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Norfolk Airport cancels development contract for 165-room hotel

SUMMARY:

  • Airport Authority canceled its after a developer left the project
  • The 165-room hotel delayed until 2028, about two years
  • Airport may build the hotel itself and hire a third-party operator

The ‘s plans to build a 165-room hotel at have been delayed by approximately two years until 2028, as the authority recently canceled the contract with the team due to an alleged contract violation.

Norfolk Airport Authority CEO said the authority terminated the contract after discovering that one of the project’s developers had left the project, and the remaining developer failed to notify them immediately.

In September 2023, the authority selected a development team dubbed ORF Hospitality, a partnership between Virginia Beach-based LTD Hospitality and Arizona-based investment firm Caliber Cos. The plan was for the hotel to be a Courtyard by Marriott, and it would address a shortage of hotel rooms in the city. Perryman said the contract with the team was signed in February 2024.

However, Perryman said the authority learned in November 2024 that Caliber had pulled out of the project, and didn’t get confirmation from LTD until January of this year. Perryman said he was never given a reason why Caliber departed, but that the team the authority had selected “was no longer that team.”

In April, the airport authority sent LTD a notice stating the company was in default of the contract and gave the firm 60 days to remedy the matter and bring Caliber back on board, Perryman said. That never happened, and on July 22, the authority sent LTD a notice to terminate the contract, stating that the developers failed to meet the agreement terms.

The letter accused the development team of making “material misrepresentations, both orally and in writing” in its proposal submitted to the authority, including its capacity to perform, financial capabilities and other areas. The letter also accused the team of making misrepresentations in pre-selection interviews upon which the authority “relied to its detriment.”

“​​We selected a team that consisted of the two partners,” Perryman said. “And in fact, during the interview, we asked, ‘What’s the relationship?’ And they said, it’s a 50/50 partnership. So when you look at the public procurement process, when you have a change of a team of that nature, I had no choice but to tell them they were in default.”

Neither LTD nor Caliber immediately returned requests for comment.

As early as January of this year, Perryman says he was optimistic that the project could be ready for completion by 2026. But with the contract cancellation, he said the opening of the hotel would likely be delayed about two years, with a 2028 opening being most likely.

The developers had not broken ground on the hotel and, to Perryman’s knowledge, a final contractor had not yet been selected. He said the original project’s estimated cost ranged from $40 million to $50 million, and that the price will now likely increase due to inflation and cost escalation.

He said the airport authority is now exploring different options. Still, the most likely new option is the airport building the hotel itself and bringing in a third-party operator to manage it. Perryman said the hope is for the authority to solidify a plan around November. It’s unclear if the Courtyard by Marriott branding will still be used.

Despite the setbacks, Perryman maintains that the hotel remains a significant priority for the airport.

“I still think it is a fundamental amenity that we need to provide the traveling public,” he said. “We have no hotels near the airport in what I would consider close proximity, and it is something that is in high demand.”

Henrico EDA repurchases GreenCity site

SUMMARY:

  • EDA repurchased former HQ site on Thursday
  • $1M repurchase essentially returns developers’ previous payments on site
  • County is reviewing RFI responses for arena-anchored

The closed on its reacquisition of the site of the failed $2.3 billion development on Thursday.

The 93-acre property at the intersection of Interstate 95 and Parham Road is also the site of the former Best Products corporate headquarters campus.

Essentially, in reacquiring the property, the EDA paid back the GreenCity developers — Michael Hallmark of Los Angeles-based Future Cities and Susan Eastridge of Falls Church’s Concord Eastridge — the $1 million the developers had previously put toward the $6.2 million price of the property.

Announced in late 2020, GreenCity was pitched to be an environmentally friendly development anchored by an arena and including two hotels, approximately 2.2 million square feet of office space, 280,000 square feet of retail space and 2,100 residential units, plus green space and plazas.

But GreenCity failed after its developers were unable to make more than $5 million in overdue payments to Henrico by a March deadline.

Background

The county initially said in March it would reacquire the former Best Products campus property from the developers in a process anticipated to take about 30 days. However, the land transfer never occurred, and in April, the Henrico EDA sued two LLCs linked to the GreenCity developers, saying the developers had refused to convey the property back to the county.

