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WINDS OF CHANGE

HAMPTON ROADS ALLIANCE HAMPTON ROADS ALLIANCE

2020 ANNUAL REP RT 2020 ANNUAL REP RT


CONTENTS Letter from the Chair

4

President’s Report

5

About the Alliance

6

Marketing & Communications

8

LAUNCHING THE NEW ALLIANCE

757 Recovery

14

Business Development

20

Offshore Wind

26

Business Intelligence

32

Investor Relations

36

Diversity, Equity & Inclusion

42

Governance & Operations ALL HANDS ON DECK

44

A Year to Remember

48

NAVIGATING THE STORM PROPELLING THE 757 FORWARD OPPORTUNITY ON THE HORIZON CHARTING THE COURSE A RISING TIDE LIFTS ALL BOATS HAMPTON ROADS: A 21ST CENTURY SAFE HARBOR

2020 ANNUAL REPORT 3


LETTER FROM THE CHAIR The “New Alliance” is finally here, and in a year of exceptional challenges no less. With new branding, a new name, new CEO, new mission, new website, new staff, reduced board size, and reliable funding, the Alliance is genuinely a different organization than it has been in the past. The Winds of Change is an excellent theme for our annual report this year. We certainly did not sit still when crisis hit. The organization’s great strides in establishing Hampton Roads as a supply chain hub for offshore wind on the east coast is one great example. It has been an honor to serve as Chair of the Alliance over the past two years and witness these changes firsthand. From the implementation of the IBM-Plant Location International Study conducted in 2018 leading to the execution of the Master Agreement for Regional Economic Development in 2019 signed by all Chief Administrative Officers of our 11 localities, to the successful private fundraising campaign of 2019, the Alliance is headed in an incredibly positive direction. The new board held two in-person meetings before the pandemic hit last spring. In early 2020, we amended our by-laws to reflect the changes in our organization, we reviewed and discussed our strategic plan, and we received our IRS designation as a 501(c)(3) organization. Like most of yours, our discussions became virtual, but we continued to guide the organization and tackled challenging discussions like the definition of inclusive economic growth in Hampton Roads, the role of the Alliance in the economic recovery of the region, and how to make our regional economy more resilient going forward. You will learn more about these discussions as 2021 unfolds. I am pleased to say the organization is in a strong financial position aided by a $175,000 Payroll Protection Program loan that was forgiven just a few weeks ago, and three GO Virginia grants totaling over $700,000 that will fund our Offshore Wind Supply Chain Hub Development initiative, a Robotics Planning Study, and the region’s economic recovery planning efforts. The Alliance took a leading role in the recovery and resiliency of the Hampton Roads business community when the pandemic hit in March. Through the coordinated efforts of the Alliance and many regional business organizations including the Hampton Roads Chamber, the Hampton Roads Workforce Council, Old Dominion University Strome College of Business, Reinvent Hampton Roads, the Peninsula Workforce Board, the Virginia Peninsula Chamber, Norfolk State University, and the CIVIC Leadership Institute and more, we are working to help our businesses remain viable during this crisis and beyond. This group established the 757 Recovery & Resilience Action Framework. More than a traditional planning process that culminates with a lengthy static document, the 757 Recovery & Resilience Action Framework is a dynamic, ongoing planning resource and implementation framework that is inspired by our region’s thought leaders, advanced by 11 active committees each focusing on their areas of expertise and supported by a virtual platform to encourage collaboration. A region-wide rollout of this plan is anticipated in Spring 2021 featuring all Action Framework programming, including the performance dashboard to track and report impact. We look forward to sharing this important work with you during the Annual Meeting. Thank you for allowing me to play a small part in this impressive organization’s path forward.

Brian K. Skinner 2019 & 2020 Alliance Chair Chief Banking Officer, Towne Bank

4 HAMPTON ROADS ALLIANCE


PRESIDENT’S REPORT Crisis presents opportunity to individuals and organizations willing to change. The COVID-19 pandemic presented an opportunity for the Alliance to accelerate our efforts to be critically important to the region, and our team embraced that opportunity. This annual report reflects the results of our willingness to change while remaining focused on our core business. We supported seven announcements that represented the addition of more than 2,100 jobs and $300 million in investment. Four of those announcements involved business expansions, validating our new role with retention and expansion. In early 2020, we presented a revised strategic plan to the board based upon the three pillars of Regional Leadership, Business Attraction, and Business Retention & Expansion but still grounded in the recommendations of the IBM Study. The goals and strategies are still valid; however, our tactics have adjusted to reflect the realities of COVID-19. The Alliance staff adapted to the current reality of a public health crisis and embraced best practices for safe business interactions by moving the majority of meetings, events and initiatives to virtual formats. We are developing the right team to implement our strategic plan. In March, the Alliance hired Chief Strategy Officer, Nicole Ryf, allowing the organization to leverage our strengths and shift resources to dive deeper into our targeted industries. As you know, these sectors include Business & Shared Services, Information Technology, Advanced Manufacturing, Food & Beverage, Distribution & Logistics, and Offshore Wind. Each Business Development staff member is now focused on specific industries allowing greater opportunity for expertise in their areas. Nicole had been working in the Texas Governor’s Office and brings a wealth of experience and connections. In late 2020, Toi Hunter joined our team as the Vice President for Business Retention & Expansion. Toi is known and well-respected in the region and formerly worked as Business Retention and Expansion Manager at the Virginia Economic Development Partnership. Using funds from GO VA, the Alliance hired two full-time staff to focus entirely on Offshore Wind: Matt Smith, Director of Offshore Wind Business Development, and Carmon Schietzelt, Marketing Specialist of Offshore Wind. As you will read, we have created and are implementing a strategic plan for the creation of an offshore wind supply chain. Through discussions with the Board, our team recognizes the importance of Diversity, Equity, and Inclusion (DE&I) and also recognizes we have shortcomings in this area. The Alliance hired a DE&I consultant, Latisha James, who advised us through the 757 Recovery & Resilience Action Framework process. The focus of her work has been to develop and execute an economic recovery plan that is diverse, equitable, and inclusive for all. Internally, with Latisha’s help, we held three DE&I workshops with the staff. After those workshops, our team created an organizational Vision, Mission, and Values to guide our work. As Chairman Skinner said, we are a very different organization today. I am confident we are building the team that will drive us to a stronger and more resilient regional economy. This annual report reflects the very strong early steps in that process. I am grateful for the opportunity to lead the Alliance in these challenging times.

Douglas L. Smith President & CEO, Hampton Roads Alliance

2020 ANNUAL REPORT 5


ABOUT THE ALLIANCE The Hampton Roads Alliance is the leading regional economic development organization for Hampton Roads, Virginia. It is a nonprofit, public-private partnership representing 11 localities and nearly 70 private investors. With the support of its community and business partners, the Alliance serves as a single point of contact for regional economic development to assist domestic and international companies who are considering Hampton Roads for expansion or investment.

MISSION The Hampton Roads Alliance works collaboratively to lead the 757 region in attracting, growing and retaining companies and talent to create a more resilient, inclusive and equitable region of choice.

VISION To be the catalytic partner that drives economic empowerment for the region, companies, organizations and people who call the 757 home.

VALUES An EMPOWERING environment. Instilling confidence and encouragement. A COLLABORATIVE nature. Fostering working together as a team and with our partners. DIVERSITY in thinking. Supporting unique perspectives and thought processes. INTEGRITY in all we do. Earning the trust of the business community to represent our region. 6 HAMPTON ROADS ALLIANCE


PUBLIC INVESTORS

2020 ANNUAL REPORT 7


MARKETING & COMMUNICATIONS LAUNCHING THE NEW ALLIANCE

8 HAMPTON ROADS ALLIANCE


A NEW DIRECTION FOR A REGIONAL LEADER With great pride and excitement, the Alliance formally launched its new brand in May 2020 with a new name, logo, and updated marketing materials. This process initially began in early 2019 but was postponed to avoid conflicts with the regional branding initiative. Once complete, the Alliance made sure the initiative’s recommendations, such as promoting the 757 moniker as a source of internal pride, were included in the branding through the tagline “Growing the 757. Growing Virginia.” This all-encompassing, fresh and enhanced visual identity is the final piece of an evolution that will allow the Alliance to better tell the story of the Hampton Roads region. The brand launch included state and national advertising campaigns targeting c-suite executives and site location consultants, multiple video productions, and the unveiling of a modern, robust, and interactive new website (www.hamptonroadsalliance.com). The new brand also included a revamped mission, vision and values, detailed on page 6 of this report. Building on the momentum of its brand launch, the Alliance invested significant time and effort into increasing its marketing and communications efforts in 2020 to include a combination of public and media relations, print and digital advertising, multimedia productions and social media marketing. This multipronged approach allowed the Alliance to better serve its stakeholders internally and market the Hampton Roads region to a broader audience externally.

Featured above is the homepage of the Alliance’s new website. See more at hamptonroadsalliance.com.

2020 ANNUAL REPORT 9


ADVERTISING & EARNED MEDIA To further the reach of its new brand, the Alliance took a strategic approach to public and media relations, as well as print and digital advertising in 2020. These efforts allowed the Alliance to command the attention of several local, regional, and even national news outlets. The Alliance worked with its public relations agency, Conway, and industry publications such as Virginia Business, Expansion Solutions Magazine and Site Selection Magazine, to create organic stories and content marketing about the Alliance and the region’s economic development announcements and initiatives. These efforts garnered more than $494,900 in earned media attention and were seen by an audience of over 3,518,000 people.

