Shenandoah Valley Business Journal

BUSINESS JOURNAL A Byrd Newspapers Publication

Shenandoah Valley

Volume Volume16, xx,No. No.5, xx, March Xxx. 29, 25, 2016 2015

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SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, March 29, 2016

BUSINESS JOURNAL Inside This Issue Shenandoah Valley

The Shenandoah Valley Business Journal is a monthly publication of Rockingham Publishing Company, Inc., 231 S. Liberty St., Harrisonburg, VA 22801.

Editorial Staff

Focus Section: Auctions ■ Auctioneers Diversify, Adapt . . . . . . . . . . . . . . . . . .Page 6

Other Business News ■ Wagner Named Dynamic COO . . . . . . . . . . . . . . . .Page 4

Harrisonburg, Va.

Contact us By mail: Shenandoah Valley Business Journal P.O. Box 193 Harrisonburg, VA 22803

By email: svbjnews@dnronline.com

■ Rosetta Stone Cuts Quarterly Losses . . . . . . . . . .Page 11

By fax:

Editor and General Manager: Peter S. Yates

433-9112

Columns ■ Movers and Shakers . . . . . . . . . . . . . . . . . . . . . . . . Page 2

By phone:

Managing Editor: Jerry Blair

■ Valley Business Scene . . . . . . . . . . . . . . . . . . . . . . Page 2

574-6267 (news) 574-6229 (ads)

Staff writers: Vic Bradshaw

■ Investments by Matthew Frakes . . . . . . . . . . . . . . . Page 4

■ Investments by Gannon Irons . . . . . . . . . . . . . . . . . Page 3

■ News To Me by Philip B. DuBose . . . . . . . . . . . . . Page 5

Contributing photographers: Austin Bachand, Nikki Fox

Bank Of James Taps Brown As Loan Officer HARRISONBURG — Scott Brown has joined Bank of the James as a mortgage loan officer.

Brown has seven years of experience in the mortgage industry, including give years with SunTrust Mortgage Inc., according to a press release. He most recently was a marketing associate with food product supplier Sysco of Virginia.

He holds a bachelor’s Brown degree in business administration from James Madison University.

Bank of the James, a wholly owned subsidiary of Lynchburg-based Bank of the James Financial Group Inc., serves several markets in central and west-

■ Real Estate by Tim Reamer . . . . . . . . . . . . . . . . . . Page 9 ■ Local Ledger . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 10

ern Virginia. It opened a branch at 1391 S. High St. in Harrisonburg on Oct. 1.

— Vic Bradshaw

Park View’s Boettger Earns Senior Professional Credential HARRISONBURG — Yvonne Boettger, human resources manager for Park View Federal Credit Union, has earned the senior professional in human resources designation from the HR Certification Institute.

The credential signifies that a person has “mastered the strategic and policymaking aspects of HR management in the United States,” according to the institute’s website. Those with the designation typically plan human resources See MOVERS, Page 10

Summit, Highland County Bankshares Are Merging HARRISONBURG — Summit Community Bank (NASDAQ: SMMF) is merging with Highland County Bankshares, a community bank headquartered in Monterey that operates three First and Citizens Bank branches in Virginia.

Summit Financial Group Inc., the Moorefield, W.Va.-based parent company of Summit Community Bank, announced the deal in a news release. Summit agreed to pay $38 per share for the 574,370 outstanding shares of HCB stock, placing the value of the transaction at approximately $21.8 million.

Both bank boards have approved the acquisition. The transaction is expected to close in the third quarter, pending approval of HCB’s shareholders and regulators.

Summit operates branches in Harrisonburg on South Main Street and

On The Cover: Austin Bachand / DN-R Tom Weaver, an occasional auctioneer at the Shenandoah Valley Produce Auction in Rockingham County, auctions off guns on March 12.

Neff Avenue.

— Vic Bradshaw

NiSource Inc. Makes List Of World’s Ethical Firms HARRISONBURG — NiSource Inc. (NYSE: NI), the parent company of Columbia Gas of Virginia, has made the Ethisphere Institute’s list of the World’s Most Ethical Companies for the fifth consecutive year.

