Once home to more than 3,600 people with intellectual disabilities and other conditions, the Central Virginia Training Center property in Amherst County is drawing closer to a different future. In June, Gov. Glenn Youngkin signed into law the latest state budget, which removed $25 million in tax obligations from the 350-acre site, making it more palatable to developers.
With the Lynchburg Regional Business Alliance leading the effort to redevelop the land, “about eight” local, regional and national developers had expressed interest in the parcel as of late June, says Megan Lucas, the alliance’s CEO and chief economic development officer. Declining to name the developers, she estimates that work could begin as soon as two years from now.
First, Lucas notes, the state’s Department of Behavioral Health and Developmental Services, which owns the Madison Heights property, must designate it as surplus land so it can be sold.
“Then we get to work,” says Dena Potter, director of communications for the state’s Department of General Services, which tasks its Bureau of Real Estate Services to research property records and see if another state agency could use the land before offering it for sale. “It could take six months to a year for us to get through the entire process … before a property could be marketed for sale.”
But that process would have taken much longer if the tax debt had not been removed; state Sen. Steve Newman, R-Lynchburg, added a request to defease the outstanding bonds, which would likely have taken more than a decade to pay off, Lucas says.
Preparing for the redevelopment started in spring 2020, when the century-old campus shut down, closing a dark chapter of eugenics-driven government policies in Virginia. The parcel, which overlooks downtown Lynchburg and the James River, holds about 90 buildings, most of which are not in use, and woodlands.
A group of local officials and consultants created a master plan released in April, proposing a mixed-use future for the site, with residential and retail properties alongside office buildings.
Aside from fielding calls from interested developers, Lucas’ team also is getting the word out about the parcel to other East Coast developers. The property, which includes about 110 acres of developable land, is part of a federal Opportunity Zone, which carries significant tax benefits. “Our goal,” she says, “was to determine the highest and best use of the property.”
After a couple of failed attempts, Hossein Sadid finally retired at the end of June from the Virginia Museum of Fine Arts, where he had served as chief financial officer and deputy director for finance and administration since 2014.
“It’s been a fantastic journey in the last leg of my professional career,” Hossein says of the VMFA. “Frankly, I’m kind of past due for retirement.”
It wasn’t his intention to work until he was 70. He just kept getting pulled back in.
Sadid began his career as a certified public accountant for Ernst & Young, where he worked on an audit for Case Western Reserve University in Cleveland. Case Western ended up hiring him as its director of internal audit, and he eventually rose to the position of chief financial and administrative officer, overseeing financial operations for multiple departments and acting as a liaison to four affiliated medical centers.
When Sadid left Case Western in 2008, he began seeking work options on the East or West coasts so he could “get out of the snow zone,” he says. Meanwhile, his consulting work took off. He worked with the Massachusetts Institute of Technology, Wake Forest University, Virginia Commonwealth University and the National University of Singapore.
A headhunter contacted him about working full time at the University of Richmond, so Sadid and his wife decided to look at the opportunity. “We really fell in love with Richmond,” he says. “That was one of the reasons I accepted the offer.”
Sadid moved to Richmond in 2009 to become the university’s treasurer and vice president for business and finance. When he told his superiors he would commit to four years there, they thought that time frame sounded a little familiar. “I had learned to mimic the life of an undergraduate,” Sadid says with a laugh. True to his word, he stayed at UR until 2013.
“I thought, ‘I’m definitely retiring. I’ve had over 30 years of employment and consulting.’” He wanted more time for gardening, fishing and jogging.
That didn’t last long, though, after a friend talked him into doing some consulting for the Smithsonian Institution in Washington, D.C. “He asked me to help him with a couple of things he was dealing with there … and I said, ‘I’ll commit a day — 8 to 10 hours — a week to help you.’” It sounded like a reasonable plan, but “that 10 hours turned into 50, 60 a week,” Sadid says.
Once he wrapped up his Smithsonian work, Sadid looked again at options to slow the work pace. He considered applying for a landscaping job because he enjoyed working outside. In his childhood, his family had a farm. “We grew our own food, we had our own animals,” Sadid says. “Once you’ve been a farmer, you’re always a farmer.”
Then he saw the job posting for VMFA’s CFO position and became intrigued. It was one more chance to work in the background to support the mission of a nonprofit organization he admired. Today, the VMFA has nearly $42 million in annual revenue and employs more than 650 full- and part-time employees. It is one of the top 10 comprehensive museums in the nation.
“He brought to the museum a great deal of discipline and organization, which has helped us to grow,” says Alex Nyerges, the VMFA’s director and CEO.
A museum director for more than 40 years, Nyerges says Sadid is, “hands down, the best CFO I’ve ever had the pleasure of working with.” The VMFA didn’t even have a CFO until 2010. Sadid was the second person to hold the title.
“Hossein brought to us an incredible array of expertise,” Nyerges says. Sadid had fresh ideas, good organizational skills and “an attitude that anything is possible.”
Being selected for the CFO of the Year award had special significance for Sadid in the final days before his retirement. “It’s a great going-away gift for me,” he says.
Virginia Business’ 2022 Virginia CFO of the Year award winners represent large and small businesses and large and small nonprofits.
