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Ecosystem insights

Leaders from across Virginia’s entrepreneurial ecosystem discuss investing in new companies, challenges facing and advice for success.

RASHEEDA CREIGHTON

EXECUTIVE DIRECTOR, ,

WHAT LED TO YOU CO-FOUNDING JACKSON WARD
COLLECTIVE FOUNDATION?

JWC Foundation’s mission is to learn, grow and own in the Black community. The organization began when Kelli Lemon and I separately came to the realization that we needed a Black incubator in Richmond. For Kelli, the need was clear as she worked to open Urban Hang Suite, which remains the only Black-woman-owned coffee shop in Richmond. At the same time, I was working at Capital One as executive director of what is now the Michael Wassmer Innovation Center. So much great programming was happening in the space for entrepreneurs, and yet, many of the tenants in the building and participants in the program didn’t look like me. There were a mix of reasons: not knowing what was taking place, not being connected, marketing efforts, but regardless, it was clear we needed a space where we could gain the skills, network and resources to build sustainable businesses.

WHAT TRENDS ARE YOU SEEING AMONG STARTUPS RIGHT NOW?

We are seeing a lot of professional services and personal wellness businesses emerge. We are also continuing to see the trend of businesses starting from side businesses while people are working full-time jobs. 

HOW DOES BEING AN ENTREPRENEUR-LED ORGANIZATION HELP YOU TO BETTER SUPPORT OTHER FOUNDERS?

I am a firm believer that lived experience is one of our most valuable tools. Our staff is made up of entrepreneurs, and those who we bring in to engage in any of our programming are also entrepreneurs speaking from lived experience. It is much easier to learn from those who aren’t speaking theoretically but who know what it’s like to walk this sometimes-difficult journey because their advice is practical, and they are willing to share the lessons learned — good and bad.

RICH DIEMER

MANAGING DIRECTOR, CAV ANGELS, CHARLOTTESVILLE

WHAT’S YOUR PROCESS FOR RECOMMENDING WHETHER YOUR MEMBERS SHOULD INVEST IN A COMPANY?

CAV Angels is a network of 160 accredited investors, all with a connection to [the University of Virginia], that vote with their checkbooks on the deals that we bring to them. We perform due diligence, share our DD report and schedule an all-member virtual pitch. My mission is to present members with a diverse assortment of fundable deals capable of delivering angel-type returns. Quite frankly, that is as much an art as it is a science, and [as] our due diligence process evolves with each deal, we consider whether it is a yes or a pass.

WHAT TRAITS DO SUCCESSFUL STARTUPS RIGHT NOW SHARE?

The key is the ability to pivot, to survive and even thrive in the current funding desert, to have the ability to convert adversity into opportunity and demonstrate true grit — not just talk about it. Business models need to be both durable and flexible.

WHAT ARE THE BIGGEST MISTAKES FUNDERS MAKE WHEN PITCHING?

Let’s start with the initial pitch deck. Pitch decks that are too long (12-15 pages should be plenty), too technical or too complex can be disqualifying. We look for founders [who] are both passionate and practical. It is just as important to demonstrate an ability to listen and have an open mind as it is to [make] a good pitch. Realize that knowing your customer is important and when you are seeking capital, we are also your customer. Understand that you are entering into a long-term partnership, and we like to see evidence that you value your reputation as much as we value ours. 

NANCI HARDWICK

FOUNDER AND CEO, AEROPROBE; MELD MANUFACTURING,

WHEN DID YOU KNOW MELD’S INDUSTRIAL METAL 3D PRINTING TECH WAS GOING TO SUCCEED?

I knew in the beginning that the MELD was a long shot. I was curious and optimistic about the challenge, but not sure of my capability to create success. In my journey from idea to manufactured product, I experienced many highs and lows. During the lows, I questioned my decisions, my capability and our chances of survival. When [R&D World magazine’s] R&D 100 [Awards] named our large-scale metal printing process the most disruptive new technology across the globe, it was early validation that this technology would change the world.

WHAT ADVICE DO YOU HAVE FOR FOUNDERS IN MANUFACTURING?

There is a tremendous amount of support available for manufacturing companies at the federal and state level. Virginia is a great state for manufacturing startups. Additive manufacturing — 3D printing — is a great example of a current opportunity for startups in manufacturing, which I see firsthand at MELD Manufacturing, where we make MELD [industrial 3D printing] machines. We’ve had so much demand for printed parts that we launched a separate company named MELD PrintWorks. Even at Aeroprobe, where we have been manufacturing avionics equipment for over 30 years, we are finding new markets with products using 3D printing.

WHAT CHALLENGES MIGHT ENTREPRENEURS NOT TAKE INTO CONSIDERATION WHEN STARTING A BUSINESS?

All entrepreneurs face the challenge of meeting the expectations we put on ourselves. The pressure doesn’t lessen with progress, because we then adjust our expectations and change the definition of success. I don’t know any short-term entrepreneurs. It’s a long-term commitment to an idea, a company and a team. Invest in your own physical and mental health to go the distance. Share the importance and purpose of your work with your family and friends. Find customers that find value in the product and are willing to walk the development journey with you. Work beside capable people who believe the world will be a better place if your company and product succeed.

CONAWAY HASKINS

VICE PRESIDENT OF ENTREPRENEURIAL ECOSYSTEMS, , RICHMOND

HOW HAS VIRGINIA’S ENTREPRENEURIAL ECOSYSTEM MATURED IN RECENT YEARS?

Virginia has a variety of vibrant ecosystems which reflect the unique dynamics of our regions and industries. Over the past few years, we’ve seen increases in the number and dollar amounts of deals going to Virginia companies, and the number of patents filed now exceeds pre-COVID levels. We have also seen a steady increase in the R&D funding flow into Virginia universities, and the commonwealth remains one of the top three or four states for companies securing federal innovation funding via the Small Business Innovation Research and Small Business Technology Transfer programs. These are all great signs of ecosystem growth and maturity.

ARE MORE STARTUPS REALLY USING AI, AND IF SO, HOW?

Yes, we see more and more startups that use AI to automate business processes and streamline the work of employees. It can help efficiency and productivity, especially for young companies that need to conserve cash. Just as interestingly, we are also seeing wider adoption of AI by other ecosystem players such as accelerators, incubators, economic development agencies and venture capital funds.

HOW DOES VIRGINIA’S ECOSYSTEM COMPARE WITH THOSE IN OTHER STATES?

Over the years, Virginia has steadily developed robust resources, which makes us highly competitive with other states. For example, our venture investment program will bring over $170 million in new venture capital funding into the state over the next 10 years via the federal State Small Business Credit Initiative, which will be leveraged by more than $200 million in private-sector venture capital dollars. This program is now being recognized as a potential national best-practice model. Another example is the Virginia Accelerator Network, a consortium of nonprofit accelerators, incubators and innovation hubs spread throughout the state who all serve high-growth, innovation-led startups. The VAN collaboration optimizes how Virginia’s ecosystems serve entrepreneurs, which gives us a competitive edge over other states. Most other states lack such a network.

DEBBIE IRWIN

MANAGING DIRECTOR, LIGHTHOUSE LABS, RICHMOND

YOU RAN SHENANDOAH COMMUNITY CAPITAL FUND BEFORE MOVING TO LIGHTHOUSE LABS. HOW DOES METRO RICHMOND’S ECOSYSTEM COMPARE WITH THE SHENANDOAH VALLEY’S?

The type of support that founders need, outside of industry specifics, is usually very similar. From overall business and operations support to community and mental/emotional support, founders need a place where they can ask hard questions and get direct feedback. I see more similarities in the types of startups each market is working with than differences. There is a lot of innovation in both markets, just in different industries, but there is definitely more density and diversity of industries in the Richmond ecosystem, which is exciting.

HOW IMPORTANT ARE EVEN SMALL AMOUNTS OF CAPITAL FOR STARTUPS?

