Athough casinos being built in four Virginia cities have grabbed the lion’s share of media attention, construction is also underway on The Rose, a $400 million gaming facility and hotel in Prince William County that represents an additional outcome of the state’s 2020 casino legislation.
Colonial Downs Group is building the hotel and conference center with 175,000 square feet of gaming space and eight restaurants on the former site of the Dumfries landfill. The project’s first phase, including 155 hotel rooms and an 80-acre public park, is expected to open in late 2023, according to Colonial Downs Group Chief Operations Officer Aaron Gomes.
The Rose will replace the Rosie’s Gaming Emporium that currently operates historical horse-racing machines in Dumfries, a town of about 5,000 people with an operating budget of $5.8 million.
Once it opens, The Rose is expected to generate $10.9 million in annual tax revenue for Dumfries and another $6.7 million for Prince William County.
When legislators in 2019 began debating a new law to allow five economically distressed Virginia cities to approve casinos, the historical horse racing industry pointed out that new competition from casinos would hurt their business model, making it harder for their slot-like machines to provide the revenue intended to keep live horse racing happening at Colonial Downs Racetrack in New Kent County.
“Historical horse racing operations were intended to lay the groundwork to bring horse racing back to Virginia,” says state Sen. Scott Surovell, D-Fairfax. “The proceeds from these terminals are used to fund the purses at Colonial Downs.”
As a compromise, the state raised the cap on the number of betting machines authorized in the state from 3,000 to 5,500, opening the door for Colonial Downs to expand on its 150-machine gaming center in Dumfries. The Rose could have as many as 1,800 machines.
Casinos are being built in other areas of the state (Bristol, Danville, Norfolk and Portsmouth), in part because local governments in Northern Virginia did not show much interest in the proposal to allow casinos to be built.
“I think eventually there will be a discussion about that,” Surovell says, adding that the state should try to recoup some of the revenue from the MGM National Harbor Casino, located in Oxon Hill, Maryland, just across the Potomac from Alexandria. “$300 million a year goes to Maryland to pay for their schools.”
Vinton has been reinventing itself over the past decade, using public-private partnerships to convert old, vacant buildings into bustling modern developments.
Now that the small eastern Roanoke Countytown has attracted new residents and visitors, the town’s new focus is on improving its transportation, walkability and infrastructure.
“We really had a renaissance the last five or six years,” says Town Manager Richard “Pete” Peters.
During that time, Vinton has converted two former schools into apartment complexes and transformed a public library into a Macado’s restaurant.
The historic but long-vacant Gish Mill is set to open in early 2023 as a mixed-use project with a restaurant, market and hotel rooms, and the former Vinton Motors building reopened in January 2021 as a pizza parlor, adding a coffee shop in November 2021.
In July 2021, The McDevitt Co. bought six downtown parcels from the town for a total of $10 in exchange for a commitment to invest $12 million in a hotel with between 90 and 100 rooms, improve the surrounding infrastructure and meet certain revenue goals. The hotel should be open by spring 2023 and will receive a 50% rebate on bed taxes for the next 10 years as part of the deal.
Several of the projects have followed that model — the county or town sells a property eligible for historic-tax credits to a developer who will invest the millions that it takes to bring it back to life.
“It’s kind of like one thing has led to another, and they are feeding off each other and generating jobs [and] tax revenue and repurposing underutilized space,” says Roanoke CountyEconomic Development Authority Director Jill Loope.
Several projects, including new crosswalks and an updated stoplight system, are in the pipeline, aimed at getting people downtown without clogging up roads with traffic.
The town also is helping property owners restore storefronts to their original 1950s look. The town’s façade improvement program reimburses 50% of the cost of restoring commercial storefronts, up to $5,000.
Figuring out how to use new tax revenue generated by the redevelopment to improve life for the town’s new residents and visitors is a fun challenge, says Vinton’s town manager.
“The next phase is, ‘What do we do next?’” Peters says. “Now that we’ve invited the folks here … these redevelopment projects have created the revenue for us to reinvest in the infrastructure and the public amenities.”
The Broadway blockbuster “Hamilton” generated more than $1.2 million in admissions taxes for Norfolk during its monthlong engagement at Chrysler Hall in December 2019. However, city officials warn that similar productions could bypass Norfolk unless the theater undergoes major renovations.
City Manager Chip Filer has proposed $76 million in upgrades, including adding loading docks, expanding the box office and concessions spaces, updating the sound system, adding women’s restrooms and installing a center aisle to make it easier for patrons to reach their seats. Renovations could begin in 2023 and are expected to take 18 to 24 months, during which Chrysler Hall would be closed, with some shows performed at the Harrison Opera House.
Refurbishing the 50-year-old performance hall would ensure it continues to draw touring companies from major Broadway productions, Filer says. “Larger shows like ‘Hamilton’ and ‘The Lion King’ need multiple bays for loading and unloading sets and equipment. As shows get larger, we are becoming increasingly concerned that if we don’t make renovations, some of those shows will pass us by.”
To help underwrite the project, Filer has proposed using $40 million of the city’s $154 million in federal American Rescue Plan Act funds. About $30 million would come from the city’s 2019 capital improvements plan, historic tax credits and philanthropy. City Council was expected to vote on using the ARPA dollars by early February. If council rejects Filer’s proposal, the refurbishment would become part of the city’s annual budget process in the spring.
“We have to do the project so we don’t lose shows,” Filer says. “Chrysler Hall is an anchor experience venue in the city. If an individual buys an experience, including a hotel room, a night out for dinner and tickets to a performance, that generates about $50 in local revenue.”
The 2,500-seat Chrysler Hall has the largest seating capacity of the region’s performance venues, says John Rhamstine, director of SevenVenues, which manages the theater. “For that reason alone, we get most of the touring theatrical shows. Some of the biggest touring shows in the country have played our building, and that creates a financial engine in downtown Norfolk.”
Rhamstine notes that downtown restaurants were booked to capacity and parking facilities filled during the “Hamilton” performances. “It becomes a tourist destination and a very important part of what the city’s budget is built on every year.”
On Jan. 15, Republican Glenn Youngkin was sworn in as Virginia’s 74th governor on the steps of the state Capitol. Photo courtesy governor’s office.
Canadian Centre for Diversity and Inclusion founder and CEO Michael Bach delivers the keynote address at the Hampton Roads Chamber of Commerce’s Dec. 15, 2021, Diversity, Equity and Inclusion Forum. Photo courtesy Hampton Roads Chamber.
L to R: Daughter-and-mother duo Morgan and Crystal Wellman pose outside their soap shop, Sugar and Spruce, for National Bubble Bath Day. Photo courtesy Fredericksburg Economic Development & Tourism.
L to R: Wise County Building Inspector Jimmy McElrath, Wise County Administrator Michael Hatfield, Wise County Industrial Development Supervisor Brian Falin and Virginia Energy Director of Coal Programs Randy Moore display the county’s SolSmart Gold designation on Dec. 15, 2021. Photo courtesy Wise County.
A nurse with Bon Secours speaks to former Washington Football Team wide receiver Gary Clark during a Dec. 11, 2021, COVID-19 vaccination event held at the Bon Secours Training Center in Richmond by NFL Alumni Health, the Centers for Disease Control and Prevention, the Richmond and Henrico Health Districts and Bon Secours. Photo courtesy NFL Alumni.
With $200,000 in state and federal grant awards announced in October 2021, organizers of the Black- and Brown-Owned Business Growth Program, known as B-Cubed, hope to attract more business owners of color to the region and help existing businesses grow.
Launched in February 2021 as an initiative of the Harrisonburg-Rockingham Chamber of Commerce‘s Diversity Business Council, B-Cubed is a partnership also involving James Madison University, Harrisonburg’s Department of Economic Development, the Shenandoah Valley Small Business Development Center and Harrisonburg Downtown Renaissance.
Harrisonburg City Council Member Christopher Jones was alarmed when he saw national studies that found Black-owned businesses were failing at a vastly higher rate than white-owned businesses amid the pandemic. Traditional programs to help minority business owners often miss the mark, Jones says, because of barriers such as cumbersome application processes and office hours that aren’t accessible for entrepreneurs working full-time jobs.
“We needed to come up with a program that spoke to Black and brown people and met them where they are,” Jones says.
To gain assistance from B-Cubed, business owners complete a “participation form” — intended to feel more welcoming than an application — and are connected with regional business development groups, the chamber and mentors that can provide networking and business services.
B-Cubed also provides technical assistance, such as legal, accounting and website development consultations. Participants can receive grants of up to
$3,000 to help implement their business goals. Jones anticipates grant amounts will increase this year.
Tisha McCoy-Ntiamoah, owner of PrePOPsterous Gourmet Popcorn, a Bridgewater-based retail and e-commerce popcorn company, used a B-Cubed grant to improve her company’s website and to work with an attorney to create a nondisclosure/noncompete agreement for her employees. It was an important tool to help grow her business, she says, helping her make new hires without fear of jeopardizing her proprietary recipes.
