After two years of severe staff shortages at health care facilities nationwide, conditions at the big three hospital systems in Hampton Roads are improving.
“The last two years have been some of the most challenging times for nurses in our lifetime,” says Cassie Lewis, chief nursing and quality officer for Bon Secours’ Hampton Roads market. “No one has an overabundance of nurses,” she notes, but Bon Secours was able to hire 150 nurses during a three-month period earlier this year. As of August, its job vacancy rate had dropped by 25%, compared with the prior six months.
“All my metrics are moving in the right direction,” Lewis says.
To keep metrics positive, though, hospitals, like just about every other business in America, have had to increase pay substantially, with merit raises, bonuses and cash rewards now an expected — even standard — part of compensation. In the past two years alone, for example, Sentara Healthcare says it has invested $310 million in covering the added costs of attracting and keeping health care workers.
A big chunk of such investments has gone toward benefits. Among numerous upgrades, Sentara now offers its nearly 30,000 workers a paid personal day, which 2,500 employees already have taken. It also has instituted a program that pays as much as $400 a month toward student loans, with more than 3,000 employees now enrolled.
With 9,500 employees, Riverside Health System has added a personal day and started a child care subsidy. It also offers money toward college, a benefit that has “been very well received,” says Jesse Goodrich, the health care system’s senior vice president of human resources. And at Bon Secours, which employs about 11,500 people in Virginia, paid parental leave has quadrupled from two weeks to eight weeks, and nurses are given a huge say in which facility they work at, a policy change that has received “an overwhelmingly positive” response, Lewis says.
With Virginia hospitals having lost some nurses during the height of the pandemic to better-paying travel nursing jobs or lower-stress private practices, competitive compensation is key to hospitals staying staffed — but so is listening to employees, executives say.
Goodrich notes that Riverside regularly surveys employees to “find the pebbles in their shoes.” Goodrich and Lewis insist that creating a positive workplace — even more than pay or benefits — is what ultimately attracts and retains employees.
“Health care is all about relationships,” says Goodrich, while Lewis says that “money is not what any nurse is in the business for.”
Aside from patient-level staffing, the three health systems have made some changes at the top. Most notably, in September, former Sentara Health Plans President Dennis Matheis succeeded Howard P. Kern as Sentara Healthcare’s new president and CEO. In September, Bill Downey announced he would step down as CEO at the end of 2022, with Dr. Michael Dacey, president and chief operating officer, succeeding Downey on Jan. 1. Allan Parrott, former CEO of Tidewater Fleet Supply LLC, was elected chair of Sentara’s board in June. And last fall, Pat Davis-Hagens came from Bon Secours Mercy Health‘s The Jewish Hospital in Ohio to serve as Bon Secours’ Hampton Roads market president.
Sentara’s upcoming initiatives include increased community outreach, adding community clinics in affordable housing communities; a health care bus; and a $5 million investment in 30 community organizations involved in eliminating barriers to health and human services.
Riverside Behavioral Health Center’s emergency department is set to open in Newport News late next year, and in Williamsburg, the hospital system has broken ground on a 67,000-square-foot medical office building.
The system’s largest undertaking, though, will be Riverside Smithfield Hospital, a project anticipated to cost $100 million. Construction of the 50-bed acute-care hospital in Isle of Wight County is expected to begin this fall, with an opening date of late 2025 or early 2026.
Norfolk leaders have high hopes for redevelopment projects that will reposition older properties — from an aging mall to an underused marine terminal — to better match modern market demands.
“We are always asking, ‘What can we do that allows for some sort of creative transformation to actually happen?’” says Sean Washington, the city’s acting director of economic development.
Washington was appointed acting director of economic development in August after former director Jared Chalk left to become chief business development officer at the Hampton Roads Alliance.
Both Chalk and Washington have been closely involved in the city’s efforts to redevelop the Military Circle Mall retail complex.
Norfolk’s economic development authority purchased the mall and an adjacent hotel in April 2020 at a combined cost of $13.4 million. The EDA plans to demolish the mall in early 2023, as Norfolk City Council members continue to wrestle with what the property’s future holds.
Located near interstates 64 and 264, and near the $93 million Sentara Brock Cancer Center that opened in 2020, the mall is primed for redevelopment.
“With that being the high ground of the city, there is already an abundance of retail activity in that corridor, and great surrounding neighborhoods,” Washington says. “When you think about all those variables, it’s important for the city to be very strategic about what that area is going to look like in the coming decades.”
After soliciting proposals in late 2020 to redevelop the 74-acre complex, the city announced in August 2021 it was considering proposals from three development groups.
Progress then stalled, to the degree that the EDA returned deposits to developers in June, an acknowledgement of the longer-than-normal selection process. Then, in July, city leaders confirmed that Norfolk had entered “preliminary negotiations” with one of the three finalists — Wellness Circle LLC, the proposal from music superstar Pharrell Williams’ team — but they still maintain that no final selection has been made.
“Like any big site like this, it’s going to take time,” says Chalk, who was interviewed for this story before he left his position as economic development director. “What we are trying to do is not build something like a mall with a 20- or 30-year shelf life. We are trying to create a district that is going to grow and contract with the economies.”
In addition to Williams, the Wellness Circle partnership includes concert company Live Nation and Virginia Beach developers Armada Hoffler Properties and Venture Realty Group. Their proposal — valued at $1.1 billion in May 2021 — includes a 15,000-plus-seat arena, 1 million square feet of office space, a 200-room hotel, retail and restaurant space, green space and residential development, including market-rate and low-income multifamily housing, as well as townhomes.
Wellness Circle would also include a second location of Williams’ independent Yellowhab elementary school, serving children who qualify for free or reduced lunch. In fall 2021, a Yellowhab pilot school opened in the city’s Ghent neighborhood, and Williams has said he hopes to spread the concept beyond Virginia to New York and Arizona.
Representatives from the Wellness Circle partnership declined to comment for this story, citing ongoing negotiations with the city.
