Major cruise lines are launching expansions expected to propel Hampton Roads forward as a tourism destination, with new stops in Norfolk and Yorktown.
In Norfolk, Carnival more than doubled the number of cruises departing to the Bahamas, Bermuda, the Caribbean and New England this year with a schedule that now runs from May to October. The 4,000-person Carnival Magic cruise ship will generate more than 200,000 visits this year by embarking and debarking passengers who spend an average of $125 while in port, says Stephen E. Kirkland, executive director of Nauticus, which operates the Norfolk terminal.
“This is the cruise line’s largest Norfolk commitment to date,” he says, and it’s about to get even bigger. After a pause in Carnival cruises out of Norfolk next year while improvements are made to the terminal, the cruise line plans to operate year-round from the port in 2025.
“This is a game changer for our community and positions Norfolk as a major destination for visitors from across the country,” Kirkland says. “We will see visitors flying in and out of town for these sailings, further expanding the economic benefits these cruises provide to Norfolk and the Hampton Roads region.”
Sarah Hughes, vice president of marketing and communications for VisitNorfolk, says the Carnival expansion will undoubtedly bring in new visitors. “Our goal is to provide them such a positive experience that they come back to explore Norfolk on their own, creating repeat visitation,” she says.
Even while the terminal is being upgraded, Norfolk will continue to be a stop for sightseeing visits by other cruise lines, including Princess, Viking, American and Holland America, Kirkland says.
In June 2024, Princess plans to take a handful of cruises up the York River to stop in Yorktown for the first time so passengers can explore Virginia’s Historic Triangle, which includes Williamsburg and Jamestown. The pilot program entails bringing three of its 2,200-passenger Island Princess cruises and two of its 3,080-passenger Emerald Princess cruises to Yorktown.
Kristi Olsen-Hayes, director of York County Economic & Tourism Development, says the county is working closely with Princess Cruises to prepare for the visits. “We are excited about the opportunity for a proposed port-of-call tender-pier facility in Yorktown,” she says. “Our community is rooted in history, and it is an important part of our visitor mix. We are honored that Princess Cruises sees the value in bringing their customers to Yorktown.”
The Grammy-winning musician with a worldwide following has invested in the area repeatedly over the past several years and is poised to continue. Even as his career took a new path this year when he was tapped as the new men’s creative director for French luxury brand Louis Vuitton, Williams pulled in some hometown vibes for his Paris Fashion Week debut. Fellow Virginian Pusha T joined him on the catwalk and the Hampton Roads-based Voices of Fire gospel choir — a creation of Williams and his uncle, a Norfolk pastor — performed at at the glitzy event, which was attended by music superstars Beyoncé, Jay-Z and Rihanna, as well as NBA All-Star LeBron James.
Probably the biggest way the Virginia Beach native has worked his star power in Hampton Roads, though, is his Something in the Water music festival, which returned to the Oceanfront in April for the first time since its 2019 debut. The three-day festival is a multimillion-dollar revenue producer that creates a bump in airline traffic, fills up hotels and puts the region on display as a national tourist destination. In 2023, hotels brought in about $11.5 million, up $1.1 million from 2019.
This year’s event encountered weather- related hiccups — including a tornado warning that canceled concerts on the festival’s final day — prompting Williams to suggest on social media that he might change the date going forward.
“That’s all in discussion,” says Donna MacMillan-Whitaker, founder and managing partner of Venture Realty Group, which is developing multiple Hampton Roads projects with Williams, including the $335 million Atlantic Park surf park at Virginia Beach’s Oceanfront and the proposed Wellness Circle redevelopment of the former Military Circle mall in Norfolk.
Renaissance man
Clearly, Williams is not interested only in music. His investments range from high-dollar commercial projects to smaller community efforts aimed at helping low-income residents and promoting diversity. His pilot Yellowhab school, designed for underserved elementary students, opened in Norfolk in 2021, and he hosted the inaugural Mighty Dream Forum in Norfolk last year to promote minority entrepreneurship. The business forum attracted C-suite speakers from Google and TikTok.
Still, the splashy developments that change the landscape of the region are the most widely touted results of Williams’ impact. In March, construction workers broke ground for Atlantic Park, an 11-acre surf park development near Virginia Beach’s Oceanfront. It will also include a 70,000-square-foot entertainment venue, apartments, offices and retail shops. The first phase is expected to be complete in summer 2025.
“It took six years to get underway,” MacMillan-Whitaker says, and project leaders are hoping that some segments may open by the end of next year. The first phase includes a 2.67-acre lagoon that’s expected to draw year-round visitors to its machine-made waves.
In Norfolk, Williams is backing the proposed redevelopment of the former Military Circle Mall into Wellness Circle, an arena-centered mixed-use project. The $1 billion-plus plan calls for an arena with at least 15,000 seats, 1 million square feet of office space, a 200-room hotel and more than 1,000 multifamily housing units, including some for low-income residents.