Large business|Sal Mancuso, executive vice president and CFO Altria Group Inc., Henrico County
A first-generation college graduate whose father immigrated to this country from Sicily, Italy, as a teenager, Sal Mancuso believes it’s important to listen to people at all levels of his nearly 6,000-employee company.
“It’s important for me to value and respect every person who works here,” says Mancuso, who started with tobacco products manufacturer Philip Morris USA more than 30 years ago as an entry-level accountant and is now executive vice president and chief financial officer for Altria Group Inc. The publicly traded Fortune 500 parent company of Philip Morris, Altria brings in more than $26 billion in annual revenue.
If Mancuso needs more information on facilities, he says, he seeks feedback from the people who oversee them. “They know the facilities better than me, so it’s important for me to listen to them,” he says.
That same humility applies to employees on his financial team. “I want my employees to push back on me if they disagree with me … and I give them a safe place to do that,” Mancuso says. “If they do that, I will make a better decision and be a better CFO.”
He is quick to give credit elsewhere and says his selection as the 2022 Virginia Large Business CFO of the Year is “a reflection on the finance and procurement organization here at Altria, and the company as a whole.”
Mancuso says he’s fortunate to be surrounded by highly skilled individuals. “I rarely am the smartest person in the room,” he says. “I know who to ask and who to listen to. Those relationships are important to me.”
Outside of his corporate financial duties, Mancuso has become a leader in advancing Altria’s social responsibility and diversity initiatives. The company’s stated goal to “lead the transition of adult smokers to a smoke-free future” is something he takes seriously. “Myself and other leaders, along with our tremendous employees, are very focused on that mission,” he says. Altria subsidiaries produce cigarettes and cigars as well as smokeless tobacco products and oral nicotine pouches.
Mancuso also has taken a lead role in diversity, equity and inclusion efforts by sponsoring an employee resource group for Black employees. “For me, it’s been as rewarding as anything I’ve done in my career. … It provides our employees with a voice, and a way of impacting the business.” At the same time, he has analyzed pay equity for all employees.
“We believe that’s critical for our success,” Mancuso says. “It’s not just what we deliver, it’s how we deliver it.”
His focus on diversity as well as environmental, social and governance (ESG) goals have sparked new initiatives at the Greater Richmond Partnership, for which Mancuso currently serves as board chairman.
“He has been a phenomenal leader,” says Jennifer Wakefield, president and CEO of the partnership, the main economic development organization for Richmond and its surrounding counties.
“ESG is obviously very important to Altria,” she says. “They have a great, diverse workforce … and a great story to tell when it comes to sustainability.”
Mancuso’s understanding of those corporate concerns has helped the partnership lure to the area companieslike the Lego Group, with its focus on sustainability, and CoStar Group Inc., which puts a lot of emphasis on diversity, Wakefield says. Lego announced in June that it’s investing $1 billion to build a solar-powered toy manufacturing plant in Chesterfield County. CoStar moved its real estate research headquarters to downtown Richmond a few years ago and is embarking on a $460 million expansion of the campus.
While Mancuso looks outward to help the partnership, he’s also skilled at “internal analysis,” particularly when it comes to financial statements, Wakefield says. “We’re a nonprofit but that doesn’t mean that our numbers should be flat.”
Mancuso believes his varied work experiences at Philip Morris and Altria have helped him progress through his career. He has moved around the company in roles that include budgeting, financial planning, compliance, investor relations, procurement and auditing.
“We believe in broadening people through experiences,” Mancuso says. “It’s really worked out for me.”
Read more about Virginia Business’ 2022 CFO of the Year award winners:
Roy Corby’s first job at a casino was as a dealer.
Now, Corby is general manager of the $300 million Rivers Casino Portsmouth, which is on track to become the first Virginia casino to open in a permanent location. It plans to open in January 2023 at the intersection of Victory and Cavalier boulevards, off Interstate 264.
But to Corby, the resort casino’s practically up and running already.
“It really starts to become real as you start to go through the dealer school, as you start to mass hire employees,” he says. The casino kicked off hiring in May with a job fair at Tidewater Community College, recruiting employees to train for dealing cards and running table games.
Rush Street Gaming, the casino’s owner, plans to hire 1,300 permanent employees. As of late June, the casino had hired 27 workers, including select leaders, Corby says, and had received 500 job applications.
Two more job fairs have been scheduled: one Aug. 20 at the Sportsplex in Portsmouth, and another Sept. 28 at the Holiday Inn Virginia Beach Norfolk Hotel and Conference Center. The casino has partnered with TCC to assist with workforce development and recruitment.
Rivers Casino Portsmouth started construction in December 2021, with Virginia Beach-based S.B. Ballard Construction Co. and Philadelphia-based Yates Construction as general contractors. Rivers Casino Portsmouth avoided supply chain issues and inflation-related cost increases by securing materials in advance, Corby says.
In July, the casino opened a 2,317-square-foot office in a coworking space on High Street in Olde Towne to house multiple administrative departments and assist with recruitment.
Interim Portsmouth Economic Development Director Brian Donahue says the casino will generate about $16 million in annual tax revenue, accounting for 7% of the city’s current gross domestic product.
Meanwhile, across the Elizabeth River in Norfolk, the Pamunkey Indian Tribe‘s rival HeadWaters Resort & Casino is on schedule to open in 2024 next to Harbor Park, says casino spokesperson Jay Smith, adding he doesn’t have a timeline for its construction to start.