According to the lawsuit, the EDA agreed to sell the 93-acre site to the developers in a November 2022 agreement for $6.2 million, and the sale took place on Feb. 28, 2023.

After paying the county $1 million in two installments on time in 2023, the developers failed to pay the remaining $5.2 million due Feb. 28, the complaint said. In March, the EDA sent a notice of default, giving the developers until March 13 to make the payment. When they failed to pay, the EDA notified Hallmark and Eastridge that the county would exercise its repurchase option of $1 million on April 15.

A Circuit Court judge had previously issued a summons to the EDA in April, seeking to garnish the $1 million repurchase fee. The developers filed a motion to vacate the judgment, and they had “refused to convey the property to the EDA … unless ASM agrees that the EDA may pay some or all of the repurchase price to [the developers] rather than to ASM,” Henrico said in its complaint.

And while all that was happening, the GreenCity developers were the subjects of another lawsuit brought by the aborted arena’s would-be operator, ASM Global. On Aug. 15, the two parties reached a settlement agreement in that $1.5 million legal dispute.

ASM Attorney Jeff Miller confirmed to Virginia Business on Aug. 18 that ASM and GreenCity had settled their lawsuit.

Next steps

Henrico County released a request for interest regarding the site in May, asking developers to submit plans for an arena-anchored development. Pitches from developers were due July 28. The property is part of a 200-acre district that has zoning and an approved master plan for a development “envisioned to include an arena, hotels and other uses,” according to a Friday news release from the county.

“We received a number of high-quality proposals from development teams,” Henrico EDA Executive Director Anthony Romanello told Virginia Business in late August.

County Manager John Vithoulkas is leading a review committee (of which Romanello is a member) for the proposals.

“We’re in the midst of reviewing those proposals,” Romanello added. “The hope is that the board of supervisors would formally identify a partner by December.”

After that, the property would be conveyed to the selected development team in January 2026, with a 17,000-capacity arena expected to open in 2028.

“We’re extremely pleased to receive control of one of the premier development sites along the East Coast and are eager to take the next steps to fulfill our vision for a major mixed-use development that will be centered around entertainment and tourism and will include an arena for touring concerts and sporting events,” Vithoulkas said in a statement on Friday.

Construction of residences on the adjoining 110 acres, known as Scott Farm, is set to start later this year, under the development of a Markel|Eagle Partners subsidiary, according to the county.

Virginia Business Associate Editor Josh Janney contributed to this report.

Trump administration requests emergency ruling to remove Cook from Fed board

Summary

  • Trump moved Aug. 25 to fire Fed Governor
  • Federal judge ruled removal illegal, reinstated Cook
  • Administration asks to act by Monday
  • Next Fed interest rate vote scheduled after deadline

WASHINGTON (AP) — The has asked an appeals court to remove Lisa Cook from the ‘s board of governors by Monday, before the ‘s next vote on .

The request represents an extraordinary effort by the White House to shape the board before the Fed’s interest rate-setting committee meets next Tuesday and Wednesday. At the same time, Senate Republicans are pushing to confirm Stephen Miran, President Donald Trump’s nominee to an open spot on the Fed’s board, which could happen as soon as Monday.

Trump sought to fire Cook Aug. 25, but a federal judge ruled late Tuesday that the removal was illegal and reinstated her to the Fed’s board. Trump has accused Cook of mortgage fraud because she appeared to claim two properties as “primary residences” in July 2021, before she joined the board. Such claims can lead to a lower mortgage rate and smaller down payment than if one of them was declared as a rental property or second home. Cook has denied the charges.

On Tuesday, U.S. District Court Judge Jia Cobb ruled that the administration had not satisfied a legal requirement that Fed governors can only be fired “for cause,” which she said was limited to misconduct while in office. Cook did not join the Fed’s board until 2022.

In their emergency appeal, Trump’s lawyers argued that even if the conduct occurred before her time as governor, her alleged action “indisputably calls into question Cook’s trustworthiness and whether she can be a responsible steward of the interest rates and economy.”

The administration asked an appeals court to issue an emergency decision reversing the lower court by Monday. If their appeal is succesful, Cook would be removed from the Fed’s board until her case is ultimately resolved in the courts, and she would miss next week’s meeting.

If the appeals court rules in Cook’s favor, the administration could seek an emergency ruling from the Supreme Court.

