Richmond-area developers Louis Salomonsky and David White of SWA Construction Inc. sold a 0.75-acre property across from the Lucky Strike Building in the city’s Libby Hill area for $2.75 million, Commonwealth Commercial Partners LLC (CCP) announced Monday.
The site is part of a three-parcel purchase of vacant land along East Main and Pear streets. Bruce Milam, senior vice president of CCP, represented the buyer, Shiplock 2 LLC, in the transaction that closed on Dec. 20. Shiplock 2 is led by developer Guy Blundon of Richmond-based CMB Development. He plans to build 180 apartment units on the site.
CMB Development also plans to acquire the 51-unit Shiplock Watch Apartments in January. The building elevations will be five stories along East Main Street and nine stories along Pear Street.
Walter Parks is the architect, Claire Shirley of Gradient PC is the civil engineer and Purcell Construction is the General Contractor. Construction has begun on the parking lot in the latter parcel, according to CCP.
In December 2018, Salomonsky and White bought a Quality Inn that sat on a 3.5-acre property at 3200 West Broad Street in Scott’s Addition for $8 million with the intention of building more than 300 market-rate apartments, 30,000 square feet of ground level of commercial space and a parking deck in a 12-story tower. Demolition of that property began in September 2019.
For the first time since 1993, Democrats are in charge of Virginia’s legislative and executive branches. Back then, Gov. L. Douglas Wilder was serving the last year of his four-year term and Thomas Moss Jr. of Norfolk was the speaker of the House of Delegates.
Del. Eileen Filler-Corn, D-Fairfax, faces a totally different landscape as she begins her term as Virginia’s first female speaker of the House of Delegates this month. With more women than ever before serving as state legislators — as well as greater racial, ethnic and religious diversity in this year’s General Assembly — Filler-Corn, 55, says the statehouse finally reflects the commonwealth’s rapidly changing population.
Her party also has changed its ideological makeup, with more progressive lawmakers mixed in among moderate Democrats such as Gov. Ralph Northam.
Among the top issues for this session, which convenes Jan. 8 and is set to adjourn March 7, are universal background checks and other gun legislation, ratification of the Equal Rights Amendment, setting redistricting policy ahead of the 2020 U.S. Census and examining Virginia’s minimum wage and right-to-work laws.
First elected in a 2010 special election by a margin of just 37 votes, Filler-Corn worked as deputy director of the Virginia Liaison Office during the Warner and Kaine administrations and has served as director of government relations at Arlington-based lobbying and consulting firm Albers & Co. since 2007. She lives with her husband and two children in Fairfax County. Last year, she was chosen as the House of Delegates’ minority leader, becoming the first woman to lead a party caucus in Virginia’s history.
In November 2019, following the election that handed Democrats control of the General Assembly, she became the designated speaker, succeeding Republican Del. Kirk Cox.
Virginia Business spoke with Filler-Corn in early December about her goals for the 2020 General Assembly session.
Virginia Business:Why do you think this was the year that Virginia Democrats regained total control of state government after almost 30 years, allowing you to become the first female speaker of the House?
Eileen Filler-Corn: It’s been a long time, hasn’t it? I became the first female leader of either party last year. I think it’s very exciting on many fronts. It’s exciting because we have the most diverse caucuses we’ve ever had, the most diverse body we’ve ever had. It’s about time that [legislators] actually reflect the commonwealth and that we look like the commonwealth. That means all kinds of diversity.
I think we made tremendous strides in 2017 when we elected what was then our most diverse class ever — talk about capable and confident, impressive, diverse in thought and in issues and experiences as well! Also, diversity as it relates to background, race and gender. I’m excited … we made such strides [in 2017].
After the [last] session, it became clear that wasn’t sufficient. We championed so many issues that were so important to us, and we were unable to move forward. We worked hard and recruited some fabulous candidates and won the elections. I think Virginians spoke loud and clear.
VB:The Democratic Party has changed a lot, both here and nationwide, since 1993. Some Dems are progressive, while others are moderates. How do you plan to reconcile these different points of view?
Filler-Corn: I think what makes us able to succeed … is our diversity. We look at diversity as a benefit, and it makes us stronger. Will it be more challenging because we have the diversity of views? Perhaps, but that’s the democratic process.
When we talk about issues and what’s most important to us, as you saw this past session, we’re not afraid to stand up for equality and equity and treating everybody with respect, regardless of the color of their skin, the language they speak, who they love, where they come from and the religion they practice. That’s important to us, and you will find that’s important to the entire Democratic caucus.
Look at the environment. Talk about something that we hear every single day. What could be more important than clean water or clean air? I think the voters spoke loud in here. They want their elected officials to do something about that.
Before she became Virginia’s first female speaker of the House, Filler-Corn was the first woman in the commonwealth’s history to lead a party caucus. Photos by Caroline Martin
VB:What do you consider your primary role as speaker? How does that differ from being minority leader?
Filler-Corn: I think my focus as [House Democratic Caucus] leader was to bring everybody together, make sure that our members felt heard, make sure they were part of the process and that we were able to highlight and elevate each of them because they have such a diversity of experiences and expertise. As speaker, there’s that role as well, but [there’s] also my ability to bring people together and make sure that we are able to do good for Virginians throughout the commonwealth.
VB:What are your feelings about making compromises with those across the aisle and with members from different districts?
Filler-Corn: That’s what I said this entire campaign: We will be bold, we will move forward and make a difference in the lives of Virginians based on the issues that we know are important. Compromise and working with everybody are always part of the equation.
VB:What are the top three issues for you during the session?
Filler-Corn: One of our first bills announced really focuses on the LGBTQ community and housing discrimination. When I speak with chambers [of commerce], when I speak with businesses, when I speak with CEOs, I hear from them [that] they’re coming to Virginia for so many great reasons, but they’re not going to come to Virginia unless we’re open and welcoming and treating everybody with respect.
Another issue that’s very important to us … is to increase [the] opportunity for people to exercise their opportunity to vote. There’s nothing more important than that. That is the basis of our democracy, something that we as a caucus have been championing for a long, long time.
Gun violence prevention is an issue that’s obviously near and dear to our heart … with the … recent tragedy here in Virginia Beach. We had an opportunity for a special session the governor called [in July]. We introduced eight bills, common-sense gun violence prevention bills. Unfortunately, the Republicans adjourned after 90 minutes of gaveling in, without debating, discussing or voting on any of those bills.
VB:Do you think that was a factor in Republicans losing control of the House and Senate?
Filler-Corn: I do. I absolutely do. All of us as elected officials at every level and both sides of the aisle — I would like to believe we’re in this business because we want to make a difference. We want to improve the lives of Virginians. Not only do we have an opportunity to improve Virginians’ lives, [but] we had an opportunity to save Virginians’ lives.
VB:What do you think about the “Second Amendment sanctuary” [resolutions] being implemented by many rural Virginia local governments, vowing they will defy new gun legislation?
