Roanoke Business- Nov. 2015

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NOVEMBER 2015

SERVING THE ROANOKE/BLACKSBURG/ NEW RIVER VALLEY REGION

profit in

The

nonprofits

Community service organizations contribute millions to the economy and strengthen the region’s social fabric


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CONTENTS SERVING THE ROANOKE/BLACKSBURG/ NEW RIVER VALLEY REGION

November 2015 F E AT U R E S COVER STORY

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The profit in nonprofits

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Community service organizations contribute millions to the economy and strengthen the region’s social fabric. by Sandra Brown Kelly

COMMERCIAL REAL ESTATE W.M. Jordan’s new horizon

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Building spurs economic development, which spurs more building.

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by Kathie Dickenson

TECHNOLOGY A new kind of student

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You thought it up at Virginia Tech; but who owns the idea? A step toward entrepreneurship. by Dan Radmacher

HIGHER EDUCATION Hokie growth

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Virginia Tech has a lot going for it: high rankings, new majors and new buildings. by Shawna Morrison

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INTERVIEW: Linda Balentine

founder, Crowning Touch Senior Moving Services

Hardship births a company tailored to seniors

From being homeless to selling franchises: ‘You’re good at a lot more than you think you’re good at.’ by Beth JoJack

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COMMUNITY PROFILE: Salem ‘The true small town’ The Salem Way: Be business-friendly, citizen-serving and sports crazy

by Gene Marrano

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NEWS FROM THE CHAMBER •

Leadership Roanoke Valley Class of 2016 selected

Member news & recognitions

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FROM THE EDITOR

Dismal discovery by Tim Thornton

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hen Janet Yellen was explaining in September how the economy is doing well, but not well enough to justify raising interest rates yet, I started thinking about the models, metrics and indexes that purport to measure various aspects of the economy. That’s how I fell into the Internet’s rabbit hole. I looked up some statistics about unemployment and wages. That led to a couple of articles about interest rates, which led to a video of Paul Krugman talking about economists. That led to a column about the dismal science, which led to a paper by an Australian economist named Robert Dixon explaining the origins of the term “dismal science.” The mythical explanation is historian Thomas Carlyle created the phrase in response to economist Thomas Malthus’ writings about the relationship between population growth and food production. Some have interpreted Malthus’ work as a vision of humankind perpetually on the brink of starvation. Apparently that’s not exactly what Malthus meant, but it is a decidedly dismal view of the future. Carlyle apparently used the term quite a lot. The first time was in a magazine article, later reprinted as a pamphlet, that said the social science we call economics “is a dreary, desolate, and indeed quite abject and distressing one; what we might call ... the dismal science.” Carlyle wrote that “Dismal Science people” had divorced their field from morality and asked, “Is there no value, then, in human things, but what can write itself down in a cashledger?” Carlyle, it seems, wasn’t singling out Malthus and his dismal view of humankind’s future. He was decrying ledger-book accounting of human value. Well, some humans’ value. The economic theory of supply and demand seemed so dismal to Carlyle, not because it reduced a person’s worth to what that person’s time and effort could bring in an unfettered market. Economics was dismal because it didn’t take into account what Carlyle saw as the natural order in which some are “born lord” and others are “born to be a servant.” When Carlyle first used “dismal science” in print, slaves had recently been emancipated in the West Indies. Their former masters were complaining they could no longer find enough laborers to conduct their business — at least, not enough laborers willing to work for the wages and under the conditions those former masters preferred. Economics may be a dismal science, but the birth of that term is more dismal still.

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SERVING THE ROANOKE/BLACKSBURG/ NEW RIVER VALLEY REGION Vol. 4

NOVEMBER 2015

President & Publisher Roanoke Business Editor Contributing Editor Writers

Art Director Contributing Photographer Production Manager Circulation Manager Accounting Manager Vice President of Advertising Account Representative

No. 11

Bernard A. Niemeier Tim Thornton Paula C. Squires Kathie Dickenson Beth JoJack Sandra Brown Kelly Gene Marrano Shawna Morrison Dan Radmacher Adrienne R. Watson Don Petersen Kevin L. Dick Karen Chenault Ashley Henry Hunter Bendall Lynn Williams

CONTACT: EDITORIAL: (540) 520-2399 ADVERTISING: (540) 597-2499 210 S. Jefferson St., Roanoke, VA 24011-1702 We welcome your feedback. Email Letters to the Editor to Tim Thornton at tthornton@roanoke-business.com

VIRGINIA BUSINESS PUBLICATIONS LLC A portfolio company of Virginia Capital Partners LLC Frederick L. Russell Jr.,, chairman

on the cover Jim Sears,

president and general manager Center in the Square Roanoke Photo by Don Petersen



Out About &

Cityworks (X)po (X)po n. \ek’spo\ an interactive summit of people involved in and passionate about the work of creating vibrant, dynamic, wonderful communities. Occurs annually in Roanoke, Virginia, in early October. The fifth Cityworks (X)po filled Charter Hall and spread out all over Roanoke, convening a collection of communityimproving people from all around the country and all around the region.

1 1. Deric Feacher, T. Michael Stavres, Carol DeHaven, Anita Strong and Merle Bishop are holding CityWorks (X)po in Winter Haven, Fla., in April. Feacher is the city manager. 2. Abby Verdillo and Ashley Marshall, both of United Way of Roanoke Valley.

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3. Brent Cochran, River Rock Climbing; and Duke Baldridge, Dominion Risk Advisors. 4. Robert Kulp, Mike Whiteside and dog Molly May of Black Dog Salvage. 5. Back row: Robert Reynolds, (X)po speaker; Adnan Sosic, Grandin CoLab; Kathryn Hatam, Alexander Films; Sarah Allin, (X)po speaker; Front Row: Fe Nguyen and Ariel Lev, Grandin CoLab. 6. Allie Marshall and Rachael Eplee, Virginia Tech students; and Hallie Martin, CityWorks LLC.

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Photos courtesy Bella-Muse Photography


Letter to the Editor

Shooting didn’t break community’s strong bonds

Vicki Gardner was wounded when Vester Lee Flanagan II, a disgruntled former employee of WDBJ7 in Roanoke, killed journalists Alison Parker and Adam Ward during a live interview at Smith Mountain Lake. The gunman later took his own life after a police chase. Associated Press/Erica Yoon,The Roanoke Times

To the Editor: Smith Mountain Lake is an amazing community, and I’m so proud to be recognized as one of its leaders. The tragedy on Aug. 26 that claimed the lives of talented WDBJ7 journalists Alison Parker and Adam Ward thrust our community into an international spotlight. There were so many questions left unanswered. The intense media coverage — local, regional, state, national, even international —served a purpose, and that was to tell the story of how our community responded with strength and dignity. Senseless acts of violence happen all too often. While circumstances may be different, the act is always unexpected and often misunderstood. In many cases, communities are divided, destroyed and left with an unshakeable dark shadow because residents are un-

prepared and don’t know how else to vent their grief and frustration. That was not the case with Smith Mountain Lake. I can say with pride that as a direct result of this horrific act, an incredible number of lake residents have reached out to meet new “neighbors” and develop new friendships. A powerful shield of respect now blankets our region, serving as a reminder of the sacrifice members of our law enforcement community and rescue crews provide 24/7. We witnessed prompt action and support by businesses, organizations and individuals. The hashtag #SMLStrong was created and brought to life with amazing speed and pride. The Day of Remembrance on Sept. 19 at Bridgewater Plaza, the site of the shooting, was perhaps the most visible testimony to the strength of the Smith

Mountain Lake community with hundreds turning out in bright blue T-shirts emblazoned with #SMLStrong to honor Adam and Alison and see a permanent memorial to them unveiled. Watching everyone join hands to embrace the plaza was truly inspirational and an important step on our road to healing. I can’t say thank you enough for the support shown to me in my recovery. Cards, flowers and gifts have arrived from all over the world and are a definite boost to my spirits. I wish I could respond to all, but the volume is overwhelming, so just know that each and every gesture is so appreciated! Generous donations also continue to arrive at the Chamber for “Vicki’s Vision,” a project I hope to be able to share more details on soon. In a nutshell, the goal is to create a much-needed gathering spot that will be not only a tremendous benefit to the region, but a lasting tribute to Alison and Adam. The healing process is slow, but I am feeling stronger each day and am eager to return to doing the job I love: promoting Smith Mountain Lake! Participating in all of the events scheduled to celebrate SML’s 50th anniversary — now just a few months away — provides a powerful incentive for me. I hope you’ll find out more about how you can be part of the excitement at www.VisitSmithMountainLake.com. Senseless acts of violence will not end here. We cannot change what has happened, and there is nothing we can do that will bring Alison and Adam back to their loved ones. However, the community of Smith Mountain Lake can continue to serve as a worldwide example of how unity, leadership and vision can make a community stronger, its members closer than ever. Stay #SMLStrong, Vicki Gardner Executive director Smith Mountain Lake Regional Chamber of Commerce ROANOKE BUSINESS

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COVER STORY

The profit in nonprofits

Community service organizations contribute millions to the economy and strengthen the region’s social fabric by Sandra Brown Kelly

I

t’s easy to see a nonprofit organization’s work as just collecting donations and handing out aid. Yet, the true image of such groups is quite different. Even nonprofit businesses cannot be separated from a bottom line, and the Roanoke region’s hundreds of organizations show substantial returns, both financial and social. Behind the success of this sector is a group of savvy leaders who work together. Indeed partnerships are becoming the lifeblood for survival in the nonprofit world. Even with the challenges, they manage to procure millions of dollars in federal grants and donor contributions, harness the energy of volunteers and produce evidence of the human side of the equation by showing how their programs work. In the state of Virginia in 2013, nonprofits employed 235,100 people, paid $8.2 billion in wages, received $54.8 billion in revenues and held assets of more than $136.3 billion, according to Independent Sector, a trade organization for nonprofits. In the Roanoke region, a 2013 study by the Roanoke Valley-Alleghany Regional Commission of 15 arts and cultural groups found that they brought in nearly $11 million in visitor dollars annually with a total impact of nearly $24 million.