The institute’s website states that the program honors companies that excel in internal promotion of ethical business standards and practices, allow managers and employees to make good decisions and shape industry standards by introducing future best practices today. Of the 131 companies recognized, 99 are based in the United States.

See SCENE, Page 10

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Give Your Investment Portfolio A Spring Cleaning

N

ow that spring has officially sprung, you might look around your home and decide it’s time for some sprucing up. But you don’t have to confine your efforts to your house and yard — you can also engage in a little “spring cleaning” in your investment portfolio.

Here are a few suggestions for doing just that: ■ “Dust off” your investment strategy.

Dusting is a big part of spring cleaning.

Light fixtures, shelves, windowsills — they can all acquire layers of dust and grime that need to be whisked away. And if you’ve left your investment strategy unexamined for a long period, it too may need to be “dusted off” and re-evaluated.

Over time, your financial goals, family situation and even risk tolerance can change, so it’s a good idea to review your overall strategy to make sure it’s still appropriate for your needs.

■ Get rid of “clutter.” Once you start tidying up your house, you might be surprised at all the “duplicates” you find — a broom in a bedroom, another broom in the laundry room, a third in the garage, and so on.

Just as you probably don’t need multiple brooms, so you may find that you have many versions of the same type of investment in your portfolio. If you own too many of the same investment, and a market downturn affects that particular asset, your portfolio could take a big hit. You may be better off by selling some of the too similar investments and using the proceeds to diversify your holdings.

However, while diversification can reduce the impact of volatility on your portfolio, it can’t guarantee profits or protect against loss.

■ Remove “stains” on your portfolio. As you clean your carpets and furniture, you might notice some stains that should be

Tuesday, March 29, 2016

3

Investments Gannon Irons removed. And when you look through your portfolio, you might find some “stains” in the form of chronically underperforming investments.

Instead of holding on to these vehicles with the hope that they will eventually turn around, you might consider selling them and using the proceeds to purchase new investments, which can help fill any gaps you may have in your holdings.

■ Consolidate your accounts. Have you ever discovered a stapler in one drawer, a roll of tape in the linen closet and a bunch of marking pens on your desk? All these items may be useful, but for the sake of efficiency (and to cut down on frustrating searches), you might want to consolidate them in one place.

And you could do something similar with your investments. Specifically, if you have some stocks here, a couple of certificates of deposits there, and some IRAs at

still another place, you might consider consolidating them with one financial services provider. With all your investments in one place, you could possibly reduce the fees and paperwork associated with maintaining your accounts.

And when you eventually start taking withdrawals from your IRA and 401(k), you may find it easier to calculate these required distributions if they’re coming from just one place. But just as importantly, when you consolidate your investments with one provider, you may find it easier to follow a single, unified investment strategy.

So, there you have them — some springcleaning ideas to help you update and energize your investment portfolio. And you won’t even need a dustpan.

This article was written by Edward Jones for use

by Harrisonburg Edward Jones financial adviser Gannon Irons. To contact him, call 433-1805.

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SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, March 29, 2016

Social Security Loopholes Take A Hit

A

s part of last year’s Bipartisan Budget Act of 2015, Congress approved some major changes to Social Security which could impact your benefits.

Designed to eliminate “loopholes,” the new rules will mostly impact married dualincome couples. It is estimated that couples could stand to lose as much as $60,000 in benefits as a result of these changes.

‘File & Suspend’ Strategy

Investments Matthew R. Frakes ent benefits can only be collected once the filer has started collecting their social security benefits.

There are exceptions. Anyone born on or before May 1, 1950, is still eligible to file and suspend. Executing this strategy will permit others in the household to become eligible to collect benefits based on the individual who has filed.

To do so, paperwork must be submitted

by April 29, 2016.

The biggest change is the elimination of the popular “file and suspend” strategy.

Leveraging this strategy, an individual could file for benefits at full retirement age, then immediately suspend payments.

The spouse could then file to receive a spousal benefit. The spousal benefit could be equal half of the benefit amount of the spouse who had suspended the benefit.