Norfolk’s city government is pondering allowing the HeadWaters casino to open a temporary facility, which Smith says could help develop customers and allow the city to draw tax revenue sooner. The temporaryvenue received an OK from city planners in May but still requires city council approval.
Virginia Business Associate Editors Courtney Mabeus and Robyn Sidersky contributed to this article.
In July, Virginia ceded the top spot in CNBC‘s America’s Top States for Businessrankings to neighboring North Carolina, with Virginia taking third place in the annual list. Virginia had previously held the No. 1 slot for a record-breaking two years — a feat no other state has matched in the coveted award’s 15-year history. (Virginia has ranked No. 1 in the annual awards five times, making the top 10 every year but 2016 and 2015, when it ranked 13th and 12th.)
Gov. Glenn Youngkin, while running for office last year as the Republican nominee, downplayed the significance of Virginia’s consecutive wins, which came during the tenure of Democratic Gov. Ralph Northam.
Although Virginia’s educated population and openness for new business are reasons it has continued to score at or near the top of CNBC’s list, such accolades “haven’t always translated into growth in Virginia,” Youngkin said in a statement after the 2022 announcement.
The new governor, of course, did mention some economic development wins that have taken place since he took office in January — Lego Group’s announcement that it will build a $1 billion manufacturing facility in Chesterfield County, and the twin announcements that defense contractors Raytheon Technologies Corp. and The Boeing Co. are both moving their global headquarters to Arlington County.
But there’s room for improvement, both Youngkin and CNBC say, particularly in the area of Virginia’s high cost of living, a deterrent to attracting and retaining skilled workers.
Although Virginia is far from alone in experiencing rising residential home sale and rental prices and inflation, CNBC cited the commonwealth’s cost of living as a significant factor in the state’s drop to third place, giving the state a D+ in the category.
Citing the same economic pressures, Youngkin has attempted to remove some of Virginians’ tax burdens, but only somewhat successfully because state Senate Democrats have held his legislative agenda in check.
The state Democratic Party chairwoman, Susan Swecker, took a different view of this year’s Top States for Business ranking, saying that Youngkin’s “focus on running for president in 2024 and playing to a far-right base” caused the state to drop to third place.
The truth likely lies somewhere in the middle, since CNBC’s 88 areas of consideration include factors that were influenced by Northam’s administration and two years of the Democratic-led legislature, as well as during Youngkin’s first six months on the job with a divided statehouse.
As you’ll see in this year’s Site Locator, Virginia has both a strong workforce development pipeline as well as a healthy economic development landscape, with renewable energy, manufacturing and tech sectors all represented in the past year’s biggest deals.
The Virginia Community College System is experiencing what one top official describes as a “tectonic shift.”
Although transfer programs to four-year colleges still account for the largest enrollment demand in community colleges, fewer students are interested in academic programs that can provide transfer credits to a four-year institution, a traditional mission of community colleges. Instead, an increasing number of students are opting for popular short-term workforce certification courses in skilled trades such as welding, truck driving or phlebotomy that can lead to being qualified for a career job in weeks or months, not years.
“The labor market is telling us — job seekers and career switchers are telling [us] — [that] this is what we need to have more of; this is where we need to make stronger investments,” says Randall Stamper, VCCS vice chancellor for workforce programs.
“We’re going through a significant tectonic shift among worker expectation and student expectation in respect to business demands,” Stamper adds. “There will still be folks who want an associate degree, but I think we’re going through a shift in education and it’s not unique to Virginia.”
Of the increasing interest in workforce training and certifications, Stamper says, “It’s not a crisis; it’s a natural change to a different model.”
Since 2011, when Virginia community college enrollment peaked at 197,226, enrollment has dropped by nearly 27%, to 144,215 in 2021.
Nationally, college enrollment has been falling in recent years and community colleges have been the hardest hit, shedding more than 827,000 students since the start of the pandemic, according to a May report by the National Student Clearing House Research Center.
Community colleges argue that there is no one factor that has spurred enrollment declines, and no one solution to stanching the losses.
The Virginia Community College System’s FastForward program offers 6- to 12-week workforce training classes in high-demand trades like pipefitting, seen here at Brightpoint Community College. Photo courtesy Virginia Community College System
“It’s a mix of multiple factors,” Stamper says. “It’s declining birth rates … It’s higher education in general. The return-on-investment consideration by the public has shifted.”
It’s a common public complaint that college educations, which are more expensive than ever, don’t carry the same ROI and cachet they once had. Students aren’t flocking to colleges and universities in the numbers they once did, some observers say, wary of taking on crushing debt and earning degrees that may not pay off. Six in 10 college seniors in 2019 held student loan debt, owing an average of $28,950, according to a study by the Institute for College Access & Success.
“We’re seeing increases [in enrollment], but we’re seeing increases in different places,” Stamper adds, stressing that workforce training enrollment is rising while enrollment in some other areas, such as transfer programs, has fallen.
Sharon Morrissey, VCCS vice chancellor for academic and workforce programs, was appointed interim chancellor of the community college system in June, while a search for a permanent chancellor is underway.