The B-Cubed team was able to point her to local attorneys who specialize in such work, an example of the value of connecting business owners with established community networking circles.
“Once I received the grant and was ready to work with an attorney, I didn’t have to search for one on my own,” McCoy-Ntiamoah says. “It really took the burden off me.”
The online version of this article includes additional material from Virginia Business’ interview with Pharrell Williams.
Pharrell Williams is a 13-time Grammy winner, an Oscar nominee, a fashion designer, a film producer, a music superstar and innovator. He’s also a native Virginian — a point that comes across strongly when he discusses his business ventures and his hopes for his home state.
Within the past few years, Williams, 48, has focused attention on economic development in his hometown of Virginia Beach and neighboring Norfolk, most famously with his April 2019 Something in the Water music festival and the Atlantic Park surf park project under development now at Virginia Beach’s Oceanfront. He also has become something of a patron for Norfolk State University, delivering commencement addresses in 2020 and 2021, as well as last year launching the Elephant in the Room economic conference, a local event he likens to Davos, Switzerland’s World Economic Forum, but focused on the need for equity and diversity in economic development. Last fall, his nonprofit, Yellow, opened its pilot Yellowhab charter school in Norfolk, with plans to open more in the future, focusing on individual learning styles and preparing students for college and the workforce.
Williams’ focus on his hometown has not been without struggle and heartache. In March 2021, his cousin, Donovon Lynch, was shot and killed by a Virginia Beach police officer, and last August, a special grand jury found no probable cause to charge the officer. Williams and other family members have called for further investigation into the shooting, and the tragedy remains a point of pain for the singer.
In September 2021, Williams decided to cancel Something in the Water, which had an economic impact of $24 million in 2019, saying in a letter to the city administration that he believes Virginia Beach is run with “toxic energy.” He wrote, “I wish the same energy I’ve felt from Virginia Beach leadership upon losing the festival would have been similarly channeled following the loss of my relative’s life.”
In January, Williams, who primarily lives in Miami, sat down with Virginia Business to discuss his business endeavors in Hampton Roads, the future of Something in the Water, and how he hopes to make the business case for greater diversity and equity — focusing on “green” rather than Black and white, or red and blue politics.
Virginia Business: What are your plans in Virginia for 2022?
Pharrell Williams: I really want to see us do better as people. I want to see programs, activation, businesses and groups really work together to advance us to a higher level. I think in my own prospective businesses, I think it’s just about us working.
VB: How is Atlantic Park, the surf park and entertainment center you’re developing in Virginia Beach, coming along?
Williams: I was excited to be a part of it, and I am still excited to be a part of it, but … I think Atlantic Park was like my first entrée into understanding that there were some systemic issues with the city. Because while it was a beautiful project and it’s destined to be a big attraction for the Oceanfront and the ViBe [Creative] District, we were met with a lot of resistance. The resistance that we were met with was in terms of things that inhibited the momentum.
We were met with differing philosophy — down to what direction the Oceanfront should go … and we were met with, at certain times, just full-on stagnancy. When I began to ask questions to try to make sense of these things, the answers were … never anything factual. It was always about opinion, and I began to glean favoritism.
That’s when I realized that it wasn’t as unified as it needed to be. Recently, after the death of my cousin, Donovon Lynch — the way that it was handled and a lot of the energy around it — and a couple of other things, it pushed me back a bit.
That’s when I just publicly said, “Listen, if the city wants to support me at this point, the only thing that I’ll be thinking about is this project.” I think it actually will have more than just the benefit to the Oceanfront, but there’d be a big benefit to the whole city of Virginia Beach. I wanted to focus my energy there, because I felt like in all other aspects, I’ve just been let down.
I said, if the city really wants to support me, then get behind a project that’s going to encourage some of the other people in the business community to broaden their horizons. Virginia Beach is Virginia Beach, but Virginia Beach honestly is one city in a very powerful state. The state of Virginia has been very influential.
VB: You’re also part of a team proposing the Wellness Circle, a $1.1 billion redevelopment plan for Norfolk’s Military Circle Mall, which would include a 15,000-seat arena and a 1-mile trail to be called the Wellness Loop. There are several competing redevelopment plans, but can you tell us about why you got involved with it?
Williams: I heard about the opportunity and that the city was looking for a partner or partners to come in and bring a fresh vision to the region. I immediately thought about the problems. I love turning problems into solutions and then, therefore, assets.
There’s still a sense, even though it might not be racial, there still seems to be a financial and economic segregation. Even if [it’s] not totally planned, the instincts are leaning that way, and that is not a community that’s working together. So, we proposed a project that was centered around an arena because literally, the amount of talent and athleticism that is born and bred in the 757 is unreal. It’s insane.
We need some professional teams here. Whether it’s basketball or hockey, which are two things that I’m working on, we need an arena. Around that arena should be a hotel, [and] there should be food and beverage. There should also be retail. There should also be an automotive partner, who probably runs on electric — that’s probably the most I can say about that. Then we need single-family, market-rate homes, right?
We also need not “affordable houses,” because “affordable” in real estate is an abused term that is appropriated for other things, so we don’t say “affordable.” It needs to have federally subsidized, transitional, workforce housing. I came from that myself. We want it to be transitional.
We want it to be a three- to five-year program where there’s a social worker in place right there to help you identify what you’re really good at. Whether it’s putting you directly into that vocational experience, or sending you to school to figure out what is for you, but transitional. You’re there to get a leg up, figure it out, get out, get on your own and inspire the next person that was just like you.
What I’m describing here is like a chartered community. We know how charter schools work, right? They have wraparound services, so what happens is it ensures the child gets everything that they need. What about making sure the community gets everything that they need? It’s a chartered community. Because literally, maybe [the next] Pharrell [is] coming out of my housing project.
I can come outside, and I look across the campus, and I see a doctor coming out of his single-family, market-rate home, or he’s walking to work. There’s a program over there that’s teamed up with one of the colleges — hopefully, Norfolk State University — that’s over there training folks in the medical field to get ready for their vocation.
Then across the other side of the campus is where the arena is, which is the natural attraction. That keeps the blood pumping, that’s the heart. Everyone [will come] in from a five-hour radius, about 22 million people, if I remember correctly.
Forget Pharrell Williams. You might just be the next Missy Elliott, or you might just be the next Allen Iverson. You might just be the next Pusha T, or the next architect or next academic or next artist, the next author, the next astronaut.
VB:Speaking of charter schools, how are things going at your pilot Yellowhab school in Norfolk?
Williams: I’m very proud of all the work that the folks over at Yellow are doing. It’s thriving because, again, we planned against the pandemic. We weren’t waiting at the mercy and the hands of what could have and what might happen — at the center of which were the needs of these kids.
[I’m] super proud of this partnership that we have with [The] Boeing [Co.], who’s … going to help us build our flagship school, hopefully at the Wellness Loop [at Military Circle]. They’ll be the ones that are helping us when the Lord blesses us with the Wellness Loop. There’s also talks about [starting a school] in Arizona. We’re also in talks in New York, which is super exciting.
We look at it like we want to radicalize education. Education is absolutely broken in the country. We have to meet the kids halfway.
VB: What do you mean by meeting kids halfway?
Williams: Let’s take someone who is dyslexic for a second. There’s a broad spectrum of dyslexia. What you find in a lot of people who have dyslexia, they usually tend to be incredible or exceptional musicians. They end up being exceptional architects. Usually, they end up being artistically superior in other disciplines that are beyond reading numbers and letters. The school system now is primarily graphemic [written communication]. It is also auditory, and it’s also visual as well, but primarily graphemic.
At Yellow, it’s all about assessing how the child learns, how the child retains and how the child applies. The curriculum … is more catered and more aligned with the way that you learn, retain and apply. That, to me, is super important. Because it changes the conversation. That’s how you meet a child halfway.
Wellness Circle LLC’s plan is backed by music superstar and Virginia Beach native Pharrell Williams. Rendering courtesy City of Norfolk Economic Development
VB: What is happening with Something in the Water? Do you ever expect to hold it again, even if it’s someplace else?
Williams: Yes, for sure I have to. Something in the Water — when you talk DMV, they always say, “Man, whether it’s Missy Elliott or Timbaland or Chad Hugo or Michael Vick, it must be something in the water.”
We were willing to bet that would [unify] our home, and also show some of the places of business that they didn’t need to be intimidated by Black people. When there are various agencies and groups [that] continue to push out stereotypes about us, it causes other people who [have] not really taken the extra step to learn or come visit some of our neighborhoods and try to be a part of the solution of change — they start to believe in them.
We are more than your music and food and all the things that you attribute to us when you want to be nice. We’re more than that. We are human beings. God put us on the planet. As dark as our skin is, there’s a lot of light that comes from us.
