyers Cave launched new flights to and from United’s hubs at Washington Dulles International and Chicago O’Hare International. The airport also rolled out scheduling improvements designed to help ensure maximum connection opportunities at both hubs and more convenient flight times for local customers.
Langston says having reliable commercial air service in the central valley is a boon for economic development and puts local travelers “one step from anywhere in the world.”
“How many rural localities can say that?” he asks.
Town houses and apartments, storefronts and restaurants, grassy medians, pocket parks, sidewalks everywhere. Doesn’t this look a lot like a downtown?
Picking up his mail in slippers and shorts on a brisk January day, Tandy Harris pauses to consider the question. “It does,” he agrees. “It’s got all the bells and whistles.”
That’s one reason the human resources executive for a digital marketing firm decided four years ago to buy a four-bedroom town home in West Broad Village, a “new urban” housing and retail development in suburban Henrico County’s Short Pump area.
Harris likes having no yard to mow and rake. He can walk to a locally owned burger joint, a cozy British-style pub, a Whole Foods or Trader Joe’s. He can get a haircut or visit a dentist, all without getting into a car. Since he commutes to New York City half the month, he likes how close his home is to an Amtrak station.
Not too long ago, you’d need to be in a city to have a lifestyle like this. No longer. Increasingly, pseudo-downtowns like the one where Harris lives are popping up in suburbs all across Virginia — particularly near major hubs like Washington, D.C., Hampton Roads and Richmond.
This is no coincidence. It’s happening for the same reasons Virginia’s downtowns suddenly are packed with millennials, why it’s easy to find good Thai food, and why the past two elections turned the once-red commonwealth distinctly purple: the unstoppable tide of demographics.
For businesses ranging from giant real-estate and retail developments to local merchants, knowing who and where their customers are in this changed Virginia could spell the difference between winning and losing.
Virginia is “in the middle of a long-term realignment,” says Rachel Bitecofer, assistant director of the Wason Center for Public Policy at Christopher Newport University. “It is going to have big ramifications.”
A human resources executive, Tandy Harris lives in the downtown-like West Broad Village community in Henrico County’s bustling Short Pump area. Photo by Shandell Taylor
Shifting center of gravity
Since the last U.S. Census in 2010, Virginia’s population has grown an estimated 6.7%, to
8.5 million, according to the Weldon Cooper Center for Public Service at the University of Virginia. Two-thirds of that growth has taken place in Northern Virginia.
While Northern Virginia has boomed, the population in much of the state has stagnated or shrunk. Outside the top three metro areas, Virginia’s population has grown just 1.3% since 2010, the center reports, with 51 of Virginia’s 95 counties losing residents.
The burgeoning suburbs wrapping around Washington, D.C., tend to be younger — 27% of residents in Northern Virginia are younger than 20 years old, according to the Virginia Department of Health. Compare that with Southwest Virginia, where the rate is 18%.
These communities also are less white — as of 2018, 49.4% of Northern Virginia residents identified as members of a racial minority, up from 36.4% in 2010, according to the Northern Virginia Regional Commission. Additionally, Northern Virginians are more likely to have been born in another country — the four counties and five cities of Northern Virginia boast 27% of the state’s foreign-born population.
Such shifts in Virginia’s population have had clear effects on politics, says Fabrizio Fasulo, director and chief economist at the Center for Urban and Regional Analysis at Virginia Commonwealth University’s L. Douglas Wilder School of Government and Public Affairs.
With a larger, younger and more racially and ethnically diverse population than the rest of the state — all qualities strongly affiliated with Democratic voters — Northern Virginia tends to vote blue. The region also contains a higher rate of people with college educations, who over the last quarter-century also have leaned increasingly toward Democrats.
This explains why Democrats have wrested complete control of the General Assembly from Republicans for the first time since 1993, Fasulo says.
And not just that. Economists and social scientists like Fasulo say this evolution signals what could be a complete reshaping of what we used to think about the suburbs — what they are, who lives there and what that means for the rest of the state.
Suburbs: the new cities
Fabrizio Fasulo, director of VCU’s Center of Urban and Regional Analysis, says that Virginia’s changing suburban demographics are one reason why Democrats last fall won control of the General Assembly for the first time since 1993. Photo by Shandell Taylor
Many of our suburbs are no longer the stereotypical places where conservative-leaning white people water tidy patches of green grass behind white picket fences.
