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TABLE OF CONTENTS 4 5
From the Chair About the Alliance
BUSINESS DEVELOPMENT 6 8
Activity Report 2018 Timeline of Activities
BUSINESS INTELLIGENCE 10 11 12
Competitiveness Key Industries Timeline of IBM-PLI Study
GOVERNANCE 14 15 16 17
2018 Leadership Investors Financials 2019 Leadership
LOOKING AHEAD 18 19
New in 2019 2019 Staff
3
FROM THE CHAIR STRONGER TOGETHER
Throughout 2018 and the first four months of 2019, much progress has been made on transforming the Alliance into a robust, multi-faceted regional economic development organization. This progress has been accomplished through the efforts of many individuals. The list is long, but at the risk of overlooking key contributors it includes: the Alliance team and my colleagues on the Alliance Executive Committee and Board of Directors (these individuals are identified elsewhere in this Report); the members of the CAO committee that worked on the Master Agreement — Jim Baker, Doug Smith, Cynthia Rohlf, Dave Hansen and Mary Bunting; Bob Crum and the staff at the Hampton Roads Planning District Commission (HRPDC); and Dubby Wynne, Harry Lester and Jim Spore. To each of you, thank you for your hard work and your commitment to growing high wage jobs, capital investment and tax base in our region. By the time you read this report, I expect that the Master Agreement for Economic Development in Hampton Roads between the Alliance and the 11 cities and counties that invest in the Alliance will have been approved by each city council and board of supervisors, and requisite funding will have been included in their 2019-2020 budgets. This is the foundation for moving from what historically has been a local economic development model to a regional economic development approach. To continue this momentum, the Alliance also has begun discussions with the Upper Peninsula cities and counties to find ways to collaborate on economic development efforts. The Alliance’s Propel Hampton Roads private sector capital campaign is well underway. Whether from CEOs on the Business Roundtable or from management of other companies, initial commitments towards our goal of $2 million in annual funding ($10 million over 5 years) from the private sector have been encouraging. As I write this letter, the Alliance has $1.45 million in commitments and another $1.75 million in pending pledges from businesses who have been asked to invest in the Alliance. Formalized in our 2019 Business Plan, the Alliance now has a strategically focused Go-To-Market and business retention and expansion plan targeted on the following industries:
• Business & Shared Services • Information Technology • Advanced Manufacturing • Food & Beverage Processing • Distribution & Logistics The Alliance team also has developed a detailed dashboard of Key Performance Indicators that tie to the 2019 Business Plan. This will enable management and investors to better measure performance and to develop strategies and action items to achieve goals.
4
The Alliance team has moved quickly in 2019 to develop new operating alignments and protocols with our public partners to facilitate the shift from a local to a regional economic development model. In the course of these conversations the Alliance staff has reconvened the Regional Economic Development (RED) Team with a new participatory format which has contributed to excellent engagement and participation at the 2019 monthly meetings. Similarly, Alliance management has engaged with the Virginia Economic Development Partnership (VEDP) on a variety of fronts to align the regional approach with VEDP’s strategies. In closing, I want to personally thank each stakeholder for your support and encouragement as the Alliance has worked through the past two years of transition and opportunity, and to encourage your future support as the Alliance and the region forge a new path for regional economic development. Hampton Roads is an economic region and we are stronger working together. Joint collaboration and engagement among government and business will enable the Alliance to play a vital role in enhancing organic business growth and bringing high-wage jobs, greater investment and a stronger tax base to our region.
C. Grigsby Scifres 2018 Alliance Chair
ABOUT THE ALLIANCE
ABOUT US
OUR SERVICES:
The Hampton Roads Economic Development Alliance (“the Alliance”) is a nonprofit, public-private partnership supported and led by the region’s most influential business leaders, local governments, and top academic institutions. Working together, we are dedicated to the creation of a more diverse, growing and prosperous economy. The Alliance serves as a catalyst for new business attraction and longterm business environment improvements in the Hampton Roads region. Private sector investors partner with the cities of: Chesapeake, Franklin, Hampton, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk, and Virginia Beach, and the counties of: Isle of Wight and Southampton to govern and resource the Alliance. Beginning in 2019, the economic development offices of James City County, York County and the City of Williamsburg are members of the Alliance’s Regional Economic Development (RED) Team.
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 remain and grow in Hampton Roads through a Business Retention and Expansion program in partnership with the VEDP.