Filler-Corn: No. 1, nobody knows what bills we’re introducing beyond the three that we’ve introduced [as of early December]. People really need to wait and see our bills and our legislation. You can get a sense just from looking at the bills we introduced during the special session on gun violence prevention. The Supreme Court has already upheld all these bills, so they will be constitutional and there are no sanctuary cities in Virginia.
VB:It’s speculated that the new Democrat majority might consider revising Virginia’s right-to-work legislation. How important do you think unions are, and what role do you think they should have in Virginia?
Filler-Corn: Unions are important and definitely have an important role in the commonwealth of Virginia. When I’m out there talking with Virginians, I pride myself on the fact that we are No. 1 for business [as designated by CNBC’s Top States for Business report last July]. That is an important distinction and something that we have worked very hard for and are lucky to maintain.
Having said that, as I travel around and talk with Virginians, I also hear [that] when it comes to workers, we’re at the bottom. I’ve said this before and believe strongly we must do better. [Editor’s note: The anti-poverty organization Oxfam America listed Virginia as the lowest ranking state for workers’ rights in a September 2019 report.]
I know there’s a lot of support for raising the minimum wage. There is a workers’ compensation bill, removing the local prohibition for collective bargaining, and there are bills focused on [project labor agreements]. There are lots of bills that will truly … raise the middle class and improve the lives of workers. That is what we need to focus on.
I took a lot of opportunities to sit down with business leaders or CEOs and with chambers and discussed these issues. Nine times out of 10 in going over each and every one of these issues, there was a lot of consensus.
VB:Will the assembly raise Virginia’s minimum wage this session?
Filler-Corn: We are definitely discussing and meeting with a lot of business leaders, small business leaders, labor unions [and] individual workers about this so we can come up with the best bill. I think what you’ll see is we’re not introducing bills until they are primed and ready. We are in the process of working out the specifics. There is a lot of support for that, and we’ll definitely be making progress and moving forward.
VB:Is $15 an hour the goal for everybody across the state, or should it differ depending on the regional cost of living?
Filler-Corn: We are definitely taking all that into consideration. A lot of thought needs to go into that, absolutely.
VB:The General Assembly will also be taking on congressional and state legislative redistricting this year. Should an independent commission oversee this process?
Filler-Corn: Wearing my hat as Democratic leader, we’ve been working on that for quite some time and introduced countless bills focused on that. Last year we came out with a bipartisan compromise, which was honestly the most progressive compromise focused on redistricting we were able to get through ever, but it was not independent.
There’s strong support for moving forward with something, and I think we’ve had time now in the past year to really look at the constitutional amendment, and we need to figure out some of the concerns from some of our members who could not support that.
We need to discuss criteria legislation, who is going to make up that commission and make sure that we have minority representation, which has not been clear yet.
VB:What is your position on the proposal to allow casinos in Virginia?
Filler-Corn: Hundreds of thousands in taxes would be a tremendous amount of money just in the commonwealth as a whole, but certainly in certain regions that have not had an influx of money to spend on education or infrastructure.
You have to weigh and balance that with the potential for some challenges that we’ve seen sometimes occur in other states with regard to gambling. I think it’s a balancing act, definitely something that needed to be studied. We need to review the JLARC study [on gaming released in November] and discuss it with our members.
VB:Gov. Northam’s governorship was in jeopardy after the blackface scandal and now, less than a year later, his party has control. What role do you think that he plays now?
Filler-Corn: There’s a lot more we can do with regard to racial reconciliation and education. The governor agrees and has gone out and really tried to focus on this issue and make a difference and figure out how can we best educate all of Virginia, and what can we do as far as racial reconciliation and … just equality and equity for all.
He has come up with several different ideas … some in the form of a bill, and some would be commissions and boards and working groups. We as a caucus welcome the opportunity to better educate ourselves and to figure out how can we move forward.
VB:Dominion Energy has had one of the strongest lobbying presences in the General Assembly in recent years. But in September, the Democratic Party of Virginia announced it would no longer accept contributions from Dominion, a position also taken by several Democratic state legislators and Attorney General Mark Herring. How much influence do you think Dominion will have in the new Democratic-controlled Assembly?
Filler-Corn: I think the bottom line is we were all elected to serve and represent 80,000 people [in each district], and [the question] really [is] disingenuous. I would say we vote based on our constituents and based on what we feel is the right thing to do.
To say that any one of us — as elected officials [who] might accept money from another individual, a company or corporation — [is] influenced in any way is not accurate, and also minimizes our integrity and our ability to gather information and synthesize the information and vote according to our conscience and what’s right for our constituents. [Editor’s note: Dominion Energy contributed $15,000 to Filler-Corn between 2010 and 2018, according to the Virginia Public Access Project. Her top contributor, Washington, D.C.-based corporate governance attorney and noted Democratic donor Ronald D. Abramson, donated nearly $150,000 to her between 2011 and 2019.]
VB:Passing the Equal Rights Amendment is a big focus for Democrats this session. If Virginia ratifies the amendment, what would be its impact?
Filler-Corn: I would say it’s definitely a top priority. It has been for us for a long time. I think you saw how important it was throughout the commonwealth, honestly the entire country. It’s hard to think that it’s taken this long to get women in the Constitution. When I speak of diversity, how important it is, there’s gender diversity as well, as I mentioned. To many of us, we were actually shocked, saddened and dismayed that it didn’t go anywhere this past session. We’re talking about gender equality, equal pay for equal work. We’re excited about that. All of America will be watching.
Every year, Virginia receives $10 million from the federal government for projects to redevelop land that was home to abandoned coal mines.
This fall, 18 different projects applied for funding — all seeking to become models for coalfield communities recovering from the industry’s slow collapse. The applications received by Virginia’s Department of Mines, Minerals and Energy (DMME) suggest a variety of paths forward, ranging from agriculture and outdoor recreation to expansion of broadband internet and job training.
“We’ve gotten some pretty innovative applications,” says department spokesperson Tarah Kesterson. “Tourism is popular, as well as infrastructure and industrial development.”
The 2019 applications include a plan to build ATV trails connecting different Southwest communities, as well as proposals to grow industrial hemp, erect a 50,000-square-foot greenhouse, build outdoor adventure destinations, expand broadband and other utilities, and more. Numerous proposals seek to use development of former mine sites to build tourist attractions, whether by expanding lodging options or making the attractions easier to access.
Virginia first participated in the pilot program in 2017, when it received 15 applications, five of which were selected to receive portions of the state’s $10 million share of funding provided by the federal Office of Surface Mining Reclamation and Enforcement. In 2018, the state funded 10 projects selected from 19 applications.
The 2018 winners included nearly $500,000 to expand the off-road, ATV-oriented Spearhead Trails in Wise and Russell counties, including $222,000 for the trail between St. Paul and Coeburn and another $269,000 to redevelop a community site in the coal company town of Dante and link it to the ATV trail network.
Russell County Supervisor Lou Wallace says the award will be layered onto a $215,000 brownfield grant from the Virginia Department of Environmental Quality and the Virginia Economic Development Partnership to remove an asbestos-laced school building, mitigate lingering coal waste and reconstruct the site as a campground that’s tied into the Spearhead Trails system.