A second finalist, Crossroads Partnership, includes Virginia Beach-based S.B. Ballard Construction Co. and the real estate company owned by Pro Football Hall of Famer Emmitt Smith. Crossroads’ $900 million proposal includes a 15,000-seat arena, parks and trails, an indoor sports complex, a 128-room hotel, medical offices and residential and retail space. Ballard representatives also declined comment.
A third proposal, submitted by Norfolk MC Associates LLC, which includes Virginia Beach-based hospitality company Gold Key | PHR and The Franklin Johnston Group, a Virginia Beach development company, proposes an 8,000-seat outdoor amphitheater instead of an arena, in addition to a hotel, retail, housing, office and green space. Dubbed “The Well,” this proposal was valued at $663 million when submitted. Bryan Cuffee, a vice president with Gold Key | PHR, which is behind Virginia Beach’s Cavalier Resort and The Main hotel in Norfolk, says the plan would require the least amount of investment from the city.
All three proposals involve the use of tax-increment financing, which commits future tax revenues generated by a development to help finance it, but building an arena could require additional public participation for infrastructure and other costs.
“Although the city has continued to express interest in an arena, at the end of the day the decision will be determined by the economics and financing, which will be difficult for an arena proposal to achieve,” Cuffee says.
Mike Hopkins, managing director of Fairwinds Landing LLC, says construction is expected to start next year on a $100 million maritime operations and logistics center at Lambert’s Point Docks. Photo by Mark Rhodes
High energy
Adjacent to Norfolk Southern Corp.’s coal terminal on the Elizabeth River is Fairwinds Landing, a new project at the Lambert’s Point Docks. Plans call for a $100 million maritime operations and logistics center to support the regional offshore wind, defense and transportation industries. Fairwinds Landing LLC, an entity linked to Virginia Beach-based The Miller Group, has a 30-year lease on the property owned by Norfolk Southern and began its occupancy Aug. 1.
Mike Hopkins, managing director for Fairwinds Landing LLC, says construction on Phase 1 of the project is expected to begin in early 2023, and his group is in negotiations with a “marquee” tenant in the offshore wind industry, with an announcement expected soon.
Tax credits made available to the renewable energy industry through the newly passed federal Inflation Reduction Act, which promises $369 billion in federal energy and climate spending, could help move the development along faster, Hopkins says.
“In our discussions with equipment manufacturers in offshore wind looking to come into the U.S., they have been kind of waiting to see how these tax incentives were going to break,” he notes. “I think it will spur some activity now that there is more favorable tax treatment for projects and manufacturers.”
In addition to supporting wind energy projects along the mid-Atlantic, such as Dominion Energy Inc.’s $9.8 billion Coastal Virginia Offshore Wind farm, Hopkins says, “we have had inquiries from companies who will be supporting offshore wind projects in the Northeast.”
The 111-acre Fairwinds Landing development, he adds, will have strong linkages with the offshore wind-focused redevelopment of the Portsmouth Marine Terminal just across the river, where Siemens Gamesa Renewable Energy S.A. is building the first U.S. factory to manufacture turbine blades for the massive offshore wind farms.
“We believe that synergy will have a ripple effect throughout the region for economic development to support the offshore wind industry in general, particularly given the strengths the area has with shipbuilding and ship repair, which have a lot of overlap with offshore wind,” Hopkins says.
Gaming gets rolling
Another waterfront area primed for redevelopment is expected to invigorate the city’s tourism sector.
The $500 million HeadWaters Resort & Casino is being developed by the Pamunkey Indian Tribe Gaming Authority on 13.4 acres along the Elizabeth River adjacent to Harbor Park Stadium, home of the Norfolk Tides Minor League Baseball team.
“It’s a piece of city property that is completely underutilized that will be not only a major generator of revenue for the city, but also a catalyst for additional economic development in the whole area,” says Jay Smith, a spokesman for the casino.
In September, the Pamunkey Indian Tribe submitted a site plan to the city to build a temporary casino on part of the property. The tribe expects to purchase the land and execute a development agreement on the property soon, according to Smith. The Pamunkey initially attempted to gain approval for a temporary casino at the city’s Harbor Park baseball stadium, but a paperwork error led city officials to table a vote in July.
The temporary facility will have all of the gaming activities of the eventual casino — including slot machines and table games — but on a smaller scale, Smith says. Construction of the temporary casino is expected to take six months and it will open after the tribe receives its gaming license from the Virginia Lottery.
Meanwhile, construction of the permanent casino and hotel will take 18 to 24 months. A groundbreaking date has not been set, but Smith anticipates a 2024 opening. Both the temporary casino and the permanent facility are expected to generate more than $30 million per year in gaming and sales taxes for the city.
Smith and city officials say the resort will be an important boost for city tourism, projected to attract 6.2 million visitors per year.
And it won’t be the only gaming facility in the area. About seven miles from the HeadWaters Casino location, the $300 million Rivers Casino Portsmouth owned by Rush Street Gaming is under construction, with a projected early 2023 opening.
Smith and Chalk both say the HeadWaters project is a higher-end destination that they expect will draw overnight visitors from a wide geographic area.
Chalk points to the other attractions Norfolk has developed near its waterfront — including the cruise terminal, the Nauticus maritime museum and the Waterside District’s restaurants, hotels and entertainment venues — as “a collection of catalytic assets” that will help draw tourists from outside of Hampton Roads.
To the degree that happens, the casino will have a net-positive economic impact on the region on top of the estimated new tax revenues for the city, says Vinod Agarwal, deputy director of the Dragas Center for Economic Analysis and Policy at Old Dominion University. However, an analysis the center released in 2021 predicts that the Portsmouth and Norfolk casinos will draw the vast majority of their business from in-state customers.
Agarwal says Portsmouth and Norfolk can expect to lure some customers from northeast North Carolina, and as long as voters in the Richmond area don’t approve a casino in 2023, the two resorts will also draw visitors from Northern Virginia and other markets that might otherwise drive to Richmond.
But “the magnitudes of those flows are estimated to be very small,” Agarwal says, noting that one positive for taxpayers is that neither facility is publicly supported. “The cities of Norfolk and Portsmouth will gain, but cities close by will lose some economic impact because the expenditures on leisure activities in those cities will be lower.”