Plainly put, Morrissey says, the community college system’s workforce training role is critical because Virginia needs more workers, a point Gov. Glenn Youngkin has expressed while insisting that his administration have a seat at the hiring panel’s table for the next VCCS chancellor. The previous hire for chancellor withdrew amid controversy, leading to Morrissey’s appointment.
“We’ve got 300,000 jobs that are unfilled because there are not enough workers,” Morrissey says. “We know that a lot of people are not out there looking for jobs, because wages have increased.”
Hitting FastForward
The heavy lifter among the state community college system’s workforce efforts is FastForward, an initiative offering short-term workforce training programs for high-demand employment sectors.
Started in 2016, FastForward came out of a statewide tour during which community college officials asked business and industrial leaders across the state what they needed most.
The resounding answer: “Qualified workers.”
In 2015, the General Assembly inserted language in the state budget that directed the VCCS chancellor to develop a plan to address a gap in middle-skills work — jobs that require some postsecondary education, but not necessarily a degree.
Community college workforce training programs usually last six to 12 weeks and offer a flexible learning schedule so that working students can earn industry credentials and certifications, choosing among dozens of career paths.
On average, students who earn credentials through a FastForward training program can go on to earn a median annual wage of $36,928, a 36% increase over their previous wages, according to VCCS data.
In certain high-demand jobs, the median wage increases over students’ former wages can be even more significant: construction, 70% gain; manufacturing, 61%; health care, 61%; transportation, 53%.
Since 2016, FastForward has seen 50% growth in enrollment, with FastForward students earning about one-fifth of the 32,000-plus degrees, diplomas and certificates awarded by the community college system in the last academic year. About 96% of FastForward students complete their courses and about 72% of those students pass the tests needed to earn credentials that qualify them for jobs.
“The average FastForward student is
34 years old. Two out of three of them have dependents, and 20% of them had been on public benefits in the year before they enrolled. So, it’s a different kind of student,” Stamper says.
The state underwrites the cost of workforce training programs, which are noncredit programs that lead to an industry credential or a third-party credential. It could be anything from a state license issued by the Board of Nursing to a certification from the American Welding Society.
“We’ve got 300,000 jobs that are unfilled because there are not enough workers,” says Sharon Morrissey, interim chancellor of the community college system. Photo by Caroline Martin
FastForward also has a unique twist.
“Everybody has skin in the game, and it pays for performance,” Stamper says. “To our knowledge, it’s the only pay-for-performance … college-based [program] in the country.”
Here’s how it works: The student pays the first third of the cost of tuition. If the student completes the training course successfully, the state pays for the second third of the cost. When the student earns an industry credential, usually by sitting for an examination or demonstrating an acquired skill, the state will pay the final third. If the student doesn’t successfully complete the training, the student is responsible for the second third, and the college is not paid for the final third.
Another new state workforce initiative is G3 (Get a Skill, Get a Job, Get Ahead), which provides tuition assistance for students pursuing degrees or certification in high-demand fields, including health care, information technology and manufacturing.
“G3 is for people who have a family income of less than 400% of the federal poverty level. The 400% federal poverty level for a family of four is $100,000. Below $100,000 in a family of four, you qualify for G3,” Morrissey says.
G3 is “a last dollar program,” meaning it makes up the difference not covered by federal financial aid.
“It’s a brilliant program,” Morrissey says. “We just got through our first year. … We saw enrollment increase in these G3-eligible programs, while overall our enrollment continued in a decline mode last year, which tells us, just like the FastForward programs, there is a demand for funding to help students pay for the cost of college.”
High demand, fast hires
Even community college veterans are astonished by the rapid shift in the demand for workforce credentials. Amid ongoing labor shortages, industries turn to the community colleges to produce workers — preferably as fast as possible.
“I’ve been in workforce development for 22 years and I’ve never seen anything like this labor market. Employers are working very closely with us to have first access to the students who are completing these [high-demand] programs,” says Elizabeth Creamer, vice president of workforce development and credential attainment for the Community College Workforce Alliance.
A joint workforce training division of Brightpoint and Reynolds community colleges in the Richmond region, CCWA helps create skilled talent pipelines for businesses, as well as providing training credentials to connect job seekers with living-wage jobs that don’t require a college degree.
CCWA offers training for 33 FastForward programs focusing on areas such as health care, information technology, transportation and logistics, and manufacturing. It’s had a good track record so far, with companies such as Philip Morris USA, DuPont, Gerdau and Standard Motor Products Inc. hiring workers out of CCWA programs. Philip Morris, DuPont and other companies have also partnered with CCWA on apprenticeship programs.
Employers ranging from local governments to Fortune 500 companies are clamoring for workers in a variety of trades that don’t require four-year degrees, says Elizabeth Creamer with the Community College Workforce Alliance. Photo by Caroline Martin
Just since January, VCU Health has hired 29 clinical medical assistants from CCWA training programs, and Henrico County hired three graduates of a new training program for 911 emergency dispatchers.
During the pandemic, Creamer says, workforce programs saw a dramatic increase in enrollment.
Overall CCWA enrollment dropped from 7,449 to 5,737 between 2019 and 2021, largely due to a lack of enrollment for in-person professional development classes during the pandemic. During the same time period, however, enrollment in short-term certification programs skyrocketed at CCWA, which saw its FastForward program enrollment grow by 49% to 2,300 students. And some programs, like health care, saw 80% growth over pre-pandemic enrollment levels.
