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Exceeding expectations
In the greater Richmond region, local economic development authorities have been hard at work landing new business and securing expansions, and this year those efforts bore fruit, they say.
In fact, 2022 has outpaced the past two decades, declares Jennifer Wakefield, the Greater Richmond Partnership’s president and CEO, as the region landed two “megaprojects” — The Lego Group‘s $1 billion toy factory in Chesterfield County (See related November 2022 cover story) and CoStar Group Inc.’s $460 million expansion in Richmond — as well as other major deals.
Representing the city of Richmond and the counties of Henrico, Hanover and Chesterfield, GRP was instrumental in bringing in 13 projects in the past fiscal year that are expected to produce nearly 5,000 jobs, totaling $1.62 billion in capital investment and 4.45 million square feet of development.
Lego‘s announcement in June that it will build a $1 billion plant in Chesterfield County’s Meadowville Technology Park, creating more than 1,760 jobs over the next decade, is the Richmond region’s marquee deal this year, although CoStar’s expansion is making a big impact in the city. In May, the real estate data company purchased the former SunTrust building south of the James River for $20 million, and on the other side of the river, adjacent to its current footprint, will be a $460 million campus expected to employ 2,000 people.
“It doesn’t look like there’s an end in sight, which is good,” says Wakefield, who joined GRP in 2017 and was promoted to CEO in February 2021. “It has been absolutely insane lately.”
The Richmond region continues to be a popular destination for the manufacturing and distribution sectors, as well as tech and pharmaceutical businesses. Much of that is due to its location near major highways, airports, railways and the Port of Virginia’s terminals in Richmond and Hampton Roads, Wakefield says.
“I think that we have all the right mix of ingredients for companies who are interested in being in what I like to call a Goldilocks location,” she says. “We’re not too big. We’re not too small. We’re just right.”
Henrico County
If you’ve ever dunked an Oreo in milk, chances are it came from the Mondelez bakery in eastern Henrico. Chicago-based Mondelez International Inc., a $26 billion-plus food and confectionary company, owns all Nabisco products.
The Mondelez bakery in Henrico has been around for about 50 years, and in late 2021, the company announced a $102.5 million expansion, expected to create 80 jobs. The expansion also includes new manufacturing equipment, which has the power to produce 10,000 Oreos per minute, says Anthony Romanello, executive director of the Henrico County Economic Development Authority.
Coca-Cola also announced it would spend $23 million on upgrades and expansions to its Henrico plant, which includes new bottling technology. Bottles about the size of a test tube will be shipped to the Henrico facility, and a blow-mold machine expands the plastic to a larger 20 oz. size. This means that 60 to 70 fewer trucks are coming to the Coke plant per week because they can carry more of the consolidated bottles. This investment saves the company on transportation costs and reduces truck traffic on county roads, explains Romanello.
Because of Henrico’s long history in food distribution, he adds, “In the eastern part of the county, we’ve got substantial infrastructure that they need for the investments and a really good road network, so they can get the product out quickly.”
Henrico also landed a $144 million investment from QTS, a data center company that set up a network access point for three subsea telecommunications cables from Virginia Beach, which connect to data networks in Europe, South America and the United States. QTS announced in July it would expand its White Oak Technology Park data center by 1.5 million square feet, near Meta Platforms Inc.’s 970,000-square-foot data center.
On the western side of Henrico County, pharmaceutical giant Thermo Fisher Scientific Inc. announced in March a
$97 million investment to build two bioanalytical labs in the former Toys “R” Us location near Regency Square, as well as a third lab in downtown Richmond near VCU Medical Center. The company is targeting Virginia college-educated scientists to fill about 400 jobs in the county.
Another high-profile project, GreenCity, is coming to the former Best Products Co. campus, just off interstates 64 and 95.
Groundbreaking on the $2.3 billion mixed-use development — which will include a sustainably built and operated 17,000-seat arena expected to open by 2025 — is set to take place in early 2023. The 204-acre property will also include residential, retail, office and hotel space, with full completion by 2034.
This project is in step with Henrico’s master plan, which focuses on redevelopment on the west side of the county and new buildings on the east, Romanello says.
“We’re seeing more residential [space]. We’re seeing buildings being upgraded,” he says. “You’re going to see further densities there that we haven’t had before.”
Chesterfield County
This year has been very busy for Meadowville Technology Park in eastern Chesterfield.
In September, Plenty Unlimited Co. announced its plans to build the nation’s largest indoor vertical farming facility at the tech park, a $300 million investment expected to produce 300 jobs in the next six years. The first building, expected to be complete in late 2023, will feature 30-foot towers to grow Driscoll’s strawberries at scale, a major change for the agribusiness, which has typically sourced fruit from traditional farms in California and Mexico.
The goal is to grow strawberries in Virginia and be able to ship them to an estimated 100 million customers in the mid-Atlantic and Northeast within hours.
“[Plenty] had some pretty specific needs around power,” says Matt McLaren, senior project manager with Chesterfield Economic Development. “Meadowville Technology Park has a great relationship and infrastructure with Dominion, and we’re able to plan for the future with power needs.”
One of Petersburg’s major pharmaceutical players, nonprofit drugmaker Civica Rx, also is setting up shop at the tech park, investing $27.8 million on a 55,000-square-foot lab to support its North American headquarters being built in Petersburg and expected to open in 2024.
Of course, the arrival of Danish toymaker Lego, which plans to start hiring workers late this year or in early 2023 for its moulding, processing and packing plant on 340 acres at Meadowville, is the biggest development for the region.
“The Lego project initially was driven here because of our location, because they can get to a lot of customers,” Wakefield says. “One of the biggest things that we bill is that you can get to half of the U.S. customers within a day’s drive.”
While economic development projects usually take years to come to fruition, there will already be a groundbreaking on the 1.7 million-square-foot facility later this year at the technology park. Lego said in its announcement in June it will begin operations in a temporary building in early 2024, and the permanent plant will start production in the second half of 2025.
“This is a legacy company that continues to innovate. We’re excited to partner them with our workforce,” McLaren says. “We share a lot of their values. It just felt like a perfect fit.”
Richmond
In October 2021, the city of Richmond announced the marketing of the Diamond baseball stadium property as an area for redevelopment. Now, plans for the rebranded Diamond District are steaming ahead with City Council approval.
The center of the $2.44 billion multiuse development will be a new baseball stadium for the Richmond Flying Squirrels AA team — a necessity under new Minor League Baseball regulations to keep baseball in Richmond — and accompanying residential, office, retail and hotel space, as well as walkable green space.
One of the aims of the project is to connect the new neighborhood to Richmond’s popular Scott’s Addition community, just across the high-traffic Arthur Ashe Jr. Boulevard.