POSITIVE REGIONAL IDENTITY
STRONG DISTINCTIVE COMMUNITY BRANDS
5
BUSINESS DEVELOPMENT
ACTIVITY REPORT
Each year, the Alliance’s Business Development team travels the globe to promote Hampton Roads 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 with companies considering a location in our region. Compared to 2017, in 2018, the Alliance saw a 22% increase in new prospect files opened, a 15% increase in face-to-face meetings and an impressive 53% increase in prospect visits to the region.
5853PROSPECT VISITS New Visits 5 Repeat Visits
360 FACE-TO-FACE MEETINGS 287 Corporate Appointments 73 Site Selection Consultants
44 NEW PROJECTS Source
Geography 24 International
16 Domestic 4 Undisclosed
22 VEDP 22 Alliance
Industry 7% Aerospace & Aviation
6
14% Corporate & Professional 18% Maritime & Logistics 27% Food Processing 34% Advanced Manufacturing
29Domestic MARKETING ACTIVITIES International
Arizona California Florida Georgia Illinois Nevada
New Mexico Canada North Carolina France Ohio Germany South Carolina Italy Texas Switzerland Washington Sweden Washington D.C.
Additionally, PM&P represented the Alliance at 11 trade shows across Europe and held 99 appointments with corporate decision makers looking to expand their operations to the United States.
7
EVENT HIGHLIGHT
2018 TIMELINE OF ACTIVITIES
On May 3-4, 38 members of the Newmark Knight Frank Global Corporate Services team visited Hampton Roads for internal team-building work sessions and to become better acquainted with the assets of the region. Their visit included a presentation from the Port of Virginia staff at Virginia International Gateway and a joint presentation from VEDP and the Alliance. A reception and dinner at the Cavalier Hotel was hosted by the Port of Virginia, VEDP, the Alliance and Virginia Beach Economic Development.
Prospect Files Opened 3 New January 24 Consultant Event with VEDP Chicago, IL January 16 Project Drip Visit January 25 2018 Annual Meeting Guest speakers: • Dennis Donovan • Jay Garner • Michael Bennett
JANUARY Prospect Files Opened 3 New February 23 Project Crescent Visit February 19 - 23 Marketing Mission Dallas, TX
2 Total Meetings February 25 - 28 RILA Conference Phoenix, AZ
5 Total Meetings 8
March 18 - 21 Site Selectors Guild Annual Conference Cincinnati, OH
3
New Prospect Files Opened
March 19 Consultant Event with VEDP Cleveland, OH
March 19 - 23 Marketing Mission Germany with EAIC
17
May 14 - 18 Marketing Mission Germany, Italy & Switzerland with EAIC
Total Meetings
March 29 Project Crescent Repeat Visit
8
MARCH
April 2 - 6 Marketing Mission Dallas & Houston, TX
APRIL April 16 - 20 Marketing Mission Seattle, WA & Portland, OR
Meetings Meetings 9 Total 9 Total
EVENT HIGHLIGHT
On April 9-10, the Alliance hosted Antje Abshoff, Managing Director of VEDP’s European office for a familiarization tour of Hampton Roads. The tour helped to introduce Abshoff to the region’s assets to support her interactions with European companies considering locations in Virginia. Key sites and industrial parks were visited and interviews were held with European headquartered manufacturers.
Total Meetings
May 16 - 18 NextGen Talks Conference Asheville, NC May 21-25 Marketing Mission Atlanta, GA & Greenville, SC Consultant Event at Canoe in Atlanta
Prospect Files Opened Meetings 3 New 7 Total
Meetings 2 Total
FEBRUARY
May 6 - 9 IAMC Spring Conference Savannah, GA
April 18 - 20 SEDC Meet the Consultants Event Dallas, TX April 23 - 27 Marketing Mission San Francisco & Los Angeles, CA Meetings 8 Total
MAY April 23 - 27 Hannover Messe in Germany with EAIC Meetings 17 Total April 24 Project Beef Visit
2
New Prospect Files Opened
JUNE Prospect Files Opened 4 New June 11 - 15 Marketing Mission Seattle, WA & Vancouver, BC Meetings 9 Total June 20 - 22 SelectUSA Summit Washington, D.C.
June 4 & 11 Project Razor and Project Kingston Visits June 22 & 27 Project Beef and Project Ventower Repeat Visits
EVENT HIGHLIGHT
November 26-29, the Alliance conducted a marketing mission to Switzerland and Italy with European American Investment Council (EAIC). EAIC is a membership organization that helps economic developers market their communities to potential European investors. The mission included meetings with six corporate decision makers and two consultants. In addition, a seminar entitled “Entering the U.S. Market” was arranged by a non-profit entrepreneurial association that works with its members in all matters related to international trade and investment. The Alliance presented information about Hampton Roads to 12 local companies. At the conclusion of the mission, the Alliance met with Negroni, an active project considering a site in Suffolk. The day-long meeting included a tour of two of Negroni’s production plants.