In 2020, Glenn and Suzanne Youngkin started the Virginia Ready Initiative, which collaborates with the FastForward program to help people laid off during the pandemic get skilled for in-demand jobs in health care, IT, cybersecurity and manufacturing. Those who complete FastForward credentials get $1,000 in cash on top of state funding.
During the pandemic, Creamer says, “there were major shifts in the employment market: Restaurant workers were out of work, [as were] food service and hospitality workers. A lot of them came to us for training.”
And the demand in many fields is so great, Creamer says, that skilled workers such as electricians, HVAC technicians and health care and technology workers can find jobs almost as soon as they qualify. Some employers even show up on the last day of classes to get the first opportunity to recruit new graduates with in-demand skills.
“These are working adults who are making sacrifices to be here … and they’re coming because they’re trying to get ahead,” Creamer says of students entering FastForward programs.
Life-changing opportunities
In fact, one of her favorite workforce training success stories comes from her own family.
“My son-in-law started with workforce training programs. He became a pipe fitter,” Creamer says. “And then he got an apprenticeship in his company, and the apprenticeship also afforded him a community college degree in mechanical engineering technology. Then he used his company’s tuition benefits to earn a mechanical engineering degree from Old Dominion University.”
Not yet 30, Creamer’s son-in-law now “has about 10 years’ experience in the trades,” she says proudly. “He has an [associate] degree in a technology field and he has an engineering degree — and all of that without any student debt and marrying my daughter and having two children.”
Workforce training programs also offer a chance for redemption for some students.
Consider Keon Melton, who was released from prison in January after serving a 10-year sentence for robbery. At 36, Melton, who lives in Portsmouth, says he’s trying to restart his life, establish a relationship with his two sons, 19 and 10, and become a productive member of society.
Melton read a lot in prison and became a tutor for other prisoners seeking their GEDs, he says. After prison, he felt lost, he says, until he entered a welding training program at Tidewater Community College. “Opportunities are opening up,” he says. “Once I came across the welding, it set me up for a career.”
With a recommendation from his welding instructor, an area employer hired Melton before he’d even finished the class. In his new Portsmouth-area job, Melton has welded doors at an Amazon warehouse and helped on a ship repair, among other projects.
Tamara Williams, vice president for workforce solutions at TCC, says welders are in such high demand, especially in the region’s maritime industry, that the college established a mobile welding lab as part of a partnership between TCC, the city of Norfolk and Lyon Shipyard.
Statewide effort
In Southwest Virginia, Mountain Empire Community College in Big Stone Gap created a workforce training pipeline for medical records professionals that led Rochester, New York-based eHealth Technologies to create 160 new jobs in Scott County.
“We were building a pipeline before the opportunity for employees was there,” says Vickie Ratliff, retired vice president of academic services at Mountain Empire.
Ratliff credits Will Payne, who leads regional economic development organizations InvestSWVA and Coalfield Strategies LLC, with connecting eHealth with Mountain Empire.
Payne is also working with four community colleges in Southwest Virginia to explore how manufacturing companies in the region could become part of the supply chain for the offshore wind energy industry being created in Hampton Roads.
Adam Hutchison, president of Virginia Highlands Community College, lived and worked in Texas, the biggest wind energy-producing state, and he believes that making parts for wind turbines could be a good fit for the manufacturing heritage and skill sets of Southwest Virginia, where coal production once flourished.
“We have companies that know how to build and make stuff … and people who know how to build and make stuff,” he says.
Community college workforce training programs are also crucial to advanced manufacturing industries coming into Southern Virginia, where textile and furniture manufacturing once dominated.
Workforce programs in community colleges often work in tandem with the Virginia Talent Accelerator Program. A workforce training program created in 2019 by the Virginia Economic Development Partnership in partnership with VCCS, VTAP provides free custom workforce training and recruitment solutions for companies locating or expanding within Virginia.
A good example of VTAP’s collaborative impact can be seen in Tyson Foods’
$350 million manufacturing plant in Danville, says Mike Grundmann, VEDP’s senior vice president of talent solutions. VTAP created a website to recruit workers, and Danville Community College offered training for the mechatronic technicians Tyson needed to repair and maintain equipment at the facility.
Morrissey, the interim chancellor, says that transfer programs to four-year colleges still account for the largest enrollment demand in community colleges, and she doesn’t see that changing.
The community college system, Morrissey explains, still plays a valuable role in saving students and their families money by allowing them to study for two years at a less expensive community college before going on to a university.
“The governor and the secretary of education have both acknowledged the value of bachelor’s degrees,” she says. “That’s workforce preparation, too.”
Southwest Virginia has two new centers welcoming outdoor adventurists and another on the way.
With a grand opening set for August, the $1.5 million Back of the DragonWelcome Center opened in Tazewell in May 2020. In Coeburn, Spearhead Trails opened a 22,000-square-foot activity center in its renovated Coeburn headquarters last year. And the $2.67 million Three Rivers Destination-Discovery Center should open in St. Paul in 2025.
Outdoor adventures are part of the region’s transition from a coal-based economy — and “outdoor adventure” is an expansive term.
“Our biggest draw is motor sports,” explains David Woodard, the Heart of Appalachia Tourism Authority’s executive director.
