Page 273 – Virginia Business

Making bank

Suffolk-based TowneBank continued to lead Hampton Roads with the largest market share in fiscal 2022, 25.67%, according to the Federal Deposit Insurance Corp.’s June 30, 2022, report. However, that figure declined from fiscal 2021, when the bank held a 27.49% market share. Meanwhile, Charlotte, North Carolina-based Truist Bank is threatening to close in on that lead, jumping from 19.94% of market share in fiscal 2021 to 24.34% in fiscal 2022. Wells Fargo’s share dropped from 19.94% to 18.93% but still maintained its solid third place. In January, TowneBank closed on its $53 million acquisition of Windsor-based Farmers Bankshares, the parent company of Farmers Bank, creating a bank with about $17.5 billion in combined assets. Farmers reported 1.46% of market share, down from 1.59% from the previous period. Also of note, Newport News-based Langley Federal Credit Union’s assets increased from more than $4.8 billion in fiscal 2021 to more than $5.1 billion in fiscal 2022; the credit union also added more than 22,000 members.

Propelling forward

A massive building is rising on the northernmost point of Newport News Shipbuilding on the James River, physical evidence of the shipyard’s ambitious plan to build the Navy’s next generation of Virginia-class submarines as well as components for a dozen Columbia-class boats.

Not as visible, but just as important as the new Multi-Class Submarine Production Facility, is the regional effort to ensure that the shipbuilder, the state’s largest industrial employer and a division of Huntington Ingalls Industries, has the manpower it needs to meet the Navy’s aggressive timeline to build two Virginia-class boats annually, as well as manufacture six modular components for every Columbia-class submarine.

It’s a daunting task, given delays that occurred during the COVID-19 pandemic, when no Virginia-class submarines were delivered to the Navy. Record low unemployment across the state has contributed to the challenge to staff production lines.

“We’re laser-focused,” says Xavier Beale, Newport News Shipbuilding‘s vice president of human resources. “We’re committed to delivering on that backlog [of work] to our customers.”

With Newport News Shipbuilding responsible for building two submarines in the current block of the Virginia class and up to eight of the next iteration, while also constructing components for the Columbia class, as well as ongoing construction of two Gerald R. Ford-class aircraft carriers and supporting refurbishment of the carrier USS John C. Stennis, the company has ramped up recruitment and training efforts. It’s working with the Navy, the Hampton Roads Workforce Council, local high schools and community and state colleges to grow its workforce.

Newport News Shipbuilding plans to expand its workforce to 28,000 — up from 25,000 — during the next decade, but with a rash of retirements expected in coming years, as well as normal attrition, the shipyard believes it must hire about 21,000 workers in the next decade, shipyard spokesperson Todd Corillo says. That will include 19,000 skilled trades workers like welders, pipe fitters, electricians and machinists, plus a few thousand professionals, such as program managers, engineers, recruiters and human resources experts.

The goal is to train a new generation of shipyard workers, taking a “holistic” approach to ensure that the company doesn’t remove workers from one project to meet the needs of another, Beale says.

Pandemic delays

Shipbuilding and repair generated an estimated $6.4 billion economic impact in Hampton Roads in 2022, plus $4.3 billion in employee earnings and benefits, according to the Virginia Ship Repair Association, which represents more than 300 area businesses.

With the region’s unemployment rate at 3.1% and other planned regional projects underway, including Dominion Energy‘s $9.8 billion Coastal Virginia Offshore Wind project, the competition for recruiting and hiring workers is formidable.

Newport News Shipbuilding and General Dynamics‘ Connecticut-based Electric Boat have a construction-sharing agreement to build much of the Virginia class and have alternated construction of the submarines. As of June 2022, the two shipyards have delivered 21 of the boats to the Navy, with its next submarine, the USS Hyman G. Rickover, expected to be commissioned Oct. 14. That’s fewer than expected, with the pandemic and related workforce and supply chain issues delaying Newport News Shipbuilding’s construction and delivery of the future USS New Jersey and slowing the average delivery schedule to
1.2 boats annually during the past five years.

In June, the Government Accountability Office noted that the builders would be hard-pressed to meet the two-boat-a-year timeline, given a 25% staffing shortage in September 2022 and a new design for the next-generation Block V boats that could prolong construction time by more than two years.

But HII officials said in February that its current Virginia-class and Columbia-class production lines were fully staffed, with a plan to deliver seven of 10 Block IV boats before moving on to the new version, Block V, which will be 83 feet longer than its predecessor and more advanced.

To meet demand, Newport News Shipbuilding fast-tracked construction of its Multi-Class Submarine Production Facility, breaking ground in February, with expected completion in 2024. Two more submarine construction support facilities will be built nearby, with completion expected in 2025. The facilities are part of a nine-year, $1.9 billion infrastructure investment at the shipyard that will improve working conditions for those constructing submarine components.

“These covered facilities improve the work environment for our employees and also help us with construction as far as the technologies that we’re using within them,” Beale says.

‘Great careers’

With $11 million in grants from the Biden administration’s American Rescue Plan Act, along with $2.5 million in state grants, the Hampton Roads Workforce Council is spearheading a regional effort to hire recruiters to attract talent and establish skilled-trades training programs to increase the shipbuilding workforce, says Shawn Avery, the organization’s president and CEO. Among the programs set for development or expansion is Tidewater Community College’s skilled training program, which will grow to increase its class size and offerings, and Paul D. Camp Community College, which plans to build a Workforce Trades and Innovation Center in Suffolk to house the school’s maritime and skilled-trades training programs.

In May, 20 graduates from a welding program at Hampton’s New Horizons Regional Education Center, a public vocational and tech high school with nine locations throughout the state, accepted full-time jobs at Newport News Shipbuilding and another dozen signed on to attend The Apprentice School, the company’s vocational school.

The Workforce Council has helped identify specific needs for specialized tradespeople over the next five years and is working with local community colleges as well as the New Horizons program to ensure that training spots are available, Avery says.

Recruiters from the Workforce Council and the shipyard also are fanning out to under-resourced and underserved communities to talk about job opportunities at the shipyard. Beale returned to his high school in Surry County to talk with students and parents about the advantages of working for Newport News Shipbuilding, including hands-on training, better-than-average starting wages, on-site health care and signing and relocation bonuses.

“We talk about building ships here, but I really want to focus on the fact that we build more than great ships,” Beale says. “We build great careers. We build great citizens of our community here.”

Battlefield Virginia

It’s a nerve-wracking time this fall for a small group of campaign managers, with the balance of power in the General Assembly coming down to a handful of close political races.

In House District 97, freshman Republican Del. Karen Greenhalgh is defending her Virginia Beach-centered seat against Michael Feggans, a Democrat who grew up in the city and served in the Air Force.

It’s a key, front-line race in the high-stakes battle for control of Virginia’s state legislature, with all 140 seats in the Senate and House of Delegates up for election this fall. (Early voting began Sept. 22 for the Nov. 7 general election.) Following extensive redistricting and an exodus of retiring legislators, politicos say it’s a tough call how the elections will shake out, but the outcome could determine the Assembly’s balance of political power for years to come. Races for both chambers will be closely fought, with the future of abortion access, tax laws, budget priorities and labor issues all in question.

According to the Virginia Public Access Project, District 97 is one of the state’s most competitive races this cycle. The district went 2.2 points for Republicans in 2021 and 5.2 points for Democrats in 2022. As of the Aug. 31 campaign finance reporting deadline, Feggans has raised $890,000 and Greenhalgh $852,955.

Greenhalgh founded Heritage Woodworks, a cabinet-manufacturing company she later sold, and Cyber Tygr, a business that addresses cybersecurity issues in health care. She also works as a manager for local crisis pregnancy centers, clinics that provide care — but not abortion services — to pregnant women. Four of 17 bills on which Greenhalgh was chief sponsor or chief co-sponsor passed last session. She was chief sponsor of legislation that would have expanded the parameters of written consent by people seeking abortions; the bill was killed in committee by the Democratic-held Virginia State Senate.

She also supports a 15-week ban on abortions favored by Gov. Glenn Youngkin and other Republicans, while Feggans has voiced his support for current state law, which allows abortions through the second trimester and requires approval from three doctors before a third-trimester procedure.

The candidates themselves say they’re running for office for less-complicated reasons.

“I have people in my district who are just like me, who live paycheck to paycheck,” Greenhalgh says. “As far as it being a swing district, no matter which party you tend to vote for, we want the same things: We want safe neighborhoods. We want good schools for our kids. We want good jobs to support families. Those are the dreams that everyone in my district has for their families and their children. I look for ways to make sure we don’t lose those opportunities in Virginia.”

Meanwhile, Feggans, who worked in health services management and started a cybersecurity company, touts his Air Force service and local and political ties. He previously interned in U.S. Sen. Mark Warner’s Norfolk office and for the state secretary of technology and earned his master’s degree in cybersecurity from Norfolk State University.