“This DMME money will add ATV trails to connect Dante to almost 100 miles of trails to St. Paul and Coeburn,” Wallace says. “We’ll be able to showcase the rich cultural history of the whole region.”
Kesterson says the 2019 applications will be vetted by DMME’s abandoned mine land team, selected by an advisory council and approved by the federal Office of Surface Mining before they’re announced by the governor this spring.
The state is investing nearly $1 billion in technology education, and Virginia Tech will be the largest recipient — along with bearing responsibility for producing more than 16,000 computer science degree-holders over the next two decades.
Gov. Ralph Northam announced in November that 11 state colleges and universities will receive $961.5 million through the commonwealth’s Tech Talent Investment Program, established in response to the workforce needs of Amazon.com Inc. and other tech companies.
The goal is to create 31,000 trained computer scientists by 2040.
Virginia Tech will receive $545 million in long-term funding to help educate half of those new students, generating 5,911 bachelor’s degrees and 10,324 master’s degrees from its main Blacksburg campus and its forthcoming Innovation Campus in Alexandria.
“What makes this pipeline so unique is that it’s an investment in our people,” says Peter Blake, director of the State Council of Higher Education for Virginia. “It’s a commitment to hiring more faculty, upgrading equipment and laboratories, and developing partnership agreements with academic institutions.”
Tech will hire “on the order of 60 to 70 new faculty members,” says Julia Ross, dean of the Virginia Tech College of Engineering. “This will be a broad-based expansion of our operation, but it will be very narrowly focused on computer science and engineering.”
At the master’s degree level, Ross says, the additional funding will allow Tech to develop new “frontiers of computing” — with concentrations in artificial intelligence, data analytics, cybersecurity and machine learning. Most graduate students will study at the Innovation Campus, just a couple of Metro stops from Amazon’s in-progress HQ2 East Coast headquarters, which spurred the state initiative.
Ross emphasizes, though, that the pipeline isn’t just about the online shopping giant, which Virginia lured with promises of a well-trained workforce. The move will also help the state address a shortage of tech talent felt across the nation.
“There are 11,000 unfulfilled jobs in computer science and related fields right now, just in the D.C. area,” says Lindsey Haugh, director of communications for the College of Engineering, citing the U.S. Bureau of Labor Statistics.
“There are a host of different jobs available, and there isn’t the workforce to fill those positions,” Ross says. “As we graduate a larger number of students and they move into the workforce, this will enable different companies to move much more quickly.”
When the governors of Virginia and Maryland announced plans in November to replace the aging American Legion Bridge, it may have sounded like a chorus of angels to woebegone commuters who make their way across the Potomac River each weekday.
“A new bridge means commuters will get to work and back home faster,” said Gov. Ralph Northam. “Our teams have identified a way to fix one of the worst traffic hotspots in the country.”
The bridge has been operating beyond its capacity for nearly four decades, according to the Virginia Department of Transportation. About 235,000 vehicles travel on it daily, a nearly 400% increase in traffic since the bridge opened in 1962. And with the region’s population expected to grow by another 1.2 million by 2040, traffic is bound to get heavier. Planners estimate that the project will cut commuting times in half for many travelers.
The $1 billion project, set to start in 2022 and finish within five or six years, is too late for Cheryl Marks of McLean, who just retired from the National Institutes of Health in Bethesda.
Over the years, Marks and her carpool colleagues learned their way around the backroads to avoid traffic. Once they even hopped on White’s Ferry to cross the Potomac.
“For 46 years I drove back and forth on that bridge,” she says. “When I first started, I didn’t work with anybody who worked in Virginia. By the time I left, a third of the people were coming from Loudoun.”
The “Capital Beltway Accord” will add two express lanes and replace existing lanes each way between the George Washington Memorial Parkway and River Road in Maryland. Utilizing public-private partnerships for funding, Virginia will pay 21% and Maryland will pay 79% of the expected costs.
Victor Hoskins, president and CEO of the Fairfax County Economic Development Authority, sees the plan as yet another sign of regional cooperation, like the Maryland-Virginia-Washington D.C. joint funding of the Metro system. “Now with the governors of Maryland and Virginia, along with many state and local lawmakers, supporting the widening of this critical bridge, we have made another leap forward in growing the region’s interrelated economy,” he says.
Marks, however, isn’t optimistic about the chances of relieving the bottleneck at the bridge. “There have been so many projects on the Beltway, but they’ve never been synchronized. There’s just too damn much traffic.”
The proposed replacement of the Richmond Coliseum is stirring up strong feelings among elected officials and residents in the city, but a dozen miles up Interstate 95, a smaller arena in Henrico County is quietly moving forward.
Filling a need for indoor space to host high school basketball and other indoor sports tournaments and local indoor recreation sports leagues, the proposed 220,000-square-foot, 4,500-seat indoor sports arena is set to be built at Virginia Center Commons mall on the site of the former Sears department store, which closed in January 2019.
The county Board of Supervisors approved a $50 million public-private investment for the project, financed by a bond sale. In November, the board authorized purchasing the 25-acre site and entered negotiations with Richmond construction company The Rebkee Co., which submitted an $8.3 million proposal.
Rebkee was under contract to purchase the majority of the mall in early December, says Rob Hargett, the company’s principal and co-founder, and plans to demolish or repurpose the vacant Sears building.
In late January, entities connected to Rebkee and Chester-based Shamin Hotels purchased 76 acres, including the mall, for $12.8 million, according to a news report by the Richmond Times-Dispatch. After the purchase, the partners sold nearly 25 acres to the county for $8.3 million, including the former Macy’s, where the arena will be built.
Proponents say the arena could generate approximately $17 million in annual visitor spending, which includes meals and hotel and sales tax revenue.
A new hotel near the arena is also in the cards, with Shamin Hotels working with Rebkee on the redevelopment plan. The entire project, including the indoor sports center and hotel, will take an estimated five years. The goal is to open the indoor sports center by June 2022, and the hotel would be completed later, Hargett says.
The county expects to finish the facility planning by the end of 2020, and the operator will be chosen in the first quarter of the year.
Richmond-based nonprofit Sports Backers worked with Henrico County Recreation & Parks last year on an impact analysis report, studying similar-size facilities and markets, including those in Mobile, Alabama, and Myrtle Beach, South Carolina.
“You will see significant sports tourism from the facility, but it will still have a very strong recreation mix,” says Jon Lugbill, director of Sports Backers.
About 20 to 30 weekends a year at the new arena will be dedicated to tournaments, Lugbill says. But there will be time available for recreation leagues in numerous sports, from gymnastics to fencing, and graduation ceremonies.
Women may make up more than half of Virginia’s population, but their presence in the statehouse has always fallen far short of parity. This year’s election brought a seismic change, however.