More than a decade ago, retired veteran Larry Davidson enjoyed riding his motorcycle through the 438 curves and 3,500 feet of elevation change on the 32-mile stretch of Virginia Route 16 between Marion and Tazewell. Davidson dubbed it the Back of the Dragon and persuadedlocal tourism folks to promote it. According to the Virginia Tourism Corp., tourism brought more than $36 million to Tazewell County in 2019.
Appalachian Back Roads, a collection of 14 routes for riding and driving enthusiasts, grew from that concept. “We jumped on their coattails,” Woodard says.
“It’s not unusual to roll into Big Stone Gap or Tazewell or St. Paul or Pennington Gap and find a car club of Porsches or Maseratis or — I mean, just pick one, even Beetle bugs,” Woodard says.
The original Back of the Dragon welcome center was a doublewide trailer. Now it’s a 5,000-square-foot building featuring self-serve ice cream, self-serve beer and a coffee shop.
Spearhead Trails has more than 600 miles of off-road vehicle trails, equestrian, biking and hiking trails, nine river access points and a shooting and archery range. The center features a climbing wall and axe-throwing lanes. They’re working on adding cornhole, basketball and archery. The Virginia Beach-based Institute for Service Research estimates the headquarters alone will add $637,000 to the local economy annually.
The money is significant for the localities, but to Woodard, the new tourism industry’s biggest impact is that it allows families who have lived in the area for generations to stay.
“That means a whole lot when somebody’s kids don’t have to leave to find work,” he says. “If they can start a business and they can make a decent, good living out of it, that’s a big deal.”
David Argabright’s background in construction came in handy when Feeding Southwest Virginia opened its Community Solutions Center in a high-crime, poverty-stricken area of Roanoke.
“I actually was over there for six months in a hard hat overseeing the building of that,” says Argabright, chief financial officer of Feeding Southwest Virginia. Before joining the Salem-based regional food bank, Argabright oversaw development projects for family business Argabright Contractors Inc. for 35 years. For him, the hard hat was nothing new.
For Feeding Southwest Virginia, however, his presence on the job site meant the nonprofit could save some money and ensure compliance with funding requirements of municipal partners on the project. The center opened in May 2018 as a community gathering space and a culinary training center that helps feed at-risk children in Roanoke. Partners in the project included the Northwest Roanoke community, the city of Roanoke, Food Lion and the Roanoke Police Department.
It’s not surprising that Argabright jumped in to oversee construction, as he’s known for “doing whatever it takes,” says Pamela Irvine, president and CEO of Feeding Southwest Virginia.
“His passion for the work that we do … drives him to go beyond the call of duty and expectations in his role as a CFO,” Irvine says. The food bank serves 26 counties and nine cities.
Argabright’s dedication became even more critical during the pandemic, she says.
“He stepped out of his role as a CFO to work with the [chief operating officer] to secure every type of government funding we could apply for,” Irvine says. “He tried continually to get access to resources we wouldn’t get otherwise.”
During that time, Argabright became a bit of an expert on federal Paycheck Protection Program loans and “also shared that knowledge with other organizations around the state,” Irvine says. Instead of outsourcing the PPP application work, which would have cost significantly more, Argabright spent countless hours preparing it himself. Feeding Southwest Virginia ended up securing a PPP loan and forgiveness grant totaling $498,000.
Sometimes, he even takes on responsibilities that don’t have anything to do with the organization’s financial security. For instance, there was a time when a flood made it nearly impossible to travel in a nearby county. “He actually drove a truck to deliver supplies,” Irvine says.
Argabright’s financial skills have helped the organization gain grants and earn the trust of partners and donors, she says. “We generate revenue from multiple sources.” Revenue has quadrupled over the past two years, in part because of his oversight and the trust people put in him.
“That’s critical for a nonprofit,” Irvine says.
Before joining the food bank, Argabright had been involved in mission work. He coordinated more than 100 mission trips across five continents. He also founded an organization called Compassion 575, which raises funds to aid poor children in South Asia through sponsored bike rides in the United States. He jokes, “I had to switch my mission field from South Asia to Southwest Virginia.”
Particularly in 2020 and 2021, as food needs escalated in Southwest Virginia, “we had to stretch to meet those needs,” Argabright says. “It’s been challenging.”
Feeding Southwest Virginia runs food distribution centers in Salem and Abingdon and serves as the hub for more than 380 partner feeding programs. An affiliate member of Feeding America, the organization distributes food and grocery items worth about $31 million annually.
“All of our employees have worked so hard, especially in these last three years during the pandemic,” Argabright says. “We’ve moved a lot of food.”
Switching from real estate development in a family business to overseeing the finances of a food bank was a “significant change for me,” says Argabright. He holds a master’s degree in accounting from Liberty University, but it has been decades since he’s worked as a certified public accountant for KPMG. “I’m very thankful to be here. It’s been a great seven years.”
It’s renovating an armory on its main campus in Winchester where National Guard soldiers once trained before D-Day, turning it into a Hub for Innovators, Veterans and Entrepreneurs — the HIVE.
“This building will be a game changer for economic development in the Northern Valley and for Shenandoah University and its partners,” says Shenandoah’s president, Tracy Fitzsimmons.