“I took all the experiences invested in me for 20 years to give back to the community that nurtured me,” Feggans says. “We know we have a pathway to victory. Virginia Beach is a military town. Not only my service record in the military, but my service to the community reflects who Virginia Beach is. I’m a product of Virginia Beach Public Schools and a product of Virginia colleges. I know I have a lot to offer to the city that raised me.”

On the verge

However homespun the candidates sound, politicos acknowledge that Virginia’s blueish reputation and recent legislative gridlock could change radically next year if the GOP wins a few tight races. Should Republicans attain majorities in both chambers, they have a chance to reframe Virginia politics. Corporate tax cuts and restrictions on abortion would be almost certainties.

“Democrats have been on the surge, but there’s a real possibility Republicans hold the House and take the Senate,” says political analyst A.J. Nolte, an assistant professor at Regent University’s Robertson School of Government. “They might have a trifecta for the first time in the state in a long time. That’s potentially an earthquake. People have gotten used to the idea Virginia is a more blue state, but let’s not forget [that] Republicans held both chambers as recently as 2018. Unified Democratic control is more recent.”

After a Republican ticket led by Gov. Bob McDonnell swept the 2009 races, Democrats won every subsequent statewide office — including both U.S. senatorial seats, governor, lieutenant governor and attorney general — until the GOP slate led by Gov. Glenn Youngkin won in 2021.

For his part, Youngkin has been active in raising money for Republican candidates in the June primaries and November’s general elections. In a very real sense, his political reputation and potential presidential aspirations are also on the line this fall. (See related story.)

Republicans are being propelled by Youngkin, who endorsed 10 successful candidates in key Republican primaries, and his Spirit of Virginia political action committee, which raised $5.9 million as of June 30.

“The governor made it a priority to recruit and endorse candidates in those races to make sure we had the strongest possible candidates going into the election cycle,” says David Rexrode, an adviser to the governor and chairman of Youngkin’s PAC.

This election, Rexrode says, “The No. 1, No. 2 and No. 3 issues are — order varies by district — jobs and economy, education and public safety. That’s what our candidates are talking about because that’s what our voters care about.”

‘Gutter politics’

Meanwhile, Democrats largely are training their attacks on former President Donald Trump’s continuing influence in the Republican Party, and the U.S. Supreme Court’s 2022 Dobbs v. Jackson Women’s Health Organization ruling, which overturned the federal right to abortion, ceding authority to states.

“Frankly, the stakes couldn’t be higher for Virginians, especially Virginia women,” says Liam Watson, press secretary for the Democratic Party of Virginia. “We all know what’s at stake this year is abortion rights — not just for Virginians but across the South. Virginia is the last Southern state without a post-Dobbs abortion ban. The GOP in Virginia right now at all levels is pushing for a ban on abortion. We know what Republicans are about; it’s not a mystery what they’d do if we give them full control of our government here in Richmond.”

Speaking about abortion access, Democratic Virginia House Minority Leader Don Scott of Portsmouth says, “The only people trying to pretend it’s not on the ballot are MAGA Republicans.”

Nolte says the Democratic caucus has been slowly transforming for years, but with mass retirements and primaries, moderates have largely given way to younger, more progressive candidates. Meanwhile, he adds, Youngkin’s money and influence largely overcame national trends and defeated “MAGA, flame-throwing folks” in GOP primaries, such as Del. Marie March and Sen. Amanda Chase, who lost battles against more moderate Republican challengers.

Youngkin’s Virginia organization “is heavily focused on training, heavily focused on [building] disciplined, technically proficient campaigns,” Nolte says, but is “not as much focused on big-ticket messaging.”

In response to Youngkin’s PAC largesse, President Joe Biden in September directed the Democratic National Committee to add $1.2 million in contributions to Democrats running for Virginia legislative seats, bringing the DNC’s total to $1.5 million.

“When we had the majority, the biggest thing we did was make sure this economy works for everybody,” Scott says. “Virginia was named the No. 1 state for business in the country twice during that time. The governor now, who is supposed to be a business guy, hasn’t been able to accomplish that.”

Although many of the November candidates prefer to focus on local, less hot-button issues than abortion, it’s clear that the Virginia General Assembly’s more collegial, compromise-friendly tenor will change next year because of the number of retired legislators and lame-duck incumbents leaving office in January.

Lawmakers with a combined 649 years of legislative experience will not return to the General Assembly in 2024, according to former Republican Del. Chris Saxman, executive director of Virginia FREE, a nonpartisan, business-focused political organization.

The 2021 statewide redistricting placed a significant number of incumbents in the same district, leading to retirements and hard-bitten primaries. Many who made it through the June primaries now have a clear path to election in November due to the makeup of their districts, except in a handful of toss-up districts that will determine political control.

With both parties eager to motivate voters, competitive races are hinging largely on negative campaigning, says political analyst Stephen Farnsworth, a political science professor at the University of Mary Washington and a longtime observer of the legislature.

“The key thing is getting your base out,” Farnsworth says. “The demonization of the other side is a tried-and-true strategy for getting your voters to actually turn out, and the way that’s done is to create sort of funhouse mirror images of the opposing party.”

One notable example is the battleground 57th District race for an open seat in Henrico and Goochland counties. In September, a Republican operative informed The Washington Post that Democratic candidate Susanna Gibson, a nurse practitioner, had performed sex acts with her attorney husband for tips on a streaming porn website, leading to a slew of spicy national headlines. The operative has denied any connection with Gibson’s GOP opponent, David Owen, former co-owner of Goochland-based Boone Homes. Gibson has framed the incident as “gutter politics” and an attempt to intimidate, silence and humiliate her. Her attorney has argued that the leaked content violates the state’s revenge porn laws, however Gibson knowingly appeared live on a porn website that didn’t require a password for access.

Democratic state Del. Schuyler VanValkenburg is running for state Senate in Henrico against an incumbent who he says is “drastically out of touch” with constituents on abortion access. Photo courtesy of Del. Schuyler VanValkenburg

Negative campaigning only exacerbates a concurrent shift that mirrors national politics — a growing number of elected officials are less likely to cross party lines in support of bipartisan, moderate policies.

“When elections are conducted in this fashion, you find very few moderates elected and find very little opportunity for compromise,” Farnsworth says, “because, after all, you basically spent the general election making the argument the other side is in thrall to the things your voters hate. Increasingly, Virginia is looking a lot like Capitol Hill when it comes to partisan gridlock and hot-button issues.”

The new lines could end up favoring Democrats because the new districts skew the balance of power to suburbs, whether in Northern Virginia, Hampton Roads or the Richmond metro region, Farnsworth notes, so candidates on both sides are carefully tailoring their campaign messages to appeal to moderates.

Walking a fine line

Take Sen. Siobhan Dunnavant, a two-term Republican incumbent from western Henrico County. An OB/GYN, she was the only Republican to join Democrats in defeating Greenhalgh’s abortion information bill.

She won an open seat in 2015, then eked out a narrow re-election victory amid the Democratic wave of 2019. She’s now running in Senate District 16, which went for Democrats by 6 percentage points in 2021 and 10 percentage points in 2022, according to the Virginia Public Access Project.

Positioning herself as a common-sense moderate, incumbent Republican state Sen. Siobhan Dunnavant is running to keep her seat in a Henrico district she describes as “purple.” Photo courtesy Sen. Siobhan Dunnavant

Dunnavant, who pitches herself as a down-to-earth citizen legislator in pursuit of straightforward fixes to policy problems, is running against Democrat Del. Schuyler VanValkenburg, a Henrico County teacher who has served in the House since 2018. It’s a must-win for both parties as they seek control of the Democratic-held Senate.

“I am in one of those purple seats that is even more favorable for Democrats,” Dunnavant says, “and yet, I’ve won it before, and I’ll win it again because of the fact that I actually work hard on common-sense bills that make a difference in my constituents’ lives.”

Dunnavant has focused on bipartisan legislation she sponsored to standardize health care records and establish dual-enrollment credits among high schools, community colleges and public four-year universities. But she also generally backs Youngkin’s position to place restrictions on abortion after 15 weeks, with exceptions for rape, incest, life of the mother and severe birth defects, and to restrict the procedure altogether in the third trimester. VanValkenburg, who did not respond to interview requests, has said that Dunnavant’s position on abortion is “drastically out of touch.”

Through Aug. 31, Dunnavant raised $1.9 million, and VanValkenburg brought in $1.6 million.

On the Democratic side, Sen. Montgomery “Monty” Mason of Williamsburg has focused his campaign to retain the seat he’s held since 2017 on his business background, which includes his current job as a senior director for Visa and his previous stint as chairman of the Williamsburg Economic Development Authority board. Mason says he’s well-positioned to run in a seat that leaned 1.1 points toward Democrats in 2022, according to VPAP.