While the City of Norfolk hasn’t formally named Wellness Circle as the top choice among the three finalists who proposed redevelopment projects at Military Circle, Williams has said he’s been told that his project was chosen. MacMillan-Whitaker, whose Venture Realty Group is co-developing Wellness Circle, says negotiations on details of the deal have lagged on the city’s end. “They haven’t really focused on us,” she says, although the city began demolishing the shopping center earlier this year.
In June, Mia Byrd, a Norfolk Economic Development spokesperson, said that plans for the site’s next chapter have not been determined. “Nothing is currently set with any of the proposals. We haven’t made any announcements.”
Natural ties
Regardless of whether Wellness Circle becomes a reality, Williams’ continued engagement with his hometown and the surrounding region is a big plus, says Taylor Adams, who left his post as director of economic development for Virginia Beach in June to take a similar job in Reno, Nevada.
Adams is a big believer that economic development events and projects need to have natural ties to the area, or they don’t necessarily add value. “There’s a reason that Austin has been such a hot market and that Nashville has been such a hot market. … Communities that get lifestyle right are the ones that have seen successes. I think there’s an authenticity that’s required to effectively deliver that.”
Williams has that authenticity, Adams says. “He grew up here; he started his music business here.” And up until this past summer, when Williams moved to Paris, where Louis Vuitton’s corporate headquarters is located, he maintained a home in Virginia Beach in addition to his former primary residence in Miami.
In November 2022, when Williams announced that Something in the Water was returning to the beach after being staged in Washington, D.C., in 2021 — in part a reaction to the city’s handling of his cousin’s killing by local police — the superstar said simply, “I need to come back home.”
Something in the Water, Adams says, “is of Virginia Beach and for Virginia Beach. … It’s authentically us, like the Neptune Festival.”
Virginia Beach shouldn’t be copying what other cities are doing to attract visitors, Adams adds. “If you spend all your time keeping up with the Joneses, you can never become them.”
Instead, it’s important to focus on what makes the area special and make the most of it. That’s why Williams’ understanding of Hampton Roads is so important, he says. “You couldn’t ask for a better person to work with … in celebrating the best things Virginia Beach has to offer.” ν
Speaking to an audience of more than 20,000 human resources professionals gathered in Las Vegas for his organization’s June 14 annual conference and expo, Society for Human Resource Management President and CEO Johnny C. Taylor Jr. said that HR execs are ready to meet the array of challenges created by the “new abnormal” of post-pandemic workplaces, where “everything is new again.”
In this new abnormal, some adverse effects of COVID have lingered. The job market may be strong, but angst about the economy is widespread. The line between work and personal lives that got blurred during lockdown still has not become clear, even as return-to-office mandates have people scrambling to adjust. And some workers are now worried about the potential of losing their jobs to artificial intelligence.
Add to these concerns the existential burden of living in a society in which political, social and racial tensions seem to ratchet up daily, and the result is a workforce experiencing high levels of depression and burnout.
In an April poll about mental health conducted by the American Psychological Association, 77% of 2,515 employed adults polled nationwide reported experiencing job-related stress within the previous month. About a quarter of those respondents blamed that stress on being subjected to a toxic workplace, which, the APA says, can include dealing with excessive demands, micromanagement, job insecurity, discrimination and poor communication. Women and people with disabilities tend to suffer most from such working environments, the APA found.
Good mental health is not just a cause for private concern anymore, but a matter of dollars and common sense for businesses, because burnt-out and unhappy workers are generally less productive and can be harmful to workplace culture.
Symptoms of burnout can include coming in late and leaving early, insomnia and substance abuse, says Ben Madden, board president of Northern Virginia SHRM and owner of Arlington-based human resources consultancy HR Action. “Quiet quitting” and “slow working” are terms that have entered our vocabulary for a reason, he adds.
HR professionals need to be experts on people, as well as business and culture, Taylor said in his June speech. “HR must be that person everyone can trust and that person who can predict how humans — a company’s workers — will respond to action and behaviors,” he said. “We need to understand our people at the deepest levels.”
Last year, the World Health Organization reported that 12 billion working days are lost to depression globally every year, and it estimates that the annual cost in reduced productivity to the U.S. economy is $1 trillion. Those statistics highlight one of the major points of Taylor’s June speech — that human capital is the most valuable form of business capital and that companies that expect to be successful must take better care of their employees’ mental health.
Most businesses still have some room for improvement on that front, however. The APA survey found that just 43% of employees surveyed said they have access to on-the-job insurance that covers mental health and substance abuse disorders. An equal number of those surveyed said that they fear repercussions if they were honest with their employers about their mental state.
But “that narrative is shifting,” says Scott Snell, the Frank M. Sands Sr. professor of business administration at the University of Virginia and co-author of co-author of the textbook “Managing Human Resources.”“Most organizations,” he says, “are at least aware of the issue and are acting on it in good ways.”
The largest companies with the most resources are leading the way. Alex Alonso, chief knowledge officer for SHRM, says that businesses with more than 5,000 employees have begun offering “a boatload more” of materials and resources to aid employees with challenges in their personal lives, as well as more flexible scheduling and “more talk space.”