Nondilutive funding is crucial to startups, especially for underrepresented founders. There are high barriers (although sometimes necessary) to entry for founders when it comes to getting through market validation to product market fit. That time between those two stages is also often when entrepreneurs hit the entrepreneurial trough of sorrow. During those mentally taxing times, being able to have some money in the bank to push through and keep up with pivoting and testing can often be make-or-break for many startups.

PAUL NOLDE

MANAGING DIRECTOR, 757 COLLAB; EXECUTIVE DIRECTOR, POWERED BY VENTURESOUTH, NORFOLK

HOW ARE THE ENTREPRENEURIAL ECOSYSTEMS ALIKE IN RICHMOND AND ?

Both ecosystems are at a point where stakeholders are trying to find alignment around what industries each region can double down on from a “center of excellence” perspective. While both regions have similar entrepreneurial assets, I’ve observed a closer alignment between these stakeholders in the Hampton Roads region. In some cases, it’s due to who has a seat at the “regional leadership table,” and in other cases it’s due to how particular organizations are structured. Where Richmond seems to excel vis-à-vis its entrepreneurial ecosystem is in the density of founders choosing to call RVA home and the number of Fortune 500 [companies] located there that could present channel partnership opportunities for startups.

WHAT MAKES 757 COLLAB UNIQUE IN VIRGINIA?

There are certainly other entrepreneurial support organizations in the state that offer incubation, acceleration and funding resources, but I think 757 Collab differs in two ways: the breadth and scope of services under one roof, and how active its affiliated angel network is. Collab is the only ESO [entrepreneur support organization] that has an incubator, accelerator, angel network and fee-for-service pre-acceleration offerings under one common brand. The organization is certainly the sum of its parts, with each line of business having achieved brand recognition in [its] own right. But the combination of these resources on one platform makes for a very compelling venture hub to attract the most promising startups in the region and beyond.

WHAT ADVICE WOULD YOU GIVE ENTREPRENEURS?

Be humbly confident and approach your venture with a firm hypothesis on where you think the industry in which you’re operating is headed from a macro level.

The ripple effect

Major storms year-round are bringing an increased risk of to the doorsteps of property owners across Virginia, but changes in the market for flood could mean some will be ill-prepared when the water rises.

Some inland Virginians have learned firsthand in recent years about the devastating toll of flooding, which has long been a reality in . There, shoreline erosion threatens properties on the water, while hurricane season is always fraught.

With the exception of 2003’s Hurricane Isabel, coastal Virginia has avoided a direct hit from the nearly 100 hurricanes that have made landfall in the continental U.S. during the past 60 years. The 2024 Atlantic hurricane season will once again test whether that streak can continue.

“I don’t like to cry wolf, but we’ve been really lucky for a long time,” says Michael Vernon, founder and CEO of Hampton Roads, based in Virginia Beach. “A lot of people have gotten used to being lucky, and they’re not doing the things that they need to be doing in a hurricane season anymore.”

Specifically, Vernon worries that too many homeowners have become lax in tackling flood mitigation efforts because they no longer see any real financial benefit to do so. Most Hampton Roads policyholders have seen their premiums go down since late 2021, he says, when the Federal Emergency Management Agency () began updating its pricing structure for the National Flood Insurance Program (NFIP). But that meant a once-common incentive to make flood-prevention improvements to properties, in the form of reduced premiums, effectively disappeared.

As of April 1, FEMA has fully implemented the new pricing approach, or what’s known as “Risk Rating 2.0.” The changes followed a 50-year period during which NFIP had not adjusted rates or premiums — even as the frequency of flooding increased alongside costs. 

The Virginia Beach, Norfolk and metropolitan statistical area in Hampton Roads ranks as the fifth most at-risk region nationwide for storm surges, with reconstruction costs estimated at more than $122 billion as of 2023, according to the Insurance Information Institute. (The Washington, D.C., metro region, including Arlington County and , also rank as the fifth most at-risk region for hurricane winds, with reconstruction costs estimated at $704.8 billion.)

A direct hit to Hampton Roads from a hurricane could be catastrophic, Vernon says. If a future storm were to make its way into the Chesapeake Bay and then drift a little bit south? “That’s when we’re in trouble,” he adds. With a of about 1.8 million, Hampton Roads is the second most populous region of the state.

Flood Insurance Hampton Roads CEO Michael Vernon says homeowners aren’t incentivized to make flooding mitigation improvements under new FEMA policies impacting flood insurance pricing. Photo by Mark Rhodes

Mitigation efforts

Hurricanes deservedly get a lot of attention because of how destructive they can be in a brief period. In 2022, Hurricane Ian wrought $117 billion in damages in about three days, largely in Florida.

But flooding is both the most common and costliest natural disaster in the United States. These events have accounted for $1 trillion-plus in damages since 2000, according to The Pew Charitable Trusts, which provides data on conservation science and other issues. That’s slightly less than FEMA’s flood insurance program could cover for nearly 4.7 million U.S. policyholders as of March.

In theory, $1.3 trillion might be sufficient were it not for serious solvency issues: The program currently owes more than $20.5 billion to the U.S. Treasury, and the problems with NFIP don’t end there. Risk Rating 2.0 has been the subject of much derision and contention.

In June 2023, 10 states, including Virginia, joined dozens of municipalities to sue FEMA over rate hikes brought about by the new pricing approach. The lawsuit also alleges that FEMA isn’t properly taking into account community flood mitigation efforts. 

There are massive mitigation projects underway, including a nearly $1 billion project in Virginia Beach that includes drainage improvements, tide gates, pump stations and flood barriers. And new construction is required to be compliant with FEMA codes.

However, the type of work Vernon did on homes in Hampton Roads has dried up considerably in the wake of Risk Rating 2.0, though the agency promises that property owners who undertake mitigation projects can still receive reduced premiums. The risk of more flooding combined with less urgency to mitigate could result in more claims from homeowners who are covered up to $200,000 in damages apiece with an NFIP policy.

Over the course of 12 years, Vernon designed mitigation projects for more than 1,500 homes — recommending flood vents, say, or relocating mechanical equipment or filling in a basement. While the work could be costly, it was a worthwhile investment: Homeowners benefited from lower premiums, and there was less stress on the program more broadly. “All that’s gone now,” Vernon says. 

But the need for preventative measures remains. Flood protection is important because, in an ideal world, flooding would never happen in the first place, says Martin Johnson, chief external affairs officer at Virginia Realtors. Local, state and federal governments — individually or in concert with each other — can play a crucial role in protecting against flood damage, he adds. 

“Albeit not perfect, and not yet a perfect solution, there has been a targeted focus on infrastructure design so that when that Category 5 storm hits, we’re better prepared for it,” he says.

Commercial coverage

Whenever that next big storm does arrive, commercial property owners could face different risks than homeowners. The NFIP has proven to be a ballast of sorts for commercial property owners, with relatively stable pricing and availability for commercial property owners, according to Matthew Thompson, sales leader and a vice president at Marsh McLennan Agency. 

The market for private flood insurance for commercial properties has become “pretty bleak” in recent years, says Thompson, who has worked in the industry for 13-plus years, focusing entirely on flood insurance for commercial properties, primarily multifamily dwellings.

Now, property owners are facing more difficulty obtaining sufficient coverage to satisfy lender requirements, along with higher rates and more limited capacity, Thompson says. “The private market is probably the worst maybe it’s ever been.” 

What’s changed? There’s been a shift in the broader property market since 2022’s Hurricane Ian, Thompson says. Insurance companies that were issuing commercial flood insurance policies in abundance, and particularly for coastal properties, either exited the flood insurance market entirely or started limiting their capacity “pretty significantly,” he says. 

To be fair, neither Thompson nor Vernon has heard rumblings of insurance companies refusing to provide coverage in flood-prone parts of the state, as has happened in areas of Florida besieged by hurricanes, or California, where wildfires are common. But simple dynamics of supply and demand have created a more time-consuming and costly prospect of for flood insurance.

“The carriers that remain in the market providing flood insurance are offering it on terms that are much more favorable to them — higher deductibles, higher pricing — so they won’t be impacted as much financially in the event of a catastrophic event,” Thompson says.

