2018 Economic Activity Report

2 01 8 E CO N O MIC AC TIVITY RE PORT

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COME GROW WITH US Economic development remains a top priority for City Council and we are proud to look back on the diverse successes that 2018 brought. Our continued success is rooted in carefully planned strategic growth and investment that helps us maintain a strong financial standard and sound foundation on behalf of our citizens. During the year we saw over $83 million in new private capital investment which impacted 687,000 square feet, creating 1,395 new jobs in our vibrant community.

Linda T. Johnson, Mayor

We continued our focus on Downtown Suffolk and adopted the Downtown Initiatives Master Plan which followed on the heels of the successful “Design Downtown” workshops and overwhelming public input. Our food and beverage cluster exploded with new jobs and projects from companies such as Lipton, Wanchese Fish Company, Smithfield Foods, and The Neighborhood Harvest. New workforce pipeline partnerships were formed between Suffolk industry and Suffolk Public Schools with the launch of the School-to-Work Program. Major mixed-use developments with a focus on placemaking took steps forward.

What an incredible time to experience Suffolk’s opportunities and progress. Consider this your open invitation to COME GROW WITH US.

Suffolk City Council Pictured back (left to right): Timothy J. Johnson, Lue R. Ward, Jr., Roger W. Fawcett, Donald Z. Goldberg; front (left to right): Curtis R. Milteer, Sr., Linda T. Johnson (Mayor), Leroy Bennett (Vice Mayor), Michael D. Duman.

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Suffolk Economic Development Authority Wesley King, Chairman

Branch Lawson

John Clifton Harrell, Jr., Vice Chairman

Michael Milteer

Stacy Lewis, Secretary/Treasurer

Margie Wiley

Maria Herbert

Raymond Wittersheim

Significant economic development achievements over the past year include: ¡¡ Sentara Healthcare - 92,000 SF, $34 million BelleHarbour campus expansion ¡¡ TowneBank - 44,000 SF, $9 million, 2-story, administrative building ¡¡ Cooke Seafood - $2.8 million investment in Wanchese Fish Company ¡¡ Blue Bell Creameries - 14,000 SF distribution facility ¡¡ Lipton Tea - TAZO® Tea blending operation ¡¡ Smithfield Foods - 170 professional jobs

2018 At-A-Glance Capital Investment

Jobs

Square Feet

Food and Beverage Food and and- Beverage Beverage 10% 10% Food -- 10% Warehousing Warehousing Warehousing and Distr - and 12% and Distr Distr -- 12% 12%

Other - 3% Other Other -- 3% 3% Adv Mfg - 2% Adv Mfg Mfg -- 2% 2% Adv HospitalityHospitality Hospitality - 1% 1% -- 1%

Retail - 38%Retail Retail -- 38% 38% Medical - 20% Medical -- 20% 20% Medical

Office - 14%Office Office -- 14% 14%

Warehousing Warehousing Warehousing Food and Beverage Food and and- Beverage Beverage 6% 6% Food -- 6% and Distr and and Distr Distr Other - 0% Other Other -- 0% 0% Adv Mfg - 0% Adv Mfg Mfg -- 0% 0% Adv HospitalityHospitality Hospitality - 0% 0% -- 0% Retail - 42%Retail Retail -- 42% 42% Medical - 21% Medical -- 21% 21% Medical

Food and Food Food and and Beverage - Beverage Beverage 2% 2%- 15%Other -- 2% Other OtherAdv 15% -- 15% Mfg - 17% Adv Mfg Mfg -- 17% 17% Adv HospitalityHospitality Hospitality - 2% 2% -- 2% Warehousing Warehousing Warehousing and Distr - and 5% and Distr Distr -- 5% 5% Medical 9%Medical Medical 9% 9% Office - 11%Office Office -- 11% 11% Retail - 39%Retail Retail -- 39% 39%

Office - 13%Office Office -- 13% 13%

$83.6M+

1,395

687K+

Locally Invested

New Jobs Created

Square Footage Impacted

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92,714 2018 Population

Weldon Cooper Center, UVA, Population Estimate as of 7/1/2018.

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104,400

2025 Projected Population

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GROW Workforce Development Partnership: School-to-Work Program Target’s Upstream Distribution Center and Sysco Hampton Roads have both teamed up with the Career and Technical Education Department from Suffolk Public Schools for a school-to-work partnership that provides select students aged 17-18 with opportunities for career paths in logistics as well as connecting the importance of workplace readiness skills to long-term professional success. The program featured three separate classes and included tours of the facilities to incorporate the Commonwealth‘s Career Readiness Initiative principles. The successful workforce development initiative will continue with other Suffolk schools and business collaborations in the future.

Notably, Target’s Suffolk operations have plausible cause for developing a strong workforce pipeline; in 2018 they once again expanded their workforce, adding 225 employees in order to establish a new packaging department at their upstream distribution center in Suffolk. The Suffolk center services multiple distribution centers and 650 stores along the East Coast and remains poised to respond to changes in logistical strategy and growth in demand for their products.

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W New Office Openings Bring New Career Opportunities TowneBank constructed a brand new 44,201 SF multi-use building at their Suffolk headquarters.

Naval Medical Center Portsmouth hosted a Grand Opening – Ribbon Cutting ceremony to officially open their new 13,000 SF TRICARE Prime Clinic in Harbour View.

Smithfield Foods created 170 sales, logistics, and professional jobs by opening a 20,000 SF office at Bridgeway Technology Center in Suffolk.