This strategy allowed for a payout of ben- ‘Restricted Application’ Strategy Another change eliminated the ability efits to the household, while both individuals still continued to grow benefits until age 70 for dual-earner couples to effectively double claim. at the rate of 8 percent per year.

Under this loophole, a spouse could Under the new law, spousal or depend-

Making A Difference In Our Community Your oral health is an integral part of your total well being!

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choose to file to collect only a spousal benefit upon reaching the full retirement age, then later switch to their own benefits which will most likely be higher due to delayed claiming (at a rate of 8 percent a year until age 70).

Under the new law, anyone born after Jan 1, 1954, will no longer be allowed to start collecting a spousal benefit upon full retirement age and delay collecting their own benefit.

Those born before this date can continue to file for a spousal benefit at their full retirement age and defer their individual benefit to a later time.

Also, the changes won’t necessarily apply to a widow or widower. A surviving spouse could still claim a survivor benefit and defer his or her own retirement provided the survivor has not already filed to receive benefits.

Determining the maximum possible Social Security benefits for a household can be quite complicated, depending on age, life expectancy, age disparity, income and other factors.

We know Social Security can be an important part of your retirement income, so it’s a good idea to discuss your Social Security strategy with your financial adviser to see how it may impact your long-term goals.

Article provided courtesy of Matthew Frakes, a Morgan Stanley financial adviser in Harrisonburg.

Curtis G. Dean, DDS & David C. Hall, DDS

HALL & DEAN, DDS, PLLC

Harrisonburg, Va.

Wagner Named Dynamic’s Chief Operating Officer HARRISONBURG — Dynamic Aviation has promoted Shannon Wagner to chief operating officer.

Wagner, most recently the company’s senior vice president of operations, joined Dynamic Aviation in 2013, according to a news release. He has more than 25 years of commercial aviation experience.

A former U.S. Marine, before joining the Bridgewater company he was vice president of component solutions at Aveos Fleet Performance in Montreal and held leadership roles with both United and Delta airlines.

Wagner earned a Wagner bachelor’s degree in professional aeronautics from EmbryRiddle Aeronautical University and a master’s degree in business administration from Strayer University, and he’s enrolled in the Harvard Business School’s general management program.

In his new post, he will oversee daily operations for the company, which provides special-mission aviation solutions for government and commercial clients around the world. Dynamic employs about 600 people, owns more than 140 aircraft and operates from 18 locations in five countries on three continents.

— Vic Bradshaw

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, March 29, 2016

Are You A ‘Ground Floor’ Leader?

A recent development in the evergrowing and increasingly popular arena of leadership study is something knowns as “ground-floor leadership.”

This concept is certainly an intriguing one because it contends that people don’t have to wait until they’re ensconced in the corner office, or until they have the letters “VP” in their job title, before engaging in leader behaviors.

They can start acting like a leader today.

According to an article in the March issue of Talent Development, managers who are also “ground-floor leaders” have two main objectives with respect to their leadership.

First, they seek to develop people while capitalizing on their strengths, and they empower their staffs to model ground-floor leadership behavior themselves.

The overarching goal is to create an engaging culture where people feel that they are respected, and where they’re able to reach their potential.

Ground-floor leaders use a lens that enables them to see their environment through the eyes of people on an organization’s ground floor, and then help those employees achieve their fullest potential through intentional action.

Such an orientation demonstrates some important ground-floor leader traits, such as kindness, curiosity, integrity, and generosity. These traits result in a ground-floor leader undertaking a few basic, but important, actions — such as giving credit where credit is due — on a daily basis, and these actions help shape the organization’s culture, and promote engagement.

Sleeping In The Workplace According to a well-known professor of sleep medicine at Harvard Medical School, people today are getting 60 to 90 minutes less sleep than they were getting a half-century ago.

Moreover, an article in the March issue of HR Magazine, estimates show that insomnia costs the U.S. about $6.3 in lost productivity. This can have a profound and negative impact on employee health, and in turn, the bottom line.

