Since April 2019, VDOT has awarded 313 contracts worth a collective $455 million to companies that qualify under the Disadvantaged Business Enterprise (DBE) and Small, Women-owned, and Minority-owned Business (SWaM) federal and state programs for government contractors.
“Thank God for this program,” says William André Gilliam, president of Metals of Distinction Inc., a Hampton-based welding and metal fabrication company that has so far been awarded $1.6 million in renewed contracts through DBE, a federal program run by the U.S. Department of Transportation. “I wish I could get more work like this, but unfortunately I only seem to get this kind of opportunity when there’s a requirement for DBE.”
The federal Department of Transportation designates DBE-qualified businesses, but certification is fully accepted throughout the state if a business is bidding for a contract in a project receiving federal transportation funds. SWaM certification, which is granted by the state Department of Small Business and Supplier Diversity, is needed for state contracts that don’t include federal funding.
Then-Gov. Ralph Northam directed executive branch agencies in 2019 to allocate more than 42% of discretionary spending to certified SWaM businesses, a policy that has not changed under Gov. Glenn Youngkin.
To qualify for DBE status, a company must meet certain criteria, including posting gross receipts not exceeding an annual average of $26.29 million over the previous three fiscal years. Also, business owners cannot have a personal net worth that exceeds $1.32 million, excluding equity in a primary residence and ownership interest in the company.
Among Virginia’s criteria to be certified as a small business for SWaM purposes, a company must be at least 51% independently owned, have fewer than 250 employees and report average annual gross receipts of $10 million or less for the past three years. To qualify as women- or minority-owned, companies must be majority-controlled by a woman or any person of minority ethnicity. In all three cases, the majority owners need to be U.S. citizens or legal resident aliens.
Queen Crittendon, VDOT’s civil rights manager for the Hampton Roads district, says SWaM- and DBE-certified businesses have important roles to play. Photo by Mark Rhodes
Road contracts
Typically, a certain percentage of work on large transportation projects such as the HRBT is allocated to DBE- or SWaM-certified vendors.
The expansion of HRBT to four two-lane tunnels, which began construction in October 2020 and is expected to be finished in November 2025, pledged 12% of its contracts to DBE businesses and 20% to SWaM companies, says Brooke Grow, VDOT’s communication manager for the project.
As of early August, that goal had not been met, Grow notes, but the Hampton Roads Connector Partnership, the design-build joint venture running the project, “is tracking to achieve the established contract goals and demonstrates good-faith efforts in doing so.”
Queen Crittendon, VDOT’s civil rights manager for the Hampton Roads district, calls the inclusion of certified businesses “an important part of our culture. We want to ensure the maximum opportunity for small businesses to bid and participate in the procurement and contracting process. With the increase in federal transportation funding for highway and bridge improvement, VDOT will need the support of all businesses, including minority- and women-owned businesses, to meet the demands.”
Although out-of-state companies can apply for certification, Grow says 80% of the DBE/SWaM companies involved with the expansion project are based in Virginia, and 52% hail from Hampton Roads.
One of those is Chesapeake-based Bryant-Ritter Hewitt Electric Corp., a 70-employee company founded in 2005. It has a contract through DBE and qualifies as both majority woman-owned and as a small business, says President Susan Ritter.
Her company has been DBE-certified for more than 10 years, and its contract is worth around $12 million for work performed over four years.
It’s one of the three largest contracts the company has ever won and will involve several tasks, including installing around 50 overhead sign structures along the revamped span.
Ritter says state procurement programs for businesses like hers are “critically important. They’ve allowed our company to grow tremendously in both size and scope.” She adds that it’s “an honor” for her company to be working on the HRBT, which opened in 1957.
Since Bryant-Ritter Hewitt received its certification, Ritter says, DBE contracts have made it possible for the company to expand from mostly local work to larger jobs in the Richmond area and now a major project in Maryland: assisting with the replacement of the Harry W. Nice Memorial Bridge, which spans the Potomac River, connecting the Northern Neck to southern Maryland.
Gilliam, too, says that DBE contracts have been invaluable to his business, which was started by his father in 1969. In 1999, Gilliam took over the welding company, which now has12 employees, including Gilliam and his wife. Before winning contracts for work on the HRBT expansion, Metals of Distinction was awarded contracts associated with the expansion of the Midtown Tunnel that connects Norfolk and Portsmouth, and which was completed in 2017.