Prospect Files Opened 3 New September 10 - 14 Hannover Messe USA Chicago, IL Meetings 6 Total
3
September 23 - 27 Global Security Exchange Conference Las Vegas, NV
New Prospect Files Opened
July 20 Project Tank Visit
12
July 31 - August 1 Hosted John Loftus of VEDP for familiarization tour of available properties in region
JULY
November 15 Project Negroni Repeat Visit
September 26 Project Branopac Visit September 27 Project Big Belly Visit
AUGUST
6
Total Meetings
New Prospect Files Opened
August 29 - 31 Project Negroni Visit
November 12 - 16 Marketing Mission Tampa and Miami, FL Meetings 8 Total November 20 Project Clean Repeat Visit Prospect 4 New Files Opened
SEPTEMBER
OCTOBER
October 8 - 12 Marketing Mission Phoenix, AZ
NOVEMBER
October 25 - 26 Scandinavian Automotive Supplier Conference in Sweden with VEDP
Meetings Meetings 5 Total 7 Total October 15 Project Citrine Visit October 21 - 24 SIAL International Food Exhibition in France with VEDP
60
Total Meetings
Prospect Files Opened 6 New
October 24 - 26 Women in Economic Development Conference Santa Fe, NM October 29 - 31 EAIC Annual Meeting and Conference Ft. Wayne, IN
DECEMBER
December 3 - 5 Area Developers Site Consultants Forum Miami, FL December 2 - 6 Marketing Mission to Germany with EAIC Meetings 7 Total Prospect 4 New Files Opened
October 29 The Delong Company Visit
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BUSINESS INTELLIGENCE
COMPETITIVENESS
Regional economic competitiveness is the ability of a region to compete and prosper in the global economy. Indeed, a competitive economy is a productive economy — building on its embedded assets and fueled by a set of institutions, policies and business environment factors which lead to growth.
In addition to productivity, competitive regions foster an environment that supports both a high and a rising standard of living for its citizens driven by a business environment that enables innovation, entrepreneurship and growth.
BUSINESS INTELLIGENCE
The Alliance’s Business Intelligence department is a key component of the organization’s success and a vital part of the regional economic development ecosystem in Hampton Roads. In addition to supporting various internal business development and marketing initiatives, the department consistently provides external stakeholders with relevant comprehensive data and research. The department partners with the Hampton Roads Workforce Council to provide labor statistics for the quarterly Labor Market Digest. The Alliance also works with its 11 localities and the general business community to provide regional data, demographic information and various reports including cost comparisons, occupation density analysis and site inventories.
HAMPTON ROADS
The Hampton Roads region aspires to become a globally competitive market for private industry growth and investment. To develop this position, Hampton Roads must create and implement economic development strategies at a scale that will shift current forecasts. With deep executive insight into regional competitiveness, in early 2018 the Alliance contracted IBM’s Plant Location International (IBM-PLI) division to perform comprehensive site location analysis, assess the region’s current economic landscape and provide best practice recommendations for improvements within the region’s business environment.
INVESTMENT PROMOTION
As a background to the initiative, VEDP worked in partnership with IBM-PLI and McKinsey & Company to complete an economic development strategy that provided insight and recommendations for VEDP’s key industries and marketing efforts. Leveraging these insights and an understanding that success requires strategic, coordinated alignment and effective execution, the Alliance worked to develop a regional investment promotion strategy for Hampton Roads. Developing this strategy included conducting a detailed competitiveness analysis of Hampton Roads within key sectors. Overall, the objective of the analysis was to improve the effectiveness of regional economic development. A key input into this process was stakeholder engagement. Through a robust set of facilitated sessions, the Alliance, alongside the region’s leadership and key stakeholders, identified key improvement needs within the region. They assessed the relative importance of different types of improvements and developed recommendations on the most appropriate actions and interventions for enhancing the competitiveness of Hampton Roads and its individual communities.