Quantifying rate increases for commercial property owners is “very hard to nail down” because so much depends on specific factors like a property’s location, coverage limits and loss history, Thompson says. He and his colleagues, he adds, are spending more time now than they did a few years ago to replace or renew policies, which also increases costs for policy owners.

Another challenge? Helping commercial property owners fill the void beyond an NFIP policy if lenders require significantly more flood insurance coverage, Thompson says. For commercial properties, an NFIP policy covers up to $500,000 in flood-related damages — and doesn’t offer any sort of business interruption coverage, he adds. 

“Some people either aren’t meeting their lender requirements or we’re having to work with them and their lender to get waivers for whatever the requirements are,” Thompson says. “That’s a lengthy, cumbersome process, but we’ve been successful doing it.”

Waiting for the flood

The flood insurance market for commercial properties is seeing carriers raise deductibles and pricing so they won’t be impacted as much by catastrophic events, says Matthew Thompson with Marsh McLennan Agency. Photo by Matthew R.O. Brown

A lengthy process, likewise, is convincing Virginians to warm to the idea of flood insurance, which isn’t required for a vast majority of property transactions in the state, Virginia Realtors’ Johnson notes. 

Getting more property owners to voluntarily take out policies would put more money in the coffers for NFIP to pay out claims in flood-prone areas where coverage is mandatory.

Once again, Vernon blames Risk Rating 2.0 for upending incentives. “FEMA has for years advertised trying to get people in voluntary zones to buy flood insurance,” he says. “Now they’re pricing flood insurance in voluntary zones at crazy rates that are forcing people to drop the policy.”

Across Virginia, just over 3% of homeowners have coverage through NFIP, according to the Insurance Information Institute. That share rises to double digits in coastal counties, even approaching 25% in Mathews County, a Middle Peninsula coastal community where flood insurance is mandatory for many property owners.

In these areas, flood insurance is a topic that’s difficult to ignore — and can be yet another hassle for those buying property. “Whereas three, four years ago, insurance might have been an afterthought, now it’s one of the first things we’re trying to judge when underwriting a potential investment,” Thompson says.

If flood insurance is required by the lender, Johnson says, he’s aware that, in some cases, a policy may prove too costly for some buyers who will seek out other property instead. Virginia Realtors has a long-standing policy recommending its members talk about the value of flood insurance with buyers, just like any insurance product, Johnson says. 

“What we counsel our members to say is, ‘Flood insurance, when it’s not required, is relatively inexpensive, and it gives you that safeguard that if something were to occur, you’re covered,’” Johnson says. “We believe it’s a very wise investment and protects the interest of that property owner.”

Whatever’s holding people back from taking out flood insurance policies, a lack of awareness isn’t to blame. In 2019, then-Gov. Ralph Northam introduced Flood Safety Awareness Week, which has continued under Gov. Glenn Youngkin. Both governors cited the same 3% statistic about coverage.

Two years after severe flooding in Southwest Virginia, less than 2% of homeowners in affected Buchanan and Tazewell counties currently have NFIP coverage, according to the Insurance Information Institute.

Could a major hurricane be the wake-up call Virginians need to take the threat of flooding more seriously? The 2024 Atlantic hurricane season started June 1, and this year could be “extremely active,” according to an April forecast from researchers at Colorado State University. There’s a 62% probability of at least one major hurricane making landfall on the continental U.S. coastline this year, well above the long-term average. 

While Vernon hopes Hampton Roads can continue its long-running streak of relative luck, things might look a lot different there now if 2018’s Hurricane Florence hadn’t made a last-minute change in trajectory.

“If that storm had continued our way,” he says, “we would be talking about hurricanes a lot differently than we are now.”  

The retail experience

Twisted Branch Tea Bazaar on ‘s Downtown Mall entertains its Tea Club members with monthly tastings, while nearby New Dominion Bookshop offers story times and “Friday Night Writes,” an event featuring emerging writers.

And about a mile north at McIntire Plaza, outdoor gear and clothing consignment shop High Tor Gear Exchange has hosted outdoor equipment exchanges, workshops and even an art show.

This type of experiential is getting some of the credit for luring customers back to the city’s brick-and-mortar stores and giving them a bit of a post- bump, as vacancy rates in the city’s six primary districts have dropped to the lowest point since January 2020, according to a report released in January by the Charlottesville Office of Economic Development.

“The general trend is that the vacancy rate has dropped a bit,” says Chris Engel, director of for the city, although “there’s a fair amount of fluctuation. There’s been continual churn since the pandemic.”

In January 2020, just ahead of the pan-demic, the city had 20 vacancies among 450 retail properties, or a 4.47% vacancy rate. The following year, the number jumped to a 7.66% vacancy rate. As of January 2024, the city’s retail districts had 19 vacancies — a 4.2% vacancy rate.

The report surveys retail properties within the city’s six major shopping areas: Barracks Road; the Downtown Mall; McIntire Plaza; Preston Plaza; Seminole Square; and The Corner. The twice-yearly retail vacancy study is the 32nd such report conducted by the city’s economic development office.

Engel cites the value of experiential retail in the . Business magazine Fast Company has noted it too, reporting in February that 80% of customers believe that the experience a company provides is just as important as its products and services. Examining consumer trends shaping retail this year, Fast Company recommended hosting “events, entertainment or classes. Whatever it is, make it something unique they can’t get from other retailers — or from shopping online.”

Here’s a look at how retailers across Charlottesville are responding to this trend and how the six shopping districts are faring:

Downtown Mall

One of the newest experience-rich stores in Charlottesville is The Beautiful Idea, which opened on the Downtown Mall in mid-September 2023. The shop is “one-third radical bookstore, one-third things like shirts and greeting cards. And the front third is flea market-style, with LGBTQ jewelry and artwork,” says co-owner Joan Kovatch, adding that a lot of the store’s art is “pretty politically radical” and “a little on the spicy side.”

More importantly, the store aims to be a community hub “with a queer focus. We want people to spend time and hang out. We want to be an actual welcoming space.”

None of Beautiful Idea’s three co-owners have owned a brick-and-mortar store before, but they’re learning the advantages of “selling an experience,” Kovatch says. The store hosts movie nights, book discussions and offers trainings on topics such as overdose prevention and online security.

Being located on the Downtown Mall has been great for foot traffic, according to Kovatch. Charlottesville’s pedestrian mall, which opened nearly five decades ago on the city’s historic Main Street, features community events and workshops and includes an outdoor music and entertainment venue.

The Downtown Mall area’s vacancy rate has dropped from 5.79% to 3.14% since the July 2023 economic development office’s study; there were six vacancies among the district’s 191 storefronts as of January.

Beautiful Idea’s neighbors on the mall include C’ville Arts, Daedalus Bookshop, Magpie Knits, Jean Theory and Decades Arcade, featuring vintage pinball machines and arcade games.

There are restaurants nearby, and when there are shows at nearby Paramount Theater and Ting Pavilion, “we see a lot more traffic,” Kovatch says. “There’s local traffic, but a lot comes from people visiting,” especially during the holidays. “It’s been bigger than we anticipated. We’ve been able to set some money aside for projects. Our longer-term goal is to have a community center.”

Seminole Square

Minerals & Mystics was “a walk-in place, but we’ve become a destination store. People come for who we are. They say, ‘We had to find out what your name is about,’” says owner Leah Williams.

The store, which sells sterling silver jewelry, incense, candles, rocks and minerals, also has expanded the number of experiences it’s able to offer customers since changing locations to a bigger storefront in Seminole Square this spring.

“Our space more than doubled when we moved. We have a coffee shop. We offer classes. Our goal is to offer holistic health in one area where people can have a moment of peace,” Williams says.

Minerals & Mystics owner Leah Williams (left) shows customers Mike McAdams and Hank Hall around her store at Charlottesville’s Seminole Square. Williams sells jewelry, incense, candles, rocks and minerals at her shop. Photo by Jeneene Chatowsky

The bigger space, tucked between a nail salon and a barber shop, is in a better location, offering more visibility, she adds. “As you come into the shopping center, you can really see us now. We’re already seeing some new faces.”

