CREATING NEW CONNECTIONS FOR VIRGINIA’S 757
2019 ANNUAL REPORT
CONTENTS 4 From the Chair 5 About the Alliance 6 President’s Report INVESTOR RELATIONS 9 2019 Investors BUSINESS DEVELOPMENT 10 Activity Report 12 Announcements 14 Regional Economy MARKETING 16 Envision 2020 GOVERNANCE 18 2019 Board of Directors 20 2020 Leadership & Committee Structure 22 Financials 23 Staff LOCALITY HIGHLIGHTS 25 Chesapeake 26 Franklin/Southampton County 27 Hampton 28 Isle of Wight County 29 Newport News 30 Norfolk 31 Poquoson 32 Portsmouth 33 Suffolk 34 Virginia Beach
LETTER FROM THE CHAIR The Alliance has undergone many positive changes this year. We often refer to ourselves as “the new Alliance” because we have become a very different organization. Interim President & CEO, Steve Herbert, took the reins of the new Alliance in January and strengthened our relationships in the region. He did a tremendous job leading the organization and we’re grateful for his service. In mid-September, Doug Smith became the permanent President & CEO. Having served in a variety of roles in this region including City Manager of Norfolk, Deputy City Manager of both Virginia Beach and Portsmouth, as well as roles as a banker, consultant and Portsmouth City Councilman, Doug brings a unique perspective and passion to the Alliance. Through the fundraising efforts of the Alliance capital campaign and our partnership with Reinvent Hampton Roads, many new private sector investors came on board and others increased their contributions. For the first time in recent history, the private sector has invested slightly more than the public sector indicating the confidence our business community has in the Alliance’s important work. We have several investors committing $100,000 a year, including Dollar Tree, Ferguson, TowneBank, Sentara, Hampton Roads Community Foundation, Hampton Roads Shipping Association and The Port of Virginia. We also have several investors committing $50,000 a year including Dominion Energy, ECPI University, Virginia Natural Gas, Cox, SunTrust and The Miller Group. We’re grateful to all our investors whom you will see listed on pages 8-9 for the confidence they have shown in the new Alliance. To further ensure our 70+ investors remain engaged, we hired a Director of Investor Relations & Development whose focus will be to create relationships with our investors so they understand the importance and the value of their investment. Alisa Crider joined the Alliance in December. She will create an investor engagement program that will include quarterly investor update events to further ensure our investors remain aware of what the Alliance is doing, stay connected with each other, and remain cognizant of industry trends and happenings in the region. On the governance side, a Master Agreement for Regional Economic Development was executed in September by all the City Managers of our 11 localities. Our public investors committed to match a share of funding equal to that of the private sector with the goal of raising at least $4M annually. We’re grateful for the confidence our public investors have in our new direction. Outlined in the Master Agreement was the restructuring of the Alliance board to a smaller, more nimble size so it can be an effective working group of C-suite leaders and Mayors to discuss and tackle the region’s economic shortcomings and provide pathways to become a more vibrant and united Hampton Roads. Rather than a board of 60+ or even 30+ members, as we’ve had in the past, the Alliance will now operate with a board of 13: seven private, six public and six ex-officio members. This reduced size will allow for more efficiency and streamline the decision-making processes. We’re in the process of amending our Bylaws to reflect our new structure. With a smaller board, the creation of functional committees will be critical to our work so we can bring key people together to focus on our industry sectors outlined in the IBM Study. These sectors include Business & Shared Services, Information Technology, Advanced Manufacturing, Food & Beverage and Distribution & Logistics. By having both public and private leaders participate in these committees, we’ll not only engage with our investors in new and beneficial ways, but also have the right people at the table who are intimately involved in these fields and aware of potential issues to be discussed and handled. We’ve also established working committees around our Business Intelligence efforts. Those committees of public sector and private sector leaders focus on Sites & Facilities, Supply Chain Recruitment, Economic Impact and our Comprehensive Economic Development Strategy (CEDS). For your reference, we’ve enclosed an organizational chart outlining our 2020 committee structure on page 21. We encourage participation in the various committees by our members or representatives from their organizations.
We are a new Alliance. We are creating new connections and aligning our efforts to foster a region of choice for economic investment, business attraction, retention and expansion, and to spread the message of the 757 as the most connected and collaborative regional economy.
Brian K. Skinner 2019 Alliance Chair 4
Creating new Connections for Virginia’s 757
ABOUT THE ALLIANCE
The Alliance is proud to represent the localities of:
The Hampton Roads Economic Development Alliance (the Alliance) is a non-profit public-private partnership that represents 11 communities and over 70 private sector investors in the Hampton Roads region of Virginia. The Alliance is committed to a more prosperous and diverse regional economy and works tirelessly to aggressively attract, grow and retain higher wage industries, talent and jobs. We are the leading regional economic development organization and all business attraction and expansion activities are designed to highlight the unique assets of our 11 localities while emphasizing the collective strengths of the region. The mission of the Alliance is to market Hampton Roads as the primary region of choice for economic investment and business expansion, and to serve as the area’s leading economic development and marketing organization to recruit and encourage new and expanding businesses and a talented business employment pool to locate in Hampton Roads.
OUR SERVICES Marketing Hampton Roads, Virginia as a globally competitive location for business and talent.
Facilitating the decision process for companies who are considering Hampton Roads for new business investments and expansions.
Leading collaborative processes across peer organizations to leverage complementary assets and strengthen coordinated action.
Engaging the region’s top business, academic, and elected leaders to understand key trends impacting the region’s economic competitiveness.
Assisting existing businesses to grow in Hampton Roads through a Business Expansion program in partnership with the Virginia Economic Development Partnership.
2019 Annual Report
5
PRESIDENT’S REPORT Economic development occurs at a regional level without regard to political jurisdictions and great regions have strong well-coordinated public-private economic development ecosystems. The new Alliance plays an essential coordinating role in our region’s ecosystem and I am proud to be leading this organization. The narrative that our region does not collaborate is an old paradigm that is simply no longer true. Examples of regional collaboration include the reform of the HRTPO; the $5B transportation package being funded by HRTAC, The Eastern Virginia RIFA, the new Broadband Authority and now the transformation of HREDA into the new Alliance. Chairman Skinner outlined the substantive changes we have made relative to our investor support and governance. I will share some budget highlights and expand upon some operational changes. Our most noticeable operational change is the addition of our Peninsula office. In December, we opened an office at Gather in Newport News (700 Tech Center Parkway).
BUDGET Our budget has seen a very positive impact from an infusion of pledges from the business community. In 2019 the Alliance received $525,610 from private investors. Through a tremendous working relationship with Reinvent Hampton Roads under the leadership of Dubby Wynne and Harry Lester in particular, the Alliance has received $1,733,500 in private sector commitments for 2020. We have budgeted for an additional $254,000 of private support as our capital campaign will continue in 2020. This support from the business community coupled with the support of our 11 local government investors which is increasing from $1,444,688 to $1,659,334 will enable us to restore the funding levels to our core activities. Understanding that our investor support was lagging during the 2019 transition, our staff worked very hard to control expenses which came in $645,396 under budget. That was appropriate then, but now we can restore our investments in marketing and business intelligence in 2020.
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Creating new Connections for Virginia’s 757
BUSINESS DEVELOPMENT In 2019, the Alliance’s business recruitment efforts were responsible for new capital investment of $82,300,000 and new payroll of $10,605,000. Our local partners announced a total of 2,652 new jobs, with $239,000,000 of capital investment. The groundwork laid in 2019 and the collaboration that is now in place will generate better numbers in 2020. A major recommendation of the IBM study completed in March of 2018 was the implementation of a regional business retention and expansion (BRE) program. This is the first time the Alliance has worked in this space and we see it as a significant area of focus for us in order to retain our talented workforce and capital in the region. In June, we hired Vice President of BRE, Amy Jordan, who hit the ground running and has been working closely with our localities to provide value to their efforts and investment in the Alliance. The Virginia Economic Development Partnership (VEDP) is also focusing on BRE and their Hampton Roads representative, Toi Hunter, is now working out of the Alliance office allowing for even greater synergy with VEDP in this effort.
MARKETING To coincide with the Envision 2020 regional branding initiative underway, the Alliance has engaged John W. Martin and his firm SIR (Southeastern Institute of Research, Inc.), on a short-term contractual basis. SIR has experience in Hampton Roads supporting a number of regional organizations, local governments, and companies as well as national experience helping cities and regions with economic development marketing. John and his team will help the Alliance formulate a more compelling value proposition for the organization, as well as a more competitive market position and related messaging to advance our region. We contract with several lead-generation firms in our business attraction efforts. We are currently reviewing the effectiveness of those relationships. I anticipate shifting some of those resources to our business expansion efforts. We are also evaluating the quality and share of leads we receive from the Virginia Economic Development Partnership.
