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For The Record June 2023
Published
Virginia Business
CENTRAL VIRGINIA
Henrico County-based Fortune 500 tobacco manufacturer Altria Group Inc. settled at least 6,000 state and federal lawsuits related to its stake in Juul Labs Inc. for $235 million in May. The settlements will be paid in the second quarter of 2023. Altria purchased a 35% stake in e-cigarette company Juul for $12.8 billion in 2018. Months after Altria’s investment, Juul’s value fell under an avalanche of civil lawsuits over accusations that its products were being marketed to minors. The May settlement covers approximately 50 class-action lawsuits, 4,500 personal injury suits, 1,500 governmental entity actions and 1,400 school district cases, as well as 750 state lawsuits. (VirginiaBusiness.com)
The Virginia Department of General Services has declared the Central Virginia Training Center property in Amherst County as surplus, an expected step to redevelop the 380-acre campus near the James River, according to a May announcement by Lynchburg Regional Business Alliance. CVTC, a former state-owned center for people with disabilities, closed in 2020. By marking the property as surplus, Amherst’s Economic Development Authority and/or its government have less than 180 days to submit a proposal to purchase the property. If either decides to submit a proposal and it is viable and of benefit to the commonwealth, then the department will negotiate; otherwise, the property will be offered for public sale. (The News & Advance)
Industrial power equipment manufacturer Delta Star Inc. will invest $30.2 million to expand in Lynchburg, creating an estimated 149 jobs, Gov. Glenn Youngkin announced May 3. The company will add 80,000 square feet of manufacturing space to its 300,000-square-foot facility and will consolidate its headquarters and office functions in an adjacent 14,000-square-foot corporate building. Virginia competed with California and Pennsylvania for the project. (VirginiaBusiness.com)
Timmons Group, the largest engineering and technology company in the Richmond region, will develop a 150,000-square-foot office building at the Springline at District 60 site in Chesterfield County. The five-story building will be the new corporate headquarters for 400 Timmons employees. The Spring Rock Green property was purchased by the county in 2021, and offices will house employees from Chesterfield County Public Schools and the Department of Economic Development, in addition to Timmons. The new property will also include residential, retail, and sports and entertainment venues. (Richmond Times-Dispatch)
VCU Health paid $72.9 million to back out of a $325 million development deal earlier this year, according to a May 5 announcement by Dr. Marlon Levy, CEO of the health system and Virginia Commonwealth University’s interim senior vice president for health sciences. The project included plans for a medical office tower and multiuse project in downtown Richmond at the site of the city government’s former Public Safety Building. Levy said that the original plans were developed before the COVID-19 pandemic, and construction and other challenges made the project “impossible,” adding that it would have caused “long-term financial repercussions.” (VirginiaBusiness.com)
PEOPLE
Former Owens & Minor Inc. Chairman, President and CEO G. Gilmer Minor III, 82, died on May 4. During his 1981 to 2005 tenure leading the Hanover County-based Fortune 500 corporation, he shepherded its growth from a less than $300 million-a-year medical supply firm to a $4.82 billion powerhouse. The great-grandson of one of the company’s founders, he was with the company for his entire career, starting in 1963. He worked in sales, operations and management capacities before becoming president in 1981 and CEO in 1984. He was elected chairman in 1994. In 1999, he relinquished the president’s title but remained non-executive chair of the company until 2013. (Richmond Times-Dispatch)
EASTERN VIRGINIA
Costs are rising for the Atlantic Park surf park project again, and Virginia Beach City Council will consider shuffling millions of dollars around in the city’s $2.5 billion proposed budget to pay for it. The city’s proposed reconciled budget includes an additional $12.5 million to cover more utility upgrades and construction of the entertainment venue. The city already is on the hook for $140 million for the $335 million project being built at the Oceanfront. Venture Realty Group, which is developing Atlantic Park with music icon Pharrell Williams, closed on financing for the project in March. (The Virginian-Pilot)