However, Washington says there’s great value in the boost the HeadWaters project will bring to Norfolk’s overall tourism profile.
“We have a great opportunity to tell a bigger story,” he says. “It sends a larger message outside of our region, and even outside of the state, that attractions like this can exist here.”
In addition to the redevelopment projects underway, Chalk also points to the city’s success in encouraging existing employers to expand. In April, Fairfax-based military contractor WR Systems announced it would expand its Norfolk campus, a move that is expected to create 200 jobs, according to the Virginia Economic Development Partnership. Also in April, medical device company Embody Inc. announced a $5 million planned expansion to its facilities at Innovation Research Park at ODU, expected to add 92 jobs.
And after a two-year pause due to the pandemic, the first cruise ship departed from Norfolk’s Half Moone Cruise and Celebration Center in May, kicking off what Chalk says has been the city’s busiest-ever cruise season.
This combination of tourism and industrial assets, along with Norfolk’s status as the largest compact urban center in the Hampton Roads region, gives the city a host of tools as it seeks to secure its economic future, Washington says.
“That’s what adds that additional character to our city. There’s always going to be a certain end product that you can’t find anywhere else in this region.”
Norfolk at a glance
Located at the mouth of the Chesapeake Bay, Norfolk’s vast waterfront acreage has earned it the nickname of “the Mermaid City.” Home to Naval Station Norfolk — the world’s largest naval base — the city has capitalized on its strategic location as a hub of both defense and international shipping. Over the years, Norfolk has grown beyond its maritime roots, developing a vibrant food and entertainment scene.
Population 238,005
Top employers
U.S. Department of Defense (10,000-plus employees)
Old Dominion University (2,500 to 4,999 employees)
Major attractions
Downtown Norfolk offers numerous entertainment options, from the Nauticus maritime museum and Battleship Wisconsin to the Waterside District‘s restaurants. The nationally recognized Chrysler Museum of Art straddles the border between downtown and the historic Ghent neighborhood.
Top convention hotels
Sheraton Norfolk Waterside Hotel
– 466 rooms, 46,000 square feet
of event space
Norfolk Waterside Marriott –
405 rooms, 43,683 square feet
of event space
Hilton Norfolk The Main –
300 rooms, 61,824 square feet
of event space
Professional sports
Norfolk Tides — Minor League
Baseball (Baltimore Orioles
affiliate)
Norfolk Admirals — East Coast
Hockey League
On the horizon
The $500 million HeadWaters Resort & Casino expects to begin constructing a temporary gaming facility in late 2022. Norfolk also plans a multidecade makeover of Military Circle Mall into an entertainment and employment district that could include a major new arena.
Once again, Virginia is a significant factor in this year’s national electoral playing field, in which Democrats are jockeying to stay in power and Republicans are anticipated to make midterm gains.
Three congressional districts in the commonwealth — all held by Democratic female incumbents — are considered vulnerable to the GOP by differing degrees.
The competitive races in Virginia’s 2nd, 7th and 10th congressional districts not only will determine which party will hold the majority of the state’s 11 newly redrawn districts, but whether Republicans can regain control in the U.S. House of Representatives.
In Hampton Roads, Democratic incumbent U.S. Rep. Elaine Luria is running for re-election against Republican state Sen. Jennifer Kiggans in the 2nd District. Luria’s prominence as part of the Jan. 6 congressional investigation has amplified her role at the Capitol but also made her more of a target, especially after Democratic-leaning parts of Norfolk were drawn out of the district after the 2020 U.S. Census.
The University of Virginia’s Center for Politics ranked the Kiggans-Luria race as a toss-up in late August, and the competitive 7th District was deemed “leans Democratic,” favoring incumbent U.S. Rep. Abigail Spanberger, who is running against Republican Yesli Vega, a Prince William County supervisor and auxiliary deputy with the county sheriff’s office. The 2021 redrawing of Virginia’s districts shifted Spanberger’s district to the north, removing Richmond’s suburbs and including Fredericksburg and the counties of Prince William, Stafford, Culpeper, Orange and Greene, among others.
Democratic incumbent U.S. Rep. Abigail Spanberger is running for her third term in the newly redrawn 7th District. Photo by Tom Williams/CQ Roll Call via AP Images
Finally, there’s Northern Virginia’s 10th District, where Democratic incumbent U.S. Rep. Jennifer Wexton is defending a seat she flipped in 2018. Wexton’s opponent is Hung Cao, a retired U.S. Navy captain who emerged from a crowded GOP primary of 10 prospective challengers. It’s not likely to flip, state political analysts say, but if it does, it would likely signal a massive Republican wave. Think 2014, when the GOP won 247 seats in the House of Representatives — a 59-seat majority — during Barack Obama’s last term as president.
“Virginia’s interesting in terms of the [potential GOP] wave,” says A.J. Nolte, assistant professor in the Robertson School of Government at Virginia Beach’s Regent University. “If you think about [a] beach analogy, if Luria wins, Democrats aren’t even getting their toes wet. If Hung Cao wins, they probably didn’t spend enough money on flood insurance.”
August polling in Virginia showed Spanberger with a 5-point edge over Vega, and Luria also leading Kiggans by 5 points.
National headwinds
Earlier in the year, the conventional wisdom viewed a GOP sweep of the House and Senate this fall as increasingly likely, amid low approval ratings plaguing President Joe Biden, gas exceeding $5 a gallon and inflation hitting its highest rate in four decades. Now, that outcome is less sure, political observers note.
The U.S. Supreme Court’s June ruling to overturn Roe vs. Wade, leaving many states without access to legalized abortion due to state trigger laws, has energized Democratic and some independent voters who want to see a Democratic-controlled Congress pass federal legislation to allow abortions. Biden and House Democrats sought to pass laws this year, but the tightly controlled Senate — as well as a filibuster rule that required a 60-vote majority to enact legislation — prevented it.