“I’m a good person to give a 50/50 district to,” Mason says. “I’m a moderate. I have a lot of veterans in my district. Of course, school safety and discussions about gun safety and how to protect children have been an enormous topic of conversation.”

Mason says a large contingent of military veterans in the district have expressed support for Republican-backed tax relief, while a significant number of voters are talking about safety and funding for schools.

As of Aug. 31, Mason raised $2 million, and his Republican challenger, Danny Diggs, raised $1.3 million.

Mason’s biggest funder so far this year is Dominion Energy, a polarizing campaign donor. Many Democrats have received money from the utility, but others have made a point of rejecting its donations. The latter have been supported by Clean Virginia, a PAC that supports candidates who spurn Dominion funding. In March, Clean Virginia said it expected to spend $2.5 million on Virginia elections this year.

Dominion has made significant contributions to Republicans and Democrats for years, but the Fortune 500 utility’s expansive influence has become a source of controversy, particularly among Democratic delegates in fierce primary battles. As of Aug. 31, Dominion had contributed $3.2 million to Democratic PACs and candidates in state races, and $2.6 million to Republicans, according to the Virginia Public Access Project.

With more legislators caught up in partisan or intraparty political battles than ever before, businesses and individuals who wish to stay in the good graces of whoever holds the power in Richmond face hard choices.

“In today’s Virginia politics, there will be a lot more lawmaking from a more decidedly liberal or decidedly conservative perspective,” Farnsworth says. “That means that elections have higher stakes in terms of the outcome, but they also are more risky for business. If you back the wrong party, that’s bad for you.”

RELATED STORY: Youngkin’s 2024 tightrope walk depends on Va. elections

Monogram Foods expands Henry County footprint

Responding to demand for more jerky and meat sticks, the Monogram Foods plant in Henry County has a $65 million expansion underway.

Memphis-based Monogram Foods’ decision to expand the operation also factored in existing infrastructure and production expertise, says Scott Mills, executive vice president and snacking division president, calling Martinsville “a thriving community with a healthy talent base.”

Ground was broken on the project near the end of 2022 and construction is expected to be mostly complete by March 2024, Mills says. The expansion, which will include adding equipment and about 150 employees, is expected to boost the plant’s potential capacity by around 40%, and upon completion, the plant will be the county’s second largest private employer.

In June, the company secured $8 million in financing from CEI Capital Management LLC (CCML), a subsidiary of community development financial institution Coastal Enterprises, which will assist with rising construction costs, according to CCML.

This is the sixth time the packaged snack food company has expanded the Henry plant since purchasing it in 2006. Previous expansions included additions for jerky production, warehousing and a biogas energy plant.

“The current complex is 54 acres with four operating buildings, a total of 287,000 square feet under roof,” Mills says. “Current expansion adds 13,000 square feet, for a total of 300,000 square feet under roof.”

Monogram Foods Martinsville employs approximately 600 people. That figure is estimated to reach 756 when it’s finished, Mills says. New positions will include additional line, warehouse, maintenance, quality assurance and janitorial workers, plus plant supervisors.

The plant has helped to diversify the industries in the Martinsville area, which saw its textile and furniture manufacturers move overseas in the 1990s, says Mark Heath, president and CEO of Martinsville Henry County Economic Development. It also supports the community by providing an annual grants program for local children’s organizations and sponsoring a local sports complex, says Henry County Administrator Dale Wagoner.

“It will most certainly have significant positive impacts on Martinsville, too,” says Glen Adams, Martinsville’s interim city manager. “The council is focused on finding avenues to spark housing development within the city, and this could be that spark. It will certainly increase other investors’ interests in our region, and we have several Martinsville-Henry County Industrial Park options primed and ready for additional expansion.”

October 2023 FOR THE RECORD

Central

Health system Bon Secours filed suit against insurer Anthem Health Plans of Virginia Aug. 30 in Henrico County Circuit Court, alleging Anthem owes Bon Secours $93 million in unpaid claims. The plaintiff, BSMH Virginia, alleges Anthem Health Plans of Virginia, doing business as Anthem Blue Cross and Blue Shield, failed to pay “in excess of $73 million” on claims older than 30 days, and that BSMH Virginia incurred more than $20 million in write-offs since 2020. Bon Secours and Anthem have also tussled over reimbursement rates for patients with the Medicaid Advantage plan. Anthem called allegations in the lawsuit an “effort to demand double-digit price increases from employers and individuals.” (VirginiaBusiness.com)

Richmond-based Fortune 500 utility Dominion Energy is selling its three natural gas distribution companies to Canadian pipeline and energy company Enbridge in a $14 billion deal announced Sept. 5. The companies — the East Ohio Gas Co., Public Service Co. of North Carolina and Utah-based Questar Gas, along with its sister company, Wexpro — account for about 78,000 miles of natural gas distribution, transmission, gathering and storage pipelines. Bob Blue, Dominion’s chair, president and CEO, said the transactions provide the company a “significant step” in its business review. On Sept. 1, Dominion completed the sale of its stake in Maryland’s Cove Point natural gas liquefaction facility to Berkshire Hathaway Energy for $3.5 billion. (VirginiaBusiness.com)

Richmond International Airport has twice shattered its monthly passenger record in 2023. The Capital Region Airport Commission on Aug. 30 announced that the airport counted 439,951 passengers for July, soaring past May’s record of 431,416 passengers. By comparison, the airport counted 386,931 passengers in July 2019. A year later, as travel plunged during the COVID-19 pandemic, that number dropped to 117,673. Three airlines — Breeze Airways, Delta Air Lines and Spirit Airlines — saw year-over-year traffic increases exceeding 25%. Breeze will also begin to offer new winter flights from Richmond to Fort Myers, Florida, beginning Nov. 15. (VirginiaBusiness.com)

The University of Richmond’s Robins School of Business received an anonymous $10 million gift from an alumnus to establish an endowed scholarship fund, the school reported Sept. 7. The alumnus studied accounting and finance. The gift is one of several that the university has received from alumni this year. In March, UR announced a $25 million donation from alumni and longtime donors Carole and Marcus Weinstein to fund a center focused on student learning at the school’s library. A month later, the couple donated $3 million to support Jewish life at UR. (VirginiaBusiness.com)

Virginia Commonwealth University received $271 million in donations last fiscal year, the most it has ever gotten in a 12-month span, the university announced in late August. VCU received $239 million in fiscal 2022 and $158 million in 2021. The donations in fiscal 2023 came from 23,000 different donors and went to the university and VCU Health. VCU said $117 million in donations will support students and programs; its Massey Cancer Center received the most of any school or unit, bringing in $88 million. (Richmond Times-Dispatch)

PEOPLE

Richmond architect, real estate developer, philanthropist and businessman H. Louis Salomonsky Jr. died Aug. 31 at age 84 after a battle with cancer. Salomonsky, along with business partner David White, developed hundreds of millions of dollars worth of projects in Richmond and in Washington, D.C., including renovations to the Appomattox Regional Governors School for the Arts and Technology and Maggie L. Walker Governor’s School for Government and International Studies. A 1962 graduate of the University of Virginia School of Architecture, Salomonsky also spent 18 months in prison two decades ago for his role in trying to bribe a Richmond City Council member. (Legacy.com obituary, Style Weekly)

Eastern

Hermes Abrasives USA, the U.S. subsidiary of Hamburg, Germany-based Hermes Abrasives, will invest $5.6 million in a Virginia Beach expansion, adding about 30 jobs, Gov. Glenn Youngkin announced Sept. 13. Hermes Abrasives manufactures coated and bonded abrasives and grinding tools. In September, the company transferred its narrow belt production line from Mexico to its Virginia Beach U.S. headquarters facility. It will add new manufacturing assembly lines and machinery to improve efficiency and output. Hermes established its Virginia Beach facility in 1981, and it’s the flagship facility for the company’s sandpaper product, primarily used in the automotive and woodworking industries. (VirginiaBusiness.com)

Reston-based Fortune 500 contractor Leidos will launch four Hypersonic Accelerator Suborbital Test Electron (HASTE) missions in 2024 and 2025 from Rocket Lab‘s Launch Complex 2 at the Mid-Atlantic Regional Spaceport, located at NASA‘s Wallops Flight Facility in Accomack County. Leidos selected Rocket Lab for hypersonic test launches under the Multi-Service Advanced Capability Hypersonics Test Bed (MACH-TB) contract, which the Naval Surface Warfare Center awarded to a Leidos subsidiary in October 2022. Rocket Lab launched its first HASTE rocket, derived from its Electron rocket, on June 17 for Leidos. (VirginiaBusiness.com)