Beginning June 1, Virginia Beach-based unmanned flight solutions company DroneUp plans to launch a project to deliver medications via drone to Eastern Shore and Tangier Island patients as part of a collaboration with Riverside Health System and the Virginia Institute for Spaceflight & Autonomy (VISA) at Old Dominion University, among other partners. The project received $1.877 million in funding from the U.S. Department of Transportation’s SMART Grants Program as one of 59 winning proposals out of a pool of 389 applications. (VirginiaBusiness.com)
When teacher Abigail Zwerner was shot by a 6-year-old student at Richneck Elementary School in early January, it was a “workplace injury” that arose from her job, lawyers for the Newport News School Board contended in a new filing in late April. As such, Zwerner’s pending $40 million lawsuit must be tossed and she should instead file a workers’ compensation claim for her injuries, the board’s lawyers maintain. The board’s attorneys, from the Virginia Beach law firm Pender & Coward, cited the “unfortunate reality” that teaching in the United States — even for first grade teachers like Zwerner — isn’t without its dangers. The filing, submitted by attorney Anne C. Lahren, requested that a Newport News Circuit Court judge throw out Zwerner’s lawsuit before it gets off the ground. (Daily Press)
Retired Dominion Enterprises Inc. President and CEO Conrad M. Hall donated $1 million to Norfolk State University, the university announced May 5. The gift from Hall, who serves on NSU’s board of visitors, will support the creation of an endowed chair, the Conrad M. Hall Endowed Chair in Constitutional and U.S. History, in NSU’s Department of History and Interdisciplinary Studies and its political science department. “Preservation of our history is imperative to our nation staying true to its founding,” NSU President Javaune Adams-Gaston said. “This professorship will have an enduring impact on our scholars and their understanding of the underpinnings that make our nation great.” (VirginiaBusiness.com)
Rivers Casino Portsmouth agreed to pay $275,000 in March after the Virginia Lottery spotted several alleged gaming violations, including “underage and voluntarily excluded persons” at the casino. The lottery, which regulates casinos throughout the commonwealth, worked with the casino to review alleged violations of the Casino Gaming Law, according to a settlement agreement between the two entities. Other violations focused on licensing requirements for slot machines and
unauthorized games. (The Virginian-Pilot)
PEOPLE
Mary Kate Andris has been named the next president and CEO of the Norfolk-based Civic Leadership Institute. Civic, which aims to connect executive leaders to improve life in Hampton Roads, runs an eight-month executive program, recognizes philanthropic leaders with its Darden Awards, and hosts a scholars’ program for Old Dominion University and Tidewater Community College students. Sarah Jane Kirkland, the institute’s previous president and CEO, left Civic to become ODU’s associate vice president for corporate partnerships in March. (VirginiaBusiness.com)
NORTHERN VIRGINIA
Irish air carrier Ryanair plans to order as many as 300 737 MAX-10 aircraft from Arlington County-based Fortune 100 contractor Boeing Co. in a $40 billion deal, the companies announced May 9. Subject to approval by Ryanair’s stockholders, the deal includes a firm order from the airline for 150 aircraft and an option for another 150, with delivery to start in 2027 and continue through 2033. About 150 of the 737 MAX-10 jets will replace older jets in Ryanair’s fleet. The jets are expected to grow Ryanair’s passengers from 168 million to more than 300 million annually by 2034, creating 10,000 jobs for pilots, cabin, crew and engineers across Europe. (VirginiaBusiness.com)
George Mason University’s School of Business will be renamed for the late Donald G. Costello, who left the university $50 million, the largest individual gift in GMU’s 50-year history. Costello, who died in 2017 at the age of 75, was born in Leesburg and in 1976 co-founded Haymarket-based Century Stair Co., which became the East Coast’s largest stair manufacturer. The bequest, announced April 27, will also establish an endowment for undergraduate and graduate scholarships for business students. (VirginiaBusiness.com)
After slowing its cryptocurrency purchases and selling a portion of its holdings for the first time, Tysons-based MicroStrategy Inc. shelled out $179 million for 7,500 bitcoins during the first quarter of 2023. It was the largest number of bitcoins MicroStrategy, the largest public corporate holder of the cryptocurrency, had bought in a single quarter since the final three months of 2021, and it signals the tech company’s intention to continue accumulating bitcoin despite
its wild price swings, President and CEO Phong Le said on an earnings call May 1.