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In the past 12 years, arts and culture groups have invested more than $110 million in capital improvements in downtown Roanoke, points out James Sears, president of downtown’s Center in the Square. It houses three museums and Mill Mountain Theatre and partners with four other cultural groups. “Nonprofits bring a lot of money to the region, federal and state money that would not be here,” says Dan Merenda, president of the Council of Community Services (CCS). “The economic impact of the nonprofit sector is not often considered.” At the regional level, CCS provides a good example of the impact. It has 53 employees and received more than $2.4 million in state and federal money in 2013. Its Drop-In Center for HIV testing, which served 1,807 people in that same period, was chosen by the state as a model for such centers. CCS links people to community resources, whether people in need of services or volunteers looking for a place to give their time. It also helps nonprofits with planning throughout Southwest Virginia. IRS guidelines list more than 25 categories of organizations that qualify as federal tax-exempt because they “benefit the broad public interest, not just the interests of its members.” Hospitals, some higher education institutions and religious organizations are in this group. So are Opera Roa-

noke, the Roanoke Ballet Theatre and the June Bug Center in Floyd where businesses, nonprofits and civic groups can hold programs such as a free clinic and yoga classes. Merenda is concerned, though, about the future with so many entities vying for grants and donations. “How are we going to grow this sector? We are not going to grow local and state monies.” Finding new routes to funding Merenda applauds agencies that have found new financial support by recasting their mission, or teaming up with other agencies to deliver services. He points to Trust House as a survivor. Started as a crisis center, Trust had moved into transitional housing and was near bankruptcy six years ago when it called on Merenda’s group for planning help. The result was a shift of focus to include a program for military veterans. Trust won a contract with the Salem VA Hospital to assist homeless veterans. That contract was worth more than $200,000 last year, says Ali HamedMoore, Trust’s executive director. The agency also has a grant from the Department of Housing and Urban Development (HUD) to assist the chronically homeless. In 2014, HUD recognized Trust as an “excellent example” of the leadership of a nonprofit organization recognizing a


community need and then working with other groups to meet that need. “We work with the seriously mentally ill, substance abusers and chronically homeless,” explains HamedMoore. “Our goal is to keep them from coming into a shelter.” In addition to the temporary housing program, Trust offers a program of support to former Trust residents during their first year in a new residence. That support can be assistance with credit, skills development or even music therapy, all of which are contracted out. Even with its successes, Hamed-Moore says, Trust’s $500,000 annual budget places it in a precarious position. “We have a large concentration of nonprofits, and it has become increasingly more difficult to be a nonprofit under one million dollars.” In September, the boards of Trust and Bethany Hall, a home for women recovering from addiction, were in talks to determine how they might work together for greater efficiencies. Bethany Hall’s budget is about the same as Trust’s. “We will see more and more nonprofits finding synergy, working together to serve the community,” predicts Hamed-Moore. Photo by Don P:etersen

Dan Merenda, president of the Council of Community Services, says that even though nonprofits bring millions of dollars to the regional economy, their future is uncertain.

ROANOKE BUSINESS

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cover story

Nonprofits at a glance • Goodwill Industries of the Valleys’ 37 area retail stores in Roanoke region employ more than 800 people and return more than $1.6 million in sales tax revenue. • The Roanoke Rescue Mission in 2013 served 291,709 meals and had 114,555 volunteer hours. • The Bradley Free clinic had nearly $3.9 million

in donations and grants in 2013. • Virginia Tech Carilion School of Medicine received $17.7 million in contributions and grants. • Feeding America received $34.3 million in grants and contributions. • Habitat for Humanity’s Restore store had annual revenue of $479,862 for year ended June 2014.

Sources: 2014 IRS filings, agency interviews

Profile of nonprofit sector in Virginia

• 41,353 organizations, including public charities, private foundations and nonprofit organizations • Total 2013 revenue for public charities in state: $61.4 billion • Private foundations’ revenue: $997.5 million

Subsectors (based on September 2015 data)

• 2,824 arts, culture, humanities groups with $1.6 billion in annual revenue • 4,564 education organizations, with $8 billion revenue

• In 2013, (latest data available) nonprofits employed 235,100 people, paid $8.2 billion in wages, received $54.8 billion in annual revenues, held assets of more than $136.3 billion

• 2,194 health/hospital nonprofits with $20.9 billion revenue

Sources: National Center for Charitable Statistics at the Urban Institute; Independent Sector. Revenues reflect 990 filings. Not all agencies file.

Partnerships are the future Already working in the partnership arena is the United Way of Roanoke Valley. It builds partnerships to meet needs in the area, says Abby Verdillo, UW vice president for Community Impact. For instance, after a study indicated a large number of area residents did not use a bank or credit union, United Way brought banking sources together for a Bank On program that offered no-cost or low-cost accounts. More than 1,000 people opened accounts. “We are moving into an era where we realize that programs can be strong individually, but it is more important what collectively they can accomplish,” says Verdillo. United Way in 2013-2014 gave $475,000 in grants to 26 agencies representing 56 funded programs. In the same period, 369 volunteers spent 1,692 hours helping UW raise money and review member applicants, a value of more than $38,000, says Verdillo. UW helped facilitate dental services through New Horizons Healthcare and a literacy program operated by the United Methodist Community Outreach. The dental initiative grew out of Healthy Roanoke Valley, which was created in response to Carilion Clinic’s 2012 community needs as10

NOVEMBER 2015

sessment. Carilion periodically teams with area governments and agencies to determine the health needs of the area, and oral health was one of those needs. Child Health Investment Partnership (CHIP) of Roanoke Valley had begun a children’s dental program, but low-income adults had little access to dental care. To get a program for adults started, Eileen Lepro, CEO of New Horizons, helped write applications for funding through the Virginia Healthcare Foundation and United Way. From November 2014, when New Horizons opened its dental clinic, through July 2015, the agency saw more than 1,000 individuals for 2,078 visits. The first-year budget for the dental program was $892,623, with $527,693 coming from foundations and grants. The remainder of the budget expenses come from patient sliding fees and third-party insurance reimbursements. “We estimate that 70 percent of our patients have incomes at or below 200 percent of the federal poverty level,” says Lepro. During calendar year 2014, New Horizons, a federally qualified clinic, provided medical, behavioral and/or dental services to 6,783 individuals,

says Lepro. The literacy program operated by United Methodist Community Outreach is a much smaller program that also grew out of partnerships. The United Methodist group already had a reading program for youngsters in grades four through eight when United Way invited agencies to write grants related to education. “We worked with Blue Ridge Literacy to see if we could create a space where first- to third-grade children can come to read,” says Rebecca Parsons, the Community Outreach executive director. Starting in September, up to 30 first-through-third-graders from Fallon Park, Highland Park and Wasena Elementary schools began coming daily to the new after-school reading program at Trinity United Methodist Church. Seed2Seed, a community farming organization that also is a partner in the program, brings food and prepares dinner for the children and parents on one or more evenings as part of instruction on nutritional cooking and home gardening. One night a week, staff from Blue Ridge Literacy also is on hand to help children and parents, some of whom have English as a second language. The United Methodist programs are funded mainly by grants but also by donations and in-kind services. The heavy hitters Carilion Clinic, the Roanoke Valley’s largest employer, also dominates the nonprofit scene in the Roanoke region, with $138.8 million in community support, according to its 2013-2014 annual report. This includes a variety of services ranging from $2,400 to provide overnight accommodations to families in need, up to $72.1 million provided in charity care. In a somewhat different arena, Goodwill Industries of the Valleys defines the “way to grow without inordinate dependence on philanthropy,” says Merenda of the Council of Community Services. Along with sales of donated clothing and other items, Goodwill offers substantial


manufacturing services and receives educational grants for workforce retraining. Goodwill Industries of the Valleys’ Radford facility builds components for Volvo Trucks North America and its Mack trucks division and produces custom shipping pallets for more than 25 customers. It even sells the sawdust from the manufacturing process to a company that uses it as heating fuel. “We are looking for ways to use the wood scraps,” says Jodi Henrickson, senior director of commercial services. Other Goodwill ventures include packaging medical test kits for TechLab and manufacturing “water clarifying” mechanisms for Tetra. Both are Blacksburg companies. “One reason we are in manufacturing is that we are in counties where manufacturing is an important part of employment. Workers can move on from Goodwill to employment elsewhere,” says Henrickson. Goodwill Packaging operations