Today nearly 60% of African Americans live in suburbs, Fasulo points out; almost one-third of the country’s suburban population is composed of African Americans, Asians and Hispanics.
During the next decade, vibrant city centers like Washington, D.C., Richmond and Norfolk will continue to be hubs of economic activity, says Santiago Pinto, senior policy economist in the research department of the Federal Reserve Bank of Richmond.
At the same time, however, “you will be seeing a new wave of suburbanization, with the added impact of a different composition and more minorities,” Pinto says.
Increasingly, the suburbs also are becoming home to younger homeowners. While for the past decade millennials and their Generation Z siblings have moved to city centers, transforming downtowns in the process, cities in Virginia have been seeing signs of this trend slowing down or even declining during the past few years, according to recent research from the Weldon Cooper Center.
Statistics like these suggest to Virginia Realtors Chief Economist Lisa Sturtevant that some proportion of younger adults have moved to the suburbs. Suburban school systems tend to perform better than their urban and rural counterparts, making them a strong attractor for young parents.
But many of those younger residents still want the sense of a downtown, Sturtevant adds. They’re not as enamored of the housing developments that exemplified much of the 20th century, with expansive front yards and sidewalk-free roads leading to megamalls. They want a different sort of suburb, with a variety of housing options, a sense of community, with easy access to public transportation, and parks and retail within walking distance.
Developers and retailers are responding, Sturtevant says. “In the suburbs now, there are more choices, more affordability, more options of all kinds.”
Take the Mosaic District, a $500 million built-from-scratch retail and housing development on 32 acres in Fairfax County. Launched by developer Edens in 2013, the Mosaic aims to recapture the sense of living in a thriving, close-knit community, complete with a local fishmonger, 1-acre park and art-house cinema.
“When people come together routinely … they start to see the same people and to be exposed to the same groups,” Edens CEO Julie W. McLean explained to Leaders Magazine last year. “This creates familiarity and causes them to start to feel like they are a part of the community. That is when we truly see prosperity follow, and that prosperity is economic, social, cultural and soulful.”
Or take a look at the reimagining of another area of Northern Virginia: Tysons, formerly Tysons Corner, in Fairfax County. It’s in the midst of transforming itself from a quintessential office-park-style suburb bookended by giant, roofed-in shopping malls into a walkable, live-shop-and-work community.
Through the 1980s, Tysons was a raging financial success. One 50-year resident called it “the blob that ate Northern Virginia.” It made up the 13th-largest concentration of office space in the nation and contained 100,000 jobs and 17,000 residents. But with few or no sidewalks, it was almost impossible to walk there. It also suffered some of the nation’s worst traffic jams.
By the mid-2000s, Tysons was losing ground to developments in Arlington County offering higher density and more walkability — a downtown feel. After a lengthy review, Fairfax County decided to move forward with a rehaul.
Centered around a $2.9 billion expansion of Metrorail’s Silver Line, this new vision of Tysons’ 2,400 acres adds parks, pedestrian-friendly side streets, bike lanes and mixed housing. By 2040, county planners say, the amount of office space in Tysons will nearly double from 2010, to 45 million square feet, while residential space will almost quintuple, to 50 million square feet.
County officials want Tysons to be a city, says Clemente Development Co. Inc. founder and CEO C. Daniel Clemente. However, “if you want to change Tysons from what it was — an office park and malls — into a city,” he says, then “you have to have a place where people can live and where they can walk to work.”
Clemente’s planned $1.3 billion, 3 million-square-foot development of mixed-use residential, commercial and leisure spaces, The View at Tysons, was approved by the Fairfax County Planning Commission late last year. Its proposed centerpiece, the 600-foot-tall Iconic Tower, is slated to include a cultural center and black-box theater.
Clemente is pushing the county to waive its cash-proffer requirements in return for building The Evolution, a multifamily apartment community, on land his company owns near the Spring Hill Metro Station. All 1,400 units would be priced for workforce housing. “You can’t have people driving in to work in Tysons from Loudoun [County],” Clemente argues. “That would defeat the point.”
The housing question
In many ways, Loudoun exemplifies how demographic shifts are forcing changes in how counties and businesses manage the changing suburbs.
At the northernmost tip of Virginia, Loudoun County for years saw itself bifurcated into two regions: a suburban-style section with modest single-family homes like those in neighboring Fairfax County and a rural one to the west with mansions set among rolling meadows and farms.