(Washington Business Journal)
Northern Virginia Community College and Google LLC on May 4 announced a partnership on an entry-level certificate in cybersecurity. The certificate can be completed online in under six months of part-time study with no degree or experience, and state residents can take the course through the Virginia Ready Initiative, a nonprofit co-founded by Gov. Glenn Youngkin in 2020 to retrain employees to work in high-demand fields. Google’s certificate program includes a consortium of more than 150 companies that hire employees with certifications, including American Express Co., Colgate-Palmolive Co., T-Mobile and Walmart Inc. (Inside NoVa)
On May 12, the Washington Commanders confirmed that team owner Dan Snyder reached a deal to sell the Ashburn-based football team to an investor group led by Maryland billionaire Josh Harris and including NBA legend Earvin “Magic” Johnson and Danaher Corp. co-founder Mitchell Rales. Terms of the reported record $6 billion sale were not immediately released. The deal was expected to be approved by the NFL and team owners by late May. Meanwhile, Loudoun County officials are pursuing discussions with the franchise to bring a stadium for the Commanders to a portion of the Chantilly Crushed Stone/Loudoun Quarries property currently planned for the Waterside mixed-use development. (Loudoun Times-Mirror, VirginiaBusiness.com)
PEOPLE
Arlington County Board of Supervisors member Katie Cristol will step down early to take a job as the first permanent CEO of the Tysons Community Alliance. Cristol will assume the role on July 5, relieving acting CEO Richard Bradley. In October 2022, the Tysons Community Alliance replaced the Tysons Partnership to focus on economic and social development in the area. Cristol was elected to the Arlington board in November 2015, serving as chair in 2018 and 2022. In November 2022, she announced she would not seek reelection. (VirginiaBusiness.com)
ROANOKE/NEW RIVER VALLEY
Bank of Botetourt is planning branches in Roanoke and Rocky Mount as executives grow one of the few locally based banks. The expansion will mark the bank’s entrance into Roanoke city. That branch will be at Melrose Center, a $30 million community center that Goodwill Industries of the Valleys plans to open by the end of 2024 on Melrose Avenue in northwest Roanoke. The bank’s Rocky Mount branch, in the seat of Franklin County, is expected to open in summer 2024. (The Roanoke Times, WSLS)
Layman Distributing, a woman-owned wholesale distributor of convenience and grocery store products, will invest $6.8 million to expand in Salem, adding 42 jobs, Gov. Glenn Youngkin announced May 5. The company will relocate to a facility at 2157 Aspersion Drive, doubling its current square footage and operational capacity. Founded in 1948, the company is currently located at 1630 W. Main St. in Salem. “This new facility will increase our efficiency so we can continue introducing new product lines, optimize inventory levels and provide new services,” said W. Scott Thomasson, the company’s vice president of sales, purchasing and warehouse operations. (VirginiaBusiness.com)
Builders of the Mountain Valley Pipeline said May 2 that construction of the natural gas pipeline could resume this summer but also acknowledged that continued legal battles might further stall the long-delayed project. “We see a path to obtaining all approvals by early summer. And while narrow, this would give us the opportunity to complete construction by late 2023,” said Thomas Karam, chairman and CEO of Equitrans Midstream Corp., the lead partner in the joint venture. Karam spoke during a conference call with financial analysts to discuss the company’s 2023 first quarter results. The last major forward construction on the project took place in fall 2021. (The Roanoke Times)
Virginia Tech-focused independent sports marketing agency Triumph NIL LLC has acquired fellow marketing agency Commonwealth NIL LLC, the two companies announced in early May. It marked the latest business development in the new and rapidly growing world of college student-athletes earning money from their own publicity rights. Nearly two years after a U.S. Supreme Court decision allowed college athletes to earn NIL — or name, image and likeness — compensation, students are cashing in with a variety of promotional products and services, from autographs and apparel to personal appearances and customized video messages. Under the terms of the deal, Christiansburg-based Commonwealth NIL will cease operations. Triumph NIL is based in Blacksburg.