Either way, the Fed is expected to cut its benchmark interest rate next week by a quarter-point to about 4.1%. When the Fed reduces its key rate, it often, over time, lowers borrowing costs for mortgages, auto loans, and business loans. Some of those rates have already fallen in anticipation of cuts from the Fed.

Should Miran, a top economic adviser to Trump, win approval in time to join the Fed next week, he could push for a steeper half-point reduction to the Fed’s rate.

Yet there are 12 officials who vote on whether and by how much to cut, including the seven members of the Fed’s board as well as five of the Fed’s 12 regional bank presidents, who vote on a rotating basis.

Trump’s two other appointees to the Fed — Christopher Waller and Michelle Bowman — might also support a half-point cut, but several of the Fed’s bank presidents have expressed concern about stubbornly elevated inflation and would almost certainly oppose such a large reduction.

If the Fed approves a quarter-point cut, it is possible there could be dissenting votes both from officials who preferred no cut and from those who support a half-point.

BWXT announces new chief strategy officer

BWX Technologies, a -based manufacturer of nuclear components and fuel, announced this week that it has tapped former executive Rik Geiersbach as its new .

Geiersbach most recently was vice president of strategy and corporate at Boeing, where he orchestrated and drove the development and implementation of the , Space and Security business unit’s strategy, mergers and acquisitions, adjacency growth and research and development investment portfolios. He was also previously Boeing’s vice president of corporate strategy. Before Boeing, he was corporate director of strategic alliances at Northrop Grumman.

In the role, Geiersbach will report directly to President and CEO Rex Geveden.

“As chief strategy officer, Rik will lead the development, execution and integration of BWXT’s enterprise strategy and merger and acquisition initiatives,” said Geveden in a statement. “His deep experience in driving organic and inorganic growth initiatives will help secure our competitive positioning in the global security, clean , and nuclear medicine markets we serve, as well as align our strategic priorities going forward.”

Geiersbach has an MBA from the Anderson School of Management at the University of California, Los Angeles and holds a bachelor’s degree in history from Harvard University.

In August, BWXT announced plans to launch a subsidiary dedicated to the commercialization of fuel for the next generation of nuclear reactors.

In February, BWXT announced it had received $2.1 billion in Navy contracts to manufacture nuclear components for Virginia- and Columbia-class submarines, and in July, it won an additional $2.6 billion in Navy contracts for nuclear reactor components. In early 2025, the company also completed its $100 million purchase of L3Harris’ Aerojet Ordnance Tennessee, in Jonesborough, Tennessee; in April, BWXT bought land in Tennessee for a centrifuge plant.

A Fortune 1000 company, BWXT has nearly 10,000 employees and 20 major operating sites in the United States, Canada and the United Kingdom.

Ex-Mars executive pleads guilty to $28M fraud scheme

BRIDGEPORT, Conn. (AP) — A former executive for a subsidiary of candymaker pleaded guilty Thursday to fraud and tax charges in connection with his theft of $28 million from the company, federal prosecutors said.

, 58, appeared in in Bridgeport, . He also agreed to pay $28.4 million in restitution to and owes another $10 million in back taxes to the Internal Revenue Service, U.S. Attorney for Connecticut David Sullivan said in a statement.

Steed, of Stamford, Connecticut, who is free on $5 million bail, did not immediately return messages left at phone numbers and emails listed for him in public records. His lawyer, former U.S. Attorney for Connecticut Deirdre Daly, did not immediately return phone and email messages Thursday.

A dual U.S. and Argentine citizen, Steed was once a respected sugar market expert for , where his last position was global price risk manager. The company is a subsidiary of , Virginia-based Mars Inc., the maker of M&M’s, Snickers, Skittles, Altoids mints and Doublemint gum, as well as other food products and pet food.

A federal indictment accused him of stealing from Mars beginning in about 2013 through various schemes, including diverting funds to companies he set up. Steed sent the lion’s share of the stolen funds, more than $26 million, to one of his companies, MCNA LLC, which was created to mimic an actual Mars company, Mars Chocolate North America, prosecutors said.

Authorities say they have seized more than $18 million from Steed’s bank accounts, and Steed has agreed to forfeit the money. The government is also seeking to liquidate a home in Greenwich, Connecticut, that Steed allegedly purchased using $2.3 million of the stolen cash. Prosecutors say Steed sent another $2 million to Argentina, where he has relatives and owns a ranch.