The HIVE will house a veterans’ center, job training, a business incubator and community gathering areas, all centered on technology fields ranging from cybersecurity to augmented and virtual reality to data analytics and artificial intelligence. It will create pathways to “emerging technologies and jobs that we can only imagine in a space with a deep history,” says Provost Cameron McCoy.
The HIVE will serve as the information technology anchor for the area, building on partnerships already in place, says Frederick White, an executive fellow at the school and an analyst with the U.S. Department of Veteran Affairs.
The university already converted the armory’s detached garage into an e-sports arena.
The $8 million to $10 million renovation of the main armory building should be completed in 2024, with work to begin late this summer or in early fall. Through private donations and local, state and university funds, SU has raised about $3.5 million. It’s seeking a $5 million state grant through Winchester city government.
A ceremonial groundbreaking is planned for Veterans Day to mark the armory’s historic significance. The brick structure — once Virginia’s oldest active armory — opened in 1940 and housed the Virginia National Guard unit (116th Infantry Regiment, 3rd Battalion) that participated in D-Day.
“From this armory, guardsmen served in World War II and every major international conflict since then,” Fitzsimmons says. “It’s where you dropped off your loved ones to serve our communities and country.”
The university acquired the armory in 2006 from Winchester and allowed the National Guard to continue using it until a new armory opened in Frederick County in 2009.
The renovation includes a yearlong effort to stabilize the 18,000-square-foot building, remove asbestos and install new systems. The design will feature open, flexible spaces with glass cubicles to encourage collaboration and will preserve architecture and historic pieces.
“The design will honor the past and cast a vision to the future,” says Wendell D. Brown, lead architect on the armory project and principal with Nashville-based ESa.
Editor’s note: This article has been amended to correct Shenandoah University’s sources of funding for the project. The earlier article stated county and state funds.
As companies across Virginia continue to adjust to workplace changes created by the COVID-19pandemic, many human resources managers say one thing is clear: The way people work has changed for good.
“This is a new work environment — the workplace has changed now,” says Kirstin Shelton, vice president of human resources for Octo Consulting Group, a Reston-based technology company that has about 85% of its workforce on a hybrid work model, with employees alternating some days in the office and some days remotely.
“I think the hybrid model is how things are going to continue going forward,” Shelton
says. “It definitely impacts what we are doing in recruiting. We have seen a shift because of the opportunity a remote workforce allows.”
In a post-COVID workplace, she adds, “employers have really got to be creative on how people do their work. It is no longer about people coming into the office from 8 a.m. to 5 p.m. and sitting at their desk. People are coming in [to the office] for collaboration. They are coming in to connect.”
Nevertheless, for any employer or supervisor, the primary complication with remote and hybrid work remains staff engagement, Shelton says. “When you are no longer physically co-located with your team five days a week for eight to 10 hours, there is just the general lack of being able to read someone’s body language. You have got to be creative and make sure you are connecting with your staff. That is our biggest challenge: ensuring that managers spend time and have the tools they need.”
Finding the right balance between remote and in-office work is a key opportunity for businesses if they want to remain competitive in recruiting, HR managers say.
“The reality is there is a portion of the workforce that simply prefers to be remote,” says Clare Miller, chief human resources officer for Richmond-based Atlantic Union Bank, which has about 2,000 employees in Virginia. “How do you strike a balance between flexibility where it makes sense, while also accounting for the business needs and strategy of an organization?”
Thinking ahead
In April, Atlantic Union announced it was moving to a hybrid work model, in which most of its corporate staff would be alternating between two or three days a week in the office and two or three days of remote work.
Miller says about half of the company’s employees are now working a hybrid work schedule, while about 15% are fully remote and about 33% work in the office full time.
Amid an ongoing labor crunch, companies that offer flexible work schedules have an advantage in recruiting, Miller and other HR managers say. “The current environment is competitive for talent,” Miller says. “I think flexibility is just another lever we can employ.”
Offering hybrid or remote work “has become a bit of a competitive advantage from a recruiting perspective,” says Michelle Link, chief human resources officer for Maximus Inc., a government contractor with more than 34,000 employees spread across all 50 states, including 5,000 in Virginia.
Gov. Glenn Youngkin‘s policy placing strict limits on telework upset many state employees, says Dylan Bishop, a lobbyist for the Virginia Governmental Employees Association. Photo by Matthew R.O. Brown
About half of the company’s employees at a call center in Chester are working remotely, and almost all its employees who worked at a call center in Hampton continue to work remotely. The company also consolidated the two administrative offices it once had in Falls Church and Reston into a single corporate headquarters in Tysons, which reduced its headquarters office footprint from 130,000 square feet to about 90,000 square feet. Employees at the company’s headquarters work a hybrid schedule.
“We are not seeing a slip in our productivity” because of the shift to increased remote or hybrid work, Link says. “Our customers are happy, and we are going to do this for the future.”
The transition has pushed Maximus’ managers to think more about managing for outcomes than managing for time, she adds. “What you want is to manage … what people produce,” Link says. “You don’t want to be focused on when they come and when they go — you want to be focused on delivery.”
The company is also seeing that jobs requiring an in-office presence require extra salary inducements.