The Business Intelligence department has also implemented bi-monthly Research Roundtables bringing research department heads from the public and private sector to the table to discuss what data they have and databases they use to ensure we’re not duplicating efforts but rather maximizing the efficiency of data collection and impact of data sharing. We’re looking to build out this roundtable with even more private sector intelligence related resources and support in order to build a team-based approach for strategic thinking and planning around our targeted business sectors.
ALIGNMENT Beginning in 2019, the Alliance implemented monthly Regional Economic Developer (RED) Team Meetings which bring together all the economic development directors from our 11 localities along with Greater Williamsburg representatives and expert economic development partners in the community, partners like the Hampton Roads Planning District Commission, Reinvent Hampton Roads, Hampton Roads Military and Federal Facilities Alliance, Virginia Port Authority and Hampton Roads Workforce Council. These meetings host dynamic conversations of over 25 people who convene to discuss what’s happening in their communities. The RED Team also serves as a think tank for topics like the Eastern Virginia Regional Industrial Facility Authority (RIFA), offshore wind, transatlantic cables, interconnected broadband fiber ring, and site inventories among many others. The 757 is a region with tremendous assets and potential. The model of collaboration embedded in the new Alliance is just what is needed, and it is already starting to work. We are building the momentum that will achieve the level of job growth that will help the 757 realize its potential. I am thrilled to have an opportunity to play a role in that transformation and grateful to the tremendous support of localities and our business community. Sincerely,
BUSINESS INTELLIGENCE We’ve expanded our regional efforts through a more robust business intelligence program starting with the hiring of Vice President of Business Intelligence, Steve Harrison, who took lead of the department and made important strides in the sites and facilities inventory process. Working with VEDP and the Hampton Roads Planning District Commission, the Alliance is leading the way on a site certification process. We studied and categorized all sites greater than 100 acres in order to bring them to a development ready status. Now we are developing an inventory of all sites greater than 25 acres.
Douglas L. Smith President & CEO
2019 Annual Report
7
Our capital campaign, Propel Hampton Roads, was very successful. For the first time in over 12 years, our private sector commitments outnumbered the public sector’s contributions. In 2019, 16 new businesses and organizations chose to join the Alliance as investors. Approximately 70% of our $2 million goal has been committed for the 2019-2020 year, with a total of $3.6 million committed over the course of 5 years. The Alliance extends a special thank you to both our long-time private sector investors as well as to our new investors. We appreciate your support, and look forward to working with you in the years to come.
INVEST PREMIER ($100,000+)
PLATINUM ($50,000+)
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Creating new Connections for Virginia’s 757
TOR RELATIONS INVESTOR RELATIONS
GOLD ($25,000+)
SILVER ($10,000+) Bank of America BB&T Bon Secours Health System Chartway Federal Credit Union Checkered Flag Children’s Hospital of The King’s Daughters Clancy & Theys Construction
Damuth Trane Dollar Bank Kaufman & Canoles Liebherr MEB General Contractors Norfolk State University Old Point Financial Corporation
Runnymede Corporation Southern Bank Tidewater Community College Timmons Group Vandeventer Black Willcox Savage Williams Mullens
BRONZE ($5,000+) Aerotek, Inc. Atlantic Dominion Distributors Birdsong Peanuts Canon Virginia, Inc Capital Concrete, Inc. Chesapeake Regional Healthcare Columbia Gas of Virginia
Drucker & Falk, LLC Electronic Systems, Inc. Faneuil, Inc. Harbor Group International, LLC Harvey Lindsay Commercial Real Estate Hourigan Construction Jones Lang LaSalle
KPMG LLP McGuireWoods LLP Norfolk Airport Authority Norfolk Waterside Marriott Palladium Partners Plasser American Corporation PNC Bank
Riverside Health System The Breeden Company Thomas Nelson Community College Venture Realty Group Ware Insurance Company Wells Fargo Advisors 2019 Annual Report
9
BUSINESS DEV BUSINESS DEVELOPMENT
ACTIVITY REPORT The Alliance project pipeline is a fluid and organic process that typically begins with contact from a site selection consultant, a state-issued request for information (RFI) or from one of the Alliance’s lead generation activities. Once opened, the Alliance’s Business Development team treat each qualifying project with careful dedication, attention and frequent contact. Each year, the Alliances Business Development team travels domestically and abroad to promote the 757 as a premier location for business investment and expansion. These activities consist of marketing missions, trade shows and special events which result in face-to-face meetings with corporate decision makers, site selection consultants and other key business leaders. The team also hosts prospect visits to Hampton Roads when companies are considering a location in our region. In 2019, the Alliance’s international consultant, PM&P developed a list of 12,168 potential foreign direct investors from defined target sectors and selected countries. From this list, PM&P arranged meetings with 213 trade show exhibitors who expressed an interest in learning more about Hampton Roads. Furthermore, 201 companies with concrete potential for mid- and longterm plans invited us to contact them again in the future. PM&P also met 23 companies in their corporate locations resulting in a total of 236 international meetings on behalf of the Alliance. 10
Creating new Connections for Virginia’s 757
In 2019, the Alliance saw an impressive 50% increase in new projects over 2018. Of the 66 new projects opened, 53% were sourced from the Virginia Economic Development Partnership and 47% from Alliance-led sources. 53% were domestic projects and 36% were international. The Alliance continues to see a higher prevalence of manufacturing, distribution and logistics projects, followed by information technology and food & beverage processing.
66 NEW PROJECTS Geography Industry
24 International 35 Domestic 7 Undisclosed Source 35 VEDP 31 Alliance
36% Advanced Manufacturing 17% Distribution & Logistics 11% Information Technology 9% Food & Beverage Processing 5% Bio & Life Sciences 5% Transportation Technologies 3% Business & Shared Services *14% OTHER INDUSTRIES
VELOPMENT 4 ANNOUNCEMENTS $82.3 mil Capital Investment 265 New Jobs 537,000 Square feet Absorbed 40 PROSPECT VISITS 29 New Visits 11 Repeat Visits 286 FACE-TO-FACE MEETINGS 246 Corporate Appointments 40 Site Selection Consultants 39 MARKETING ACTIVITIES Domestic California Colorado Illinois Florida Georgia Maryland New Jersey New York North Carolina South Carolina Texas Utah Virginia Washington
International Austria Canada Germany Israel Italy Switzerland Turkey *ADDITIONALLY, PM&P REPRESENTED THE ALLIANCE AT 15 TRADE SHOWS ACROSS EUROPE AND HELD 236 APPOINTMENTS WITH CORPORATE DECISION MAKERS LOOKING TO EXPAND THEIR OPERATIONS TO THE UNITED STATES. 2019 Annual Report
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2019 ANNOUNCEMENTS CLOVERLEAF COLD STORAGE Locality: Chesapeake, VA Announced: January 2019 Investment: $21 million New Jobs: 33 new jobs Sq. Footage: 100,000 square feet Cloverleaf Cold Storage, a leading cold storage warehousing and food logistics company, will invest $21 million to add over 100,000 square feet to its facility in Chesapeake, Virginia. The company’s facility in the City of Chesapeake is located on a 10acre site in the Cavalier Industrial Park with nearly 40 employees. The expansion will allow Cloverleaf to increase its current service volume of blast freezing, exporting, and importing, as well as accommodate additional refrigerated products for its current and new customers in the mid-Atlantic region. “We chose to invest capital in our Chesapeake facility both in recognition of the growing food products industry regionally as well as the excellent business climate in the Commonwealth of Virginia,” said Adam Feiges, a Principal at Cloverleaf. “With access to the deep-water Port of Virginia, this area is the optimal location for additional investment in international logistics facilities.” “Cloverleaf Cold Storage’s investment in the City of Chesapeake will enable the company to increase its service volume to meet growing demand in the mid-Atlantic market as well as broaden its global logistics network through the Port of Virginia,” said Governor Ralph Northam. “We thank Cloverleaf Cold Storage for choosing to reinvest in the Commonwealth, contributing vital infrastructure for our thriving food and beverage processing industry and nearly doubling its workforce in Hampton Roads.”
DRONE UP Locality: Virginia Beach, VA Announced: October 2019 Investment: $130,000 New Jobs: 41 new jobs DroneUp, a web and mobile platform for on-demand drone pilot services, will invest $130,000 to expand its headquarters operation in Virginia Beach. Virginia successfully competed with North Carolina for the project, which will create 41 new jobs. “The soaring success of innovative companies like DroneUp is a reflection of the many competitive advantages available to unmanned systems companies in Virginia,” said Governor Northam. “We are thrilled that DroneUp is reinvesting in the Commonwealth and helping to propel the Hampton Roads economy forward.” DroneUp connects drone clients with qualified drone pilots through its Mission Match™️ process, in-app and on the web. The company delivers ondemand services to commercial, government, and military organizations and addresses critical airspace safety oversight. They are committed to providing a comprehensive network of pilots while maintaining a steadfast commitment to safety and responsible operations. “We are honored to be part of the Virginia business community,” said Tom Walker, founder and CEO of DroneUp. “We are sincerely grateful to Governor Northam, the Virginia Economic Development Partnership, the Hampton Roads Economic Development Alliance, and the City of Virginia Beach. Their support, along with the Virginia Jobs Investment Program, have helped to ensure that we have the resources necessary to maintain our position as an industry leader in the global drone services space.” “We are thrilled to partner with the Virginia Economic Development Partnership and the City of Virginia Beach to help DroneUp stay and expand in Hampton Roads,” said Doug Smith, President and CEO of the Hampton Roads Economic Development Alliance. “Virginia’s ranking as the best state for unmanned aerial systems and the concentration of military and aviation professionals in Hampton Roads makes us uniquely positioned to serve as the headquarters location of a company as innovative as DroneUp.”
