Shenandoah Valley Business Journal by Daily News-Record

A Byrd Newspapers Publication

Volume 15, No. 8, June 30, 2015

Tourism

Keeping Visitors Returning

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, June 30, 2015

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.

Focus Section: Hospitality/Tourism ■ Blazing New Trails . . . . . . . . . . . . . . . . . . . . . . . . .Page 4

Other Business News

Editorial Staff

■ City Credit Union Merges Into DuPont . . . . . . . . .Page 3

Harrisonburg, Va.

By email: svbjnews@dnronline.com

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 Gannon Irons . . . . . . . . . . . . . . . . . Page 7

On The Cover:

■ Investments by Matthew Frakes . . . . . . . . . . . . . . . Page 9

Austin Bachand / DN-R Kendall Phillips pets a goat at Back Home on the Farm, a stop on the Fields of Gold agritourism trail and the Shenandoah Valley Kids Trail, with her mother, Stephanie Phillips, on June 19.

■ Investments by Adam Miller . . . . . . . . . . . . . . . . . Page 3

Contributing photographers: Austin Bachand/ Daniel Lin

McClung Recognizes Employees Of The Quarter WAYNESBORO — Chris Pugh and Michael Miller, both digital press operators, were recently chosen Employees of the Quarter at McClung Cos. Pugh has worked 10 years at McClung and lives in Lyndhurst. Miller has worked two years at McClung and lives in Afton. McClung, based in Waynesboro, provides graphic communication services.

First Bank Hires Leaders For New Locations HARRISONBURG — First National Corp., the parent company of First Bank, has hired two men to fill positions in its newly formed South Region and promoted a third, according to a press release from the Strasburg-based company. Norman C. “Butch” Smiley III has

■ Local Ledger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 10 ■ Real Estate by Tim Reamer . . . . . . . . . . . . . . . . . Page 11

been selected as regional president over the former Bank of America branches in Elkton, Staunton, Waynesboro, Dillwyn and Farmville. First Bank completed its acquisition of the branches in April. Smiley will work out of the company’s regional headquarters in Staunton. He most recently served as president and CEO of Community Bank in Staunton before it was sold. Paul K. Martin has been hired as senior vice president/market executive. He has experience in the Staunton market and will work at the headquarters there, with a focus on developing markets in the immediate area. First Bank also has promoted Jeff Smith, who works in its Harrisonburg loan production office, to senior vice president/market executive. The Dayton native’s primary responsibility is developing the Harrisonburg and Rockingham County markets.

— Vic Bradshaw

Gregory Poole Lift To Purchase Competitor, Additional Businesses HARRISONBURG — A Raleigh, N.C., equipment company has reached agreements to buy three of its competitors, including one with a dealership just south of Harrisonburg. Gregory Poole Lift Systems, a division of the Gregory Poole Equipment Co., announced June 17 that it had struck a deal to buy Dougherty Equipment Co. Inc., VBS Inc. Material Handling Equipment and some assets of Briggs Equipment Inc., according to a press release. Dougherty Equipment, which sells Yale equipment, operates locally at 591 Belle Circle. Gregory Poole Lift Systems is a Caterpillar dealer, providing equipment sales and service for agriculture, construction, forestry, marine, onhighway truck, power generation and material handling customers.

The deals are expected to close Oct. 1. According to the release, Gregory Poole Lift Systems will become the Yale and Hyster product dealer for most of Virginia. — Vic Bradshaw

$100K Awarded To City Tech Co. HARRISONBURG — Two researchers at a Harrisonburg technology firm are among 38 recipients of Commonwealth Research Commercialization Fund awards. Gov. Terry McAuliffe announced the award recipients May 29. Sven Brueckner of Axon AI LLC received $ 50,000 for modeling and simulation research into “Echosight Modeling and Prediction Software,” according to a news release. Axon AI, 2322 Blue Stone Hills See SCENE, Page 3

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, June 30, 2015

The Four Parts Of Medicare City Credit Union Merges Into DuPont By VIC BRADSHAW Daily News-Record

HARRISONBURG

—

The DuPont Community Credit Union recently added 439 members and $1.7 million in assets in a single day. On May 20, the former Walker-Virginia Federal Credit Union for employees of the Walker Manufacturing Co. in Harrisonburg was incorporated into the DuPont credit union, according to a press release. Opened in 1965, the Walker credit union operated in the plant at 3160 Abbott Lane. Its in-plant location was a key factor in the decision for the credit union to cease operations. The press release stated that Tenneco Inc., Walker’s parent company, had determined that the company credit union would need to be moved off-site for safety and security reasons. Jimmy Garber, the Walker credit union’s manager for 40 years, said the organization’s board of directors determined that merging with another credit union was a better