Working on big projects isn’t a magic bullet for future success — Gilliam says that “after the Midtown Tunnel, it seemed like no one knew who I was, so I had to get back out and grind at my business” — but he is thankful to be part of the HRBT expansion. His single $25,000 contract has been renewed dozens of times and has generated between $1.4 million and $1.6 million during the past two years.
“I just wish other contractors could see how I operate my business,” he says. “With these contracts, at least I’m able to prove myself worthy.”
But time passes, minds change, and sometimes there’s turnover at the top.
In August 2021, Dr. Richard Homan, who’d led EVMS for nearly a decade, retired. By December, Dr. Alfred Abuhamad, then the medical school’s interim president, signed an agreement with ODU’s new president, Brian Hemphill, and Howard Kern, then president and CEO of Sentara Healthcare, pledging “to explore ways closer alignment or affiliation could enhance their collaborative efforts to strengthen educational research and health care outcomes in Hampton Roads.”
And this summer, ODU hired Dr. Alicia Monroe as chief integration officer and senior adviser to Hemphill, a two-year position to establish an academic health sciences center with EVMS and Sentara Healthcare. In July, Hemphill wrote a letter to ODU’s faculty and staff stating that the university’s goal is “to develop a comprehensive plan to integrate ODU and EVMS in 2023.”
Even so, school officials weren’t quite ready to say the two institutions are merging.
In response to questions from Virginia Business, the two schools released a joint statement stating it was premature to respond to the question, “Is EVMS becoming an arm of ODU?”
Aubrey Layne, Sentara’s senior corporate vice president and chief of staff, didn’t share that hesitation, however.
“EVMS is affiliating or actually combining with Old Dominion as part of their plan to become a sustainable medical school,” he said during an August interview.
To make the partnership official, Virginia’s General Assembly would have to give the OK, according to both EVMS spokesperson Vincent Rhodes and Layne, who added that he, along with officials from the two schools, met with Gov. Glenn Youngkin in August about the plan.
A spokesperson from the governor’s office confirmed that Youngkin “had a meeting with the appropriate partners to gather additional information on the collaboration between the entities,” without providing more detail.
“I think the political will is there,” Layne says.
A joint effort
Founded in 1973 as a public institution not affiliated with an undergraduate university, EVMS took shape after community leaders became alarmed about a physician shortage in the region.
“We grew out of the community, and collaboration is in our genes,” says C. Donald Combs, EVMS vice president and dean of the School of Health Professions.
Close cooperation between Sentara and EVMS hasn’t always come naturally, though. In 2020 and 2021, the medical school paid Vienna-based public relations firm Tigercomm $497,000 for crisis communications and community support work in what Tigercomm President Mike Casey has said was a bid to avoid a potential EVMS-ODU-Sentara merger “being pushed by Sentara” at the time. Tigercomm’s work for EVMS came under media scrutiny in 2021 in a series of articles focusing on the fact that Casey had co-founded in 2011 an investigative watchdog blog, Checks & Balances Project, that had been publishing a series of articles critical of Sentara since late 2020. EVMS and Tigercomm were adamant that they didn’t pay C&BP for its coverage of Sentara, and Casey notes that he does not have “ownership or control” of C&BP or its content.
So, how did Sentara and EVMS go from that awkward place to embarking on a partnership with ODU?
“A lot of it has to do with a change in leadership,” Layne says. Aside from Abuhamad, who became EVMS’ permanent president, provost and medical school dean in June, Hemphill became ODU’s ninth president in July 2021, succeeding John Broderick. At Sentara, Kern retired at the end of August, with Dennis Matheis becoming president and CEO in September.
Hemphill, who served as Radford University’s president for five years, came to Norfolk after overseeing the 2019 merger between the Jefferson College of Health Sciences and Carilion Clinic to create Radford University Carilion, which offers undergraduate and graduate degrees in health sciences.
In his June letter, Hemphill wrote, “Although much work remains ahead, the vision is clear. ODU and EVMS face an important moment with the promising potential to achieve more through a full integration, which is both impactful and inspiring.”
Sentara, ODU and EVMS officials also note that collaboration will also help improve health care for Hampton Roads residents.
Bottom line
In terms of finances, Sentara makes the argument that EVMS needs to partner with a public university — like Virginia Tech’s partnership with Carilion Clinic to create the VTC School of Medicine — to receive “state funding parity with other Virginia schools” and be better positioned to raise philanthropic dollars.