Dillard’s, the last anchor store in MacArthur Center, closed Sept. 4, after the Norfolk city government terminated its lease. Norfolk City Manager Patrick Roberts has said there are no plans for any more long-term leases at the downtown mall, which the city acquired in mid-July, setting the stage for eventual redevelopment of the property. The mall has been declining for years, losing stores like Nordstrom, the Apple store and Barnes & Noble. The mall remains open, with small business owners saying they want more communication from the city about the property’s future. (The Virginian-Pilot)

A rural stretch of northern York County could soon be home to a large-scale industrial enterprise that will take advantage of the site’s proximity to Interstate 64 and a growing need for commercial storage space. Kansas City, Missouri-based NorthPoint Development has submitted plans to construct and operate York 64 Trade Center on 263 acres now owned by the Williamsburg Pottery. The proposal calls for the construction of 2.3 million square feet of space in five warehouse-style buildings. NorthPoint claims the development will create 613 construction jobs and upward of 764 jobs once the facility is in operation. NorthPoint expects construction on the $274 million project to begin in the second quarter of 2024. (The Virginian-Pilot)

PEOPLE

Don Barton “Bart” Frye Jr., founder and chairman of Frye Properties, died on Aug. 11 at age 79. The developer behind the East Beach neighborhood in Norfolk and a longtime TowneBank board member, Frye had a hand in several Hampton Roads projects, including the development of the Cavalier Residences that surrounded Gold Key | PHR’s renovated historic Cavalier Hotel complex. A native of Alexandria, Frye was a Randolph-Macon College graduate and earned a master’s degree from Syracuse University. Frye will be remembered as a “true renaissance man in every respect,” Virginia Beach developer Bruce Thompson of Gold Key | PHR said. (Inside Business)

William “Billy” Greer Jr., 81, former president of Virginia Wesleyan University, died Aug. 30 at his Asheville, North Carolina, home. Greer, who had previously been president of Brevard College and Andrew College, joined Virginia Wesleyan in 1992 and led the private liberal arts university in Virginia Beach for 23 years. During his tenure, Virginia Wesleyan grew significantly, seeing enrollment growth and the addition of campus facilities, including the Jane P. Batten Student Center and Brock Village. Greer also oversaw the establishment of the Birdsong Community Service Program, a volunteerism program that became Wesleyan Engaged. (News release)

NORTHERN

For the fourth year in a row, Arlington County will not give Amazon.com any economic incentives, the county confirmed Aug. 30, further delaying, and perhaps shrinking, its subsidies for the company’s East Coast HQ2. Local officials offered to pay the tech giant about $23 million in taxpayer dollars in 2018, part of an incentives package to win the campus that was negotiated with the expectation that Amazon would drive more people to stay nearby on business trips. That was expected to boost revenue for the county from a tax on hotel stays and short-term rentals, of which the company was promised a 15% cut of any increase. But hotel-tax revenue figures have not recovered to pre-pandemic levels. (The Washington Post)

Alexandria-based Burke & Herbert Financial Services, the $3.6 billion holding company of Virginia’s oldest continually operating bank, agreed to an all-stock merger with West Virginia’s Summit Financial Group, the two institutions announced Aug. 24. The deal, valued at roughly $371.5 million, will create a bank holding company with more than $8 billion in assets, $5.6 billion in gross loans, $6.7 billion in deposits, roughly 800 employees and more than 75 branches across Virginia, West Virginia, Maryland, Delaware and Kentucky. Founded in 1852, Burke & Herbert Bank & Trust started trading on the Nasdaq earlier this year. (Washington Business Journal, VirginiaBusiness.com)

Northern Virginia in the first half of 2023 remained the world’s largest market for data centers, but development is beginning to migrate south. Many of the industry’s major and secondary markets, including Northern Virginia, have reached a state of supply and demand imbalance where the current and near-term supply of available land for development is not capable of satisfying demand, according to Chicago-based real estate agency Jones Lang LaSalle (JLL). Northern Virginia’s land vacancy rate is down to less than 2%, resulting in a spike in pricing. In the first half of 2023, the region had the second largest amount of land under construction for data centers, followed by Northern California. (Inside NoVa)

Reston-based Leidos won two large contracts in August. The Pentagon announced on Aug. 31 that the Fortune 500 contractor received a 10-year, $7.9 billion contract from the Army. Under the firm-fixed-price contract, Leidos will provide hardware systems, system management solutions, components, customizable sustainment strategies, nonpersonal service and continuous technology upgrades. Also, on Aug. 15, the U.S. Department of Homeland Security awarded Leidos a potential $918 million contract to support and enhance the agency’s networks. The contract has a one-year base and six one-year options. The work is expected to enable continued evolution of the agency’s Homeland Secure Data Network and the department’s classified local area network. (VirginiaBusiness.com)

Centreville-based Fortune 1000 defense contractor Parsons has acquired Maryland-based contractor Sealing Technologies in a deal announced Aug. 23 and valued at $200 million. The acquisition expands Parsons’ customer bases across the Department of Defense’s intelligence community and enhances its capabilities. SealingTech’s nearly 150 employees will become part of Parsons’ defense and intelligence business unit. (VirginiaBusiness.com)

A massive solar project at Washington Dulles International Airport will have the ability to power 37,000 Virginia homes and will also send a message to travelers about the power of clean energy, officials said during the Aug. 22 ceremonial groundbreaking for the 835-acre Dulles Solar and Storage project. A partnership between Richmond-based Fortune 500 utility Dominion Energy and the Metropolitan Washington Airports Authority, the project is expected to generate 100 megawatts of solar energy and store up to 50 megawatts of power. According to Dominion, it will be the largest renewable energy project developed at a U.S. airport and is expected to generate 300 construction jobs and $200 million in economic activity for the state. (VirginiaBusiness.com)

SHENANDOAH VALLEY

Bridgewater College‘s School of Professional Studies will become the Rev. Wilfred E. and Dr. Joyce A. Nolen School of Business and Professional Studies, making it the college’s second endowed, named school. The college announced the Nolens’ donation on Aug. 31 but did not disclose the amount. The school will still house three departments — economics and business administration; health and human services; and teacher education — as well as the master of science in human resource management and master of science in athletic training programs. (Daily News-Record)

The Front Royal-Warren County Economic Development Authority voted on Aug. 25 to sell two properties for $5.7 million. The EDA will sell approximately 53.37 undeveloped acres in the Stephens Industrial Park to Executive Land Holdings IV, part of Equus, for more than $3.81 million and will sell about 41.11 acres at 1321 Happy Creek Road to Rappahannock HC, an NVR limited liability company, for $1.85 million. Both offers are greater than the values of the property as assessed by the county. The Stephens Industrial Park property is assessed at $2.14 million, and the Happy Creek Road property at over $1.12 million. (The Northern Virginia Daily)

James Madison University will invest more than $2 million to develop six academic institutes and centers — three existing and three new — over the next decade, the school announced Sept. 8. The university’s goal is to expand faculty and student research opportunities. The centers will receive funding and support toward becoming self-sustaining research centers by 2032. The initial round of funding will support two centers: the African, African American, and Diaspora Studies Center, which launched in 2021, and the Center for Innovation in Early Childhood Development, which launched July 1. (News release)

The owners of the site of a planned apartment complex on South Main Street in Woodstock have put the apartment project on hold and listed the land for sale. SVN Commercial Specialists listed 752 S. Main St., formerly home to Naked Bear RV Service and Repair, for almost $1.4 million as a “big box development opportunity.” Last year, developers 752 Main Street LLC received a special use permit for a 48-unit complex. On Sept. 5, Woodstock Town Council approved a one-year extension on the permit, which would allow buyers to move forward with the project. (The Northern Virginia Daily)

Winchester City Council voted to approve additional clearances for the former ZeroPak industrial facility’s conversion into a mixed-used affordable housing complex in its Aug. 22 meeting. John Willingham, who heads ZeroPak Development, the investment and development group that purchased the former apple processing and storage facility in March 2022 for $875,000, told the council the group hoped to start construction sometime in January. The project will create 122 apartments — 61 one-bedroom, 54 two-bedroom and seven three-bedroom units — in the 120-year-old building at 536-580 N. Cameron St. The proposal also includes two small retail spaces, a gym, two common spaces, three lounges, a mailroom and an interior parking garage. (The Winchester Star)

PEOPLE

In mid-August, Jeff Buettner accepted a permanent role as director of the Winchester Economic Development Department after serving as its interim director since March. Buettner became interim director following Rick Cobert‘s resignation after four months in the role. At the time, Buettner was chairman of the Winchester Economic Development Authority. As permanent director, Buettner named Vanessa Santiago, who had served as the department’s business and community development manager since July 2021, as deputy director. He also hired Sam Iden, who previously worked in the Winchester Circuit Court Clerk’s Office, as an economic development assistant. (The Winchester Star)