“Right now, you need to pay a 10% premium if you want people to be on site and if you are recruiting IT or technical talent, it can be higher than that,” Link says. “Why would they come to work for you on site if they can do the same job somewhere else in a hybrid environment?”
‘Rapidly changing’
With more people working remotely, some companies have decided to scale back on office space while others are taking a wait-and-see approach about office needs.
Atlantic Union, for instance, relocated employees from an office in Caroline County to other locations.
“That change was prompted by our move to a flexible work environment,” Miller said. “We have not yet planned to consolidate any other corporate offices at this time but that is something we will continue to monitor. It is a rapidly changing environment.”
HR professionals need to consider many challenges that employees face in returning to the office for work after two years of remote or flexible work, says Linda Fisher Thornton, an adjunct associate professor at the University of Richmond’s School of Professional and Continuing Studies.
For example, many workers cared for children at home during the pandemic, and people who are required to come back to the office may not have access to affordable or reliable child care, Thornton says.
Additionally, “many people have enjoyed working in their sweatpants or enjoyed working casually, such as out in their backyards, and that is a lot to give up if they go back to working part of the time in the office,” Thornton says.
Thornton also notes that the cost of commuting is an issue because gasoline prices have ballooned, climbing to nearly $5 per gallon in June. Grocery prices also are up, so “resuming the commute back to the office — even part time — leaves employees with a higher added cost as compared to their pre-pandemic commute, representing a higher percentage of an already tighter budget.”
Thornton says remote work has been “a win for employees, improving their quality of life, removing child care barriers and eliminating commuting expenses and time.”
Employers have seen some financial wins from shifting to remote or hybrid work, such as reducing costs for office maintenance and associated overhead. But those that haven’t adjusted for office footprints are facing pressures “not as visible to employees,” Thornton says. Those include “the cost of maintaining empty buildings and campuses,” as well as “the challenges businesses face in building cohesive remote teams, the difficulty retaining good employees with none of the usual on-site perks available, and more.”
Thornton says there is clearly an opportunity for businesses to consolidate office space after switching to hybrid work, but companies should make sure to consider how it will impact workers.
“Employers who make sweeping decisions without considering individual situations will send a message to employees that ‘our needs are more important than yours,’ a message they cannot afford to send during a talent exodus,” Thornton says.
The bottom line, she says, is that “businesses that are not flexible about remote work will be at a disadvantage in recruiting and retaining top talent, because employees enjoy the improved quality of life that remote work affords, and desirable remote job options will exist elsewhere,” Thornton says.
Retention fears
For some companies, the transition to hybrid work came naturally because they were already moving in that direction. For instance, Stride Inc., an education technology company based in Herndon, already had about 85% of its staff working remotely before the COVID-19 pandemic. It ranked No. 6 on FlexJobs’ list of the top companies in the nation hiring for hybrid jobs in 2022.
“We actually saw productivity go up when we went fully virtual,” says Val Maddy, senior vice president of human resources for Stride. With a corporate staff of about 500 people, Stride is downsizing its headquarters office space from 130,000 square feet to about 30,000 square feet.
“I think it is really all about making sure you keep a connection with employees,” Maddy says. “We have instituted more virtual events for individuals to participate in. We do virtual yoga and meditation and high-intensity interval training exercise classes.We do that to promote camaraderie, but also mental and physical wellness.”
While private sector companies grapple with the transition to a more remote work environment, Virginia’s state government employees are dealing with a mandate that they return to office work.
In May, Gov. Glenn Youngkin announced a policy that required state employees to return to in-person office work five days a week by July 5 unless they receive approval for a “telework agreement.” Getting such approval isn’t exactly an easy task — an agency head must approve a worker telecommuting one day a week; teleworking two days a week requires approval from a Cabinet secretary; and telecommuting three days a week or more can only be approved by the governor’s chief of staff.
The policy shift was upsetting for many state employees who have benefited from being able to work from home, says Dylan Bishop, a lobbyist for the Virginia Governmental Employees Association, which unsuccessfully sought an extension until September on the return to office work.
“There were hard and fast deadlines set in place that we were concerned about,” Bishop says, adding that state employees had only two weeks to submit applications to continue at-home work. “We have 122,000 state employees, so to give these folks a two-week turnaround time to submit telework agreements … we were skeptical of that.”
Bishop says a survey of the association’s members, which garnered 400 responses, found that more than 50% were concerned about the rising cost of commuting to work because of gasoline prices.
Another issue cited as a top concern among about 25% of survey respondents was “child care and elder care,” Bishop says. “It takes two to three months to find placement for a child in day care under the best of circumstances, and that problem became more acute in the shadow of COVID.”
While the state workers’ association recognizes that many state jobs, such as law enforcement and corrections, cannot be performed remotely, Bishop contends that mandating in-office work for white collar jobs such as information technology will hurt worker recruiting and retention for state government jobs.
“We have longstanding recruitment and retention issues in state employment, particularly in high-skilled and high turnover positions — that is IT, health care and public safety,” he says. “The No. 1 reason attributed to issues with recruitment and retention is compensation. The average state employee’s compensation lags the market by about 10%.”
This issue predated the pandemic, Bishop says, and flexible work options are one way that the state government could compensate for its inability to compete with private sector wages.
Telework and hybrid work, Bishop says, would make “state employment more appealing and [make] it easier to keep people in the commonwealth.”
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