Three of the commonwealth’s largest employers — Sentara Health, General Dynamics Information Technology, and Booz Allen Hamilton — are exemplars of this change.
Healing the healers
Norfolk-based health system Sentara Health has 31,000 employees working at more than 100 sites across Virginia and North Carolina. Although every sector of the economy was impacted in some fashion by the pandemic, front-line health care workers took the brunt. Yet, says Becky Sawyer, Sentara’s executive vice president and chief people officer, in some ways, employee stress was easier to manage then than it is now.
During the COVID pandemic, health care personnel were in crisis mode and were able to stay resilient knowing that the burdens placed on them by the crisis eventually would lift. However, they’ve since transitioned “from crisis burnout to a state of uncertainty,” Sawyer says, and “the new way of the world is creating moral distress.” Sentara’s response has been to roll out many more resources to support its workers’ mental health.
Another order of business has been to make its worksites safer. Workers in public-facing sectors, ranging from retail and health care to transportation, have experienced unprecedented levels of hostility in recent years, with almost a quarter of those surveyed by the APA reporting they were verbally abused in the prior month. The U.S. Surgeon General lists protection from harm as the first essential to workplace mental health, and safety is a huge issue in the health care field, Sawyer says. (Workplace violence is four times more likely to occur in a health care setting than in other industries, according to a 2021 study by the Cleveland Clinic.)
To keep employees safer, Sentara has begun issuing badges to visitors and has installed weapons detection systems. Employees are being trained in how to defuse potentially violent situations, and each of Sentara’s divisions now has its own workplace violence prevention committee.
The health care system has extended its free resources for emotional and mental health to 40,000 medical providers and has added on-site mental health counselors to supplement its in-house employee assistance programs. Such counselors remain a rarity among businesses. The APA found that just 12% of survey respondents said their workplace has anyone on site with mental health training.
“General anxiety is higher than what we’ve seen in the past,” says Daphne Gillie, Booz Allen Hamilton’s global wellbeing program manager. Photo by Will Schermerhorn
Two other elements needed for a healthy workforce are employees who feel that they matter and that their work matters, according to the surgeon general. As “a mission-oriented organization that every colleague aligns around,” Sentara’s approach to decision-making is deliberately inclusive, Sawyer says. Sentara wants its employees to know that their voices are heard and that their opinions are considered. Yearly employee surveys, which have an 85% participation rate, she says, help leaders get a grip on what issues matter most to their workers.
“Burnout was a real and present concern long before COVID,” Sawyer says, “but we can take more meaningful approaches now.”
Defending defense workers
Like health care workers, national defense workers at two of Virginia’s largest government contractors, Reston-based General Dynamics Information Technology and McLean-based Booz Allen Hamilton, faced intensely stressful situations during the pandemic. Many had to continue to work on-site at clients’ facilities despite general lockdowns, while the work itself intensified. “COVID brought out some of our adversaries,” says GDIT President Amy Gilliland.
The security clearances that many employees of both contractors must have to perform their jobs also piled on the stress. These clearances became more difficult and time-consuming to obtain during COVID, and, although Gilliland says that only 1% of clearances are revoked or denied because of mental health issues, the belief persists in the industry that any perception of mental vulnerability will result in losing clearance. That widespread, if mistaken, notion continues to make people reluctant to seek help even when they find themselves spiraling downward.
Last year, GDIT got a rough wake-up call about the threats to its employees’ mental health when it logged a 3% increase in suicides among its 30,000-plus workforce. That grim statistic led to “real discussions about the elephant in the room,” Gilliland says.
These days, GDIT wants its employees to know that “it’s OK not to be OK,” and that the company is there to help. In 2021, Gilliland launched the “How are you, really?” campaign within GDIT to destigmatize mental health issues and encourage employees in need to seek help. GDIT supports an employee’s need to step back or even take a leave of absence, and it has instituted or beefed up a slew of mental health support programs, including:
A partnership with a health care insurer to provide alcohol-abuse treatment;
A website to provide information and links to mental health support networks and care providers;
A concierge tool, Wellthy, to assist employees in navigating family care options;
Talkspace, a program allowing employees to chat with counselors and therapists by text, phone or video;
And a speaker program to call attention to mental health challenges such as post-traumatic stress syndrome, a big concern for a company that employs many veterans. “It caught on like wildfire,” Gilliland says.
GDIT also is training its managers “to lean in with empathy,” she says. “We’ve learned that we can be more flexible and that rigidity is not necessary. Take care of the people, and they can take care of the mission. Our national security imperative is to deliver well employees.”
Like GDIT, Booz Allen Hamilton also has 30,000-plus employees and its mission-driven work binds employees together, but that dedication can also lead to burnout, says Daphne Gillie, Booz Allen’s global wellbeing program manager. “General anxiety,” she says, “is higher than what we’ve seen in the past.”
Booz Allen’s response has been to take a holistic approach to the problem through its employee assistance program, a confidential resource that employees can access for free. The program offers coaching to manage stress and counseling services for employees and their family members. Diversity, equity and inclusion ambassadors also have been deployed in each of Booz Allen’s business sectors, along with wellness champions who are conversant on available wellness benefits and can help educate and influence their colleagues to tap into available resources.