10
RESULTS
With a refreshed understanding that business location strategies, both domestic and international, involve deep evaluation across several weighted criteria, the Alliance and IBM-PLI identified aggressive and necessary actions to get the region back on track for private industry job growth and economic well-being. Through focused and collaborative development initiatives targeting talent, infrastructure & logistics, site development, cluster & innovation, and with an enhanced go-to-market strategy, 82,500 new jobs could realistically be created over current projections within the next ten years. In the short-term, improvement initiatives related to talent, infrastructure & logistics, site development, cluster development, and innovation are tactical improvement requirements where the economic value of implementation will redefine the baseline for economic growth. In the long-term, by focusing on a collaborative growth model that strengthens the regional ecosystem, economic development efforts have the potential to yield lasting impacts that will strengthen the region’s industrial base and move Hampton Roads into a more favorable competitive position within both the domestic and international markets. Specifically related to the Alliance’s plan of action, outreach initiatives will be prioritized among and within five newly identified near-term opportunity sectors for which the region currently hosts a distinct and unique competitive advantage against other markets. These sectors include:
• Business & Shared Services • Information Technology • Advanced Manufacturing/ Transportation Technologies • Food & Beverage Processing • Distribution & Logistics
KEY INDUSTRIES
Industries in which Hampton Roads, Virginia hosts a competitive advantage and regional value proposition that can be taken to market, as seen by these companies who have already established operations in the region.
BUSINESS & SHARED SERVICES
INFORMATION TECHNOLOGY
ADVANCED MANUFACTURING Focus on Transport Technologies
FOOD & BEVERAGE PROCESSING
DISTRIBUTION & LOGISTICS
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TIMELINE OF IBM-PLI STUDY PRIOR TO 2018...
In late 2017, the Alliance engaged Gene DePrez of Global Innovation Partners to discuss VEDP’s economic development strategy project and how this work could be expanded on a regional level for Hampton Roads. Soon after, the Alliance began an initiative to improve the regional economic development ecosystem that was based on competitiveness and inward investment promotion. Collaboration and working together for a stronger economy was fundamental to this initiative and the Alliance extends its sincerest thanks to everyone who participated in the development and socialization of the IBM Study and recommendations. This timeline highlights some of the key events and milestones throughout the process.
January 9
JANUARY
The Alliance’s Investment Promotion Strategy kicks off with a conference call between the Alliance and IBM-PLI consultants, Gene DePrez, Jacob Dencik and Koen Gijpers. This call served to both identify the initiative’s objectives and deliverables and develop a timeline, approach and structure.
January 23
To keep stakeholders informed of this process and capture their thoughts, input and guidance, the Alliance invited key stakeholders to participate in weekly steering committee conference calls with the IBM team. These stakeholders included localities, regional partners, higher education institutions and Alliance officers.
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February 6 - 8
FEBRUARY
To fully understand the local economy, key industries and assets, the Alliance hosted a series of workshops across the region. These included sessions on: • Distribution & Logistics • Workforce & Talent • Transport Technologies • Life Sciences & Data Centers • Infrastructure, Sites & Facilities
February 15
Alliance’s Executive Committee Meeting during which Jacob Dencik calls in to review the project and answer questions.
March 1
MARCH
Conference call with IBM to deliver improvement recommendations.
March 5
Alliance meets with HRPDC to discuss recommendations and how to best present them at the upcoming Chief Administrative Officers meeting on April 4.
March 22
The Alliance and IBM team present the final IBM Study to more than 60 stakeholders and business leaders.
March 29
The Alliance presents the IBM Study at its Board of Directors Meeting. “The purpose of this study was to create creative benchmarking by industry while defining and validating our value proposition... This strategy not only aligns with VEDP’s work, but it also integrates with the Port of Virginia’s port study.”
April 4
APRIL
Alliance President & CEO Rick Weddle and the IBM team present and discuss the findings of the IBM Study at the monthly CAO meeting to the Chief Administrative Officers of 18 localities.
April 17
The Alliance begins sharing the IBM Study with a presentation to the Hampton Economic Development Authority Board.
April 26
The IBM Study is presented to the Alliance’s Executive Committee. “The recommendations include a transformation of the role of the Alliance. While we do a good job in lead generation, our present problem is deal closing. The report contains a series of recommendations about how to make the necessary improvements, which over time will make everyone more successful.”
Thank you to the following localities, businesses and organizations who attended the work sessions, participated on the steering committee, or otherwise engaged with the Alliance during this process. Aerotek BB&T The Breeden Company CBRE Century Express Chesapeake Economic Development Christopher Newport University Clancy & Theys Construction Columbia Gas Commonwealth Commercial Cox Communications Dominion Energy ECPI
May 7
MAY
The Alliance presents the IBM Study to the Peninsula Business Leaders, a group designed to discuss the business & economic trends on the Peninsula, and the need for business leaders to come together to discuss what steps need to be taken.
May 10
The IBM Study is presented at Reinvent Hampton Roads’ May Board of Directors meeting.