Sleep deprivation is a result of many factors, which probably won’t surprise anybody. People are spending more time

Also, this research builds on previous findings that show that incompetent people often overestimate their expertise, while competent people tend to underestimate theirs.

commuting to work, they’re spending more time indoors — away from natural light that tells the body when it’s time to go to sleep, they’re suffering from more medical conditions, such as sleep apnea, which results from overweight and a sedentary life style, and they’re part of a culture that values overwork.

Fortunately, employers can help address this situation.

For example, they can avoid scheduling 12-hour shifts and ensure adequate time between shifts. Also, they can offer educational tips about how to improve sleep quality.

Finally, they can conduct “fitness for duty” examinations for employees working in safety-sensitive jobs when it’s suspected that such employees are suffering from sleep deprivation.

Perhaps the most encouraging thing is the fact that getting employees to change their sleep behaviors can be achieved more easily than persuading them to eat healthier foods or to exercise more.

As one researcher remarked, “Sleep has so many benefits with so little effort.”

Competence Vs. Authority Which is more important when choosing a leader: competence or authority?

When selecting a new leader, we often “give the nod” to somebody who projects confidence and authority.

However, an article in the March issue of Harvard Business Review suggests that a more important trait is, in fact, competence.

The article recounts a recent research study, where participants were organized into teams to work on a project, after first choosing a leader. Midway through the exercise, teams were given feedback on how they had performed — both individually and as a team — up to that point, and were allowed to choose a new leader if they wanted to do so.

Among the teams that opted to select

a new leader, only about half of them (55 percent) chose a new leader based on competence, i.e., individual performance during the first half of the exercise.

The others chose people who were taller or louder, or who projected more confidence than their teammates — in short, people who appeared authoritative.

These findings suggest an alarming disregard for expertise when choosing leaders.

Also, this research builds on previous findings that show that incompetent people often overestimate their expertise, while competent people tend to underestimate theirs.

Therefore, those people who see themselves as experts and project the most confidence may be people whose expertise we should question most.

Philip B. DuBose is a management professor in the James Madison University College of Business.

NEWS to

ME

— By Philip B. DuBose

Jeffrey S. Evans & Associates Expert specialists in all types of Shenandoah Valley antiques including pottery, furniture, quilts, folk art, documents, &c.

Also paintings, prints, statuary, silver, jewelry, glass, china, Oriental objects, textiles, Civil War & other militaria, antique firearms, advertising & country store, toys, books, coins, &c.

All auctions fully catalogued and conducted live in our gallery as well as on-line across the world through multiple live internet bidding platforms. Visit jeffreysevans.com for past catalogues with prices realized.

Contact JSE&A first for a free verbal evaluation of your antiques.

Now accepting consignments for our June Americana & Virginia Auction Heather King, Consignment Manager: heather@jeffreysevans.com or 540-434-3939, ext. 102.

Jeffrey S. Evans & Associates, Inc. VAF #782 2177 Green Valley Lane, Mt. Crawford, VA 22841 - 540.434.3939

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SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, March 29, 2016

Harrisonburg, Va.

Auctioneers Adjust To Changing Landscape

By VIC BRADSHAW Daily News-Record

HARRISONBURG — If hearing the word “auction” makes you think of eBay, you might be missing out on some deals in your backyard.

Though the number of auction houses and sales have declined over the years, local auctioneers said the industry remains relevant locally. The fast-talking salesmen help sellers move millions of dollars of household items, collectibles, vehicles, equipment and real estate annually.

“In the ’80s and ’90s, there used to be eight to 10 auctions every Saturday,” said Greg Evans, president of Green Valley Auctions and Green Valley Moving outside Mount Crawford. “Now, it’s down to four or five.”

Despite the drop in the number of sales, the volume and value of items sold at auction probably hasn’t fallen nearly as much. Auction houses more frequently combine whole or partial estates for a sale (Evans said Green Valley recently had a 2,000-lot sale) to draw larger crowds, and real estate auctions have become more prevalent.