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Creating new Connections for Virginia’s 757
In April, Preferred Freezer Services, one of the largest public refrigerated warehousing companies in the world, announced it will invest $60 million to construct a 200,000 square foot cold storage warehouse in Portsmouth. The new facility will be used to import, export, process, and distribute a variety of food products, positioning the company to meet the growing demand for cold storage space. Virginia successfully competed with Georgia for the project, which will create 60 new jobs. Headquartered in Chatham, New Jersey with existing operations in the City of Chesapeake, Preferred Freezer Services is a privately held company with over 1,800 employees worldwide. The company has been in business since 1989 and operates over 300 million cubic feet of state-ofthe-art, full service temperature-controlled warehouse space across the United States and Asia.
PREFERRED FREEZER SERVICES Locality: Portsmouth, VA Announced: April 2019 Investment:$60 million New Jobs: 60 new jobs Sq. Footage: 200,000 square feet
“The entire Preferred Freezer Services team is honored to be working with the great people of Portsmouth and the Commonwealth of Virginia to build our next cold storage facility at this perfect Port location,” said Brian Beattie, President of Preferred Freezer Services. “We look forward to hiring over 60 people to service our customers throughout the area and manage the over 31,000 new pallet positions that will expand our import and export abilities. Our Chesapeake, Virginia location arguably has the best team of people in our entire network, and we look forward to adding the same caliber of people at this waterfront location.” “We are very excited and pleased that Preferred Freezer Services has made the smart choice to invest in the City of Portsmouth,” said Mayor John Rowe. “The site’s access to the Port is unmatched, and our business-friendly environment will support the company’s timeline to get up and running. This is a wonderful example of how the Commonwealth, our City and regional teams can work together to create jobs and to expand our economy.”
In October, SRP Companies, a leading supplier to more than 60,000 retailers nationwide, announced it will invest $1.16 million to relocate substantial portions of its warehouse operations from Philadelphia, Utah, and Oklahoma to the City of Virginia Beach. Governor Northam said, “With access to major population centers and the Port of Virginia as an international gateway, leading companies like SRP continue to recognize the advantages of locating in our Commonwealth.” Since its founding as a regional distributor of sunglasses in 1969, SRP Companies has grown into an international leader providing in-store merchandising solutions to a wide variety of retail partners and their consumers. SRP Companies, a subsidiary of parent company Soloray, are consolidating and expanding their storage, warehousing, and distribution services, currently located in Pennsylvania, Utah, California, and Ohio. “We are delighted to welcome SRP Companies to Virginia Beach,” said Mayor Robert “Bobby” M. Dyer. “It is joining an increasingly diverse and dynamic business environment in one of the most livable places in the country.” John F. Reinhart, CEO and Executive Director of the Virginia Port Authority said, “We are happy to join the City of Virginia Beach, the Hampton Roads Economic Development Alliance, and the Virginia Economic Development Partnership in welcoming another new company that’s going to bring jobs and investment to Hampton Roads and cargo to The Port of Virginia.”
SRP COMPANIES Locality: Virginia Beach, VA Announced: October 2019 Investment: $1.16 million New Jobs: 131 new jobs Sq. Footage: 218,000+ square feet
2019 Annual Report
13
REGIONAL ECONOMY 2019 ANNOUNCEMENTS FOR THE ALLIANCE’S 11 MEMBER LOCALITIES
2,652 new jobs created
$239 mil capital investment
2.4 mil square feet of commercial space leased or purchased NATIONAL & STATE COMPARISON
HAMPTON ROADS REGION OVERVIEW
Population
Labor Force
Jobs
GRP
Hampton Roads MSA
1,770,657 903,475 902,777 $95,260,419,059
Virginia
8,576,326 4,480,890 4,421,428 $519,758,041,950
United States
329,399,330
164,940,254
164,123,542
$20,281,063,237,300
0.5% Percent of National GDP 18.3% Percent of State GRP 20.1% Percent of State Labor Force 20.4% Percent of State Jobs 20.0% Percent of State Population
INDUSTRY JOB GROWTH 2014 Jobs 2019 Jobs Description
2014 - 2019 % Change
Health Care and Social Assistance
92,214
100,511
8,297
9%
Accommodation and Food Services
74,857
81,012
6,155
8%
Administrative and Support
47,229
51,263
4,034
9%
Construction
40,856
43,864 3,008
Transportation and Warehousing
23,967
26,617
Manufacturing
55,695
58,190 2,495
Management of Companies and Enterprises
2,650
7% 11% 4%
9,854
11,684
1,830
19%
Arts, Entertainment, and Recreation
13,442
14,576
1,134
8%
Professional, Scientific, and Technical Services
50,465
51,473
1,008
2%
Educational Services
15,998
16,536
538
3%
Finance and Insurance
23,264
23,743
479
2%
Information
11,216
10,845
(371)
(3%)
17,635
(1,134)
(6%)
Wholesale Trade TOTAL
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2014 - 2019 Change
Creating new Connections for Virginia’s 757
18,769 876,150
902,777 26,627
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REGIONAL COMPARISONS
Population Comparison 2,500,000
Labor Force Comparison 1,400,000
1,200,000
1,000,000 800,000
600,000
400,000
200,000
GDP Comparison $180 billion
$160 billion
$140 billion
$120 billion
200,000 $100 billion
$80 billion
$60 billion
$40 billion
$20 billion
Sources: VEDP, Individual Localities, EMSI Q4 2019 Data 2019 Annual Report 15
ENVISION 2020 757 WILL UNIFY 17 JURISDICTIONS AND 1.7 MILLION PEOPLE AS ONE REGION
Based on this research, Envision 2020’s core recommendation is to launch a region-wide pride-building campaign that will help everyone better understand what cities and counties define our region from Williamsburg to Virginia Beach and collectively celebrate what makes our region unique from all other places. This effort should be advanced by a marketing communications approach that’s proven highly effectively in other regions like Columbus, Nashville and Jacksonville to name a few.
The Hampton Roads Chamber, Reinvent Hampton Roads, and other leading regional organizations joined forces with over one hundred diverse leaders to study and analyze our region’s brand from a marketing perspective. This effort was called Envision 2020. What the task force found was that there’s more work to do in becoming a region.
757 is the cornerstone of this pride-building campaign. 757 is much more than an area code or a set of numbers. It has become our region’s brand mark that represents the totality of our community. Thanks to our younger generations, when you see or hear 757, it emotionally and positively connects us to our remarkable characteristics and diverse culture; a culture that defines us and builds pride in a positive way. The 757 brand mark has become an iconic symbol that instantly expresses the vibe and lifestyle of our entire region, not just any one locality. It has become the cultural moniker for a region that 1.7 million people call home.
As residents and business leaders invested in our region’s long-term success, we need to take the time to understand the intent of Envision 2020’s place marketing recommendations and help advance its success. Our region’s future hangs in the balance.
The research-supported process took over nine months and included more than 2,000 meeting hours. Through multiple research studies and the gathering of input from thousands of voices, the Task Force learned and identified what’s needed now to successfully advance our region.
The research arrived at four overarching conclusions: • As a place, we are simply not known outside of the region. Only one-third of respondents have heard of Hampton Roads and just 15% know where we are located. Hampton Roads does not have a naming issue, it has a marketing issue. • Our own residents and business leaders are confused about what localities make up the Hampton Roads region and many are frustrated with our lack of regional pride and cooperation. How can we successfully market ourselves to the world if we are not united within? • Hampton Roads, Coastal Virginia and Tidewater are appropriate names and each works well in different situations. Consequently, each name has its own fan and user base. If Envision 2020 were to recommend the sole use of one name over all others, it would exacerbate our region’s identity debate and possibly divide our region further. • A strong regional brand is needed now more than ever as the battle for young workers intensifies. We need to empower our young people to lead the way. Their energy, regional pride, and related buzz will attract the future talent our region needs to grow and thrive.
Greater use of the 757 brand mark will help a growing number of people easily identify with and more fully appreciate our region. It will help build pride in our tremendous assets and experiences - our coastal environment, diversity, history, military, sea and digital ports, and our culture.