Other stores in the shopping center include Dover Saddlery, Super Shoe and Plan 9 Music.

Williams also hopes that new customers will be drawn to Seminole Square by a substantial renovation being undertaken in the shopping district.

Charlottesville-based Great Eastern Management Co. owns the shopping center, which includes a former Giant store and other commercial sites. Great Eastern plans to redevelop part of Seminole Square’s nearly 24 acres into a mixed-use development with at least 350 apartments.

“They’re moving toward groundbreaking. It probably will be early in 2025,” Engel says. “A lot of things have to come together to get a big project like that off the ground.”

Seminole Square, which opened in 1986, “has been in a rut,” Williams says. “The city wants to improve livability on Route 29. I’ll be interested to see how that will change things.”

Since part of the site is set to become an apartment complex, “we’ll see if people shop where they live.” In the meantime, Williams says, she isn’t daunted by the disruption. In her view, “construction makes people curious. I think we’ll see a lot of interest. It’s something new and different.”

The Corner

The number of retail vacancies at The Corner, located across the street from the University of Virginia, remains “pretty constant,” according to Engel.

While the retail vacancy rate rose from 3.28% in January 2020 to 4.91% in January 2024, retail locations at The Corner continue to benefit from proximity to U.Va. and UVA Health’s University Hospital, according to the city economic development report.

There are three vacancies out of 61 storefronts, up by just one vacancy from July 2023.

The Corner has attracted major chains such as CVS and fast food restaurant Raising Cane’s, which opened last October, but “if you calculate the figures, you’ll find … more stores [in the district] are small and locally owned,” Engel says.

For example, family-owned Mincer’s, which sells U.Va.-branded apparel, gifts and accessories, has been open since 1948.

One of the newest additions to The Corner is actually a return: Littlejohn’s, a New York-style deli, first opened in 1976 but closed during the pandemic. In mid-April, it reopened in the same space after four years.

“We’re fortunate to see a constant cycle of new small businesses,” Engel says, noting that Chaps Ice Cream, an old-fashioned ice cream parlor located on the Downtown Mall for more than 35 years, recently opened a second location at The Corner.

The Plazas

Vacancy rates remain stable at two small Charlottesville shopping centers, according to the economic development report.

Preston Plaza, a small shopping center in the middle of Charlottesville that was built in 1968, has no vacancies, according to the report. That’s been unchanged since January 2021. The plaza has 10 storefronts, including a bakery, an upscale consignment shop and several restaurants.

And McIntire Plaza, just north of the Charlottesville historic district, has seen miniscule changes since the July 2023 vacancy study. It currently counts just a single vacancy out of its 59 storefronts, which house antique stores, a jewelry store, a glass gallery, a coffee shop and math tutoring and custom-sewing services.

Given the location and low lease rates, that vacancy is expected to be filled quickly, according to the economic development office. McIntire Plaza currently has a 1.69% vacancy rate, which is anticipated to drop back to 0% in the next report.

What sets the two shopping areas apart from others in the city, says Engel, is that they offer “more accessible price points to local owner-operated businesses.”

Barracks Road

Martine Funari, founder and CEO of Fluffy’s Pet Shop, has been at Barracks Road

Shopping Center for five years. The store sells natural pet treats and vitamins, toys, accessories and pet outfits, including Halloween costumes. “We even have things for cats. We have cakes for cats for birthday parties in the shape of a fish. They’re cute as a button,” she says.

The outdoor strip mall located on U.S. Route 29 opened in 1957 in Albemarle County before the city annexed the land it sits on six years later. The shopping center got a facelift about a dozen years ago, with the removal of its concrete canopy. New design elements included a trellis structure, lounge seating areas, screening walls and a central fountain.

The city’s latest retail vacancy report finds an 8.33% vacancy rate at Barracks Road, up from 7.14%. That’s partly due to the closing of a 36,000-square-foot Bed Bath & Beyond store, Engel says. The big-box home goods chain filed for bankruptcy in April 2023. Barracks Road has 84 storefronts. The January report shows seven vacancies.

The COVID pandemic was hard on business, says Funari. The store was closed for more than four months amid the pandemic, but the pet shop has “a lot of regular customers, mainly connected with the university,” she says, and the shopping center is doing well overall. “There’s a mix of big stores, and there are a few mom-and-pops like us. It gives the place good equilibrium.”

Soma — a women’s lingerie, swimwear and sleepwear shop — opened in December 2022.

“Business really has picked up. We have a great following already,” according to Joann Rock, sales lead for the Soma store. A Chico’s FAS brand, Soma had been part of a nearby Chico’s women’s clothing store before opening in the separate storefront.

A big benefit of the Barracks Road location is the overall shopping experience, according to Rock. “People have shopped here for years and years. There’s a mix of clientele, a blend of stores. It’s a stable environment.”

A teenager who goes to Barracks Road to shop at Aerie, an American Eagle brand for young women, “might be with her mother who goes to us or goes to Chico’s,” Rock says. “I think that mix is doing well for us.” 

Keswick Hall Photo courtesy Keswick Hall

Charlottesville at a glance

Widely known as home to Thomas Jefferson’s Monticello estate and the University of Virginia, the Charlottesville region is located about 65 miles west of Virginia’s state capital. The city was founded in 1762, with the Jefferson-designed U.Va. campus founded 57 years later. The region is popular for vineyards, breweries and distilleries, as well as for access to the Blue Ridge Mountains. The area’s largest industries include higher education, , defense, hospitality and tourism. 

Regional 1

  • Charlottesville: 51,132
  • Albemarle County: 116,148
  • Buckingham County: 16,673
  • Fluvanna County: 28,214
  • Greene County: 21,370
  • Orange County: 37,629
  • Nelson County: 14,713

Major employers

  • University of Virginia/UVA Health
  • Albemarle County
  • Sentara Health
  • City of Charlottesville
  • U.S. Department of Defense
  • Northrop Grumman
  • Crutchfield Corp.
  • CFA Institute

Major attractions

Monticello, the home of America’s third president and author of the Declaration of Independence, is a UNESCO World Heritage Site that draws visitors from around the globe. You can see the distinctive Jefferson-designed Rotunda at U.Va. Another must-see for history-minded visitors is Highland, the Albemarle estate of President James Monroe. Charlottesville’s Downtown Mall is a good place to visit for eating, shopping and socializing. Take in the natural beauty of the surrounding Blue Ridge Mountains along Skyline Drive and the Blue Ridge Parkway and at Shenandoah National Park. Hikers will savor Instagram-worthy views from Spy Rock and Humpback Rocks. Take a break from picking apples and peaches at Carter Mountain Orchard with live music and apple cider doughnuts. Or take a tasting tour through area vineyards like Jefferson Vineyards, Trump Winery, Blenheim Vineyards and Pippin Hill Farm & Vineyard.

Major convention hotels

  • Boar’s Head Resort
     168 guest rooms and suites;
    22,000 square feet of meeting/event space
  • Kimpton The Forum Hotel
     208 guest rooms and suites;
    22,000 square feet of meeting/event space
  • Omni Charlottesville Hotel
    205 guest rooms and suites;
    12,441 square feet of meeting/event space

Boutique/luxury hotels

  • Albemarle Estate at Trump Winery
  • The Draftsman
  • Graduate Charlottesville
  • Keswick Hall
  • Oakhurst Inn
  • Quirk Hotel Charlottesville

Notable restaurants

  • C&O
    French, candorestaurant.com
  • Ivy Inn
    American, ivyinnrestaurant.com
  • Orzo Kitchen & Wine Bar
    Mediterranean, orzokitchen.com
  • Smyrna
    Mediterranean-Aegean, smyrnacville.com
  • The Ridley
    Southern, ridleyva.com

1 July 2023 estimates from University of Virginia Weldon Cooper Center for Public Service based on 2020 U.S. Census Bureau data

Jefferson Lab scientists to study water treatment methods

, the -based Thomas Jefferson National Accelerator Facility known worldwide for its highly scientific research, is now looking to take on solutions to everyday problems, starting with eliminating harmful chemicals in drinking water.