and e-commerce are based at the Goodwill headquarters facility on Melrose Avenue where donor books from the 31-county Goodwill territory are scanned and cataloged for sale in Valley Books and More, the online store on Amazon.com. This year, Henrickson expects online book sales to be more than a half million dollars. Before the online store was established, book sales were about $50,000 a year. Goodwill also has branched into home services with its Good Choice Companion Program, which offers nonmedical care such as sitting and grocery shopping in the Roanoke Metro Area. The program allows workers to try out health care at the entry level to see whether it is something they might be interested in doing and going to school to study. Goodwill also is beginning a certified nursing assistant program, Henrickson says. Goodwill Industries of the Valleys had a $229.5 million economic

impact on the 31 counties and 13 cities it served in 2013, according to a study by Elliott D. Pollack and Co., based in Scottsdale, Ariz. Goodwill employed more than 1,000 people in its service areas and listed payroll tax of $763,000. Its retail stores employed 800-plus workers and generated more than $1.6 million in sales tax revenue. The agency placed 2,900 people “facing employment challenges” in jobs with an average hourly wage of $12.85. The agency has partnered with Virginia Western Community College to create a learning center on the Melrose Avenue site offering classes leading to a variety of Microsoft certifications as well as training in certification in MS office specialist, medical administrative assistant and an industrial maintenance program. Early graduates from the industrial maintenance program have gotten jobs at upward of $17 an hour, says Mary Ann Gilmer, Goodwill vice president for workforce development.

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TAP’s Early Head Start program teaches Kaleah Jones about letters and numbers and healthy eating. That helps her mother, Shaneice Jones, work her two jobs.

The programs are funded by more than $3.9 million in federal and state grants for workforce development programs and by an assistance program for veterans. A $2.5 million federal grant related to health professions education is pending, says Leah Coffman, coordinator of Workforce Solutions at VWCC. The college has

an adviser on-site at Goodwill to work with students, who also have access to Goodwill’s job and career center services. “Students coming in with such wraparound support are completing (courses) at a much higher rate,” says Coffman. “We had not been able to give that opportunity before. The

partnership with Goodwill has been awesome.” Like Goodwill, Total Action for Progress (TAP) covers an area broader than the Roanoke Valley. Its territory extends to 11 localities, including Rockbridge County. The agency has 330 employees. It sponsors Early Head Start and Head Start programs in the New River Valley, the Virginia Highlands area and Lexington. In each case, TAP teams up with already established child-care programs to give the program’s teachers and directors training. Kaleah Jones, 2, is one of the program’s beneficiaries. Kaleah likes kale salad, has been potty-trained and shares well with other children. Her mother, Shaneice Jones, gives much credit for Kaleah’s interests and accomplishments to the Early Head Start program, designed for infants as young as 6 weeks old up to 3-yearolds. “She’s learning her ABCs and can count to 10,” says Shaneice, who

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learned about the free preschool while participating in a TAP program for pregnant women. “It’s really helped out because I can work at night and then I can sleep,” she said. TAP’s 14 Early Head Start centers in the Roanoke Valley can accommodate 120 youngsters, and a waiting list generally has more than 100 names on it. Shaneice’s 10-week-old son, Kendrick, is on the waitlist. Other centers operate outside the Valley; all are dependent upon federal grant money. Parents have to transport the children to and from the preschool programs. Shaneice works as night supervisor with Sheetz, and each morning she takes Kaleah to the Brand Hardin Sims Early Head Start and Head Start Child Development Center on Shenandoah Avenue. The toddler starts her day with breakfast, and Shaneice goes home to sleep. She picks Kaleah up around 3:30 – “so we can have our time together” – before heading to work again. Shaneice recently took a second job as a cashier with Wal-Mart, part of her plan to find “the resources to get housing for myself and the kids.” The family lives with her father. He helps with the children, but he also works and takes care of Shaneice’s mother, who is in a rehabilitation center recovering from a stroke. A grandmother also provides child care. Shaneice, 21, says she hopes someday to be able to participate in the Habitat for Humanity home ownership program. For now, she takes advantage of the resources provided to Head Start parents, such as a 10-week “Cooking Matters” class. “It changed the way I cook; I now cook a variety of foods.” That’s when kale became an addition to the menu, she says. The tomato plant she brought home from a gardening class was still producing in late September. And, each month, she and Kaleah get $10 to shop the West End Farmers Market where the toddler always went for strawberries when they were in season. “We also get fresh eggs,” Shaneice says. TAP has been awarded more than $12 million for its Early Head Start Photo by Don Petersen

TAP’s Amy Hatheway says much of the money nonprofits bring to the region stays in the region.

and Head Start programs, which since 2009 have annually served 784 preschoolers and 97 infants, toddlers and pregnant women. “Not only is the grant money coming into the area, but we are hiring working class folks, and that money stays here,” says Amy Hatheway, covice president for planning and re-

source development. TAP’s main focus has been helping people who aren’t successful in traditional classrooms become employable. We are helping equip individuals with the skills needed to be successful, helping them get back to school, get a GED. Not only get hard skills, but soft skills,” notes Annette Lewis, the group’s president and CEO. “TAP could not do what we do without other nonprofits in this community,” Lewis adds. “If we have to deal with mental health, we go to Family Services or Blue Ridge Behavioral Care. For people with disabilities, we call on RADAR transportation. The Rescue Mission provides emergency shelter. When family violence is involved, TAP turns to The Salvation Army’s Turning Point program. Goodwill provides job placement. TAP worked with Habitat for Humanity to build new homes and repair homes. “All of us working together helps,” says Lewis.

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COMMERCIAL REAL ESTATE Interesting developments are popping up all over. Last year, Shelor Automotive Group turned an old warehouse into living space for ballplayers. Shelor renovated Pulaski’s historic ballpark, too.

W.M. Jordan’s new horizon Building spurs economic development, which spurs more building by Kathie Dickenson

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ntil recently, one of the state’s major contractors wasn’t a player in western Virginia. But that changed last year when W.M. Jordan Company opened an office in Roanoke’s Valleypointe office park in January 2014. Paul Galloway, a contracting and development veteran, manages what is Jordan’s fourth office. The company has its headquarters in Newport News and other loca-

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tions in Richmond and Wilmington, N.C. The company decided to get into the western Virginia market to be closer to its new customers. “I like the city and the area, for both quality of life and job opportunities,” CEO John Lawson says of the decision. “We had picked up a number of nice projects in the area, and I’ve always felt that to be of good service to your customer you need to be geographically fair-

ly close.” Those projects include Radford University’s 114,000-squarefoot Center for the Sciences building, expansion and renovation of the Virginia Department of Forensic Sciences’ Western Laboratory in Roanoke County, Virginia Tech’s 84,000-square-foot indoor athletic practice facility and a 73,400-square-foot Virginia Tech classroom building, “the first one they’ve built in probably 40 years,” Photo courtesy Hung Lieu


says Lawson. His comment is based partly on personal recollection: Lawson graduated from Tech 40 years ago with a degree in geophysics. His deep connection to Virginia Tech is another draw to the region. Lawson’s father, Robert T. Lawson, the 1958 co-founder of W.M. Jordan, was a Tech graduate. “He had me going up to football games when I was just a toddler – and I’m talking about every game,” recalls Lawson, whose son is now a third-year building construction major at Tech. A former rector of the board of visitors and a member of the Virginia Tech Foundation Board, Lawson was a national steering com-

mittee co-chair for the university’s billion-dollar capital campaign that ended in 2011. He is the alumni association chair of Sigma Phi Epsilon fraternity. He and fraternity brother Ross Myers, a 1972 civil engineering graduate and CEO of Pennsylvania construction firm Allan Myers, helped found the Myers-Lawson School of Construction with a shared $10 million pledge. Lawson adds that he is building a home in Blacksburg’s Fiddler’s Green, “in walking distance of campus.” Since the Roanoke office opened, Lawson says, it has brought in somewhere between $75 million and $100 million of business. His goal for the location is more than

$100 million in business a year. Don’t ask him to be more exact. He is “not a fan” of traditional strategic planning or setting numerical goals in terms of revenue or profits. “I’m after continuous improvement,” he explains. “I think you need to reinvent yourself every day.” Unlike traditional construction companies, he says, “we love change.” The company uses progressive technology for four-dimensional modeling and augmented reality and implements photography drones for infrared mapping and digital panning. The corporate culture is reflected in an active wellness program, learning opportunities in ROANOKE BUSINESS