Our region needs this unity now more than ever to successfully compete with other cities and regions across the nation. Let’s all pull together to create a great region that people flock to and, in turn, recruit others to visit and stay. This starts by becoming a true region and we need your help to make this happen.
• Fully understand Envision2020’s findings and the 757 pride-building recommendations posted on Envisioning2020.com. • Help us make sure that everyone knows that we are not changing or eliminating our region’s formal name – Hampton Roads – or the informal names of Coastal Virginia or Tidewater. • Use the 757-brand mark on your Facebook page, company website, promotions, and even in your name to show your support for this regional cause. • Let everyone know you are part of the 757. Join the cause that finally and permanently unifies 17 jurisdictions and 1.7 million people into one region that we all call home.
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Creating new Connections for Virginia’s 757
THE 757 — WHERE COMPANIES EASILY CONNECT TO ONE ANOTHER, THE WORLD AND THE TALENT THEY NEED. LOCAL PARTNERS: Your company will be connected to businesses, research labs, local governments, and educational institutions all across the region through our regional fiber network ring. Here you can immediately become one of the leaders that drive our community.
GLOBAL SEA PORT: Your company will be connected to your customers, suppliers and the world economy through our world-class sea port. It’s the only U.S. port approved for 55-foot channels to handle the largest ships in the world.
GLOBAL DIGITAL PORT: Your company will be connected to the fastest data communication network in the world through our transatlantic high-speed cables. We are the only east coast digital port between Miami and New York. Here you are connected to everyone everywhere in nanoseconds.
EXCEPTIONAL QUALITY OF LIFE: Your company and your employees will be connected to a remarkable high quality of life — desirable coastal living lifestyle, arts, education, attractive housing options, relatively low cost of living, and the welcoming and inclusive culture of our community.
QUALIFIED TALENT TODAY AND TOMORROW: Your company will be connected to our 800K person workforce today and our talent pipeline tomorrow including highly trained military personnel who enter our workforce every day and the graduates of our top colleges and universities.
THE FUTURE ECONOMY: Your company will be connected with stewards of tomorrow — an innovative community that’s investing in new economic opportunities and a 21st century infrastructure – NASA, Jefferson Labs, transatlantic cables, regional fiber network ring, space port, offshore wind, etc.
HERE, YOUR COMPANY WILL GROW AND THRIVE. 17
2019 BOARD OF DIRECTORS PUBLIC SECTOR
PRIVATE SECTOR
EX OFFICIO
City of Chesapeake
Branscome Inc.
Cox Communications Virginia
City of Franklin
Dominion Energy
Honorable Richard W. West Honorable Frank M. Rabil City of Hampton
Honorable Donnie R. Tuck City of Newport News
Honorable McKinley L. Price, DDS
Mr. C. Max Bartholomew, Jr. ECPI University
Mr. Mark B. Dreyfus Harvey Lindsay Commercial Real Estate
City of Norfolk
Mr. William E. King VP Investor Relations
City of Poquoson
Huntington Ingalls Industries/ Newport News Shipbuilding
Honorable Carey L. Freeman
Ms. Susan Jacobs
City of Portsmouth
Kaufman & Canoles, P.C.
Honorable Martin A. Thomas, Jr.
Honorable John L. Rowe, Jr. City of Suffolk
Honorable Linda T. Johnson City of Virginia Beach
Honorable Robert M. Dyer Isle of Wight County
Honorable Richard Dick Grice Southampton County
Honorable R. Randolph Cook At Large Public Sector Representative City of Newport News
Ms. Cynthia D. Rohlf*
RED Team Representative City of Hampton
Mr. Charles E. “Chuck” Rigney VP Economic Development*
18
Mr. Buddy League
Creating new Connections for Virginia’s 757
Mr. Charles V. McPhillips, Treasurer* Old Point Financial Corporation
Mr. Joseph R. Witt, Secretary* At Large Private Sector Representative Sentara Healthcare
Mr. Howard P. Kern* TowneBank
Mr. Brian K. Skinner, Chair* Virginia Natural Gas
Mr. George A. Faatz Williams Mullen
Mr. C. Grigsby Scifres Immediate Past Chair*
Mr. Hobie Ritzel Business Leadership Council Hampton Roads Economic Development Alliance
Mr. Douglas L. Smith President & CEO Non-Voting
Hampton Roads Workforce Council
Mr. Shawn Avery Community Partner Representative Port of Virginia
Mr. John Reinhart Business Leadership Council Reinvent Hampton Roads
Mr. Jim Spore Community Partner Representative Willcox & Savage
Mr. Hugh L. Patterson General Counsel *EXECUTIVE COMMITTEE MEMBERS OFFICERS DESIGNATED BY TITLE
THANK YOU
The Alliance would like to sincerely thank Steve Herbert and Grig Scifres for their commitment to the Alliance in 2019. In January, Steve stepped in as our Interim President & CEO and immediately started implementing the 2018 IBM Study Recommendations, while providing guidance and leadership to the staff through September. Grig stepped in to serve as our Chair in early 2017 when an unexpected departure occurred among the Board. His nearly two and a half year term as Chair came to a close in May 2019. Under his lead, the Alliance has seen significant changes and growth, and his contributions to the organization have been countless and unparalleled. His vision and dedication significantly influenced the development of the “New Alliance� and we are sincerely grateful for his time and effort.
GOVERNANCE GOVERNANCE
2019 Annual Report
19
2020 LEADERSHIP PUBLIC SECTOR
PRIVATE SECTOR
EX OFFICIO
City of Chesapeake
Cox Communications Virginia
City of Hampton
City of Hampton
ECPI University
Hampton Roads Economic Development Alliance
Honorable Richard W. West Honorable Donnie R. Tuck City of Newport News
Honorable McKinley L. Price, DDS City of Norfolk
Honorable Kenneth C. Alexander, PhD City of Virginia Beach
Honorable Robert M. Dyer At Large Public Sector Representative City of Suffolk
Honorable Linda T. Johnson
Mr. J.D. Myers II
Mr. Mark B. Dreyfus Ferguson Enterprises
Mr. Keith VanderVennet Huntington Ingalls Industries/ Newport News Shipbuilding
Mr. Bill Ermatinger Port of Virginia
Ms. Cathie J. Vick Sentara Healthcare
Mr. Howard P. Kern, Vice Chair* TowneBank
Mr. Brian K. Skinner, Chair*
Ms. Mary Bunting, CAO Chair
Mr. Douglas L. Smith, Secretary* Non-Voting Hampton Roads Workforce Council
Mr. Shawn Avery RED Team Chair City of Hampton
Mr. Charles E. “Chuck” Rigney Reinvent Hampton Roads
Mr. James K. Spore Willcox & Savage
Mr. Hugh L. Patterson General Counsel Non-Voting Williams Mullen
Mr. C. Grigsby Scifres, Past Chair *EXECUTIVE COMMITTEE MEMBERS OFFICERS DESIGNATED BY TITLE
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Creating new Connections for Virginia’s 757
2020 COMMITTEE STRUCTURE BOARD OF DIRECTORS (6 PUBLIC, 7 PRIVATE, EX OFFICIO)
EXECUTIVE COMMITTEE
FINANCE COMMITTEE
(CHAIR, VICE CHAIR, SECRETARY, TREASURER)
RED TEAM (REGIONAL ECONOMIC DEVELOPERS)
BUSINESS & SHARED SERVICES
INFORMATION TECHNOLOGY
FOOD & BEVERAGE PROCESSING
SITES & FACILITIES
SUPPLY CHAIN RECRUITMENT
ADVANCED MANUFACTURING
DISTRIBUTION & LOGISTICS
ECONOMIC IMPACT
RESEARCH ROUNDTABLE
CEDS (DATA DISCOVERY)
2019 Annual Report
21
FINANCIALS
SUPPORT & REVENUE
2019 Budget
2019 Projected Actual
2020 Budget
Corporate Investment Investment Base New Corporate Investment Total Corporate Investment
$702,652 $976,317 $1,678,969
$525,610 $703,500 $1,229,110
$1,733,500 $254,000 $1,987,500
Municipal Investment Total Municipal Investment
$1,454,099
$1,444,688
$1,659,334
$15,000
$14,295
$15,000
$3,148,068
$2,688,093
$ 3,661,834
2019 Budget
2019 Projected Actual
2020 Budget
$632,105 $407,205 $265,180 $266,245 $1,032,765 $225,900 $0
$492,746 $344,479 $104,610 $268,694 $908,892 $64,583 $0
$850,925 $488,732 $293,980 $308,875 $1,196,865 $137,740 $289,890
Miscellaneous Total Miscellaneous
Total Support & Revenue
EXPENSES Program Expenses Marketing Business Intelligence Investor Relations Administration Business Development Product Development Business Retention & Expansion
Total Expenses Excess of Revenue over Operating Expense Fundraising Expenses
Excess of Revenue after Fundraising
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Creating new Connections for Virginia’s 757
$2,829,400
$2,184,004
$3,567,007
$318,668
$504,089
$94,827
$305,000
$169,177
$0
$13,668
$334,912
$94,827
STAFF
Back Row:
Chris Lemmon — Executive Vice President & Chief Marketing Officer Adelaide Gilmore — Senior Administrative Specialist Doug Smith — President & CEO Amy Jordan — Vice President, Business Expansion Angela Parsons — Director, Operations Front Row:
Steve Harrison —Vice President, Business Intelligence Alisa Crider— Director, Investor Relations & Development Amy Parkhurst — Senior Vice President, Business Development Jonathan Holman — Director, Business Intelligence Jillian Goodwin — Director, Marketing & Communications Pictured Right
Toi Hunter — Manager, Business Retention and Expansion Virginia Economic Development Partnership
2019 Annual Report
23
OCALITY HIGHLI LOCALITY HIGHLIGHTS
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Creating new Connections for Virginia’s 757
CHESAPEAKE ANNOUNCEMENTS In January, Governor Ralph Northam announced that Cloverleaf Cold Storage, a leading cold storage warehousing and food logistics company, will invest $21 million to add over 100,000 square feet to its facility in the City of Chesapeake. The expansion will allow Cloverleaf Cold Storage to increase its current service volume of blast freezing, exporting, and importing, as well as accommodate additional refrigerated products for its current and new customers in the mid-Atlantic region. Virginia successfully competed with Maryland and North Carolina for the project, which will create 33 new jobs. Jo-Kell celebrated the grand opening of its new headquarters with a ribboncutting ceremony in March. The newly constructed facility is located in the Oakbrooke Business & Technology Center in the heart of the Greenbrier business district. Jo-Kell was founded in Chesapeake over 40 years ago in 1977. The company is a women-owned small business serving as an electrical distributor and solutions provider for the military, commercial marine, and industrial markets. The Chesapeake location serves as the company’s new headquarters with other offices in Richmond, Atlanta, Jacksonville, and San Diego. With a planned expansion and 26 new jobs, Sumitomo Machinery Corporation of America grew its facility in the City of Chesapeake. The company added 100,000 square feet to its North American headquarters at the Cavalier Industrial Park, home to 220 employees. A global giant in the advanced manufacturing industry, Sumitomo’s repeated expansion over the years is a strong testament to the advancement of this important sector. Sumitomo has achieved impressive success at its U.S. headquarters in the City of Chesapeake since relocating in 1987.