3.5M+ IMPRESSIONS $494,900 EARNED MEDIA 182 ARTICLES & FEATURES 14 MEDIA INTERVIEWS 10 HAMPTON ROADS ALLIANCE

WINDS OF CHANGE

HOW HAMPTON ROADS IS FACING 2020 2020 has proven to be one of the most difficult years in modern history, as businesses were forced away from their places of work and tasked with inventing the future from a place of uncertainty. While Hampton Roads has historically been buoyed during turbulent economic times by strong defense and tourism industries, times like this prove why it is vital for organizations like the Hampton Roads Alliance to pursue economic diversification. In fact, despite the strong headwinds we’ve faced, the Alliance and our local partners have announced the creation of over 1,900 new jobs and an economic impact of more than $727 million from five companies in the first half of the year. The region has also turned its attention to what may very well become the next pillar of our economic strength: offshore wind. Hampton Roads is uniquely positioned to support the growing $100 billion East Coast offshore wind industry. The region boasts unmatched port infrastructure, America’s largest and most skilled maritime workforce, no overhead bridge restrictions between key port facilities and the open ocean, and abundant waterfront land. Dominion Energy also recently completed installation of the first two turbines in Federal waters as part of its Coastal Virginia Offshore Wind (CVOW) project.

job creation. After receiving grant from GO Virginia in July 2020, the Alliance hired Matt Smith as its first Director of Offshore Wind Business Development. Smith previously served as a Senior Regional Planner and led offshore wind planning efforts at the Hampton Roads Planning District Commission (HRPDC). The Alliance will conduct outreach to supply chain companies, organize and attend prospect meetings and marketing missions, and develop marketing materials. This effort will also involve sponsoring and having a highly visible and significant presence at major industry trade shows including the Business Network for Offshore Wind’s International Partnering Forum, planned to be held in Virginia in 2021. Many of the in-person engagements that would generally be part of this type of effort may be challenging due to COVID-19. For that reason, the Alliance is engaging overseas consultants to serve as a Hampton Roads Offshore Wind Office in Europe. These consultants will set up prospect meetings and attend inperson events and meetings, in the event that Alliance staff is unable to travel. Another primary focus of this effort will involve engaging local businesses in supply chain opportunities. Many businesses have already capitalized on the chance to serve the CVOW project. The Alliance will work with its partners to provide informational seminars sfor existing businesses to learn about ways they can participate in the offshore wind supply chain.

In collaboration with local, regional, and state partners, the Alliance is leading an offshore wind supply chain development initiative that will position Hampton Roads as a premier location for companies to invest. This initiative is an opportunity to create new economic prospects for existing businesses, attract new investments to the region, and spark new permanent

The winds of change have reached the shores of Hampton Roads. Read more at www.HamptonRoadsAlliance.com or follow the Alliance on social media for the latest updates and to learn how to get involved. SPONSORED CONTENT

LEARN MORE ABOUT BUSINESS OPPORTUNITIES IN OFFSHORE WIND The nation’s largest offshore wind farm is being built off of Virginia’s coast. Join the Hampton Roads Alliance and Dominion Energy to learn how your business can be a part of the project at any of one of the following, free, virtual information sessions: Hampton Roads: Dec. 3 • 8:00am Richmond: Dec. 8 • 8:00am Northern Virginia: Dec. 9 • 8:00am

Southside: Dec. 15 • 8:00am Western Virginia: Dec. 16 • 8:00am

Sign up for any sessions at:

www.HamptonRoadsAlliance.com/offshorewind Register with the Virginia Offshore Wind Supply Chain Partnership Directory to stay informed of supply chain opportunities and receive industry updates at www.bit.ly/vaoswdirectory HAMPTON ROADS ALLIANCE

Growing the Virginia Supply Chain.

Congratulations to our

100 PEOPLE TO MEET HONOREE! The Hampton Roads Alliance commends Matt Smith for his recognition as one of Virginia Business’ 100 People to Meet in 2021. The Alliance is driving the effort to establish Hampton Roads as the premier east coast supply chain hub for offshore wind, an initiative made possible by grant funding from GO Virginia. Matt is the perfect person to lead this effort in collaboration with our many partners, including the Port of Virginia, VEDP, VMA, Virginia DMME, and our localities. We appreciate his commitment and are proud to have him as a part of the Alliance team!

www.HamptonRoadsAlliance.com

Matt Smith

Director, Offshore Wind Business Development

HAMPTON ROADS

Growing the 757. Growing Virginia.

E


ADVERTISING SPOTLIGHT SITE SELECTION MAGAZINE To showcase its target industries, support its new brand, and increase exposure for Hampton Roads, the Alliance engaged Site Selection Magazine and its public investors for a print advertising campaign. Before engaging with the magazine, the Alliance researched industry publications to determine the best and most strategic outlets in terms of cost, reach and reputation among site selection consultants. Site Selection Magazine was found to be the top choice and is particularly popular in Europe among various trade groups and industry professionals. With this knowledge in mind, the Alliance launched a campaign in July 2020 with a 5-page editorial on Distribution & Logistics. The editorial, called an Investment Profile by Site Selection Magazine, is a content marketing piece written by a managing editor with strategic direction and collaboration from the Alliance. The first investment profile featured the Alliance, VEDP, the Port of Virginia, eight local companies and two educational institutions. The piece was also co-marketed with the Port of Virginia. Additionally, the Alliance’s campaign included a branded belly band on the outside of the magazine (pictured above). Building on the momentum of the July campaign, the Alliance committed to four additional Investment Profiles on target industries from November 2020 to May 2021. These editorials will feature local companies and will give the Alliance the chance to dive deeper into its key industries to proactively create marketing collateral and additional content such as company testimonials. In addition to sharing the online version of the editorial, Site

Selection Magazine provides 150 high quality reprints of the feature that allow the piece to be cross functional with business development. The Business Development department has and will continue to utilize the pieces as collateral with prospects and site consultants. To amplify the impact of this campaign, the Alliance coordinated a co-marketing opportunity with its member localities within the Investment Profile series. While the Alliance paid for 2-pages worth of editorial, Site Selection Magazine agreed to increase its editorial to three total pages if the Alliance secured one full page of paid advertising from one of its public investor. Site Selection Magazine offered a significant discount off the rate card price to the public investors that took advantage off this opportunity. In November, the Alliance’s second Investment Profile focused on Unmanned Systems and featured Huntington Ingalls Industries, DroneUp and more. The piece was co-marketed with a full-page ad from Hampton Economic Development. The January 2021 issue of the magazine will include an Investment Profile on Food & Beverage Processing that is co-marketed with a full-page ad from Portsmouth Economic Development. The March and May issues are tentatively scheduled for Shared Services/Information Technology, and Offshore Wind and the Alliance is coordinating with additional localities on ad opportunities.

2020 ANNUAL REPORT 11


SOCIAL & MULTIMEDIA The Alliance invested significant time and effort into increasing its social media presence in 2020. By implementing best practices for social media marketing and targeting key audiences, the Alliance has successfully used its profiles to promote its new brand, provide business recovery resources, and share relevant and timely information with the community. On LinkedIn, this effort resulted in 168,700+ impressions, a 95% increase in followers, and a 548% increase in post shares in 2020, as well as an engagement rate of 6.6% (compared to 2.1% in 2019). On Facebook, the Alliance had 877,800+ impressions and saw a 53% increase in page likes throughout the year. The Alliance also heavily utilized video marketing in 2020 in its rebranding and to further business recovery efforts. With support from a local agency, the Alliance produced and distributed two videos to introduce the new brand. Both videos and more can be viewed at www.hamptonroadsalliance.com/media-center.

An An Important Important Message Message from from Alliance President & Alliance President & CEO, CEO, Doug Doug Smith Smith HD HD

HD HD

To further amplify the recovery and resiliency efforts, the Alliance produced a video series that featured local thought leaders sharing their perspectives on how the region can best leverage the trends and changes brought on by the COVID-19 pandemic. The series contained three seasons and eighteen total episodes, all recorded via Zoom. Using social media as the primary platform to share the series, the Alliance saw a combined paid and organic reach of more than 355,000 for a total of 89,600+ total video minutes viewed.

2,070 NEW FOLLOWERS 168,700+ IMPRESSIONS 407 NEW FOLLOWERS 877,800+ IMPRESSIONS 436 NEW FOLLOWERS 321,500+ IMPRESSIONS 2020 ANNUAL REPORT 13


757 RECOVERY NAVIGATING THE STORM 14 HAMPTON ROADS ALLIANCE


UNPRECEDENTED CHALLENGES REQUIRE UNPRECEDENTED COLLABORATION The Alliance and its regional partners recognized an urgent need to provide business recovery resources and support to the Hampton Roads community when the pandemic hit in March. The Alliance worked swiftly with the Hampton Roads Chamber, Virginia Peninsula Chamber of Commerce, Reinvent Hampton Roads, Hampton Roads Workforce Council, Greater Peninsula Workforce Board, Old Dominion University’s Strome College of Business, Norfolk State University, and the CIVIC Leadership Institute to create the 757 COVID-19 Business Recovery Forum, also known as www.757Recovery.com. This interactive website allowed business leaders to gain access to resources and the support they needed during the peak of the pandemic. Simultaneously, the Alliance launched a series of surveys to Hampton Roads business leaders and the business community to collect meaningful data about the severity of the pandemic’s impact on businesses. The data from these surveys was used to inform elected officials about issues facing the community and to shape the future resources offered by the Alliance and its regional partners.

Visit 757recovery.com to see more.

2020 ANNUAL REPORT 15


CENTRALIZED RESOURCES & EXPERT ADVICE As the drastic impact of COVID-19 became clear in April, businesses were grappling with uncertainty from myriad directions, including learning new health and safety protocols and how to apply for the recently passed CARES Act relief funding. The Alliance and its partners stepped up to find the resources businesses needed and to serve as a source of answers via the 757Recovery.com platform. 757Recovery.com, a dedicated web portal built and managed by the Alliance, was designed to give businesses and community members the opportunity to hear from and engage with industry experts on how to navigate the business impacts of the virus. Bankers, lawyers, accountants, educators, executives, and more contributed to the site by writing blogs, participating in forum discussions, and hosting webinars to share their expertise. A key feature and unique value-add of the website was the message board forum, where individuals and businesses alike could “meet the experts” and ask their specific questions during weekly live Q&A sessions. Since its launch on April 2nd, more than 12,200 unique visitors have visited 757Recovery.com nearly 29,000 times. The site quickly became the main repository for regional recovery data and expert opinions on how to navigate this unique time in a tactical and socially responsible manner.

REGIONAL DATA FROM BUSINESS LEADERS The day after the Senate passed the CARES Act, the Alliance reached out to Senator Mark Warner to coordinate a call with local business leaders. During this call, it became clear the business community had specific questions and was having a hard time distilling information. Based on this discussion, the Alliance came to understand that it would be beneficial to gather hard data about the needs of the region’s business community in addition to the anecdotal information that was already being collected. Using 757Recovery.com as the hub, the Alliance launched a comprehensive, multi-wave survey of Hampton Roads business leaders and the business community to collect meaningful data about the severity of the pandemic’s impact on business. All survey results can be found at www.757Recovery.com/survey.

16 HAMPTON ROADS ALLIANCE

THANK YOU TO THE FOLLOWING INDIVIDUALS WHO PARTICIPATED IN THE 757RECOVERY FORUMS, VIDEOS AND/OR AS SUBJECT MATTER EXPERTS FOR THE 757 RECOVERY & RESILIENCE ACTION FRAMEWORK Monique Adams 757 Angels

Clayton Turner NASA Langley Research Center

Aleea Slappy Wilson City of Norfolk Alex Case Cordillera Applications Group

Dr. Ron Carlee, Martin Goossen, Dr. Theresa (Terri) Kirchner, Dr. Erika Marsillac, & Bob McNab Old Dominion University

J.D. Myers II Cox Communications Virginia

Natasha Merz Old Point National Bank

Darius Davenport Crenshaw, Ware & Martin, P.L.C.