But after that predicted failure, gas prices declined below $3.50 and Biden notched some successes: pledging to forgive up to $20,000 in student loans for Pell Grant recipients and other people with federal loans due, as well as passing inflation reduction, infrastructure and semiconductor chips spending bills.
Another possible factor governing voter enthusiasm: The raid on Mar-a-Lago, in which FBI agents recovered thousands of classified documents at former President Donald Trump’s Florida resort in August as part of an investigation into violations of the Espionage Act, obstruction of justice and criminal handling of government records. Although it’s not clear that Trump or anyone else will be criminally charged in connection with the investigation, the event has stoked partisan emotions. In a Sept. 1 prime-time address to the nation, Biden condemned “MAGA Republicans” who support Trump’s false claims of a stolen 2020 election, unprovable cases of election fraud and violent political statements like those that led up to the Jan. 6, 2021, insurrection at the U.S. Capitol.
In Hampton Roads, U.S. Rep. Elaine Luria, the Democratic incumbent, is running a tight race for a third term after redrawn boundaries erased Democratic-leaning parts of Norfolk from the 2nd District. Photo by AP Photo/J. Scott Applewhite
In a Wall Street Journal poll conducted Aug. 17-25, 64% of Republican respondents said they’re more likely to vote in November due to the FBI search, while 37% of independent voters and 36% of Democrats said they were more likely to vote because of the search.
In August, Democrats celebrated the congressional win of Mary Peltola in Alaska, where she becomes the first Alaska Native woman to hold congressional office. The special election was held to replace the late U.S. Rep. Don Young, but a second regular election takes place in November. Among Peltola’s opponents in August and this fall is former GOP vice presidential candidate Sarah Palin, who has since complained about the state’s use of a ranked-choice ballot in the special election.
Palin’s August loss aside, many experts still predict Republicans will win control of the House of Representatives this fall — but The Cook Political Report wrote in September that a GOP majority in the House is “no longer a foregone conclusion.”
The party in control of the White House historically performs poorly in midterm elections — and Biden’s approval ratings have been historically low.
As of Sept. 1, Rasmussen and Wall Street Journal polls showed Biden’s job approval rating at 44% and 45%, respectively, while 54% disapproved, putting him 9 to 10 percentage points underwater. Polling site FiveThirtyEight also had Biden’s approval rate at a similar 42.3% on Sept. 15.
Democrats in Virginia are well aware of the possibility of failure, as Gov. Glenn Youngkin led a GOP sweep last November of the state’s top offices, with Republicans also regaining control of the Virginia House of Delegates. Pundits noted in 2021 that the party in control of the White House has historically lost the governor’s race the following year, and with significant numbers of suburban voters having jumped on the affable, fleece-vest-wearing Youngkin’s bandwagon, Republicans won their first statewide victories since 2009.
The Republican Party of Virginia say it’s a reaction to the public’s displeasure with Democrats and the Biden White House. “Virginians are tired of the Biden administration’s failed policy agenda that is hurting American families at the pump, the grocery store and everywhere in between,” says Ellie Sorensen, the state party’s press secretary.
Yet Virginia Democrats say abortion rights — which are currently protected in Virginia by Democrats’ narrow majority in the state Senate — are a major incentive for liberal-leaning voters to vote this year and next.
“It comes down to choice for everyone who lives here,” says Democratic Party of Virginia Chair Susan Swecker. “Do you want to elect officials who will defend reproductive rights or empower those who want to rip them away?”
Nevertheless, analysts opine that Biden’s low approval ratings and rising inflation still tilt the odds slightly toward the GOP.
“I still view it as a Republican-leaning midterm environment,” says Kyle Kondik, managing editor of Sabato’s Crystal Ball, an online political newsletter and election handicapper produced by the Center for Politics at the University of Virginia.
Setting boundaries
Virginia’s congressional candidates are running in new districts for the first time in a decade. Virginia’s new bipartisan redistricting commission deadlocked after the 2020 Census, leading to the Virginia Supreme Court appointing experts to draw the districts.
The new maps tilted Luria’s district slightly more Republican.
“The map still favors Republicans, although the new map has fewer wasted Democratic votes,” says Amanda Wintersieck, associate professor at Virginia Commonwealth University. “The 2nd was a safer district for Democrats prior to redrawing lines. Today it is more Republican.”
The 2nd District consists largely of Hampton Roads communities, centered on the Republican-leaning swing city of Virginia Beach. Its congressional seat has flipped between political parties four times since 2000. Luria is running to hold it in a challenging atmosphere, against a strong candidate in state Sen. Kiggans.
Republican State Sen. Jen Kiggans is opposing Luria in the 10th District race, which U.Va.’s Center for Politics deemed a toss-up in late August. Photo by AP Photo/Steve Helber
Kiggans says her time in the Virginia Senate has given her “a firsthand look at the danger and insanity of liberal, one-party political rule here in the commonwealth,” the nurse practitioner and Navy veteran helicopter pilot says. Her first two years in the Senate, after she won a seat in 2019 formerly held by Democrats, coincided with Democratic control of both legislative houses and the top three state offices.
“I’m running for Congress to restore American strength in our economy, communities, borders and our military,” Kiggans says. “Virginians are suffering at the gas pump, at the grocery store and everywhere in between. Americans have a choice whether or not they want to continue like this for two more years or make a change.”
Luria, who also was a naval officer before taking congressional office in 2019, cites her experience running a business as a formative experience, saying it led her to lobby the General Assembly “to change the restrictive licensing red tape on businesses like mine and expand opportunities for others.” (Luria and her husband established and later sold a small local retail chain and art studio, The Mermaid Factory, specializing in mermaid-themed souvenirs.)
“Supporting the business community remains one of my top priorities in Congress,” Luria says, “and I am committed to ensuring businesses and working families have the resources they need to thrive.”
As for her participation in the House of Representatives’ Jan. 6 select committee, Luria says the day of the U.S. Capitol raid was “one of the darkest days of our democracy,” and adds that protecting the country’s democratic institutions is a key part of her oath to uphold the Constitution.
Chris Saxman, executive director of Virginia FREE and a former Republican delegate, says this argument probably matters less in the 2nd District than it would in areas closer to Washington, D.C.