In September, a 10-person city panel chose a development group for the project that includes Richmond-based Thalhimer Realty Partners, Washington, D.C.-based Republic Properties Corp., Chicago-based Loop Capital Holdings LLC and San Diego venue developer JMI Sports. The joint venture’s proposal beat out 14 other applicants.
Unlike earlier big proposals (including the unsuccessful Navy Hill plan), the Diamond District follows the Richmond 300 masterplan, and the stadium will be funded with Community Development Authority (CDA) bond financing. Tax revenue from the 67-acre property, as well as leasing fees from the Squirrels and Virginia Commonwealth University athletics, will pay off the bonds.
“I also cannot stress enough the importance of land-use planning that has paved the way for large-scale redevelopment projects in the city,” says Leonard Sledge, the city’s economic development director and a member of the panel. Phase one will include the baseball park, which is expected to open for the 2025 MiLB season.
Downtown, CoStar has started work on its $460 million campus, which will include a 26-story, 1 million-square-foot building, the tallest among Richmond’s skyline. The former SunTrust bank office across the James River will be home for about 400 more employees. Essentially, Richmond will serve as a second headquarters for the Washington, D.C.-based company, which currently has about 1,200 employees in Virginia’s capital.
Richmond’s next large-scale economic development focus will be centered around the Greater Richmond Convention Center, Sledge says, part of a new “innovation district” that would add office and lab space for the growing biotech sector and more residential and park land.
“Richmond continues to be a great place for people and companies — large and small,” Sledge says. “More importantly, the economic development work of the city continues to emphasize the importance of equitable economic growth.”
Hanover County
Perhaps the unofficial nickname for the town of Ashland — “The Center of the Universe” — is starting to also apply to Hanover County.
Hanover has seen more commercial development in the past five years than in the previous 15, says E. Linwood Thomas IV,
director of Hanover County Economic Development. In 2022, the county announced more than $240 million in new projects.
“The overall consensus is that Hanover has been consistently strong,” Thomas says. “We’ve been punching above our weight class for the last five years.”
Nonetheless, the county has lured Performance Food Group, a Goochland-based Fortune 500 company that plans to build an $80 million sales and distribution facility in Ashland, producing an expected 125 jobs.
Pennsylvania-based Lutron Electronics Co. Inc., which produces residential and commercial lighting products, also plans to build in Ashland, investing $28.3 million in a manufacturing plant that is set to employ 200. The governor’s office announced that deal in September. Also, pharmaceutical giant Walgreens announced in February that it will build a $34.2 million automated packaging and distribution facility in eastern Hanover, creating 249 jobs. Meanwhile, the Wegmans $175 million, 1.7 million-square-foot distribution center is under construction.
Part of Hanover’s success in securing new economic development opportunities has been its engagement with the Virginia Business Ready Sites Program, which helps localities get land shovel-ready for businesses to move in quickly.
“They start to build the shell, and the next thing you know, you’ve got these big corporations who see the Richmond region and Hanover County as a strategic location on the Eastern Seaboard,” Thomas says. “We do a lot of this work up front, so we don’t have to compete as hard on the back end.”
Currently, Hanover County has 5.4 million square feet of new commercially zoned space, either approved or being developed. The county’s vacancy rates in the industrial market are less than 1.6%.
Most of this space is being leased before completion because of the county’s “strategic location and low cost to do business,” Thomas adds. “Hanover is just really starting to see the fruits of those labors in this past year because of all the new development taking place.”
Richmond at a glance
Founded in 1737 by Col. William Byrd II, Richmond is known as the River City for its location on the James River. The state’s capital, Richmond is home to the Virginia General Assembly and much of state government, and the metro region is headquarters for eight Fortune 500 companies. The region also is home to the University of Richmond, Virginia Commonwealth University, Virginia State University and Virginia Union University.
Population
226,604 (city); 1.3 million (metro region)
Top employers
VCU Health System/VCU: 21,332 employees
Capital One Financial Corp.: 13,000
HCA Virginia Health System: 11,000
Bon Secours Richmond: 8,416
Dominion Energy Inc.: 5,433
Major attractions
Richmond is home to historical and cultural attractions such as the Poe Museum, American Civil War Museum, the Virginia Museum of Fine Arts, the Virginia Museum of History & Culture and the Black History Museum and Cultural Center of Virginia. Visitors can also enjoy time outside at Maymont park or the Kings Dominion amusement park about 20 miles north of the city. Carytown, the Fan District and Scott’s Addition offer many options for shopping, dining and entertainment.
Top convention hotels
Richmond Marriott
413 rooms, 26,760 square feet
of event space
DoubleTree by Hilton Hotel
Richmond – Midlothian
237 rooms, 26,039 square feet
of event space
The Jefferson
181 rooms, 26,000 square feet
of event space
Hilton Richmond Short Pump
Hotel and Spa
254 rooms, 21,937 square feet
of event space
Notable restaurants
Lemaire — New American, lemairerestaurant.com
Longoven — New American, longovenrva.com
L’Opossum — Modern French, lopossum.com
Shagbark — New American/Southern, shagbarkrva.com
Stella’s — Greek, stellasrichmond.com
Fortune 500 companies
Performance Food Group Co.
Altria Group Inc.
CarMax
Dominion Energy Inc.
Markel Corp.
Owens & Minor Inc.
Genworth Financial
Arko Corp.
Richmond wellness space gets shot from Jack Daniel’s
On his 33rd birthday, Brelan Hillman learned that BareSOUL Yoga and Wellness was selected as one of six finalists to compete for $10,000 in a pitch contest for Black-owned businesses in Richmond.
With just a weekend to prepare, Hillman, a business partner and board member for BareSOUL, crafted his three-minute appeal to connect Richmond’s history in the slave trade to how Black business owners now are transforming the city, and the roles that BareSOUL and its brick-and-mortar space, The Well Collective, play in that.
“We thought it was important to kind of ground everyone in that reality,” says Hillman.
BareSOUL walked away with the top prize in Jack Daniel’s “New Beginnings: Make it Count” contest, held Sept. 26 at The Len event space in Shockoe Bottom. Local judges included Melody Short, co-founder of The Jackson Ward Collective; Shane Roberts-Thomas, owner and chef of Southern Kitchen in Jackson Ward; and Metropolitan Business League CEO Floyd E. Miller II.
Jack Daniel’s launched the “New Beginnings” contest in 2020 to support Black businesses and this year expanded it to Richmond, which LendingTree ranked No. 3 on its list of the 50 U.S. metropolitan areas with the most Black-owned businesses. Jack Daniel Distillery notes that its namesake founder learned to make whiskey from Nathan “Nearest” Green, who was born into slavery and emancipated before becoming the company’s master distiller.