Jefferson Lab researchers use high-energy electron beams to study the building blocks of matter. This research helps scientists understand the fundamental forces that govern the behavior of matter at its most basic level. 

As part of the ‘s Accelerate initiative, which brings this type of scientific research down to earth, Jefferson Lab was awarded a $7.5 million grant in September 2023 to develop new technologies for industrial applications. The Energy Department runs the Newport News facility.

Jefferson Lab will work on the project with researchers from Fermi National Accelerator Laboratory in Batavia, Illinois; Florida International University; General Atomics in San Diego; and other industry partners. 

For the next two years, Jefferson Lab scientist John Vennekate will lead a team of three scientists to research how to remove per- and polyfluoroalkyl substances (PFAS) from drinking water. The chemicals are found in many consumer products such as nonstick pans, waterproof fabrics and shampoos. Current methods do not break down or remove PFAS from drinking water, which can lead to health issues such as cancer and liver disease and thyroid problems.

“These are the ‘forever chemicals,’ and we will research how to break them down using the electron beam generated by ,” Vennekate says.

Vennekate, along with other Jefferson Lab scientists, will use superconducting radio frequency (SRF) to research if PFAS will break down under the particle accelerator’s powerful electron beams. The goal is to develop smaller accelerators for wastewater treatment applications.

“We want to use our technology on a smaller scale,” Vennekate says.

The research adds to recent at Jefferson Lab, which last autumn announced that a $300 million to $500 million computer and data facility will be constructed on its campus, set to be complete by 2028.

Researchers from all over the world will be able to seamlessly access data from a wide range of sources and scientific facilities in a secure environment. “This will be a top-notch facility that will allow us do more science and more discovery,” Vennekate says.  

Winchester region sees state’s biggest population growth

Since 2020, has gained traction as Virginia’s fastest-growing metro area due to an outflow of remote workers from the Washington, D.C., region to the exurbs. That’s squeezing the local housing market and boosting prices — as well as causing worry among the region’s leaders.

“Living in Winchester versus D.C. is very attractive for federal workers if you only need to go into the office occasionally,” says Hamilton Lombard, a demographer at the University of Virginia’s Weldon Cooper Center for Public Service, citing Winchester’s lower cost of living.

Between 2020 and 2023, the Winchester and metro area saw a 4.6% rise in , or an increase of 5,554 people, outpacing every other metro area in Virginia for the same period, Lombard says.

“Most years, Fairfax, Loudoun and Prince William are the top source for people moving into the Winchester area,” contributing about 4,000 new Winchester-Frederick residents, based on data from tax returns, he notes.

But the area’s residential reach is expanding as “between a third and a half of all work in the Winchester area is now being done remotely, which is above the national average,” Lombard says.

Jeff Buettner, executive director of the Winchester Authority, says the city isn’t actively recruiting remote workers. Neither is neighboring Frederick County, according to Patrick Barker, executive director of the county’s economic development authority.

Still, new residents have been arriving since the , responding to rising house prices in their home regions, says Blue Ridge Association of Realtors CEO Rob Wigton. But prices in Winchester and surrounding localities also have risen. Over the past year, the median price of an area single-family home rose 10.2%, and in March, the median selling price was $437,500.

High interest rates also are keeping the supply of available homes tight, says Winchester broker Meghan Pachas.

However, new construction may ease that demand. Frederick has seen a lot of new builds, says Wigton, adding that there are some people who aren’t pleased with the . He disagrees.

“If you’re not growing, you’re dying,” Wigton says. “It’s just a matter of growing smartly.”

Winchester will soon see an uptick in construction of new housing, Buettner says. City leaders are looking ahead, planning for future stormwater, road and school needs.

“We’re going to work on the infrastructure before it happens, as opposed to being reactionary after the fact,” Buettner says.

FOR THE RECORD June 2024

CENTRAL VIRGINIA

Washington, D.C.-based real estate analytics and data company CoStar Group will receive a grant from the City of Richmond worth several million dollars because of the company’s plan to build an office tower expected to generate more than $30 million in new tax revenue. On April 22, Richmond City Council approved an ordinance to refund 75% of the company’s new real estate taxes and all of its new business property tax for the first three years after the 26-story tower is built. For the following seven years, the city will give back a smaller portion of CoStar’s taxes. (Richmond Times-Dispatch)

Richmond-based Endeavour Legacy Foundation has pledged $20 million to Hampden-Sydney College, the second largest gift in the college’s history. The college will use the gift, announced May 14, toward renovating its former science center, Gilmer Hall, into an academic facility housing the economics and business, and government and foreign affairs departments, with completion expected in 2026. (VirginiaBusiness.com)

Paymerang, a Chesterfield County-based payment and invoice automation company, has signed a definitive agreement to be acquired by Atlanta-based corporate payments processor Corpay for $475 million, according to an SEC filing and a May 8 news release. The transaction is expected to close in the second quarter of the year, subject to regulatory approval and standard closing conditions. -based Aldrich Capital Partners, a equity firm, is parting with Paymerang, after acquiring the company in 2018 following a $26 million investment. Paymerang has 300 employees and the company will stay where it is, with no leadership changes expected, a company spokesperson told Virginia Business. (VirginiaBusiness.com)

After a closed meeting, Petersburg City Council abruptly voted on April 24 to pick Baltimore-based Cordish as the developer for a potential casino in the city, canceling a competitive bidding project. The company’s proposal, planned in conjunction with former NFL Hall of Famer Bruce Smith, is a mixed-use gambling and entertainment development that could total $1.4 billion in investments over 15 years. On May 1, Petersburg Mayor Sam Parham said he stood by the allegation that his city faced political pressure from the General Assembly to choose a particular developer or risk losing the chance to have a casino altogether. (Virginia Mercury) 

Richmond City Council approved a new financial structure to build a minor league baseball stadium at the Diamond District in a 6-0 vote on May 8. Under the new plan, Richmond will issue $170 million worth of general obligation bonds, and revenue from the stadium and the surrounding development would pay off the debt. If, however, the revenue doesn’t materialize, the city will have to cover the cost by raising taxes or cutting services. Major League Baseball and the Richmond Flying Squirrels team, who have pushed for the stadium to open by 2026, expressed support for the initiative. (Richmond Times-Dispatch)

Topsoe, a Danish electrolyzer manufacturer, is planning to build a $400 million manufacturing facility in Chesterfield County after receiving $136 million in federal tax credits to help fund construction, the company announced April 19. The plant is expected to create about 150 jobs, according to a news release from the offices of U.S. Sens. Tim Kaine and Mark Warner and U.S. Rep. Jennifer McClellan. Topsoe will manufacture solid oxide electrolyzer cell (SOEC) stacks, which help produce renewable or “green” hydrogen, in Chesterfield. A May 1 announcement from Gov. Glenn Youngkin noted that the Meadowville Park facility would be Topsoe’s largest U.S. investment. (VirginiaBusiness.com)

EASTERN VIRGINIA

Mary, the tunnel boring machine that has been paving the way for the expanded Hampton Roads Bridge-Tunnel, hit a milestone April 15 when it finished the first of twin tunnels that are part of the bridge-tunnel’s expansion. Launched from the HRBT’s South Island a year ago, the $70 million custom-built tunnel boring machine has been busy — it excavated 7,900 feet, or 750,000 cubic yards of soil, while installing 1,191 concrete rings behind it, according to the Virginia Department of Transportation. Now, it’s ready to turn around and do it all over again on the return trip to carve out the expansion’s second tunnel. (VirginiaBusiness.com)

MacArthur Center mall in downtown Norfolk is expected to be replaced by a major mixed-use development, which could be called “The Anchorage,” featuring a 400-room, military-themed hotel and 518,000 square feet of high-rise residential space, Norfolk Mayor Kenny Alexander announced April 12 during his State of the City speech. The development would have a 518,000-square-foot high-rise residential tower — with possibly 400 to 600 units — offering rental and ownership options, plus 47,000 square feet of “luxury amenities” and active ground-floor leases. There would also be a 2-acre pedestrian-oriented promenade with more than 170,000 square feet of space. The new development would completely replace the existing mall, except for the parking garages. (VirginiaBusiness.com)