“It’s important to differentiate the 2nd from statewide,” Saxman says. “The level of intensity against Trump in the Northern Virginia area is off the charts, because he ran against the swamp. ‘Drain the swamp’ — that’s Northern Virginia. There’s deep antipathy for Donald Trump in that area, [but] with him not on the ballot, I don’t know how much of an accelerant and stimulant it is for anti-Trump voters.”
The 7th District is considered only slightly less competitive than the 2nd. Spanberger defeated two-term Republican U.S. Rep. David Brat to win election in 2018 amid the same Democratic wave that put Luria and Wexton in office. Redistricting saw the 7th District lose some Republican-leaning Richmond suburbs but pick up more Democratic-leaning Northern Virginia suburbs.
“It’s a mildly-leaning-Democratic seat,” Kondik says. “Biden won it by 7 points. It’s probably one of the most expensive, high- profile House races in all the country. Republicans look at this and say, ‘This is the type of seat that should flip in a year like this.’”
Because of the boundary shifts, Spanberger is new to many of its voters and has had to reintroduce herself. The former CIA officer has walked a fine line — pushing back against party leader Nancy Pelosi and the progressive House “squad” — to win and retain her previous district, which was held by Republicans for more than three decades.
“In no particular order, the issues that I hear Virginians talk about the most are high costs at the grocery store and pharmacy counter, public safety and the fundamental threat to privacy as a result of the Supreme Court’s decision to overturn Roe v. Wade,” Spanberger says. “I’m focused on moving solutions forward that businesses know will help all Virginians get ahead — like strengthening support for workforce training programs, cutting burdensome and unnecessary red tape, and expanding high-speed broadband internet access.”
A Prince William County supervisor and former police officer, Vega decries how “massive government handouts” during the pandemic disrupted the economy.
“The economy is the top issue for voters in our district right now,” Vega says. “Our country is in a recession and people are struggling to make ends meet with soaring gas and food prices. With the cost of living through the roof, my top priority will be working to relieve the burden of increased costs on our nation’s citizens and reduce unnecessary taxes and regulations that are crushing our small businesses.”
In late August, The Cook Political Report moved the race from a toss-up to “leans Democratic.” Kondik gives Spanberger an edge as well. “My guess is she and her campaign will be able to make some hay out of what Vega has said about abortion,” he says.
In June at a Stafford County event, Vega expressed support for more restrictions on abortion, before adding, “The left will say, ‘Well, what about in cases of rape or incest?’ I’m a law enforcement officer. I became a police officer in 2011. I’ve worked one case where as a result of a rape, the young woman became pregnant.”
Spanberger tweeted that her opponent’s words were “extreme and ignorant,” and the state Democratic party has continued to push the issue in statements through the summer.
But Regent University’s Nolte says Vega’s comments likely will make less difference to voters than economic issues.
“In a neutral economy, social issues are potentially a very effective wedge,” Nolte says. “Inflation numbers and gas prices have gone down some. They would have to go down a lot further for this not to be an economic election and referendum on Biden.”
The 10th District only recently flipped after being represented by Republicans since 1981. Democrat Wexton defeated incumbent Republican Barbara Comstock in 2018 by 13 points and held the seat by the same margin in 2020.
“It’s been my top priority to bring down costs for Virginians and ease the burden of inflation on families’ budgets,” Wexton says. “I’m proud that we’ve passed major legislation to lower health care and prescription drug costs, take meaningful action to combat climate change and ensure a healthy planet for our future, and tackle inflation while reducing the deficit.”
Analysts see the 10th District as less competitive than either the 2nd or 7th.
“Biden won it by 18 points, and Republicans don’t hold any districts currently that came close to that margin,” Kondik says. “The best Biden district they hold is 10 or 11 points. It flips if it’s a mega [GOP] wave. I’m skeptical of that. It’s still a Republican wave year, but not quite as sharp as most wave years.”
Nolte also ranks the 10th as the least competitive of Virginia’s three districts in play. But he sees a possible route for Republicans, particularly if Cao can pull big numbers among Asian voters. Nolte also identifies an additional campaign dynamic to watch: Youngkin’s travels to support GOP candidates in other states.
Democrats have used his busy travel schedule — including trips to Michigan, Georgia, Kansas, Maine, New Mexico and Oregon — to question his interest in serving as governor, and Youngkin has not definitively said he is uninterested in a presidential run.
“It’s not too early to start thinking about 2024,” Nolte says — a nod to the next presidential election. “Watch the endorsements and watch who is coming and campaigning for whom. In and out of Virginia, what is Youngkin doing?”
When COVID-19 hit in spring 2020, Cindy R. Earl lost her job as a furniture company’s sales rep.
But the Portsmouth resident’s sudden unemployment came with a positive side effect: She had time to assume care of her ailing grandmother after the pandemic had shuttered the assisted living facilitywhere her grandmother had lived. It was an experience that turned out to be unexpectedly inspirational.
“I’m an inquisitive person,” Earl says, and seeing the problems that her grandmother had suffered as an Alzheimer’s patient, which included dehydration and an unexplained injury, made her want to start a company dedicated to investigating elder abuse. She didn’t really know how to go about doing that, however, and that’s where Old Dominion University‘s Hudgins Transitional Entrepreneurship Lab came in.
Launched in 2019 with a $1.2 million gift from Marsha Hudgins, an ODU alumna who owns a construction company in Hampton, the academic research enterprise is dedicated to educating and supporting would-be entrepreneurs who live in underserved and marginalized communities in the Hampton Roads area. Its focus is on aiding women, minorities, veterans, immigrants, refugees and formerly incarcerated people.
“Entrepreneurial efforts have long provided much less resistance and more immediate reward for hard work and creativity for groups with no readily available opportunities in the business world,” Hudgins says, explaining why she, the granddaughter of Greek immigrants, wanted to provide a leg up to other prospective entrepreneurs. But, for the disadvantaged, hard work and creativity often are not enough to ensure success.