Another of this year’s finalists, Taryn Wynn, opened her ice cream-making workshop business, Sweet Wynns, in a shared kitchen in Midlothian in May. She had hoped the contest would provide money for equipment and furnishings as she prepares to move to a new location in Shockoe Slip in November. Even though she didn’t win, she says, “we’re just still gonna chug along and figure it all out.”
BareSOUL owner Ashley Williams started her business in 2015 and opened The Well Collective in Shockoe Bottom in November 2021 to expand her wellness offerings and provide space for other businesses. With three part-time employees, Williams plans to spend BareSOUL’s pitch contest winnings on training a general manager, website redesign, business strategy and building out space.
“Wellness is foundational to how we do everything — our mental, physical, social and even our financial state is vital to our being,” says Williams. “Wellness isn’t a luxury but a birthright for everyone. I look forward to growing a culturally relevant and inclusive wellness space in Richmond.”
White Mill project closer to getting off the ground
Danville‘s highly anticipated $100 million White Mill redevelopment is starting to see positive movement.
In August, Danville City Council unanimously approved a resolution to apply for a $5 million state grant from the Department of Housing and Community Development’s Industrial Revitalization Fund, a move to help with gap financing of the renovation.
Danville has already received a $500,000 state grant, and the city is applying for a $1.7 million Land Water Conservation Fund grant to acquire seven acres and an abandoned bridge. It’s all part of the plan to create a whitewater channel in the canal, plus connect the former textile mill to the planned Riverfront Park.
It’s a joint venture between the Industrial Development Authority of Danville and The Alexander Co. The IDA will oversee parking spaces, development of 110,000 square feet of commercial space and exterior improvements to the eastern third of the property.
“Our goal is to have market-rate commercial space available to lease on the first floor,” says Danville City Manager Ken Larking.
The Alexander Co.’s portion of the project will include 32 workforce-priced residential units and 118 market-rate units.
The IDA and Alexander were expected to close on financing by mid-October, and construction will take about two years, says Corrie Bobe, Danville’s director of economic development and tourism.
The prominent white building once represented one of the Southeast United States’ largest textile operations, Dan River Mills, which shut down in 2006 after being sold the previous year.
But since the White Mill has sat empty, “the building became an ode to the past instead of helping us promote the incredible growth and transformation that is being experienced, not only in the city of Danville, but throughout the entire Southern Virginia region,” Bobe says.
However, with the forthcoming Caesars Virginia casino in the Schoolfield area, where the resort replaces another empty mill building, there’s been more interest in developing downtown Danville. Its importance to the region goes beyond economics, Larking says.
“Renovation of the White Mill into a mixed-use development with unique public recreation elements will be a huge psychological boost for our community,” he says. “It will take a longtime vacant building that was once very important to the community and bring it back to life.”
Associate Editor Robyn Sidersky contributed to this story.
New NASA tunnel could boost Va. space industry
As NASA pushes the reaches of space exploration, a new wind tunnel at the agency’s Hampton-based Langley Research Center will serve an important role in journeys beyond Mars and could also boost Virginia’s space industry.
In August, NASA broke ground on its new 25,000-square-foot Flight Dynamics Research Facility (FDRF), which will house the 130-foot-tall vertical wind tunnel that will aid researchers and scientists designing unmanned spacecraft expected to journey to Venus between 2028 and 2030 and to Saturn’s largest moon, Titan, in 2034. The General Services Administration awarded Birmingham, Alabama-based BL Harbert International LLC a $43 million design-build construction contract for the FDRF in September 2021.
Scheduled to be operational in late 2024, the FDRF will be NASA Langley‘s first major new wind tunnel in more than 40 years. The tunnel combines the functions of the 12-foot Low Speed Tunnel built in 1939 — which re-creates takeoff and landing conditions — and the 1941-era Vertical Spin Tunnel, which helps researchers understand how aircraft perform during stalls. However, NASA says the FDRF will operate more efficiently and with less turbulence.
As those 20th-century tunnels aged, maintenance costs increased as parts became difficult to replace. Moreover, flooding concerns grew as both tunnels sit near water.
“Both have seen countless aircraft and spacecraft, all types of aerospace vehicles for military and civilian testing,” ranging from space capsules and shuttles to supersonic and commercial aircraft, says NASA spokesperson David Meade. “It’s a testament to the original construction and design and how well they’ve been used.”
NASA’s space technology and aerospace teams will use the new tunnel, and most of the world’s major aerospace companies also frequently conduct testing at Langley. Meade says it’s too early to tell which contractors will use the tunnel, but he expects a lot of interest.
“It’s going to be a new, state-of-the-art facility that everybody’s going to want to use for research,” he adds, “and that will bring a lot of attention and customers to our center to use the facility.”
Ted Mercer, CEO of Virginia Commercial Space Flight Authority, a state organization started to attract space industry businesses to the commonwealth, agrees. “Bringing in a new wind tunnel will bring in more quality jobs to the region and expand the workload for NASA.”
Everything is not awesome
When Lego Group representatives toured Chesterfield County‘s Meadowville Technology Park on a winter day early this year, they didn’t speak.
As with most industrial site visits, the county economic development authority staffers conducting the tour didn’t yet know which company they were working with, although they’d answered a site consultant’s request for proposal. The execs from the Billund, Denmark-based toymaker sought to keep it that way, avoiding revealing their Danish accents by letting their consultants do the talking.
“They told us later on, ‘The day we saw the site, we knew it was where we wanted to build. It was instant,’” recalls Chesterfield Economic Development Director H. Garrett Hart III.
In June, Lego held a festive news conference with Virginia Gov. Glenn Youngkin, announcing the company’s plans to build a $1 billion manufacturing plant on 340 acres at Meadowville to turn out its brightly colored toy bricks.
The problem? Despite local and state efforts at marketing industrial sites in the commonwealth, the Lego factory is the only manufacturing project requiring an estimated 250 or more acres that Virginia has landed in the past seven years.
From January 2015 through September 2022, 121 new industrial projects requiring an estimated 250 or more acres were announced in the Southeast, according to the Virginia Economic Development Partnership. Combined, those projects generated more than $25 billion in capital expenditures and an estimated 58,000 jobs.
And Virginia won just one: Lego.
The commonwealth’s shortage of large, project-ready sites is the largest deterrent to Virginia landing these projects, economic development officials say.
Industrial megaprojects are worth competing for, says VEDP President and CEO Jason El Koubi: “If we want to achieve Gov. Youngkin’s goal of [creating] 400,000 jobs over his four-year term, if we want to position Virginia as a job growth leader, winning the big projects is critical.”