Booz Allen is dedicated to creating “a culture of caring,” Gillie says, but “bridging the gap between the knowing and the doing takes work.”
As companies such as Sentara, GDIT and Booz Allen are taking the mental health of their employees much more seriously than ever before, smaller companies also have begun to follow suit. A 2022 SHRM survey of 3,129 human resources professionals found that 78% said their organizations — some with as few as 10 employees — offered mental health resources or planned to do so within the next year.
These employers, whatever their size, are coming to recognize that the new abnormal is here to stay and that with it comes a new bottom line. Mental health services are no longer just a nice-to-have benefit, but essential.
U.Va.’s Snell sums it up, saying, “Taking care of employees is a business issue.”
Aravenda, a Fairfax e-commerce software company targeting consignment shops and resellers, landed a spot in the latest women founders cohort of the Google for Startups Accelerator. Aravenda’s software helps consignment and resale shops track inventory and manage payouts to people who sell there. Customers can use the software to build websites and manage inventory across several locations. The company has eight employees and is looking to boost its corporate and enterprise businesses by allowing companies to resell electronics and office supplies they no longer use. Aravenda is currently raising a $3 million seed round that it hopes to close this year. (DC Inno)
George Mason University is launching a training program for aspiring entrepreneurs from refugee and immigrant backgrounds. The Refugee and Immigrant Success through Entrepreneurship, or RISE, is helped by a $1.5 million donation from Sumeet Shrivastava, the former president and CEO of Fairfax-based government technology services firm Array Information Technology. The 11-month program will include six weeks of entrepreneurship training, 12 weeks of mentoring and then 13 weeks of consulting classes with business students at George Mason to help the participants hone plans. Mason’s Center for Innovation and Entrepreneurship is seeking philanthropic partners and grants to support future cohorts. (DC Inno)
Roanoke-based Regional Accelerator and Mentoring Program(RAMP) has named five companies for its fall cohort: Fairfax-based Oak Bioinformatics, which develops genetics analysis software; Performance Medical Technologies, a clinical data science and product development company from Charlottesville; Roanoke’s LymphaVibe, which provides wearable solutions for at-home patients with lymphedema; Dublin’s Good Food Groups, which aims to make foods that contain an acid that helps people maintain weight, build muscle and lose fat; and Pulaski-based MacroVation, which designs sustainable biomaterials. During the 12-week program, participants receive $20,000 in nonequity funding, mentoring and free office space. A “Demo Day” is set for Dec. 6. (News release)
The Shenandoah Valley Entrepreneurship Summit, organized by the Shenandoah Community Capital Fund, is scheduled for Oct. 23 and 24 at Liberty Street Mercantile in Harrisonburg. Sessions for entrepreneurs include topics such as finding the right co-founder, digital marketing and accessing the right type of capital. Tickets are on sale through Oct. 7 at sccfva.org and are $155 for general admission and $80 for students. Additionally, SCCF has announced its new Capacitor Incubator Program. Participation is free. Applications opened in September and will be accepted on a rolling basis. CIP expects to accept 24 entrepreneurs to the incubator during the next two years. (News release, VirginiaBusiness.com)
Unstuck Labs, a tech accelerator and mobile app developer that works with early-stage startups, founders and innovation programs, has opened its first permanent home in Rosslyn City Center in Arlington. The company, which offers a 12-week startup program, previously operated out of coworking spaces and moved into its new, 4,000-square-foot space during the summer. It also offers a weekly workshop, Unstuck Tuesdays, for curious entrepreneurs. Visit meetup.com/unstucklabs to sign up. (News release)
Richmond moving startup WayForth has filed for Chapter 11 bankruptcy protection. WayForth focuses on moving services for seniors. As part of its restructuring, WayForth’s offices in eight states and Virginia were to close Aug. 18. The company’s bankruptcy filing estimates it has between 100 and 199 creditors and between $1 million and $10 million in liabilities. Its assets are also within the range of $1 million to $10 million. Founded in 2016, the company raised a $32 million capital round just two years ago. WayForth filed a notice with the Virginia Employment Commission Aug. 11 indicating it planned to lay off 78 employees. (Richmond Inno, VirginiaBusiness.com)
1. L to R: Justine Gayle, vice president of Booz Allen Hamilton’s business services team; Booz Allen Hamilton President and CEO Horacio Rozanski; and NorfolkEconomic Development Interim Director Sean Washington cut the ribbon on Aug. 15 for a delivery hub expanding the firm’s Business Services Center at its Norfolk office. Photo by Stephanie Kalis/Booz Allen Hamilton.2. L to R: U.S. Rep. Jennifer Wexton; U.S. Sen. Mark Warner; Fairfax County Board of Supervisors Chairman Jeffrey McKay; Dominion Energy Chair, President and CEO Robert Blue; Metropolitan Washington Airports Authority President and CEO Jack Potter; Loudoun County Board of Supervisors Chair Phyllis J. Randall; and Dominion Energy Virginia
President Ed Baine ceremonially broke ground Aug. 22 on the Dulles Solar and Storage project, a partnership between Dominion and the MWAA. Photo by Courtney Mabeus-Brown. 3. Appalachian College of Pharmacy student Audrey Allison took the Oath of a Pharmacist during ACP’s Aug. 25 white coat ceremony for the class of 2026. Photo courtesy ACP. 4. Christopher Newport University President and retired U.S. Coast Guard Rear Adm. William G. Kelly delivered his inauguration speech on Aug. 14. Photo by Erin Farina/CNU. 5. L to R: Prince George County Board of Supervisors Chairman Donald R. Hunter; Gov. Glenn Youngkin; Service Center Metals Maintenance Manager Chuck Dunaway; SCM founder and CEO Scott Kelley; SCM Chief Financial Officer Matt Lanzer; Cal Wiggins, SCM’s director of quality and technical sales service; and The Riverstone Group founder and owner Bill Goodwin Jr. cut the ribbon Sept. 9 on SCM’s $127 million expansion. Photo by Chip Jackson.