Jack Bowman, who owns Bowman Auction House at 1000 S. High St. in Harrisonburg, said 15 or 20 years ago, See AUCTIONEERS, Page 7

Linden Wegner, a regular auctioneer at the Shenandoah Valley Produce Auction, sells off various farm equipment and produce on March 12.

Austin Bachand / DN-R

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, March 29, 2016

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Rise Of Internet Sites Brings Pros, Cons Auctioneers

FROM PAGE 6

real estate auctions carried the stigma of a foreclosure proceeding for some people.

Attitudes began to shift six or seven years ago, and he said it’s an integral part of his business now. Properties are sold as is, and the buyer must provide a “sizeable” deposit at the time of purchase.

“It’s for people who want fair market value for their property, but they don’t want to drag [the sale] out for six or seven months,” said Bowman, 65, who uses the honorary title “Colonel” auctioneers can use after completing auction school. “A desirable property is going to get everything it’s worth.”

’Net’ Gain The Internet has hurt the industry in some ways, but local auctioneers said the benefits likely outweigh the disadvantages.

Rick Heatwole, co-owner and president of Heatwole Auction Team and owner of Affordable Moving LLC, said one downside is that certain items that are hard to find in this area but prevalent elsewhere used to bring good prices.

Now, buyers can pick them up online at a lower cost.

Television shows such as “American Pickers” and “Storage Wars” have prompted more family members to keep valuable items, he said.

But the marketing reach he gets via his website, hatauctions.com, and auction sites helps draw larger crowds and occasionally a buyer from afar who wants a particular item.

“A lady drove from Delaware to buy a bedroom suite, spent $2,200,” said Heatwole, 46, a second-generation auctioneer. “It probably wouldn’t have brought $400 before the Internet.”

Bowman breaks into a huge smile when asked about the Internet, calling it “the turning point” for the industry. Some of his customers by items and resell them online.

It’s also used to research items so he can educate buyers about their value and prompt higher bids, and photos of items can be posted to attract interest from afar. Bowman recently sold a vintage sign to a buyer See AUCTIONEERS, Page 8

Nikki Fox / DN-R

Susanna Williams and Gary Campbell of Afton look over glass and China up for auction at the Green Valley Auction outside Mount Crawford. Local auction houses say the rise of Internet sites like eBay may have led to lower prices for some items, but also has drawn business from well outside the area.

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SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, March 29, 2016

Harrisonburg, Va.

Used Furniture Sales Wane, But Fine Furniture Remains In Demand Locally Auctioneers

FROM PAGE 6

in Oregon and has had calls from as far away as Japan about items.

“The Internet,” he said, “made us.”

It’s not just small items the Internet helps move. Heatwole said a recent, large vehicle sale he held drew about 200 people.

Neither Bowman nor Heatwole hold live auctions online, while Evans said he sometimes does. However, his brother Jeffrey — president of Jeffrey S. Evans & Associates, an auction house on the same family farm Green Valley was built on — often does because he specializes in antiques and collectibles that draw considerable interest outside the region.

“I’ll sell specialized collections [online] that might not realize its potential in this area,” said Greg Evans, 49, a second-generation auctioneer. “If you’re selling online you can become dependent on it because you draw less of a [live] crowd.

“When you’re handling estates with a variety of stuff, you want to make sure you’ve got a big crowd so people will wind up buying what they didn’t know they wanted.”

Auctioneers Diversify A keystone of sales in past years was furniture. Despite the occasional big purchase, all three auctioneers said that segment of the industry dropped considerably since the recession.

Used furniture shops have faded away, Evans said, and antique shops have yielded to antique malls that favor a business model built on selling small items. Fine furniture, such as items made by Suter’s Handcrafted Furniture in Harrisonburg or Henkel Harris in Winchester, remains in demand, but bargains can be found.

“A lot of people bring their [adult] kids to furnish their houses,” said Evans, whose auction house has 13 full-time employees and some part-timers who help on auction days. “If you’re patient, you can furnish a house for a fraction of the money, but very nice. It’s fun to see young people coming out to furnish their house.”

Shipping costs limit the Internet’s influence on furniture prices at auction.