I think that a lot of the businesses were very appreciative. I think they showed up and did what they were supposed to do. James Cervera [Virginia Beach’s former police chief, who approached Williams about starting the festival] is our hero. They had a problem with the students when they came down [for spring break]. He asked me what I thought we could do. He was the one that agreed with me when I said, “Let’s do a festival.”
The next thing you know, the hotel association, the restaurant association and all those things, they all showed up.
But then, you know how they say, when you take your eye off of the prize for a second, … groups maybe decide that they want to go back to their instincts with their idle time. The fear built back up [and] next thing you know, it goes right back to where it started.
Some of that rubbed me the wrong way when it came to the handling of my cousin’s murder. It was very particularly off-putting when they were so concerned about the future of the festival, but they weren’t concerned about the future of my cousin’s life. They weren’t concerned about the future of my cousin’s legacy and painted him in a way that he wasn’t.
The point [of Something in the Water] still stands, but while we have a community that’s getting to accept such toxicity and extending toxicity, I can’t be a part of that. Atlantic Park … still represents a brighter future. You know what, the citizens and the patrons will get together. They’re going to unify. They don’t need me for that. This is their homework.
VB: During your December 2021 graduation speech at Norfolk State, you said that Norfolk will be a different place in five years. What do you hope to see in terms of equity?
Williams: Well, I was thinking about that because we knew with [the] Elephant in the Room [economic conference], that is going to be our dialogue. We’re already talking to corporations about it. They’re all excited about it. … When we did the first Elephant in the Room last year, there were financial institutions that represented north of $9 trillion in investments.
What some people are afraid of, these corporations are attracted to. They love the potential influx of Black success. They love it. These Fortune 500 companies, nothing is more attractive to them — aside from their bottom line — than it being done in partnership with people of color and the emerging majority. We don’t say minority anymore because that’s not even real. [People of color] are not the minority; we are the emerging majority.
We’re getting [companies] to actually come in and make investments in Norfolk because Norfolk wants it. Norfolk is willing and ready.
Quite honestly, some people may hear that, talk about it and say, “Oh, that’s so materialistic.” We just want you to be a more informed version of materialistic. You don’t have to be superficial to be materialistic. I often say it’s not about red or blue, it’s not even about Black and white, it’s about green.
Whether they’re wearing a whole lot of red, or they’re wearing a whole lot of blue, in their pockets they have a whole lot of green. We’re saying that there is a way to make so much money that you can’t sit once you stuff it your pocket.
If I treat you like a human being no matter if you are transgender, if you are Black, you are mentally challenged, you are a white Confederate, you are an undocumented worker … if the entire community adopts this mentality, then you’re going to be known as the most friendly community and super successful because everybody feels welcome.
If we do that as a city, well, then we’re the most desired city. If we do that as a region, then we become the most popping place on the entire East Coast.
That’s the region we should be. This whole conversation is a case of better business. So it’s not about red and blue, black and white. It’s about green.
The problem is that I think that there are certain people who don’t care, and they really like business the way it is. They don’t care if they make less money, but they want their business and their environment to be the way they are, the way it is, because [change] just means they lose their privilege.
White privilege means that when you are using it, you know you’re using it and that you are aware that it exists. And even if you’re not aware, you are still using it. It’s your job to learn what that is. Sometimes you don’t even know you’re doing it. Sometimes you step on a person’s foot [and] you don’t even know you’ve stepped on their foot. They’ve got to tell you by saying “ow,” right?
Some of these people, they run businesses and they’re like, “Well, I don’t want to change the way I do business.” Basically, what they’re telling you is, “Man, I’ve been cutting lines all my life. I didn’t even know I’ve been cutting lines but now that I know, no, I’m not really willing to get in the back of the line. Why would I do that? That’s going to make me late.”
Listen, we are always at the back of the line. Put yourself in the place of somebody that you perceive as being different, you may like or may not like it, and I guarantee you, … if you have a heart and a conscience, [it] will cause you to treat them better. That person will feel welcome, and that person will tell 10 other people.
VB: What do you hope will happen in Virginia in the next five or 10 years? What are your dreams for this commonwealth?
Williams: We figure out a way to make wealth more common.
When you’re a Black person, that just means the laws come down so much heavier. That just means the gravity in your jail sentence is going to be insane.
But let’s make wealth more common — wealth not only in finance, but wealth in opportunity, wealth in education, wealth in work and diverse opportunities for the jobs, for the positions, wealth in community building, wealth in support of each other, wealth in health care. Let’s do that. Let’s make wealth common.
Let’s be a “green” state. Let’s be green in the life force because anything that’s green is alive. Have green in our environment. Let’s think about our ecosystem. Then there’s another “eco” word: economics. Let’s be green about the economy.
VB: Do you consider Virginia a place where artists can thrive?
Williams: Virginia’s a place where artists, academics, officers, architects, astronauts, astrologists — everyone can flourish here. Everyone. Whatever you want, you can do it in Virginia. You can do it. It’s just [that] we have to make up our mind that we’re going to be supportive of all these different disciplines.
I think that it all starts with the business community. That’s in my opinion. To me, the business community, they control which way the wind blows. Every once in a while, a hurricane sets down, and they really don’t know what to do. Then when it clears back up, they become the know-it-alls all over again and we’re back in the same situation that we are, and really, no one should be controlling which way the wind blows. In fact, we all should be contributing.
VB: Do you think that bitcoin and cryptocurrency in general is a healthy thing, or are you concerned about it and the bubble it’s creating?
Williams: Cryptocurrency is absolutely going to take over 100%. There’s no inflation, and it was thought out differently. It’s a new system, and we should be welcoming that. It’s the future.
On our legal tender, it says, “In God we trust.” There’s been so many things that have been done with those legal tenders that have nothing to do with that, but there’s trust, right? They’re saying trust. We trust that in Fort Knox there’s a certain amount of gold that backs up the legal tender. We know that there’s not, and there’s other commodities supposed to back it as well.
Well, the cryptocurrency is based on people just investing. They trust, and that type of currency works. That’s a shift, and those are the kind of things that Virginia … should get ahead of and we can, we will.
VB: What do you hope will be different with Elephant in the Room, when that comes back later this year?
Williams: It’s just going to be bigger. There’s going to be full days of caucuses and panels. It’s not just people coming to town and telling us what to do, but it’s people coming into town having conversations with us.
We have the ability to make more money and be more welcoming and be the No. 1 destination not only on the East Coast, but in this country, if we are welcoming human beings. That’s a case for better business. We put our politics aside and put people first.
Hampton Roads is besieged by hurricanes, nor’easters and full moon tidal surges, but it’s not just coastal Virginia homes and businesses that are threatened by increased flooding.
“Climate change is causing the state as a whole to deal with flooding and flood- related issues. It impacts a lot of people throughout the state,” says Michael Vernon, founder and CEO of Virginia Beach-based Flood Insurance Hampton Roads.
That’s because there are “more ‘rain bombs’ [and] more mega-storms,” says Vernon, describing microbursts — narrow columns of sinking air within thunderstorms that cause significant downpours and destructive, tornadolike winds. “These are tremendous flood events caused by rain that didn’t used to happen. Now more and more places are having these rain bombs for two or three days in a row. It’s becoming a statewide issue.”
Flood-related disasters in the United States have accounted for more than $850 billion in damage and losses since 2000, according to The Pew Charitable Trusts, which provides data on conservation science and other issues.
While flooding is a common, expensive natural disaster, many people don’t realize that flood damage is not covered by a standard homeowners’ insurance policy, says Cate Deventer, associate writer for Bankrate, an online publisher of personal finance content. In Virginia, only 3% of homeowners report having flood insurance, compared with 27% nationally, Deventer says, citing the Insurance Information Institute.
“We do get a lot of clients who are shocked by the cost,” says Will Faddis, marketing manager at Trustpoint Insurance LLC in Roanoke. “Most clients of ours who purchase flood insurance only do so because they are required by [their] lender.”
Most flooding problems in Southwest and Central Virginia are driven by losses to older properties in higher hazard flood areas, Faddis says, because new construction typically is either raised or not located in flood-prone areas.
Virginia policyholders are generally faring better than the national average following recent National Flood Insurance Program pricing changes, says Nancy Ahrens with Scott Insurance. Photo by Matthew R.O. Brown
Federal flood protection
A Federal Emergency Management Agency (FEMA) program provides about $1.3 trillion in coverage for more than 5 million U.S. policyholders. But, over the past 50 years, even as the frequency and cost of flood claims has soared, the National Flood Insurance Program (NFIP) had not adjusted rates and premiums. That’s caused serious solvency problems — the program’s debt to the U.S. Treasury now exceeds
$20 billion.
First Street Foundation, a nonprofit research and technology group, and global commercial engineering firm Arup issued a report early last year warning that nearly 4.3 million residential homes across the country are at risk for substantial flooding that would result in financial loss.
Furthermore, if all of these homes were to be insured against flood risk through the NFIP, rates would need to increase 4.5 times to cover the risk, according to the report.