SOUTHERN

The Blue Ridge Rock Festival was canceled Sept. 9 at the Virginia International Raceway in Halifax County. Organizers said the four-day festival’s cancellation was caused by severe weather, including storms and hail, but according to a report by WDBJ, stagehands said they walked out on the festival because of poor working conditions, including not enough toilets for the 150 workers during two weeks of preparation. One anonymous stagehand said they presented a list of demands to management on Sept. 8, including more water stations, showers, food and safer structures within 24 hours, or they would strike. About 60,000 attendees were sent home early and, as of Sept. 11, had not received refunds. (WDBJ, WSLS)

With an anticipated surge in visitation to the city and surrounding area, Danville officials plan to hire a consultant to examine lodging demand in the Dan River Region. A request for proposals seeking bids will be sent out soon, Danville’s director of economic development and tourism, Corrie T. Bobe, said in early September. Whoever the city hires will evaluate existing lodging demand in Danville and Pittsylvania County, as well as expected demand as new tourism and business assets come online, she said. A previous hospitality study was completed in 2019, but it was limited to the River District downtown. (Danville Register & Bee)

A group of 40 plaintiffs, including retired Martinsville firefighters and police officers, filed a lawsuit in late August alleging that the City of Martinsville has reneged on an agreement regarding the payment of health insurance premiums for retired city employees. The complaint alleges that a handwritten agreement on the matter, dated Aug. 19, 2010, has not been honored. According to the lawsuit, a group of retirees planned to file suit in 2010 unless they received the health benefit “that was promised to them when they were hired,” and rather than going to trial, retired Virginia Supreme Court Justice Elizabeth Lacy was brought in as a mediator. A city ordinance adopted in July 2010 was the mediation’s result, and it was agreed that retirees hired before July 2002 would pay the same premium as active employees or receive a cash equivalent until they reached age 65 or opted out of the health benefit. (Martinsville Bulletin)

Poland-based Press Glass will spend more than $155 million to expand its operations in Henry County and add 335 jobs, marking the largest expansion in the county’s history, Gov. Glenn Youngkin announced in late August. Europe’s largest independent glass fabricator, Press Glass plans to construct a 360,000-square-foot addition at its existing facility in the Commonwealth Crossing Business Centre in Ridgeway, where it manufactures glass for the commercial construction industry. The company currently employs more than 300 workers at the site, which it opened in 2020. Press Glass was founded in 1991 and has 15 factories in Europe and the United States. (VirginiaBusiness.com)

The U.S. Department of Commerce awarded a $1.3 million grant to the SOVA Innovation Hub in South Boston in September to bolster small business development in Southern Virginia. The grant will support building renovations, including the addition of a digital makerspace, community gathering space and coworking offices. The federal grant will be matched with $492,389 in local funds and is expected to create or retain 130 jobs and generate $1.1 million in private investment. (News release)

SOUTHWEST

The rubber glove manufacturing facility that would bring 2,500 jobs to Wythe County, first announced in October 2021, is stalled. A $123 million grant from the U.S. Department of Defense funded the project’s first phase, which manufacturer Blue Star NBR completed in May. The company expected to receive a pandemic-related federal loan package for its second phase to finish building its facilities and start operations, but the U.S. International Development Finance Corp.’s loan-making authority expired before it finalized the financing package. The project cost is now $230 million. (Cardinal News)

Southwest Virginia reaped more than $8.7 million in gambling tax proceeds from the first year of play at the temporary Bristol Casino: Future Home of Hard Rock. On Aug. 24, the Regional Improvement Commission — created by the General Assembly to oversee Bristol Casino tax fund distributions — voted unanimously to evenly distribute the $8.7 million among its 12 county and two city members. In its first 12 months, the casino reported more than $160 million in adjusted gaming revenue, creating about $28 million in state gaming taxes. The Virginia Lottery has transferred the locality portion of the taxes to the commission’s bank account. (Bristol Herald Courier)

Contact-center company Foundever, formerly Sykes Enterprises, will create 500 permanent jobs in an expansion in Wise County. Sitel Group acquired Sykes in 2021 and rebranded it as Foundever. The company’s location at the Lonesome Pine Regional Business and Technology Park has about 500 regional employees a year and up to 1,000 during peak call times. Foundever plans to expand over the course of the year, and its peak times will still require increased employment, according to Lea Adkins, the company’s talent acquisition director. (The Coalfield Progress)

Two Wise County coal site projects received more than $4 million in grants in late August. The Lonesome Pine Regional Industrial Facilities Authority received a $2.5 million Virginia Department of Energy Abandoned Mine Land Economic Revitalization (AMLER) program grant for Project Thoroughbred, which will convert a former coal storage facility in Norton into a grain processing, storage and distribution terminal for grains grown by Appalachian farmers for use in the craft beverage market. The Wise County Industrial Development Authority received a $1.7 million AMLER grant to prepare sites near the town of Wise, like the Elam Farm Industrial Site, for light manufacturing. (Bristol Herald Courier)

The University of Virginia’s College at Wise had multiple campus upgrades underway as students returned for the fall semester. Several construction and renovation projects are scheduled for completion this year or the next. The Slemp Gaming Hub opened, with gaming PCs and multiple video game consoles available seven days a week. Little Cavaliers Early Learning Center was set to open this fall and provide up to 45 child care slots in a 3,608-square-foot facility. The former library’s conversion to a 28,530-square-foot nursing education facility is expected to be complete by the end of the year, with new classrooms, nursing skills labs and simulation rooms. (The Coalfield Progress)

PEOPLE

Jed Arnold, formerly a legislative aide to Republican Del. Jeff Campbell, ran unopposed and won an Aug. 29 special election for Campbell’s former seat in state House District 6, which includes Carroll and Wythe counties and part of Smyth County. Arnold received 87% of the vote, according to the Virginia Department of Elections’ unofficial results, and about 13% of the votes were write-ins. Arnold is running unopposed in the Nov. 7 legislative election for the newly formed 46th House District, which includes Grayson, Smyth and Wythe counties and part of Pulaski County. (Cardinal News)

ROANOKE/NEW RIVER VALLEY

Appalachian Power reached an agreement with state regulators in late August on a proposed rate increase that, if approved, will cost the average residential customer another $16 a month. That’s a decrease from before, when Appalachian was asking the State Corporation Commission to approve a base rate increase that would have added another $25 to residential power bills that have been steadily climbing. A decision from the SCC is not expected until November. But the deal, struck on the eve of the start of an evidentiary hearing, will likely shorten what could have been a lengthy dispute between the company, state regulators and about a half dozen other interested parties. (The Roanoke Times)

A foundation established by the estate of Richmond philanthropist Bill Goodwin’s late son, Hunter, made a $50 million commitment to support cancer and neuroscience research at the Fralin Biomedical Research Institute at VTC, Virginia Tech announced in September. The gift is one of three record-setting $50 million donations the university has received, including the 2018 donation from the Horace G. Fralin Charitable Trust and Heywood and Cynthia Fralin that renamed the Fralin institute. The other was Boeing’s $50 million commitment for Virginia Tech’s Innovation Campus, announced in 2021. The Red Gates Foundation was established in 2020 by the estate of Hunter Goodwin, who died of cancer at age 51 in January 2020. His parents started a national cancer research foundation, Break Through Cancer, with a $250 million donation in 2021. (VirginiaBusiness.com)

Mountain Valley Pipeline is suing more than 40 people and two organizations that it says are unlawfully interfering with its efforts to complete a natural gas pipeline amid growing unrest. Filed in early September in Montgomery County Circuit Court, the lawsuit asks a judge to issue an injunction that would prevent opponents from entering construction areas, where they have temporarily delayed work at least a dozen times since July 5. The company also seeks to prohibit the organizing of such protest events and any “soliciting or accepting” of donations that might be used to fund them. Named as defendants are Appalachians Against Pipelines, an organization that often promotes the protests on social media, and Rising Tide North America, which Mountain Valley says is raising money for the events.
(The Roanoke Times)

In a battle between digital maps, Virginia Tech bested the Federal Communications Commission to show the commonwealth’s broadband needs. Gov. Glenn Youngkin announced plans in September to deploy networks in places where the state lacks broadband internet. With those plans in place, the state can access a $1.48 billion federal allocation. That total would have been a quarter-billion dollars less without Virginia Tech’s Center for Geospatial Information Technology, according to the university. Two staff members handled the project, coordinating with the Virginia Department of Housing and Community Development’s Office of Broadband. (Cardinal News)

The Virginia Tech College of Engineering will move out of old Randolph Hall ahead of demolition to make way for a new, $292 million Mitchell Hall, administrators said in late August. The new building will be 285,500 square feet, more than 100,000 square feet larger than Randolph Hall, which was finished in 1959. Currently the project is in the working drawing phase, said Tish Long, a member of the Virginia Tech board of visitors, with construction set to start in late 2023 or early 2024 and “substantial completion planned for the summer of 2027.” Mitchell Hall is named for 1958 alum Norwood Mitchell and his wife, Wendy. The couple made a $35 million donation to Tech in 2021.
(The Roanoke Times)

Under new management

Washington Commanders fans did everything but sing “Ding-Dong! The Witch Is Dead” during the team’s Sept. 10 season opening game.