As of August, nearly 100,000 more Virginians were employed than at the end of January, when Youngkin began his term, figures that can be attributed partly to pandemic recovery. Even so, Youngkin, a former co-CEO of Washington, D.C.-based private equity firm The Carlyle Group, has said that he thinks the commonwealth has a long way to go in economic development — even as Virginia held the top ranking in CNBC’s Best State for Business report in 2019 and 2021 and currently ranks No. 3. (See related Youngkin interview)
Big sites have big payoffs. Between 2018 and 2021, large projects requiring 250 acres or more comprised 15% of companies’ site-search requests in Virginia but accounted for 51% of potential jobs and 78% of potential capital expenditures, according to VEDP.
Manufacturing projects also matter for small metro areas and rural regions of Virginia.
“For many regions of Virginia,” El Koubi says, “manufacturing projects represent the single largest industry sector by jobs of their announcements over the last five years. Winning in manufacturing and other industrial sectors is critical for the economic growth and vitality of many of Virginia’s regions.”
Virginia has reliably secured projects in the so-called “golden crescent” stretching from Northern Virginia south to Richmond and Hampton Roads but needs to diversify its economic development into other areas, says Gentry Locke Consulting President Greg Habeeb, a Republican former state delegate who represented Roanoke. Habeeb, who now represents companies exploring economic development deals in the commonwealth, would like to see Southwest or Southern Virginia land a car manufacturer or another project comparable to Lego.
“We have large swaths of Virginia with very talented workers, with low cost of living … where we have not been as good at landing the really big projects. That to me is kind of the next phase,” he says.
The lay of the land
Manufacturers’ decisions on where to locate are multifaceted, but site availability is the first step.
“If you didn’t even have the sites, then you couldn’t be out there doing your permitting activity, getting your utilities ready,” says Chris Lloyd, McGuireWoods Consulting LLC’s senior vice president of infrastructure and economic development.
“One of the most common reasons that Virginia has been eliminated [in the selection process] for large manufacturing projects is because we do not have an inventory of very large sites of sufficient readiness to meet the needs of those projects,” El Koubi says.
Virginia’s largest VEDP-certified site — those ready for construction in 12 to 18 months — is the Southern Virginia Megasite at Berry Hill, owned by the Danville-Pittsylvania County Regional Industrial Facilities Authority. Of the site’s 3,528 acres, about 1,900 are easily developable. The site has water, electricity and sewer infrastructure, and construction on a connector road will start in January.
Although Virginia economic development officials pitched the site to Hyundai Motor Co. executives, Hyundai selected a location near Savannah, Georgia, for its $5.5 billion electric vehicle and battery manufacturing plant. Announced in May, it’s expected to create 8,100 jobs.
“We had a 2,200-acre megasite. Even though it wasn’t pad-ready, all the due diligence and the zoning had been complete. That’s a big, big thing that companies are looking for, especially [for] megaprojects like this, where time is everything,” says Hugh “Trip” Tollison, president and CEO of the Savannah Economic Development Authority, part of the joint development authority that acquired the Georgia site for $60 million in 2021. The authority started work on due diligence, zoning, wetland impact studies and other necessary prep for the site about eight years ago, completing it ahead of the acquisition.
Including the Berry Hill site, VEDP lists only six certified sites with 250 or more acres in Virginia, two of which are privately owned, and only two sites of 1,000 or more acres. The Southern Virginia Megasite is the only property of those six that VEDP lists as pad-ready — graded and ready for the development of flat parcels that can support construction — in its site database. So far, 200 acres of the Southern Virginia site have been graded, and another 65 acres are under development.
A farmland property in Chesapeake could become another 1,000-plus-acre site, but it’s currently privately owned and zoned for agriculture. In 2017, property owner Frank T. Williams proposed the city create a 1,420-acre megasite there — the Coastal Virginia Commerce Park. As of September, an application to rezone the land was set to go before the city planning commission in November. Chesapeake City Council in 2018 approved an amendment to the city’s comprehensive plan to allow for the park. Council must sign off on the rezoning application in order for the Chesapeake Economic Development Authority to purchase the site and begin development.
Public ownership is a major competitive advantage, as manufacturers are focused on speedy approvals and construction.
“The essential question throughout the last six years was, ‘Well, it’s a great site, but you don’t own it.’ And we said, ‘Yeah, you’re right. We don’t own it,’” says Tollison with Savannah’s EDA. “And until we really owned the site and could control our own destiny, it was a difficult proposition to convince a company like Hyundai to come to a site that we didn’t own.”
In contrast to Virginia, North Carolina has four sites available that are larger than 1,000 acres. The state realized it needed to develop sites to compete for megaprojects about 15 years ago, says Christopher Chung, CEO of the Economic Development Partnership of North Carolina (EDPNC).
“There were a lot of these automotive assembly plants that were announced in the late ’90s through probably [the] mid part of the 2000s,” he explains, “and during that stretch, we just did not have a good site that was under control, assembled, optioned [and] had design and engineering — if not actual infrastructure — extended to them, and other states did.”
North Carolina’s state legislature authorized a site-readiness program but didn’t always allocate funding to it. Nongovernmental agencies, like the Joseph M. Bryan Foundation of Greater Greensboro and the Golden LEAF Foundation, which administers tobacco settlement agreement funds to North Carolina’s rural and economically distressed areas, filled gaps.
In December 2021, Toyota announced it would build a $1.3 billion electric vehicle battery manufacturing facility, expected to generate 1,750 jobs, at North Carolina’s Greensboro-Randolph Megasite. In August 2022, Toyota announced an additional $2.5 billion capital investment in the project, adding 350 jobs.
North Carolina’s western neighbor also joined the race to land manufacturing megaprojects years ago. In 2009, Tennessee purchased 4,100 acres of former farmland that became the Memphis Regional Megasite. By the time it landed a project in September 2021, the state had invested at least $174 million into developing the site.
Its new tenant is a joint venture between Ford Motor Co. and SK Innovations for a $5.6 billion, 3,600-acre electric truck and EV battery plant, which will create a projected 5,600 jobs.
Below the curve
Why are these states lapping Virginia? It comes down to funding and priorities.
Virginia has historically made much smaller investments in site development than its neighbors.
Manufacturing megaprojects weren’t always a priority for Virginia, says Lloyd with McGuireWoods. “I think some of it was, we enjoyed several decades of success with economic development projects, and maybe we weren’t as focused on that as other places,” he says. “We were seeing the big office projects, the Northern Virginia economy was humming along and … we weren’t as diligent as some of the other states in order to pursue those.”