Jim Spore Reinvent Hampton Roads

Doug Smith Hampton Roads Alliance

Dr. Jordan Asher Sentara Healthcare

Jim Carroll Hampton Roads Chamber

John Martin & Patrice Lewis SIR

Bob Crum Hampton Roads Planning District Commission

Nancy Grden Strome Entrepreneurial Center

Shawn Avery Hampton Roads Workforce Council Felicia Blow Hampton University Xavier Beale Huntington Ingalls Industries Dustin DeVore Kaufman & Canoles Evan Kalfus & David Sutliff KPMG

Jeff Johnson Tech Research Center Park Chris Stuart Top Guard Security Mary Miller United Way of South Hampton Roads RADM Charles “Chip” Rock U.S. Navy William Furr Willcox Savage


757 = ONE

ECONOMIC

EMPOWERMENT AND GROWTH FOR ALL REGIONAL VISION STATEMENT

Our economy is   RESILIENT  and   INNOVATIVE. Here, we all   WORK TOGETHER  to grow our economy and advance the well-being of all residents. We’re inspired by   WHAT WE VALUE: a commitment to inclusion and equity, a strong military presence, a welcoming community spirit, and our old salt, new vibe coastal lifestyle, making our region   ONE OF A KIND, AND ONE FOR ALL.

757 RECOVERY & RESILIENCE ACTION FRAMEWORK In July 2020, the Alliance and its partners launched the 757 Recovery & Resilience Action Framework, crafted by eleven committees comprised of more than 170 regional business leaders. The Framework is not just a plan but rather an action playbook created by and for the 757 business community, and specifically for the region’s 5,500 business leaders. It has been designed to help accelerate the region’s recovery from the COVID-19 economic shock, and to do so in a way that builds a more resilient economy for everyone in the 757. The eleven committees benefited from a diversity of opinion thanks to input from next gen vice-chairs and Old Dominion University Strome College of Business student liaisons. Each committee represented a different topic area, and its members discussed challenges and recommendations over a series of four virtual meetings. The ODU student liaison on each committee drafted a white paper based on recommendations from their committee chairs. The Integration & Economic Impact Committee, consisting of regional leaders and economists, scoured through the white papers and found common themes throughout each committee. They used these themes to develop key performance indicators and a vision statement for the Hampton Roads economy. To achieve this vision, the Framework advances five strategic imperatives:

1. BUILD REGIONAL UNITY 2. GROW NEW JOBS 3. GROW, RETAIN, AND ATTRACT TALENT 4. BUILD RESILIENCY 5. ADVANCE REGIONAL INFRASTRUCTURE A lead organization has been assigned to each imperative to serve as the convener. Those organizations will be responsible for implementation and results. The strategic imperatives include 30 specific implementation programs. Each program contains a designated lead organization, goals, action steps, and specific measures to track and report performance. The impact of all program areas will be recorded, tracked, and reported on the Framework’s public performance dashboard, found at framework.hamptonroadsalliance.com.

2020 ANNUAL REPORT 17


THANK YOU TO THE 170+ BUSINESS AND COMMUNITY LEADERS WHO VOLUNTEERED THEIR TIME TO SERVE ON OUR 757 RECOVERY & RESILIENCE ACTION FRAMEWORK COMMITTEES. WELLNESS & HEALTHCARE COMMITTEE Co-Chairs: Howard P. Kern Sentara Healthcare William B. “Bill” Downey Riverside Health System Next-Gen Co-Chair: Briana Jackson Children’s Hospital of the King’s Daughters

ORGANIZATIONAL COLLABORATION MODEL COMMITTEE

INFRASTRUCTURE/ CONNECTIVITY COMMITTEE Co-Chairs: Andria McClellan Hampton Roads Planning District Commission Darius K. Davenport Crenshaw, Ware & Martin, P.L.C.

757 PLACE MAKING & MARKETING COMMITTEE Co-Chairs: Joashua F. Schulman, PC Town Center Office Suites / Real Estate Attorney Lynelle Haugabrook Northern Star Credit Union, Inc. Next-Gen Co-Chair: Alisa Crider Hampton Roads Alliance

TRAVEL, TOURISM, HOSPITALITY & FOOD COMMITTEE Co-Chairs: Cliff Fleet Colonial Williamsburg Foundation Akhil Jain Landmark Hotel Group

Next-Gen Co-Chair: Megin Kennett CO Technologies

Next-Gen Co-Chair: Tiffany Russell Virginia Beach Convention and Visitors Bureau (CVB)

MARITIME COLLABORATIVE COMMITTEE

SCIENCE & TECHNOLOGY COMMITTEE

Co-Chairs: John O. “Dubby” Wynne Reinvent Hampton Roads

Co-Chairs: Stuart Henderson Jefferson Lab

Robert McKenna Virginia Peninsula Chamber

Nancy L. Grden, MPR, MBA Old Dominion University

Dr. David E. Bowles Old Dominion University

Next-Gen Co-Chair: Latiesha Handie City of Hampton

Next-Gen Co-Chair: Dustin Rinehart Port of Virginia

Next-Gen Co-Chair: Kevin R. Antcliff National Aeronautics and Space Administration

Co-Chairs: William E. Harrell Hampton Roads Transit

For a complete list of committee member names, please visit framework.hamptonroadsalliance.com.

TARGET INDUSTRIES COMMITTEE Co-Chairs: Jeff Tanner Old Dominion University Rony Thomas LifeNet Health Next-Gen Co-Chair: Jonathan Holman Hampton Roads Alliance

SMALL BUSINESS/RETAIL COMMITTEE Co-Chairs: Bryan Stephens Hampton Roads Chamber James Carroll, III Hampton Roads Chamber Next Gen Vice Chair: Hamilton Perkins Hamilton Perkins Collection

INNOVATION COMMITTEE Chair: Monique Adams 757 Angels

INTEGRATION & ECONOMIC IMPACT COMMITTEE Co-Chairs: Glenn Carrington Norfolk State University Jim Kibler Virginia Natural Gas Next-Gen Co-Chair: Katherine Rainone Hampton Roads Planning District Commission


A PATH FORWARD FOR THE 757 In December, the Framework was made public for the business community to review and provide feedback to help finalize the plan. The Framework will be implemented in Spring 2021 with clear duties and lines of responsibility outlined for the region’s lead business organizations. A public performance dashboard, and scheduled meetings throughout 2021 and beyond, will report on the progress and hold everyone accountable. It is a fluid piece and will undergo frequent changes and additions as the community navigates this long recovery period. It took the United States and Virginia nearly six years to recover all the jobs lost during the Great Recession. For Hampton Roads, the recovery was more tepid, taking over eight years to recover its lost jobs. Undoubtedly, the COVID-19 economic shock has exceeded that of the Great Recession. The region must temper its expectations and accept that a recovery will not be quick or smooth. More critically, however, regional leaders and stakeholders must reimagine what recovery will look like in a changed world. This is a time to question assumptions and old ways of doing things. It is time for a bold new approach. The leading 757 business organizations have come together as a coalition to answer this call, and the 757 Recovery & Resilience Action Framework is the way forward.

CARES ACT

757

RECOVERY & RESILIENCE ACTION FRAMEWORK

SPOTLIGHT As part of the relief efforts during the pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help Americans weather the storm. Hampton Roads localities quickly became administrators of this funding and came up with a variety of creative ways to provide relief to small businesses. Some administered grants for rent relief while others provided assistance for workforce development and further training. All told, Hampton Roads localities disseminated more than $16.9 million dollars to aid hundreds of businesses when they needed it most. In addition, the Payroll Protection Program (PPP), also part of the CARES Act, provided relief directly to eligible companies in need of funding to avoid layoffs during the height of the shutdowns. In the Alliance’s 11 localities, businesses received more than $520 million in aid. These grants were made possible in large part by banks across the region, who assisted companies with applications and processed the loans. 2020 ANNUAL REPORT 19


BUSINESS

Huntington Ingalls Industries’ Unmanned Systems Center of Excellence Groundbreaking Hampton, September 2020

DEVELOPMENT PROPELLING THE 757 FORWARD Development at Amazon’s Robotic Fulfillment Center Suffolk, May 2020

20 HAMPTON ROADS ALLIANCE


EXCEEDING GOALS TO DRIVE GROWTH: 2020 BUSINESS ACTIVITIES REPORT Despite the obstacles presented by COVID-19, the Alliance exceeded its 2020 business attraction and expansion goals in all categories due to a strong project pipeline established in 2019. The following chart compares 2020 goals to 2020 results.

PROJECTS ANNOUNCED JOBS CREATED CAPITAL INVESTMENT

2020 Goals

2020 Results

6 7 1,100 2,100+ $30,000,000

TOTAL APPOINTMENTS

2020 2019 2018

231

286

360

17 40 58

PROJECT FILES OPENED

62 66 44

Of note in 2020, as compared to prior years, is the increase in domestically sourced projects. This phenomenon could be explained by a combination of the restrictions posed by COVID-19 as well a focus on the part of VEDP on the domestic sourcing of personal protective equipment.

SOURCED BY VEDP

INFORMATION TECHNOLOGY

42%

ADVANCED MANUFACTURING

19%

FOOD & BEVERAGE PROCESSING

10%

DISTRIBUTION & LOGISTICS

2020 2019 2018

56% 53% 50%

SOURCED BY THE ALLIANCE

44% 47% 50%

INTERNATIONAL PROJECTS*

26% 41% 60%

DOMESTIC PROJECTS*

63% 59% 40%

*Of known origins

BUSINESS & SHARED SERVICES

13%

PROSPECT VISITS

5%

$330,000,000+

While all travel ceased starting in March, the Alliance did not discontinue its business attraction efforts. Rather, conversations with companies interested in exploring Hampton Roads for expansion or new investment projects continued virtually. The number of project files opened in 2020 remained comparable to 2019 due to a significant number of inquiries from the Virginia Economic Development Partnership (VEDP). The Alliance continued to proactively build the project pipeline through European lead generation firm PM&P, which held 652 first-time meetings on the Alliance’s behalf in 2020. The chart below compares 2020 results with those of 2019 and 2018.

2020 NEW PROJECTS PROFILE BY INDUSTRY

6%

OFFSHORE WIND Note: Remaining 5% of projects were in other or non-target industries. 2020 ANNUAL REPORT 21


THE ALLIANCE ANNOUNCED

SEVEN PROJECTS

IN 2020.