In late 2021, FEMA took steps to update the NFIP pricing structure, resulting in “Risk Rating 2.0,” which aims to correct inequities in the system that cause some owners with lower-value homes to pay more than they should for policies, while the reverse is true for policyholders with higher-value homes.
However, a group of U.S. senators and congressional representatives from Florida, Louisiana, Maryland, Mississippi, Pennsylvania and New York were not convinced that the new system is an improvement. A month after the first phase of Risk Rating 2.0 was launched in October 2021, they proposed reauthorizing and reforming the NFIP, expressing concerns about possible steep rate increases.
Nancy Ahrens, a vice president of Scott Insurance based in Richmond, says it’s still too early to tell how Risk Rating 2.0 changes are impacting Virginians. “However, flood premiums are rising in most instances on properties where there is an actual flood exposure or past flood loss,” she says.
So far, though, she adds, “Virginia is faring better than the national average under Risk Rating 2.0.”
As of mid-November 2021, 23.2% of flood insurance policies had decreased nationally, while 66% of policies increased by $120 or less a year. But in Virginia, 44.7% of policyholders saw a decrease, and 49% increased by less than $120 a year.
Under Risk Rating 2.0, premiums for policies that cover primary residences cannot increase by more than 18%, and premiums for policies covering other structures are capped at 25%.
Vernon believes that the changes have gotten off to a bad start.
“Basically, they’re using an algorithm that is very different than in the past,” he says. “As a result, changes in premiums are making absolutely no sense.”
For example, the premium price for a house directly on the ocean that is not compliant with flood mitigation requirements is now one-third the premium price of a compliant house, Vernon says. “Suddenly, it’s considered a low-risk property.”
But his biggest complaint is that the new system does not offer homeowners incentives for protecting their property, such as improving lot drainage and installing sump pumps and flood vents that allow floodwaters to flow through garages and crawlspaces.
When property owners are not rewarded for flood mitigation, Vernon says, the result is higher costs — in damages, in lost business and in people moving from the area.
The private route
Flood insurance once was offered by private insurers, but losses stemming from the Great Mississippi Flood of 1927 one of the worst natural disasters in American history at that point, plus other catastrophic floods, put an end to the practice.
In 1968, Congress created the NFIP through the National Flood Insurance Act, and for years, it was the only provider for residential flood insurance.
However, private flood insurance is seeing a resurgence, with private insurers recording $3.1 billion in premiums between 2016 and 2020, with the one-year total of $735 million in 2020 breaking previous records, according to Insurance Journal. As FEMA’s flood program “has fallen farther and farther in debt, it has raised premiums [and] private agents have reengaged,” Vernon explains.
Scott Insurance is seeing more private carriers, like Lloyd’s of London, offering flood insurance policies, Ahrens says, and she expects the private flood market to expand and improve in the future.
“Despite the tougher insurance market, the carriers offering private flood insurance are increasing capacity and continue to compete with and supplement FEMA.” Now, she notes, “We often secure quotes from the NFIP and the private market for our clients in order to determine the best value of coverage.”
Homeowners may find advantages with private flood insurance, Deventer says.
“It can be more comprehensive than NFIP policies, and you might have access to more coverage options and higher policy limits than you do with federally underwritten policies,” she writes in Bankrate Guide to Flood Insurance. Additionally, she says, waiting times for private flood insurance might be shorter than the 30-day period required by the NFIP.
One drawback to private flood policies is that the Federal Housing Administration has not accepted the policies on properties in high-risk flood zones. However, a proposed rule would amend FHA regulations to allow the option to purchase private flood insurance on FHA-insured mortgages for properties located in special flood-hazard areas.
Commercial coverage
Commercial property rates also have been rising over the past few years in response to natural disasters, severe weather events and rising building materials costs.
Another study by First Street Foundation and Arup projected that structural damage from flooding to retail, office and multifamily residential properties will cost $13.5 billion in 2022, increasing to more than $16.9 billion by 2052.
Although the private flood insurance market commonly provides commercial coverage, carriers have grown more sophisticated in determining whether to provide flood insurance for specific locations, “using cutting-edge modeling to more accurately determine whether they have an appetite to provide flood coverage,” Ahrens notes. “Many carriers have cut back their capacity — the amount of insurance they are willing to provide for any one location — to limit their worst-case exposure.”
A traditional NFIP flood policy can provide up to $500,000 for damage to a commercial building, and many national property carriers are spurning flood coverage due to increased severity and frequency of flood losses, Ahrens says.
At the same time, lenders who provide financing for commercial buildings are demanding that the borrower purchase flood coverage, regardless of whether the location is in a FEMA-designated flood zone. Lenders and/or investors “have also put ‘insurance-to-value’ requirements at the forefront, so they are contributing to an increase in demand of higher limits and quality in coverage,” she says.
Flood insurance is adapting to the change in climate. The trend now, Ahrens says, is for agents and brokers to develop “bespoke insurance programs” that involve both the NFIP policies and the private market. The good news is that solutions are available.
Each carrier pays losses for specific locations it insures, Ahrens says. In addition, some flood policies are written to exceed NFIP policy limits.
Faddis believes the private market better protects clients, “given that most NFIP policies max at [$500,000] of building coverage, where private markets can get up to $4 million and higher.”
For strained property owners, the hope is that this trend toward increased reliance on private insurance, as well as efforts to beef up the federal program, will tame the surging costs of flood insurance caused by hurricanes, nor’easters and rain bombs.
“Business can be a force for good. I absolutely believe it,” says Byron L. Boston, CEO and co-chief investment officer of Glen Allen-based real estate investment trust Dynex Capital Inc. “CEOs have an obligation to use profit to do positive things in the community.”
Boston and 11 other prominent Black business and nonprofit leaders spoke to Virginia Business about why the bottom line has never been purely about profit for them. Many report overcoming racial and financial hurdles to achieve success in their fields, and they say that never would have happened if it weren’t for many helping hands along the way, not to mention the unflagging support of the African American community. Now, they are fortunate enough to be in a position to pay it forward in a variety of ways.
“One of the biggest things I can do is to give back,” Boston says, and as head of Dynex, which has a market capitalization of more than $615 million, he’s well-positioned to do that.
Not by chance are equality and inclusion listed prominently among Dynex’s core values, and Boston makes sure that his company lives up to that ideal by having half of its staff and board made up of women and minority groups. Boston says he’s also changing outdated hiring dynamics by building a robust internship program.
Boston did not grow up privileged. His father was a World War II vet from Mississippi who had only eight years of schooling, and Boston, who grew up in St. Louis, was the first person in his family to go to college. Many barriers made his route to the boardroom “a ginormous cultural stretch,” says Boston, who’s adamant that he wouldn’t be where he is now without people who guided him toward success. For example, his high school football coach made sure that he was recruited by a top academic college, although Boston didn’t even have the appropriate clothes to wear when he left for Dartmouth College in New Hampshire.
After he earned his MBA from the University of Chicago, Dartmouth alumni kept on “coaching him all the way to Wall Street,” Boston says. Before joining Dynex in 2008, he worked at financial flagships such as Credit Suisse First Boston, Lehman Brothers Holdings Inc. and Freddie Mac. He also founded his own REIT, Sunset Financial Resources Inc., in 2004, selling it in 2006.
“Money in the hands of a good man is a powerful thing,” says Boston, who last year established a scholarship at Dartmouth for first-generation college students. He also has mentored first-generation college students at the University of Richmond and Virginia State University, as well as numerous young professionals.
“I’m very in tune with those who are like myself who need guidance. I’ve got years of mentoring other professionals at this point,” he says. “I’m really proud of my life. I’ve lived it outside my comfort zone, and I want others like me to realize that there is a broader world out there.”
But it’s a world that comes with challenges for Black Americans, many of whom regularly face challenging financial and cultural inequities. Given that, Virginia Business asked some of Virginia’s Black business leaders to discuss how they are helping the next generation to overcome these challenges.
Bell. Photo by Will Schermerhorn
SHELLY BELL
Founder, Black Girl Ventures Foundation
Fort Belvoir
“Everyone thought I was crazy — again,” Bell says about starting nonprofit Black Girl Ventures Foundation, which supports Black and brown women entrepreneurs with accessing social and financial capital needed to grow their businesses. Before founding Black Girl Ventures in 2016, she had cycled through a series of eclectic careers — performance poet, computer science teacher, T-shirt maker and marketer, and even an Airbnb host who put up guests in a tent in her living room. Bell, who holds a computer science degree from North Carolina A&T State University, says her success at Black Girl Ventures finally proved “everybody” wrong.
Digitalundivided, a New Jersey-based nonprofit booster for Black and Latina women entrepreneurs, conducted a study that found that Black women business founders received just 0.27% of available venture capital investment during 2018. Black Girl Ventures is determined to upend that dismal statistic by helping Black women entrepreneurs learn how to access resources to build their businesses.