According to a 2020 National Bureau of Economic Research study, Black entrepreneurs received an average of $35,205 in startup capital, compared with $106,720 for white entrepreneurs. And although venture capital for Black-owned startups doubled in 2021, according to Crunchbase, only 1.2% of all VC funding goes to Black entrepreneurs.
“Our mentees have the passion and the ideas,” says Hudgins Lab Director Robert J. Pidduck, also an assistant professor of entrepreneurship at ODU’s Strome College of Business.
“They are eager to get something off the ground,” he says, but they often lack the specific skills necessary to launch and sustain an enterprise — as well as the professional connections that make the wheels of commerce go ’round.
Financing can be a big sticking point, though Pidduck labels a sole focus on money as a distraction. “Throwing money at anyone doesn’t solve deeper problems,” such as lack of know-how and business contacts, he says.
To tackle those issues, the Norfolk entrepreneurship research lab draws on both academic assets and community resources.
During the height of the pandemic, the lab offered virtual panels, seminars, workshops and informal gatherings focusing on make-or-break subjects such as marketing, accounting and the use of crowd funding to bypass possible racial bias in lending.
Foremost in its multipronged approach are monthly mentoring meetings to provide one-on-one guidance to entrepreneurs who have started businesses ranging from body care and bookkeeping enterprises to counseling providers and urban agriculture companies.
During these sessions, Jay O’Toole, deputy director of the lab and an assistant professor in the management department, helped Earl build a website for what would become her private investigation firm, Proof Please LLC. He also assisted her in writing a capability statement for government contracting opportunities and in applying for a $2,000 grant that she ultimately received from the Portsmouth Economic Development Authority. “He was available whenever I needed him to be,” Earl says.
Aletha Russell, another of the lab’s five mentees, received O’Toole’s help in launching her online body care products business, She’s Steamy. He guided her through building a website, obtaining a business license and registering her business with the state government.
Almost as important as such hands-on help was the lab’s assistance in connecting Earl and Russell to professional networks and to local entrepreneurs who already have been there and could share advice and lessons learned.
“You don’t need an MBA to learn these skills,” Pidduck says.
The lab, as the professor conceives it, functions as “a hub, a synergizing force” for area entrepreneurs, and he hopes it will keep growing in coming years. Last fall, O’Toole received a $15,000 grant from the Small Business Development Center to help graduate students and research assistants conduct a study into the needs of Virginia’s minority entrepreneurs. That project is furthering one of the lab’s other goals, to generate research with practical applications.
In 2020, Anil Nair, then chairman of Strome’s Department of Management, was awarded a $400,000 grant as part of the Ewing Marion Kauffman Foundation’s Knowledge Challenge initiative, which supports research that advances entrepreneurship and economic mobility. Nair says the Hudgins lab will use the funding to expand its outreach to middle and high school students, add more mentees, pursue local partnerships and hold conferences to spur studies in the field, all while showcasing the lab’s initiatives.
“Things don’t come that easily [to our mentees],” Nair says, but with the help of the Hudgins lab, the situation is improving for some of the mentees.
At her P.I. business, Earl now has about eight clients for whom she runs background checks, wellness checks and sometimes conducts surveillance in cases where neglect or physical, sexual, emotional or financial abuse is suspected.
For Russell, 2021 was all about putting plans in motion for She’s Steamy, but this year sales of her all-natural body oils, scrubs, butters and salts have really taken off, thanks in part to the lab, which, she says, has “been there step by step. I’ll stick with Dr. O’Toole through thick and thin.”
Before her August performance at Marion‘s historic Lincoln Theatre, country singer Lorrie Morgan took an afternoon stroll downtown, stopping at shops and the local farmers market, according to Tracy Thompson, the theater‘s director.
Drawing visitors — famous and otherwise — to downtown Marion was the goal back in 2004 when the community raised more than $1.8 million to renovate the Lincoln, which was initially built in 1929 as a movie theater.
Pennington Gap had a similar goal in mind in 2013 when it reopened its Lee Theatre, which dates to 1947 and, like the Lincoln, closed during the 1970s. Now, organizers hope to drive economic development in Wytheville with the soon-to-reopen Millwald Theatre.
Jeff Potts, who came on board as executive director of Millwald Theatre Inc. earlier this year, hopes to finish the venue’s $4.8 million renovation and expansion in time to stage its opening events around Thanksgiving or in early December. “Definitely sometime this year,” he says.
On a busy night, he expects the Millwald to draw 500 visitors downtown.
“They’re going to come early and stay late in downtown Wytheville,” Potts says. “And that, ultimately, is the point of why we’re doing this. It’s not just to save the building, and not just to create a cultural gathering spot. It’s to make money and to spread that throughout our community.”
That’s what’s happened with the Lee Theatre, according to Keith Harless, town manager of Pennington Gap, which has 1,922 residents. The venue hosts events about four times a month.
“When you have an average of 300 people that come to our little downtown, that’s a huge impact for a town of our size,” he says.
While the Lee Theatre screens movies, Marion’s Lincoln Theatre has, until now, stuck to live events. Thornton hopes that will soon change. In June, Gov. Glenn Youngkin recommended that the Lincoln Theatre receive a $69,025 grant from the Appalachian Regional Commission, a federal economic development agency, to purchase equipment to allow the theater to digitally project movies.
The Millwald will also screen films, but Thompson isn’t worried about competition. “The more venues, the more performance opportunities there are in the region, the better everyone is going to do,” she says. “Southwest Virginia, hopefully, will become a really strong arts destination.”
With Halloween fast approaching, I thought I’d regale you with a spooky tale of the corporate world’s favorite new boogeyman: quiet quitting.
Like many scary things for people over age 45, this story begins on TikTok and Reddit, where this summer Gen Z and millennial workers were riffing about “quiet quitting” — generally defined as doing the minimum amount of work required of them and not going above and beyond.
This in turn kicked off a panicked wave of stories and podcasts from the likes of The Wall Street Journal, Bloomberg, Forbes and Fortune, decrying anti-hustle culture as the End of Western Civilization as We Know It, with spine-tingling, bone-chilling headlines like, “Why Half The Workforce Is Quiet Quitting, And What To Do About It.”