POPULATION: 242,630 Prime-Age Population (25-54)
98,270
CIVILIAN LABOR FORCE:
121,120
Prime-Age Labor Force Participation Rate
EMPLOYMENT
BY INDUSTRY
81%
% OF WORKFORCE
Government 16.3% Retail Trade 14.6% Accommodation & Food Services 9.3% Construction 8.4% Healthcare and Social Assistance 8.2% Administrative Support 7.0%
KEY EMPLOYERS
Dollar Tree Cox Communications Sumitomo Drive Technologies Chesapeake Regional Healthcare INIT, Inc.
CONTACT
Mr. Steven Wright, Director Chesapeake Economic Development (757) 382-8040 • scwright@chesapeakeva.biz www.chesapeakeva.biz
DISTINCTIONS & AWARDS Roberto “Bert” Ortiz, President & CEO of Chesapeake-based Aviation Management Analytical Consultants (AVMAC), is named Virginia’s Small Business Person of the Year. Ortiz was presented the award by the U.S. Small Business Administration’s Virginia District Office at his company’s headquarters in Chesapeake. On May 6, Ortiz was also recognized as the second runner-up nationally among the 50 honorees from each state at the national awards ceremony in Washington, D.C. AVMAC was founded by Ortiz and Don Buzard in 2009, after both retired from the Navy, and later brought in fellow veteran Ron Stebbins as co-owner. Today, 92% of the 400 employees spread across five states are veterans. AVMAC provides consulting services to aviation projects targeted to Surface & Air Forces of the Navy, Marine Corps, & Coast Guard as well as the Air Corps of the U.S. Army and their associated Systems Commands.
IGHTS
RFK Solutionz was honored as the 2019 Chesapeake Small Business of the Year in May. Established in 2012, RFK is a veteran-owned small business, specializing in cybersecurity services and training. The company provides a range of innovative business solutions, including instructor-based training, a Pearson Vue Testing Center, and workforce development programs.
MASTER PLAN RENDERING FOR SUMMIT POINTE CAMPUS
2019 Annual Report
25
FRANKLIN & SOUTHAMPTON COUNTY ANNOUNCEMENTS
In May 2019, Repair Tech purchased 15 acres of property in Pretlow Industrial Park in the City of Franklin for the construction of a new headquarters facility. This is a total investment of $1 million and will retain their operation in the region. The company specializes in millwright, piping, steel fabrication, and machining services. The City of Franklin and Southampton County both benefited greatly from an October 2019 announcement: Hubbard Peanut Company, Inc. (Hubs) will invest $1.6 million to establish a new operation in the City of Franklin. The expansion into the 56,000 square foot facility also creates 10 new jobs for the area. Hubs was awarded a $40,000 AFID grant from the Virginia Department of Agriculture and Consumer Services. The 65-year old, familyowned company will maintain operations in their current Southampton County facility as well. Rounding out the 2019 announcements, Bon Bon Farms is slated to invest $8.5 million and create 162 jobs within the town of Boykins in Southampton County. From the onset, Bon Bon will use the facility to grow hemp plugs to supply to farms throughout Virginia and the southeast. In years two and three, they plan to produce CBD oil and related products at the facility.
SMALL BUSINESS DEVELOPMENT In 2019, the Franklin Business Center program welcomed nine new businesses, graduated three into the local community, and is the home to 31 individual businesses. The building houses entrepreneurs, start-ups, and expanding businesses looking to grow for-profit businesses.
POPULATION: 25,600 Prime-Age Population (25-54)
9,950
CIVILIAN LABOR FORCE:
12,610
Prime-Age Labor Force Participation Rate
EMPLOYMENT BY INDUSTRY
77%
% OF WORKFORCE
Government 29.3% Healthcare & Social Assistance 17.9% Retail Trade 14.1% Accommodation & Food Services 7.0% Manufacturing 5.3% Administrative Services 3.9%
KEY EMPLOYERS
Southampton Memorial Hospital Paul D. Camp Community College Birdsong Peanuts Enviva Hampton Farms
CONTACT
Mr. Jay Brenchick, President & CEO Franklin Southampton Economic Development, Inc. (757) 516-7709 • jbrenchick@franklinsouthamptonva.com www.franklinsouthamptonva.com
Our community business launch program, STARTUP Franklin Southampton, completed its third iteration this past year. Kasey and Delia Square of Storehouse won the grand prize of $20,000. The new coffee shop is in downtown Franklin. Hunt and Christii Darden of Retro Flex won $10,000 towards their fitness center located in Southampton County. Two additional businesses, Franklin Crafters Gallery and Slash Decor and Rentals, opened within downtown Franklin as a direct result of program participation. Since 2017, STARTUP Franklin Southampton has assisted with twelve new businesses opening within the community. Four local business owners were awarded regional accolades in 2019: Jimmy and Lisa Strozier of Highground Services, Judy Riddick of Feridies Peanuts, and Dot Hubbard (posthumously) of Hubbard Peanut Company. The Stroziers were awarded the Hampton Roads Chamber Small Business of the Year-Western Tidewater Region. The company is a multi-discipline engineering firm, offering electrical construction and process control support to industrial and commercial customers. Ms. Riddick was a 2019 Inside Business Women honoree. Her family operated company, Feridies, has expanded into a multi-million-dollar peanut manufacturer which includes internet, catalog and an expanded gift shop on U.S. 58 in Courtland. Ms. Hubbard was a posthumous recipient of the 2019 USA Peanut Congress APC’s Lifetime Achievement Award. Ms. Hubbard pioneered a technique for cooking Virginia peanuts that has become the industry standard for the gourmet Virginia-type peanut known today.
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Creating new Connections for Virginia’s 757
HUBS PEANUTS CELEBRATED 65 YEARS IN BUSINESS WITH AN EXPANSION ANNOUNCEMENT INTO THE CITY OF FRANKLIN.
HAMPTON ANNOUNCEMENTS
INNOVATION HUB
In 2019, the City of Hampton saw growth in a number of key sectors, leading to 805,000 square feet absorbed and $67 million in capital investment.
National Institute of Aerospace (NIA) is a non-profit research center, graduate education, and outreach institute. NIA collaborates with NASA, other government agencies and laboratories, universities, and industries to conduct leading-edge research and technology development in space exploration, aeronautics, and science. In addition, NIA offers broad, multiuniversity graduate education programs.