15


commercial real estate

W.M. Jordan Company’s projects include Virginia Tech’s 84,000-square-foot indoor practice facility. Photo courtesy Richard Boyd, Boyd Pearman Photography

personal development and construction education, an internship program from which new employees are often selected and delegation of authority “all the way down to the lowest levels of the company. I set expectations and let them figure out a way to do things. But I do float a lot of proposals, sometimes crazy ideas, to these bright young people and it’s amazing what they come up with,” says Lawson. “I encourage everyone to dream and to suggest things that are not necessarily normal, in an attempt to have continual improvement. When you build a culture like that, it feeds on itself.” Barry Ward, vice president and office brokerage specialist with Cushman & Wakefield|Thalhimer, assisted W.M. Jordan with its move into Roanoke. He says the choice says something positive about the region. “A large contractor moving into the area, I think that’s a good sign,” says Ward. “They came because of work they are doing here, but they could have done it from anywhere.” In Ward’s opinion, the region is a good place to invest. He estimates less than a 10 percent vacancy for office space in downtown Roanoke and the northwest and southwest 16

NOVEMBER 2015

county. “We are getting inquiries and proposals on vacancies both from within the market and from folks outside the market looking to expand into our market.” In Blacksburg, Virginia Tech Corporate Research Center Executive Director Joe Meredith says the CRC is “on track to win more new tenants in 2015 than in any of the last seven years.” Retail growth is evident in Christiansburg, where Californiabased Harbor Freight Tools moved

into Marketplace Shopping Center over the summer. Kohl’s department store is renovating the vacant Sears store in New River Valley Mall, and Panda Express is building a restaurant – its first in Southwest Virginia – on the perimeter of the mall. Plus, a True Value Hardware store is under construction on Roanoke Street. Because demand drives retail location, says assistant town manager Randy Wingfield, such commercial growth indicates “this is a desirable place to do business.” Local developers are investing, too. Charlie Jewell, executive director of the New River Valley Economic Development Alliance, observes that one local company, Taylor Hollow Construction LLC, has restored several historic retail buildings in Radford for reuse as restaurants and apartments and is converting an old Montgomery County school into senior living space. Last year Shelor Automotive Group purchased and renovated, through SHAH Development LLC, Pulaski’s historic Calfee baseball park and converted an old warehouse near the park into an extended-stay hotel for player housing. “A willingness by local developers or national chains to invest in Construction such as the Homewood Suites going up in Christiansburg is touted as an endorsement of the region’s economy.

Photo credit


the community means the economy is strong enough for their investment,” says Jewell. Lawson points out that a major construction project has a quick economic impact on a community. A $10 million project, he says, can multiply into $40 million in spending, as the customer pays the contractor, who pays subcontractors, who pay their subcontractors and suppliers, who spend dollars in the community. “Now that’s over a finite period of time,” cautions Lawson, “maybe one or two years, until the job ends. But the idea is to secure additional work during that time.” W.M. Jordan is known for such projects as Newport News’ 1.9-million-square-foot Tech Center at Oyster Point, the U.S. Army’s 23-structure, 300-acre Asymmetric Warfare Group Training Complex at Fort A.P. Hill in Caroline County and the 14-story oceanfront Hilton Garden Inn in Virginia Beach. “We don’t just do competitivebid work,” Lawson explains, “we’re also a developer. We build projects for other people, but we also build them for ourselves.” The company engages in private and public-private partnerships. Its diverse portfolio includes higher education, government, hospitality, health care, senior living, planned communities, heavy manufacturing and historic restoration. Do Lawson’s successes and connections in the region mean he might invest in the types of projects he has developed in other parts of the state? Lawson says his company is “careful, when we go away from our home base, about picking the right projects and the right partners, but there will be opportunities for us to work with people that bring value to the table to help complete a project” that requires the skill sets of both partners. “We haven’t identified those opportunities yet because we’re new to the area,” says Lawson, “but they always happen.” Photo courtesy Town of Christiansburg

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TECHNOLOGY

A new kind of student You thought it up at Virginia Tech; but who owns the idea? A step toward entrepreneurship Adam Donato and David Henry liked Stephan Sabo’s pitch for a startup better than their own, so they joined him in creating Card Isle, kind of a “Red Box for greeting cards.”

by Dan Radmacher

E

arlier this summer, the Virginia Tech board of visitors revised the university’s intellectual property policy, giving students ownership of the intellectual property they create while on campus. According to college officials and faculty members, that’s just one sign of the recognition that Tech is attracting a new kind of student. Sean Collins, the new director of Innovate, a “living-learning community” that resides in Pritchard Hall, says Tech’s growing emphasis on creating a culture that encourages entrepreneurship is “demand-driven.” Innovate stu-

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dents are immersed in an entrepreneurial culture, living together in Pritchard their first year. They are introduced to potential mentors and funders Collins and offered professional development coursework aimed at teaching a “tolerance for ambiguity” as Collins put it. “This is what these students are looking for,” Collins says. “I credit Virginia Tech’s leadership for recognizing that.” The change to the intellectual property policy grew out of concern that the university might be

stifling students’ entrepreneurial activities. “The old policy clearly states that any intellectual property developed on campus using a university-provided tool is owned by the university,” says Srinath Ekkad, vice president of research. “Some of the things that are written in the policy aren’t what we want to be known as, or how we really practice.” The change clarifies that if a student is using infrastructure or equipment available to any student, then any intellectual property developed remains the student’s. “We’ve never done otherwise,” Ekkad says. “But we wanted to clarify.” Photo courtesy Virginia Tech


That clarification was welcomed by Allie Howe, president of Virginia Tech’s Entrepreneur Club. In an email exchange, she says the previous policy had a chilling effect. She and other students feared that even using software offered on university computers, such as Adobe Photoshop, would give the university the right to ideas students developed. “With the policy change, students feel a lot more motivated to create and work on our ideas, and it makes us more imaginative and hopeful when we think about the future,” Howe wrote. If a student conducts research as part of university employment or a contract with the federal government or corporation, the terms of the contract Ekkad will determine who owns marketable ideas that result, Ekkad says. “We want to empower our students and faculty. We want to be a partner in innovation, not have them worry about anybody trying to steal their ideas.” In addition to Innovate, Virginia Tech also is offering a minor in entrepreneurship. It includes “the startup class,” and interested students must interview to get into the class. On the first day of class, they are required to pitch an idea for a startup company. Adam Donato was a member of the first class, along with Stephan Sabo and David Henry. Donato and Henry heard Sabo’s pitch for a company that would reinvent the greeting card industry, and they loved it. “We liked it so much better than our own ideas that we hopped on board with him” Donato says. That teaming, and the lessons learned in the startup class, led to Card Isle, kind of a “Red Box for greeting cards,” as Donato puts it. The class was invaluable, he says, in helping to bring the idea to fruition. “They taught us that the reason new businesses fail isn’t necessarily a lack of money or technical capability or the other typical things Photo courtesy Virginia Tech

Ojas Mhetar, Allie Howe and Jordan White, leaders of the Entrepreneur Club at Virginia Tech. Photo courtesy Mitchell Harris

you’d think about. The class emphasized customer discovery: Go out and talk to people. Look beyond what you yourself know or can find on Google.” The trio talked to 700 strangers – getting kicked out of Valley View Mall in the process – to find out what people looked for when buy-

ing greeting cards, and what was missing from the current experience. “There was a lot of frustration with the search,” Donato says. “People were looking for more personalization and selection.” Things that Card Isle could offer through kiosks include the opportunity for customers to design

Innovate is a Virginia Tech program that offers support and community to student entrepreneurs.

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technology Michael Fleming, CEO of TORC Robotics, says Virginia Tech’s entrepreneurial culture has improved dramatically since he graduated in 2003.

Photo courtesy.....

and print their own greeting cards. The startup class led to an invitation to join NuSpark, a collaborative space provided by a partnership between the Virginia Tech Foundation, the Institute for Creativity, Arts and Technology and a number of other partners, includ-

ing successful entrepreneurs with links to the university. Card Isle was one of the first teams invited to use the space. “I don’t even know how to categorize it,” Donato says. “Initially, we weren’t quite sure what to expect, but it turned out to be pretty wonderful

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for us.” Card Isle had been working out of a tiny room in one of the founders’ homes. The NuSpark space exposed them to other developers and entrepreneurs, enabling them to bounce ideas off one another and share differing levels of expertise and experience. “What’s happening at Virginia Tech is quite exciting,” says Ben Knapp, director of ICAT. “We are creating a pathway between the research and development that’s occurring here to actual entrepreneurship.” The NuSpark experience helped the Card Isle team make the progress and connections that got them accepted into Techstars, a prestigious and selective “startup accelerator.” Techstars was founded in Boulder, Colo., but now has locations in Chicago, Seattle, New York, Berlin, London and Austin, Texas. The connections the Card Isle team made at Techstars opened even

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more doors. “The whole thing is snowballing,” Donato says. Michael Fleming, CEO of TORC Robotics and one of the early entrepreneurial success stories out of Virginia Tech, describes Tech’s entrepreneurial culture today as “night and day different” from when he was a student. “There wasn’t much support when we started,” Fleming says. “Today, it’s very different. Virginia Tech has changed the culture, but more work must be done.” Fleming also credits students for driving the changes. “Nothing is more powerful than having students say, ‘This is the direction we’re headed.’ This is apparent in student-run groups such as the Entrepreneur Club.” The recent years of economic struggles and uncertainty have helped stoke entrepreneurial attitudes among today’s students, some university officials believe. “These students are a product of the history of the country and where we are economically,” says Derick Maggard, executive director of the university’s Apex Systems Center for Innovation and Entrepreneurship, which launched the Innovate program two years ago. “They lived through the Great Recession, and they really experienced it.” Many students saw a parent get laid off from what they thought were secure jobs, Maggard adds. “They want to learn to work for themselves and not have to worry that everything can be pulled from under them without warning. It’s a very powerful mindset and, with the pace of technological change, it’s a perfect storm to build and create more. It’s an exciting time.” Maggard predicts that programs like Innovate and other Tech-sponsored initiatives will have an immense impact. “We have the right leadership. We have the right programs. We have the right students,” he says. “Now we have the right policies. We just have to get out of the students’ ways.”