Kipton Currier envisions Virginia joining other mid-Atlantic states to form a super region for the life sciences industry.
Before that happens, the state must secure some key ingredients missing from the ecosystem, namely sufficient lab space for biotechstartups. Activation Capital, the brand name of the Virginia Biotechnology Research Partnership Authority — which promotes the growth of life sciences and advanced technology in the Richmond region — is helping to meet that need through the addition of a $53 million innovation center at the 34-acre VA Bio+Tech Park it manages adjacent to Virginia Commonwealth University in downtown Richmond.
“There are companies in the region that are at a very early stage that need space,” says Currier, Activation Capital’s vice president of operations. “What they’re really seeking is community. We will be able to provide [that] community in the new innovation space.”
Three decades in the making, the 107,000-square-foot innovation center, announced in early June, will feature incubator and lab space for startups doing biotech research in fields such as drug discovery, surgical instrumentation and respiratory drug delivery. Plans for the rest of the building include a community café and a 44,500-square-foot space for an anchor tenant, though Currier says the building’s overall size could still change.
“We would love to go higher than four stories for the right anchor tenant,” Currier says.
In a September webinar, Activation Capital President and CEO Chandra Briggman said the anchor tenant, which the organization is actively seeking, could be a life sciences company, advanced pharmaceutical manufacturer or a state entity.
Funded through a $15.75 million federal Build Back Better Regional Challenge award, $10 million in state appropriations, and other sources, the project is set to break ground between April and September 2024 and is scheduled to be completed by 2025.
Jennifer Wakefield, president and CEO of the Greater Richmond Partnership, says the center’s lab and incubator space will fill a gap in the regional life sciences pipeline that starts with intellectual property developed at VCU and ends with pharmaceutical manufacturing in places like Petersburg and Chesterfield County.
“We want it all,” Wakefield says. “I don’t think that executives in the life sciences industry were necessarily taking note of what was happening in the Richmond, Virginia, market, and now they’re starting to sit up and perk up a little bit about what is happening, and [asking], ‘Why was Richmond not on my radar?’”
RVA757 Connects, a nonprofit focused on regional cooperation for economic development in Richmond and Hampton Roads, released on Thursday its 10-point strategic plan for transforming the “megaregion” into the next global internet hub.
Virginia is already home to the world’s largest internet hub in Loudoun County’s Ashburn area, which has the world’s greatest concentration of data centers — Data Center Alley — through which more than 70% of global internet traffic is routed. From 2017 to 2021, data centers contributed $54.2 billion to Virginia’s gross domestic product, according to a PricewaterhouseCoopers study released in September. And now RVA757 Connects hopes to build similar success across the megaregion.
Internet hubs have subsea and terrestrial cable landing points and access to physical fiber networks, a combination of data centers and internet exchange points, and internet service providers, according to RVA757 Connects, which defines a global internet hub as “a physical location that facilitates the exchange of internet traffic among multiple networks, internet service providers, content delivery networks and other interconnected entities.”
The larger area stretching from greater Richmond to Hampton Roads has multiple strengths in digital infrastructure, said John Martin, president and CEO of RVA757 Connects, as he presented the plan during the organization’s 2023 Convergence conference, held at the Williamsburg Lodge. “It’s really going to take two cities to make the next global internet hub,” he said.
Virginia Beach currently has three subsea cables that land in the Camp Pendleton area: MAREA, which connects to Spain; BRUSA, which connects to Brazil and Puerto Rico; and DUNANT, which connects to France. The landing site has the capacity for a fourth cable, according to RVA757 Connects.
Virginia Beach-based Globalinx Subsea Colocation is building four more subsea bore pipes in the city’s Sandbridge area, the city announced in May 2022.
The megaregion currently has 12 data centers, including the QTS Data Centers and Meta data center campuses in Henrico County. QTS’ network access point in Henrico‘s White Oak Technology Park connects to the three cables that come through Virginia Beach.