In recent years, however, the population of Loudoun has ballooned — from 310,000 in 2010 to about 406,000 in 2018 — and changed, growing younger and more ethnically diverse. Meanwhile, housing stocks have not kept pace. That has resulted in a shortfall of affordable housing, according to a 2018 study by the Loudoun County Economic Development Advisory Commission.
The $1.3 billion mixed-use development The View at Tysons will include residential, office and leisure spaces — as well as the tallest building in Virginia. Rendering courtesy Clemente Development Co. Inc.
As in most of Northern Virginia, housing in Loudoun costs significantly more than the nation as a whole. In Loudoun, a full-time worker would have to earn at least $32 an hour to afford a two-bedroom apartment, according to a 2019 report by the National Low Income Housing Coalition. That might be much lower than national record holder San Francisco’s $60-an-hour requirement but it’s notably higher than the Virginia average of $23 an hour.
That means many employees of the county’s businesses have to commute long distances, the advisory commission noted. This results in businesses having difficulty hiring and retaining workers.
In response, this January the county enacted a housing plan that would permit 40,950 additional homes by 2040, mostly in suburban sections to the east and planned urban areas around new Metrorail stops. The plan took 3 ½ years to complete, largely due to conflicting ideas and debates about priorities.
“For the first time, there are a lot of other voices in the area,” says Phyllis J. Randall, chair-at-large of the Loudoun County Board of Supervisors and the first African American woman elected to lead a Virginia county board of supervisors. “We are more diverse now — not just ethnically but also diversity of age, of experience, of income.”
Mixed-use suburban development will be key, Randall says. She points to Kincora, a development from Tritec Real Estate Inc. and Norton Scott LLC on 424 acres at the corner of state Routes 7 and 28. Among the development’s planned amenities is a children’s science center. Kincora’s first large multifamily construction, the 333-unit Jameson, is expected to open this year, joining already-built condos and a 96-unit affordable-housing apartment building.
Open questions
These trends are shaping the state, from voting patterns to development plans. But exactly how much remains a mystery — for now. Not until the 2020 Census is complete, experts say, will the full contours be visible of who is living where.
Ever since the 2010 Census, researchers, economists and regional planners have been extrapolating from it and other data to guide their analyses. When this year’s census figures are tallied, they will see how close to the mark their projections have been.
“A lot of people have a lot of expectations riding on this [census],” says the Richmond Fed’s Pinto. “We will want to confirm with hard numbers these trends we have seen.”
But already it is clear that, from legalizing hemp farming to expanding Medicaid to enacting gun-control legislation, these new suburban residents have set in motion changes in the commonwealth that will have effects far beyond their walkable new-urbanist enclaves.
From large-scale developers who need to attract buyers, to retailers aiming to set up storefronts near their customers, how businesses adjust to these new suburbs will make — or break — many of them, experts say.
“You can either lean into a certain kind of climate and make it your friend — or you can fight it,” says CNU’s Bitecofer. “It’s my experience that leaning in is a better strategy.”
After 31 years in business, LeClairRyan, the state’s fifth-largest law firm, announced in August 2019 that it would be shutting down. It filed for bankruptcy in September and entered liquidation proceedings a month later. The firm had faced financial and legal struggles, as well as the exodus of many of its associates and shareholders.
Just a month before the firm’s wind-down announcement, LeClairRyan co-founder, former CEO and name partner Gary LeClair left the firm with partners David Lay and Andrew White. All three joined Williams Mullen, the commonwealth’s third-largest law firm.
“After growing into a large national law firm, LeClairRyan experienced declines in gross revenues and profitability in recent years. Those declines led to the departure of numerous attorneys, and those departures accelerated in 2019,” wrote Lori Thompson, chair of the firm’s dissolution committee, in a bankruptcy declaration. “Despite best efforts, LeClairRyan could not stop the wave of attorney departures.”
Starting in 2006, LeClairRyan embarked on a rapid expansion. By its peak, the firm employed about 385 attorneys working in 25 offices throughout the country.
According to reports in the ABA Journal, the American Bar Association’s trade publication, LeClairRyan’s growth was predicated on the hope that U.S. regulations would change, allowing LeClairRyan to become the first publicly traded law firm in the nation.
However, the firm evidently became overextended, with LeClair telling Forbes in 2015 that the firm’s “biggest challenge is our lack of capital.”