May 17
The Alliance presents the findings of the IBM Study at the HRPDC Board of Directors meeting.
May 29
Alliance staff holds a half day work session to unpack the IBM Go-ToMarket Recommendations and discuss a timeline and process for implementing the recommendations into the Alliance’s business development, business intelligence and marketing efforts.
Franklin Southampton Economic Development, Inc. Greg Garrett Realty Hampton Economic Development Hampton Roads Planning District Commission Hampton Roads Workforce Council Harvey Lindsay Commercial Real Estate Isle of Wight Economic Development Jones Lang Lasalle Liebherr Mining Company Newport News Economic Development Norfolk Economic Development
June 5
JUNE
Rick Weddle speaks at the Isle of Wight State of the County Breakfast where he explains the importance of the IBM Study, the recommendations the study uncovered, and the results the Go-To-Market Strategy could yield.
June 6
The findings of the IBM Study are further socialized at a presentation to Virginia Beach Vision.
June 13
The IBM Study is discussed at the Hampton Roads Chamber Board of Directors and Trustee Meeting.
Norfolk State University Old Dominion University Old Point National Bank Paul D. Camp Community College Peninsula Council for Workforce Development Poquoson Economic Development Port of Virginia Portsmouth Economic Development Reinvent Hampton Roads Runnymede Corporation Suffolk Economic Development Thomas Nelson Community College
August 3
AUGUST
At the Alliance Executive Committee Meeting, the team begins discussing how to incorporate the 160 slide IBM Study into an actionable business plan for the Alliance to implement in 2019.
August 13
Chad Matheson, Director of Business Intelligence, presents the IBM Study findings to Hampton Roads Chamber Suffolk & Portsmouth Board of Directors.
August 22
Reinvent Hampton Roads and the HRPDC meet with the Alliance and IBM to discuss regional economic development roles and how the organizations can best work together to implement IBM’s recommendations.
Tidewater Community College Vandeventer Black Virginia Beach Economic Development Virginia Beach Public Schools Virginia Economic Development Partnership Virginia Employment Commission Virginia Maritime Association Virginia Natural Gas Ware Insurance Wells Fargo Bank Williams Mullen
SEPTEMBER
September 18
In line with the IBM Study, the Alliance begins working on a Regional Master Agreement to be signed by all member localities and drafts a multi year budget to fund IBM’s recommendations.
September 29
The Alliance introduces the Regional Master Agreement at its Board of Directors Meeting and presents a staffing plan that includes 11 new positions over the next five years. “We believe that essential to the overall implementation of the IBM plan, and buying into the core principles, there needs to be a contract between the Alliance and public sector investors including expectations, metrics and performance dashboards.
October 26
OCTOBER
The Alliance hosts an Investor Update & Work Session in which the 2019 Business Plan, based on the IBM Study and Recommendations, is presented and discussed among key stakeholders. The agenda also includes updates on the Alliance’s management transition, 5-year budget and staffing plans and the capital campaign planned for 2019 to fully resource this new model for regional economic development.
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2018 LEADERSHIP
A nomination and election process and a new revenue model replace automatic private sector board seats based solely on investment level. The new model is structured to return the Alliance to a nationally competitive funding level. Over the next five years, the plan calls for a best practice funding support of $2.00 per capita with a 50:50 public-private balance. This will be supported through implementation of the new governance and engagement plan with investor benefits and participation tied to graduated investment levels.
Mr. Buddy League Branscome Inc.
Mr. C. Max Bartholomew, Jr. Dominion Energy
Mr. Mark B. Dreyfus ECPI University
Mr. William E. King, VP Investor Relations*
Harvey Lindsay Commercial Real Estate
Ms. Susan Jacobs, Secretary* Huntington Ingalls Industries / Newport News Shipbuilding
Mr. Charles V. McPhillips*
Honorable Richard W. West City of Chesapeake
Honorable Frank M. Rabil City of Franklin
Honorable Donnie R. Tuck City of Hampton
Honorable Richard “Dick” L. Grice Isle of Wight County
Ms. Cynthia D. Rohlf City of Newport News
Honorable Martin A. Thomas Jr. City of Norfolk
Kaufman & Canoles, P.C. (At Large Private Sector Representative)
Honorable Carey L. Freeman
Mr. Larry “Chip” Filer
Honorable John L. Rowe, Jr.