The first strategy in the plan is establishing a global internet hub industry council, which the organization has done by converting the work group that developed the strategic plan and a map to show investors into a subcommittee of RVA757 Connects. So far, the organization has raised approximately $100,000 for the council, including a $50,000 grant from the Hampton Roads Community Foundation.
Its second strategy is to brief cities and counties in the I-64 corridor from Richmond to Hampton Roads. The council plans to give each jurisdiction a briefing.
“We’ve got to get everybody to understand, time kills deals. So if somebody comes to you” with a proposal for a digital infrastructure project, “already be educated so you can say yes or no, but don’t have to study it then,” Martin said.
Third, the organization plans to increase digital infrastructure investors’ awareness of the corridor and its assets by sending resources like a map graphic showing the region’s cable landing points, data centers and other relevant resources.
Fourth, the organization plans to support the growth of “robust local internet networks” by promoting the need for additional investment and creating an inventory of existing internet routes.
The fifth strategy is to pitch Virginia as a place for more international subsea cable landings. The internet hub council will work with Virginia Beach and the Hampton Roads Alliance to promote available sites — like the approved Sandbridge site — and to create and communicate no-anchor zones.
“We’re also working with the Coast Guard because, believe it or not, these cables — sometimes anchors get dropped on them … so we’ve got to have a very sophisticated communication system to tell ships, ‘You’re in a no-anchor zone,’” Martin said.
The sixth strategy is for the council to work with GO Virginia and other economic development organizations to inventory and market sites for potential data centers.
Next, the group plans to encourage the growth of the region’s internet exchanges (IXs) and internet exchange points (IXPs), which are physical locations where internet companies like internet service providers connect and exchange internet traffic. These allow networks to connect directly, rather than through third-party networks, creating shorter routes for internet traffic. Currently, the only one in the corridor is a DE-CIX point in Henrico‘s White Oak Technology Park. DE-CIX is a carrier- and data center-neutral internet exchange with operations in North America, Africa, Asia, Europe and the Middle East.
The eighth strategy is to support the concept of a fiber network ring — completing a regional ring in Hampton Roads, examining the need for one in the Richmond area and examining an I-64 corridor-long loop. Virginia Beach, Chesapeake, Portsmouth, Norfolk and Suffolk are building a 119-mile fiber ring managed by the Southside Network Authority with an expected completion in summer 2024. The Hampton Roads Planning District Commission is overseeing construction of a fiber extension to the Isle of Wight and Southampton counties.
The council’s ninth strategy is promoting utility Dominion Energy’s ability to provide power to digital infrastructure. In July 2022, Dominion said it wouldn’t be able to meet Loudoun County data centers’ demand for electricity until 2026 as it built out infrastructure. But data center development continues, and Dominion has accelerated some projects and is working with developers on some projects in individual cases, Washington Business Journal reported in March 2023.
The I-64 corridor can benefit from being near a large hub like Ashburn because as the area becomes more expensive and reaches its growth constraints, the Richmond area can present an attractive, less expensive alternative for developers, said Jon Hjembo, senior research manager for market research company TeleGeography.
“You have tons of intercontinental traffic moving straight through here, going to Ashburn,” Hjembo said. “Find out …. who these potential partners who are … generating traffic, building these networks, and take advantage of the fact that you’re at this crossroads, both on the Eastern Seaboard itself, but also between Ashburn and the rest of the world.”
For its 10th strategy, the council will work to advance the corridor’s tech talent pipeline, from K-12 through higher education. The plan also includes a potential second component to the tech talent pipeline — a focus on advancing digital equity. The organization is working on bringing to the region the nonprofit PCs for People, which provides low-income families, nonprofits and individuals with low-cost computers, free training and no- to low-cost internet service.
Tyrone Noel has been named president of the Hampton Roads region for Bank of America, the bank announced Thursday.
As president, Noel will lead 500 employees and operations across the Hampton Roads market and be responsible for growing market share and driving integration across the bank’s eight business lines. He will also lead the bank’s efforts to help advance economic mobility and strengthen communities throughout the region.
“Tyrone has established deep relationships with teammates, clients and the community during his career at Bank of America,” Bank of America chairman and CEO Brian Moynihan said in a statement. “In this new role, Tyrone will help ensure we are a great partner as we continue to grow across Hampton Roads.”
Noel replaces Francisco “Frank” Castellanos, who served in the role from September 2021 until becoming the Merrill market executive for Greater Washington, D.C., late last year. Castellanos replaced Charlie Henderson, who held the role for 15 years.
Noel has more than two decades of experience in financial services, and previously served as the market executive for Merrill Lynch Wealth Management, a role he will continue to serve in across the state. He joined Merrill, which is Bank of America’s investment and wealth management division, in 2011 as a financial adviser.
Noel, who lives in Williamsburg, has served as a mentor with Merrill’s women’s exchange as well as its Black professional group. He is also a member of the company’s Black executive leadership council.
Charlotte, North Carolina-based Bank of America is the country’s second largest bank. It reported $3.1 trillion in assets as of June 30, 2023 and $95 billion in revenue is 2022.