(Cardinal News)
Virginia Western Community College and Radford University are teaming up to support community college students who want to pursue a bachelor’s degree in biology. On May 1, the schools signed an articulation agreement to offer eligible VWCC students guaranteed admission to Radford. Eligible VWCC students must complete an associate of science degree with a specialization in biotechnology, must major in biology at Radford and complete at least half
of their requirements for the major there. (Cardinal News)
PEOPLE
Dr. John A. Jane Jr. will be the first chair of Carilion Clinic’s newly formed neurosurgery department beginning June 19, the Roanoke-based health system announced April 25. “Dr. Jane will join a strong neurosurgical team at Carilion,” Dr. Daniel Harrington, Carilion’s interim chief medical officer, said. “We’re excited to continue expanding our program with such a capable leader.” Jane comes from UVA Health and specializes in the treatment of pituitary tumors and techniques that are minimally invasive to the brain. (VirginiaBusiness.com)
SHENANDOAH VALLEY
Staunton-based Farm Credit of the Virginias, a cooperative lending institution that serves Virginia, West Virginia and western Maryland, said in April it would return $30 million to its customers that month through its annual patronage program. Its board of directors voted to return 70% of Farm Credit of the Virginias’ 2022 net profits to its customer-owners. The program effectively lowers the cost of borrowing from the institution, and this $30 million distribution equates to having an interest-free loan for three-and-a-half months and represents about 30% of the interest accrued on loans. (Daily News-Record)
In a work session May 1, most Front Royal Town Council members and Mayor Lori A. Cockrell voiced support for maintaining the Front Royal Economic Development Authority. The council formally established the EDA in March 2021, when the Front Royal-Warren County EDA was mired in financial and legal challenges, and it had its first board meeting in January 2022. The FREDA board last met in July 2022. The council next needs to appoint three directors following two expired terms and one resignation. (The Northern Virginia Daily)
Shenandoah University received a $100,000 challenge grant from The Mary Morton Parsons Foundation for its Hub for Innovators, Veterans and Entrepreneurs (HIVE), the university announced April 17. The university is renovating its former National Guard armory building to hold the HIVE, which will feature an innovation accelerator for tech business startups, expansions and relocations, as well as veteran support. The grant is contingent upon Shenandoah University raising an additional $100,000 by Nov. 30. The funding would ensure that the project remains on the expected timeline, according to DeShon Foxx, the university’s assistant vice president for advancement. (News release)
Valley Health President and CEO Mark Nantz is “very optimistic” about 2024 contract negotiations with Anthem Blue Cross and Blue Shield, he said during the health system’s May 9 annual corporation meeting. If the entities do not renew the current contract, set to expire Dec. 31, Valley Health would be out-of-network for roughly 55,000 Anthem patients who seek care at its facilities annually. In April, Valley Health and Anthem reached a settlement on the suit that Valley Health filed in October 2022 to recoup $11.4 million in past due payments. The suit increased to $15 million, but the settlement terms are confidential.
(The Winchester Star)
Implementation of a flight network for unmanned aircraft in Winchester is expected to occur late this year, according to John S. Eberhardt III, chief technology officer of Great Falls-based data science and engineering company Advanced Technology Applications LLC (ATA LLC). Eberhardt has been part of a local effort to make Winchester a drone manufacturer and service provider hub. Using the Virginia Flight Information Exchange (VA FIX) platform, the flight network will create a zone to track drones, monitor unsafe practices and determine the location of drone operators who are not following flight rules. (The Winchester Star)
PEOPLE
Christendom College President Timothy O’Donnell announced in early May he will retire after the 2023-24 academic year. O’Donnell has helmed the private Catholic liberal arts college in Warren County for more than 30 years. In that period, undergraduate enrollment increased from 144 to nearly 550, and its endowment swelled from $200,000 to more than $28 million. After a sabbatical, O’Donnell will serve as a member of the college’s board of directors and a professor of history and technology. The board of directors has created a search committee that is working with Hand & Associates to find his replacement.
(The Northern Virginia Daily)
SOUTHERN VIRGINIA
Companies owned by West Virginia Gov. Jim Justice and his family say they are involved in a “significant lending dispute” with Martinsville-based Carter Bank & Trust. Jay Justice, president and CEO of the companies and the Republican governor’s son, said in late April that the companies and the bank have been unable to reach an agreement to pay off more than $300 million in loans. The companies have a plan in mind but claim that Carter Bank & Trust “currently enjoys more than
$20 million a year in interest revenue from the Justice businesses” and “refuses to seriously discuss such payoff proposals.” (Cardinal News)
Just days before a temporary casino opened in Danville, a new regional tourism brand was unveiled May 10: Visit SoSi. The new marketing campaign ties in the affiliation with Southside Virginia with a new twist by playing off the sounds of “so” and “see,” explains tourism manager Lisa Meriwether. When the full Caesars Virginia casino opens next year, more than 2 million visitors are expected to flood into Danville. Visit SoSi emerged as the top winner for the area’s new slogan through a 9-month development period that included 2,000 surveys and 16 focus groups. (Danville Register & Bee)