For fiscal year 2021, EVMS had an annual budget of about $278 million. About $31 million of that came from the state government. Sentara gives more than $60 million to the school for education and training each year, according to Layne. In March, Sentara also donated $6 million to EVMS, ODU and Norfolk State University to develop the ONE School of Public Health, which will be Virginia’s first such institution.
“The issue here has to deal with additional funding, so that the EVMS is a sustainable organization into the future,” Layne says.
Underlying the entire merger discussion is the severe staffing shortage affecting the health care field.
The U.S. Department of Health and Human Services reported this year that about 18% of Virginia hospitals are “critically understaffed,” a situation Virginia state Sen. Jen Kiggans, R-Virginia Beach, is familiar with as a nurse practitioner.
“We’ve been in a shortage of primary care providers for a while,” she says. “And then, on top of that, is our mental health care provider workforce challenges.”
Kiggans says a merger between EVMS and ODU would be “instrumental” in bolstering the region’s health care workforce pipeline. “It keeps us competitive with places like Charlottesville and U.Va. and even Richmond and VCU.”
By joining forces, Sentara, EVMS and ODU could share staff members and health science libraries, as well as bolster clinical opportunities for students, she adds. “None of these individual institutions of learning can survive independently.”
Editor’s note: This story has been corrected and updated to clarify the authorship of a blog that published stories about Sentara Healthcare. The Sentara stories were published on the blog Checks & Balances Project, which was co-founded by Mike Casey, the president of public relations firm Tigercomm, but Casey has said he doesn’t own or control C&BP or its content; C&BP is a client of Tigercomm.
Developer Brett Burkhart had to nail down $323 million in financing, obtain a slew of permits and get Chesterfield County to offer performance grants or tax rebates. That took seven years, but he finally got it done, and clearing is underway on the 105-acre site on Genito Road across Route 288 from the county’s River City Sportsplex.
The centerpiece of The Lake, a 13-acre artificial pond with a tow cable, will accommodate water skiers, wakeboarders, paddle boarders and kayakers. It’s anticipated to open in late 2023.
“A lot of developments now are being anchored by entertainment elements,” says Burkhart, who started two entities, Lake Adventures LLC and Flatwater Ventures LLC, to run the park, which will also include a six-acre surf pool, one of just a handful of such facilities in the country.
The Lake will offer a 170-room hotel and 150,000 square feet of retail, restaurant and entertainment space. More than 1,000 residential units and 100,000 square feet of office space are in the mix, too, but a major priority for the county is the commercial piece of the project and its accompanying tax income.
“It is glaring that we are losing opportunities,” says Chesterfield Board of Supervisors Chairman Christopher Winslow, who notes that 15,000 people can converge on Chesterfield for sports tournaments at the River City Sportsplex but then head to Richmond or other localities to seek restaurants, lodging and entertainment.
Under an agreement approved by the board in August, The Lake will receive county tax rebates of up to 80% over the next two decades for mixed-use and commercial development, although residential sections are not part of the deal. Its total value is estimated at $27 million to $28 million.
Winslow voted for the incentive. A report by WRIC 8News noted that he received a $2,500 campaign donation from Lake Adventures in May, but Winslow told the Chesterfield Observer he had supported the project before the donation.
Chesterfield County Director of Economic Development Garrett Hart III says that county funding, regardless of the incentives, “is not at risk at any point in the process.”
Like Winslow and Burkhart, Hart is counting on The Lake to attract not just destination visitors but also tourists heading to the Sportsplex.
“I expect one out of 10 [of Sportsplex visitors] to get wet,” Hart says.
On Sept. 14, Virginia Business held its Power Up networking reception, recognizing the executives named to the 2022 edition of the Virginia 500. During the event, which was held at
the Boar’s Head Resort in Charlottesville, Virginia Business Editor Richard Foster recognized the lifetime achievements of the 22 leaders named to this year’s Virginia 500 Living Legends list.