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INTERVIEW: Linda Balentine, founder, Crowning Touch Senior Moving Services

Hardship births a company tailored to seniors From being homeless to selling franchises: ‘You’re good at a lot more than you think you’re good at.’ by Beth JoJack 24

NOVEMBER 2015

Photo by Don Petersen


rowning Touch Moving Services was born out of hardship. The Roanoke-based business that helps seniors move when they decide to downsize is the creation of founder Linda Balentine, who was homeless when she started the company nearly two decades ago. She came up with the idea while working for a moving company that quickly went out of business and couldn’t even pay her for the research she had done to generate another revenue stream for the firm. So, she took the idea and ran with it. At the time, following a divorce, Balentine was basically homeless and raising a daughter on her own. In the borrowed bedrooms of two church friends, Balentine crafted fliers and business cards. While her daughter was in school, she met with marketing directors at retirement communities and gave presentations on her services to real estate professionals. Eventually, she landed her first gig: a senior looking to move out of a South Roanoke home. “Then I had to face the reality of what I was committing to and that was: I’d never been on a moving truck in my life,” she says. “I knew nothing about moves. I’d never hired a mover. Out in Highland County, if you want to move, you get a cattle truck and some bales of hay.” Still, she took on the challenge and that laid the foundation for her company. Twenty years later, Crowning Touch Moving Services employs 22 people and enjoys an annual revenue of $1.5 million. They handle about 500 moves annually. Balentine is in the beginning stages of vetting candidates for franchises of the business in several locations around the country after attending the International Franchise Expo in June. “We are being highly selective,” she says. Franchises will sell for between $50,000 and

C

$65,000. The total is based on the size of the area where the franchise will be located. “Each franchise location will be scaled to service a million plus population, so the revenue they are expected to generate will be at least $5 million annually,” she explained in an email. Not a bad track record for a woman well versed in starting over. Before the divorce from her second husband, Dan Roach, a house fire killed her first husband and her firstborn, a 7-year-old daughter. “That’s a kick in the teeth,” she’ll tell you with her trademark bluntness. Balentine started Crowning Touch with some experience. While married to Roach, they had run Woodpeckers Ltd., a Highland County company that manufactured mailboxes and lampposts. Then, the marriage fell apart. “That was just a shocker,” she says. “I never thought we’d find ourselves in that situation.” The couple sold the business as part of the divorce. Balentine went on to obtain a patent on a sandblasting process before taking a position at a moving company that wanted her to come up with new revenue streams. That’s where she came up with an idea to provide services tailored to seniors looking to downsize. When Balentine announced her big concept, though, she learned the company was going out of business, and she didn’t get paid for her work. Thankfully, those days are over. Roanoke Business: What was the toughest part about that period of your life when you were living in other people’s houses? Linda Balentine: My daughter was with some friends, and they asked what she was getting for Christmas. Her response was so mature. She said, “We’re not celebrating Christmas this year. We’re focusing on what’s really important.” The woman she said that to slipped me $100 Christmas Eve and

said, “You need to run out and get her something.”And I did. I went straight to Walmart. I know what it is to have nothing. I am really grateful that I had that experience … If you get the correct perspective on life, and you haven’t suffered, then you are really blessed because it’s hard to get it any other way. So when my employees are struggling or need to go buy a car or need a down payment, I’m right there for them. Because people were there for me. It’s the old payit-forward thing. Once you’ve really suffered, it enlarges your heart. What it made me was a better business owner, and it made me more sensitive to my clients. RB: Where did you initially get the idea for a senior moving company? Did you have elderly parents who had trouble downsizing? Balentine: No. It was a God-inspired idea. I’m a Christian. I’m not ashamed of the fact that God gives me inspiration, just like he gives me strength in every breath I take. When I was at the fork, I had my idea, which was the idea of the whole patented process … But there was no doubt in my mind that God wanted me to go and pursue the senior moving company. It was my goal to try to relieve the stress [for the senior client], which meant not being afraid to absorb the details not traditionally addressed by the moving industry. Even today if you hire somebody to unpack you … they will put the box here, and they will fill every horizontal surface including the floor with whatever is in the box. They don’t put it away. They don’t organize your kitchen. They don’t hang your clothes up and put your shoes out. But we’re doing that stuff. Because they need that stuff done. They can’t do it. RB: How did you know how to move that first client? ROANOKE BUSINESS

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interview Balentine: You just use common sense. You put the big heavy pieces on the bottom and the light fragile stuff on top. This is not hard. It’s not rocket science. But it does take a dedication and a sensitivity to establishing systems that are right and correct and then adhering to those systems. In other words, don’t ever lower your standards … I was on every job for the first five or six years. I would do all my marketing at night, and after hours I would do the payroll and pay my bills on Sundays. RB: Were you scared when you took that first job? Balentine: Here’s one of the greatest things about being entrepreneurial. You’re good at a lot more than you think you’re good at. You just need to not be afraid to wade into the deep, and you have to get used to doing things afraid. Don’t let fear be the reason you don’t do something. Just say, “I’m afraid, and I’m going to do it anyway. I’m going to do it afraid.” If you wait to feel comfortable about everything you do in life, you’re going to spend a lot of time sitting on the sidelines, not doing what you should be doing. RB: The moving business grew. Eventually, you were able to move into your own house and buy office space. You also remarried Dan Roach. Wouldn’t you have saved a lot of trouble if you’d just stayed married? Balentine: Yes. That is correct [laughs]. RB: So the next step was buying the stuff the seniors no longer needed when they downsized? Balentine: All I’m trying to do at that point was to test the water. I had a formula. Can I buy it for this and sell it for twice as much? A simple formula. I rented a place that had no heat, had no water, had no bathroom. I would sit there in the wintertime and open it up on a Saturday. I had my daughter and my 26

NOVEMBER 2015

husband with me, and we would sit there and sell that stuff as a family. I did that for about a year. I did that half a dozen times. Then I had proof of concept. At this point, we knew we had the consigning business. RB: Later you purchased your current building on Williamson Road and opened a consignment shop. How does that help your senior clients? Balentine: These people can’t get on Craigslist. They’re not going to have strangers showing up at their house at 6 p.m. at night. They just can’t. It’s way too intimidating. How are they going to get rid of this stuff? Their friends are all the same age. What are they going to do? The kids don’t want the stuff. They should want the stuff, but they don’t. It’s a Crate and Barrel world. If they had Crate and Barrel stuff and Ikea stuff and Pier One stuff, they’d have no problem getting rid of it. But they don’t. They have classical traditional furniture, extremely well made, but dated. We do find homes for that stuff. There are people furnishing different styles of homes that are thrilled to get high-end furniture at bargain prices. RB: From there, you purchased the building next door and opened an auction house. Balentine: I couldn’t sell fast enough in the consignment shop. I was overloaded. I had storage units I was renting [that were] full of stuff. I needed a way to sell more stuff. It was a bigger market than I anticipated. The auction house allowed me to sell not only different categories, but it allowed me to sell more, faster. RB: Now you’re set up so people can bid online? Balentine: We aren’t just an online auction. Those people can’t see or touch what they’re bidding on. We are an event. So we’re a hybridized system. You can come to the auc-

tion as if you were coming to see and touch everything, and you can physically pick it up from there. At the same time, you have the convenience of bidding from home. RB: Then you added your real estate division? Balentine: We are a moving company that focuses on helping seniors sell their homes As Is. All of these homes are dated. The average home these seniors are moving out of was built in [early to mid-1970s]. A lot of these seniors, once they bought a nice house they didn’t upgrade the bathrooms just to have granite countertops. They would rather have sent their children and grandchildren through school. They had a whole different set of priorities … what you do is sell the house as is and here’s why: the upgrades are so expensive, because it’s the kitchens and bathrooms that have to be redone. Selling the house as-is takes the price down $40,00050,000. That allows a younger family who couldn’t afford a price point $40,000 more to go in and get the house. RB: You attended the International Franchise Expo in June. Your goal is to sell 10 franchises of your concept over the next couple of years. How did it go? Balentine: That was our comingout party. We had a tremendous reception there. We met people we’re working with now in Chicago and in L.A. and in Florida. You talk to people. You open doors. It takes months from the first time you meet a potential franchisee because they’re also looking at other franchises. RB: Are you ever going to retire? Balentine: Yeah, I’m going to do five more years. RB: That’ll make you 72. Balentine: That’s OK. I work out. I go to the gym. I take care of myself. I’ve been on this marathon for 20 years.