Rachel Bitecofer, assistant director of the Wason Center for Public Policy at Christopher Newport University, says that women now hold 41 of the General Assembly’s 140 seats. While still not equal, that translates to 29% of the legislative body, and that, she points out, is a darn sight better than the 15% of seats women now hold in Congress.
“I can’t stress how much of a change this is over 2017, when female representation in the state legislature was still below 20%,” Bitecofer says. “It would not be an overstatement to say that 2020 will be the Year of the Woman in Virginia politics.”
Meet some of the notable female legislators who are part of this new paradigm:
Editor’s Note: All photos contributed except Danica Roem (photo by Stephen Gosling) and Shelly Simonds (photo by Will Schermerhorn/Blueberry Shoes Productions).
As a first-time delegate in 2017, Dawn Adams, the first openly lesbian Virginia legislator, squeaked into office by a margin of less than 1% of the vote. This time she won easily, but her reelection has been clouded by two controversies. First, Adams cosponsored legislation that would have lifted restrictions on third-trimester abortions. She later disavowed the unsuccessful bill and apologized for not exercising “due diligence” before attaching her name to it. An even fresher controversy, though, is a lawsuit brought by her former legislative aide, who alleged the delegate may have accessed the former aide’s personal email and social media accounts without permission in order to “cover up” evidence that the aide had performed unpaid work for the delegate’s private company. Adams, a nurse practitioner and health-care advocate, “strongly” denied the allegations in a pre-election statement.
Del. Hala Ayala
Del. Hala Ayala (D-Prince William County)
D-Prince William County
When stumping for Hala Ayala’s reelection, U.S. Sen. Cory Booker cited the famous Martin Luther King Jr. quote about how “the arc of the moral universe is long, but it bends toward justice.” Then, he added, “We cannot wait for the arc to bend. We must be arc benders.” Ayala could put “arc bender” on her résumé. Two years ago, the single mother of two became one of the first two Latinas elected to the General Assembly. (The other was Elizabeth Guzman, D-31st District.) Ayala tells a bootstrap story about her determined rise from a
service worker with no health insurance for her children to a respected cybersecurity specialist working for the Department of Homeland Security. As a legislator, she has channeled that determination into advocating for women’s and minority rights. Her focus has been on raising the minimum wage and ensuring equal pay and affordable health care access for her constituents. “I want to fight for those who can’t fight for themselves,” she says.
Del. Lashrecse Aird (D-Petersburg)
Del. Lashrecse Aird
D-Petersburg
After easily winning her third term in office, progressive millennial lawmaker Lashrecse Aird made a bold bid to be House speaker, which would have made her not only the first woman to hold that post, but the first African American. At age 33, she would have been one of the youngest state speakers in the nation’s history, as well. “I think I’m exactly what is necessary to unify us as a caucus,” said the confident Aird, who even had a 60-day transition plan ready if she got the job. But it was not to be. Instead, a six-term moderate, House Minority Leader Del. Eileen Filler-Corn of Fairfax, 55, was tapped for the speakership. Aird was gracious in defeat, though. “[I’m ready] to roll up my sleeves and get to work,” she says.
Sen. Amanda Chase
Sen. Amanda Chase (R-Chesterfield County)
R-Chesterfield County
Just call her Sen. Teflon. In a state that has turned blue and has experienced a major mass shooting in the last year, Sen. Amanda Chase is known for packing heat on the floor of the state Senate. In the #MeToo era, she has called rape victims “naive and unprepared.” And there’s more. In September, the Chesterfield GOP gave her the boot for supporting the opponent of a Republican nominee for sheriff. That controversy came on top of damaging press about Chase’s heated argument with a Capitol Police officer over a parking issue. Yet, the vocal Trump fan won reelection handily and she keeps on fighting — most recently with her fellow Senate Republicans. She announced in November she wouldn’t caucus with them in protest over the selection of state Sen. Tommy Norment, R-James City County, as minority leader.
Sen. Siobhan Dunnavant (R-Henrico County)
Sen. Siobhan Dunnavant
R-Henrico County
Dr. Siobhan Dunnavant knows how to multitask. As a mother, a business owner and a physician — she’s the only medical doctor in the Senate — she’s had lots of practice with problem-solving and consensus-building. “It’s the only way I can get everything done,” she quips. “Everything” includes helping to pass 55 pieces of legislation during her first Senate term. Twenty-six of those bills concerned health care, and 13 were passed in conjunction with Democrats — an example of the consensus-building she touts. In 2015, the pro-life Dunnavant, who has delivered more than 2,500 babies, won her first term in a runaway. This election, however, was decided by fewer than 2,000 votes and featured the specter of a polarizing president, close to $5 million in partisan spending and rough attack ads about gun control and abortion. On what turned out to be a dark day for the state GOP, Dunnavant described her narrow victory as “a bright shining light. We’re going to get great things done for Virginia,” she promises.
Del. Wendy Gooditis
Del. Wendy Gooditis (D-Clarke County)
D-Clarke County
Better health care for Virginians is personal for Wendy Gooditis, who cruised to victory over the same opponent she faced in her debut run for delegate in 2017. Until recently, Gooditis and her family had medical coverage through the Affordable Care Act. Her brother, who had been denied Medicaid coverage for his longstanding mental-health problems, died by suicide two years ago. Those facts were a catalyst for Gooditis to not only support Medicaid expansion but to take a leading role in passing legislation meant to strengthen suicide-prevention programs, a law that garnered unanimous support in both chambers of the General Assembly.
Del.-elect Nancy Guy (D-Virginia Beach)
Del.-elect Nancy Guy
D-Virginia Beach
Former Virginia Beach School Board member Nancy Guy declared victory over incumbent Republican Del. Chris Stolle – but it wasn’t a done deal. Guy won by just 27 votes, or about 0.02% of all votes cast, and Stolle — whose siblings are Republican state Sen. Siobhan Dunnavant and former state Sen. Ken Stolle — filed for a recount. However, he ended up conceding after the December recount found Guy ahead by 41 votes. Her election gives the Democrats a 55-45 majority in the House of Delegates.
Sen.-elect Ghazala Hashmi
Sen.-elect Ghazala Hashmi (D-Chesterfield County)
D-Chesterfield County
Home is not a place, it’s a feeling, a wise woman once said, so when the Trump administration proposed a partial ban on Muslim refugees entering the country, Ghazala Hashmi panicked. “I had to wonder, after living here for nearly 50 years, whether I had a home anymore,” she said. The answer to that question turned out to be a resounding “yes” when voters made her the first Muslim woman elected to the Virginia Senate. Born in India, Hashmi emigrated to the United States with her family at age 4. She campaigned on typical Democratic priorities such as gun control, expanded educational opportunities and climate change, but she characterized her win as a victory for any Virginian who has felt “unheard, unseen and unrepresented.” Says Hashmi: “This victory is not mine alone.”