Shipbuilding delivered fast-attack submarine USS New Jersey to the Navy, officials announced April 26. The 7,800-ton submarine was built as part of a team agreement between Newport News Shipbuilding and General Dynamics Electric Boat in Connecticut. The New Jersey is the 11th Virginia-class submarine to be delivered by the Newport News shipyard to the Navy, the company said. The delivery comes as the companies face major shipbuilding delays. Blocks four and five of Virginia-class submarines, the Navy said in April, are delayed 24 to 36 months. (The Virginian-Pilot)

William & Mary hopes to be the first public university in Virginia to offer a bachelor’s degree in marine science. The school’s board of visitors in late April passed a resolution to create the new undergraduate program, citing increased demand in the field. The university still needs final approval from the state. William & Mary already has master’s and doctoral programs in marine science through its Virginia Institute of Marine Science at Gloucester Point, which also conducts research for state policymakers. The university is now working on a proposal to submit to the State Council of Higher Education for Virginia. Officials hope to launch the program in fall 2025. (WHRO)

PEOPLE

Sledge

Leonard Sledge is headed back to Hampton. The city’s former economic development director, who served in the role  2013-2018, was rehired to the same position, Hampton city government announced April 11. After leaving Hampton, Sledge worked in the Atlanta area as executive director of the Henry County Development Authority in Georgia. He then returned to Virginia in 2019, accepting a position as director of Richmond’s economic development department. Prior to 2013, Sledge was director of William & Mary’s economic development office. (The Virginian-Pilot)

 

Sander

Virginia Beach-based Chartway Credit Union has hired Sander Casino as its chief financial officer, the credit union announced May 1. Casino was most recently senior vice president of finance for Raleigh, North Carolina-based Local Government Federal Credit Union and its affiliate, Civic Credit Union. Before joining LGFCU in 2012 and Civic in 2018, Casino worked for about a decade with RBC Bank, where he was director of treasury. He has 26 years of experience in the financial sector. (VirginiaBusiness.com)

 

NORTHERN VIRGINIA

Arlington County-based Accenture Federal Services entered into an agreement to acquire Falls Church-based Cognosante in mid-April, the two companies announced. Terms were not disclosed, but Cognosante’s 1,500-plus employees will join AFS’ workforce of 14,000, according to the announcement. AFS is a subsidiary of Fortune Global 500 professional services company Accenture, and Cognosante provides IT support to federal, state and local government agencies with public health missions. AFS intends to launch a new portfolio with the acquisition. (VirginiaBusiness.com)

The launch of a Boeing spacecraft was postponed May 6 after concerns emerged with a component on the rocket set to propel it into space. Rocket company United Launch Alliance announced the delay about two hours before it expected to blast off the Starliner vehicle stacked on top of its booster. The Cape Canaveral, Florida, launch would have marked the first crewed flight for Starliner, which was set to carry two NASA astronauts. The problem involved an oxygen valve on ULA’s Atlas V rocket. The Starliner’s launch was delayed to May 21. (The Wall Street Journal)

Google is investing $1 billion to expand its Virginia data center campuses this year and is launching a $75 million Google.org AI Opportunity Fund, one of Google’s top executives and Gov. Glenn Youngkin announced April 26 at the tech giant’s Reston office. Google has two data centers in Loudoun County and one in Prince William County that opened in 2023. The AI fund will make grants to workforce development and education organizations, and Google also is launching a certificate course, AI Essentials, to teach people to “use AI effectively in day-to-day work.” (VirginiaBusiness.com)

McLean-based satellite services provider Intelsat made a deal to be acquired by SES, a Luxembourg-based competitor, for $3.1 billion in cash, the company announced in late April. The deal is expected to close in the second half of 2025. Intelsat CEO David Wajsgras will stay on until the close of the transaction but does not plan to remain at the combined company, a spokesman said. In March, SES opened its new U.S. technology and operations hub facility in Prince William County. The two corporations previously discussed a merger, but talks fell apart in June 2023. (VirginiaBusiness.com)

Metro‘s board of directors on April 25 passed a $4.8 billion capital and operations budget for fiscal year 2025, which avoids massive service cuts, although fares will increase by 12.5% beginning July 1. The Washington Metropolitan Area Transit Authority, which oversees the Metrorail and Metrobus systems, had warned of “catastrophic” cuts to service because of a $750 million shortfall forecast if Virginia, Washington, D.C., and Maryland state and regional officials didn’t increase funding. Virginia and Northern Virginia localities will chip in a total $467.3 million for Metro’s 2025 operating budget and $294.8 million for the capital budget. (VirginiaBusiness.com)

The United Arab Emirates paid a staggering $55 million for 18 acres overlooking the Potomac River in McLean, where the government plans to build three diplomatic residences and a nearly 11,500-square-foot “exercise structure.” The UAE acquired 1019, 1049 and 1079 Crest Lane in September 2022 in a single off-market transaction that was never recorded with the area’s listing service, but does appear in public records. The lots were bought from a trust tied to Richard L. Adams Jr., the internet pioneering founder of UUNet Technologies. There are no structures on the parcel other than perhaps an outbuilding. (Washington Business Journal)

ROANOKE/NEW RIVER VALLEY

Construction is progressing for a new 45,000-square-foot, $7.8 million industrial building the Amherst County Economic Development Authority is constructing within the Amelon Commerce Center. The goal is to complete the building, which will have flexible spaces to accommodate one to four light industrial businesses, this fall. The project is funded with a grant from the U.S. Department of Commerce Economic Development Administration, along with EDA matching funds, to provide operational space that will accelerate job growth and create additional economic opportunities. (Amherst New Era-Progress)

ESS Technologies, which specializes in packaging line design, equipment manufacturing and integration for the pharmaceutical, nutraceutical, cosmetic and consumer packaging goods industries, plans to invest  $1.6 million to increase capacity at a new facility in Montgomery County. A subsidiary of New York-based Pacteon Group, ESS Technologies will close operations in Pembroke and Blacksburg and consolidate them at the 40,000-square-foot new facility in the former Jeld-Wen building on Scattergood Drive in . The project is expected to create 27 jobs. (VirginiaBusiness.com)

A picture of a ruptured section of the Mountain Valley Pipeline circulating on social media in early May ignited fury from those who have protested the project for years. The damaged pipeline, which the photo showed being hauled down a roadway, was the end result of hydrotesting on a section of the mainline pipe on May 1 near Route 221 on Bent Mountain. The incident came as the pipeline’s developers asked the Federal Energy Regulatory Commission for an in-service date of June 1, a decision protesters continue to oppose. (Virginia Mercury)

Rocky Mount Town Council and the town economic development authority approved moving forward with the purchase of 369 Franklin St. during a joint meeting May 6. The property is currently the site of an Atlantic Union Bank branch. With the recent acquisition of American National Bank, Atlantic Union is consolidating its two locations in Rocky Mount and planned to sell the downtown building. Bank operations will move into the American National Bank location at 400 Old Franklin Turnpike in Rocky Mount. (The Roanoke Times)

The United Way of Central Virginia is launching an initiative to tackle workforce and child care issues in the greater Lynchburg area. Inspired by a successful project in Southwest Virginia, UWCV plans to establish the Childcare and Workforce Development Center. The center will provide high-quality child care along with hands-on learning experiences in various fields to prepare participants for future employment and leadership roles. UWCV plans to assemble a team to conduct surveys and create partner-ships with employers and educational institutions as well as secure a suitable facility to accommodate child care and workforce development needs. (The News & Advance)