HGHER EDUCATION: VIRGINIA TECH

Hokie growth Virginia Tech has a lot going for it: high rankings, new majors and new buildings

Hokies are happy, well fed and get a good return on their education investment, according to people and publications that rank universities.

by Shawna Morrison

H

appiest students. Best campus food. Best quality of life. Those are three of the categories in which Virginia Tech was highly ranked this year by publications that measure American colleges and universities. In The Princeton Review’s “Best 380 Colleges” 2016 edition, student surveys earned Tech the No. 2 spot for Happiest Students, falling behind only Vanderbilt University in Nashville. Tech came in No. 3 for Best Campus Food and No. 4 in the three areas of Best Quality of Life, Their Students Love These Colleges and Town-Gown Relations are Great. The Princeton Review listed the top 20 schools in 62 different categories. Photo courtesy Virginia Tech

Virginia Tech also gets high marks in value rankings. Money and Forbes based their rankings on factors that include affordability, debt and career earnings. After studying 736 schools, Money placed Virginia Tech in the top 50 of all institutions and the top 20 among public institutions. Forbes placed Virginia Tech at number 23 on its list of the 25 best public colleges. Rankings aren’t the only thing fueling Tech’s continued growth. Officials also look to new buildings and majors as draws for students, although the national rankings certainly help. “We always do very well on value rankings,” says Larry Hincker, the longtime associate vice president

for university relations, who retired shortly after talking with Roanoke Business for this story. “The metric that we think is important is one that’s showing us against public universities. And we look pretty good. You can get a good education in this country, but at some places it’s going to cost you a lot of money. The value rankings do a consumer service by showing those really good schools that give a top education but at a relatively competitive rate.” Another notable ranking came from the National Science Foundation. It ranked Virginia Tech No. 38 on a list of U.S. research universities and said it was the No. 1 academic research institution in Virginia, based ROANOKE BUSINESS

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higher education

Virginia Tech Opened in October 1872. Has operated under four different names: Virginia Agricultural and Mechanical College (1872-1896), Virginia Agricultural and Mechanical College and Polytechnic Institute (1896-1944), Virginia Polytechnic Institute (1944-1970) and Virginia Polytechnic Institute and State University (1970-present). The university motto “Ut Prosim,” Latin for “That I May Serve,” was adopted in 1896. Hokie Stone, from which most university buildings are made, is limestone. Virginia Tech has operated its own quarry since the 1950s. Orange and maroon have been the school’s colors since 1896. More than 90 undergraduate majors are offered, the most popular of which are general engineering; university studies; general biosciences; business; human nutrition, foods and exercise; animal and poultry sciences; physics; architecture; math; and business information technology. This year’s freshman class was expected to increase by about 500 students but increased by about 800, growing the class to about 6,300 students. Sources: Larry Hincker, vt.edu

primarily on research expenditure. The survey ranked 891 degreegranting institutions that spent at least $150,000 on research and development. “That one really reflects the essential nature of our academic profile,” Hincker says. “Those rankings are just showing the rest of the world what all Hokies already know,” says Liz Stewart of Roanoke, a French teacher for Botetourt County Public Schools. Stewart 28

NOVEMBER 2015

attended Tech from 2002 to 2007, earning a Bachelor of Arts degree in French and a Master of Arts in education. She said Tech deserves the recognition it gets. “My five years at Virginia Tech were definitely some of the best of my life. Everything about that school embodies Ut Prosim (Latin for “That I May Serve,” Virginia Tech’s motto). My five years proved that Hokie nation is really a Hokie family. As an alumna, I know I can go back to university any time.” Apparently the desire to be part of the Hokie nation is at an all-time high. Applications for this year’s fall class increased 8 percent over the previous academic year to a record 22,500. School administrators had agreed to grow enrollment by about 500 students per year for four years, totaling 2,000 new undergraduate students. They overshot that number this year, enrolling about 800 additional students and growing the size of the freshman class to about 6,300, bumping up the size of the undergraduate student body to nearly 25,000 students. “But we were able to get professors lined up, classes lined up,” says Hincker. According to him, the university has been planning to increase the number of students in part to meet the demand for degrees in the STEM-H fields – science, technology, engineering, mathematics and health care. Half of Virginia Tech graduates earn a STEM-H degree, and the university produces almost a quarter of all STEM degrees among the state’s four-year public universities, he says. “Virginia Tech has grown considerably since I graduated,” says Allison Perry Woody of Roanoke. She graduated in 2003 with a degree in marketing management and works as a marketing assistant for Luna Innovations. “While I believe growth is extremely important, especially from a funding perspective, I would hate to see the campus grow too quickly or outgrow itself.” In part to accommodate the

student body’s growth, several major construction projects are underway or were recently completed. A $42 million, 73,400-square-foot, three-story classroom building set to open next year is being constructed at the corner of West Campus Drive and Perry Street. It will contain 15 new classrooms and four teaching laboratories with seats for more than 1,450 students, plus study rooms and group meeting space. The building also will include rooms that can be subdivided and reconfigured as teaching needs change. “It will address not only a chronic shortage but also address new ways of teaching,” Hincker says. “Professors are changing pedagogy slightly … Students do a lot of independent work and they come to class and they’ll have discussion groups. They’ll be working on certain things while the professor is there, so the professor isn’t just standing in front of the class. There are several of those ‘reverse classrooms’ in this new building. It’s more like graduate work, where most of the learning takes place outside of the classroom. When you learn by doing, it’s a much more solid way of learning.” Two residence halls are under construction for the Corps of Cadets. Pearson Hall was originally scheduled to open in August but wasn’t finished. It contains 234 residence hall rooms in five aboveground floors, plus a basement and a room to house Skipper, the corps’ cannon. The second residence hall will house about 1,100 students and will replace Brodie Hall, Monteith Hall, Rasche Hall and Thomas Hall. Tech’s award-winning dairy science program moved from the former dairy science complex on Southgate Drive to a new modern complex at Kentland Farm. It includes an 11,900-square-foot milking parlor with a computerized milk-monitoring system, a 46,000-square-foot barn to house the 232 milking cows and a modern waste management system. Construction is set to begin


next year on a second phase of the dairy relocation project. Work also is underway on a major new interchange that will replace the intersection of Southgate Drive and U.S. 460. The project, which will significantly change the entrances to the south end of Tech’s campus, is scheduled to be completed in late 2018. This fall, Virginia Tech rolled out several new and innovative degree programs. “We are particularly proud of several degrees normally seen only at the graduate level,” Hincker says. Four new bachelor’s degree programs in the STEM-H fields got their start: computational modeling and data analytics, microbiology, nanoscience and neuroscience. Tech also debuted a new degree called Water: Resources, Policy, and Management. “It is unusual because it’s administered by six colleges and offers very flexible options for the students,” Hincker says. Virginia Tech leaders are work-

Members of the Corps of Cadets sign a beam that will become part of the Corps’ new residence hall.

ing on ways to increase opportunities for experiential learning, according to Hincker. Opportunities include research projects, internships, study abroad programs and co-op programs, through which students work for a semester and then study for a

semester. “The idea is that there are many, many ways – in addition to classroom learning – to learn,” he says. “It helps you learn what it is you’ve come here to study. And it’s a great, great jumpstart in getting a job.”

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ROANOKE BUSINESS

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A wagon ride with vibrant fall colors — just part of Salem’s small town lifestyle.

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COMMUNITY PROFILE: SALEM

‘The true small town’ The Salem Way: Be business-friendly, citizen-serving and sports crazy by Gene Marrano

P

eople in Salem like to say they do things a little differently – efficiently, progressively and without much hullabaloo. The Salem Way focuses on being businessfriendly and red-tape averse, something that’s easier to do when all five City Council members know what it’s like to own and run a small business. City Manager Kevin Boggess (recruited to Salem from his former post as Vinton’s town manager) says being business- and citizen-friendly “is one of the things we try very hard to do ... to apply common sense to issues and questions the best that we can. If I were a business owner, how would I want to be treated?” Council members’ business experience helps put them in sync with Salem staffers who want to grow the city’s economic base. Boggess says he and his team are “learning our way,” through new state regulations” with an eye toward determining what “interferes the least with our ability to conduct business and thrive in Salem.”

Photos courtesy City of Salem

The Salem Way led Long Island, N.Y., native Bob Rotanz to stick around after he graduated from Roanoke College, located in Salem, in 1978. Rotanz scored the winning goal when the Maroons won the NCAA Division II lacrosse championship in 1978. (“The best shot of my life,” Rotanz says.) Two years later, Rotanz and fellow Roanoke College graduate Jim “Mac” McEnerney opened Mac and Bob’s as a 10-stool sub pub on Main Street. McEnerney left the restaurant business for wealth management, and Mac and Bob’s moved down the street, more than tripling in size. The business expanded and continued to expand. Today’s Mac and Bob’s can seat 330 people – 33 times the capacity of the original. Through all the moving and growing, Rotanz says, the city has been supportive. “In all my years,” Rotanz says, “I’ve never really had a problem [with red tape]. They’re so business-friendly.” Rotanz says outside consultants he has worked with tell him, “It’s so much easier in Salem than in other places.” ROANOKE BUSINESS

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community profile Salem is a small city that hosts championships for small schools. Seventy-six NCAA Division II and Division III champions have won their titles in Salem.