Travis Hill, CEO of the Virginia Alcoholic Beverage Control Authority, announced Thursday he plans to step down from his post at the ABC, where he’s worked since 2014.
Hired nine years ago as the Virginia ABC‘s chief operating officer, Hill became CEO in 2018 after managing the former state department’s transition to a semi-independent authority with more autonomy, Over the past nine years, the ABC has brought in more than $4 billion in profits and tax revenue to the state, according to Thursday’s announcement, and it moved its headquarters from Richmond to Mechanicsville in Hanover County.
Starting in 2018, the Virginia ABC surpassed $1 billion in liquor sales each year and broke sales records each year of Hill’s tenure as CEO. In fiscal year 2023, the authority exceeded its gross revenue from the previous year by $54 million, with $1.4 billion in sales.
However, Hill also presided over the authority during a period of recent controversy. In June, reports emerged that employees embezzled money from seven ABC stores last year, taking advantage of a cash register system vulnerability. A September 2022 audit uncovered the thefts, but ABC leaders said they didn’t learn about it until February 2023. Four higher-up employees were later placed on leave, but it’s unclear if that was connected to the thefts. Still, ABC’s board chair, former state Del. Tim Hugo, expressed perplexity over how agency leaders could be unaware of the problem for six months.
During a town hall meeting Thursday, Hill said, “Joining Virginia ABC in its prior form as a department and then leading its transformation to an authority was an honor as I learned about our unique place in Virginia’s government as a source of revenue and regulation. We held commitments to generating profits through the responsible sale of spirits while ensuring public safety by enforcing regulatory standards that afforded a fair marketplace.
“Our unique organization had many partners, thousands of employees and responsibility for an industry that has not one, but two, constitutional amendments dedicated to its operations. Together, we transformed into a modern governmental authority, building a distribution center that supports creative retail offerings through the promotion of products that come from every corner of the world and this commonwealth.”
Hill did not disclose what his plans are going forward, saying only, “I look forward to new challenges ahead where I can apply the lessons I’ve learned while working with you.”
Under Hill, Virginia ABC managed changes in the sale of alcohol during the COVID-19 pandemic, when state policies allowed the sale of mixed drinks off-site by restaurants, a move that kept some Virginia eateries afloat during the shutdown, when they were limited to carryout and delivery options. Also, Gov. Glenn Youngkin’s administration was displeased with a decline in revenue the authority was bringing to the state, according to a Virginia Mercury report in July. In an ABC board meeting, the state’s chief transformation officer reportedly noted that the ABC’s operating costs grew since 2017 — as did sales, but not to the same degree, and the authority’s contributions to the state declined from 2021 to 2023.
According to an ABC spokesperson, Hill’s last day will be Nov. 10, and Chief Law Enforcement Officer Thomas Kirby will serve as interim CEO. Kirby, according to his bio, joined the ABC as a special agent in the bureau’s Hampton and Richmond regional offices in 2001, and previously served as a police officer in Newport News and Hampton.
Hill previously served as state deputy secretary of agriculture and forestry before joining the Virginia ABC. He is currently president of the National Conference of State Liquor Administrators and is a graduate of the University of North Carolina, from which he received his bachelor’s and law degrees.
In late 2018, the last time the federal government shut down for an extended period, Eric Ingram was furloughed from his job at the U.S. Federal Aviation Administration for six weeks. He used that time to co-found a startup focused on space safety, Scout Space.
Launched in 2019, the Alexandria-based technology startup now has several government contracts and completed a seed round of funding, securing an undisclosed amount of investment from venture capital firm Decisive Point and federal contractor Noblis. Ingram, Scout Space’s CEO, is carefully watching the situation this year on Capitol Hill, where Republicans in the U.S. House of Representatives had yet to come to a compromise as of Wednesday that would prevent another shutdown by Oct. 1. As a government contractor, he’s seeing the shutdown from a different perspective this time.
If the federal government does shut down, Scout Space may take what Ingram called a “proactive approach to control spending,” including pulling back on hiring, travel and nonessential purchases, like outfitting its new lab space in Reston. “It’s more of a precautionary thing for us, that we will just have to pull back on any unnecessary spending,” Ingram said this week. “Just to be safe.”
Government shutdowns impact many people, from federal employees who either work without pay or are not allowed to perform their jobs to families who won’t receive food stamps and other support. But in Virginia, shutdowns have a massive ripple impact.
The commonwealth is home to more than 144,000 federal civilian employees, the second largest state for federal workers in the nation behind California. On Wednesday, the White House Office of Management and Budget told federal agencies to be prepared to notify their employees of the status of government funding, The Washington Post reported.
Virginia’s also home to the world’s largest naval base and several other installations where active-duty service members would be required to show up to work but wouldn’t be paid during a shutdown. Four of the world’s six largest defense contractors are headquartered in Virginia, as well as a slew of other companies that contract with the federal government, offering services ranging from janitorial and security work to integrating network systems and health care management software to building nuclear aircraft carriers.