Volvo Trucks North America in Dublin said it has begun shipping freight trucks that can burn hydrotreated vegetable oil, or HVO, with 20 to 25 gallons of the plant-based fuel in the new trucks’ tanks. The company said it expects to buy more than 1 million gallons of HVO from its supplier. The availability of internal combustion engines that run on renewable diesel coupled with the development of electric trucks now available and, someday, those with hydrogen fuel cells, will provide multiple ways for “decarbonizing transportation,” according to Volvo President Peter Voorhoeve. (The Roanoke Times)

SHENANDOAH VALLEY

Farm Credit of the Virginias, a cooperative lending institution serving Virginia, West Virginia and western Maryland, said it would return $32 million in May to its customer-owners through its annual patronage program, after the institution’s board of directors elected to return 81% of its net profits. The patronage program effectively lowers the cost of borrowing from Farm Credit of the Virginias. This year’s $32 million distribution equates to having an interest-free loan for more than three months and represents about 27% of the interest accrued on loans. (Daily News-Record)

The Front Royal-Warren County Economic Development Authority voted April 26 to approve a motion entering into a contract with Plein Smith, which has agreed to buy three undeveloped plots totaling 148 acres on Progress Drive for $6.26 million. The property sale helps the EDA pay down its multimillion-dollar debt incurred under a previous executive director, Jennifer McDonald, who was convicted of federal charges related to her unauthorized use of EDA funds to buy properties. Plein Smith had a 120-day due diligence period prior to closing on the property. (The Northern Virginia Daily)

A Shenandoah University alumnus and his wife pledged $20 million to the university, the largest individual donation in the history of the school. Wilbur and Clare Dove’s gift, announced in late April, will go toward the building of a performing and visual arts center on SU’s campus. Wilbur Dove earned his junior college degree in 1959 from what was then known as Shenandoah College and Conservatory. (VirginiaBusiness.com)

Warren County began looking for a new chief of economic development in early May. Joseph Petty, who was the county’s director of economic development and tourism at the time, confirmed he resigned effective May 17. Petty said he was leaving for a new position in the Warren County community, but would not elaborate. County Administrator Edwin Daley will serve as acting director until the position is filled. The county posted an advertisement for the position, which has a starting salary of $93,308, depending on qualifications and experience. (The Northern Virginia Daily)

A potential buyer of the 22-room Wayside Inn, which opened in 1797, proposed adding 15 recreational vehicle parking sites behind the establishment in a May 6 presentation to Middletown Town Council. The potential buyer, Blake Bullard, said he was looking at ways to diversify the business at 7783 Main St., which includes Larrick’s Tavern, the Wright House and The Red Hat speakeasy. Along with adding RV parking spots, Bullard wants to turn one room into an ice cream and crepe shop and implement longer hours. (The Winchester Star)

Forty complete applications were received for conditional permits to operate as the state’s sole licensed pharmaceutical processor of medical cannabis for a region including the Shenandoah Valley, as well as the cities of and Fredericksburg and the counties of Spotsylvania and Stafford, according to the Virginia Cannabis Control Authority. Applications were due April 30. Each company paid an $18,000 fee for the opportunity to be granted the sole medical marijuana license to serve the CCA’s health service area 1, which has been tied up in litigation for years. (VirginiaBusiness.com)

SOUTHERN VIRGINIA

In an 8-1 vote, Danville City Council May 7 approved changes to an agreement with Caesars Virginia that solidifies an investment nearly double what was originally planned in 2020 but dials back jobs and moves a planned stand-alone entertainment center into a multipurpose space. In 2020, the number of workers for Caesars Virginia was pegged at 1,300. The new agreement puts it in a range of 900 to 1,300. Caesars Virginia General Manager Chris Albrecht stressed the multipurpose space will still have 2,500 seats. Caesars is currently in talks to settle on the first acts that will perform in the first quarter of 2025. (Danville Register & Bee)

Construction at Commonwealth Crossing is expected to start back up this summer following Henry County supervisors’ decision to award a $24 million contract to construction firm Haymes Brothers. Located near the Virginia-North Carolina border, Commonwealth Crossing is one of several industrial parks in Henry County and is home to both Press Glass and Crown Holdings. According to the advertisement for bids, which was filed in February, work entails the construction of a 172-acre pad site along with supporting storm-water management, utility infrastructure and storm sewer. (Cardinal News)

Danville officials want to find out if there is enough demand for regional bus service. The city has sent out a request for proposals seeking bids from firms to develop a feasibility study to possibly implement commuter bus service from Danville to Lynchburg, Martinsville and Greensboro, North Carolina. If completed, the study would be attached to the city’s comprehensive plan that is being updated. The regional bus service, if found to be feasible, would start in summer or fall 2026. (Danville Register & Bee)

New College Institute Board Vice Chair Richard Hall was appointed in April 24 by the institute’s board of directors’ executive committee to be sole authority in mediation between NCI and its foundation. The committee met in closed session to discuss the mediation between NCI and the Martinsville Henry County Academic Foundation, formerly New College Foundation. In June, the NCI board committed $250,000 to support legal action against its foundation, which announced the intention to fund entities in Martinsville and Henry County outside of NCI, for which its money had been raised. (Martinsville Bulletin)

Across the Dan River from Danville’s River District, a largely revitalized part of the city, is North Danville, a business district with a rich history that lost investments and attention after the tobacco and textile industries left town. Leaders with the River District Association, which coordinates efforts to revitalize downtown Danville, plan to ask residents and property owners what they’d like to see in the district directly, instead of hiring a consultant. The RDA has been hosting community meetings to initiate conversations about this effort since February. (Cardinal News)

The West Piedmont Planning District Commission released in April its Comprehensive Housing Study for a region including the cities of Martinsville and Danville, as well as the counties of Henry, Patrick, Pittsylvania and Franklin. The study is intended in part to provide information to assist economic developers, local governments and housing developers in developing new housing options to meet the needs of the region and offer strategies to facilitate regional collaboration and coordination to address current housing challenges. The study revealed challenges related to affordable starter homes, aging in place and financial obstacles. The most significant finding was a shortage of workforce housing for low-wage workers and single-earner households. (Martinsville Bulletin)

SOUTHWEST VIRGINIA

Emory & Henry College is one of several higher education institutions selected to move forward with community lab school plans, according to an April 25 announcement from Gov. Glenn Youngkin. The college’s proposal is the Southwest Virginia Healthcare Excellence Academy Lab School, which will provide high school science- and health care-related curriculum and work-based learning experiences. The lab school, a collaboration between Emory & Henry and multiple regional partners, will be a career academy for students in grades 10 through 12 to create a pipeline for future health care professionals in Southwest Virginia. (Bristol Herald Courier)

Construction of the $25.5 million Regional Workforce and Child Development Hub —led by the nonprofit EO, formerly the program arm of the United Way of Southwest Virginia — in Abingdon is on schedule and about 85% complete, EO President and CEO Travis Staton said during a May 2 hard hat tour. Construction began July 2023 and is expected to be completed in July, with the center opening in August. The 87,000-square-foot facility, a former Kmart store, will house an early childhood development center operated by Ballad Health, STEM labs for teacher training and a shared services alliance for early child care and education providers. (Cardinal News)

Abingdon-based Food City and the Appalachian College of Pharmacy in Oakwood have teamed up to establish an online pharmacy technician program, aiming to ease the pharmacy tech shortage in the region, the organizations announced May 1 at the Southwest Virginia Higher Education Center. The online program will be offered twice a year, and students will be able to finish it within 26 weeks, including six weeks of experiential rotations. Students will then be eligible to take the Pharmacy Technician Certification Board exam. Food City is contributing to the initial costs and of the program, although the amount of funding was not provided, and will provide clinical experience rotations at its locations in five states. (Bristol Herald Courier)

Mike Quillen, the founder and former CEO and chairman of coal producer Alpha Natural Resources, has donated $1 million to the University of Virginia’s College at Wise. The college will name the David J. Prior Convocation Center’s court Quillen Court in recognition of the gift, according to its April 26 announcement. Quillen, who grew up in Gate City, previously served on U.Va. Wise’s board and is a member and former chairman of the GO Virginia Region 1 Council. (News release)

Teresa Tyson, president and CEO of The Health Wagon, a nonprofit free clinic serving one of the poorest and medically underserved areas in the state, earned $520,000 in 2022, a pay package that nearly doubled over the last two years and was 12 times that of the average income of the people the clinic serves. The 2022 compensation package number, found in the most recent tax documents available, includes base compensation and benefits from The Health Wagon and compensation from a closely affiliated nonprofit where Tyson also acts as president and CEO. Tyson’s 2022 compensation was a 53% increase from her 2021 compensation of nearly $340,000. (Cardinal News)

The Virginia Coalfield Economic Development Authority is granting Mountain Empire Community College up to nearly $186,100 for a new fiber optic installation program and a new heavy equipment operator II program, VCEDA announced May 1. MECC will use the funds for workforce development and training costs as well as equipment, supplies and tuition expenses for the two programs. Students who complete the fiber optic installation program will earn a nationally recognized network cable installer certification, and graduates of the heavy equipment operator II program will earn multiple credentials. (The Coalfield Progress)

McLean AI health care startup raises $111 million

A -based tech wants to provide more targeted medical treatments for people with cancer, heart disease and other common diseases.