“I used to get excited when we’d get a house full of nice bedroom and dining room furniture,” Heatwole said. “The stuff that

You Read the

BUSINESS JOURNAL

Tom Weaver, an occasional auctioneer at the Shenandoah Valley Produce Auction in Rockingham County, auctions off guns on March 12.

Austin Bachand / DN-R

brings big money now is the stuff we used to sell first in the outbuildings, the junky stuff.”

Local auctioneers are reaching beyond personal property sales for revenue, too.

Real estate has helped Bowman — whose business provides full-time paychecks for five family members and two other people and brings in part-time help when needed — keep his business profitable.

Evans and Heatwole have found moving a good complement because it provides extra income and they sometimes pick up sale items, putting part of a household’s items on the block because the seller was moving to a retirement home and downsizing.

Heatwole, who employs seven mostly

part-time workers, said he’s done foreclosures and personal property appraisals for divorces.

All three auctioneers receive a commission from sellers. Green Valley adds revenue with a buyer’s premium, something Bowman rarely institutes and Heatwole avoids.

Bowman said his customers don’t like the buyer’s premium, but he thinks it’s going to become the norm.

“It’s coming. We’re all going to end up doing it,” he said. “Nobody likes change except a baby, and they’ll fight you half the time.”

Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com

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Nikki Fox / DN-R

Greg Evans, president of Green Valley Auctions and Green Valley Moving outside Mount Crawford, auctions items on a recent Friday afternoon.

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Tuesday, March 29, 2016

9

Recruiting The Perfect Town . . . No Matter The Cost A

few weeks ago, I saw a picture of downtown Harrisonburg taken in 1962. I have to admit, despite being born in 1979, I had a bit of nostalgia for what seemed to be a straightforward and vibrant center of commerce and social activity.

History suggests that wasn’t actually true at the time for most downtowns, and even if it still was for Harrisonburg, it wouldn’t be so for long, at least not the way it once was.

Truth is, by this point in American history downtowns were no longer a hub where commercial and social activity merged. No, when this picture of Harrisonburg was taken, America was well into the second industrial revolution, the middle class was moving to the suburbs, and urban renewal (which wasn’t nearly as pleasant as it may sound) was implemented in downtowns as businesses left.

Still, it hasn’t stopped us from longing for that picture of a simpler life.

Around the country, planners and other government officials have responded with mixed-use zoning designations, mandates for walkable/bikeable communities, special taxation districts and various incentives.

In response, the development community has built town centers and implemented pedestrian-oriented development and transit oriented development plans to create a singular place to live, work and play.

All of this to recreate what we once had — or at least think we did.

At its worst, nostalgia paints the past as an idealized version of some-

thing we want it to be, not what we know as reality. At its best, nostalgia draws inspiration from the greatest the past had to offer while allowing for continued evolution.

So which is it? Are mixed-use town center developments nothing more than a very expensive false façade with very little substance or an opportunity to build on the best of the past for a better future?

Real Estate Tim Reamer

mary corridors like East Market Street? Instead, haven’t these small It’s a question for which I don’t have businesses elected to open downtown?

Isn’t one of the greatest attributes of an answer, but I do have other quesa downtown the eclectic mix of both tions. businesses and There have been some at- At its worst, nostalgia paints the past people? Aren’t the variety of price tempts at creating as an idealized version of something points a traditiona new urbanist, we want it to be, not what we know as al downtown afpedestrian orientreality. At its best, nostalgia draws fords and entreed, mixed-use inspiration from the greatest the past preneurs it atcommunities tracts one of the along the Interhad to offer while allowing for reasons that state 81. As such, continued evolution. downtown Harthey were derisonburg has signed to appeal to a diverse demographic of age, income, been so successful in attracting new businesses and reinvestment over the and lifestyle.

Sometimes they were designed to in- last decade and a half?

Can governments (and developers clude a “Main Street” with residential lofts above in addition to townhouse for that matter) successfully engage in and single-family residential options. this type of centralized planning? Can But, given the realities of construction some of these new urbanist principles costs, isn’t there a limit to the amount be injected into land-use regulations of diversity (certainly within income and planning guides without undermining free market activity? levels) that can be obtained?