Steed pleaded guilty to two counts of and one count of . Sentencing is set for Dec. 9.

Average rate on a 30-year mortgage falls to lowest level in nearly a year

Summary

  • 30-year mortgage rate drops to 6.35%, lowest since Oct. 2024
  • 15-year mortgage rate also fell, now averaging 5.5%
  • Decline driven by lower Treasury yields and Fed expectations
  • Fed expected to cut benchmark rate to 4.1% next week
  • Mortgage applications hit three-year high as surges

The average rate on a 30-year U.S. mortgage fell this week to its lowest level in nearly a year, reflecting a pullback in Treasury yields ahead of an expected interest rate cut from the next week.

The long-term rate eased to 6.35% from 6.5% last week, mortgage buyer said Thursday. A year ago, the rate averaged 6.2%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their , also fell. The average rate slipped to 5.5% from 5.6% last week. A year ago, it was 5.27%, Freddie Mac said.

Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation.

Rates have been mostly declining since late July amid growing expectations that the Fed will cut its benchmark short-term interest rate for the first time this year at the ‘s meeting of policymakers next week.

While the Fed doesn’t set mortgage rates, its actions can influence bond investors’ appetite for long-term U.S. government bonds, like 10-year Treasury notes. Lenders use the yield on 10-year Treasurys as a guide to pricing home loans. The yield was at 4% Thursday afternoon.

The Fed has kept its main interest rate on hold this year because it’s been more worried about inflation potentially worsening because of President Donald Trump’s tariffs than about the job market.

But in a high-profile speech last month, Federal Reserve Chair signaled the central bank may cut rates in coming months amid concerns about weaker job gains following a grim July jobs report, which included massive downward revisions for June and May.

More recent job market data have fueled speculation that the central bank could be preparing to lower rates. The Labor Department said last week that the economy added just 22,000 jobs in August. And on Tuesday, revised jobs data from the government showed the U.S. job market had been much weaker last year and this year than earlier data suggested.

Meanwhile, the latest weekly snapshot of unemployment benefit claims shows more U.S. workers applied for unemployment benefits last week, an indication that the number of could be rising.

The has been in a slump since 2022, when mortgage rates began climbing from historic lows. Sales have remained sluggish so far this year as the average rate on a 30-year mortgage has mostly hovered above 6.5%.

The average rate is now at its lowest level since Oct. 10, when it was 6.32%.

A similar pullback in rates happened last year in the weeks leading up to the Fed’s interest rate policy meeting in September. That’s when the Fed cut its key interest rate for the first time since March 2020, in the early days of the pandemic. Back then, the average rate on a 30-year mortgage got down to a 2-year low of 6.08%, but soon after climbed again, reaching above 7% by mid-January.

Mortgage rates could follow a similar trajectory this time, given that expectations of a Fed rate cut have already brought mortgage rates lower.

“We should not expect rates to drop much further, and in fact, there is a possibility that mortgage rates could actually increase after the Fed cut,” said Lisa Sturtevant, chief economist at Bright MLS.

For now, the recent pullback in mortgage rates has been encouraging to many prospective homebuyers and homeowners eager to refinance.

Mortgage applications, which include loans to buy a home or refinance an existing mortgage, jumped to a three-year high last week, according to the Mortgage Bankers Association.

Applications for mortgage refinancing loans made up nearly 50% of all applications last week, as homeowners who bought in recent years when mortgage rates surged seized the opportunity to lower their monthly home loan payment.

If mortgage rates continue to ease, home shoppers will benefit from more affordable financing. But lower mortgage rates could also bring in more buyers, making the market more competitive, at a time when sellers across the country are having a tougher time driving a hard bargain.

Butler Human Services Furniture to close Mecklenburg operations

SUMMARY:

  • Butler Human Services plans to close two facilities in Chase City
  • 51 employees to lose jobs
  • Company also consolidating operations in Ohio

 

Butler Human Services Furniture, which makes furniture for social service organizations such as group homes, plans to close its operations, with 51 employees losing their jobs, according to a notice sent to the state in compliance with the Worker Adjustment and Retraining Notification Act.