Black Girl Ventures has hosted “Shark Tank”-style pitch presentations that have resulted in 275 woman-owned startups receiving crowdfunding, resulting in enterprises that have gone on to generate more than $10 million in revenue. Black Girl Ventures’ empowerment efforts also include leadership training and outreach for students at historically Black colleges and universities.
Along the way, Black Girl Ventures’ mission has caught the
eye of big corporate sponsors such as Nike Inc., which has donated $1 million to BGV for grants and mentorship programs, and Visa Inc., which partnered with BGV to help “digitally enable” 50,000 small businesses.
Outside office hours, Bell gives back by sitting on the board of Malikah, a New York-based global nonprofit that helps women of color develop skills such as self-defense and financial literacy. She also sits on the board of Color of Crohn’s & Chronic Illness, a Maryland-based nonprofit assisting minority people affected by inflammatory bowel disease, digestive disorders and chronic illnesses.
Bell teaches other women of color “to hustle, expand, commit and harmonize,” she says. To get ahead when the odds are so stacked against you, she says, you need be “diplomatically radical.”
Cobbs. Photo by Hannah King
CRYSTAL COBBS
CEO, Cobbs Consulting; President, Black BRAND-Dan River Region
Danville
“Just being helpful can carry you a long way,” says Cobbs, who has made a career out of advising businesses and organizations on ways to grow and thrive. Her Danville firm, Cobbs Consulting, assists clients with essential skills such as social media marketing, drafting business plans and the formation of the legal structures to allow access to critical resources. “I help them not make the same mistakes that I made,”
she says.
Through her business, she has volunteered her time to assist and educate community members with learning how to negotiate various licensing processes so that they can tap into the opportunities arriving with the projected 2023 opening of the $500 million Caesars Virginia resort casino in Danville. And in July 2021, Cobbs started Black BRAND-Dan River Region. A chapter of Black BRAND, the Hampton Roads Black chamber of commerce, the nonprofit assists minority business owners with services such as business education and sponsoring vendor fairs.
Cobbs remembers summers as a child, when she would accompany her grandmother as she walked to her job cleaning a school. Now, Cobbs chairs the Danville School Board. “I think about the people who paved the way for me, and the privilege I have now,” she says. “I want to be an example.”
Foster photo courtesy West Cary Group
MOSES FOSTER
President and CEO, West Cary Group
Richmond
“Nobody is successful by themselves. That’s just what being human is, and I’ve got to return that,” says Foster, who started his advertising, marketing and data analytics firm in 2007 and has turned it into one of the country’s largest African American-run agencies.
Foster, who grew up in Farmville, knows that “most things that matter aren’t easy,” but he believes in the power of networking to overcome what he sees as a stark contrast in opportunities for Black children versus white children. That’s why he serves on the board of NextUp RVA, a free nonprofit partnership offering out-of-classroom learning experiences for public middle school students in Richmond. NextUp provides opportunities for kids to learn everything from coding to culinary skills, Foster says, and his West Cary Group donates employee time and resources to support NextUp’s mission.
Foster further fulfills his “strong desire to give back” by sitting on the University of Richmond Robins School of Business’ Executive Advisory Council. He also serves on ChamberRVA’s board and chairs its diversity, equity and inclusion advisory council.
“I love being in business in this region,” Foster says. “We have each other’s backs.”
Gore. Photo courtesy The Dana Agency
SAMIA GORE
Founder and CEO, Body Complete Rx
McLean In 2014, after the birth of her fourth child, Gore says she “picked up some weight,” so she “set out on a journey to do something about it.”
She soon saw that the wellness industry didn’t offer many weight-management products that catered to Black women, and her response to that was Body Complete Rx (BCRX).
Turns out Gore wasn’t the only Black woman who felt that neglect.
Since founding her plant-based supplements and nutritional powder company in 2017, the brand has grossed more than $10 million in sales.
Last year, BCRX partnered with The Vitamin Shoppe, a national retailer with more than 700 outlets, making BCRX the first Black, woman-owned weight management brand ever sold by the chain. Gore is now the only Black woman serving on the company’s wellness council.
By being forthcoming about her own experiences, Gore says that she has been able to “help people really change their lives,” and she regularly shares her “lessons learned” with aspiring entrepreneurs through presentations at conferences and business forums.
“My life,” she says, “is an open book.”
Miles
DELCENO C. MILES
President and CEO, The Miles Agency
Virginia Beach
“No one is going to give you anything. You have to earn it. You have to have a plan,”
says Miles, who definitely had one from an early age.
In 1989, before she turned 30, she founded The Miles Agency, a minority- and woman-owned marketing and public relations firm that specializes in community outreach and multicultural marketing. In 2002, Miles’ business acumen was recognized when she became the first African American chair of
the Hampton Roads Chamber of Commerce regional board.
A self-described people person, Miles says that PR “is the perfect industry for me.” Her love for communications isn’t confined to business, though. Miles serves on the boards of the Hampton Roads Workforce Council and Tidewater Community College, where she also chairs the college’s educational foundation. Miles also is a supporter of the proposed Virginia African American Cultural Center.
Last year, she and her siblings started The Miles Foundation to honor their mother. The foundation’s goals include supporting education, financial literacy and reducing the digital divide. Its inaugural gift was a $5,000 grant to Norfolk State University Foundation Inc.’s scholarship fund.
Miles’ efforts are inspired by her awareness of the importance of giving back to those who are so supportive of her business. Reciprocity, she says, “is part of our culture.”
Purvis has gone dramatically far in the federal contracting and technology worlds, rising through her 20-plus-year career to direct Northrop Grumman’s internal information technology strategy and its IT relationship with partners, customers and suppliers. “There are like about five of us,” she says of high-ranking African American women in the tech world, “and we all know each other.”
Purvis credits her success to three bedrock principles: forging a character that is consistent “in the daylight and behind closed doors”; possessing a drive to deliver at the highest level; and having the courage to “take a blank slate and create something that doesn’t exist.” But she’s also cognizant that she didn’t get to where she is on her own.
“I have been able to stand on the shoulders of those who went before me,” Purvis says. “My parents were some of the first Black IBMers in Virginia, and I grew up with a mindset of creating a culture that would be better for the next person coming in.”
Purvis has served on the boards of George Mason University, Northern Virginia Family Service and the Boys & Girls Clubs of Greater Washington’s Prince William County club.
From where she sits, she says, “There’s an opportunity to share your talent, your treasure and your time.”
Ransom
THOMAS RANSOM
Virginia regional president, Truist Financial Corp.
Richmond
Ransom’s mantra is “know, show and grow.”
The banker, who last September became Virginia regional president of one of the nation’s largest banks, was the first person in his family to go to college and the first “to get dressed up to go to work.” His subsequent career in finance has continued to be a series of “first experiences,” he says.
During his 20-plus-year career at BB&T and now Truist, the Hampden-Sydney College alumni has made narrowing the “economic chasm between Black and white home ownership” a priority.
“He has been a champion for diversity, equity and inclusion,” says David Weaver, Truist’s chief commercial community banking officer, noting Ransom’s crucial role in setting up Truist’s partnership with the Thurgood Marshall College Fund Inc. to launch a scholarship program for students at historically Black colleges and universities.
“A gap scholarship of as little as $900 can make a difference,” Ransom says.
Outside his job, Ransom sits on the board of INROADS College Links, a nonprofit career readiness program for ethnically diverse high school and college students. “One hundred percent of the students we touch in high school go to college,” he says proudly. Additionally, he serves as a corporate adviser to U.S. Black Chambers Inc., a national association for African American chambers of commerce and business organizations.
“I want to motivate and inspire people to reach their potential, to do the impossible,” he says. “That’s important to me, because that is my story.”
Royster
KENNETH ROYSTER
President and CEO, First Genesis of Virginia; Co-founder and wealth consultant, Heritage Financial Partners
Norfolk
Luke 12:48 reads, “To whom much is given, much is required.” Royster believes in that biblical maxim.
“Nothing is greater in the world than if I contributed to someone’s else’s success,” he says, adding that, “I’m going to look out for African Americans because our opportunities are limited.”
Through his financial planning firm, Royster focuses on the transfer of multigenerational wealth that he says is essential to closing the racial wealth gap. It’s a mission built on honesty and integrity, he says: “There’s no substitute for these things. I put people first, profits second.”
That holds true for his charitable endeavors as well. A few years ago, Royster chaired the cotillion committee of Portsmouth’s Eureka Club Inc., which awarded a $17,000 scholarship to an African American high school girl. He also works with the nonprofits Tidewater Metro Baptist Ministers Conference and the 200+ Men Foundation Inc., which supports initiatives to improve the lives of African Americans. First Genesis, which also has offices in Atlanta and Charlotte, North Carolina, also supports a number of youth activities and organizations.
“The more successful you are, the more impact you can have,” Royster says, “but I never felt obligated [to give back]. It’s in my DNA.”
Smith. Photo by Mark Rhodes
BRUCE SMITH
Developer, Bruce Smith Enterprise LLC
Virginia Beach
On the gridiron, Smith was an impact player, one of the greatest defensive players of all time. Now, as a real estate developer, the Pro Football Hall of Famer and NFL all-time sack leader still seeks to make a big impact.