Dominion Energy Inc.’s latest long-range plan for meeting electrical demand over the next 15 years proposes to extend the lifespan of gas- and coal-burning plants in Virginia, including the Clover Power Station in Halifax County through this decade and next. The Fortune 500 utility’s updated Integrated Resource Plan, filed with the State Corporation Commission in early May, pushes back the projected date for potentially closing the Clover power plant until 2040. Other Dominion units that were tentatively slated for closure over the next few years — including South Anna, Chesterfield Units 7 and 8, Possum Point, Ladysmith, Elizabeth River, Darbytown and Bear Garden — will also likely remain operational, based on current demand projections, until 2044 or 2045. (SoVa Now)
Halifax Town Council voted in early May to have the Crawford Solar Project looked into once again by the Halifax Planning Commission. In March, the 5-megawatt facility was denied a special-use permit on a 5-1 vote by the council, following numerous public hearings held to debate its potential impact on the town. The facility would take up an estimated 45 acres of an 85.8-acre parcel of land on Crawford Road owned by local businessman Kenneth Hodges. The project developers are esaSolar and Apex Clean Energy. (SoVa Now)
A new $230,000 grant from AmeriCorps will extend and strengthen a health care initiative in the Dan River Region, the Institute for Advanced Learning and Research announced in early May. Specifically, the grant will funnel funds to a local AmeriCorps program known as REACH — Regional Engagement to Advance Community Health. Operated by the federal agency for service and volunteerism, REACH provides services such as public health workshops and education outreach. (Danville Register & Bee)
The Virginia Employment Commission planned to close its customer call center in South Boston in June, trimming 41 jobs of 157 total positions that the VEC is eliminating statewide. The closing of the South Boston call center, located at the Southern Virginia Technology Park, will leave the VEC with one call center in operation in Buchanan County, near the town of Grundy. The last day for the South Boston center will be June 9. VEC spokesperson Joyce Fogg confirmed the call center will be shuttered, affecting 19 classified employees, with the other job losses falling on temporary and wage employees. The job reductions are the result of long-anticipated cuts in federal funding following the pandemic. (SoVa Now)
SOUTHWEST VIRGINIA
Appalachian Power Co. filed a plan in May with the state to build several miles of new high-voltage power lines and a new electrical substation at an industrial park in Carroll County to attract large industry and jobs. The 273-acre Wildwood Commerce Park, located in Hillsville off Interstate 77, has two graded, pad-ready sites — one 100 acres and the other 25 acres — that could accommodate businesses, but no companies have set up shop there. If approved, the utility plans to begin construction on the 138-kilovolt transmission line extension and substation this year and complete the project late next year. (Cardinal News)
Minnesota-based Cardinal Glass announced in late April a $40 million expansion at its facility in the Oak Park Center for Business and Industry in Abingdon. The company, which makes glass for residential windows and doors, expects to create about 30 jobs, which would increase employment in the park by about 10%. Cardinal Glass bought the former AGC Glass Inc. plant in 2021 and has already begun its 215,000-square-foot expansion. More than half of the expansion is under roof,
and constructor J.A. Street & Associates expects to complete the building by the end of 2023. (Bristol Herald Courier)
The Hard Rock Hotel & Casino Bristol brought in more than $13.8 million in adjusted gross revenues from slots and table games in March, according to a late April Virginia Lottery news release. The casino reaped about $11.89 million from its 888 slot machines and $1.9 million from 29 table games. The lottery received more than $2.48 million in taxes from the casino’s March revenue. Of that, the Regional Improvement Commission will receive $828,262, and the Problem Gambling Treatment and Support Fund will receive $19,878. The Family and Children’s Trust Fund will receive $4,969, and about $1.6 million will remain in the Gaming Proceeds Fund. (Bristol Now)
The Smyth County Board of Supervisors approved Grow Smyth County, a new program to address the county’s need for housing, in late April. The county and the Mount Rogers Planning District Commission will partner on the project, and the county will direct $3 million of American Rescue Plan Act funds into a revolving loan fund for housing. The supervisors implemented a 1% interest fee on loans, and the program is expected to yield about 100 homes. Marion and Smyth County are facing a 1,000-plus housing unit shortage, according to a report that Marion officials reviewed in March 2022. (Bristol Herald Courier)
The University of Virginia’s College at Wise received a $24,840 grant as part of a statewide effort to turn federal work-study jobs into work-based learning opportunities. The State Council of Higher Education for Virginia announced more than $142,000 in grants from the Virginia Talent + Opportunity Partnership to four institutions in early May. U.Va. Wise will use its one-year grant to plan an implementation strategy for converting its federal work-study positions into internships. In the planning year, the university will invite stakeholders from across campus to provide input on the transformation. (The Coalfield Progress)
Wise Town Council unanimously passed an ordinance to create an economic development authority during its April 25 meeting. The EDA will promote development through small business startup planning, business mentorships, loan programs and grant opportunities, and it will be able to acquire, lease and sell property. The town created an economic development committee to draft the EDA’s framework and appoint its seven board members. Town Planner Reagan Walsh, Town Manager Laura Roberts, Events Coordinator Natasha Proulex and council member Caynor Smith serve on the committee, and Mayor Teresa Adkins chairs. (The Coalfield Progress)