A subsidiary of Ohio-based Sauder , Butler Human Services has two manufacturing and distribution facilities scheduled to close in Chase City: one at 239 B St. and another at 168 Duckworth Drive.

Those operations will be consolidated into operations in Stryker, Ohio, according to a press release from Sauder Manufacturing, which owns Butler. The consolidation will allow Sauder Manufacturing to “strengthen efficiency, ensure long-term stability and continue delivering the highest quality products and services to customers,” according to a news release.

The will occur in phases, with the first beginning Oct. 24. The facilities are expected to close by April 2026. The impacted employees do not have bumping rights and are not represented by a union.

“While this was not an easy decision, it is a necessary step to continue serving our customers at the high level of quality and reliability they expect from us,” Mark Graber, president of Sauder Manufacturing, said in a statement. “We are deeply grateful to our employees in Virginia for their dedication and contributions. Supporting them through this transition is our top priority.”

Butler Human Services Furniture also has a sales office near Richmond staffed by 8 employees, according to a Sauder Manufacturing spokesperson. Of those, three workers will be laid off “due to the realignment of leadership functions,” the spokesperson stated. 

The company, previously known as Butler Woodcrafters, was founded in 1980 in Chesterfield County. In 2014, Sauder Manufacturing acquired the business, which at that time had about 70 employees, with 10 at its main office in Midlothian and others working at a production plant in Chase City, according to news reports.

Sauder Manufacturing has five subsidiaries that make furniture for churches, courtrooms, higher education and other businesses. It is a subsidiary of Ohio-based Sauder Woodworking, which owns other businesses, including Sauder Building Products, a producer of professional grade laminate products for contractors.

Another Sauder Woodworking company, Progressive Furniture, which also is based in Ohio, is closing at the end of the year and laying off about 30 workers, according to a March article in Furniture Today. In the article, an executive of the company, which designs and imports wood bedroom, dining and accent furniture, attributed the closure to business conditions and the shuttering of a supplier in Mexico.

Editor’s note: This story has been updated. 

Government contractor to add 1,200 jobs in Alexandria and Fairfax

SUMMARY:

  • is expanding its headquarters and adding 500 jobs
  • The company purchased its 239,000-square-foot office building for $29.3 million, plans $15.4 million in renovations
  • ‘s workforce in Alexandria will nearly double in five years

Alexandria-based government contractor Systems Planning & Analysis (SPA) announced Thursday it plans to invest $46.9 million to expand its headquarters, increase its presence in and create more than 1,200 jobs in the two localities.

Founded in 1972, the company provides data and analytics services designed to address national security challenges facing the United States and its allies. Its will nearly double the company’s Alexandria-based workforce of 600 over the next five years, creating nearly 500 jobs in the city.

Alexandria Mayor Alyia Gaskins, members, SPA leadership, Fairfax County officials and gathered at the company’s global headquarters at 2001 N. Beauregard St. on Thursday to announce the expansion.

“In Northern Virginia, SPA is expanding their operations at the speed of Virginia,” Youngkin said in a statement. “The commonwealth’s strategic location, pro-business policies, and access to world-class talent made the decision to grow here easy for the SPA team. Together, we are working to push creative boundaries in the world of data, security and national .”

As part of the headquarters expansion, a limited liability company associated with SPA purchased the 239,000-square-foot office building for $29.3 million in June, according to city property records, and the company will undertake extensive renovations, expected to cost $15.4 million, to modernize the 35-year-old building, city officials said.

The governor’s office said SPA company anticipates growth at its existing facility in Chantilly and is actively exploring new locations to accommodate its expanding workforce. SPA anticipates creating 714 jobs in Fairfax.

Business officials did not specify the company’s timeline for renovations. The project will go before the Alexandria City Council for approval Sept. 30.

“We congratulate Systems Planning & Analysis on this exciting next chapter of growth at their headquarters and across the region,” Gaskins said in a statement. “The purchase of their office headquarters is a signal of their commitment to and investment in Alexandria, where they will grow their workforce and their community partnerships. This planned regional growth cements their place as a pillar of the defense and national security industry, and we are proud to add them to the growing list of Alexandria business success stories.”

“We are thrilled to deepen our roots in Alexandria and Fairfax County, two vibrant communities that have supported our growth for more than 50 years,” CEO Rich Sawchak said in a statement. “This expansion reflects our commitment to providing exceptional data-driven analytical insights to our clients while fostering innovation within our own organization. We are excited to welcome new talent and invest in the local economy.”