1. Bernie Niemeier, Virginia Business 2.Morton G. Thalhimer Jr. 3. Timothy Faulkner, The Breeden Co., and Paul Gaden, Sentara Healthcare 4.Joseph W. Montgomery, Wells Fargo Advisors; John Jimenez, Quirk Hotel; Carrie Bartlett and Whitney Hancock, USI Insurance Services; Linda Montgomery 5.Greg Wallig, Grant Thorton LLP 6. Kameron Gary, Reto Corp.; Merthia Haynie, Abilities Abound Physical Therapy; Earl Gary 7. Brooke Hall, Accent Professional Recruiting; Maggie Reed, Gilbane Building Co. 8.Robert M. “Bob” Tata, Hunton Andrews Kurth LLP; Del. Anne Ferrell Tata, House of Delegates, 82nd District 9.Elizabeth McClanahan, Virginia Tech Foundation; Tiffany Dabney, D & H Construction 10. Jonathan Jasmin-Benoit, Embassy of Canada; Kathleen Magee and Melissa DiBona, Operation Smile 11. Tricia Dunlap and Claire Guthrie Gastañaga, Dunlap Law PC 12. Amy and Richard Thalhimer, Georgetown Enterprises Inc. 13.Brian Revere, The Breeden Co. 14. Matthew Guthrie, Truist 15. Allison Gregory, Truist; April Pruitt, Edward Jones
One of the East Coast’s most prime pieces of undeveloped real estate, Virginia Beach‘s Rudee Loop, could soon find new life.
In August, the city released four proposals that could turn the 11-acre site from what Vice Mayor Rosemary Wilson described as a concrete-strewn “mess” into a multiuse destination for surfers, anglers and other tourists. Sitting at the southernmost portion of the city’s Oceanfront area, the land would become home to green space and a parking garage in each of the proposals, while still catering to fishing and surfing enthusiasts.
The competing development proposals come from some familiar names.
Bruce Smith Enterprise LLC, Armada Hoffler Properties Inc. and Washington, D.C.-based commercial real estate firm Madison Marquette propose adding three hotels totaling 433,000 square feet, as well as 132,000 square feet of residential and more than five acres of parkland. Also included would be 75,000 square feet for retail and food businesses and an outdoor performance space.
A Pro Football Hall of Fame inductee who played for the Buffalo Bills and the former Washington Redskins, Smith says his idea builds on other projects — including the nearby $350 million Atlantic Park surf park, set to start construction this fall.
A second proposal from Virginia Beach-based Gold Key | PHR, known for its Oceanfront Cavalier Resort, has pitched a 7-acre park, 177 units of multifamily housing and 5,600 square feet of commercial and retail space. It could also add a boutique hotel with about 250 rooms. Gold Key | PHR CEO Bruce Thompson says the Oceanfront’s core is better suited for density than Rudee Loop. “The thing that was missing was really a unique and large community space, [which] residents and tourists could all enjoy,” he says.
A third proposal from the nonprofit Virginia Gentlemen Foundation, which developed a special needs playground at Rudee Loop, would include a skate park, a stage, a surf museum and nonprofit concession space.The organization has partnered with international design firm EDSA and Gold Key | PHR, which would handle construction.
Finally, the city’s own parks and recreation department has proposed developing the site with a skate park, fishing pier, stage, playgrounds and food truck plaza.
Between 1986 and 2005, Virginia Beach spent more than $18 million purchasing Rudee Loop.
The city will spend the next couple months soliciting public input on the proposals, says Linwood Branch, the city councilmember representing the Lynnhaven area. “This is a major decision.”
Artwork adorns almost every wall of Joan Brock‘s immaculate and welcoming Oceanfront home. It’s in the powder room and big, open kitchen. It takes pride of place in a downstairs office and over a fireplace mantle. Large, framed pieces dominate a bright stairwell landing and cozy upstairs sitting room.
It’s the accumulation of a passion for collecting that she and her late husband, Macon F. Brock Jr., co-founder of Dollar Tree Stores Inc., shared — one that began modestly with the Virginia Beach Boardwalk Art Show and street vendor purchases from trips abroad and blossomed into a gallery-worthy display befitting her early 20th-century home.
Brock wanted to ensure the pieces would have a home beyond hers. Norfolk’s Chrysler Museum of Art, which she and her husband had long supported, was always her first choice.
“It’s an educational hub,” Brock says. “And as a philanthropist, the main thing that Macon and I have always pushed is education. … If you go to the Chrysler Museum, you’re going to come away from there learning something.”
“The Album,” by William Paxton McGregor
As an economic boost to the community, Brock calls the Chrysler “our shining star.”
Museums in the U.S. receive little federal or state funding. Grants can help fund special exhibitions and conservation projects, and recently approved Norfolk and Virginia Beach city budgets include support for their respective art institutions. But to grow, nonprofit art museums rely on the generosity of donors and philanthropic giving.