In 2021, the Virginia General Assembly allocated $5.5 million for the Virginia Business Ready Sites Program (VBRSP), a discretionary VEDP program that provides grants to localities for site characterization and development. But in previous years, the state dedicated about $1 million to the fund annually. It’s difficult to calculate the cost of developing Virginia’s sites, El Koubi says, as VEDP has only preliminary information for some sites, and the VBRSP wouldn’t bear some costs, like utility infrastructure.
In comparison, Tennessee this year announced nine site development grants that totaled about $7.6 million. In 2021, Tennessee awarded almost $12.8 million in these grants. North Carolina’s Golden LEAF Foundation budgeted $15 million for its site development program this fiscal year.
However, Virginia’s 2022-24 state budget, signed into law in June, included a historic $159 million for the VBRSP to support site development. In former Gov. Ralph Northam’s outgoing budget, he proposed the program receive $150 million. While campaigning in 2021, Youngkin said he would support shifting $200 million in federal stimulus funding toward improving site readiness.
Among the VBRSP’s goals are providing localities with grants to develop new, “high-win potential sites” — properties that can support market demand and are expected to land a big project within 18 months of becoming project-ready. In September, VEDP began reviewing localities’ site-development grant applications. VEDP expects to announce awards in January 2023.
This is not a one-and-done solution, however. Virginia needs to continue allocating funds of this magnitude to site readiness in order to be competitive, El Koubi says.
To the south, North Carolina is chugging ahead on further development. In its budget signed in July, North Carolina launched a megasite fund with an initial $1 million for EDPNC to work with a site selection consulting firm to identify the state’s next megasites. Next year, EDPNC will present up to five potential sites to the legislature for development funding.
A more nebulous problem for Virginia is how it’s perceived by potential investors.
Although the commonwealth’s competitors know it isn’t the case, company executives might not see Virginia as a manufacturing state, North Carolina’s Chung says. “I just know being kind of next door to Virginia for eight years, Virginia’s perception in the market does tend to be heavily dominated by Northern Virginia,” which is driven by the defense contracting and technology sectors.
El Koubi acknowledges the same issue. “I would say that there’s a gap between the reality of Virginia’s strengths as a manufacturing state and the perceptions of Virginia, in part because of the underinvestment in marketing.”
VEDP’s current annual economic development marketing allocation, excluding tourism, is $2.7 million. Meanwhile, in June 2021, VEDP’s North Carolina counter-part launched a $3 million national advertising campaign focused on business recruitment. The EDPNC is set to receive $10 million each year for the next three fiscal years to continue the campaign.
Pittsylvania Economic Development Director Matthew Rowe agrees that companies’ perceptions of Virginia have been slow to change. “I think Virginia’s just now getting into the megasite game,” he says. “I think when a big company’s like, ‘I need a megasite,’ they’re automatically thinking of North Carolina, Kentucky, Tennessee, Georgia, Alabama.”
Gaining recognition and credibility once a state has a site takes time.
While having dinner with one company’s representatives, Rowe asked why they were looking at other Southeastern states when the Southern Virginia Megasite was closer to their customers. They answered that, in the eyes of their board, states that had recently won large projects must be doing something right.
But about 12 months ago, as its site-readiness advanced, the Pittsylvania site began receiving more interest, Rowe says.
Although he’s tight-lipped about the names of interested companies, Rowe hints that the Southern Virginia Megasite could land a deal comparable to Lego: “We literally do helicopter tours probably once a month with name-brand companies that most people would recognize.”
Getting meta
Twenty years ago, artificial intelligence seemed like the stuff of sci-fi films such as “2001: A Space Odyssey” and “The Matrix.” Today, it’s so ubiquitous as to be virtually unremarkable and unnoticeable — integrated into everything from GPS traffic navigation apps on our phones to smart devices in our homes to security scanners at the airport.
In this issue, Virginia Business Associate Editor Courtney Mabeus explores how some of the commonwealth’s largest federal contractors and tech companies are developing this maturing technology for uses such as expediting medical diagnoses and providing real-time intelligence to troops on tomorrow’s battlefields. (See related story, “Artificial intelligence gets real”)
In a way not dissimilar to AI’s journey, by 2042 the metaverse may be passé. But to the average business executive outside the tech realm, the concept can seem a bit bewildering here in 2022, even though it’s getting more and more press lately.
Part of the problem is that there doesn’t appear to be any consensus on the meaning of metaverse. Science fiction gives us an idealized concept of it as a three-dimensional virtual world that would replace the internet and social networks. Instead of shopping by scrolling through a page of images, for instance, you’d stroll through a virtual mall, examining 3D wares, trying on clothes or test-driving cars in VR.
Despite the fact that Facebook Inc. changed its name to Meta Platforms Inc., we’re still a long way from living in the Matrix. Facebook’s metaverse vision so far is a VR network called Horizon Worlds that requires a bulky headset and features legless, cartoonish avatars that look more like characters from “The Sims” than real people. Horizon Worlds is also similar to Second Life, a virtual network that launched in 2003. So far, Horizon Worlds’ numbers have been underwhelming, The Wall Street Journal reported, with fewer than 200,000 users as of mid-October — less than the population of Sioux Falls, South Dakota.
Additionally, it’s unlikely that current VR rigs, which can cause motion sickness and neck pain in some users, will become de rigueur in offices and homes — especially considering that Meta’s latest VR headset, the Quest Pro, debuted in October at $1,500 a pop.
That said, as remote work continues to grow, making it possible to employ workers from practically anywhere, the demand for virtual and augmented (or mixed) reality platforms and technologies will grow, and more companies and products will arise to meet those needs.
As with any tech, there will be winners and losers, and some will be more comfortable adopting it than others.
Today, we think of digital natives as younger millennials, Gen Zers and members of Generation Alpha, people who know only a hyperconnected world of the internet and smartphones. But the metaverse will speak to a slightly different skill set.
The people who will be most comfortable navigating 3D interfaces are likely to be video gamers. And before you dismiss that population as nerdy basement dwellers, consider that gaming is a $60 billion industry in the U.S. alone, with more than 215 million Americans actively playing video games, according to the Washington, D.C.-based Entertainment Software Association.
About 48% of gamers are women and girls now. And while most children play video games, more than 70% of all video gamers are over age 18. About 36% of gamers are between ages 18 and 34, and 26% are between ages 36 and 54. The numbers drop dramatically, however, among people ages 55 and older, who could stand to be left behind or at a considerable disadvantage in navigating a vastly different cyberworld than the one we know today. There’s plenty of time yet to deal with that problem, though.