Old Dominion University
Mr. Joseph R. Witt, Treasurer* Old Point Financial Corporation
Mr. Howard P. Kern Sentara Healthcare
Mr. Brian K. Skinner, Vice-Chair* TowneBank
Mr. George A. Faatz Virginia Natural Gas
City of Poquoson
City of Portsmouth
Honorable R. Randolph Cook Southampton County
Honorable Linda T. Johnson City of Suffolk
Councilmember Shannon Kane City of Virginia Beach
Mr. Douglas Smith*
Mr. C. Grigsby Scifres, Chair*
City of Norfolk (At Large Public Sector Representative)
Mr. Hobie Ritzel
Mr. Kevin Hughes, VP Economic Development*
Williams Mullen
Cox Communications Virginia (Business Leadership Council)
Mr. Rick L. Weddle*
Hampton Roads Economic Development Alliance (President & CEO/Non-Voting)
Mr. Shawn Avery*
Hampton Roads Workforce Council (Community Partner Representative)
Mr. John Reinhart
Port of Virginia (Business Leadership Council)
Mr. Jim Spore*
Reinvent Hampton Roads (Community Partner Representative)
Mr. Hugh L. Patterson* Willcox & Savage (General Counsel)
14
PUBLIC SECTOR
PRIVATE SECTOR
The new structure, approved by the Alliance Board of Directors in December 2017, took effect in January 2018. It retains the key feature of a 50:50 public-private match while reducing the size of both the Board of Directors and the Executive Committee. The Executive Committee is comprised of nine members — the seven Alliance officers, an at large public sector representative and an at large private sector representative.
EX OFFICIO
In late 2017, the Alliance redesigned its governance structure with an enhanced model to improve effectiveness, increase the level and quality of stakeholder engagement and improve the efficacy of private sector funding efforts.
2018 BOARD OF DIRECTORS
City of Suffolk (RED Team Representative)
*EXECUTIVE COMMITTEE MEMBERS OFFICERS DESIGNATED BY TITLE
2018 & 2019 INVESTORS BUSINESS LEADERSHIP COUNCIL
($50,000+)
BRAND PARTNER
($25,000 - $49,999)
PRIVATE SECTOR RED TEAM
($15,000 - $24,999)
CORPORATE COUNCIL
($10,000 - $14,999)
Willcox & Savage Bank of America Children’s Hospital of The King’s Daughters Clancy & Theys Construction
Damuth Trane Dixon Hughes Goodman, LLP Dollar Bank Langley Federal Credit Union Liebherr Mining Equipment
Old Point Financial Corporation Runnymede Corporation Thomas Nelson Community College Tidewater Community College
SMALL BUSINESS KPMG LLP Ware Insurance Company Atlantic Dominion Distributors ECPI University McGuireWoods LLP Wells Fargo Advisors Aerotek, Inc.
($5,000 - $9,999) The Breeden Company Capital Concrete, Inc. Checkered Flag Columbia Gas of Virginia Drucker & Falk, LLC Electronic Systems, Inc. Faneuil, Inc.
Greg Garrett Realty Harbor Group International, LLC Harvey Lindsay Commercial Real Estate Norfolk Airport Authority Norfolk Waterside Marriott Plasser American Corporation
PNC Bank Riverside Health System W.M. Jordan Company Birdsong Peanuts Christopher Newport University Jones Lang LaSalle
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FINANCIALS SUPPORT Corporate Investment & REVENUE Investment Base New/Upgrade Attrition Total Corporate Investment Municipal Investment Total Municipal Investment3 Miscellaneous Total Miscellaneous
Total Support & Revenue EXPENSES Program Expenses Marketing & Promotion Business Development Business Intelligence Product Improvement Investor Relations4 General Operations Staff Expenses
2018 (Revised1)
2019 (Proposed2)
$735,860 $45,000 ($41,226) $739,634
$739,634 $976,317 ($36,982) $1,678,969
$1,399,265 $1,454,099 $13,000
$15,000
$2,151,899
$3,148,068
2018 (Revised)
2019 (Proposed)
$22,000 $375,000 $157,000 — $82,000 $438,295 $1,376,705
$400,000 $540,000 $125,000 $30,000 $365,000 $405,650 $1,268,750
Total Expenses5
$2,451,000 $3,134,400
Balance (Revenue over Expenses)
$(299,101)
$13,668
1. 2018 Budget revised and approved at the 9/27/18 Board of Directors Meeting 2. Proposed Budget beginning 2019 start at $3,151,127 and ramp up to $4,092,170 by year 3 3. 2019 Municipal Investments equal the sum of 50% of total 2018 Municipal Investment plus 50% of the propose FY 2019-2020 Municipal Investment as stated within the proposed Master Agreement 4. Capital campaign expenses are $24,500/mo, plus expenses estimated at $11,101/mo for a total of $35,603/mo 5. 2019 Budget with staff expenses allocated across departments
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2019 LEADERSHIP
Robert S. Herbert, Interim President & CEO Hampton Roads Economic Development Alliance Brian K. Skinner, 2019 Alliance Chair Chief Banking Officer, TowneBank
Branscome Inc.