According to the Government Accountability Office, the federal government spent $637 billion on contracts in fiscal 2021; the ripple effects of a shutdown for businesses that rely on the federal government could be severe, officials told Virginia Business. In 2022, the Department of Defense spent $62.7 billion in Virginia, the most in any state, according to a recent DOD report.
Effect on smaller contractors
“It would have an impact on contractors kind of immediately,” said Jerry McGinn, executive director of the Greg and Camille Baroni Center for Government Contracting at George Mason University.
While some work may continue because of variances in contracts, including those that span multiple years, no new money can be spent, which means no new contracts will be issued during a shutdown, McGinn said. While government workers may eventually receive back pay, contractors do not have the same guarantee, he added.
“The bigger problem is if a contractor, if they’re not allowed to work on their contract because the government’s been furloughed, they’re not going to get paid for not performing work,” McGinn said. “That’s the bigger issue that’s going to impact companies.”
Smaller companies, those that don’t have the reserves of a large, multinational contractor, are going to feel that impact earlier and more sharply during a time in which banks may be less apt to loan money and interest rates are high.
“If this is a couple of days, that’s one thing. If it’s a couple of weeks, that’s another,” McGinn said. “If we’re into … multiple weeks and months, then that becomes potentially catastrophic, starting with the small [contracting businesses] and kind of moving up.”
Becky Reed, CEO of Suffolk-based Reed Integration, said she’s been following the news and checking in with her government customers on the status of her company’s contracts. “Luckily, we’re doing a lot of virtual work,” said Reed, “so we can keep going with most of our stuff.”
But Reed Integration, which provides systems engineering, project management and other services, also has the Coast Guard as its customer. If a base closes, that could impact the company, which relies on government contracts for 70% to 80% of its business. In that event, Reed said she hopes her employees can work from home. Some activities, like workshop exercises, may need to be postponed.
But there’s another looming concern: “When we submit our September invoices, if there is a government shutdown, there might not be anybody on the government side to approve our invoices,” Reed said.
During the last shutdown, which ran from Dec. 22, 2018, through Jan. 25, 2019, and was the longest in government history, it took a few months for contractors to get paid, Reed noted. “The only thing you can do to prepare is make sure that you can can manage your cash flow so that you have enough to cover payroll and all the bills.”
The Arlington-based Professional Services Council, a trade association that advocates for 400 businesses in the government technology and professional services industries, has been lobbying Congress against a shutdown and speaking to its membership in recent weeks about preparing for one. It’s harder to get out of a shutdown than into one, said PSC President and CEO David Berteau.
“To get out of it, Congress does have to pass something,” Berteau said. “And it has to be something the president will sign.”
Hampton Roads impact
In Hampton Roads, $4 out of every $10 is generated by the federal government, accounting for $40 billion to $45 billion in economic activity annually, said Bob McNab, an economist at Old Dominion University. For an area heavily reliant on defense spending, bringing essential service members into work without pay just adds to their stress, particularly if there are fewer federal civilian employees and contractors around to support them, he said.
That will also spill over into the business community, McNab added, affecting car dealerships, restaurants and the like while active-duty service members and their families are forced to curtail spending.
“It is this perfect storm that would really undermine economic activity in Hampton Roads if it continued for a long period of time,” McNab said.
Huntington Ingalls Industries, Virginia’s largest industrial employer and the nation’s only builder of nuclear powered aircraft carriers, declined to comment on the potential impacts of a government shutdown on its 44,000-person workforce.
“Given the uncertainty with the potential government shutdown, it would be premature to speculate about specific impacts,” company spokesperson Danny Hernandez said.
Other large contractors, including Tysons-based Maximus, which operates Medicare and Affordable Care Act customer helplines, have also said it is too early to speculate on the looming shutdown’s potential impacts.
With no deal in sight Wednesday, Tysons-based PenFed Credit Union announced it would offer emergency furlough assistance for members impacted by a shutdown, including interest-free loans, home loan hardship assistance and skip payments on qualifying loans. The credit union, the nation’s third largest, with $35.3 billion in assets, has 2.9 million members, largely from the military.
“PenFed understands the hardship furloughed employees face when they don’t receive the paychecks they rely on to pay their bills, buy groceries and support their families,” said PenFed Credit Union President and CEO James Schenck in a statement. “We are committed to working with our members to minimize financial impact and ensure their financial security.”
Given a tight labor market, Terry Clower, the Northern Virginia chair and professor of public policy at George Mason’s Schar School of Policy and Government, said the looming shutdown is also coming at a time where many employers will be reluctant to furlough any employees. “Probably, the contractors would be in a situation of trying to keep the folks on for as long as possible, even if it was eating into corporate profitability.”
And there is potential for even longer-lasting effects in Northern Virginia, including population loss and further labor shortages, Clower added. “A highly skilled federal worker … if you had a family to take care of in all this, you could rationally, reasonably come to the conclusion [of], ‘To heck with federal government, if they’re gonna start doing this on a recurring basis, I can’t live with the uncertainty.'”
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