SPA will receive a grant from the Commonwealth’s Opportunity Fund, matched by the Alexandria government through the Alexandria Investment Fund, for , along with city investments in infrastructure such as bus stops, walkways and curb extensions near the headquarters to benefit the community and improve neighborhood access. Youngkin’s office said the grants are valued at $9.2 million.

The company will also partner with the Alexandria Workforce Development Center to give interview priority to qualified job applicants who come from the center. SPA will also prioritize Alexandria-based vendors for any procurement needs and will work with Alexandria City Public Schools and other local nonprofits to help provide programming and practical STEM skill-building for local youth.

SPA has 21 office locations and more than 2,500 employees worldwide.

The number of Americans filing for jobless benefits last week hits 263,000, most in nearly 4 years

Summary

  • Jobless claims rose 27,000 to 263,000 in early September
  • Highest unemployment filings since October 2021
  • Economists expected 231,000 claims, below actual numbers
  • Claims had held mostly between 200,000–250,000 since pandemic
  • Data signals labor market is showing signs of softening

WASHINGTON (AP) — U.S. jobless claim applications jumped to their highest level in almost four years last week, the latest sign that the labor market is softening.

The number of Americans filing for unemployment benefits for the week ending Sept. 6 rose 27,000 to 263,000, the Labor Department reported Thursday. That’s the most filings since the week of Oct. 23, 2021 and well above the 231,000 new applications economists forecast.

Weekly applications for jobless benefits are considered a proxy for and have mostly settled in a historically low range between 200,000 and 250,000 since the U.S. began to emerge from the COVID-19 pandemic nearly four years ago.

Despite last week’s increase, layoffs remain relatively low by historical measures and hiring has weakened, a trend that economists describe as “no hire, no fire.”

Earlier this week, the Bureau of Labor Statistics issued a massive preliminary revision of U.S. job gains for the 12 months ending in March, further evidence that the labor market has not been as strong as previously thought.

The BLS’s revised figures showed that U.S. employers added 911,000 fewer jobs than originally reported in the year ending in March 2025, with the biggest weakness coming from the leisure and hospitality sector, professional and business services and retail. The report showed that job gains were tapering long before President Donald Trump rolled out his far-reaching tariffs on U.S. trading partners in April.

The department issues the revisions every year, intending to better account for new businesses and ones that had gone out of business. Final revisions will come out in February 2026.

The updated figures came after the agency reported Friday that the economy generated just 22,000 jobs in August, well below the 80,000 economists were expecting.

Also last week, the government said that U.S. employers advertised 7.2 million job openings at the end of July, fewer than economists had forecast and the first time since April of 2021 that there were more unemployed Americans than job postings.

Last month’s grim July employment report, which showed job gains of just 73,000 and included huge downward revisions for June and May, sent financial markets spiraling and prompted Trump to fire the head of the agency that compiles the monthly data.

The various labor market reports have bolstered fears that Trump’s erratic economic policies, including the unpredictable taxes on imports, have created so much uncertainty that businesses are reluctant to hire.

Broader U.S. economic growth has weakened so far this year as many companies have pulled back on projects amid the uncertainty surrounding the impacts of the tariffs. Growth slowed to about a 1.3% annual rate in the first half of the year, down from 2.5% in 2024.

The sluggishness in the job market is a key reason that Chair  recently signaled that the may cut its key interest rate at its meeting next week. A cut could reduce other borrowing costs in the economy, including mortgages, auto loans, and business borrowing.

While a rate cut could spur economic growth, economists fear it could push inflation even farther above the Fed’s target of 2%.

Thursday’s report showed that the four-week average of claims, which evens out some of the week-to-week volatility, rose by 9,750 to 240,500.

The total number of Americans collecting unemployment benefits for the previous week of Aug. 30 was unchanged at 1.94 million.

Korean workers detained in immigration raid bound for Atlanta and flight back home

Summary

  • 330 workers released after Georgia plant raid
  • 316 South Koreans among detainees, plus Chinese, Japanese, Indonesian nationals
  • Korean Air sent plane to bring workers back home
  • Seoul presses U.S. for new visa category for skilled workers
  • President Lee warns could affect Korean investments

ATLANTA (AP) — More than 300 South Korean workers detained in an at a Georgia battery plant last week headed to Atlanta on Thursday and a flight home.