“They are our lifeblood,” says Erik Neil, the Chrysler Museum’s director and CEO. The museum has endowed funds for art acquisitions, but not enough to buy a lot of it, he says. And “artwork that is important and adds to our collection, it doesn’t come cheap.”
Announced in May, Brock’s $34 million gift to the Chrysler includes 40 pieces of American art spanning from the post-Civil War period to the mid-20th century and created by the likes of John Singer Sargent, William Merritt Chase and Charles Ephraim Burchfield. At least 15 artists’ works are new to the museum. All will help the Chrysler tell a better, more complete story of art in America, Neil says.
A selection will be exhibited in the winter of 2023-24, along with a printed catalog about the artists and their works.
Brock’s gift also endowed two positions at the museum, covering salary, benefits and work-related travel. One is the post Neil has held since 2014, now retitled as the Chrysler’s Macon and Joan Brock Director, as well as a newly created curatorial assistant position.
Supporting the Chrysler’s curators was especially important to Brock. “Your curators are your ambassadors. They’re the ones that go out into the field, looking for art, looking for shows, espousing the benefits of the Chrysler Museum,” she says. “The staff does a fabulous job of running the museum. The curators are the ones that bring life to it.”
The Chrysler has five endowed positions. That helps free up money for other areas of the museum’s operations, Neil says.
In addition, Brock’s gift supports an expansion of the Chrysler’s Perry Glass Studio, the primary focus of a $50 million capital campaign launched in June that seeks to improve accessibility to the permanent collection, increase learning through art and sustain the financial strength of the museum.
Charlotte Potter Kasic, executive director of the Barry Art Museum at Old Dominion University in Norfolk, says a gift this year of 165 works in 20th-century and contemporary glass sculpture from the Leah and Richard Waitzer Foundation has inspired ODU to add more glassblowing classes, offered in partnership with the Perry Glass Studio.
“[We’re] really trying to increase the students’ awareness now that they have a larger collection to pull from and be inspired by,” Kasic says. A recently established bachelor’s degree in fine arts in glass was also created through philanthropic support.
Between the Chrysler, the Barry and the Glass Light Hotel & Gallery, which opened in 2019 downtown, “Norfolk has the largest collection of glass to be viewed for free in the world,” says Kurt Krause, president and CEO of VisitNorfolk. The Glass Light features the collection of Patricia and Douglas Perry, local philanthropists who have been a driving force behind much of the creative development seen in downtown Norfolk, including the Chrysler’s glass studio that bears their name. “When you look at all the different pieces of what makes us unique and special, that drives business of all kinds into our city,” Krause says.
The Chrysler and the Virginia Museum of Contemporary Art (MOCA) in Virginia Beach both anchor districts featuring eclectic mixes of eateries, shops and public art where developers have invested millions.
“At Her Ease,” by William Merritt Chase
Kate Pittman, executive director of the ViBe Creative District, says Virginia MOCA features work by world-class artists that her arts district couldn’t attract on its own.
As a noncollecting museum — one that doesn’t maintain a standing collection but rather reinvents itself through changing exhibitions — Virginia MOCA doesn’t receive gifts of artwork, nor does it currently have endowment support, according to Director and CEO Gary Ryan. But it shares many of the same supporters as the Chrysler, she says, adding that individual giving has grown 150% and noting the MOCA’s recently created $10,000-and-above donor level.
The ViBe and Virginia MOCA share a symbiotic relationship that Pittman and Ryan say creates opportunities for unique partnerships. A recent fundraiser for the museum featured original designs by noted New York artist Ryan McGinness, a Virginia Beach native and MOCA board member, on limited-edition surfboards, skate decks and hand-painted T-shirts that were produced and sold by ViBe-based surf shop Wave Riding Vehicles.
Pittman says the museum and arts district’s community leaders are connected in support of a similar mission: to show how culture is vital to a healthy economy. An economic impact study released in 2017 by Americans for the Arts found that nonprofit arts and culture was a $87.7 million industry in Virginia Beach, supporting 2,875 full-time equivalent jobs annually. An updated study on the arts’ impact on the South Hampton Roadsregion is expected in September 2023. It’s being conducted by the Norfolk-based Arts Alliance in partnership with Americans for the Arts.
Says Pittman: “Art and economy, they go together, but they both thrive.”
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.”
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