I believe Web3 and future social media and work platforms may well feature 3D environments and mixed reality objects, but I think it’s also possible that the American innovators who will create the best of those haven’t yet joined the workforce.
Confident pronouncements from the Mark Zuckerbergs of the world aside, be skeptical of those who claim the ability to definitively predict the future of the metaverse. And be more so of those spouting empty buzzwords and asking you to invest your money in it.
Return on investment
Christina Fleming embarked upon a career in marketing with the goal of getting an executive MBA degree, but other commitments kept getting in the way.
She got married, had two children and moved up the corporate ladder for 26 years, rising to chief marketing officer at Blackboard Inc., a global education technology company that was based in Reston. In April, she launched her own company, Monarch Performance Marketing.
“It was just something that I kept putting off, but I always knew I wanted to do it,” Fleming says. “So, towards the end of last year, I made the decision to go ahead and pursue my MBA. I really felt it would be important and helpful to me as a business leader.”
She looked at executive MBA programs that were within driving distance of her Laurel, Maryland, home, taught in-person and could be completed in under two years. She chose the one at William & Mary’s Raymond A. Mason School of Business and enrolled in fall 2021 as one of 13 students in her cohort. Now about halfway through the program, Fleming commutes every other weekend to Williamsburg for classes.
“I was learning every day in the moment and accumulating all sorts of skills [at work], but what the MBA has done is given me an opportunity to really step back and look at how all these aspects of business and the economy are connected,” she says. “It just provides this solid foundation in which I believe I can become a better leader.”
Executive education programs are designed for business professionals like Fleming who have managerial or executive- level experience and want to improve their knowledge and skills so they can advance in their careers. The classes help them stay on top of the latest industry trends, expand their networks and get real-world experience working on projects.
Seven Virginia public universities offer some form of executive education. Programs range from traditional MBA degree programs at W&M, George Mason University, James Madison University, the University of Virginia and Virginia Commonwealth University to shorter certificate programs offered at George Mason University and Virginia Tech. GMU offers customized programs for businesses and organizations, as do U.Va., Virginia Tech and Old Dominion University.
One of the prevailing trends is shorter and more convenient MBA programs, in response to student demand.
William & Mary has offered executive MBA degrees for more than 40 years. Three years ago, the school sought feedback from W&M’s prospective students and alumni — as well as from alumni of other executive education programs across the country and employers, says Ken White, associate dean of W&M’s MBA and executive programs.
What they heard was that students thought MBA programs took too long and that they wanted a certificate option that took less than two years. Respondents also wanted leadership coaching and the possibility of international business experience, White says.
Student feedback helped reshape W&M’s program, which is now 18 months long with eight-hour, in-person classes every other Friday and Saturday.
Global and national perspectives — provided most often by taking students to other countries and introducing them to corporate leaders — are increasingly important, too.
W&M students spend a short residency in Washington, D.C., and go abroad twice to study and meet with business leaders. This year, they’ll go to Greece and South Africa.
“That was another piece that we got in our research,” White says. “People were saying, ‘You know, we need to know a little bit more about the federal government and how it affects business.’ So, we have the two global immersions, and then we have a D.C. residency where the class goes up there for not quite a week.”
William & Mary isn’t alone in offering global travel opportunities to executive MBA students.
George Mason’s MBA Global Residency is a weeklong international study tour. Past residences have included Chile, China, Central Europe and Western Europe.
VCU‘s program includes a roughly 10-day trip abroad, usually to partner universities in Central and South America or Europe. Naomi Boyd, VCU’s business school dean, says faculty look at who’s in a cohort, pick a location and build an agenda that can include projects and case studies.
As part of JMU’s MBA program, students can take an optional 7- to 10-day trip abroad to countries such as China, Portugal, Argentina, Chile, Germany and Vietnam, making visits to companies like Hyundai Motor Co., Maersk or Rémy Martin.
Speeding up
At the University of Virginia’s Darden School of Business, MBA students have two nonresidential executive MBA tracks: the executive and global executive programs. Both take 21 months and are hybrid, with in-person sessions held at Darden’s D.C. Metro space in Rosslyn. The other classes are offered remotely, including live online courses and self-paced activities.
Executive students participate in one international residency with the option of adding others, while global MBA students participate in four residencies outside the United States. These typically include a mix of company visits, talks with industry leaders, meetings with executives and cultural excursions. U.Va. also offers a full-time residential MBA program and a part-time MBA option with more scheduling flexibility.
Students in both U.Va. executive MBA programs also participate in two weeklong leadership residencies in Charlottesville on the Darden grounds.
VCU used to offer a two-year MBA program, but it has now shortened the time to get the degree to 17 months, with classes held on alternating weekends, Boyd says.
James Madison University’s College of Business offers an MBA with an executive leadership concentration over 28 months, a longer period than other universities, but it’s geared toward student accessibility. Most of the classes are held online, with in-person residencies that meet on a Saturday once every other month in Tysons. (JMU’s largest alumni populations are concentrated in the Richmond and D.C. areas.)
“It gives us somewhat of a regional tie for people interested in the program in the D.C. metro area, and then maybe some folks who have connections to the institution who live outside of there can still participate in our program,” says Michael Prior, the MBA program’s director of marketing.
Universities also have started offering even shorter options — typically for executives in pursuit of a certificate instead of a master’s degree.
The University of Richmond, a private university, offers a 14-week “mini-MBA” program, for example.
U.Va. offers The Executive Program, a six-month, hybrid advanced management certificate program that costs about $43,950 — less than a third the cost of the Darden executive MBA tracks, which cost $172,000 to $183,800. Virtual sessions involve a business challenge project, and faculty consultation and one-to-one coaching are included.
George Mason’s School of Business offers a traditional MBA program with accelerated or part-time options, and the school also targets specific specialties, including data and analytics. GMU’s hybrid executive education courses run five weeks each, and students earn a badge of certification. Executive specialties include diversity, equity and inclusion; marketing; risk; and sustainability.
GMU also offers a two-day real estate analytics program, and its faculty can customize offerings for organizations on topics such as government contracting, data analytics and real estate.
Virginia Tech’s Pamplin College of Business in the past has hosted cybersecurity risk series for executives and board members, with special focuses on entrepreneurship and integrated security in event management. Tech currently offers an executive data analytics certificate program.
Old Dominion University doesn’t offer an MBA specifically for executives, but its School of Continuing Education provides customized training for employers who don’t want to put employees “through a full-blown degree,” says Renee Felts, its assistant vice president for academic initiatives and continuing education.
Faculty can create a crash course on anything from soft skills to advances in cybersecurity. Classes can be taught in person, online or via a hybrid of the two. Fees depend on what’s created, and employers may pick up the tab.