It felt like a new day as the NFL team came away with a win against the Arizona Cardinals. FedEx Field was sold out, and the stands were packed with local fans instead of supporters of the opposing team, an irritating trend over the past decade-plus.

The reason, of course, was the team’s new ownership as of July. The Commanders’ unpopular former owner, Daniel Snyder, offloaded the team for a record-breaking $6.05 billion to a group led by Chevy Chase, Maryland, native Josh Harris, who assembled 20 investors, including NBA Hall of Famer Magic Johnson. The billionaire investor is now the Ashburn-based NFL team’s primary owner — a relief to many beleaguered fans.

The sale came after a long, ignominious history of mediocre-to-worse win-loss records, a revolving door of quarterbacks and coaches, alleged interference and retaliation by Snyder, and — most seriously — two NFL investigations of alleged sexual harassment against female employees and findings of a “toxic work culture” in a U.S. House of Representatives report in 2022.

Last year, amid congressional scrutiny of Snyder’s team, Northern Virginia state legislators rescinded their offer of economic incentives to bring a future Commanders football stadium to the commonwealth. (See related story.) Another team owner said it may be time for Snyder to sell, breaking the traditional code of silence among NFL owners.

And even those problems didn’t touch the sheer magnitude of local distaste for Snyder, who bought the Super Bowl-winning team in 1999 and saw its attendance decline from perennially sold-out games to the lowest numbers in the NFL, as well as a dearth of post-season wins.

Exorbitant parking fees, 9/11 commemorative Redskins baseball caps sold at a profit, Snyder’s lawsuits against 125 fans who tried to back out of season ticket purchases and much more all added to the sense of insult.

It’s no wonder fans at the Sept. 10 game chanted “Thank you!” to majority owner Harris, who co-founded the private equity firm Apollo Global Management and whose net worth is estimated between $6.9 billion and $8.6 billion.

In addition to the Commanders, Harris is principal owner of the Philadelphia 76ers NBA team and the NHL’s New Jersey Devils, as well as a general partner of the Crystal Palace English football club. His home base is in Miami, where he and his wife, Marjorie, live with the two youngest of their five children. They also spend some of the year in New York City.

Last year, Harris’ investment group put in a bid for the Denver Broncos NFL team and lost out to a group led by Walmart heir Rob Walton. But in an interview with Virginia Business on the Friday preceding the start of the 2023 NFL season, Harris says he considers the failed bid a blessing, because he was able to purchase the Commanders, his favorite pro football team while he was growing up.

Virginia Business: When did you first seriously consider buying the Commanders?

Josh Harris: Really, it was a sales process. Dan himself hired a banker and there was a process. We got a call, and that was probably in the fall of last year. Certainly, we’re well known in the sports community, obviously, so generally speaking, the intermediaries, the banks — Bank of America in this case — knew we were out there, contacted our people, and then eventually I spoke with the Snyder family.

VB: It sounds like you have pretty solid ideas of what role you’re meant to take as owner, and where to let coaches and players handle things themselves. How did you learn those lessons?

Harris: Obviously, I’ve owned the Philadelphia 76ers since 2011 and a number of other sports franchises — the [New Jersey] Devils since 2013, Crystal Palace since 2015.

It’s been experiential learning, on-the-job training, if you will, but also, it’s just common sense. But in sports, because fans [are] so focused on all the details and because everyone is such a great fan of the sport, sometimes owners who are fans come in and they want to make a lot of decisions. But it’s like every other career.

Ultimately, the years of learning that a coach might have dealing with 53 men, 53 individuals, and how to make a system work — if [owners] don’t defer to that [experience], that would probably not be common sense. Sometimes people don’t.

VB: With sports, people do have strong emotions and yell at the TV screen to change quarterbacks or strategies. Is that a temptation you have to fight?

Harris: Yes. Listen, I’ll go the other way. Just because I’m only a fan that’s recently become an owner of the Washington Commanders, it doesn’t mean that you’re not entitled to have opinions, it doesn’t mean that you might not see something that a coach might not.

I’ve sat on the floor for the last 11 years for NBA basketball. I have an opinion on how we should play, and I have opinions on some things that I see, but generally, I will voice those in a constructive way at the right time quietly.

You’re allowed to be involved, and you should be involved. If you see something you don’t like and you’re the owner of a franchise, it’s almost on you to bring it up and say, “What about this? What about that?” At the same time, I think you have to recognize that other people might have more experience than you do. It’s finding that balance, and everyone is different.

VB: A congressional report said the Commanders had a “toxic work culture” under Snyder’s leadership. What are your responsibilities for improving and maintaining the team’s culture as its new owner?

Harris: The thing about sports franchises — unlike companies generally — is that they’re public assets; they’re public trusts. I want to create a franchise that my kids are proud of, and the city is proud of and I’m proud of. I think everything, ultimately, is my responsibility. I spend many sleepless nights thinking about making sure that everything is going to go right. I think that extends to how people are treated inside the organization, how employees are treated, how they act with one another, how fans are treated, how all the stakeholders, players and coaches are treated. It’s a village, so what I have to do is set the tone and then hold people accountable.

VB: How did the process of buying the Commanders differ from bidding for the Denver Broncos?

Harris: It was different personally for me. I think I was blessed in some sense to not buy the Broncos.

Obviously, this is where I grew up, and it was emotional for me, and I’ll never forget when I walked into FedEx Field and I saw the pictures. I have an investment team that I’ve been involved with [for] a lot of this stuff. You have a whole team that shows up with you [when] we were given a couple days to do due diligence.

We came into the stadium and my team saw me marveling at the pictures of the legends and Super Bowl trophies, and they were like, “This is different. You’re acting differently.” I’m not an emotional person as an investor. I try to be quite clinical about it, but clearly, I was emotional about it, and that was very different for me personally.

VB: Speaking of stadiums, what do you consider important attributes for a new stadium?

Harris: I start with football and I branch out. When an opposing team walks into our stadium, I want them to not want to be there. When I was talking to [former Dallas Cowboys quarterback] Troy Aikman on “Monday Night Football,” he’s a guy who didn’t like to play [at] RFK. On the other hand, I want our team to feel excited. The noise level, how you set it up, the crowd engagement and focus, all that’s good.

Then you get to fan experience, which is a really broad concept, but accessibility really matters, whether it’s being on … Metro, whether it’s a close drive, ingress and egress parking, all that stuff. We want people to get in, get out, have a great time. The Washington DMV fan base does extend deep into Virginia; it extends into Maryland.

Not everyone is going to have the same accessibility, but certainly having it on a rail system would be a massive plus. Having it close to most of the fans, [being] able to get in and out [of] major highway systems, all that actually really matters, all those logistics.

Then it’s about economic development, and how you help a community economically. I mean, we built a practice facility [for the 76ers] in Camden, [New Jersey], which is a tough city. We run Prudential Center in Newark. We’re building a center in Philly in an area that needs help, and … we’re using trade. If we are allowed to go forward in Philly [with a new arena], we’re going to use contractors from diverse backgrounds, which is probably slightly different than what’s happened in the past.

All that stuff plays into it.

VB: Under the team’s previous ownership, two possible stadium locations were designated in Loudoun and Prince William counties. What’s the status on those?

Harris: We’re literally just starting at the beginning. We’re at the very beginning of thinking about what we want, versus the sites.

VB: You grew up in the area. What was your relationship to the team?

Harris: My relationship with the team was really deep. There’s a picture of me that someone dredged up wearing a [1970s Washington quarterback] Billy Kilmer uniform when I was like 10 years old. I was a huge fan, and I never in my wildest dreams thought I might own the Commanders. I went to RFK once or twice a season. It was a 25-year waiting list to get [season] tickets.

I have two really early memories as a child. One is walking down East Capitol Street and then walking into RFK and hearing … all the noise and looking up at Jack Kent Cooke’s owner’s box, and my dad saying, “That’s the owner,” and me saying, “Wow.”

VB: The team’s name has changed twice in the last few years. What’s your timeline for thinking about the name?

Harris: We’re really focused right now, honestly, on limiting distraction. We’re focused on getting the stadium ready, and I’m doing tons of meetings everywhere in the city to engage with everyone. I’m not really thinking about [the name] right now.

VB: You have 20 people in your investment group, including Magic Johnson. What do they bring to the table?