Since then, like a monster in the third act of a creature feature, the clickbait stories about quiet quitting will not die — even though the phenomenon may turn out to be about as real as Dracula or the Wolf Man.
The most hyperbolic stories are those that would lead one to conclude that half the U.S. workforce are total slackers.
The one stat trumpeted most in quiet-quitting stories is a June Gallup poll of U.S. employee engagement. Gallup warned of a “quiet quitting crisis,” noting that quiet quitters “make up 50% of the U.S. workforce” — and “probably more,” Gallup added for pulse-quickening good measure.
Here’s the thing, though: The June survey of nearly 15,100 full- and part-time workers found that 32% are engaged at their jobs and 18% are “actively disengaged” (read “one foot out the door”). Gallup labeled the remaining middle 50% as “quiet quitters,” saying these are “people who do the minimum required and are psychologically detached from their job.”
But Gallup’s been conducting this same poll for at least 22 years and while it measured four-point increases in people who say they’re actively engaged or disengaged in their jobs since 2020, the folks they’re calling “quiet quitters” have hovered between 50% to 55% of the workforce for decades, so there’s not anything necessarily new going on here.
In other words, these are people, who like many millennials and Gen Zers, don’t define themselves by the work they do. They show up, do what they’re asked, get paid and go home. No more, no less.
The term “quiet quitting” apparently was coined by 44-year-old Gen X career coach Bryan Creely, who posted a TikTok video with his thoughts on a March article from Insider devoted to “coasting culture.” Insider writer Aki Ito wrote about how exhausted, overtaxed workers had “quietly decided to take it easy at work rather than quit their jobs.”
Several of the mainstream stories about quiet quitting focus on remote work or white-collar jobs, but many viral videos and posts about quiet quitting were created by lower-paid hourly workers who say they’re being asked to take on more and more work for no extra compensation. “Act your wage” is a common saying among these folks, and it’s notable that this comes at a time when CEO-to-worker pay ratios are at an all-time high, with the average S&P CEO in 2021 making 324 times more than their workers’ median pay. Amazon.com Inc. tops the list, with a CEO-to-worker pay ratio of 6,474 to 1. (For more on this, see our October 2022 cover story about executive compensation.)
Amid pandemic-sparked labor shortages, everyone from hourly restaurant workers to office desk jockeys to remote executives was asked to take on more duties, with work increasingly encroaching on personal and family time in ways both subtle and substantive.
It’s perhaps no surprise then that what many overextended “quiet quitters” are actually talking about in their posts and videos is the need for work-life balance — that they’re literally tired of living to work, rather than the other way ’round.
There’s a reason the phrases most likely to repel job seekers these days include “must handle stress well,” “willing to wear many hats” and “responsibilities may include those outside the job description,” according to the results of a survey of 800 U.S. adults released in September by Paychex Inc., a payroll processing company.
For many, “quiet quitting” seems to be just another way of saying they’re setting work-life boundaries.
Jeremy Caleb Johnson is advising clients preapproved for a mortgage loan at the beginning of 2022 to adjust expectations.
The price of houses they may have looked at just months ago likely not only went up significantly, but the low interest rates available then have also risen dramatically.
“What you may have been able to afford in January of this year, you can’t afford that now,” says Johnson, an agent and associate broker with Long & Foster/Christie’s International Real Estate in Virginia Beach. “We all have places that we would prefer, neighborhoods and parts of the city that we would prefer to live in, but we may not be able to do that now.”
Tight inventory across Hampton Roads caused the median sales price (MSP) for a home to rise from $300,000 last year to $322,500 in July, according to a market summary from Real Estate Information Network Inc. (REIN), the multiple listing service that covers the region from Williamsburg east through Virginia Beach and south across the North Carolina border.
“A house in Virginia Beach is going to be a little more expensive than a house in Chesapeake,” says Johnson, chairman-elect of the Hampton Roads Realtors Association. “A house in Portsmouth is going to be less expensive than a house in Chesapeake. Buyers may have to find a little bit of flexibility in their budget to say, ‘OK, I really want to be in Chesapeake, but maybe Portsmouth is OK because I can afford to be in this city, or this part of the city as opposed to that part of the city.’”
There are signs that the market is starting to soften due to higher prices and mortgage rates. There were 2,777 pending sales in July, down 19.3% year-over-year and 9.66% month-over-month. Settled sales during that month totaled 2,909, a 23.4% decline year-over-year and down 12.38% month-over-month. Median days on the market were 12 in July, up from nine in June, according to REIN.
“Unlike the 2021 buyer frenzy that we had, we have a more cautious buyer who is very concerned that they may be overpaying for a property,” says J. Van Rose, president of Rose & Womble Realty Co. in Virginia Beach. “They’re still out there. They’re still looking. But instead of getting 15 to 20 offers, we might get two to three, and they’re not well over the list price.”
Rose says he’s also starting to see contracts that include home inspections, closing-costs assistance and other contingencies that might have been waived when the market was hotter.
While buyers are gaining some bargaining power, they have fewer properties to choose from. There were 4,129 active listings in July, down 10.65% year-over-year and up only slightly — 0.36% — month-over-month, according to REIN.
Rose says one group that is struggling to find property they can afford are active-duty military members, who make up a significant portion of Hampton Roads’ population. They may have been able to combine their housing allowance with a Veterans Affairs (VA) loan to buy the house they wanted when interest rates were low but can’t afford it now that rates are much higher.
Hampton Roads’ housing market is less affordable than it used to be, says Virginia Realtors Chief Economist Ryan Price. Just three years ago, the region’s MSP was $258,950, which buyers with a gross household income of about $61,000 could afford, assuming a typical housing cost burden of 30% of their income.
Today, a buyer would need a gross income of $84,900 to afford a house at the current median price, but regional median income was $68,454, according to the 2020 census. Although the regional median income has likely gone up some since then, it is definitely still below $84,900, Price says.