“We feel like it’s a well-kept secret,” Felts says.
Executive education doesn’t come cheap, although the payoff can be career advancement and a bigger paycheck. Prices for these programs currently range from $995 for George Mason’s two-day real estate analytics course to $183,000 for U.Va.’s Global Executive MBA. Financial help is often available through the universities or an employer.
Caitlyn Read was associate director for communications at James Madison when she decided to apply for an executive MBA several years ago. She looked at several but says it made financial sense to enroll in JMU’s program since the university, as her employer, would pay for it.
“Our cohort was small, around 20 people. When it’s that small, you rely on each other for a lot. Some of my classmates are still mentors for career growth, some on how to navigate my career,” she says. “We still stay very close.”
Read graduated from JMU’s executive MBA program in 2018 and in 2020 became the university’s spokesperson and director of communications. She’s now its manager for state government relations.
Getting facetime
One important aspect of MBA programs that has remained the same is networking, even in the post-pandemic era.
A report released in May by UNICON, a global consortium of business-school-based executive education organizations, found that the pandemic opened people’s eyes to what could be accomplished in online MBA classes, but there’s still a strong preference for at least some in-person classes.
W&M’s executive MBA program, like those at other Virginia public universities, attracts students with anywhere from eight to 20 years of work experience who have C-suite ambitions. Others have started their own businesses or are preparing to do so, White says.
At the start of their education, students are paired with a certified leadership coach, whom they meet with regularly throughout the program, and they have access to executive partners — about 100 semiretired or retired executives who serve as additional advisers and mentors.
“The Executive Partners program is just a tremendous wealth of support and insight that we have at our fingertips anytime we want it,” Fleming says. “I can reach out to an executive within the marketing arena and learn from his or her experiences [and] have conversations. For example, we had one class where a group of executive partners came in and they did breakout discussions with us on a particular case. We spent time with them in small groups getting their perspective, and it was really exciting.”
VCU students are required to attend in person the first weekend of each month, then have the option of attending in person or online. During their summer semesters, they have the option to add a concentration in either corporate finance or health care management.
“One of the big benefits of the program is the networking,” Boyd says. “We feel it is really important to be integrated into their cohort.”
Although Fleming left Blackboard to start her own business before entering William & Mary’s MBA program, White notes that most of the university’s executive MBA students receive promotions or other career opportunities after earning their degrees.
“It’s very rare,” White says, “for someone to complete the program and have the same position at the end that they did in the beginning.”
Virginia Society of CPAs’ 2023 Interviews
SOUTHWEST VIRGINIA
Tara E. Adams, CPA
Partner | Adams & Delp PC | Wytheville
What are the benefits of living and working in Southwest Virginia?
I love the mountain scenery, access to so many outdoor activities and most of all the sense of community you get in the smaller cities and towns.
How is the economy faring in your region?
The economy in Southwest Virginia is slowly recovering from the pandemic, with businesses opening back up and people starting to travel. As with anywhere, inflation, labor shortages and supply chain issues are making the recovery more difficult. Labor shortages are still a significant struggle, especially in the food and retail industries.
What local industry do you think has potential for growth?
Tourism has real potential to grow in Southwest Virginia, with enjoyable places to visit that are attractive and more affordable destinations.
What’s the biggest challenge to doing business in your area?
It can be difficult to attract new, younger talent for the workforce to Southwest Virginia, due to the more rural nature of the area.
Are housing costs a major issue in your region?
Housing costs have risen in the area, making it more difficult for people to be able to afford a home and there are fewer homes to choose from.
What are the major factors that have had the biggest impact on attracting business to your region?
State and local initiatives, as well as the constant efforts of local governments to lure business to the area and keep a steady pace of growth, have truly paid off.
What are the top obstacles to your region’s economic success?
The region’s economic success has continued to grow over the past decades, with the necessary infrastructure being added to attract new businesses. Labor shortages and an increased minimum wage can be difficult to sustain, especially for smaller businesses in the area.
HAMPTON ROADS
Justin P. Greene, CPA
Chief Financial Officer | Liberty Live Church | Hampton
What are the benefits of living and working in Hampton Roads?
One of my favorite things about Hampton Roads is the significant part this region has played in U.S. history, plus having quick access to cities, beaches, rural areas.
How is the economy faring in your region?
Having all branches of the military, Newport News Shipbuilding, NASA and many other large organizations insulates our region from extreme economic swings. However, inflation impacts on wages, and operational costs are starting to be felt here like everywhere else.
What local industry/sector do you think has potential for growth?
The tech industry has tremendous potential for growth. There are many companies in our region developing advanced systems that are preparing us for the future.
What’s the biggest challenge to doing business in your area?
Finding and retaining staff is a major challenge. Housing affordability and achieving a certain standard of living can be challenging for young employees in our region.
Has your area recovered from the pandemic, and how is it faring with labor shortages?
While many organizations continue to have an abundance of work, labor shortages are an ongoing challenge affecting every industry.
Are housing costs a major issue in your region?
Housing continues to be a major issue. Even though home values are starting to adjust down somewhat, the recent increase in interest rates keeps affordability out of reach for many.
What are the top two factors that have had the biggest impact on attracting business to your region?
The region provides access to a large population with many resources, including so many colleges and universities to draw from for future staffing.
What are the top two obstacles to your region’s economic success?
Cost of living and availability of housing.
NORTHERN VIRGINIA
Charles F. Helme III, CPA
Managing Principal | Thompson Greenspon | Fairfax
What are the benefits of living and working in Northern Virginia?
The large variety of things to do — cultural activities in D.C. and surrounding area, outdoor activities in mountains to the west, and beaches to the east
How is the economy faring in Northern Virginia?
Overall, very good; however many employers continue to be constrained by labor shortages. Supply chain issues have also affected certain areas of the economy.
What are the biggest challenges to doing business in your area?
High cost of housing and labor. People want to live here, creating demand for housing and putting upward pressure on housing costs. And the increase in interest rates is creating a pause for many buyers — having to either look for cheaper alternatives or save more to qualify for a mortgage.
Has your area recovered from the pandemic, and how is it faring with labor shortages?
We are coping with labor shortages. For businesses that have the ability, attracting remote workers from other areas has helped alleviate the excess labor demands, but not all businesses can do this. Supply chain issues seem to be getting better, but challenges remain.
What factors have had the biggest impact on attracting business to your region?
Continued growth of the economy in our region and higher per capita wealth. Larger companies from across the country want to penetrate our market, and even multinational companies have moved offices here to gain market share or to have a presence in the capital region.
Melanie E. Randall, CPA
Treasurer | McKinney & Co. | Ashland
What are the benefits of living and working in Central Virginia?