Harris: Look, the reality of an NFL franchise is that it’s expensive, and so it’s hard to participate unless you’ve had tremendous success. We have people that have D.C. backgrounds that are super-engaged charitably in the community. We have a lot of diversity in the group. Then we have amazing business builders, real estate people. Honestly, Eric Schmidt is in our group. Can you imagine I [brought in] one of the founders of Google? Obviously, Mitch [Rales] built Danaher, a storied business. When I left Apollo and I was considering what to do, I was trying to find people that I could talk to, and I sought out Mitch because I said, “Wow, this guy built Danaher, [a] $200 billion company,” and by the way, D.C.’s biggest company. As far as professional athletes, [there’s] Magic Johnson.

VB: Is Magic on your text chain? What’s he like?

Harris: Yes. Magic, I would say, he’s incredibly charismatic, an amazing motivator. I’m motivated when I speak to him. He’s won five NBA titles with the Lakers, and then five other titles with other sports, and he’s built an incredible business. He’s an amazing speaker. He can relate to a businessman, and then he can relate to the players, and he can relate to a 10-year-old at a boys’ club.

He has an amazing way of connecting with people, and he’s a humble person. I think for him to be humble, he’s a great example for me because he’s achieved so much in his life and he’s someone that I want to emulate. … By the way, the other thing I like about Magic, and we share this, is that he’s a religious person. He believes that there’s a greater force. For all of us who’ve achieved some luck and been blessed in our life, I think personally it really helps me, and it’s something I really relate to.

VB: Let’s look ahead five years. What will need to be in place for you to consider this purchase a success?

Harris: I think that we’re going to need to have improved the fan experience to a great extent. That would mean improving the existing FedEx Field and [making] substantial progress towards a new stadium. In five years, I would hope that we would be a perennial playoff team. I’d say in five years I would want to see the arena selling out on a consistent basis and the team being supported, and I want us to be more deeply engaged in the community.

VB: The Sixers had a big rebuilding period under your ownership. Do you think the Commanders could benefit from a similar rebuilding that was high-risk, high-reward?

Harris: I think they’re totally different. Obviously, when you engage in a rebuild as we did in Philly, we wanted to be a championship-contending team. We rebuilt the team, and it worked. We haven’t won an NBA championship, obviously, but we’re perennial contenders every year right now.

I think the Commanders’ situation is totally different than that. Look, I think that we have a great young team. We don’t have an aged team. I’d say that so far I really like what I see in the coaching staff. I think [Head Coach] Ron [Rivera] is a good man. We have real areas of strength on the team. I think the answers to what we do and what we think will become apparent as this season plays out.

VB: I saw a picture recently of you and Virginia Gov. Glenn Youngkin at the Commanders’ Ashburn facility. He was previously co-CEO of the Carlyle Group, so how long have you known each other?

Harris: I’ve known him for many years. We were in the same business. We competed, but … I always had great respect for Glenn. He was always just a really nice person and a decent human being. Even though we were competitors, we were kind of friendly competitors.

VB: Does that have any bearing on where you would decide to put the stadium?

Harris: Look, I have to actually think about the city. Having a relationship of trust always matters in every situation, but, obviously, we’re going to do what’s right for the DMV. There is a “V” in DMV.

RELATED STORY: Virginia’s back in game to score Commanders stadium

Under construction

Atlantic Park

Virginia Beach

Proposed in 2017 by music icon Pharrell Williams and Venture Realty Group, Atlantic Park finally got underway in March with a groundbreaking on the first phase of the $350 million surf park project. Phase one will involve 10.95 acres, including 309 multifamily units, 10,000 square feet of office space, a 70,000-square-foot indoor/outdoor entertainment venue and a 2.67-acre indoor lagoon — the first Wavegarden Cove facility in the nation — and two public parking decks. Various components of the project are estimated to open between December 2024 and March 2025, developers expect. The second phase will consist of additional attractions, retail, public parking and residential space. A conceptual plan has been in place for Phase Two for quite some time, and the development firm is in the process of finalizing the plan.

Photo courtesy Virginia Department of Transportation

Hampton Roads Bridge-Tunnel

Hampton and Norfolk

Work continues on the $3.9 billion transportation project — Virginia’s largest ever — in all areas along the nearly 10-mile corridor of Interstate 64. As of July, the project was more than 50% complete. In early March, construction crews completed the first traffic shift onto the temporary I-64 East south trestle, and contracting group Hampton Roads Connector Partners continues to work on the three other marine trestles that connect both Norfolk and Hampton to the islands. Mary, the project’s tunnel boring machine, has been digging two new tunnels between Norfolk and Hampton at a rate of 50 feet a day since April. The twin tunnels will take more than two years to complete, and the machine must be reconstructed when it reaches the North Island, before it can turn around and dig the second tunnel back to the South Island.

Crews have finished construction of the Slurry Treatment Plant, dubbed Katherine for late NASA Langley Research Center mathematician Katherine Johnson. The four-story treatment plant, which processes and removes dirt and other tunneling byproducts, is the largest of its kind in North America. Mining operations began in late April and, to date, have mined more than 500 feet and installed 91 rings for the tunnel construction. The contract completion date for the HRBT project is November 2025 — although work is behind schedule by more than a year. Nonetheless, the Virginia Department of Transportation continues to work closely with HRCP to mitigate delays and reach project milestones.

Fairwinds Landing

Norfolk

On June 29, developers held a groundbreaking event for Dominion Energy’s two-building Monitoring and Coordination Center (MCC). It joins Newport News Shipbuilding as the two largest tenants to date in Fairwinds Landing, a maritime operations and logistics center supporting Hampton Roads’ offshore wind, defense and transportation industries. Set to occupy the 122-acre Lambert’s Point Docks, the $100 million project is expected to be home for other major tenants, officials say. Fairwinds Landing is beginning to see an increase in vessels berthing at its facility that are supporting Dominion’s
$9.8 billion Coastal Virginia Offshore Wind farm, under development 27 miles off the Virginia Beach coast. A limited liability corporation, Fairwinds Landing is a partnership between The Miller Group, Balicore Construction and Fairlead Integrated. Developers continue to predict the project will be largely completed in three to five years, with the MCC ready by 2025 and accommodating 200 construction and engineering jobs.

Photo courtesy Stihl Inc.Photo courtesy Stihl Inc.

Stihl Inc. headquarters

Virginia Beach

Last year, Stihl Inc., the U.S. subsidiary of the German chainsaw and outdoor power equipment manufacturer, announced a $49 million expansion, adding 26,000 square feet to its 60,000-square-foot headquarters and manufacturing facility in Virginia Beach. The company plans to increase its capacity to manufacture chainsaw guide bars by a third, creating 15 jobs.
The site for the guide-bar facility expansion was cleared in October 2022, and the building structure was completed in February. The construction is currently in the commissioning phase, with all machines expected to be installed by the end of this year. Production is estimated to begin in early 2024, the company said in June. Stihl is also expanding its battery manufacturing operations, with plans set to be announced later this year.

Fairbanks Morse Defense

Chesapeake

Fairbanks Morse Defense, which builds, maintains and services naval power and propulsion systems, opened its newest training and service center campus in Chesapeake on May 17. FMD moved 40 jobs from its former service center in Norfolk to Chesapeake and also added
10 jobs. The $13 million, 45,000-square-foot facility offers fully integrated service and technology solutions to the Navy, Military Sealift Command and Coast Guard fleets. The move to Chesapeake came after the Navy informed FMD it was interested in increasing the number of field service technicians and having the training facility close by. All equipment can now be serviced in the 25,000-square-foot service area in Chesapeake, and training across all products sold by FMD can be completed at the new facility’s 20,000-square-foot training space, instead of in Wisconsin, where it was previously conducted.

Virginia’s back in game to score Commanders stadium

The $6.05 billion sale in July of the Washington Commanders by embattled former owner Dan Snyder did more than set a world record for the highest price paid for a professional sports team.

The deal also reignited Virginia’s bid to persuade the Ashburn-based NFL team to move its stadium here. Lawmakers up for re-election in November and representing districts under previous consideration for a new stadium — including Woodbridge and Dumfries in Prince William County as well as Sterling in Loudoun County — see a fresh opportunity to work with the Commanders’ new ownership group led by Maryland-raised billionaire and Philadelphia 76ers owner Josh Harris (see related Q&A with Harris).

“With a new ownership team coming in, I think we all should go back to the drawing board,” Democratic Del. Luke Torian of Prince William County told the Virginia Mercury in May.

Torian and Democratic Sen. Jeremy McPike represent districts in Prince William that could be targeted for a stadium. McPike is “ecstatic” about the new owners; he’s less enthusiastic about using state money to attract the team. “There’s not a lot of appetite for taxpayer incentives, even if it’s incremental financing,” McPike says.

In September, the General Assembly passed a budget allocating $250,000 to evaluate economic incentives to attract sports teams to the state in the best interest of taxpayers.