Rising mortgage rates haven’t made the situation easier. Tidewater Mortgage Bankers Association President Mike Grunwald says buyers panicked earlier this year as mortgage rates began climbing faster than he’d ever seen in his 13-year career. Pre-approvals had to be reevaluated and some clients became discouraged.
Rates, which had climbed as high as 6%, were varying “between 5% and 6%” as of August, “depending on the type of loan program and a buyer’s income and credit rating,” he says. The Federal Reserve Bank, responding to inflation, raised benchmark interest rates four times as of early September, with another hike expected later in the month.
“There aren’t a lot of [refinances] going on, unless it’s for a divorce or they’re cashing out,” says Grunwald, a senior loan
officer at Southern Trust Mortgage in Virginia Beach.
Speaking in August, Grunwald said he thought mortgage rates had probably peaked for the foreseeable future, adding that there were indications that the federal government could provide incentives for builders to construct more affordable housing or offer tax credits to sellers. There’s also been talk of a new 40-year mortgage to help lower payments.
“There’s got to be some kind of responsible action to what’s going on,” Grunwald says. “The middle class has to have some place to live.”
The views Steve Powell and his employees at Buckingham Branch Railroad see daily while riding the rails inspired him to launch the Virginia Scenic Railway.
“There are a lot of people that love railroads, and we love sharing our railroad. It’s a unique way of seeing the Virginia scenery instead of riding on the interstate,” says Powell, the railroad’s president.
Virginia Scenic Railway is the commonwealth’s only regularly scheduled sightseeing tourist train. The railway began service on Aug. 4. “Our trips sold out in 10 days,” Powell says. “We are sold out through Thanksgiving.”
The new railway offers twice-daily three-hour excursions from Staunton through the Shenandoah Valley. Buckingham Branch has a permanent operating easement from the state government to use the tracks.
The Blue Ridge Flyer leaves from Staunton’s Amtrak station and travels to Afton Mountain and through the Blue Ridge Tunnel before turning around in Ivy.
The Alleghany Special starts in Staunton and goes through the Shenandoah Valley toward the George Washington and Jefferson National Forests before turning around in Goshen for the trip back. Both routes offer prime autumn leaf peeping.
Excursions occur every Thursday, Friday, Saturday and Sunday. Each includes meals, which are made onboard.
“I like to call it a bistro on rails,” Powell says. “People can come get a good sandwich or salad and feel like they are in a restaurant.”
The new excursions are a big plus for Staunton’s tourism industry, says Sheryl Wagner, Staunton’s director of tourism. Her department gets four or five calls a day from interested rail riders.
“It is a tourism director’s dream to have an attraction in your destination that is unique but also appealing to a large audience,” she says, adding that the rail excursions will have a positive impact on Staunton’s tourism economy. “Since the train station is conveniently located in downtown Staunton, train guests can easily walk to shopping, restaurants or lodging.”
The railway also plans to offer Santa Claus trips through the holiday season. “We want to have kids and families on there to meet Santa all through December,” Powell says. “These will be shorter rides with no meals.”
Next year’s rides will start up in late winter or early spring.
“We are really excited about getting more cars so people can ride [with] different seating options,” Powell says, such as a coach car without dining tables.
“The Radford Army Ammunition Plant means a lot to our BAE Systems workforce, but also to the generations of families in our community that have kept the site running since World War II,” says Brian Gathright, vice president and general manager of BAE Systems Ordnance Systems Inc., the federal contractor that operates the plant. It’s a division of Falls Church-based BAE Systems.
BAE’s contract to manufacture military propellants and explosives for the U.S. Department of Defense now extends through 2026 with a ceiling of $1.3 billion.
The U.S. Army announced the extension in July, ensuring continuity at one of the largest employers in the New River Valley. BAE began operating the arsenal in 2012 and oversees about 3,000 employees and subcontractors. The main industrial site sits along the New River in Montgomery and Pulaski counties between the cities of Radford and Blacksburg. A second storage site is about
12 miles away, near Dublin.
“BAE Systems’ dedication, focus and pride remain just the same as the first day we stepped on site to operate the Radford Army Ammunition Plant over 10 years ago,” Gathright says.
That dedication means a lot to the New River Valley.
“The Radford Army Ammunition Plant … is a significant employer in Montgomery County and the New River Valley,” says Brian Hamilton, Montgomery County’s director of economic development. “Radford Army Ammunition Plant employees receive higher than average manufacturing wages, which has a substantial economic impact on the region.”
In a report by the Virginia Employment Commission, BAE ranked seventh among largest employers in the New River Valley behind powerhouses such as Virginia Tech, Volvo Group North America Inc., Radford University and Carilion New River Valley Medical Center.
“Historically, the ammunition plant has been instrumental in developing and establishing neighborhoods and infrastructures here in Radford dating back to the 1950s,” says Kimberly D. Repass, the city’s director of economic development.
Opened in 1941, the Radford plant is one of a handful of government-owned ammunition suppliers still operating. Work on a new nitrocellulose manufacturing facility at the plant began last year, an effort the Army said will transform the Radford site “from a World War II-era plant to a 21st-century installation.”
1. Martinsville Speedway President Clay Campbell celebrates the raceway’s 75th anniversary on Sept. 7.2. L to R: U.S. Sen. Tim Kaine, U.S. Secretary of Energy Jennifer Granholm and Virginia Transformer Corp. CEO Prabhat K. Jain cut ribbon on Aug. 25 at VTC’s Troutville facility for two new production lines that will support electric vehicle charging. 3. L to R: Howard Mittman, president of 888 Holdings, which has partnered with Authentic Brands Group to run SI Sportsbook; Ida McPherson, co-owner of Virtual
Entertainment Partners; and Hampton University President Darrell K. Williams hold a check showing SI Sportsbook’s $25,000 tech education donation to the university. 4. Students participate in James Madison University Recreation’s inaugural Color Run/Walk on Sept. 4.5. Cliff Fleet (L), president, CEO and chair of the Colonial Williamsburg Foundation, and Gov. Glenn Youngkin speak during the Greater Williamsburg Chamber of Commerce’s inaugural Business Leaders Community Breakfast on Aug. 16.
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