Wouldn’t the same be true for commercial endeavors and isn’t this eco- Short-Term Benefit Worth It? Does a car-dependent metro area like nomic reality the reason there are fewer independent small businesses on pri- Harrisonburg or others along the I-81 cor-

More Questions

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540-820-9517

Quality Used Equipment For Sale

ridor really have the critical mass to create a town center with a pedestrian orientation outside of downtown?

I think it would be fair to say that I am certainly not an enemy of new development — the projects I represent would suggest otherwise. I am also not necessarily a critic of new urbanism (or whatever name it will be known by in the future) and some of the principles for which it stands.

Quite candidly, the parties who are most regularly excited by the concept and can afford it are often my national retail clients, even if that isn’t the intent.

Even so, I am concerned that this shortterm benefit is not worthwhile. Often, even when the intent is noble, these types of regulations force developers to ignore consumer preference in favor of ideology.

Developers aren’t ideologues — they are capitalists that aim to deliver what a consumer demands.

Tim Reamer provides commercial real estate brokerage and consulting ser vices with Cottonwood Commercial and specializes in retail representation, investment proper ty (multifamily | commercial | NNN), and development projects. Learn more at www.timreamer.com.

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Tuesday, March 29, 2016

SHENANDOAH VALLEY BUSINESS JOURNAL

Local Ledger

Columbia Gas Delivers In Va. Scene

FROM PAGE 2

Columbia Gas of Virginia delivers natural gas to consumers in various regions of Virginia, including the Shenandoah Valley.

— Vic Bradshaw

Boettger An EMU Graduate With Master’s Movers

Home Sales

Unemployment Harrisonburg Rockingham County Page County Shenandoah County Augusta County Staunton Waynesboro

Jan. 2016 4.9% 3.9% 8.5% 4.2% 4.1% 4.5% 4.8%

Dec. 2015 4.6% 3.4% 7.7% 3.7% 3.7% 4.1% 4.3%

Jan. 2015 5.2% 4.5% 10.1% 4.9% 4.6% 5.0% 5.2%

Source: Virginia Employment Commission

Labor Force

FROM PAGE 2

policy, are accountable in their department, and have in-depth knowledge of both human resources disciplines and the overall business they work for.

The credit union’s human resources manager since Park View 2006, Boettger Federal is a earned a bachnonprofit, elor’s degree member-owned in business education financial from Eastern cooperative.

Mennonite University and a master’s degree in human resources development from James Madison University.

Park View Federal is a nonprofit, member-owned financial cooperative that operates four branches in Harrisonburg and Rockingham County.

Harrisonburg Rockingham County Page County Shenandoah County Augusta County Staunton Waynesboro

Jan. 2016 23,747 39,112 11,242 20,787 35,656 11,786 9,883

Dec. 2015 23,939 40,038 11,443 20,696 35,729 11,685 9,822

Jan. 2015 24,075 40,536 11,639 21,079 36,528 11,929 10,017

Source: Virginia Employment Commission

Median Price Harrisonburg Rockingham County Page County Shenandoah County Augusta County Staunton Waynesboro

Feb. 2016 $180,550 $197,250 $79,000 $143,700 $182,500 $132,500 $186,500

Feb. 2015 $153,000 $182,500 $109,500 $172,450 $169,500 $105,000 $119,000

Pct. Change 18.01 8.08 — 27.85 — 16.67 7.67 26.19 56.72

Days On Market Harrisonburg Rockingham County Page County Shenandoah County Augusta County Staunton Waynesboro

Feb. 2016 44 72 76 132 29 55 63

Feb. 2015 41 98 300 165 114 111 92

Pct. Change 7.32 — 26.53 — 74.67 — 20.00 — 74.56 — 50.45 — 31.52

Units Sold Harrisonburg Rockingham County Page County Shenandoah County Augusta County Staunton Waynesboro

Feb. 2016 24 44 8 38 37 21 22

Feb. 2015 22 46 6 38 52 27 21

Pct. Change 9.09 — 4.35 33.33 0.00 — 28.85 — 22.22 4.76

Sources: Funkhouser Real Estate Group; RealEstate Businesss Intelligence

Retail Sales (in millions) January 2016 $97.2M $45.8M $11.8M $30.5M $37.5M $28.8M $39.4M

Harrisonburg Rockingham County Page County Shenandoah County Augusta County Staunton Waynesboro

— Vic Bradshaw

BUSINESS JOURNAL Shenandoah Valley

Harrisonburg, Va.