Mr. C. Max Bartholomew, Jr. Dominion Energy
Mr. Mark B. Dreyfus ECPI University
Mr. William E. King, VP Investor Relations*
Harvey Lindsay Commercial Real Estate
Ms. Susan Jacobs
Huntington Ingalls Industries / Newport News Shipbuilding
Mr. Charles V. McPhillips, Treasurer* Kaufman & Canoles, P.C.
Mr. Larry “Chip” Filer
Old Dominion University
Honorable Richard W. West City of Chesapeake
Honorable Frank M. Rabil City of Franklin
Honorable Donnie R. Tuck City of Hampton
Honorable Richard “Dick” L. Grice
Mr. Hobie Ritzel
Cox Communications Virginia (Business Leadership Council)
Mr. Robert S. Herbert*
Hampton Roads Economic Development Alliance (Interim President & CEO/Non-Voting)
Mr. Shawn Avery*
Isle of Wight County
Hampton Roads Workforce Council (Community Partner Representative)
Ms. Cynthia D. Rohlf*
Mr. John Reinhart
Honorable Martin A. Thomas Jr.
Mr. Jim Spore*
City of Newport News (At Large Public Sector Representative) City of Norfolk
Honorable Carey L. Freeman City of Poquoson
Mr. Joseph R. Witt, Secretary*
Honorable John L. Rowe, Jr.
Old Point Financial Corporation
City of Portsmouth
Mr. Howard P. Kern
Honorable R. Randolph Cook
Sentara Healthcare
Southampton County
Mr. Brian K. Skinner, Chair*
Honorable Linda T. Johnson
TowneBank
City of Suffolk
Mr. George A. Faatz
Honorable Robert M. Dyer
Virginia Natural Gas
City of Virginia Beach
Mr. C. Grigsby Scifres, Immediate Past Chair*
Mr. Douglas Smith, Vice-Chair*
Williams Mullen
EX OFFICIO
Mr. Buddy League
PUBLIC SECTOR
PRIVATE SECTOR
2019 BOARD OF DIRECTORS
Port of Virginia (Business Leadership Council) Reinvent Hampton Roads (Community Partner Representative)
Mr. Hugh L. Patterson* Willcox & Savage (General Counsel)
*EXECUTIVE COMMITTEE MEMBERS OFFICERS DESIGNATED BY TITLE
City of Norfolk
Mr. Chuck Rigney, VP Economic Development* City of Hampton (RED Team Representative)
17
LOOKING AHEAD
NEW IN 2019
In the early months of 2019, the Alliance embarked on several new initiatives and reinstated or revamped existing programs to optimize the future success of the organization and ultimately, the regional economy.
LEADERSHIP
In January, Steve Herbert joined the Alliance as Interim President & CEO and Chris Lemmon began as Executive Vice President and as the organization’s first Chief Marketing Officer. Steve Herbert is a former city administrator, economic developer, city planner, and naval officer. He previously served as Deputy City Manager for the City of Virginia Beach. Prior to that role, he held positions as: Interim City Manager for the City of Hopewell; City Manager for the City of Suffolk; Assistant Director of Economic Development and Chief Plans and Policy Officer for the City of Portsmouth; and Assistant Director of Development for the City of Norfolk. Chris Lemmon has over 20 years of experience in consumer marketing and has worked for a number of well-known brands including Enfamil infant formula, Kellogg’s Pop-Tarts, Reynolds Wrap and Swedish Match. Herbert and Lemmon come to the Alliance with extensive experience and knowledge in an effort to create a world-class, regional economic development organization. With new leadership in place, the Alliance has made aggressive and substantial progress towards the goals and objectives outlined in the IBM Study and the 2019 Business Plan.
MASTER AGREEMENT
Second to onboarding new leadership, the Alliance has focused heavily on collaboration in 2019. Full implementation of the IBM Study and the 2019 Business Plan requires reorganizing and strengthening the Alliance so it can play a more substantial and prosperous role in all aspects of regional economic development. During conversations with its member localities regarding new operating alignments and protocols to identify and transform the Alliance’s role in the regional economic development ecosystem, it became clear that a regional contract was necessary to ensure success. In late 2018, these discussions led to the creation of a Master Agreement for Regional Economic Development in Hampton Roads. This Master Agreement is the first of its kind in Hampton Roads and serves to clarify roles and relationships across the region to support a robust regional economic development delivery system. Spearheaded by the Alliance, in collaboration with Bob Crum, Executive Director of HRPDC and Jim Spore, President of Reinvent Hampton Roads, the agreement was circulated among the Chief Administrative Officers of all 17 municipalities of the Hampton Roads MSA. Taking their feedback into consideration, the final agreement was published in Spring 2019 to be approved by the city councils and board of supervisors of each of the Alliance’s 11 member localities.