Salem has worked not only at being business-friendly but at turning sports into business. The city has attracted dozens of NCAA Division II and III national cham-

pionships to the Salem Civic Center, Salem Stadium and the Moyer Sports Complex. So far, 76 national collegiate champions have been crowned in the city. The Moyer

Salem FOUNDED: 1802 in what was then Botetourt County, now Roanoke County. The town of Salem became the city of Salem after the General Assembly approved a measure to change its charter in 1968. After separating from Roanoke County, cutline.... Salem developed its own public safety departments and school system. AREA: 14.3 square miles POPULATION: 25,483 (2014 estimate) GOVERNMENT: A city manager and elected City Council. Salem owns and operates its own water, electric distribution and sewerage system. LARGEST EMPLOYERS: U.S. Department of Veterans Affairs (there is a VA medical center in Salem), HCA Health System (Lewis-Gale), Yokohama Tire, city of Salem schools system, General Electric, Roanoke College. FAST FACTS: Andrew Lewis, a colleague of George Washington, was the best known of Salem’s early settlers. Lewis evicted the last British governor, Lord Dunmore, from Virginia during the American Revolution. Lewis’ estate, Richfield, stood roughly where the Salem Civic Center complex is – and where a statue of Lewis stands. Several Civil War battles were fought in Salem. A member of the Salem Flying Artillery is credited with firing the last shot for Lee’s Army of Northern Virginia before the surrender at Appomattox. Sources: Salemva.gov and Virginia Employment Commission

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NOVEMBER 2015

Sports Complex also hosts many amateur softball tournaments. Parks and Recreation Director John Shaner says the growth of softball at Moyer has been good for the whole region, with softball tournaments spilling over into other localities – including a new complex in Botetourt County. That’s led to bigger events, with participants, families and fans who eat, shop and sleep in the region. “It’s really enhanced the whole Roanoke Valley.” Shaner says that in an ultracompetitive bidding world with softball facilities elsewhere that now surpass the 23-year-old Moyer complex, “we completely hang our hat on what we can deliver. That’s what is keeping us so competitive throughout the country.” Shaner says getting a visitor’s dollar to turn over several times is the “whole reason” Salem is so invested in sports marketing. He knows things are going well, he says, when the Little Caesar’s near Moyer runs out of dough. Carey Harveycutter is director of tourism in Salem after decades of being in charge of civic center facilities. He has helped draw events like the nationally televised NCAA football Division III championship Stagg Bowl to Salem Stadium. “We really got ahead of the ball on sports marketing,” he says. Valley wide, Harveycutter puts the annual economic impact from sporting events at $4 million. Main Street in the heart of Salem is full of shops and eateries – the upscale Blue Apron is a local favorite – but that doesn’t mean a facelift isn’t in order. Planning and Economic Development Director Melinda Payne has invited the public to weigh in on a plan she hopes to present to council in early 2016. “We are taking 10 recommendations and fleshing those out,” says Payne. More entertainment venues “and a better mix of what we have,” are at the top of that wish list, according to Payne. “SomePhotos courtesy City of Salem


thing that adds to the ambience in our downtown,” especially to help keep people in town at night, is the target. Finding enough land for new companies in a small land-locked city is the biggest economic development challenge. “People like the way we do business in Salem because we do our best to make the process easy and quick,” she says, “but when you have limited land … it makes it very challenging.” She describes regional cooperation as “probably the best it has ever been” in her 10 years on the job. The valley’s high-speed broadband installation plan is evidence of that, she says, and Payne’s office also has partnered with Roanoke College’s Center for Leadership and Entrepreneurial Innovation (CLEI), for a business concept competition called “The Pitch.” Mayor Randy Foley, a hometown hero, calls Salem “the true small town.” He is a former Air Force officer who played football for the Salem Foley High School Spartans and then the University of Virginia Cavaliers. Today, he’s a partner in Salem-based Nicus Software Inc. Streamlining the process to make Salem as business-friendly as possible is always at the top of City Council’s to-do list, says Foley. He also wants to market Salem better to the outside world. Acknowledging that he is in the business, Foley says he envisions small IT firms as the future of the city’s economic development. He’ll gladly take a new startup from a Roanoke College or Virginia Tech graduate. “We need to be an attractive place to live or to have an office,” Foley says. “We need to be cool. “There’s a lot of good things happening,” the mayor adds, “and I’m very optimistic about where we are headed.”

APRIL 10

SALEM STADIUM FRIDAY, DECeMBER 18 ROANOKE BUSINESS

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Roanoke Regional Chamber of Commerce | SPONSORED CONTENT

Leadership Roanoke Valley Class of 2016 selected he Roanoke Regional Chamber of Commerce’s Leadership Roanoke Valley Class of 2015-2016 has been selected. The 32 members began the 10-month program with an opening breakfast Aug. 12. Graduation will be held in June 2016. The class includes: Zenith Barrett, Goodwill Industries of the Valley; Heather Baum, Roanoke-Blacksburg Technology Council; Claire Bissot, CBIZ Inc.; Lia Boggs, Carilion Clinic; Sarah Boswell, Jefferson College of Health Sciences; Mo Boyd, Allstate Insurance; Tim Cerebe, Freedom First Credit Union;

T

Holly DiGangi, Taubman Museum of Art; David Epperly, Red Canary; McKnight Garner, Waldvogel Commercial Properties Inc.; Sarah Gibbons, Farmer Auctions; Nathan Gwartney, Mill Mountain Theatre; Teresa Hamilton Hall, Appalachian Power ; Ellie Hammer, Merrill Lynch; Amy Hartley, Wells Fargo Bank; Richard Hedley, Cherry Bekaert LLP; Bryan Hill, Roanoke Valley-Alleghany Regional Commission; Brie Jackson, WSLS Channel 10 ; Paige Kauffman, Children’s Miracle Network Hospitals for Carilion Clinic Children’s Hospital;

In each issue, the Roanoke Regional Chamber will recognize its Chamber Champions and event sponsors. This is the updated list for 2015. Please note the change of Valley Bank to BNC Bank.

2015 CHAMBER CHAMPIONS

Tara Lilly, Member One Federal Credit Union; Erika Lovegreen, Medical Facilities of America; Lydia Merritt, United Way of Roanoke Valley; Jessamyn Newcomb, Hughes Associates Architects & Engineers; Ken Nicely, Roanoke County Public Schools; Dani Poe, Hall Associates Inc.; Cara Price, Member One Federal Credit Union; Kimberly Robertson, New Horizons Healthcare; Ann Satterwhite, SFCS Inc.; Aaron Shearer, Western Virginia Water Authority; Suzanne Smith, Carilion Clinic; Jonathan Templeton; and William Vagts, Bay Diesel & Generator.

NEW MEMBERS The following new members joined the Roanoke Regional Chamber from Aug. 8 to Sept. 10, 2015.

BNC Bank

Pepsi Bottling Group

Brown Edwards

rev.net

Cox Business

The Roanoke Times

Gentry Locke Attorneys

Rockydale Quarries

Corporate Image Barber Shop

LifeWorks REHAB (Medical Facilities of America)

Spilman Thomas & Battle PLLC

Cosmetic Essence Inc.

MB Contractors

Woods Rogers Attorneys at Law

Trane

EVENT SPONSORSHIP Thursday Overtime – Sept. 3 Carrabba’s Italian Grill Spilman Thomas & Battle PLLC

2015 State of the City Address – Sept. 3 Appalachian Power Cox Business First Citizens Bank Hall Associates RGC Resources Taubman Museum of Art

@ Work Personnel Services Copenhaver, Ellett & Derrico

Creative Occasions Events, Flowers & Gifts Digital Doc

29th Annual Small Business of the Year Awards – Sept. 17

First Bank & Trust Co.

Cox Business First Citizens Bank Gentry Locke Attorneys City of Roanoke County of Roanoke First Piedmont Waste Solutions Sir Speedy Printing & Marketing Services xpedx

Greenbrier Nurseries Life Ring Foundation Paradise of Virginia Republic Services Somos Media Group South Peak

Business Before Hours – Sept. 30 Transitional Options for Women Doctors Express Roanoke

Talecris Plasma Resources a Grifols Company ROANOKE BUSINESS

35


SPONSORED CONTENT | Roanoke Regional Chamber of Commerce J. William Karbach, CEO of The Branch Group, has announced that Patrick Bartorillo has been appointed president of Branch Highways Inc. Bartorillo Bartorillo joined Branch Highways in 2013 and was named general manager in 2015. Carilion Clinic has purchased the Shenandoah Life headquarters property at 2301 Brambleton Ave. Though plans for the building have not been determined, Carilion is exploring alternatives that would free up clinical space. Carilion is partnering with Shenandoah Life to ensure the company will be able to occupy the current office space for up to a year while they finalize plans for relocating operations to another location in Roanoke. Robin Deatherage has been named customer service and automation manager of Chas. Lunsford Sons & Associates.

selected by their peers for inclusion in the 2016 edition of Best Lawyers in America.