Combined, these companies will create OVER 2,100 NEW JOBS

and invest

MORE THAN $330 MILLION in

Hampton Roads. 22 HAMPTON ROADS ALLIANCE

GMAX INDUSTRIES JANUARY 2020 • FRANKLIN GMAX Industries, Inc., a manufacturer and sourcing agent of medical disposable products for the healthcare industry, will invest $10.5 million to establish a manufacturing and distribution operation in Pretlow Industrial Park in the City of Franklin. The facility will centralize the company’s operations in-house, creating 40 new jobs. Headquartered in Hauppauge, New York, GMAX Industries’ portfolio includes products for Custom Procedure Kit manufacturers, medical disposable products for healthcare providers through distribution, and finished goods and components for other medical manufacturers. ACESUR USA, LLC JANUARY 2020 • SUFFOLK Acesur, an international olive oil manufacturer, will invest $11 million to establish its first U.S. production facility in the City of Suffolk. The company purchased a two-story Class A manufacturing facility for $5 million and plans to invest an additional $6 million for renovations and equipment. The new facility, operating under its subsidiary, Acesur USA, LLC, will handle the company’s bulk imports through the Port of Virginia, and then create, blend, and distribute the finished product from its Suffolk operation. Acesur, headquartered in Dos Hermanas, Seville, Spain, has been producing olive oil since 1840 and currently exports its products to more than 90 countries. AMAZON MARCH 2020 • SUFFOLK AMAZON MARCH 2020 • CHESAPEAKE America’s leading online retailer, Amazon, simultaneously announced two projects in Hampton Roads in early 2020. The company plans to build two new, state-of-the-art operations facilities that will create a combined 1,500 new jobs. In Suffolk, Amazon will invest $200 million to build the largest industrial building in Virginia. At 3.8 million square feet, the multi-story robotics fulfillment center will be one of the company’s most advanced facilities and will employ 1,000 full-time workers. Down the road in Chesapeake, Amazon will construct a 650,000 square foot import processing center. A first of its kind in Virginia, this operational facility will employ 500 people full-time, with industry-leading pay and benefits. During the Governor’s announcement, several speakers noted the cooperation the City of Norfolk gave to accommodate development adjacent to Norfolk’s main water line that runs through the site in Chesapeake. As Secretary of Commerce and Trade, Brian Ball, noted, “In economic development, great things happen when communities collaborate.” In December, Amazon announced additional plans to open delivery centers in Hampton and Norfolk that will create 200 more jobs.


ASGN/APEX SYSTEMS JUNE 2020 • VIRGINIA BEACH ASGN Inc./Apex Systems announced plans to invest $1.8 million to expand its operations in the City of Virginia Beach. The company will add 147 new jobs to its office in the Armada Hoffler Tower in Town Center. This project represents a portion of the company’s comprehensive plan for Virginia which includes a total investment of $12. 4 million and the creation of 700 jobs. ASGN, a leading provider of IT and professional consulting services in technology, digital, creative, engineering, and life sciences fields across commercial and government sectors, is ranked 698th on the Fortune 1000 list. The company helps clients develop, implement, and operate critical IT and business solutions through its integrated offering of professional staffing and IT solutions. ASGN subsidiary, Apex Systems, LLC, was founded in Richmond in 1995 and has experienced strong growth across the Commonwealth for over 20 years and currently employs more than 4,000 Virginians.

HUNTINGTON INGALLS INDUSTRIES SEPTEMBER 2020 • HAMPTON In September 2020, the Alliance, in partnership with the City of Hampton and Virginia Economic Development Partnership, was pleased to announce Huntington Ingalls Industries (HII) Technical Solutions Division (TSD) will create more than 250 jobs with the establishment of its Unmanned Systems Center of Excellence. HII TSD worked directly with Alliance staff to identify opportunities in Hampton Roads that would best fit the need for its newest facility and engage local and state partners along the way. Located in Hampton Roads Center North in Hampton, the first 22,000 square foot building will be delivered in December, with an additional 135,000 square feet to be delivered by the end of 2021. A key component to the success of this project was Hampton’s ability to quickly respond to the company’s need for a shovel ready site; the City had recently completed the work needed to obtain Tier 4 status for the parcel chosen for the project. Another driving factor for the location was the access to a qualified workforce. The site is close to NASA Langley and to other regional assets such as Newport News Shipbuilding and Jefferson Lab. According to Andy Green, President of HII Technical Solutions, the location “checked all of the boxes” being in close proximity to these industry assets. “We can take advantage of the skilled workforce and lean on decades of manufacturing nuclear submarines.” The location allows for access to “thousands of engineers and designers, many with expertise that is unmatched.”

ACOUSTICAL SHEETMETAL JULY 2020 • VIRGINIA BEACH Acoustical Sheetmetal Company (ASC), a manufacturer of sound attenuating and weather protective enclosures for on-site power generation equipment, announced plans to invest $15.8 million to expand its operations in Virginia Beach. The project will add an additional 100,000 square foot production facility to the company’s Virginia Beach footprint and create 200 new jobs. Founded in 1994, ACS manufactures weatherproof enclosures that serve as control rooms, house generators, pumps, compressors, switchgear, HVAC equipment, and other specialty products. Prior to this announcement, the company already employed more than 145 people at its Virginia Beach operation.

PROJECT SPOTLIGHT “This is   JUST THE BEGINNING   for underwater unmanned systems. This has the potential to   CREATE THOUSANDS OF JOBS   for HII as well as attract suppliers wanting to relocate or create new entities within the 757 region. I feel like our decision to venture into the unmanned underwater business is what it must felt like in the mid-20th century when our business leaders decided to invest in a little know technology called nuclear energy. Look how   THAT ONE DECISION TRANSFORMED  not only HII and our surrounding communities, but   THE NAVY, OUR NATION, AND THE WORLD.” BILL ERMATINGER, BOARD MEMBER, HAMPTON ROADS ALLIANCE; EXEC. VICE PRESIDENT, HUNTINGTON INGALLS INDUSTRIES

2020 ANNUAL REPORT 23


REDEPLOYING OUR RESOURCES The Alliance has recognized the importance for economic development organizations to have deep knowledge of the key industries within their geographies. By having a more comprehensive understanding of the region’s key industries, Alliance staff will be better able to serve both existing businesses and prospect companies. The region’s key industries include distribution and logistics, advanced manufacturing, transportation technologies, offshore wind, food and beverage processing, business and shared services, and information technology. The Alliance has realigned its staff to focus on specific industries, rather than separating business recruitment activities from business retention and expansion functions. Business Development team members will each be responsible for working projects within their assigned industries, while also building relationships with anchor institutions and existing businesses within those industries. To help deepen its knowledge of some of these industries, the Alliance has commissioned a number of studies over the past year. These include the Wadley Donovan Gutshaw Consulting office targets study, the PM&P offshore wind strategic plan, and the Mangum Economics economic impact analysis of the Dominion Energy Coastal Virginia Offshore Wind project. This body of work will increase industry knowledge for both Alliance and local economic development staff and provide insight on how to best support and attract businesses within these targeted sectors. The Alliance has also enlisted local economic developers to help guide business retention and expansion efforts, including brainstorming pilot project ideas, exploring best practices for regional BRE efforts, discussing ways in which the Alliance can add value to local BRE efforts, and providing guidance and feedback on the development of an online BRE survey tool. The Alliance team will begin using the new BRE tool in early 2021 and will continue to engage with local economic developers to determine how and when to deploy the tool locally. Special thanks to economic development representatives from Franklin Southampton Economic Development, Inc., Hampton, Isle of Wight, and Norfolk for their commitment to this effort and for their valuable insights and input.

24 HAMPTON ROADS ALLIANCE


INDUSTRY SPOTLIGHT: CORPORATE OFFICE ATTRACTION PROJECT In 2020, the Alliance engaged site selection firm Wadley Donovan Gutshaw Consulting (WDGC) to assess the locational resources of Hampton Roads for corporate office entities. The study was conducted to increase the Alliance’s pipeline of office projects to bring high-skill, high-paying jobs to the 757. Over a six-month period, WDGC examined a variety of regional attributes including talent pool, population and workforce characteristics, college and university programs, access to air travel, business climate, salary levels, competitive employment demand and office market supply and cost. The project’s final deliverables were the recommendation of four primary office sectors along with a business case demonstrating why Hampton Roads is an attractive location for each identified target niche. The study’s underlying objective was to make recommendations that are applicable across the region and are also absent from the radar of the regions with which the 757 typically competes. Over the course of their research, WDGC identified “stand-out” attributes of the Hampton Roads region that bode well for attraction of corporate office projects. Some of these key regional strengths include favorable median age and growth in prime working age cohorts, exceptional talent concentration in growing technology segments, experienced talent available at competitive costs, housing affordability, ease of commute, relatively favorable personal tax burden, and a dynamic commercial real estate market. WDGC ultimately recommended the following office segment targets: financial transaction processing, health care back office, inside sales, and logistics centers of excellence. In addition to the office targets, WDGC also recommended targeting companies in three technology clusters: environmental sustainability / coastal resiliency, maritime data analytics, and unmanned systems. In early 2021, WDGC will produce white papers for each of the identified office segment targets, and the findings will be used to guide the Alliance’s marketing and business attractions efforts.

2020 ANNUAL REPORT 25


OFFSHORE WIND OPPORTUNITY ON THE HORIZON

Dominion Energy’s first two wind turbines in the Coastal Virginia Offshore Wind project, located 27 miles off the coast of Virginia Beach.

26 HAMPTON ROADS ALLIANCE


WHY OFFSHORE WIND? The Alliance, the Commonwealth of Virginia, and many other partners are “all in for offshore wind.” As explained by Governor Ralph Northam, “…we are building a new industry that will bring thousands of clean energy jobs to our Commonwealth and grow our economy—all while protecting our environment.” For Virginia, offshore wind offers a generational opportunity. Offshore wind energy is a rapidly growing global industry with vast potential in the U.S. In fact, the U.S. is forecast to be one of the fastest growing and largest offshore wind markets in the world. Right now, over twenty projects totaling about 30 gigawatts of electricity production are in various stages of planning or development on the East Coast. That is more than all currently installed capacity in the world. These projects will require billions of dollars of investment, thousands of highly trained workers, and the growth of a domestic supply chain to support their development. This is all good news for Hampton Roads, home to the world’s greatest harbor and the nation’s largest and most skilled maritime workforce. These assets, along with the region’s strategic Mid-Atlantic location and probusiness climate, offer the offshore wind industry the ideal platform to build a supply chain consisting of fabrication facilities, marine terminals, specialized vessels, skilled labor, and a host of services to support the operation of an offshore wind farm over its lifespan. In many ways, Virginia is already a leader in offshore wind. Dominion Energy’s Coastal Virginia Offshore Wind (CVOW) pilot project is one of only two operational projects in the U.S. The second phase of the CVOW project, which will provide enough renewable energy to power 660,000 homes, is set to begin construction in 2024 and will be the largest offshore wind farm in the country. Development of the CVOW projects is an important factor in driving offshore wind companies to consider investing in Hampton Roads. Virginia is also leading the way in other areas, including workforce development and regional collaboration, two important factors for companies considering supply chain investments. Workforce talent is the region’s most valuable economic resource, and the newly established Mid-Atlantic Wind Training Alliance will create a pipeline of the skilled workforce necessary to attract investment and grow local businesses though the offshore wind industry. Virginia has also partnered with Maryland and North Carolina to pursue development of a multi-state supply chain cluster to advance offshore wind projects and to promote the Southeast and Mid-Atlantic as a hub for offshore wind energy and industry.

