Financials

SUPPORT & REVENUE Corporate Investment

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

Total Expenses5

2018 (Revised1)

$735,860 $45,000 ($41,226) $739,634

$1,399,265

$13,000

$2,151,899

2018 (Revised) $22,000 $375,000 $157,000 — $82,000 $438,295 $1,376,705

$2,451,000

2019 (Proposed2)

$739,634 $976,317 ($36,982) $1,678,969

$1,454,099

$15,000

$3,148,068

2019 (Proposed) $400,000 $540,000 $125,000 $30,000 $365,000 $405,650 $1,268,750

$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

2019 LEADERSHIP

Robert S. Herbert, Interim President & CEO Hampton Roads Economic Development Alliance

Brian K. Skinner, 2019 Alliance Chair Chief Banking Officer, TowneBank

2019 BOARD OF DIRECTORS

PRIVATE SECTOR

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 Huntington Ingalls Industries / Newport News Shipbuilding Mr. Charles V. McPhillips, Treasurer* Kaufman & Canoles, P.C. Mr. Larry “Chip” Filer Old Dominion University Mr. Joseph R. Witt, Secretary* Old Point Financial Corporation Mr. Howard P. Kern Sentara Healthcare Mr. Brian K. Skinner, Chair* TowneBank Mr. George A. Faatz Virginia Natural Gas Mr. C. Grigsby Scifres, Immediate Past Chair* Williams Mullen

PUBLIC SECTOR

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 (At Large Public Sector Representative) Honorable Martin A. Thomas Jr. City of Norfolk Honorable Carey L. Freeman City of Poquoson Honorable John L. Rowe, Jr. City of Portsmouth Honorable R. Randolph Cook Southampton County Honorable Linda T. Johnson City of Suffolk Honorable Robert M. Dyer City of Virginia Beach Mr. Douglas Smith, Vice-Chair* City of Norfolk Mr. Chuck Rigney, VP Economic Development* City of Hampton (RED Team Representative)

EX OFFICIO

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* 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)

*EXECUTIVE COMMITTEE MEMBERS OFFICERS DESIGNATED BY TITLE

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. 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: 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.

2019 STAFF

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

500 Main St, Suite 1300 • Norfolk, VA 23510 +1-757- 627-2315 info@hreda.com www.hreda.com @HamptonRoadsEDA