Highlights included: • The Virginia Tech Foundation’s announcement of construction of a new waterfront facility for the Virginia Seafood Agricultural Research and Extension Center (AREC) in Downtown Hampton. This $8 million project has an estimated completion date of 2021. • Rosie’s Gaming Emporium, a new 38,000 square foot restaurant and gaming facility, featuring 700 historical horse racing machines. Located in Power Plant of Hampton Roads, this venue has created 200 new jobs and represents an investment of over $30 million. • Multi-phased mixed-use development is planned for Downtown Hampton. When completed, the first phase will have an estimated value of $35 million. The signature project will bring new live-work-play options to the Downtown area. • The WorkOne Center, which opened in November of 2018, offers education services, skills training and other services to Hampton residents who are seeking employment. In partnership with the business community and educational organizations, the WorkOne Center has helped individuals obtain the skills needed to gain employment and build their careers. • Monroe Gates Apartments, a $22.5 million investment, will offer 162 residential units in the Phoebus section of Hampton, and is slated to open in Spring 2020.
WORLD CLASS RESEARCH CENTERS The Virginia Tech Foundation’s Agricultural Research and Extension Center (AREC), focuses on research, seafood quality and safety, support for commercial and aquaculture industries, education and outreach initiatives. The new facility will allow Virginia Tech to continue its partnerships and research to ensure seafood quality and safety throughout Virginia and the United States. NASA Langley Research Center, recently highlighted in the film Hidden Figures, celebrated the 50th anniversary of the moon landing in July 2019. Today, NASA is focusing its efforts on returning to the moon with its Artemis Program, which includes technologies and concepts from NASA Langley Researchers. Hampton University has established a Severe Storm Research Center, which allows research and advanced weather technologies to provide up-to-date information associated with weather events such as hurricanes and severe thunderstorms. In July 2019, the Hampton Economic Development Authority awarded a grant of $135,000 to the University to facilitate this research.
REaKTOR Business Technology Innovation Center (RBTIC), is a business accelerator focused on unmanned aerospace vehicles and provides them with training, counseling and industry connections to effectively move through their startup process. In September of 2019, the U.S. Small Business Administration announced that the Peninsula Technology Incubator (PTI) REaKTOR Business Technology Innovation Center, as one of the winners across the nation of its Growth Accelerator Fund Competition (GAFC). In 2019, the Virginia Department of Health approved Hampton University’s request to have a fixed MRI machine constructed at the Hampton University Proton Therapy Institute. Additionally, they were awarded a $2 mil contract for cancer imaging research from the Virginia Department of Health. This contract will allow the Hampton University Proton Therapy Institute to further their research and conduct MRI imaging within the facility thanks to the approval of the new fixed MRI machine.
POPULATION: 134,310 Prime-Age Population (25-54)
53,570
CIVILIAN LABOR FORCE:
63,380
Prime-Age Labor Force Participation Rate
EMPLOYMENT BY INDUSTRY
83%
% OF WORKFORCE
Government 35.0% Healthcare & Social Assistance 10.6% Retail Trade 9.4% Accommodation & Food Services 9.0% Professional, Scientific & Technical 7.2% Administrative Services 6.6%
KEY EMPLOYERS
Maximus NASA Langley Research Center Sentara Healthcare Hampton VA Medical Center (HVAMC) Hampton University
CONTACT
Mr. Charles E. “Chuck” Rigney, Director Hampton Economic Development (757) 728-5165 • chuck.rigney@hampton.gov www.hampton.gov/ed 2019 Annual Report
27
ISLE OF WIGHT COUNTY ANNOUNCEMENTS In June 2019, M&M Milling, a toll processor specializing in grinding, blending and sizing of agricultural materials, announced plans to establish its first East Coast location in Isle of Wight County. The firm is adding to existing operations in Arkansas, Mississippi and Tennessee as it expands its corporate footprint and engages more customers in the wood products industry in the Eastern United States. The company purchased a dormant industrial facility near the City of Franklin, and that is situated within a Virginia Enterprise Zone, as well as a revenue sharing district with Franklin. The new Isle of Wight operation represents more than $2.35 million in capital investment, will employ at least 15 people when fully operational and will purchase hundreds of thousands of bushels of shelled corn from local farmers each year as part of its production processes. In November 2019, Triad Electrical Solutions purchased the former Kantsios Property in the Carrollton area of Isle of Wight and plans to establish operations in a dormant 5,000 square foot medical office building, one of three buildings on the property. Triad provides electrical construction for highway, industrial and government projects and plans to invest $300,000 and employ up to 50 people over the next three years. Additional development activity occurred in Isle of Wight Industrial Park. Isle Stor-It, a 7,500 square foot climate-controlled, self-storage facility opened in February 2019, the first of its type in Isle of Wight County. Plans are underway for additional storage buildings. In December 2019, Riverside Pest Control, a home-based business in Smithfield, purchased a two-acre site in the park and plans to construct a 3,500 square foot building to relocate and expand its operations.
WORKFORCE DEVELOPMENT
POPULATION: 36,950 Prime-Age Population (25-54)
13,750
CIVILIAN LABOR FORCE:
19,140
Prime-Age Labor Force Participation Rate
EMPLOYMENT BY INDUSTRY
84%
% OF WORKFORCE
Manufacturing 31.1% Government 13.8% Retail Trade 8.0% Accommodation & Food Services 7.9% Healthcare & Social Assistance 6.2% Transportation & Warehousing 5.5%
KEY EMPLOYERS
Smithfield Foods Keurig Dr Pepper International Paper Cost Plus World Market ST Tissue
CONTACT
Mr. Chris Morello, Director Isle of Wight County Economic Development (757) 356-1969 • cmorello@iwus.net www.insidetheisle.com
In March 2019, Smithfield Foods, Inc., Isle of Wight County Schools, and Isle of Wight County unveiled a new Career Building at Smithfield High School, consisting of over 21,000 square feet of classroom space and resources for five Career and Technology programs including manufacturing, engineering, welding, nursing, and the culinary arts. The newly renovated space is made possible through the Smithfield Foods Legacy Project, a $3 million donation to Isle of Wight County Schools to fund innovative and multifaceted education programs benefiting Smithfield High School, Windsor High School and workforce development initiatives in Isle of Wight County and the region. “We are incredibly grateful for Smithfield’s gracious donation to bolster the career resource information we can now offer our high school students,” said Jim Thornton, superintendent of Isle of Wight County Schools. “We are confident this Career Building will be an effective tool to help us prepare our students for the future. Without the Smithfield Foods Legacy Project, this would not have been possible.”
VIRGINIA SECRETARY OF AGRICULTURE AND FORESTRY AWARDS $50,000 GRANT TO ISLE OF WIGHT COUNTY BOARD OF SUPERVISORS DURING M&M MILLING ANNOUNCEMENT
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Creating new Connections for Virginia’s 757
NEWPORT NEWS ANNOUNCEMENTS
GROUNDBREAKINGS
In September 2019, Governor Ralph Northam announced that Eagle Aviation Technologies, LLC would invest over $200,000 to expand manufacturing operations at its Newport News facility adding new production equipment and doubling its workforce by creating 75 new jobs. The City’s Department of Development worked with Eagle and the Virginia Economic Development Partnership to secure a Virginia Jobs Investment Program grant of $45,000, based on the addition of these new jobs to support employee training. Eagle Aviation Technologies, LLC engages in the concept development, design, analysis, manufacture, and testing of prototype systems and components for the aviation, space, and marine industries.
Newport News experienced other exciting events in 2019, including:
SOLO, a worldwide leader in the production of backpack, handheld and onehand compression sprayers, has been based at its Newport News location in Copeland Industrial Park since 1983. As the company became more successful over time, it began to outgrow its roughly 53,000 square foot space. Because SOLO’s management team (both locally and in Germany) maintained a relationship with City staff and a strong desire to remain in Newport News, the company recently completed the purchase of a 64,000 square feet facility with adjacent expansion acreage at 201 Enterprise Drive in Oakland Industrial Park. This expansion will allow SOLO to maximize production and efficiency while continuing to call Newport News home.