POTENTIAL ECONOMIC IMPACT OF OFFSHORE WIND INDUSTRY $100 BILLION

EAST COAST OFFSHORE WIND MARKET

5,200

JOBS CREATED

$740 MILLION IN ECONOMIC ACTIVITY

Once East Coast offshore wind activity reaches maturity, Virginia may see these job and capital investment levels according to a study by Mangum Economics.   To read the complete study, please visit hamptonroadsalliance. com/offshorewind.

2020 ANNUAL REPORT 27


AN EMERGING INDUSTRY With the offshore wind industry set to take off on the East Coast, leaders in Hampton Roads realized the importance of acting quickly to capitalize on the opportunity. They also realized that success in attracting offshore wind supply chain investment to Virginia would require a coordinated effort. With a mission to work collaboratively and aggressively to grow the region’s economy, the Alliance was the obvious choice to lead the effort. Supported by local, regional, and state partners, the Alliance applied for and was awarded a GO Virginia grant to begin a dedicated offshore wind supply chain development initiative. The grant provides $529,788 to fund the first two years of work. Activities supported by the grant are focused on both attracting new investment to the region and connecting local businesses to opportunities in the supply chain. The initiative is led by Chief Strategy Officer, Nicole Ryf, and is staffed by two Alliance team members fully dedicated to growing the offshore wind industry in Hampton Roads. Matt Smith is the Director of Offshore Wind Business Development and Carmon Schietzelt is the Offshore Wind Marketing Specialist. The Alliance offshore wind team is working on a variety of activities to establish Hampton Roads as the premier East Coast supply chain hub for offshore wind. These activities include marketing the region and Commonwealth to the offshore wind industry, hosting business prospect meetings with offshore wind companies, and making sure that Virginia businesses are connected to supply chain opportunities.

28 HAMPTON ROADS ALLIANCE

Alliance Director of Offshore Wind, Matt Smith, tours Dominion Energy’s first two wind turbines off the coast of Virginia Beach.


“OFFSHORE WIND REPRESENTS A ONCE IN A GENERATION OPPORTUNITY TO BRING AN ENTIRELY NEW INDUSTRY TO THE REGION.” — JIM SPORE, PRESIDENT/CEO, REINVENT HAMPTON ROADS

“AS OFFSHORE WIND ENERGY PRODUCTION AND ITS SUPPORTING SUPPLY CHAIN BEGIN TO TAKE FOOTING ALONG THE U.S. EAST COAST, THE HAMPTON ROADS HARBOR AND THE EXISTING MARITIME CLUSTER IS POISED TO BE A KEY HUB IN THIS EMERGING INDUSTRY.” — JOHN F. REINHART, CEO AND EXECUTIVE DIRECTOR VIRGINIA PORT AUTHORITY

“VIRGINIA IS POSITIONED TO BE A LEADER IN THE OFFSHORE WIND ENERGY INDUSTRY, AND WE ARE EXCITED TO PARTNER WITH THE HAMPTON ROADS ALLIANCE, DHCD AND DMME ON THESE INITIATIVES TO EXPAND VIRGINIA’S OFFSHORE WIND SUPPLY CHAIN. IT IS THROUGH COLLABORATION AMONG STATE, LOCAL AND REGIONAL ORGANIZATIONS THAT WE CAN RECRUIT NEW BUSINESS, GROWING THIS INDUSTRY AND CREATING ECONOMIC OPPORTUNITY IN THE HAMPTON ROADS REGION AND THROUGHOUT THE COMMONWEALTH.” — STEPHEN MORET, PRESIDENT & CEO VIRGNIA ECONOMIC DEVELOPMENT PARTNERSHIP


CREATING AN EAST COAST HUB FOR OFFSHORE WIND While the development of an offshore wind supply chain hub will take time, several key projects that are foundational to the effort were completed in 2020. With consulting partner PM&P, the Alliance developed a business attraction plan that provides both strategic guidance and tactical direction to the region’s supply chain development activities. The plan is based on a deep analysis of the offshore wind industry. It identifies industry sectors in which the region can be most competitive, specific value propositions provided by the region, and investment scenarios for each sector. As a result, the Alliance and partners are able to engage industry participants with targeted information and marketing materials that present a compelling case for offshore wind companies to choose Hampton Roads. The Alliance also engaged PM&P to establish a Hampton Roads offshore wind office in Europe, based in Frankfurt, from which relationships will be cultivated with European offshore wind companies. The Alliance commissioned and released an economic analysis, conducted by Mangum Economics, of the impact that Dominion Energy’s CVOW project will have on the state and regional economy, as well as the impact the region can expect from serving the growing U.S. offshore wind industry. The study estimates the construction of the CVOW project will generate 900 jobs through 2026 and support 1,100 jobs annually over the operational life of the project. Many jobs directly created by the project will be in the engineering, wind technology, marine maintenance, and logistics industries. The project is also projected to generate more than $209 million in economic activity, and nearly $6 million in local tax revenue for the region. While Dominion Energy’s CVOW project positions Virginia as an early leader in the offshore wind industry, the project is only part of the total development that is being planned along the East Coast. Mangum Economics also estimates that as the overall industry grows over the next decade, an additional 5,200 jobs can be created in the Commonwealth. The majority of these jobs will be in Hampton Roads, and the total anticipated economic activity is $740 million. The Alliance is also partnering with Dominion Energy on a series of educational events to help existing Virginia businesses learn about how to become part of the supply chain. The first set of events took place in December 2020, with five virtual events targeting different regions of the state. The programs provided an introduction to the offshore wind business opportunity and outlined key considerations for businesses to prepare themselves to be part of the Dominion project. The Hampton Roads Alliance was a co-sponsor of all five events alongside Dominion Energy, and the Hampton Roads event was the most well-attended by far, with nearly 200 participants. In 2020, the Alliance, in collaboration with its partners, laid the foundation to become the premier offshore wind hub in the Mid-Atlantic and potentially the United States. In 2021 and beyond, the Alliance will continue to lead efforts to attract offshore wind companies to invest in the region, while also helping Virginia businesses tap into supply chain opportunities. Key activities in 2021 will include implementing the PM&P strategic plan for business recruitment, planning and executing marketing missions and targeted advertising activities, and providing ongoing training for existing Virginia businesses to prepare to become part of the supply chain.

30 HAMPTON ROADS ALLIANCE

Pictured above is the virtual meeting space for the Alliance’s and Dominion Energy’s Supplier Readiness series. The space included live presentations, videos, maps, educational handouts and more.


BENEATH THE WAVES OF AN OFFSHORE WIND TURBINE Illustration compliments of Dominion Energy and Tetra Tech

VIRGINIA’S OFFSHORE WIND PARTNERS

2020 ANNUAL REPORT 31


BUSINESS INTELLIGENCE CHARTING THE COURSE

32 HAMPTON ROADS ALLIANCE


DATA-DRIVEN SUPPORT The Business Intelligence Department serves as the nexus of information and analysis at the Alliance. The team, headed by Steve Harrison, Vice President, with support from Jonathan Holman, Director, research what makes the business environment of Hampton Roads ideal for companies. They evaluate these advantages through the lens of the Alliance’s target industry sectors and disseminate it via a wide variety of platforms. Prospective companies receive a customized report answering all questions they may have related to doing business in Hampton Roads, while existing companies considering expansion are provided with real estate data, demographics, and workforce data that is critical to their future growth. In addition, investors, both public and private, call on Alliance Business Intelligence to assist in answering a wide variety of questions about the region. With access to industry leading software, the team can provide customized demographic reports, maps, real estate site searches, and workforce development information. A critical component of the department’s work is coordinating with the Alliance’s locality partners, thus ensuring that all 11 localities and the Alliance are providing a unified, cohesive set of information about the region. In 2020, the department responded to more than 100 requests for assistance from these partners, ranging from requests for real estate searches to in-depth analyses on target industry clusters and the economic impact of business expansions.

2020 REGIONAL INDUSTRIES SPOTLIGHT LARGEST INDUSTRY:

HEALTHCARE

LARGEST OCCUPATION:

OFFICE & ADMINISTRATIVE SUPPORT

FASTEST GROWING INDUSTRY:

HEALTHCARE

REGIONAL DEMOGRAPHIC INDICATORS

394,478

498,105

Hampton Roads has 394,478 millennials (ages 25-39). The national average for an area this size is 364,729.

Retirement risk is about average in Hampton Roads. The national average for an area this size is 520,094 people 55+, while the 757 has a comparable 498,105 in that age cohort.

TOP INDUSTRY GROSS REGIONAL PRODUCT:

MANUFACTURING

FASTEST GROWING WORKFORCE:

BUSINESS & FINANCIAL OPERATIONS

210,818 Hampton Roads has 210,818 veterans, more than twice the national average for an area this size, which is 100,482.

797,961 Racial diversity is above average in Hampton Roads. The national average for an area this size is 705,605 racially diverse people compared to 797,961 locally.

Source: EMSI 2020. Note: Does not include government. 2020 ANNUAL REPORT 33


CROSS BOUNDARY COLLABORATION The Alliance was fortunate to be part of four GO Virginia grants in 2020, totaling more than $1.8 million. These grants have been instrumental in helping the Alliance broaden its efforts to diversify the regional economy and support economic recovery efforts. As discussed earlier in this report, $529,788 in GO Virginia grant funds are being used to support the offshore wind supply chain hub development initiative, and $100,000 is being used to fund the 757 Recovery & Resilience Action Framework. Additionally, the Alliance was awarded $73,000 to fund a robotics hub study, as described to the right. The Hampton Roads Planning District Commission (HRPDC) was awarded $1.1 million for a site readiness program, and the Alliance was integral in the development of that application, also described on the right.