Del. Charniele Herring (D-Alexandria)
Del. Charniele Herring
D-Alexandria
As the first African American woman to represent Northern Virginia in Richmond and the first African American to chair the state Democratic Party, being first has become almost second nature to Charniele Herring. Now she is a double first — the first woman and the first African American to become House majority leader. “The nature of what I am, a woman and a black woman … it’s not been an easy road,” Herring says. She is tired of being considered a novelty, too. “We hear of two African American women thinking about running for governor, and that’s awesome,” she said recently, referring to state Sen. Jennifer McClellan, D-Richmond, and Del. Jennifer Carroll Foy, D-Woodbridge. However, she adds, “then people say, ‘But what if they run against each other? Then maybe one won’t win the general election.’ We need to call that kind of thinking out.”
Sen.-elect Jen Kiggans
Sen.-elect Jen Kiggans (R-Virginia Beach)
R-Virginia Beach
Jen Kiggans believes in public service, and she doesn’t just talk about it. Kiggans spent 10 years as a Navy helicopter pilot, including two deployments to the Persian Gulf, and her day job now is as a nurse practitioner caring for adult and geriatric patients. The first-time politician won a squeaker of a race, which came down to just 514 ballots. In the final tally, she earned 50.36% of the votes. Now, as a legislator, and the only female veteran in the General Assembly, she plans to concentrate on what she knows best: veterans’ affairs and health-care reform. She intends to listen carefully to her constituents and value their priorities. “What you see is what you get with me,” Kiggans says.
Sen. Jennifer McClellan (D-Richmond)
Sen. Jennifer McClellan
D-Richmond
Jennifer McClellan didn’t just beat her opponent on her way to reelection. She shellacked him: 47,195 to 11,432. That power at the polls is adding to speculation that the state senator and former 11-year delegate might have her sights set on the governorship in 2021. Earlier this year, McClellan launched a political action committee to help elect Democrats to state offices, and speculation is that the PAC could also be used to advance her gubernatorial aspirations. Back in February, the African American legislator was rumored to be on the short list of potential lieutenant governor appointees when it seemed possible that either Gov. Ralph Northam or Lt. Gov. Justin Fairfax might be forced to resign over scandals involving blackface and alleged sexual misconduct, respectively. The Verizon corporate lawyer said then that the timing wasn’t right for her. However, as this unprecedented election attests, the times they are a-changin’.
Del. Danica Roem
Danica Roem (D-Manassas). Photo by Stephen Gosling
D-Manassas
“I’m grateful to represent you because of who you are — never despite it,” Democrat Danica Roem tweeted after she won reelection. That was a none-too-subtle reminder of how Roem initially came to office two years ago. Then, she was the first openly transgender person to be elected and serve as a state legislator in the U.S., and her run against an incumbent who styled himself as the commonwealth’s “chief homophobe” had propelled Roem into the national spotlight. Running for reelection, Roem focused on her record as a freshman delegate and less about who she is. She delivered on her promises to constituents, she said, by expanding Medicaid, raising teacher pay and chipping away at that perpetual problem of the Washington suburbs, traffic. Her reward? Thumping her opponent and successfully becoming a pothole politician.
Del.-elect Shelly Simonds (D-Newport News). Photo by Will Schermerhorn/Blueberry Shoes Productions.
Del.-elect Shelly Simonds
D-Newport News
In 2017, Shelly Simonds lost her race for delegate by zero votes. Happily for her, her rematch against Republican David Yancey “didn’t have to end with a bowl,” she says. That’s a reference to the highly publicized ceramic bowl from which the chairman of the State Board of Elections randomly drew a film canister containing Yancey’s name, declaring him the winner in early 2018. The election had been a crucial one; a Simonds win would have ended the GOP’s 17-year domination of the House, creating a delegate deadlock at 50-50. This time, in a reconfigured district, no bowl was required. Simonds trounced Yancey by 18 percentage points. “I’m just so glad that the voters of Newport News helped us rewrite the ending of our story,” Simonds says.
U.S. Sen. Tim Kaine has “a little window” into what it looks like when the balance of power shifts in a Virginia legislative body.
He was Virginia’s governor in 2007 when Democrats took control of the state Senate. That wasn’t nearly as seismic a change as Virginians will witness this General Assembly session when Democrats will have control of the entire state government for the first time since 1993 (see Page 20 for our General Assembly preview), but it was enough to give Kaine some insights into the pitfalls Democrats should avoid this time around.
Kaine addressed the Virginia Chamber Foundation’s 10th annual Virginia Economic Summit in December. Photo by Caroline Martin
Kaine shared his predictions for the commonwealth’s 2020 legislative session with me during the Virginia Chamber Foundation’s 10th annual Virginia Economic Summit, held Dec. 6 at the Greater Richmond Convention Center.
“There’s a couple of things I predict,” said the 2016 Democratic presidential running mate who was once dubbed “America’s Dad.” “First, the Republicans will use their parliamentary mastery from running the [legislative] bodies to try to throw roadblocks into Democrats’ way.”
It’s been 25 years since Democrats have called the shots in both chambers, and Republicans have been running the General Assembly more or less consistently since then, so Kaine has cautioned the legislature’s new Democratic leadership that they need “to be super diligent on the procedures and parliamentary measures” to ensure that Republicans don’t block legislation from getting out of committees.
Additionally, Kaine has counseled eager legislators in the new majority party to prioritize their session wish list. “There’s such a pent-up demand because there hasn’t been a [Democratic] legislative majority” for such a long time, he said. And even though there are probably a hundred or more bills Democrats would like to pass, it’s “better to do five big ones and get them done” and focus on another five in the 2021 session.
Two of those five priorities, said Virginia’s junior U.S. senator, will most likely be the Equal Rights Amendment and gun safety legislation. The latter issue was a major factor in the 2019 General Assembly elections, Kaine added, with voters expressing displeasure at the way Republican lawmakers shut down Gov. Ralph Northam’s special session on gun violence following the May 2019 mass shooting in Virginia Beach.
Taking “meaningful steps to address gun violence — the scar tissue of which is still felt in Virginia for all kinds of reasons — that’s really important,” said Kaine, who was governor during the 2007 Virginia Tech mass shooting, then the deadliest such attack in U.S. history.
What’s also really important is that this session’s legislature will be composed of the most diverse group of lawmakers in Virginia’s long history, featuring a record number of female legislators. (You can read about some of the assembly’s notable women in our feature on Page 26.)
As with tensions seen among the national Democratic presidential hopefuls, such diversity can also create a push and pull between various factions, such as moderates and progressives. However, Kaine described it as healthy for the party, saying, “We pride ourselves on that. There’s no way to be a big tent demographically and be a small tent ideologically.”
And emblematic of this change is the person on Virginia Business’s cover this month — Speaker of the House Eileen Filler-Corn, the commonwealth’s first female speaker. (Read our interview with her on Page 32.)
“I think it’s massive,” Kaine said, noting that Filler-Corn will also be Virginia’s first Jewish speaker of the House. “I was the first Catholic governor and it took 70 governors to get to a Catholic. It’s taken hundreds of years to where a Jewish person could have one of the highest positions in Virginia.”