Smith has partnered with Armada Hoffler in the past and is responsible for developing the Hilton Garden Inn Blacksburg University and Smith’s Landing apartment complex in Blacksburg.
“I believe in Virginia,” Smith says, “but we fall short because of the way we do business.” Cronyism and a reluctance to move beyond the status quo are holding back women and minorities, he says, even though “where there is inclusion, there are more opportunities for everyone.”
Smith uses his star power to broadcast this message both in the boardroom and through speeches, mentoring and charitable activities.
“I struggled growing up,” he says. “I’ve seen both sides of the story.” That has led him to buy equipment for the sports teams at his alma mater, Norfolk’s Booker T. Washington High School, and to sponsor an annual scholarship for a Booker T. student to attend Virginia Tech, where the two-time All-American was known as “the Sack Man.” He also sponsors college scholarships in his parents’ names through his church, Norfolk’s Queen Street Baptist.
“We have to stop losing our brightest minds, which is our college kids, from going off to college and never returning home because there’s a lack of opportunity for good, high paying jobs” in Hampton Roads, says Smith, who advocates for inclusion and diversity in regional economic development efforts.
Additionally, Smith is a Norfolk International Airport commissioner and sits on the board of Operation Smile, a Virginia Beach-based medical nonprofit that provides free cleft lip and palate surgeries to needy children worldwide.
“It gives you inner peace when you know you are helping out, doing your part,” Smith says.
Taylor. Photo courtesy Society for Human Resource Management
JOHNNY C. TAYLOR JR.
President and CEO, Society for Human Resource Management
Alexandria
Harriet Tubman got out of the South and could have kept right on going, but she didn’t. “She is such a heroine because she came back,” Taylor says of the brave abolitionist who risked her own freedom to rescue other people from enslavement. That type of giving back has become a cultural expectation in the Black community, he says. “Otherwise, your success is not celebrated.”
Taylor has given the Black community plenty of reasons to celebrate him. Holding a law degree from Iowa’s Drake University, he practiced at Richmond-based McGuireWoods and has held a variety of high-profile positions, including as general counsel and senior vice president of human relations for Paramount Pictures’ Live Entertainment Group and associate general counsel and vice president of human relations for Blockbuster Entertainment Group.
In 2010, Taylor left the corporate world to become president and CEO of the nonprofit Thurgood Marshall College Fund, which, since its establishment in 1987, has awarded more than $300 million in scholarships to HBCUs and predominantly Black institutions.
In 2017, he took over as head of the Society for Human Resource Management, the largest human resources professional association in the world, with more than 300,000 members in 165 countries.
President Donald Trump appointed Taylor chairman of the President’s Board of Advisors on HBCUs in 2018. Taylor currently serves on the American Red Cross’ board of governors, where he works to ensure that African Americans have an ample blood supply for the treatment of diseases such as sickle cell anemia.
Years ago, Taylor met an elderly Black man who told him, “Young man, only us can save us.” That bit of open-eyed wisdom, he says, “stuck forever.”
Wright-Warren. Photo by Hannah King
TAMMY WRIGHT-WARREN
Chief operating officer, Negril Inc.; Co-owner, W&W Luxury Limousine Service
Danville
Wright-Warren is deeply embedded in her Danville community, where her businesses and her charitable efforts blend seamlessly.
As COO of Negril, a company co-founded by her father, Kirby Wright, she provides services that allow people with intellectual disabilities or mental illnesses to remain in their homes or live in group homes. And as co-owner of W&W Luxury Limousine Service, which has a fleet of limos, buses and cars, she not only delivers people to special occasion destinations but provides free rides to nonprofit organizations such as the local chapters of the Boys & Girls Clubs and Big Brothers Big Sisters, and Sacred Heart Catholic Church.
A minority investor in the Danville Caesars Virginia casino, Wright-Warren also was a committee member for Caesars for Danville, a group that helped campaign to bring the $500 million resort to the city. The entertainment conglomerate plans on hiring 1,300 workers and will employ 900 construction workers.
“Caesars has a strong record of lifting up small businesses in the areas where they operate, especially those owned by women and minorities,” Wright-Warren told the media software company Cision. “This is the kind of partner our area wants and deserves.”
In December 2021, public-private campaign InvestSWVA announced the launch of an economic development initiative designed to help Southwest Virginia manufacturers find entry points in the supply chain for wind energy equipment components. The initiative, called Project Veer, will connect Southwest Virginia manufacturers with industry experts, public sector partners, the Hampton Roads Alliance, Dominion Energy Inc., Appalachian Power and GO Virginia Region One’s economic and workforce development organizations. Project Veer builds on recommendations from a study conducted by the Hampton Roads Alliance that exposed gaps in the supply chain and defined how manufacturers could fill them. (VirginiaBusiness.com)
Two small businesses received $6,500 Virginia Coalfield Economic Development Authority seed capital grants in early January. The recipient in Tazewell County was a new solar energy company formed earlier this year, Southwest Virginia Energy Consultants Inc. The company seeks to help commercial businesses, homeowners and agricultural businesses in the region grow solar energy use. In Wise County, VCEDA selected pool installation and service business Hughes Enterprises LLC, dba Wise Guys Pools, as a grant recipient. Wise Guys Pools projects it will create three full-time jobs and four part-time jobs within five years. (SWVAToday, The Coalfield Progress)
On Jan. 7, the Virginia Tobacco Region Revitalization Commission approved funding for several projects in Southwest Virginia. The Lonesome Pine Regional Industrial Facilities Authority will receive a $500,000 grant for infrastructure work at the Project Intersection industrial site in Norton. The property needs additional site development, and the authority needs to build a 30,000-square-foot building to accommodate the EarthLink customer support center announced in September 2021. Another funded project is the second phase of the Russell Place Project, for which the Russell County Industrial Development Authority will receive $303,500 to redevelop a vacant industrial park property in Lebanon. (Bristol Herald Courier)
The six-week Washington County Business Challenge was set to launch Jan. 18 as a virtual-only weekly event. It will award more than $32,000 in cash and services to startups and expanding businesses in Washington County and the towns of Abingdon, Damascus and Glade Spring. The Washington County Chamber of Commerce, Virginia Community Capital and Virginia Highlands Small Business Incubator host the challenge. This year, in addition to $5,000 cash and support from the Virginia Highlands incubator, the winner of the entrepreneurship award will receive mentorship, tuition assistance and the chance for three employees to attend Emory & Henry College’s Small Business Growth Program. (Bristol Herald Courier)
In December 2021, Wise County Industrial Development Authority members and project partners broke ground on the 3.46-megawatt solar energy project that will serve the Mineral Gap data center in the Lonesome Pine Regional Business & Technology Park. The 20-acre site will be developed on previously mined land. A $500,000 federal grant will partially fund site remediation and preparation. Clintwood-based McFall Excavating Inc. is the site development contractor. The site development work is set to conclude in the spring, and Charlottesville-based Sun Tribe Solar will then work with Mineral Gap to begin solar panel installation.X (The Coalfield Progress)
Wytheville Town Council gave preliminary approval on Dec. 13, 2021, for a 15-building apartment complex with about 270 residential units. The planned development, called Olde Equine, would sit on 56 acres facing North Petunia Road north of Lee Highway. The council’s approval came with two conditions: The complex must have an entrance at West Lee Highway, and the entrance needs a deceleration traffic lane on the highway. A business located near the middle of the site, Wythe Physician Practices – Bone & Joint, is likely to be redeveloped into a clubhouse to support the development. (SWVAToday)
Central Virginia
Washington, D.C.-based commercial real estate data and analytics company CoStar Group Inc. will build a $460 million corporate campus in Richmond, creating 2,000 jobs. CoStar’s riverfront campus will feature 750,000 square feet of new office and retail space, including a 26-story, 510-foot LEED-platinum-certified skyscraper that will be the tallest building in Virginia. CoStar already has a significant Richmond presence, with more than 1,000 employees at the former WestRock building at 501 S. Fifth St., but the expansion will give the company 1 million square feet total in downtown Richmond. (VirginiaBusiness.com)
Dominion Energy Inc. sold its Questar Pipelines business on the Wyoming-Utah border to Southwest Gas Holdings Inc. in late December 2021. The deal, announced in early October 2021, is valued at $1.975 billion, including the assumption of $430 million of existing debt. Selling the pipeline business allows Richmond-based Dominion to focus on its utility customers and its clean-energy portfolio, such as solar farms and the development of an offshore wind farm, the company has said. Dominion bought Questar Pipelines in 2016 in a deal valued at $1.725 billion, including $823 million in cash and the assumption of $435 million in debt. (Richmond Times-Dispatch)
Virginia Sen. Joe Morrissey, D-Richmond, said in early January that legislation he’s drafted to let Petersburg hold a casino referendum will include a provision barring Richmond from holding a second referendum. The bill puts the state senator at odds with Richmond Councilwoman Reva Trammell, who was set to introduce legislation to have Richmond vote again on a casino project after voters last November rejected national media conglomerate Urban One’s $600 million plan for its ONE Casino + Resort. Morrissey said the state would bar Richmond from holding another referendum for five years after last year’s result, adding that he thinks allowing Richmond to vote again would be undemocratic and redundant. (Richmond Times-Dispatch)