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RED TEAM ENGAGEMENT
This year, the Alliance reconvened the Regional Economic Development (RED) Team with a new participatory format which has contributed to 100% representation at the first meeting of the year. The RED Team membership is almost entirely made up of the economic development directors from each of the Alliance’s 11 member localities. New in 2019, the Alliance invited James City County, York County and the City of Williamsburg to join the RED Team, bringing the total number of localities represented to 14. The Hampton Roads Planning District Commission (HRPDC) and the Hampton Roads Military and Federal Facilities Alliance (HRMFFA) also joined the RED Team this year. The Hampton Roads Workforce Council, Port of Virginia, Dominion Energy and Virginia Natural Gas have continued their partnership with the Alliance and are represented on the RED Team as well.
CAPITAL CAMPAIGN
In late 2018, the Alliance set its course on increasing leadership engagement and private sector investment in the Alliance to $2 million per year. In addition, the boards of both Reinvent Hampton Roads and the Hampton Roads Business Roundtable indicated a willingness to assist the Alliance in reaching this investment goal. Following a detailed discussion during the Alliance’s October Investor Update & Work Session, the Alliance’s capital campaign with Convergent Nonprofit Solutions began in earnest in November. The campaign, Propel Hampton Roads, has ramped up in 2019 and is designed to foster regional partnership to power the region’s potential for a successful future and greater economy for all. As of May 17, 2019, the campaign has $1.45 million in commitments and another $1.75 million in pending pledges from local private sector businesses.
INITIATIVES WITH VEDP
The Alliance has increased its marketing trips and strengthened its relationship with the Virginia Economic Development Partnership (VEDP). On an executive level, the Alliance reinstated quarterly meetings with VEDP in their Richmond office. Additional initiatives include one-on-one meetings with VEDP staff and counterparts to address lead generation and tracking, incentive programs and quarterly progress reports.
ENHANCED MARKETING
The Alliance has implemented new outreach and lead generation methods with site consultants to introduce and market Hampton Roads. To further increase lead generation, the Alliance negotiated new contracts with business outreach firms, 310 Ltd and RCI, and increased its partnership with international marketing firm, PM&P. The Alliance first hired PM&P in 2018 to enhance the Alliance’s international profile, an initiative that resulted in the Alliance being represented at 11 trade shows and a total of 99 corporate appointments. In 2019, the Alliance contracted nationally recognized, corporate expansion marketing firm, Conway, Inc. to:
2019 STAFF
1. Develop a new visual identity for the Alliance 2. Construct a new, fully automated website 3. Enhance the organization’s national reputation through strategic public relations and marketing efforts The results of these numerous marketing initiatives are being tracked through a detailed, monthly dashboard of Key Performance Indicators. As of May 15, 2019, the Alliance has conducted 15 marketing missions, held more than 90 appointments and hosted 9 prospect visits. It has also opened 19 new projects, a 72% increase over YTD 2018.
BUSINESS RETENTION & EXPANSION PROGRAM
In 2019, the Alliance introduced its first ever Business Retention and Expansion program, in alignment with VEDP and its eleven member localities. New protocols and processes are being socialized to support regional businesses and encourage them to remain and grow in the Hampton Roads region. The Alliance added a new staff position, Vice President of Business Development & Customer Relationship Management, to oversee this initiative. The position is expected to be filled in June 2019.
TOP ROW
Steve Herbert— Interim President & CEO Chris Lemmon — Executive Vice President & Chief Marketing Officer Amy Parkhurst — Senior Vice President, Business Development Laura Hayes — Vice President, Business Development Chad Matheson — Director, Business Intelligence
BOTTOM ROW
Jillian Goodwin — Director, Marketing & Communications Angela Parsons — Director, Operations Addie Mason — Associate Director, Marketing & Communications Jonathan Holman — Associate Director, Business Intelligence Adelaide Gilmore — Senior Administrative Assistant
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500 Main St, Suite 1300 • Norfolk, VA 23510 +1-757- 627-2315 www.hreda.com
info@hreda.com @HamptonRoadsEDA