Of course, Filler-Corn didn’t campaign on either of those firsts when she was seeking the post. She was the legislature’s first female House minority leader and she worked hard to earn support for her speaker bid, he said, “but we can all celebrate that she’s breaking two glass ceilings.”
If colleges and universities have a golden age, then this may be Liberty University’s.
Finished in 2018, Liberty’s 275-foot-tall Freedom Tower rises above the Rawlings School of Divinity and is the tallest building in Lynchburg. Photo courtesy Liberty University
Founded in 1971 by televangelist Jerry Falwell Sr., the Lynchburg-based institution will mark its 49th year in 2020.
For decades, the school battled debt — at one point in the triple-digit millions — and was threatened with losing its accreditation.
Today, Liberty University — a 7,000-acre evangelical Christian institution often held up as one of the most conservative bastions of higher education in America — is the largest college in Virginia and one of the world’s largest Christian universities by enrollment.
The turnaround, especially in recent years, has been remarkable.
After years of counting pennies and sometimes coming up short, Liberty now is financially strong — with an endowment valued at more than $2 billion, according to university officials following a recent audit of finances. In September, the university also reported total assets of $3.13 billion.
And combined with the clout wielded by Jerry Falwell Jr., the university’s high-profile, well-connected and controversial president, Liberty has been able to attract a long line of political luminaries, sports stars and celebrities as speakers.
Recent commencement speakers include President Donald Trump, former President Jimmy Carter and Vice President Mike Pence. Former U.N. Ambassador Nikki Haley, NFL stars Brett Favre and Michael Vick and actors Gary Sinise and Dean Cain have been featured guest speakers at the university’s weekly convocations.
Looming large
During the past 12 years, the university has raised its cash and assets while pouring $1.6 billion into changing itself from a little-known outpost of higher education into a showcase for the transformational power of money, proper positioning, aggressive marketing and — it has to be said, prayer — on a college campus.
When Lynchburg Regional Business Alliance CEO Megan Lucas goes out of town to court economic prospects, she jokes that the region’s official bird is the construction crane.
Liberty is Lynchburg’s “economic engine,” says Lynchburg Regional Business Alliance CEO Megan Lucas. Photo by Meridith De Avila Khan
During the past several years, “every crane west of Richmond has been in Lynchburg on the campus of Liberty University. It’s our economic engine,” Lucas says.
The fevered pace of building and campus development has been breathtaking at times, she says. It’s perhaps best evidenced by the university’s 275-foot-tall Freedom Tower. Opened in 2018, it rises above the Rawlings School of Divinity, which bills itself as the world’s largest school for religious studies and ministerial training.
“The buildings are significant,” Lucas adds. “You think about a state-of-the-art indoor track, a state-of-the-art natatorium. Since I’ve been here, they’ve built those two buildings. They finished a baseball stadium and a softball stadium. They expanded the football stadium. They added a school of business.”
A momentous spike in enrollment occurred between 2007 and 2016, when the university saw a compounded annual student growth rate of 13.94%.
Today, Liberty is one of the nation’s largest private nonprofit educators, with a total enrollment of more than 111,000, including 15,500 on campus and a huge online student body.
Once a pioneer in online education, Liberty is now a powerhouse in the field.
Heeding the call
Jerry Falwell Jr. took on the presidency of Liberty University after the 2007 death of his father, the university’s founder. The elder Falwell wrote that his son was “more responsible, humanly speaking, for [Liberty’s] miraculous financial survival … than any other person.” Photo by Meridith De Avila Khan“It was just another one of these entrepreneurial things Dad did,” says Falwell Jr., 57, in explaining the growth of online education at Liberty and the development of its business model, which began with videotaped lectures and tests delivered by mail.
“It started in 1976 with nonaccredited courses for adults. In 1985, we started with accredited courses. It didn’t make any money for about 20 years. It was just a way for people who couldn’t move and leave their jobs and mortgages to get a degree,” he says.
“But during that 20 years, between 1985 and 2005, we perfected [online education] and got the Southern Association of Colleges and Schools to bless it, as far as being comparable in academic quality to residential instruction.
“In 2005 … everyone started getting high-speed internet in their homes, and we were the only nonprofit school in the country poised to serve that huge adult market of people who didn’t finish college or [who] needed a master’s degree to get a promotion,” Falwell says.
Between 2004 and 2014, Liberty’s online enrollment surged by 740% from around 11,000 online students to more than 95,000, according to a report by the Chronicle of Higher Education.
Falwell’s father left a life insurance policy that paid out $29 million to Liberty University at his death in 2007. The university’s debts were paid, but it had no significant endowment funds.
The younger Falwell made it his mission to raise an endowment that would secure the university’s future and immunize it from making choices that would compromise its Christian principles.
“If online went away tomorrow, we would have enough income from our [$2 billion] endowment to subsidize our resident program for perpetuity,” Falwell says. “And we’re adding to it about $250 million a year right now.”
He adds, “We just had our best year ever,” with a billion dollars in revenue. That’s up from an annual revenue of $860 million five years ago.
Liberty’s total assets grew by $317.5 million in just the last year, and its operating revenue earned last year grew by $92.7 million, while operating expenses grew by only half that rate, according to the Liberty Journal, an official publication of the university.
One driver of that revenue growth, according to Falwell, has been increasing margins — revenues over expenses — in the online program while also keeping an eye on residential program expenses, often trimming programs where demand is diminishing.
The Liberty president says he thought “we’d have more competition” online from other colleges than there is now, “and the reason we don’t is that tenured faculty [at other institutions] don’t think [online teaching is] prestigious enough.”
Liberty does not offer tenure to its faculty members.
Speaking at his office, Falwell, whose pastor father favored dark suits and a red tie, appeared in a checkered button-up shirt, jeans, loafers and a Burberry jacket with an embroidered LU logo. He wears suits, of course, but casual dress is part of his personality.
Falwell, a graduate of the University of Virginia School of Law, never sought Liberty’s presidency, he says.
“When I took over [in 2007], I was 44. I had been an attorney, and I had been a commercial real estate developer, and I hated public speaking. So, I didn’t want to be [president] … but I had to be.” he says.
Falwell explains that he knew the business side of the college from his long tenure as the university’s general counsel. He also served as a member of the Liberty’s board of trustees before his father’s death.
“My job as general counsel was to … restructure debt, negotiate with creditors, talk them into not foreclosing and finding money to make payroll. You talk about a high-stress job, and I was the only one who he [Jerry Falwell Sr.] would tell how bad things were.”
In his autobiography, Falwell Sr. praised the younger Falwell’s business acumen.
“He is more responsible, humanly speaking, for the miraculous financial survival of this ministry than any other person,” the elder Falwell wrote.
In time, Falwell Jr. says he warmed to the role of president and has poured himself into the job.
“I finally did become comfortable with the public side of it. They say I was so shy before, but now I won’t shut up — that’s what my family says. So, I’m doing what I always thought I would hate,” Falwell says, laughing.
Casting stones
Much like his father, who founded the political organization Moral Majority in 1979, Falwell Jr. is also a lightning rod for controversy.