Starplast USA, a subsidiary of Israel-based plastic manufacturer Starplast, plans to invest $17.7 million in a new facility in Chesterfield County, creating 300 jobs over the next five years, Gov. Ralph Northam announced in December 2021. The company will retrofit an existing industrial building near Meadowville Technology Park in the southern part of the county. Starplast was founded in 1958, and its U.S. subsidiary started in 2005, producing housewares, garden storage and toys, among other plastic products. Starplast USA opened its first U.S.-based manufacturing plant in Houston in 2018. (VirginiaBusiness.com)
Cullen
In December 2021, the Supreme Court ofVirginia unanimously approved new congressional and General Assembly maps, ending a contentious redistricting process that for the first time gave no say to the state’s elected officials. The court’s action had officials in both parties poring over maps, trying to gauge the fallout from the once-in-a-decade redraw — conducted by two special masters appointed by the court after a bipartisan redistricting commission failed to complete the task. Ultimately, three members of Congress — Democratic Reps. Elaine Luria and Abigail Spanberger and Republican Rep. H. Morgan Griffith — were drawn out of their current districts, but all three have said they will run for reelection. (The Washington Post)
PEOPLE
On Jan. 14, former Virginia Attorney General Richard Cullen left his position as senior partner at McGuireWoods, the state’s biggest law firm, to serve as counselor to Gov. Glenn Youngkin. The former McGuireWoods chairman and U.S. attorney for the Eastern District of Virginia has represented a host of high-profile clients, including most recently former Vice President Mike Pence in the congressional inquiry into the Jan. 6, 2021, insurrection at the U.S. Capitol. (VirginiaBusiness.com)
Shenandoah Valley
Irving, Texas-based Darling Ingredients Inc. announced in December 2021 that it would acquire Winchester-based Valley Proteins Inc. and its outstanding shares for about $1.1 billion in cash. Valley Proteins employs 1,900 workers and has 18 major rendering and used cooking oil plants and 550 vehicles. Darling Ingredients produces organic ingredients and generates protein and fat products and renewable energy. It collects waste from the agri-food industry on five continents to create specialty ingredients like feed-grade fats, pet food ingredients, fuel feedstocks and bioenergy. (The Winchester Star)
Warren County Circuit Judge Bruce D. Albertson entered an order in the last week of December 2021 to sever the remaining co-defendants in the lawsuit against former Front Royal-Warren County Economic Development Authority Executive Director Jennifer McDonald, in which the EDA alleged that McDonald used its money for her own benefit. Those with active cases are Earth Right Energy Solar-Commercial LLC and Donald F. Poe; ITFederal LLC and Truc “Curt” Tran; April Petty; William Lambert; McDonald’s husband, Samuel North; and McDonald’s mother, Linda Hassenplug, and Little Rugratz Daycare LLC. (The Northern Virginia Daily)
On Dec. 21, 2021, Spotsylvania Circuit Judge Joseph J. Ellis denied a petition seeking greater transparency in the operations of the Rappahannock Electric Cooperative‘s board of directors, although he said that trial statements indicated that the REC is “not as cooperative as it should be.” The ruling ends a group of members’ three-year legal fight to amend the cooperative’s bylaws. The group sought to make board meetings, except for executive sessions involving sensitive information, open to members, as well as to eliminate secret balloting for proxy votes and to publish directors’ annual compensation. (Virginia Mercury)
On Jan. 4, Stephens City Town Council unanimously approved entering into a franchise agreement with Shenandoah Cable Television, a limited liability company for Glo Fiber, to provide internet, telephone and cable service within town limits. Comcast is currently the predominant internet provider in Stephens City, but town officials said that Glo Fiber would likely cover a larger area than Comcast. Town Manager Mike Majher said that Glo Fiber should have started installing equipment almost immediately, but that the town had not received a date for when residents would be able to sign up for the service. (The Northern Virginia Daily)
The Winchester Economic Development Authority voted unanimously on Dec. 21, 2021, to amend its agreement with Frederick County-based Aikens Group, reducing the backend payout the authority will receive for selling the developer a 1-acre property. The high cost of building materials and supply chain issues were making 16-townhouse Piccadilly Townes a potential money loser for the developer. Aikens Group agreed to buy the land for $480,000 and to pay the EDA 5% of the net sale price of each townhouse, which would come to an estimated $225,600 total. Now, Aikens will pay the EDA 50% of its total profit. (The Winchester Star)
PEOPLE
In January, Eric Hash became the new CEO of the Harrisonburg-Rockingham Association of Realtors (HRAR). Hash was previously the executive of the Dan River Region Association of Realtors. He holds a master’s degree from Liberty University and a bachelor’s degree from Johnson University. Hash plans to continue previous CEO Bob Hill’s focus on outreach and affordable housing. Over the past several years, HRAR has been involved in community and local government discussions about bringing down prices for area homebuyers. (Daily News-Record)
After a 12-year-long push, LewisGale Medical Center is getting a neonatal intensive care unit. LewisGale announced in December 2021 that the Virginia Department of Health approved its Certificate of Public Need (COPN) for the NICU. Carilion Clinic, LewisGale’s closest medical competitor, initially opposed approval of another NICU, but dropped that stance in 2020. The NICU could be up and running as soon as fall 2022. (WSLS and The Roanoke Times)
Opponents of the Mountain Valley Pipeline are picking another legal fight. Environmental and community groups filed a petition the week of
Dec. 25, 2021, with a federal appeals court. The groups want the court to review the decision by the State Water Control Board to allow the infrastructure to cross streams and wetlands. Pipeline opponents say Mountain Valley should not be allowed to continue given its past track record of violating erosion and sediment regulations in Southwest Virginia. But Mountain Valley said those problems were largely caused by heavy rain in 2018 and have been corrected. (Associated Press)
Phoenix Hardwoods Inc., an artisan manufacturer of furniture and home goods made exclusively from Virginia-grown hardwoods, will expand its production facility in Floyd County and open a new retail storefront in the Farmer Supply store in downtown Floyd. The project will create eight jobs, leading to $100,000 in capital investment and allow the company to purchase an additional $76,000 of Virginia-grown hardwoods over the next three years, according to a Jan. 11 news release. Gov. Ralph Northam approved a $10,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund for the project, which Floyd County will match with local funds. (Cardinal News)
Due to a spike in COVID-19 infections, the city of Roanoke announced Jan. 11 that all 1,700 city employees must either be vaccinated or present regular negative test results and wear face coverings at work. Roanoke’s requirement was intended to be effective Feb. 1, allowing workers enough time to get vaccinated. The city’s weighing of a vaccine requirement came on the same day that Gov. Glenn Youngkin and Attorney General Jason Miyares announced that Virginia would join other Republican-led states and business groups in challenging federal vaccination mandates. (Cardinal News)
A proposed new residential subdivision in Smith Mountain Lake was approved by the Franklin County Board of Supervisors in December 2021, following months of delays. A debate over the use of private roads in the 195-acre, 112-lot development was stalled by supervisors. Usually, subdivision roads are built according to Virginia Department of Transportation standards and become state-maintained roads once development is complete. In this case, an adjacent property owner was unwilling to turn over his road easement, leaving VDOT unable to take over the roads. Developer SML Partners LLC agreed to provide road maintenance funding for the next 20 years. (The Roanoke Times)
The Virginia Tech Corporate Research Center in Blacksburg is using a joint-effort approach to support life science startups in the Roanoke and New River valleys. In December 2021, the CRC announced a partnership with Montgomery County, Roanoke and Carilion Clinic to build new shared lab facilities at the center for smaller life science startups, with the ultimate goal of opening up a larger facility in Roanoke. It also announced a unique partnership with Johnson & Johnson. The $1.1 million project is largely funded by GO Virginia, which awarded the research center $600,000 toward the project, which will create 25 wet and dry lab spaces in a turnkey facility. (The Roanoke Times)
Southern Virginia
Residents and visitors to Danville soon will be able to zip around on rented electric scooters. Bird, an electric-vehicle sharing company, said it would bring 20 to 30 stand-up scooters to Danville by February, with plans to expand the fleet to 50. The scooters will be located throughout Danville, with most near the downtown area. A percentage of the ride’s price will go into a public works fund to offset costs incurred by removal of scooters that may be left in the right-of-way. (Danville Register & Bee)
The Institute for Advanced Learning and Research in late December 2021 announced its search for a president, a new position created by the board of trustees. Betty Jo Foster will serve as interim president. Executive Director Mark Gignac will continue with certain administrative and operational responsibilities under the new structure. The expansion is a result of extensive growth of the institute’s level of activity as well as strategic succession planning. The institute formed a seven-member search committee to identify, interview and recommend candidates. Washington, D.C-based management consulting company Korn Ferry will conduct a national search. (Danville Register & Bee)
The plan for Martinsville to revert from a city to a town has gone from peaceful negotiations to an outright court battle. Henry County filed an injunction to stop reversion from happening.