POPULATION: 178,630 Prime-Age Population (25-54)
73,740
CIVILIAN LABOR FORCE:
88,870
Prime-Age Labor Force Participation Rate
EMPLOYMENT
BY INDUSTRY
83%
% OF WORKFORCE
Manufacturing 16.9% Government 11.4% Healthcare & Social Assistance 8.7% Retail Trade 7.0% Accommodation & Food Services 5.1% Administrative Support 3.9%
Ribbon Cutting ceremonies held in August for Building One @ Tech Center and the Brooks Crossing Innovation and Opportunity Center (BCIOC) • Building One @ Tech Center is the first research office building in Tech Center Research Park. The 81,600 square foot facility was 94% leased prior to completion and features tenants including Gather, ivWatch, ITA International (and ITA Data Analytics Center), the Virginia Tech Corporate Research Center and the Virginia Tech Outreach and International Affairs division. Upon completion, Tech Center will contain approximately 850,000 square feet of office and lab space, spread across 10 buildings, with an estimated 5,500 employees. The presence of a research center next to Jefferson Lab will provide immediate opportunities for collaboration between Jefferson Lab scientists and the private sector. • BCIOC is an innovative collaboration between the City of Newport News, Old Dominion University and Newport News Shipbuilding to address the needs of the historically under-served Southeast Community. The facility is leased by the Newport News Economic Development Authority, and occupies the first floor of the newly constructed 105,000 square foot Brooks Crossing office building. The facility will make workforce development and STEM education services readily accessible to citizens, students and businesses. Construction began on the 8-story, 260,000 square foot third headquarters of Ferguson Enterprises following a groundbreaking ceremony held in June 2018. Governor Terry McAuliffe announced in 2017 that the largest wholesale plumbing distributor in the U.S. would expand its Newport News presence and create an additional campus in City Center at Oyster Point. The new facility will house 1,600 employees. To complement this addition, the Economic Development Authority is building a 1,500-space parking garage, currently under construction, which will feature a pedestrian bridge to the new Ferguson facility.
KEY EMPLOYERS
Huntington Ingalls Industries/Newport News Shipbuilding Riverside Health System Canon Virginia, Inc. Ferguson Enterprises Virginia Health Services, Inc.
CONTACT
Ms. Florence G. Kingston, Director of Development City of Newport News (757) 926-8428 • kingstonfg@nnva.gov www.newportnewsva.com 2019 Annual Report
29
NORFOLK As home to the largest collection of naval operations in the world that touch every branch of the armed services, and home to the future of global security, NATO Allied Command Transformation, Norfolk is known throughout the world as a center of prowess. Norfolk is the most multimodal city in Virginia. Transportation assets include a global port, an international airport, Half Moone Cruise Center, Amtrak service, and light rail. We are the region’s hub for business, higher education, healthcare, arts and culture, professional sports, and innovation. Our workforce is strong, and transitioning veterans provide a replenishing resource for companies expanding or searching for technical skills. Progress in the offshore wind industry, and high-speed fiber-optic access connections, as well as installation of 5G, is feeding new opportunities in Norfolk and throughout the Hampton Roads region.
REDEVELOPMENT
In 2019, four healthcare construction projects totaling over $425 million, are underway in Norfolk’s largest redevelopment project area, St. Paul’s. This neighborhood encompasses 350-acres adjacent to Downtown, and is in three of Norfolk’s 16 Opportunity Zones. This area is embracing transformational investment and sustainable environmental efforts.
TOURISM
Tourism attraction efforts include a Pamunkey Indian Resort Hotel and Casino and are enhancing our city’s place-making initiatives and desire to design the coastal community of the future.
STRATEGIC ALIGNMENT & INCENTIVES
Our inclusive economic development strategy is aligning us to successfully deliver equitable opportunity to create scale throughout the city. Products include partnership offerings for expert training, technical assistance, and workforce placement. The new Capital Access Program has awarded $590,000 in grants and loans to 28 companies in its first year. The funds are available to a wide range of businesses, including startups. Four new business associations got their start in 2019. The City expanded its Technology Zone area and eligibility criteria (now known as the Innovation Corridor) and added an Arts and Design District incentive program for the NEON District. Company expansions resulted in more than 350 new jobs, approximately $50M in investment, and 510,000 square feet. New companies have added 100 new jobs and $13.5M in investment.
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Creating new Connections for Virginia’s 757
DOWNTOWN NORFOLK
POPULATION: 244,080 Prime-Age Population (25-54)
100,570
CIVILIAN LABOR FORCE:
111,520
Prime-Age Labor Force Participation Rate
EMPLOYMENT BY INDUSTRY
81%
% OF WORKFORCE
Government 42.3% Health Care and Social Assistance 11.6% Accommodation and Food Services 6.1% Retail Trade 6.0% Administrative Services 4.9% Professional, Scientific, and Technical 4.6%
KEY EMPLOYERS
Sentara Healthcare Children’s Hospital of the King’s Daughters Eastern Virginia Medical School BAE Systems Norfolk Ship Repair Automatic Data Processing, Inc. (ADP)
CONTACT
Mr. Jared Chalk, Interim Director Norfolk Department of Economic Development (757) 664-4105 • jared.chalk@norfolk.gov www.norfolkdevelopment.com
POQUOSON POQUOSON IS THE PLACE …AND YOU’RE INVITED!
An enviable combination of low crime rates, outstanding schools, civic-minded citizenry, recreational programs, and conveniently located shopping areas, firmly position Poquoson as a quality-of-life jewel in the 757. In recognition of these attributes Poquoson was recognized by CNBC on its U.S. list of “10 Perfect Suburbs”. In 2019, Poquoson was ranked #8 among Safest Places to Live in Virginia (The Home Security Advisor) and #8 Healthiest of Virginia’s 133 counties and cities (Population Health Institute). Most recently in 2020 the City was recognized in the Top 10 Best Places to Live in Virginia, ranking #6 (HomeSnacks). Poquoson’s business corridor serves a three-mile market area of nearly 40,000 people with a variety of shopping and dining opportunities, all framed in a relaxed, unhurried setting, making it a perfect day trip for visitors. In 2019, the City was pleased to welcome a number of new businesses including a destination Chinese restaurant, a popular ice cream shop and a fashion boutique. The City also addressed transportation and infrastructure initiatives in the form of two projects. First, preparations continued for the Wythe Creek Road Widening Project which will ultimately include a new bridge connection with Hampton and increased accessibility for multi-modal transportation. Second, with an eye toward its coastal heritage, Poquoson completed its Phase 2 Breakwater Project at Messick Point which will help maintain protected harbors for an enthusiastic boating community.
POPULATION: 12,190 Prime-Age Population (25-54)
4,400
CIVILIAN LABOR FORCE:
6,290
Prime-Age Labor Force Participation Rate
EMPLOYMENT BY INDUSTRY
84%
% OF WORKFORCE
Government 27.0% Accommodation & Food Services 12.8% Retail Trade 11.5% Healthcare & Social Assistance 9.6% Construction 9.5% Administrative Support 8.4%
KEY EMPLOYERS
Food Lion Bayside Golden Living Surfrider Dominion Village The Office Store
CONTACT
Mr. Dave Callis • david.callis@poquoson-va.gov Ms. Charity Gavaza • charity.gavaza@poquoson-va.gov City of Poquoson Economic Development • (757) 868-5314 www.poquoson-va.gov/253/Economic-Development
Poquoson is conveniently accessible to I-64 and the Newport News/Williamsburg International Airport, both typically within 15 minutes travel time. Looking to discover first-hand why Poquoson is the Place? Visit us online at www.ci.poquoson.va.us/253/EconomicDevelopment or contact the Economic Development Office at 757-868-5314 for more information. We look forward to speaking with you soon.
POQUOSON WATERFRONT
2019 Annual Report
31
PORTSMOUTH The City of Portsmouth continues to build momentum with a record breaking 2019. The Portsmouth Economic Development team focused on high impact projects and a refreshed narrative with a new energy. From announcing a large deal with a global logistics company to introducing a memorandum of understanding for a casino gaming partnership with an international developer/operator, 2019 was full of milestones for Portsmouth Economic Development.
ANNOUNCEMENTS In April 2019, Governor Ralph Northam announced that Preferred Freezer Services, a member of the Lineage Logistics global family, had chosen to invest $60 million in Portsmouth to construct a 200,000 square foot cold storage warehouse. The project adds 60 new jobs to the City at the new facility which will be used to import, export, and distribute a variety of food products, positioning the company to meet the growing demand for cold storage space. The Portsmouth site beat out several other domestic competitors including Savannah and Charlotte. Collins Machine Works, a Portsmouth legacy company, completed an expansion project in late fall. The machining and fabrication company has operated in Portsmouth since 1960 and expanded operations to a new 33,000 square foot facility with a $3 million investment and a $1 million buildout. The firm has additional expansion plans in the future. Portsmouth Economic Development announced plans for a 50-acre Entertainment District in the Victory Blvd business corridor. Portsmouth City officials welcomed Neil Bluhm to Council Chambers after a unanimous vote on their partnership with Rush Street Gaming, one of the fastestgrowing gaming companies in North America. The Portsmouth Economic Development Authority signed a memorandum of understanding on November 18, designating Rush Street Gaming as the City’s destination casino developer and operator pending state legislative approval.