Ayers

Wallace

Ries

Eure

Creasy

Those named are: Ronald M. Ayers, eminent domain and condemnation law, personal injury litigation – defendants; William P. Wallace Jr., personal injury litigation – defendants; John D. Eure, appellate practice, insurance law; Kenneth J. Ries, insurance law, personal injury litigation – defendants; and Bryan Grimes Creasy, commercial litigation, litigation – real estate, and railroad law.

Deatherage

Cowan

Densmore

Branscom

CowanPerry PC has announced that three of their attorneys were selected by their peers for inclusion in this year’s Best Lawyers in America. They are: James K. Cowan, employment law management; Douglas W. Densmore, banking and finance law, corporate law, financial services regulation law, and mergers and acquisitions law; and Tara A. Branscom, trademark law. Jefferson College of Health Sciences has been named one of the top colleges in Virginia in the category of capital improvement by Virginia Living Magazine. The recognition highlights the completion and opening of the Virginia Intercollegiate Anatomy Lab on the Jefferson College campus at Carilion Roanoke Community Hospital in Roanoke. The $2.5 million project opened in May 2015 and was the result of a collaboration between Jefferson College of Health Sciences, the Virginia Tech Carilion School of Medicine and Radford University. Johnson, Ayers & Matthews has announced that five of its attorneys were 36

NOVEMBER 2015

Callahan

Jessee

Kuhnel

Leitch

Morse

Oddo

Rainsbury Thompson

LeClairRyan has announced that 91 attorneys in 57 practice areas were selected by their peers for inclusion in the 2016 edition of Best Lawyers in America. Eight are resident in the firm’s Roanoke office. They are: William E. Callahan, Jr., bankruptcy and creditor-debtor rights/insolvency and reorganization law, litigation – bankruptcy; John T. Jessee, medical malpractice law – defendants, personal injury litigation – defendants; Paul C. Kuhnel, medical malpractice law – defendants; Powell M. “Nick” Leitch III, medical malpractice law – defendants; Clinton S. Morse, employment law – management, labor law – management; Kevin P. Oddo, commercial litigation, litigation – banking and finance, litigation – bankruptcy; Joseph M. Rainsbury, appellate practice; and Lori D. Thompson, bankruptcy and creditor-debtor rights/insolvency and reorganization law, litigation – bankruptcy.

The Roanoke Regional Airport Commission has named H. Odell “Fuzzy” Minnix chairman of the commission for the 2015-2016 term. Minnix, a Minnix Roanoke County appointee, served on the airport commission from 1992 to 1994 and has been on the commission since 2006. Minnix replaces W. William Gust as chair of the commission. Dr. John Dooley has been named vice chair. Roanoke County Administrator Thomas Gates has announced the appointment of Carlan Myers as human resources director. Myers assumed the new position in Myers September. He had previously served as the chief human resources officer for Kissito Healthcare in Roanoke. Roanoke County Finance Director Rebecca Owens presented the results of a recent bond refunding program that allows the county to retire $2.6 million in all outstanding capital leases, literacy loans and the 2011 EDA lease revenue bonds in the current year. On Aug. 6, the county completed the board-approved refunding transaction of $40.7 million of lease revenue bonds previously issued to finance the construction of the Fleet Service Center, South County Library, Green Ridge Recreation Center, North County Fire Station and the purchase of the Roanoke County 800 MHZ public safety radio system. The Roanoke County School Board has appointed Jason Moretz as the new Windsor Hills District member for the school board. Moretz filled the unexpired term of Drew Barrineau, who resigned his seat due to a work-related relocation. Moretz will serve until the November 2016 election is certified. Moretz is a vice president/bank manager of First Bank of Virginia. Hugh B. Wellons, a member attorney of the law firm Spilman Thomas & Battle, was named the 2016 Roanoke Banking and Finance Law “Lawyer of the Year” by the Best Lawyers in America. Only a single attorney is recognized as such for each practice area in each community.

Blanks

Mark Blanks has been named associate director of the mid-Atlantic Aviation Partnership at Virginia Tech. Blanks will be responsible for the day-to-day operation of Virginia Tech’s test site for unmanned aircraft systems.


Roanoke Regional Chamber of Commerce | SPONSORED CONTENT peers in the field and selected based on outstanding achievements in and contributions to the science profession. Ammar

Stark

Melchionna Pearl

Day

Tower

Wellons

The law firm Spilman Thomas & Battle announced that seven attorneys were selected by their peers for inclusion in the Best Lawyers in America directory of leading attorneys. The following were selected: N.A. “Nick” Ammar Jr., employee benefits law, trusts and estates; F.B. Webster Day, corporate law, public finance law; Olin R. Melchionna Jr., trusts and estates; Peter M. Pearl, bankruptcy and creditor debtor rights/insolvency and reorganization law; Douglas T. Stark, commercial litigation; King F. Tower, employment law – management, labor law – management; and Hugh B. Wellons, banking and finance law, biotechnology law, financial services regulation law and securities/capital markets law. Romesh C. Batra, who holds the Clifton C. Garvin Professorship at Virginia Tech, is the recipient of a 2015 American Society of Mechanical Engineers’ Honorary Membership Batra award given to no more than five people worldwide annually. The organization cited Batra for his mentoring of graduate and post-graduate students and pioneering work in applied mechanics. Robert M. Brown, the Curling Professor of Accounting and Information Systems in the Pamplin College of Business at Virginia Tech, has been conBrown ferred the title of “professor emeritus” by the Virginia Tech board of visitors. He has been a member of the Virginia Tech community since 1977.

Crawford

The American Chemical Society (AFC) has named T. Daniel Crawford, professor of chemistry in the College of Science at Virginia Tech, a member of the 2015 class of ACS Fellows. ACS Fellows are nominated by

Howard Feiertag, an instructor of hospitality and tourism management in the Pamplin College of Business at Virginia Tech, has been recognized as one of the top 30 professionFeiertag als in the global meetings and events industry. Nicole Gelinas of the Manhattan Institute gave the BB&T Distinguished Lecture in September at Virginia Tech. The Pamplin College of Business hosted the talk, which was a Gelinas part of its BB&T Distinguished Lecture Series on Capitalism. Kumar Mallikarjunan, a professor of biological systems engineering housed in both the College of Agriculture and Life Sciences and the College Mallikarjunan of Engineering at Virginia Tech, recently received the Kishida International Award from the American Society of Agricultural and Biological Engineers. Karl Markgraf, who has spent the last 17 years as director of the Center for International Education at the University of Wisconsin-Eau Claire, has been hired as the new associMarkgraf ate vice president for international affairs at Virginia Tech. Laura L. Neff-Henderson has been named communications director for the administrative services division at Virginia Tech. She has served as the Neff-Henderson communications manager in Virginia Tech’s Department of Human Resources since 2012. She also is the former director of communications and public relations at North Cross School from 2006 to 2010.

with executive director Linda Oldham. Tracy Vosburgh, associate vice president of university communications at Cornell University, has been named senior associate vice president Vosburgh for university relations at Virginia Tech. Vosburgh succeeded Larry Hincker, who announced his retirement earlier this year after 27 years at Virginia Tech. Mary Leigh Wolfe, professor of biological systems engineering and department head at Virginia Tech, has taken office as the 2015-2016 president of the American Society Wolfe of Agricultural and Biological Engineers (ASABE). Named an ASABE Fellow in 2006, Wolfe has previously served ASABE on a variety of educational and technical committees, as well as the society and foundation boards of trustees. Vitality Business Group has announced that Cody Blankenship, managing director of the firm, has received an affiliate certification by the ReBlankenship source Associates Corporation in Pennsylvania. As an affiliate of the International Network of Senior-Level Business and Executive Development, Blankenship is trained in executive coaching, process development, and discovering personal and organizational values through assessments. Two WVTF Public Radio’s music hosts retired in August. Charlie Perkinson, former host of the nightly “Jazz Tonight” and the weekend “All Perkinson That Jazz,” and Steve Brown, music director and former host of “Morning Classics” and “Afternoon Classics” both announced their retirements from the station after many years of public radio service.

Virginia Tech’s Pamplin College of Business has appointed business information technology professor Cliff Ragsdale as the new academic diRagsdale rector for its Center for Business Intelligence and Analytics. Ragsdale will lead the center together

ROANOKE BUSINESS

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The vision to lead. The courage to innovate.

The heart to serve our community.

CELEBRATING TEN YEARS OF

LOCAL ROOTS On our tenth anniversary, HomeTown Bank wishes to express a very special thanks to our Board of Directors for their continuing vision, guidance, and dedication. Their leadership has provided the foundation for our central mission: local banking that puts people first. Banking on the future by helping our community grow. That’s how we do local.

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