Both sides have spent months going back and forth over the process. The two found common ground with a voluntary settlement agreement and memorandum of understanding. Then, on Dec. 14, 2021, the Henry County Board of Supervisors did an about-face, voting not to approve the agreement. Now both sides are turning to the courts to intervene. Circuit court judges will have to rule on the matter, but it’s unclear when. (WSET ABC 13)
On Jan. 5, Recurrent Energy announced a purchase and sale agreement with Appalachian Power for its Firefly Energy project in Pittsylvania County. It marks Appalachian Power’s largest solar energy acquisition to date. An agreement approved by the Pittsylvania County Board of Supervisors calls for $2.25 million in upfront payments. It was one of three agreements approved in December 2021 by the board that
are expected to bring about $41.6 million in revenue to the county over a 35-year span. (Danville Register & Bee)
HALL
On Dec. 24, 2021, Dave McCormack of Waukeshaw Development Inc. filed the remaining paperwork needed to begin construction of a 40-unit apartment building at the site of the former Planters Warehouse in Clarksville, at one time the oldest continually operating tobacco warehouse in Virginia. McCormack planned to break ground in January on The Royster. He said the completion date is pending, based on obstacles that he has had to overcome since he first approached the town with a proposal to save the iconic building from the wrecking ball in 2015. (SoVaNow)
PEOPLE
Henry County Administrator and Public Service Authority (PSA) General Manager Tim Hall announced his retirement on Dec. 14, 2021. The county Board of Supervisors named Deputy County Administrator Dale Wagoner as the new county administrator upon Hall’s July 1 retirement. The board also recommended the PSA consider Wagoner as Hall’s replacement as general manager for the authority. Hall has served in those roles since 2012. He began his career with the county as a public information officer in December 1998. (Martinsville Bulletin)
Eastern Virginia
Richmond-based Dodson Property Management acquired Berkeley Realty Property Management Inc. in Williamsburg in January. Sold by Pam Blank and Ed Robbins, Berkeley was founded more than 40 years ago and focuses on property management for single-family property owners and residents, as well as homeowner associations in the Greater Williamsburg area. A release from Dodson says the transition during the acquisition will be “seamless” as the Berkeley team will continue to maintain all existing operations. The acquisition includes 61 HOAs, a total of 6,530 units. (WYDaily)
Dominion Energy Inc. has ordered 176 offshore wind turbines from Siemens Gamesa Renewable Energy S.A. for its 2.6-gigawatt, $9.8 billion Coastal Virginia Offshore Wind project, the Richmond-based Fortune 500 utility announced in December 2021. Siemens Gamesa expects to begin installing the 800-foot-tall turbines in 2024 at the wind farm site 27 miles off the coast of Virginia Beach. (VirginiaBusiness.com)
In early January, Huntington Ingalls Industries announced it had successfully tested systems that allowed drones to coordinate with other vessels without the need for humans to step in. The test, conducted off Virginia Beach, showed HII’s systems can work with the unmanned vessel operating systems of its Sea Machines affiliate. It means an unmanned vessel can operate without the need for human involvement in completing a task, such as collecting data via a sensor or delivering supplies to a certain area or even escorting manned vessels, HII said. HII’s systems managed mission delegation and enabled collaborative operation with other unmanned systems. (Daily Press)
Construction of a full-fledged fiber optic network that will eventually provide all Norfolk residents with a second option for internet service is underway in the Norview and Five Points neighborhoods. In 2021, Norfolk enlisted the services of MetroNet, an internet and phone provider, to install fiber cable all around the city in order to provide an alternative to Cox Communications Inc., the sole internet provider in Norfolk. MetroNet’s infrastructure costs for the project will come close to $90 million in Norfolk. It should take two to three years to fully install the network citywide, though service will be available in some neighborhoods as early as this summer. (The Virginian-Pilot)
Breeden
A new year is bringing renewed focus on boosting volunteerism in Hampton Roads. Volunteer Hampton Roads and the Hampton Roads Chamber committed to working together to increase regional corporate volunteerism. Volunteer Hampton Roads became an affiliate of the chamber, effective Jan. 1, and moved its office from Virginia Wesleyan University into the chamber’s downtown Norfolk office. (Inside Business)
Verizon and Tysons-based broadcast company Tegna Inc. reached an agreement Jan. 8 following a contract dispute. The deal will restore Verizon Fios customers’ access to WVEC, the Tegna-owned Hampton-licensed ABC affiliate. This isn’t the first time Tegna has pulled its channels from local providers. Fios customers suffered a WVEC blackout in early 2019, and DirecTV lost the channel temporarily in late 2020. Tegna also pulled its channels from almost three million Dish Network users in October, according to the American Television Alliance advocacy group. (The Virginian-Pilot)
Faulkner
PEOPLE
More than 60 years after Ramon W. Breeden Jr.founded his Virginia Beach-based real estate development company, The Breeden Co. has new leadership. Chief Operating Officer Timothy Faulkner was promoted to president and CEO in January after serving more than 20 years with the company. Breeden, who founded his company in 1961, will remain chairman of the board, maintaining an active presence. Breeden’s son, C. Torrey Breeden, will continue as The Breeden Co.’s executive vice president, focusing on land acquisition and development. (VirginiaBusiness.com)
Northren Virginia
In December 2021, Amazon.com Inc. announced a $21 million grant to create a two-year professional training, mentorship and capital funding program for real estate developers of color focused on affordable housing. With the Amazon Housing Equity Fund grant, Arlington-based Capital Impact Partners created the Housing Equity Accelerator Fellowship. The program will provide training on developing affordable housing in the Washington, D.C., area and access to grant capital for pre-development expenses. (VirginiaBusiness.com)
Tysons-based event software company Cvent Holding Corp. went public a second time in December. The company began trading on the Nasdaq Global Market on Dec. 9, 2021, after closing its merger the day before with San Francisco-based SPAC Dragoneer Growth Opportunities Corp. II.
In 2016, Cvent was acquired by Vista Equity Partners for $1.65 billion and taken private. The deal with Dragoneer was first announced in July 2021, and Cvent was valued at about $5.3 billion. During the pandemic, Cvent began providing remote events software, in addition to its live event management services. Its virtual events arm now generates more than $100 million in revenue. (VirginiaBusiness.com)
U.S. Sen. Tim Kaine was stuck on Interstate 95 for more than a day in early January, along with hundreds of other drivers disabled in a fast-moving winter storm along a 50-mile corridor. Starting on the afternoon of Jan. 3, winter precipitation caused power outages, multiple vehicle crashes and closed lanes in the Virginia Department of Transportation’s Fredericksburg district. Hundreds of vehicles were at a “standstill” overnight between Prince William and Caroline counties, after several tractor-trailers jackknifed in the winter storm. Although people stranded in the storm reported being hungry and cold, there were no reports of serious injuries or deaths. Kaine, who reached his Washington, D.C., office after 27 hours, called the ordeal “a kind
of survival project.” (VirginiaBusiness.com, The Associated Press)
MicroStrategy, the Tysons-based data analytics firm helmed by billionaire cryptocurrency bull Michael Saylor, announced its latest big investment in bitcoin in December 2021: a $94.2 million purchase of approximately 1,914 bitcoins for $49,229 per coin between Dec. 9 and Dec. 29, 2021. The company says it now holds approximately 124,391 bitcoins, purchased for nearly $3.8 billion, or an average price of $30,159 per coin. MicroStrategy’s latest investment came as the price of bitcoin struggled near a two-month low, after a nearly 10% selloff tanked prices about 17% below levels at the end of November 2021. (Forbes)
Reston-based Octo Consulting Group, backed by Arlington Capital Partners, announced in January that it had acquired Herndon-based health information technology company B3 Group Inc. Financial terms of the transaction were not disclosed. B3 holds the $686 million U.S. Department of Veterans Affairs Digital Transformation Center task order. B3’s leadership will remain with the company and expand Octo’s health business. (VirginiaBusiness.com)
Will it be the Commanders? Or is it a trick designed to lead fans in the wrong direction? That’s the question after the Washington Football Team left a portion of its name reveal uncensored during a television show produced by the team. In January, Washington shared it will unveil its new name Feb. 2 on NBC’s “Today” show. In a video from the team, President Jason Wright is talking about potential options with Coach Ron Rivera, but the papers in front of him are blurred out. However, when the team re-aired the video on its cable program, “Washington Football Today” on NBC Sports Washington, the paperwork was not blurred, and a potential “Commanders” logo and seal could be clearly seen. (Richmond Times-Dispatch)
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