Source: Virginia Department Of Taxation

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SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Rosetta Cuts Losses; Makes Hass CEO Restructuring To Reduce Workforce By 17 Percent HARRISONBURG — Rosetta Stone Inc. (NYSE: RST) announced in March that it continued to cut its losses in the fourth quarter, and the company’s board has named the interim leader its president, CEO and chairman of the board.

The technology-based learning solutions company posted a loss of $11.4 million, or 52 cents per diluted share, in the fourth quarter, which was 47 percent better than its $21.5 million loss, or $1.01 per share, in the fourth quarter of 2014.

Revenues fell to $58 million from $79.3 million as Rosetta Stone continued to focus on corporate business.

For the full year, Rosetta Stone lost $46.8 million, or $2.17 per diluted share, compared to $73.7 million, or $3.47 per share, in 2014. Revenue fell to $217.7 million from $261.9 million the previous year.

The board of directors named John Hass its president, CEO and chairman effective April 1. He has been heading the company on an interim basis.

Hass also announced the restructuring of Rosetta Stone’s Enterprise language segment by closing nearly all its direct sales operations outside the United States and northern Europe, working with partners to continue service in some of those areas.

The company also plans to close software development operations in China and France.

The restructuring is expected to reduce the number of employees by about 17 percent and cut annual expenses by approximately $19 million.

Wall Street initially was unimpressed by the report, with the stock price dropping 56 cents, or 7.5 percent, to $6.95 per share the day of the announcement.

Rosetta Stone is headquartered in Arlington but founded in Harrisonburg and maintains an employee base here.

— Vic Bradshaw

Tuesday, March 29, 2016

11

Speaking To A Mortgage Adviser Good First Step When Buying Home

By TERRI DART BRADLEY

T

he first step in buying a home might not be the one you think it is. Browsing Zillow? Nope.

Contracting a Realtor? Not that either.

If you’re serious about buying a home, before you spend hours searching for properties and setting up showings, the first step is to talk to a mortgage adviser.

But how do you know what you’re financing until you know what you’re buying? Looking at homes that are out of reach or being disappointed by homes in a lower price range than where you could be searching, can be discouraging and time consuming.

Consulting with a mortgage adviser allows you to embark on a more informed property search.

When you talk to an adviser, discuss your goals as well as your personal comfort level within your budget. Your adviser can tell you — often within a matter of minutes — what your borrowing capabilities are.

With mortgage rates low, clients often discover that they can afford more than they originally thought, opening up more houses to choose from. But just because you qualify for a certain loan amount doesn’t necessarily mean that’s where you want to put your money, so be honest about the price range you want to stay in.

Your adviser will arm you with a

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preapproval letter that you can share with your Realtor to help find homes in your price range.

Preapproval letters also demonstrate to sellers that you are a serious and prepared buyer. With a preapproval letter, you’ll have better negotiating power and increase the chances of a seller accepting your offer.

A mortgage adviser can also talk to you about the different loan programs available and any requirements or restrictions of that program to know what best fits your needs.

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They can let you know about any out-ofpocket expenses and closing costs so you can be prepared to request seller-paid costs or repairs with your offer if that works to your advantage.

With a slight shift in thinking about the steps we all take to buy a house, starting with your mortgage adviser will get you better results and a happier home-buying experience.

Terri Dart Bradley is vice president of VBS Mortgage in Harrisonburg. Call 540-442-8583, or visit www.vbsmortgage.com.

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Tuesday, March 29, 2016

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.