When Falwell urged students to obtain concealed weapons permits in 2015, it set off a firestorm, but that didn’t slow down Liberty’s move toward making firearms a part of the campus environment.
Liberty’s $3.2 million gun range, which opened in 2018, includes classroom space for courses in firearms safety and best practices for carrying a concealed weapon. Photo by Meridith De Avila Khan
In 2018, in response to what Liberty officials have portrayed as a student interest, an athletic opportunity and a commitment to the Second Amendment, the university opened its $3.2 million Liberty Mountain Gun Club shooting range.
Falwell has also been very public with his support for Republican candidates and political figures, notably recently naming former GOP Rep. Dave Brat as dean of Liberty’s business school.
Last month, the university announced the establishment of its new Falkirk Center for Faith and Liberty, a conservative think tank co-founded by Falwell and Turning Point USA co-founder Charlie Kirk, a prominent supporter of President Trump. The organization is “dedicated to renewing and defending God-given freedoms in America and restoring Judeo-Christian-based principles in our national policies, institutions and culture,” according to a university news release.
Ryan Helfenbein was tapped in December as executive director of Liberty’s new Falkirk Center for Faith and Liberty, a conservative think tank co-founded by Falwell. Photo by Meridith De Avila Khan
Falwell’s enthusiastic endorsement of Trump’s 2016 presidential bid drew criticism from a Liberty student group that argued that Trump did not reflect Liberty’s Christian values. Falwell has said his endorsement was personal and not on behalf of the school. Nonetheless, the nonprofit, tax-exempt university later drew criticism for selling Liberty-branded Trump hats and T-shirts featuring Trump’s “Make America Great Again” campaign slogan when he spoke at the university in 2017.
More commotion was raised this year after Politico Magazine and Reuters issued reports — based on interviews with anonymous critics and leaked emails — questioning whether the university’s resources were being used for the financial benefit of Falwell friends or family members.
For example, the university sold an 18-acre sports facility with a fitness center and tennis courts to Falwell’s personal trainer in 2016. Reuters reported that the university sold the property to the trainer for $1.2 million after Liberty paid the trainer $650,000 in advance to lease back tennis courts over the next nine years. The university financed the transaction’s remaining $576,000 with a 3% interest rate loan to the trainer, who wasn’t required to put any money down, Reuters reported.
The university issued a detailed response to the Reuters story, describing the sale as beneficial to the university. A Liberty trustee had donated the athletic center to the university in 2011 and it had become “a drain on university resources,” Falwell said in the statement. The trainer, who had been leasing space to run his business in the facility’s fitness center since 2013, was “the most viable purchaser,” according to the university.
Falwell explained in the statement that the facility’s reduced price reflected the fact that Liberty retained rights to use the tennis courts, disrupting the ability of the new owner or any successor to fully utilize the facility, thus diminishing its value.
Reuters also reported this year that former Trump lawyer Michael Cohen, who is serving a three-year federal prison sentence for fraud, lying to Congress and campaign finance violations, was recorded by actor Tom Arnold saying Cohen had helped Falwell prevent the release of personal photos. In a statement from his lawyer, Falwell has denied the existence of any such photos or seeking legal assistance from Cohen, whom he described as a longstanding friend.
In January 2019, The Wall Street Journal reported that Cohen paid a company owned by Liberty’s chief information officer to attempt to rig two online news polls in favor of Trump in 2015.
Falwell and Liberty have issued lengthy rebuttals to the various allegations and news reports. At one point, Falwell accused disgruntled former university employees and board members of “an attempted coup” in making highly critical anonymous comments in the Politico article. He told other media outlets in September that he had contacted the FBI over emails leaked to the press that he said amounted to stolen university property.
Falwell says he “thrives” on controversy.
“If the right people are upset with you, it means you’re doing something right,” he adds.
Yesterday, today and forever
Falwell believes that Liberty’s current residential population — topping out at 15,500 — is the proper size for the university’s Lynchburg campus, and he doesn’t plan for it to grow.
His father had hoped that Liberty would grow to 50,000 students, and might have found it miraculous that online degree-seekers would catapult Liberty’s enrollment over the 100,000 mark.
The elder Falwell also would have undoubtedly been pleased by the endowment his son has built, which Falwell Jr. says will provide a future stream of resources that will ensure Liberty’s stability.
It will, he says, allow the university to move forward “into infinity … with 3%, 4%, 5% returns every year.”
Meanwhile, the money from the school’s online students — average age 37 — continues to pour in, as do students and conservative parents who are attracted to Liberty’s strict moral code governing residential students — no premarital sex, no alcohol, no tobacco, no social dancing.
Rob Jenkins, a professor for Georgia State University and a columnist for the Chronicle of Higher Education, says that 2019 was the eighth straight year that higher education enrollment has declined, and it will fall further, forcing numerous colleges to close.
But he believes that Liberty and other institutions with large endowments and a pipeline of ready students will survive the enrollment decline.
But even though the university’s doing well now, Falwell says, it must be prepared for anything.
“You don’t know what the next president’s policies will be toward religious institutions, you don’t know what the climate is going to be for a student loan program,” he says. “Nobody has a crystal ball.”
As the economy has been on the rise, so have hotels in many parts of Virginia.
During the past 12 months, Virginia’s hotel industry has seen more than a billion dollars invested in hotel construction and renovation — everywhere from Richmond to Bristol.
“The bulk of that is new construction,” says Eric Terry, president of the Virginia Restaurant, Lodging & Travel Association. But it also includes renovations of aging properties that required sprucing up to attract a new generation of travelers.
As Virginia’s economy has gotten stronger, developers have engaged in a hotel building spree, says Eric Terry, president of the Virginia Restaurant, Lodging & Travel Association. Photo by Matthew R.O. Brown
Much of the industry’s growth is “due to [the] fact that we were pretty stagnant,” Terry says. “When I got back to Virginia in 2014, there was almost no new construction. The pace has accelerated as the market has gotten stronger.”
In this improved economy, he says, REITs (real estate investment trusts) “are very active” in hotel construction, “and so is more traditional financing.”
Distributing dividends on a quarterly basis, REITs are uncorrelated to stocks and bonds, and help investors diversify their portfolios. About 87 million Americans invest in REITs, according to the National Association of Real Estate Investment Trusts.
But “quite a bit of capital is available [from] traditional real estate financing” as well, Terry says. “Even smaller banks are doing some of that, especially in Virginia Beach.”
The down side
Virginia Beach hotel developer Bruce Thompson, CEO of Gold Key|PHR, is happy about the abundance of capital.
But the economic benefits are “devoured by escalating construction costs,” he says, and modest increases in occupancy and room rates aren’t offsetting those higher expenses.
“I don’t foresee any decrease on construction pricing or additional room demand anytime in the near future. So my company is taking a ‘wait and see’ approach and looking for opportunities to acquire existing hospitality assets to reposition them at values less than replacement costs,” Thompson says.
Steven Parrish, senior vice president of Aikens Group, based in Winchester, has another worry.