In Loudoun, Democratic Dels. Dave Reid and Suhas Subramanyam, who is running for the state Senate in the 32nd District, say a stadium could diversify the county’s economy, which is best known for data centers; they also want certainty that any deal would be good for taxpayers.

“What would be the number of new jobs that would be created? What type of additional tax revenue would that generate?” asks Reid, a member of the House Appropriations Committee. “And then also, what are going to be the performance-based incentives to make sure that we’re protecting the taxpayer’s dollars?”

While Virginia faces renewed competition for the stadium from Maryland — the Commanders currently play in Landover — and Washington, D.C., Gov. Glenn Youngkin has expressed willingness to play ball so long as the deal is a collaborative effort between lawmakers and a good deal for taxpayers, he said in late July to Fox 5 in D.C.

“I think Virginia is the best place to live, work and raise a family,” Youngkin said, “and it should be the best place to have a professional football team.”

October 2023 Top Five

The top five most-read daily news stories on VirginiaBusiness.com from Aug. 16 to Sept. 14, 2023, were led by the news that Bon Secours filed suit against Anthem in Henrico County Circuit Court.

1 | Bon Secours sues Anthem for $93 million

The health system alleges that insurer Anthem Health Plans of Virginia owes unpaid claims. (Aug. 28)

2 | Richmond casino reintroduced with new name

Urban One unveiled a new moniker for the $562 million resort casino city voters will reconsider in a fall referendum: Richmond Grand Resort & Casino. (Aug. 31)

3 | Dominion Energy announces $14 billion sale of three natural gas companies

The Fortune 500 utility said it will sell three natural gas distribution companies to Canadian pipeline and energy company Enbridge. (Sept. 5)

4 | Henrico County, Markel|Eagle acquire land for GreenCity

Henrico County and an affiliate of Markel|Eagle Partners agreed to purchase the 110-acre Scott Farm property for $35.1 million; the site will become part of the $2.3 billion GreenCity development. (Aug. 17)

5 | Va. Lottery’s Gee tapped as next secretary of commonwealth

Gov. Glenn Youngkin appointed Virginia Lottery Executive Director Kelly Gee as secretary of the commonwealth after Kay Coles James stepped down to become a senior adviser to Youngkin’s Spirit of Virginia political action committee. (Aug. 29)

Wallops Island lifts off with Rocket Lab addition

Rocket Lab USA is boosting the visibility of one of the United States’ lesser-known spaceports on Virginia’s Eastern Shore.

Since January, the California-based aerospace company has launched three successful missions from its Launch Complex 2 at Virginia’s Mid-Atlantic Regional Spaceport. Rocket Lab selected the spaceport, located within NASA‘s Wallops Flight Facility in Accomack County, as the site of its first U.S. launch site in 2018.

Leaders of the U.S. Space Force have taken note of Rocket Lab’s relationship with the spaceport, according to Ted Mercer, CEO and executive director of the Virginia Commercial Space Flight Authority, also known as Virginia Space, the state agency that owns and operates the spaceport.

“When you listen to speeches or presentations that they give about the space ports, they are now including the Mid-Atlantic Regional Spaceport in their discussions [about] guaranteeing assured access to space for the nation,” Mercer says. “So that’s huge.”

It’s a win-win arrangement, according to Mercer. By using Virginia’s spaceport, Rocket Lab avoids the headache of operating out of NASA’s busier Kennedy Space Center in Florida. “If you want to launch a rocket out of Cape Canaveral, you’re going to have to kind of wait in line,” Mercer says. “We don’t have that issue.”

On Jan. 24, Rocket Lab launched its Electron rocket from Wallops Island — marking the first Electron mission to take off from U.S. soil. Previously, the Electron launched from Rocket Lab’s Launch Complex 1 in New Zealand, from which it launched a mission for the Space Force. For its January mission, Rocket Lab deployed satellites for Herndon-based HawkEye 360, a commercial provider of satellite-based radio frequency data and analytics.

Less than two months later, on March 16, Rocket Lab launched its second Electron mission from Wallops Island. That time, the rocket sent two satellites into orbit for Capella Space, a California-based space tech company.

Rocket Lab made headlines from Wallops again on June 17 when the company successfully launched its first suborbital testbed launch vehicle, dubbed HASTE (Hypersonic Accelerator Suborbital Test Electron), from the Virginia pad. The customer for that launch was Reston-based Leidos Holdings, which was completing a large-scale test for its Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) program. The MACH-TB is designed to increase the speed of testing for all commercially available hypersonic systems. According to Morgan Bailey, senior director of communications at Rocket Lab, Leidos is “looking to build on that cadence in the months and years to come.”

Rocket Lab is poised to make more news from Wallops Island. In February 2022, Gov. Glenn Youngkin announced the company had selected the area as the launch site and rocket production complex for its new Neutron rocket, a 130-foot, partially reusable launch vehicle. By comparison, the Electron is 59 feet tall. Another difference: the Electron is always an unmanned rocket.

“Electron does not fly humans, and neither will Neutron at first, but we are developing Neutron to be capable of … [manned missions] in the future,” Bailey says.

While the Electron allows Rocket Lab to deploy satellites “in the single digits” to orbit, the Neutron will be designed to serve “an explosion” of commercial customers who want to put numerous satellites into space at once, according to Bailey.

“We’re entering that era of mega-constellations, where you’re talking hundreds and thousands of satellites that need to be launched to specific orbits and quite quickly and quite cost effectively,”
she says.

Currently, she says, there aren’t enough launch vehicles available to quickly serve these customers, particularly since Russia invaded Ukraine. Since then, Russia has largely halted its launches of commercial satellites. According to a 2022 Reuters report, Russia has accounted for about 16% of the global launch market since 2017.

“We’re really bringing to market a reliable, cost-effective vehicle that’s going to open up the access to space,” Bailey says.

In April 2022, Rocket Lab broke ground on the rocket production complex where the company will manufacture the Neutron on 28 acres adjacent to the Wallops Island Flight Facility. However, “you won’t see much visible progress on that for a few more months because that’s sort of later in the development,” says Bailey, who declined to say how much the complex will cost to build.

Construction is further along on the Neutron’s launch pad, which will be located at the southern end of Wallops Island. Rocket Lab plans to launch the Neutron from there in 2024. The company doesn’t need the production complex to be completed before the launch pad because testing for the rocket will occur at other Rocket Lab sites, Bailey says. The Neutron’s upper stage is being developed with help from the Space Force, which awarded the company a $24.35 million contract in 2021.

Once Rocket Lab is in full production and launch mode on the Neutron, the company plans to hire up to 250 engineers, technicians and support staff to support the Neutron at Wallops Island. The company currently has about 20 to 30 employees there, according to Bailey. “The key function for that team at the moment is still Electron launch operations,” she says.

Local officials are making plans to accommodate the influx of new workers.

In May 2022, the Accomack County Board of Supervisors approved a rezoning and a conditional use permit for Maryland-based CCG Note to build a 140-unit townhome and commercial mixed-use development on property surrounded by the Captain’s Cove community in Greenbackville. That project, referred to as Hastings/Mariner, is stalled by a civil lawsuit filed in November 2022 by Captain’s Cove residents against CCG Note — which bought out the neighborhood’s original developer — as well as its property owners’ association. The plaintiffs contend that CCG Note’s plans to use a private street to access the proposed development and its sewer system in support of the new development violate the neighborhood’s covenants.

Accomack County Administrator Mike Mason says that if that project does not go forward, the county will continue efforts to attract more housing by removing “barriers to development” and by partnering with towns that “have a desire to extend or enhance town services.”

“We will be responsive to developers and builders interested in expanding housing stock by providing them with clear guidance and a ‘path to yes’ through county permitting,” Mason says.

Officials are also spending federal and state funds to prepare for the influx of workers. That includes $600,000 from the American Rescue Plan Act that the county spent at the beginning of the year to add 126 child care openings at new and existing facilities and a $15.6 million Virginia Department of Housing and Community Development grant awarded to Accomack and Northampton Counties to extend broadband service to currently unserved areas.

“The majority of funds in Accomack that came from that grant are being directed in the northeast portion of the county, particularly some communities out there that did not have access at all, and some of these communities are some of the ones that are closest to Wallops Island,” Mason says.

Earlier estimates that the Neutron facility will generate about $2 million in direct annual property tax revenue to the county have not changed, according to Mason. “We haven’t really started to see that,” he adds, “because the construction hasn’t yet commenced.”

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Virginia’s back in game to score Commanders stadium

October 2023 Top Five

1 | Bon Secours sues Anthem for $93 million

2 | Richmond casino reintroduced with new name

3 | Dominion Energy announces $14 billion sale of three natural gas companies

4 | Henrico County, Markel|Eagle acquire land for GreenCity

5 | Va. Lottery’s Gee tapped as next secretary of commonwealth

Wallops Island lifts off with Rocket Lab addition