From 2015 to 2018, LeClairRyan’s gross revenues declined from $163 million to $122.5 million.
In an attempt to shore up the losses, the firm began early promotions of some associates to shareholder, which required a $100,000 buy-in, according to the ABA Journal, and LeClairRyan also required some partners to purchase preferred stock in the firm.
In 2016, LeClairRyan agreed to pay a $20.375 million settlement to the bankruptcy estate of Health Diagnostic Laboratory (HDL) in a dispute over legal services the firm provided to HDL.
LeClairRyan struck a deal in 2018 to outsource about 300 of its support workers through a partnership with enterprise legal services provider UnitedLex. The workers were intended to perform back-office support tasks for LeClairRyan and other law firms, with LeClairRyan holding a 1% stake in the venture. At the time of the firm’s failure, LeClairRyan still owed UnitedLex more than $8 million related to the venture.
LeClairRyan also faced a $1 million judgment in a federal gender discrimination lawsuit filed by a firm shareholder who alleged that the firm was paying her less than male shareholders, despite the fact that she was working more billable hours. In filings related to the case, LeClairRyan stated that it had decreased compensation for several shareholders due to the fact that the firm missed its budget from 2011 through 2014.
In its bankruptcy filing, LeClairRyan estimated that it had assets and liabilities ranging from $10 million to $50 million and that it owed money to between 200 and 999 creditors. Several claims were filed following the bankruptcy filing, including a $28 million claim from Virginia hotel operator Petersburg Regency LLC regarding LeClairRyan’s representation of the hotel in an insurance dispute.
Jane and David Walentas donated $100 million for a U.Va. scholarship program. Photo courtesy BerlinRosen
Individuals and family foundations spread the wealth in 2019, giving record amounts to Virginia universities but also assisting cancer patients, museums and out-of-work coal miners.
In October, the University of Virginia announced a $100 million gift from David and Jane Walentas to help fund a new scholarship program for first-generation students.
David Walentas, a 1961 U.Va. alumnus and 1964 Darden School of Business graduate, was the first in his family to attend college. Three-fourths of the couple’s grant will go to scholarships and fellowships for first-generation students. The rest will go to fellowships and professorships through the Jefferson Scholars Foundation and Darden.
In May, Darden received its largest-ever gift — a $68 million donation from Frank M. Sands Sr., founder of Sands Investment Group Inc. Sands earned his master’s degree in business administration from Darden in 1963.
The donation will create the Sands Institute for Lifelong Learning, which provides degree and non-degree programs, and also will start the Sands Professorship Fund in support of 12 new faculty chair positions at the business school.
U.Va. also received a $40 million gift from The Robin Hood Foundation, founded by Paul Tudor Jones II and Sonia M. Jones, which will fund part of the “Contemplative Commons,” to be located on the university’s Grounds. The building is intended to provide meeting space for students across disciplines to collaborate on academic projects.
At Virginia Tech, overall donations reached a record $181.9 million in fiscal year 2019, an 18% increase from the previous year. It marked the third consecutive year that donations to the university have exceeded $150 million.
In Arlington, George Mason University’s Antonin Scalia Law School received a $50 million gift in March from the estate of Allison M. and Dorothy B. Rouse. A retired associate justice with the California Court of Appeal, Allison Rouse died in 2005 and his wife, Dorothy, died in 2018. The gift is the largest in the law school’s history, supporting 13 new faculty chairs.
Hampden-Sydney College received its largest-ever gift, a $30 million donation from the Pauley Family Foundation, in September. The grant will fund a new science building, to be named the Pauley Science Center.
In addition to major university gifts, The Mariners’ Museum and Park in Newport News will be able to keep its admission fees at $1 in perpetuity thanks to a $10 million grant from The Batten Foundation, established by the family that once owned the Virginian-Pilot and Roanoke Times newspapers and The Weather Channel. It was the largest gift that the maritime history museum has received.
The Richard and Leslie Gilliam Foundation donated $1 million to Blackjewel LLC coal miners who lost their jobs after the mining conglomerate declared bankruptcy in July. More than 1,110 workers in Virginia, Kentucky and West Virginia were abruptly laid off.
And in late November, Carilion Clinic President and CEO Nancy Agee and her husband, U.S. Fourth Circuit Court of Appeals Judge G. Steven Agee, made a $1 million donation to establish the Carilion Clinic Cancer Center on the Virginia Tech Carilion Health Sciences and Technology Campus.
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