The Aikens Group owns two hotels in Front Royal and two in Winchester, including the Hampton Inn & Conference Center. Photo courtesy The Aikens Group
“Financing is easier today than it has been in the past 10 years. The economy is doing well. Banks tend to lend. Now people are able to go out and get money,” Parrish acknowledges. His concern is that the building boom is leading to oversupply. And what goes up must come down. “It goes in cycles.”
Nonetheless, hotels are popping up across the state, including in areas that traditionally have been underserved. Here are some of the latest projects.
Richmond
Family-owned Shamin Hotels, the largest hotel ownership group in Virginia, has seen a robust demand for hotel space recently, especially in its own backyard south of Richmond.
The Chester-based company, which owns, operates and develops hotels in six states, is building a 200–room, full-service hotel and a 10,000-square-foot conference center with retail and restaurants at Stonebridge in Chesterfield County.
The county has long had a need for meeting space that can accommodate events for the growing number of tourists visiting the county, says Shamin CEO Neil Amin. “That’s why we are excited to work with them on it.”
The company also plans to develop a Hampton Inn and Home 2 Suites by Hilton in Chester. “It’s two hotels in one location,” Amin says. “That way it’s able to have a larger fitness center, and it improves services for guests.”
In downtown Richmond, Shamin has acquired an old office building that it plans to convert into a Moxy hotel, Marriott’s boutique brand. “It’s more of a lifestyle brand,” says Amin. “We’re talking to a brewery to come to the hotel.”
Chesterfield County-based Shamin Hotels is converting the Hampton Marina Hotel into a Tapestry Collection hotel, an upscale Hilton brand. Rendering courtesy Shamin Hotels
The commonwealth “is a very stable market” for hotels, “which we like,” Amin adds. “We are long-term holders. We’re looking at the next 10 to 20 years. With 60 hotels, we’re renovating about 10 a year, improving the technology as well as the décor.”
Also in the region, Richmond-based Apple Hospitality REIT Inc., which has 235 hotels in 34 states, announced in October that it had purchased the 31-year-old Berkeley Hotel in the city’s Shockoe Slip area for approximately $7 million. The publicly traded REIT plans to turn the building into a 55-room boutique hotel. The hotel is about four blocks from Apple Hospitality’s headquarters.
The company also is making a multimillion-dollar investment in the Richmond Marriott hotel in downtown Richmond, its first major renovation since 2009.
Consistent reinvestment “has always been an important part of our ownership strategy,” says Justin G. Knight, president and CEO of Apple Hospitality. “We are generally able to fund our projects through operations, using our strong balance sheet to manage cash flow throughout the year.”
Richmond has been considering the redevelopment of a 10-block area of city-owned land known as Navy Hill around the site of the now-shuttered Richmond Coliseum. A 527-room Hyatt Regency hotel has been included in the proposal, but Connie Brewer, market director of sales, marketing and revenue management for Richmond Marriott Downtown, isn’t worried about the potential competition.
“The city needs more rooms because there are not enough hotel rooms for the number of people the convention center can accommodate,” she says. “As a city, we are losing opportunities for those larger pieces of business,” without an adequate number of hotel rooms.
Hampton Roads
Management hospitality group Gold Key|PHR currently has more than $200 million in lodging under active development and construction. More than half of that is attributable to the $125 million Marriott Virginia Beach Oceanfront, the second phase of a project that has included renovation of the city’s historic Cavalier Hotel and Beach Club.
“However, we’ve also had to put three projects we initiated at the first of the year on hold until either construction pricing becomes more competitive or the market either grows in occupancy or average daily room rates to accommodate these increased costs,” Gold Key’s Thompson says.
Shamin also has projects in the area. It’s renovating the Renaissance Hotel on the Portsmouth waterfront and converting the Hampton Marina Hotel into a Tapestry Collection hotel, an upscale Hilton brand.
In Norfolk, Clancy & Theys Construction Co. Inc., based in Raleigh, North Carolina, is turning the historic Royster building into a 117-room boutique hotel for its owner, Suburban Capital.
Northern Virginia
While the state’s hospitality market generally has been exploding, Northern Virginia has seen a decline in hotel construction in recent years after the Base Realignment and Closure Act reduced the Department of Defense’s presence in the region. But Amazon’s planned second headquarters in Arlington’s Crystal City neighborhood is sparking talk of hotel construction and redevelopment, Terry says.
Lodgeworks Partners LP is developing a 178-room Archer Hotel near the Silver Line’s McLean Metro station. Rendering courtesy Cityline Partners
Already Park Hotels & Resorts is considering redevelopment of its DoubleTree by Hilton in Crystal City.
“There’s been less [hotel building] in Northern Virginia, but that’s probably going to turn around,” Terry adds.
In the ever-growing Tysons area, Lodgeworks Partners LP, owner, operator and developer of the Archer Hotel collection, is planning a 178-room hotel near the Silver Line’s McLean station. Farther down the Silver Line, next to the Wiehle-Reston East station, a 250-room hotel is being developed by Marriott International and Comstock Partners.
Shenandoah Valley
Four hotels also are being built by various companies in the Shenandoah Valley, according to Parrish of Aikins Group. The company currently owns two hotels in Winchester and two in Front Royal.
Parrish has seen rapid growth in the area before. Between 2006 and 2008, just before the recession, four or five hotels opened in the area, he says. “It was oversupplied. Nothing was built between then and now. It took that long for the market to absorb it.”
Now, though, “the numbers are pretty good,” and it makes sense to build, he says. But he’s concerned that it’s too much of a growth spurt for the valley region. “They should have added a hotel — one or two, but not four. The times are good right now, but four is probably a couple too many.”
Elsewhere in the state
Opening this March in Bristol, the boutique Sessions Hotel pays homage to the city’s heritage as the birthplace of country music. Photo by Earl Neikirk
Developers are finding creative ways to build hotels in smaller communities, too. Places such as Farmville and St. Paul “are really being helped with tax credits and grants available through the state,” Terry says.
South Boston has received nearly $1 million in historic tax credits to renovate the John Randolph Hotel.
These historic tax credits “have been in existence for quite a while, but they weren’t quite as viable,” Terry says. “You can’t do a whole project on tax credits. You’ve got to have traditional financing as well. The time is right for that.”
South Boston worked with Creative Boutique Hotels, a Virginia-based partnership between Williamsburg’s Cornerstone Hospitality and Henrico County-based developer Hal Craddock, focused on the developing boutique hotels in small markets and on the repurposing of historic buildings.
Creative Boutique Hotels also had a hand in turning three historic buildings in Bristol into the brick-and-beam boutique Sessions Hotel, expected to open in late January or February. To emphasize the city’s heritage as country music’s birthplace, Americana singer and songwriter Jim Lauderdale is working with the developers to program concerts at the hotel’s indoor and outdoor stages and host his radio show on-site, says Kimberly Christner, president and CEO of Cornerstone Hospitality.
“It is the place for music,” she says. “We’re just going to continue to perpetuate that with our music program.”
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