ROBOTICS HUB GRANT On behalf of the cities of Norfolk, Hampton, and Newport News, and in collaboration with SVT Robotics, the Alliance has been approved for $73,000 for a GO Virginia Enhanced Capacity Building Grant. This grant will fund the development of a feasibility analysis and action plan for a Regional Robotics Innovation Hub in Hampton Roads. The ultimate goal of the action plan is to accelerate and interconnect technology innovation in robotics, machine learning, advanced manufacturing, virtual reality, and artificial intelligence in Hampton Roads to advance autonomous systems research and development, manufacturing, digital shipbuilding and repair, distribution and logistics, water technologies, modeling and simulation, and other target industries. Working with an outside consultant, the planning grant team hopes to complete this work within a nine-month period.

The Alliance’s success in securing GO Virginia grant funding is largely due to the organization’s close relationship with Reinvent Hampton Roads (Reinvent), the administrative support organization for GO Virginia Region Five. Strong communication between Reinvent, the Alliance, and other regional peer groups has ensured these organizations are well-informed of GO Virginia grant funding opportunities and have the technical support from Reinvent necessary to navigate the grant application and administrative processes.

REGIONAL COLLABORATION SPOTLIGHT 34 HAMPTON ROADS ALLIANCE

EASTERN VIRGINIA REGIONAL INDUSTRIAL FACILITY AUTHORITY (EVRIFA) Formed through a grant from GO Virginia in 2018, ten jurisdictions, including Chesapeake, Franklin, Hampton, Isle of Wight, Newport News, and Poquoson, formed an authority to invest in regionally significant projects and share revenues across local boundaries. This year the Authority voted to acquire a 432-acre tract of land from the Commonwealth and share associated revenues from a solar farm and other developments that will occur on the site.


GO VIRGINIA Tech Center Research Park

Newport News

Poquoson

BUSINESS READY SITES GRANT RECIPIENTS

Hampton

Isle of Wight

Shirley T. Holland Intermodal Park

Norfolk Portsmouth

Southampton

Virginia Beach

Virginia Beach Innovation Park

Suffolk Chesapeake Franklin

SITE READINESS A study commissioned during Virginia’s successful bid for Amazon’s second headquarters location concluded that a main reason Virginia is overlooked for major projects is a lack of sites that can be ready to host large businesses within a short window of time. Hampton Roads leaders reacted to this news quickly and began to evaluate and rank available sites that are at varying stages of site readiness. Alliance Business Intelligence, in cooperation with the Virginia Economic Development Partnership (VEDP), the Hampton Roads Planning District Commission (HRPDC), and locality partners, performed an extensive analysis on large industrial sites in the region. VEDP also identified 72 sites in Hampton Roads that qualify as large (25+ acres) to evaluate and rank according to developability and site suitability. The Alliance worked closely with HRPDC, VEDP, and local economic developers to determine which sites were best positioned to

secure grant funding from GO Virginia and quickly be elevated to a top tier developability status. Based upon the criteria laid out by GO Virginia, the top three sites for development were the Innovation Park in Virginia Beach, Shirley T. Holland Intermodal Park in Isle of Wight County, and the Tech Center Research Park in Newport News. HRPDC submitted a grant on the region’s behalf requesting $1.1 million to complete the due diligence and associated upgrades for these sites, which was officially awarded to the region by the GO Virginia board in November. Advancing these three sites to “business ready” status is not only critical to attracting new large companies to Hampton Roads, but also for retaining existing businesses that are seeking prime real estate to meet their expansion needs. The Alliance and its partners plan to pursue additional funding avenues to ensure that more sites can be certified as “business ready” in the coming years.

2020 ANNUAL REPORT 35


INVESTOR RELATIONS A RISING TIDE LIFTS ALL BOATS 36 HAMPTON ROADS ALLIANCE

Hampton Roads Alliance Annual Meeting January 2020


CONNECTING THROUGH THE DIGITAL DIVIDE Given the many challenges created by the pandemic, the Alliance knew it would need to rethink its communication strategy to ensure investors were updated on organizational progress in a timely fashion. In addition to increasing its social media and digital communication activities, the Alliance sought new avenues to connect with investors through virtual events. Prior to the shutdown, the Alliance hosted two in-person events, an Annual Meeting and a reception with Israeli defense-related business leaders. In March, all events adjusted to a virtual format for the remainder of the year. Throughout the summer and fall, the Alliance partnered with investor Williams Mullen on three of their Business Solution Series webinars, all focused on COVID-19 recovery and resiliency topics. The Alliance also collaborated with Old Dominion University on a virtual panel discussion titled “Growing the 757.” Moderated by ODU’s Nancy Grden MRP, MBA, this lunchtime discussion featured three Alliance staff as panelists. The panel was well attended with over 100 attendees, many of whom engaged in a lively discussion via the chat box. In July, the Alliance released its first Mid-Year Report detailing the new brand launch, COVID-19 recovery efforts, project announcements, and the efforts taken to establish a regional and European offshore wind office. Investors received periodic email and video updates directly from Alliance President & CEO, Doug Smith, throughout the year with plans to continue this direct correspondence in 2021. The composition of the Alliance Board of Directors transformed in 2020; a board of 30+ was reduced to 13 directors consisting of seven private, six Mayor/County Chairs and six ex-officio representatives. The reduced board size has allowed for more efficiency and streamlined the decision-making process. As importantly, this smaller board can have substantive strategic discussions each month and provide the organization with valuable direction. To increase transparency, the Alliance began sharing a copy of the monthly board meeting agenda with investors. As business continues to adapt to a world that has been significantly impacted by the pandemic, the Alliance’s communication strategy is primed to continually evolve by providing real time updates through social media posts, quarterly newsletters, and investor-only virtual events on regional priorities.

2020 ANNUAL REPORT 37


2020 PRIVATE INVESTORS PREMIER ($100,000+)

38 HAMPTON ROADS ALLIANCE

PLATINUM ($50,000+)


GOLD ($25,000+)

SILVER ($10,000+)

BRONZE ($5,000+)

Atlantic Union Bank

Aerotek, Inc.

Bank of America

Atlantic Dominion Distributors Birdsong Peanuts

BB&T

The Breeden Company

Bon Secours Health System

Canon Virginia, Inc.

Chartway Federal Credit Union Children’s Hospital of the King’s Daughters Clancy & Theys Construction

Capital Concrete, Inc. Chesapeake Regional Healthcare Columbia Gas of Virginia Drucker + Falk, LLC Harbor Group International, LLC

Damuth Trane

Harvey Lindsay Commercial Real Estate

Dollar Bank

Hourgian Construction

Kaufman & Canoles

Jones Lang LaSalle KPMG LLP

MEB General Contractors

The Lee Group

Norfolk State University

McGuire Woods LLP

PBMares

Norfolk Airport Authority Norfolk Waterside Marriott

Runnymede Corporation

Old Point Financial Corporation

Southern Bank

Palladium Partners

Tidewater Community College

Plasser American Corporation PNC Bank

Timmons Group

Riverside Health System

Vandeventer Black

Thomas Nelson Community College

Willcox Savage

Venture Realty Group Williams Mullen

2020 ANNUAL REPORT 39


“I appreciated the opportunity to be featured at the Alliance’s   INVESTOR UPDATE: Transforming Healthcare: The Sentara and Cone Health Merger. This event provided a great opportunity to   SPEAK CANDIDLY  about how this upcoming affiliation will benefit the community, and about the role that anchor organizations like Sentara play in the   ECONOMIC SUSTAINABILITY  of Hampton Roads.   EVENTS LIKE THESE PROVIDE VALUABLE INSIGHT ABOUT HOW WE, AS BUSINESS LEADERS, ARE SHAPING THE FUTURE OF OUR REGION.” HOWARD P. KERN, VICE CHAIR, HAMPTON ROADS ALLIANCE PRESIDENT AND CEO, SENTARA HEALTHCARE

To adapt to the restrictions imposed by the pandemic, the Alliance moved all meetings and events to virtual platforms beginning in March 2020. To stay engaged with investors and the community at large, the Alliance increased its social media presence and e-communication frequency, created the 757Recovery.com website, and hosted business resource webinars and panel discussion with investors. The Alliance also hosted three investor-only briefings on the topics of broadband, healthcare, and coastal resilience. BROADBAND IN HAMPTON ROADS SEPTEMBER 2020 Broadband in Hampton Roads featured a behind-the-scenes peek at the newly formed Southside Network Authority which is creating the first-ever regional broadband ring in Hampton Roads. Moderated by Bob Crum, Executive Director of the Hampton Roads Planning District Commission, the panel featured: Steve DeBerry, Executive Director of the Authority; Susan Vitale, Authority Chair; Andria McClellan, Authority Vice Chair; and Mark Klett, Klett Consulting. TRANSFORMING HEALTHCARE: SENTARA HEALTHCARE AND CONE HEALTH MERGER OCTOBER 2020 Transforming Healthcare: Sentara Healthcare and Cone Health Merger featured an intimate discussion between Alliance Vice Chair and Sentara Healthcare President and CEO, Howard Kern, and one of Hampton Roads’ most veteran media professionals, Cathy Lewis. The merger between Sentara Healthcare and Cone Health will create a 17-hospital, $11.5 billion system, positioning the organizations to effectively tackle the two toughest challenges facing healthcare systems: increasing access and affordability.

Pictured above are Alliance staff and panelists from the virtual Investor Update event: A Panel Discussion with Retired Rear Admiral Ann Phillips on the Virginia Coastal Resilience Master Planning Framework.

40 HAMPTON ROADS ALLIANCE

A PANEL DISCUSSION WITH RETIRED REAR ADMIRAL ANN PHILLIPS ON THE VIRGINIA COASTAL RESILIENCE MASTER PLANNING FRAMEWORK DECEMBER 2020 In December, Retired Rear Admiral Ann Phillips discussed how the Virginia Coastal Resilience Master Planning Framework establishes the actions the Commonwealth will pursue to create a more resilient coastal region. Three other Hampton Roads leaders championing this cause — Chris Stone, Clark Nexsen; Skip Stiles, Wetlands Watch; and David White, Virginia Maritime Association and Hampton Roads Shipping Association — joined Phillips for a panel discussion following her presentation and shared with the local business community how to participate in building a more sustainable coastal economy.


INVESTORS SPOTLIGHT

Despite the challenges this year brought, our private investors found many reasons to celebrate and worked diligently to keep the community safer, healthier and stronger than before. Check out a few news headlines of their efforts from the year below!