POPULATION: 94,630 Prime-Age Population (25-54)
38,270
CIVILIAN LABOR FORCE:
44,100
Prime-Age Labor Force Participation Rate
EMPLOYMENT BY INDUSTRY
83%
% OF WORKFORCE
Government 49.8% Healthcare & Social Assistance 13.5% Retail Trade 5.7% Administrative Support 5.0% Accommodation & Food Services 4.3% Transportation & Warehousing 4.1%
KEY EMPLOYERS
Bon Secours Healthcare Crofton Industries Fairlead Integrated Linx Industries NSC Technologies
CONTACT
Mr. Robert D. Moore, Director Portsmouth Economic Development (757) 393-8804 • robert.moore@portsmouthva.gov www.AccessPortsmouthVA.com
SMALL BUSINESS DEVELOPMENT Portsmouth’s Economic Development Authority assisted over 30 businesses with their Local Incentive Program, representing $646,000 invested for small business redevelopment in Portsmouth.
COMMUNICATIONS FOR THE FUTURE Portsmouth Economic Development refreshed its brand in 2019 to reflect the energy, momentum, and direction of the City. In late summer, a new version of www.AccessPortsmouthVA.com was launched as a foundation for city, regional, and state resources. The 757 business community also showed up in high numbers as Portsmouth launched a new monthly forum - Let’s Talk Business. The business forum takes place on the first Friday morning each month and focuses on a variety of important business topics, bringing in local and regional stakeholders to share their expertise.
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Creating new Connections for Virginia’s 757
THE CITY OF PORTSMOUTH CELEBRATES PREFERRED FREEZER ANNOUNCEMENT
SUFFOLK ANNOUNCEMENTS With Suffolk’s 430 square miles and ample developable sites, Warehousing and Distribution continues to be a strong industry sector. Examples of recent distribution announcements include:
TOWNEBANK CAMPUS IN HARBOR VIEW
GROWTH AND DEVELOPMENT In 2019 the City of Suffolk saw growth and development in a diverse range of business sectors to include Warehousing & Distribution, Professional Office, Retail and Mixed Use Commercial. Commercial activity tends to follow population trends and Suffolk has been no exception. With one of the fastest growing populations in the state and region, Suffolk continues to draw new residents from around the country. According to the most recently released U.S. Census data, over 91,000 call Suffolk home. This figure represents a robust 9.3% population percent increase since 2010, notably higher than the state average increase since 2010 of 6.5%. In fact, it is projected that Suffolk will surpass the 100,000 people mark before 2025. In recent years, a number of new businesses saw the attraction in setting up shop in Suffolk. Downtown continues to show new colors and life with the fostering of an art movement and new independently owned businesses. The Harbour View area of northern Suffolk has seen tremendous growth. New mixed-use developments are being constructed and new tenants are being announced accordingly to match the momentum. Smithfield Foods, a globally-recognized company with an international footprint, established an office to handle logistical networks and other administrative duties. New medical office building space has been on the rise in Harbour View with the expansion, planning, and completion of multiple multi-million dollar medical office practice developments including Sentara BelleHarbour Hospital, Children’s Hospital of the King’s Daughters, BECO Harbour View Medical Office, Naval Medical Center Portsmouth TRICARE Prime Clinic, Bon Secours Cancer Center and the Lakeview Medical Center. TowneBank added to their substantial headquarters campus in Harbour View by constructing a $9 million, 44,201 square foot multi-use building. The corporate campus covers 22 acres and includes several administrative facilities. With more than $8 billion in assets and $5.1 billion in deposits, TowneBank holds Hampton Roads’ largest market share and is one of the largest banks in the state.
Cooke Seafood investing over $3 million dollars in the Wanchese Fish Company’s seafood processing facility in Northgate Industrial Park to expand operations, the opening of the 14,000 square foot Blue Bell Creameries distribution center in the same park, Lipton Tea expansion into owning and blending the TAZO Tea line at the Suffolk tea processing facility, the expansion of Hampton Roads Moving & Storage operations, the addition of $2 million in new equipment to handle additional product lines at Tegra Global and the addition of new multi-million dollar product lines at Target Upstream Distribution Center and NEXCOM Distribution Center. Bridgestone Civil will soon be operating 30,000 square feet of newly constructed industrial space in Northgate Industrial Park. Also important to note is Suffolk’s central location in the Hampton Roads region. Companies with West Coast facilities such as Ace Hardware, Emser Tile and Friant & Associates have invested in Suffolk, thanks to the ease of access to the Port of Virginia, and rail and highway networks to maximize their supply chain network most efficiently.
POPULATION: 91,190 Prime-Age Population (25-54)
36,150
CIVILIAN LABOR FORCE:
44,010
Prime-Age Labor Force Participation Rate
EMPLOYMENT
BY INDUSTRY
84%
% OF WORKFORCE
Government 20.9% Healthcare & Social Assistance 14.8% Retail Trade 11.6% Accommodation & Food Services 9.4% Transportation & Warehousing 7.4% Professional, Scientific & Technical 7.1%
KEY EMPLOYERS
Unilever-Lipton Tea TowneBank Target Kraft Heinz Planters J-7 Joint Staff
CONTACT
Mr. Kevin Hughes, Director Suffolk Economic Development (757) 514-4040 • khughes@suffolkva.us www.YesSuffolk.com
2019 Annual Report
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VIRGINIA BEACH ANNOUNCEMENTS
POPULATION: 452,600 Prime-Age Population (Aged 25-54)
Virginia Beach’s economy continues to grow. Second only to Fairfax, the city experienced the most growth in Virginia. Key announcements include:
CIVILIAN LABOR FORCE:
LifeNet Health plans to add 44 jobs with an average annual salary of more than $55,000 excluding benefits, as part of an expansion to one of its Virginia Beach facilities. This latest expansion involves leasing an additional 22,000 square feet for office and laboratory space resulting in an investment of $1.8 million. The additional positions will bring LifeNet Health’s total number of full-time employees in Virginia Beach to more than 1,000.
EMPLOYMENT BY INDUSTRY
DOMA Technologies, LLC, is a leader in various technology-based document solutions from scanning and indexing to storage, retrieval and disposition. It has locations in Raleigh, Charlotte and Washington, D.C., and is expanding its Virginia Beach headquarters. The expansion will increase its square footage and significantly expand its workforce from 175 to 475 employees. World Distribution Services is investing $6.2 million into a 320,000 square foot facility designed to fit the needs of retail, manufacturing, and food and beverage industries — equipped with high bay racking for high-value goods, 40 dock doors, 20,000 square feet (1,858 square meters) of dedicated foodgrade space, a top tier warehouse management system and more. In October STIHL celebrated the opening of its new administration building and completed campus improvements. The over $30 million project is part of the company’s continual investment in infrastructure in support of growing U.S. operations. The new building brings the Sales & Marketing, Finance & Controlling, Legal, and Customer & Technical Service teams under one roof.
Prime-Age Labor Force Participation Rate
KEY EMPLOYERS
Sentara Healthcare STIHL, Inc. Anthem LifeNet Health GEICO
CONTACT
Mr. Taylor Adams, Director Virginia Beach Economic Development (757) 385-6464 • tadams@vbgov.com www.yesvirginiabeach.com
Corporate Landing Business Park in Virginia Beach has already become a key location and the home of multiple data centers. In a short period of time, Virginia Beach has grown into a diverse new landing site for new subsea cable systems on the East Coast. PointOne’s NAP of Virginia Beach and Globalinx’s Phase 2 Cable Landing Station will strengthen the City’s relevance in the market for future subsea cable systems and stimulate the development of new data centers along the I-95 “Digital Highway” and Richmond. PointOne’s NAP of Virginia Beach campus is a multi-purpose, carrier-neutral cable landing station and edge computing data center. The campus will consist of two (31,000 square feet each) facilities and will connect to the Telxius Cable Landing Station across the street via two diverse paths to allow clients to directly connect to the MAREA and BRUSA cable systems. The first building will be completed by July 2020.
NxtVn Virginia Beach DigiPorts acquired 10 acres with an option to purchase a total of 219 acres across from Corporate Landing Business Park to develop a data center campus of up to 1.4 million square feet at estimated cost of $1.5 to $2 billion. 34
Creating new Connections for Virginia’s 757
228,790
85%
% OF WORKFORCE
Government 15.9% Accommodation & Food Services 14.0% Retail Trade 13.4% Healthcare & Social Assistance 12.9% Professional, Scientific & Technical 7.3% Administrative Support 6.3%
DATA & CONNECTIVITY
The Globalinx Data Center Campus is a carrier-neutral data center. The first phase of the project has been completed and is operational. The second phase of the project is a 6-megawatts open Cable Landing Station, capable of housing multiple cable systems. This is expected to be completed by the second half of 2020.
192,320
GROUNDBREAKING FOR POINTONE CABLE LANDING STATION
Locality highlights and demographics sourced from: U.S. Census Bureau, EMSI Q4 2019 Data, Individual Localities
2019 Annual Report
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500 Main St, Suite 1300 • Norfolk, VA 23510 700 Tech Center Pkwy, Ste 200, Box 23 • Newport News, VA 23605 757- 627-2315 www.hreda.com
info@hreda.com @HamptonRoadsEDA