, founded in 2020, is a precision medicine company on a mission to democratize personalized medicine and is doing it by developing -powered algorithms that can glean insights from health care data.

“We can’t wait for the next generation of high-fidelity data to deliver on the promise of precision medicine,” says Jeff Sherman. A Zephyr co-founder and chief officer, he’s also been the company’s interim CEO since February. “We believe patients need solutions today, so a core tenet of our company has [been] to operate it with a sense of urgency.”

Precision medicine is an approach that uses an individual’s genomic, environmental and lifestyle information to guide decisions related to medical management.

In March, the McLean-based company announced it had raised $111 million in a Series A funding round from about 30 investors, including Revolution , Eli Lilly & Co., Jeff Skoll and Epiq Capital Group.

The company’s co-founders include Grant Verstandig, an entrepreneur who has founded health care and defense companies, and Yisroel Brumer, an entrepreneur who was a past acting director of cost assessment and program evaluation for the Department of Defense.

“We’re bringing in new sources to produce, fine-tune and generate the next version of our algorithms for new, more nuanced precision medicine insights. So that’s on the data and buildout front,” Sherman says.

With 45 employees, Zephyr plans to grow its staff significantly over the second half of the year in science and engineering as well as building out a business development and commercial team.

In March 2022, Zephyr AI raised $18.5 million in seed funding, led by Lerner Group Investments and M-Cor Holdings. The company used it to develop core algorithms and put infrastructure in place to host a massive dataset as well as establish its core team.

Discussing his company’s success with investors, Sherman describes how Zephyr AI’s algorithms won them over during a demo.

“We were able to correctly identify how patients who are considered the same clinically actually respond differently to different drugs,” he says. “So, we’re able to demonstrate that in this real-world context, which I think is a pretty high bar for these kinds of companies.”  

Landmark Mall redevelopment in the works

Used as a vintage backdrop to film scenes for “Wonder Woman 1984” and anchored by bankrupt retailers like Sears, the Landmark Mall in was a relic.

Almost two decades ago, the City of Alexandria first began strategizing a redevelopment of the 1960s-era indoor mall, which closed in 2017, but plans for a new 18-hour community to take its place are now coming to fruition as construction is slated to begin this year.

“The community vision for the site is to really move away from the suburban interior mall surrounded by scenes of surface parking to a street grid layout that mimics lots of other parts of Alexandria in terms of size, scale and mixture of uses,” says Alexandria Partnership President and CEO Stephanie Landrum.

Rebranded as Alexandria, half of the 52-acre site is being developed by in partnership with Seritage Properties and Howard Hughes Holdings into a $1 billion project with as much as 290,000 square feet of and 1,962 housing units spread across almost 3 million square feet. The other half will be repurposed into a $2 billion, 1.1 million-square-foot hospital for anchor tenant Health System, with a 2028 opening planned.

Vertical construction on WestEnd’s first phase is expected to start later this year, although a specific date is not yet set, according to Jay Kelly, vice president of development at Foulger-Pratt. That phase comprises a 120,000-square-foot medical office, and three multifamily buildings totaling 1,117 units with about 217,000 square feet of retail.

Foulger-Pratt also plans to seek permitting approval for four more buildings at WestEnd between 2025 and 2027, including approximately 1,000 housing units, a hotel and retail space. Foulger-Pratt is still in talks with tenants for the commercial space at WestEnd, but agreements are in the works with two anchor retailers, a large-format gym and a “big box retailer,” Kelly says.

The project remains on schedule as of early May, he adds, although costs have risen. The city’s investment is at about $185 million as of May, and the entire project is expected to cost “north of $3.2 billion,” Kelly says.

“In a very tough economic time, we’re excited about momentum and growth in that area of the city,” he notes. “It’s going to be a challenge to get projects financed right now and we’re up for it.” 

StartVirginia: Heard Around Virginia

Bricklayer announced a pre-seed investment of $2.5 million to advance product development of its autonomous AI security analyst solution on May 2. The pre-seed round had participation from Sovereign’s Capital; Dreamit Ventures; ‘s Virginia Venture Partners fund; BlueWing Ventures; and Blu Ventures, as well as cybersecurity industry leaders. Bricklayer AI has built an autonomous security platform that combines multiple AI agents to form a team of AI specialists that collaborate with human peers on cybersecurity. (News release)

The Dominion Energy Innovation Center was awarded $150,000 from the in April through the Office of Transitions’ Energy Program for Innovation Clusters (EPIC) round 3. It will fund efforts to accelerate and support doing work around data centers, including an accelerator program for startups focused on improving data center energy usage. The 11-week Hyperscaled program will be modeled after DEIC’s Accelerate program and will run from Sept. 9 through Nov. 22. (News release)

senior services Naborforce is expanding again in North Carolina, this time to Greensboro, Winston-Salem, High Point and the greater Wilmington area. The company, led by CEO Paige Wilson, announced in February a return to the Raleigh and Charlotte areas. Naborforce expanded into those North Carolina cities in 2021, but later pulled back. Naborforce currently operates in nine other markets — Richmond; ; the Norfolk-Virginia Beach area; Northern Virginia; Washington, D.C.; Bethesda, Maryland; Atlanta and Savannah, Georgia; and Dallas and Fort Worth, Texas. (Richmond Inno)

A company working to derive cancer therapies from milk is the Roanoke-Blacksburg Technology Council‘s top entrepreneur of the year. The council selected The Tiny Cargo Co. and its leader, Spencer Marsh, for its Hart of the Entrepreneur Impact Award during its May 8 TechNite 2024 celebration. The council also added Virginia Western Community College’s president, Robert Sandel, to its hall of fame. Marsh and Tiny Cargo are corralling milk exosomes — which serve as cells’ cargo delivery system — to carry drugs to humans dealing with radiation’s effects in cancer treatment. The exosomes might also treat other diseases. The Hart award honors the late Roanoke tech businessman Bonz Hart. (Cardinal News)

Over the past year, the Washington, D.C., metro area outpaced most of the nation in new job creation tied to . That’s according to data compiled by UMD-LinkUp AI Maps — a joint effort from the University of Maryland’s Robert H. Smith School of Business and LinkUp, a global labor market tracking firm. From March 2023 to March 2024, 1.77% of all job postings in Washington, D.C., were tied directly to roles involving AI, the research found, compared with 1.46% for Virginia. When looking at the Washington, D.C., Maryland and Virginia region as a whole, the region accounted for 11.7% of the nation’s 14,023 new AI job postings in March. (DC Inno)

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Benevento

Joe Benevento will remain the Virginia Innovation Partnership Corp.‘s president and CEO permanently after serving in the role on an interim basis since September 2023, VIPC announced April 24. Benevento took over as interim CEO when Bob Stolle announced he was stepping down. A not-for-profit corporation created in 1985 by the General Assembly as an organization for the tech sector, VIPC provides strategic commercialization and funding support to Virginia-based tech startups. (VirginiaBusiness.com)