Sentara to offer free coronavirus testing to minority populations • TowneBank to match donations for virtual learning support efforts • ECPI Univeristy awards $4 million in scholarships to African-American students • Canon VA partners with NCI to manufacture face shields • Groups including Chesapeake Regional Healthcare collaborate to provide free COVID-19 testing • Newport News Shipbuilding set to hire thousands by end of 2020 • Hampton Roads Community Foundation offers “vibrant places” funding as well as seed and program funding during the pandemic • Timmons Group is now delivering virtual learning courses • Cox Communications commits $60M to help those who need quality internet access during pandemic • Hampton Roads Workforce Council provides support for job seekers during COVID-19 • The Miller Group awarded Best Multi-Family Commercial Housing Project by HRACRE • Tidewater Community College and Norfolk State working to address racial inequality • Old Dominion University is one of 12 U.S. institutions and only Virginia university recognized for reducing inequality • Riverside Health System uses UV robot to disinfect N95 masks • Bank of America announces a $1 billion, four-year commitment to help racial inequality • Langley for Families distributes $76K to Hampton Roads organizations for COVID-19 relief • S.B. Ballard recognized as ABC STEP Diamond 2020 Safety Leader • Virginia Natural Gas increases supplier diversity spending to help more minorityowned businesses • EVMS, CHKD and public health officials provide live COVID-19 update through social media • Dollar Tree offers its employees a premium for working during COVID • Ferguson completes construction of 260,000 sq. ft. HQ3 in Newport News City Center • Virginia Maritime Association celebrates 100th anniversary • Port of Virginia prioritizing coronavirus-related cargo by processing shipments of COVID-19 test kits and protective gear with special urgency • Dominion Energy pledges $25,000,000 over a six-year period to support 11 historically black colleges and universities • Truist donates $40 Million to launch innovative nonprofit fund supporting ethnically, racially diverse and women-owned small businesses • W. M. Jordan Executive Chairman John Lawson inducted into the National Academy of Construction • Bon Secours hospitals to use plasma from recovered patients to treat COVID-19 • United Way of South Hampton Roads receives more than $800K from corporations, including Damuth Trane, Wells Fargo, KPMG, and more for its Coronavirus Recovery Fund • Clancy & Theys Construction donate N95 masks to UNC • Vandeventer Black ranked in the 2021 U.S. News & World Report’s “Best Law Firms” • Branscome announces new corporate location in Virginia Beach


DIVERSITY, EQUITY & INCLUSION HAMPTON ROADS: A 21ST CENTURY SAFE HARBOR

42 HAMPTON ROADS ALLIANCE


BUILDING A MORE DIVERSE, EQUITABLE AND INCLUSIVE ECONOMY The name Hampton Roads is derived from a nautical term meaning ‘safe harbor,’ where ships can anchor without fear of rip currents or rising tides. This term has come to mean much more than a safe sailing environment for the region; it represents the notion that all who come to this place are a part of its story and will feel welcome as they live, work, and play. United by the belief that businesses and the region are stronger through greater racial equity, the Hampton Roads Alliance established a regional coalition through the 757 Recovery & Resilience Action Framework to develop an economic recovery plan that is diverse, equitable and inclusive for all. To help fulfill these goals, the Alliance hired Latisha James to serve as a consultant and develop an economic inclusion strategy focusing on four priority areas: Workforce Diversity, Board Diversity, Supplier Diversity and Corporate Social Responsibility. Latisha helped facilitate three Diversity, Equity and Inclusion Workshops to assess the Alliance’s own culture and to provide recommendations for ways to highlight diversity on the staff and board level. She also engaged Alliance investors, board members and other Hampton Roads stakeholders, and researched best practices in economic inclusion across the nation. Ultimately, Latisha recommended that the Alliance and its investors establish a Corporate Social Responsibility (CSR) program to fulfill the economic inclusion goals for the region and its businesses. CSR is a continuing commitment by businesses to contribute to economic development while improving the quality of life of the workforce, community, and society at large. Businesses that engage in CSR take stock of the way they operate in society and in the community by addressing cultural and social issues, with the aim of benefiting both in the process. Not only can CSR models increase business revenue, but they also promote change and progress, which often involves helping people with few or no resources. Many Alliance investors, such as Huntington Ingalls Industries, the Port of Virginia, Ferguson Enterprises and Dominion Energy are leaders in this work. They position their Diversity, Equity and Inclusion programs as supporting CSR pillars and execute it through a variety of actions, including: establishing supplier diversity program to invest with local and regional minority and women owned businesses; strengthening their workforce and board diversity practices and policies; and, investing in historically underinvested communities and organizations. Thanks to Latisha’s work, equity and inclusion is positioned as a critical component of the 757 Recovery & Resilience Action Framework. In order to fulfill these goals, the Alliance will encourage Hampton Roads’ companies to adopt a CSR model that will not only help them achieve their economic inclusion goals, but will also help the Hampton Roads region truly be viewed as a ‘safe harbor’ for all. 2020 ANNUAL REPORT 43


GOVERNANCE & OPERATIONS ALL HANDS ON DECK The Alliance Board of Directors is comprised of six mayors/county chairs, seven private CEOs/executives, and six ex-officio directors and meets monthly to provide strategic direction and guidance to the organization. Similarly, the Alliance’s Regional Economic Development (RED) Team is comprised of one representative from each member locality and several regional partners. The RED Team meets on a monthly basis to review the Alliance’s activities, learn from industry experts, and work collaboratively to solve regional issues. The Alliance extends its sincerest gratitude to the following individuals for their service to the organization and 757 region at-large.

44 HAMPTON ROADS ALLIANCE


2020 BOARD OF DIRECTORS

*Executive Committee members Officers designated by title

PUBLIC SECTOR REPRESENTATIVES

PRIVATE SECTOR REPRESENTATIVES

EX OFFICIO

City of Chesapeake

Cox Communications Virginia

City of Hampton

City of Hampton

ECPI University

Hampton Roads Alliance

City of Newport News

Ferguson Enterprises

City of Norfolk

Huntington Ingalls Industries

City of Virginia Beach

Port of Virginia

City of Suffolk

Sentara Healthcare

Honorable Richard W. West Honorable Donnie R. Tuck Honorable McKinley L. Price, DDS Honorable Kenneth C. Alexander, Ph.D. Honorable Robert M. Dyer Honorable Linda T. Johnson At Large Public Sector Representative

Mr. J.D. Myers, II

Mr. Mark B. Dreyfus, Treasurer* Mr. Keith VanderVennet Mr. Bill Ermatinger Ms. Cathie J. Vick

Ms. Mary Bunting, CAO Chair Mr. Douglas L. Smith, Secretary* Non-Voting

Hampton Roads Workforce Council Mr. Shawn Avery

City of Portsmouth

Mr. Robert D. Moore, RED Team Chair*

Reinvent Hampton Roads Mr. James K. Spore

Mr. Howard P. Kern, Vice Chair*

Willcox Savage

TowneBank

Non-Voting

Mr. Brian K. Skinner, Chair*

Mr. Hugh L. Patterson, General Counsel*

Williams Mullen

Mr. C. Grigsby Scifres, Past Chair*

RED TEAM LOCALITIES

Chesapeake Economic Development Mr. Steven Wright

Franklin Southampton Economic Development, Inc. Mr. Jay Brenchick

Hampton Economic Development Mr. Chuck Rigney

Isle of Wight County Economic Development Mr. Chris Morello

Newport News Department of Development Ms. Florence Kingston

UTILITIES AND REGIONAL PARTNERS

Norfolk Department of Economic Development Mr. Jared Chalk

Poquoson Department of Economic Development Ms. Charity Gavaza

Dominion Energy

Mr. Max Bartholomew

Hampton Roads Military & Federal Facilities Alliance Mr. Craig Quigley

Portsmouth Economic Development

Hampton Roads Planning District Commission

Suffolk Economic Development

Hampton Roads Workforce Council

Virginia Beach Economic Development

Port of Virginia

Mr. Robert Moore Mr. Kevin Hughes

Mr. Taylor Adams

Mr. Bob Crum

Mr. Steve Cook

Mr. Russell Held

Reinvent Hampton Roads Mr. Jim Spore

In addition, representatives from James City County, York County, the City of Williamsburg and Greater Williamsburg Partnership are invited to join monthly RED Team meetings.

Virginia Natural Gas Mr. George Faatz

2020 ANNUAL REPORT 45


FINANCIALS The Alliance’s 2020 budget was augmented by three GO Virginia grants totaling $233,000 for the current fiscal year, and a PPP loan which has since been forgiven.

SUPPORT

& REVENUE

2020 Budget

2020 Actual as of Nov. 30

2021 Budget

Corporate Investment Corporate Investment New Corporate Investment

$1,733,500 $254,000

$1,238,500 $130,000

$1,785,000 $0

Municipal Investment Municipal Investment

$1,659,334

$1,303,318

$1,774,996

Other Income Offshore Wind Grant Go VA Grant - 757 Recovery Robotics Planning Grant Annual Meeting Interest Miscellaneous

Total Support & Revenue EXPENSES

Marketing Business Intelligence Investor Relations Administration Business Development 757 Recovery

Total Expenses Excess of Revenue over Operating Expense

46 HAMPTON ROADS ALLIANCE

BUDGET BREAKDOWN* 9%

Corporate Investment 47%

$0 $0 $0 $5,000 $10,000 $0

$133,000 $100,000 $0 $6,945 $9,864 $10,740

$275,000 $0 $103,000 $0 $3,000 $0

$3,661,834

$2,932,367

$3,940,996

2020 Actual as of Nov. 30

2021 Budget

$850,925 $488,737 $293,980 $309,875 $1,624,185 $0

$416,115 $451,665 $184,839 $303,237 $963,657 $280,816

$775,176 $558,236 $290,847 $347,629 $1,617,582 $100,000

$3,567,007

$2,599,816

$3,689,470

$94,827

$332,551

$251,526

2020 Budget

44%

Municipal Investment Other Income

11%

16%

Marketing Business Intelligence 17%

37%

Investor Relations Administration

7% 12%

*Based on Nov. 30 Actual

Business Development 757 Recovery


Despite the challenges presented by 2020, the Alliance continued to expand its programs and services, thereby necessitating exciting additions to an already stellar team. Over the course of the year, the team grew to include the organization’s first Chief Strategy Officer and a Vice President of Business Retention and Expansion, as well as a Business Development Director and a Marketing Specialist focused specifically on offshore wind. While most of 2020 was spent working virtually, new staff members were warmly welcomed by their team members, who went above and beyond to ensure everyone felt connected and supported. The lack of in-person interaction never slowed the Alliance team’s ability to effectively collaborate, innovate, and serve the region together.