Sentara Healthcare recently unveiled the $34 million, 92,000 SF expansion of their BelleHarbour campus.

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GROW Virginia’s Caffeine Capital Brews Up Something New Virginia’s Caffeine Capital has added a familiar name to the region’s beverage repertoire.

Unilever, the parent company of Lipton, has begun blending the über-popular TAZO® Tea at the Suffolk processing facility. This expanded production includes new investment to add receiving and blending equipment, along with hiring 10 additional employees to handle the expanded output. Lipton has a long-standing history in Suffolk, beginning nearly 65 years ago, with the Suffolk operation now the largest tea-processing facility in the U.S. Suffolk companies contributing to the “Virginia’s Caffeine Capital” moniker are Massimo Zanetti Beverage USA, Lipton Tea, J. M. Smucker, Pacorini, Continental Terminals, Crown Cork & Seal, Peet’s Coffee, and ProAmpac. Altogether, the coffee and tea manufacturing industries in Suffolk generate approximately $844 million in output per year.

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W Cooke Seafood USA Makes a Splash in Suffolk Cooke Seafood USA has committed to investing nearly $3M over the next three years at its Wanchese Fish Company operation, including expanded capabilities and adding up to 70 new hires in corporate leadership and retail seafood production. Cooke has continuously increased its imports and exported products through the Port of Virginia, all while investing millions in upgrading the Suffolk location to better handle an increased amount of seafood coming into the facility from a variety of the Cooke family of companies around the world.

One very public product placement will come out of the new retail line – Martha Stewart’s new suite of seafood dishes. Her entire new “True North” line will be produced in the Suffolk facility. The products include two salmon dishes – Atlantic salmon with lemon herb butter and sockeye salmon with miso butter – as well as Alaska pollock and a medley of pollock, salmon, and scallops.

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GROW The Neighborhood Harvest Growing Local Operations

Blue Bell Returns to Suffolk With New Distribution Facility

Thanks to steadily increasing customer demand, The Neighborhood Harvest has expanded their hydroponic growing operation in Suffolk. The company now has additional operational space at Suffolk Industrial Park to package and prepare for delivery an array of their “beyond organic� produce and farm products.

Blue Bell Creameries, as part of its commitment to returning to the region, constructed a 14,000 square foot distribution facility in the Northgate Commerce Park. The distribution center consists of state-of-the-art cold storage space and services customers in an approximate 70-mile radius of Suffolk.

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W New Developments Bring Exciting Mixed Uses Suffolk saw progress on a variety of developments destined to be hubs for new restaurants, retail shops, office, hotel, and housing.

Obici Place, at the former site of Obici Hospital, is a 27-acre mixed-use development. Home to Meridian Obici apartments, Aldi, Dunkin’ Donuts, Chartway Federal Credit Union, Jersey Mike’s Subs and upcoming retailers, there are ample commercial opportunities in what’s sure to be a vibrant development.

Bridgeport by BECO, located along Bridge Road, is currently being developed to be a walkable waterfront community with boutiques, retail suites, unique dining options, office space, upscale residences, silos, restaurants and an outdoor entertainment venue that embraces the local style and flavor of coastal Virginia.

The office market has seen an increase in demand in the region, with users looking for administrative space in a central, convenient location. The Point at Harbour View is now marketing office opportunities in a 4-story, Class A, 80,000 SF administrative building along with other commercial and residential opportunities at the 55-acre mixed-use development located in the highly-desirable northern part of the City.

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GROW Truitt House

pourfavour

Small Businesses Vital to Suffolk’s Success Suffolk is an exciting place to work and live, and the community’s strong commitment to supporting small businesses is evident in our diverse mix of companies throughout our City.

Holland Country Gourmet

Community Business Launch

ReStored Pop-Up Shop YesSuffolk.com

El Korita Restaurante

W

Wanchese - Cooke Seafood Kroger

Centerbrooke Self Storage

Blue Bell Creameries

Towne Bank

Tidewater Builders Association

Sentara

Food Lion

Pro Media Video Services

E - Nails and Spa

Indus Psychiatric Services

Embroidery and Print House

XPO Logistics

2018 Skrimp Shack

Velocity Express Care

Target

TRICARE Prime Suffolk

Mod's Super Fast Pizza Meraki Hair Studio

El Korita

Bayview Physicians

Lipton

Wine & Design

Coastal Styling Studio

Simply Paint it

pourfavor coffee shop

Bridgeport

GROW Eagle Development

Scrubs Plus

Long & Foster

Kay's Acres

YesSuffolk Bojangles

World Class Realty

Truitt House

Aspen Dental

Care Advantage

Dunkin’ Donuts

American Family Care

Obici Place Shoppes Hampton Roads Crossing

I love kickboxing

Tidewater Rebar

Shannon & Bedois PC Weichert Realtors

Marco's Pizza

Organic Roots

Accurid Pest Solutions

Lenscrafters

Kenny's Bistro Conglamorate Cleaning

Lane Eye Care

Jersey Mike

Fine Lines Personal Training

Duck Donuts

Threat System Solutions

Maaco Auto Body

Luxe Nail Spa

Wild Birds Unlimited

Freddy's Frozen Custard and Steakburgers

Smithfield Foods YesSuffolk.com

CITY OF SUFFOLK Economic Development PO Box 1858 Suffolk, Virginia 23439 757-514-4040 YesSuffolk.com Facebook-Square twitter instagram YesSuffolk.com