‘s Foreign Ministry confirmed they were due arrive in South Korea late Friday afternoon. The developments came the same day South Korean President Lee Jae Myung called for improvements in the U.S. visa system as he spoke about the Sept. 4 immigration raid that resulted in the arrest of more than 300 South Korean workers at at Hyundai’s sprawling auto plant west of Savannah.

The Foreign Ministry said U.S. authorities have released the 330 detainees — 316 of them Koreans — and that they were being transported by buses to Atlanta’s Hartsfield-Jackson airport. The group includes 10 Chinese nationals, three Japanese nationals and one Indonesian.

The flight is back on track after an earlier departure had been canceled for an unspecified reason.

Here are some things to know about the raid and its aftermath:

What efforts have been made to get the South Koreans home?

The Korean Air 747-8i departed from Seoul for the U.S. to bring back the detained Korean workers and landed in Atlanta.

The workers were being held at an immigration detention center in Folkston, in southeast Georgia, near the state line with Florida. It’s a 285-mile (460-kilometer) drive from there to Atlanta.

South Korean officials said they were negotiating with the U.S. to win “voluntary” departures for the workers, rather than deportations, which could make them ineligible to return to the U.S. for up to 10 years.

During a visit to Washington, South Korean Foreign Minister Cho Hyun met with U.S. Secretary of State Marco Rubio and told him that his people were left with “big pains and shocks” because the video of the workers’ arrests was publicly disclosed, the ministry said in a statement.

Cho called for the U.S. administration to help the workers leave as soon as possible — without being handcuffed — and to ensure they do not face problems in future reentry to the U.S., the statement said.

During his meeting with Rubio, Cho also proposed the creation of a joint South Korea-U.S. working group to introduce a new visa category for workers from the Asian nation, according to Cho’s ministry.

South Korean TV showed Cho Ki-joong, consul general at the embassy in Washington, speaking outside the detention center. He said some administrative steps remained but things were going smoothly. The Foreign Ministry declined to comment on media reports that he and other diplomats met with the detained workers.

Korean pause in investments?

South Korea’s president said in a speech marking 100 days in office Thursday that Korean companies would likely hesitate to further invest in the U.S. unless Washington improves its visa system for their workers.

Lee said that whether the U.S. establishes a visa system allowing South Korean companies to send skilled workers to industrial sites will have a “major impact” on future investments.

“It’s not like these are long-term workers. When you build a factory or install equipment at a factory, you need technicians, but the United States doesn’t have that workforce and yet they won’t issue visas to let our people stay and do the work,” he said.

“If that’s not possible, then establishing a local factory in the United States will either come with severe disadvantages or become very difficult for our companies. They will wonder whether they should even do it,” Lee added.

What are the immigration consequences for the workers?

U.S. authorities have said that those detained during the raid were “unlawfully working” at the plant. But Charles Kuck, a lawyer representing several of the detained South Koreans, said the “vast majority” of the workers from South Korea were doing work that is authorized under the B-1 business visitor visa program.

A B-1 visitor for business visa allows to stay for up to six months, getting reimbursed for expenses while collecting a paycheck back home. There are limits — for example, they can supervise construction projects but can’t build anything themselves — but if it’s spelled out in a , they can install equipment, Los Angeles immigration lawyer Angelo Paparelli said.

Also, South Korea is one of 41 countries whose citizens can use the U.S. Electronic System for Travel Authorization (ESTA), which provides visa waivers to those who can provide “a legitimate reason” for their visit. This basically gives them B-1 visa status for up to 90 days, according to Los Angeles immigration attorney Rita Sostrin.

Georgia officials reaffirm relationship with South Korea

The raid targeted one of the Georgia’s largest and most high-profile sites, touted by the governor and other officials as the largest economic project in state history. Hyundai Motor Group began manufacturing EVs a year ago at the $7.6 billion plant, which employs about 1,200 people.

In a statement Wednesday, the governor’s office stressed its “strong relationship with the Republic of Korea and Korean partners like Hyundai, stretching back 40 years to the establishment of Georgia’s trad office in Seoul.”