First column (top to bottom): Doug Smith, President & CEO

Second Column: Nicole Ryf, Chief Strategy Officer

Amy Jordan, Vice President, Business Development

Toi Hunter, Vice President, Business Retention & Expansion

Jonathan Holman, Director, Business Intelligence

Angela Parsons, Director, Operations Carmon Schietzelt, Specialist, Offshore Wind, Marketing & Communications

Third Column: Amy Parkhurst, Senior Vice President, Business Development Jillian Goodwin, Director, Marketing & Communications Matt Smith, Director, Offshore Wind, Business Development Kirsten Chandler, Intern, Business Intelligence

ALLIANCE STAFF

Fourth Column: Steve Harrison, Vice President, Business Intelligence & Communications Alisa Crider, Director, Investor & Public Relations Adelaide Gilmore, Senior Administrative Specialist

2020 ANNUAL REPORT 47


A YEAR TO REMEMBER

First column: Amy Jordan’s daughter, Alexis, and cat, Joy

Second column: Steve Harrison’s dog, Charlie

Jonathan Holman with daughter, Makayla

Angela Parsons’ daughter, Eleanor

Nicole Ryf’s dog, Jackson

Toi Hunter with daughter, Noa

Third column: Carmon Schietzelt with sons, Arthur and Calvin and dog, Atlas Jillian Goodwin’s dogs, Teddy and Benji Amy Parkhurst with cat, Cowboy

48 HAMPTON ROADS ALLIANCE


TOP TALENT SUPPORTING THE ALLIANCE In a year unlike any other, the Alliance was greatly enhanced by the addition of talented individuals to the team, as both interns and consultants. Each year, investor Old Dominion University (ODU) provides four student interns to the Alliance to assist with Business Intelligence and Marketing & Communications. Sanidia Cranston and Maria Eleftheriou worked as interns from January through August. Sanidia was instrumental in researching the Alliance’s target industries, while Maria assisted with the launch of the new Alliance brand and website. Alliance staff enjoyed having them on the team and wish them continued success as they finish their senior years at ODU. This fall, Hannah Brown and David Catchings joined the Alliance as interns and have been a valuable part of the team. Hannah helps the Business Intelligence team respond to multiple requests for information from prospects, while David supports the Alliance in growing its social media presence and helps research and select new promotional items and gifts to promote the new brand. Prior to his marketing internship with the Alliance, David served as an ODU Student Liaison for the 757 Recovery and Resiliency Action Framework committees over the summer. Both Hannah and David will continue to work for the Alliance through Spring 2021. 2020 brought social justice to the forefront of the American experience. In order to ensure the 757 Recovery and Resilience Action Framework is a plan that is diverse, equitable and inclusive for all, the Alliance hired consultant Latisha James to fulfill these goals. Latisha quickly became a part of the Alliance family and provided valuable insight to staff and the board on how equity and inclusion can be inextricably interwoven into corporate cultures.

TINY TEAM MEMBERS AND FURRY FRIENDS One of the silver linings of this year may have been the amount of quality time spent at home with loved ones. For the Alliance team, this meant the addition of a few non-traditional staff members: babies, dogs, and cats. At the end of most staff meetings, Doug would do a roll call for “Staff 2.0” to help bring smiles and joy to the end of the day. While their work product may have been nonexistent, these unconventional counterparts (pictured left) provided the team with countless happy moments throughout the year.

Pictured above: Sanidia Cranston, ODU Student Intern, Business Intelligence Maria Eleftheriou, ODU Student Intern, Marketing & Communications Hannah Brown, ODU Student Intern, Business Intelligence David Catchings, ODU Student Intern, Marketing & Communications Pictured right: Latisha James, Consultant, Diversity, Equity and Inclusion

2020 ANNUAL REPORT 49


LOCALITY SPOTLIGHT

While the Alliance is engaged in a variety of activities across the region, each localitiy has many additional accomplishments to celebrate this year. Here is a sampling of some of the major projects, milestones, awards and accolades that were announced throughout Hampton Roads in 2020.

RETAIL, SMALL BUSINESS & REDEVELOPMENT

NOTABLE MILESTONES

Hubbard Peanut Co. a small, family-owned business known for its highend gourmet products, expanded from its flagship location in Sedley to the former Farm Fresh building in the City of Franklin. The new location, The Hubs Vine, is a modern market offering peanuts, specialty foods, drinks, games and more.

Plasser American Corporation, celebrating 40 years in Chesapeake, announced plans to invest over $53 million to expand their facility, creating 98 new jobs with average annual salaries of $65,000.

Isle of Wight County took an innovative approach to CARES Act funding by using the money to launch the #IsleShopSmall Gift Card Match Program in partnership with the Isle of Wight Chamber. This program allowed shoppers to double their money buying gift certificates from participating local businesses, as all purchases were matched by the county using CARES Act funding. The gift cards sold out in 90 minutes and injected $200,000 into the local economy. Norfolk invited qualified real estate developers to submit their proposals to lead the redevelopment of Military Circle Mall. It is the city’s intent that the mall, its parking lots and parcels be transformed into a mixed-use corporate center with multi-family residential, community-serving retail and other amenities. The City of Norfolk and the Pamunkey Indian Tribe identified a 13.4-acre waterfront location on the banks of the Elizabeth River for a resort casino. The Norfolk Resort Casino will be a significant private investment with no public incentives. The project will result in new and ongoing revenue to the city that will enable much-needed investment in important priorities and will create new short-term and long-term jobs and related workforce development opportunities. Portsmouth citizens approved the Casino Gaming and Entertainment District Referendum with an overwhelming two-thirds approval in November. Portsmouth is partnered with Rush Street Gaming to bring a premium 50acre entertainment district to life. With an initial investment of $300 million and plans for a casino, hotel, entertainment pavilion, and space for 20-30 eateries and shopping experiences, the Portsmouth Entertainment District will have something for everyone to enjoy. Poquoson welcomed two new restaurants to the city. 185 Restaurant opened in February and Captain Harrell’s Seafood House opened in August. 185 Restaurant was listed among the Top 50 Places to Eat in Hampton Roads by YELP. Additionally, the city celebrated the return of the Surf Rider Restaurant which reopened its doors in March after a fire destroyed the former establishment in 2019. The iconic restaurant continues to serve great food with a coastal view and unbeatable sunsets. Virginia Beach launched the HIVE, a small business resource center, this year. The city partnered with Tidewater Community College, Virginia Wesleyan University, the Hampton Roads Workforce Council and others to develop the training programs and additional business resources to provide workforce skills training, resources for COVID impacted business and employees. The space also serves as a temporary location for local business startups and relocations. 50 HAMPTON ROADS ALLIANCE

Franklin Business Center celebrated its 15th anniversary in May. The building first started as a buggy factory in 1907 but has since become an economic engine for the local economy. Its 23 graduates have had a tremendous positive impact on the local and regional business community. The program welcomed eight new businesses as tenants in 2020. Liebherr celebrated 50 years in Newport News with the completion of a $45 million expansion. The new headquarters encompasses 251,000 square feet in three new buildings at its campus. The family-owned company is one of the world’s largest manufacturers of construction machinery and earthmoving equipment. Downtown Suffolk rolled out a new branding initiative in the Fall of 2020. The new logo and tagline showcase Downtown Suffolk as a colorful, vibrant, modern corridor while acknowledging and honoring its deep historical roots. The branding is one portion of the Downtown Master Plan which features a variety of promotional and infrastructure enhancements to promote and attract new business and visitors to the district.

ANNOUNCEMENTS & EXPANSIONS Chesapeake Regional Healthcare announced an $85 million expansion to the main hospital building and the opening of their South Norfolk Pharmacy. The expansion to the hospital’s critical unit tower will provide 94 new beds while the South Norfolk Pharmacy will provide health screening and pharmacy services to an under-served section of Chesapeake. Amazon announced plans to redevelop a former Kmart in Hampton as a new last mile delivery center. The center is expected to employ about 200 full-time workers with a $15 minimum wage and benefits, as well as approximately 200 part-time workers and 400 contact drivers. S23 Holdings, LLC, a marine repair and construction company, is investing $64.4 million to build a corporate and industrial campus in Newport News. The new facility will serve as a repair and fabrication facility supporting ship repair operations. In addition to its investment, S23 and its affiliates, including East Coast Repair and Fabrication, plan to create 332 new jobs. Developments are underway for a new, state of the art community healthcare center in the City of Portsmouth. The facility will serve the region as a healthcare hub, with specific focus on accessibility for the western side of Hampton Roads. Premium-PPE, a Virginia Beach-based maker of disposable face masks and surgical masks announced plans to create 180 jobs and invest $5.3 million to buy equipment that will allow it to produce more personal protective equipment that is in high demand amid the COVID-19 pandemic.


Best Cities for First-Time Homebuyers: VIRGINIA BEACH (3rd) SmartAsset, 2020

Most Affordable Beach Towns in America: HAMPTON (17th) WalletHub, February

Hardest Working Cities in America: VIRGINIA BEACH (3rd) & NORFOLK (6th) WalletHub, February

2020 Greenest Cities: NEWPORT NEWS Insurify Insights, April

Virginia’s 20 Safest Cities of 2020: POQUOSON (12th) & SMITHFIELD (14th) Safewise, July

10 Best Cities to Be Stuck at Home: VIRGINIA BEACH (9th) & CHESAPEAKE (12th) Lawnstarter, August

Virginia’s Hidden Gem Travel Destination: NORFOLK TravelPulse, August

Best Places for Veterans to Live: VIRGINIA BEACH (7th) & CHESAPEAKE (17th) WalletHub, November

2020 Digital Cities: VIRGINIA BEACH & NORFOLK Center for Digital Government, November

Friendliest Cities in America: NORFOLK (#7) Conde Nast Traveler, November

Best Cities for New Year’s: VIRGINIA BEACH (#1) & CHESAPEAKE (#12) WalletHub, December

International Economic Development Council Excellence in Economic Development Awards:

Gold, Neighborhood and Retail Development: STARTUP, FRANKLIN SOUTHAMPTON ECONOMIC DEVELOPMENT, INC. Gold, Resiliency, Recovery, and Mitigation: COVID-19 Business Retention & Recovery Project, NORFOLK


500 E. Main St, Suite 1300 • Norfolk, VA 23510 www.HamptonRoadsAlliance.com

Profile for Hampton Roads Alliance

2020 Annual Report  

The 2020 Annual Report showcases the relaunch of the Alliance as a multifaceted organization, focused not only on business attraction but al...

2020 Annual Report  

The 2020 Annual Report showcases the relaunch of the Alliance as a multifaceted organization, focused not only on business attraction but al...

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