The area has much to offer the business community, as well as the comforts of everyday life. You can find any niche to fit your personal and professional tastes. The region is home to major players in financial services, manufacturing, nonprofits and logistics.
How is the economy faring in your region?
The region is doing well right now. The unemployment rate is low and the housing market, though slowing down a bit, is still strong. I don’t know about other areas in the state, but the incentive packages the Central Virginia localities present to potential businesses have helped bring economic growth to the region.
What local industry/sector do you think has potential for growth?
Biotechnology, manufacturing and logistics have great potential here. The last two years have added greater focus on the biotech industry and the need for more research. With current supply chain issues, now is the time to expand our manufacturing capabilities. Having Richmond Marine Terminal and interstates 95, 295, 85 and 64, this is a great location for distribution centers.
What’s the biggest challenge to doing business in your area?
Skilled labor
Has your region recovered from the pandemic, and how is it faring with labor shortages?
The region has recovered mostly. The exception would be restaurant and retail staff. Hopefully, they will rebound during the holiday season.
Are housing costs a major issue in your region?
Housing costs are rising, but it seems as if wages are beginning to increase, which helps.
What are the top two factors that have had the biggest impact on attracting business to your region?
Local economic incentives, such as tax rate reductions and bond financing, and a large workforce footprint
What are the top two obstacles to your region’s economic success?
The uncertainty of inflation and interest rate increases.
SHENANDOAH VALLEY
Angela L. Rudolph-Wiseman, CPA
Principal | Rutherford & Johnson PC | Winchester
How is the economy faring in the Shenandoah Valley?
The local economy is stable, although showing indications of potential slowdown. A large area employer tied to the construction industry recently announced layoffs in anticipation of a possible economic downturn. Agriculture, specifically the apple crop, is a big part of the Shenandoah Valley economy. The favorable weather and precipitation have made a good growing season.
What local industry has potential for growth?
Locally, the bioscience industry has growth potential. The Shenandoah Valley has ideal locations for manufacturing facilities.
Has your area recovered from the pandemic, and how is it faring with labor shortages?
Our area has continued recovery from the pandemic, but we aren’t quite there yet. Outdoor festivals and events have been booming this year, exceeding 2019 levels of dollars spent and attendance. Labor shortages are a very real thing, particularly for restaurants and service industries.
What’s the biggest challenge to doing business in your area?
Finding, hiring and retaining qualified talent. Inflation has made it particularly difficult to adequately compensate employees while trying to balance prices to end consumers.
Are housing costs a major issue in your region?
Absolutely. Median home sales prices are up 12.6% in 2022. The scarcity of properties for sale and the increase in interest rates have priced many home buyers out of the market.
What factors have had the biggest impact on attracting business to your region?
Despite local housing challenges, the cost of living is still approximately one-third lower than the D.C. metro area, making the Shenandoah Valley attractive to live in. The proximity to the larger cities allows for a lower-cost location and offers the convenience of international airports and other infrastructure within a short distance.
Read the 2023 VSCPA survey results and more.
StartVirginia: Nov. 2022 Heard around Virginia
Virginia Tech‘s Apex Center for Entrepreneurs has received a $500,000 donation from Apex Systems co-founder Win Sheridan. A 1994 Tech graduate, Sheridan made the donation to help the Apex Center engage with student entrepreneurs through programming, networking and funding. Launched in 2014, the Apex Center is named in recognition of a $5 million commitment from Sheridan and fellow Virginia Tech alumni and Apex co-founders Brian Callaghan, Ted Hanson and Jeff Veatch. Based in Glen Allen, Apex Systems is a subsidiary of Henrico County Fortune 1000 information technology company ASGN Inc., which acquired Apex in 2012. Sheridan is now a director of ASGN Inc., and together it and Apex form one of the nation’s largest IT staffing services. (VirginiaBusiness.com)
Bricks & Minifigs, an aftermarket, Lego-licensed retailer that will buy, sell and trade Lego sets, is coming to Henrico County. Husband-and-wife team Paul and Carrie Indelicato plan to open the 2,500-square-foot shop in December near West Broad Street and Cox Road. The brand opened its original store in 2010 as the first Lego reseller in the country. It has since expanded to include 51 stores across the U.S. and Canada. The Henrico location will be one of Virginia’s first two franchises; the company’s website does not say where in the state the other location will be. (Richmond Times-Dispatch)
Enabled Intelligence Inc. is investing $1.4 million to expand its Falls Church headquarters, adding 117 jobs, Gov. Glenn Youngkin announced Sept. 21. The company provides data-labeling services to enable artificial intelligence operations. Its expansion will add more than 10,000 square feet of classified and unclassified office space to its location at 6400 Arlington Blvd. Founded in 2020, Enabled Intelligence works with multiple forms of data including satellite imagery, radar, text, speech, audio and video. The company creates training and testing data sets and builds AI technologies for defense, intelligence, law enforcement and other federal government missions including classified programs. (VirginiaBusiness.com)
Rivus Pharmaceuticals Inc., a clinical-stage biopharmaceutical company based in Charlottesville and focused on cardiometabolic health, recently completed a $132 million Series B financing round. The funding was led by Boston’s RA Capital Management with participation from Boston’s Bain Capital Life Sciences, Switzerland’s BB Biotech AG and existing investors Longitude Capital of Menlo Park, California, as well as Medicxi and RxCapital, both based in the U.K. The new investment brings Rivus’ lifetime funding to $167 million, according to Crunchbase. (Richmond Inno)
PEOPLE
Winchester-based Passage, a platform for creating and connecting metaverse experiences, announced Caleb Applegate as its CEO Sept. 28. Applegate will oversee the company’s go-to-market strategy, build strategic partnerships and define its product roadmap with support from new Passage Chief of Staff Bryana Kortendick. Applegate most recently served as chief operating officer of nonfungible token platform Enjin. He was also co-owner of Mineplex, a Minecraft gaming server, and moonlights as a filmmaker. Kortendick also joins from Enjin, where she served as vice president of operations and communications. (Passage news release)
Rosslyn-based Shift5, an operational technology data and cybersecurity company for planes, trains and tanks, named Robert Sison as the company’s first chief financial officer in early October. Sison held the same role at California-based BigPanda Inc. and helped that company grow to more than $1 billion in market capitalization. He’s also worked as vice president for finance for Washington-based Tanium Inc. and at California-based Electronic Arts, where he worked his way up to vice president of investor relations. In February, Shift5 said it raised $50 million in a Series B Funding round, which followed a $20 million
Series A round in fall 2021.
(Shift5 news release; ARL Now)