“

We found DuPont Community Credit Union to be the best fit for our members. Jimmy Garber,

Walker-Virginia Federal Credit Union manager of 40 years

option than relocating for cost reasons. Waynesborobased DCCU received federal and state regulatory approval in March. “We found DuPont Community Credit Union to be the best fit for our members,” he said in the press release. Steve Elkins, DCCU’s senior vice president of retail and lending, said his understanding is that Walker looked at other viable credit unions in the Harrisonburg area before making its choice. The DuPont credit union offered a convenience factor in terms of both proximity and number. Its member services branch at 47 W. Kaylor Drive is less than a mile from the Walker factory, and it soon will have three locations in Harrisonburg, one in Woodstock, and seven in Augusta County, Staunton or Waynesboro. “I think probably some members of their credit union were also members of DuPont,” Elkins said, “and they recognized that we have pretty much a full-service offering as well as multiple locations in Harrisonburg to serve their members.” Elkins said Garber and one other person worked for Walker-Virginia Federal Credit Union, and opted to retire when the plant site closed. Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com

Investments

Adam Miller

aving access to affordable health care is critical for many seniors. That’s why it’s important that those approaching age 65 or already 65 or older understand the four parts of the Medicare health insurance program. Before going any further, we need to emphasize that, unless you are disabled, you must reach age 65 to be eligible for Medicare. If you’re younger than 65, you cannot qualify simply because your spouse turned 65, for example: Part A: hospital insurance helps pay for: Inpatient hospital care Hospice care Skilled home-health services for homebound patients It also helps with short-term inpatient care in Medicare-certified skilled nursing facilities,

Scene

but only if you’re there for rehabilitation — not long-term or custodial care. Almost everyone qualifies for Part A at age 65 without incurring a monthly premium. In general, you need to have worked at least 40 quarters (three consecutive months) to qualify for premium-free Part A coverage. You can get 40 quarters by working and paying the Medicare payroll tax for as few as 10 years. You can also qualify for premium-free Part A based on your spouse’s work history. If he or she has at least 40 quarters and is at least 62 years old or deceased, you get Part A for free at age 65. This also works for exspouses if you are now unmarried and your marriage lasted 10 years or longer. If you’re still working at age FROM PAGE 2

Drive, is dedicated to “engineering intelligent products for various markets, and comprised of leading technology developers and commercialization experts,” according to its website. Michael Markulec of Axon Ghost Sentinel Inc. was awarded $ 50,000 for cybersecurity research into “Internet-of-Things Security,” the release says. Axon Ghost Sentinel, a product of Axon AI, is a technology that protects phones, computers, cars and other devices connected to the Internet from cybersecurity threats such as personal information and intellectual property theft. The Commonwealth Research Commercialization Fund awards, which total more than $ 2.8 million, fund targeted areas of promising research and commercialization, including advanced manufacturing, cybersecurity and energy and life sciences, the release says. The awards are managed by the Center for In-

65, you should probably take Part A if you qualify to get it for free, no matter how much you make or even if you have other insurance. If you don’t qualify for Part A for free, you can purchase coverage. Part B: medical insurance provides coverage for: Doctor’s services Outpatient hospital care Medical equipment and supplies All U.S. citizens and legal aliens who have lived in the United States for at least five years qualify for Part B at age 65. No work history is required, but everyone who wants Part B must pay a monthly premium. Although it’s optional, you will almost certainly need Part See MEDICARE, Page 10

novative Technology in Herndon. — Ryan Cornell

Appeal Production Earns Top Honor HARRISONBURG — A local video production company claimed a top honor last month at the Excellence in Marketing Awards, which recognize outstanding achievements by members of the Central Virginia American Marketing Association. Appeal Production earned the top award in online marketing for a video it produced for Rockbridge Area Hospice. The CVAMA includes marketers from the Shenandoah Valley and the Charlottesville, Lynchburg, Roanoke and Blacksburg areas. — Vic Bradshaw See SCENE, Page 8

Tuesday, June 30, 2015

SHENANDOAH VALLEY BUSINESS JOURNAL

Blazing New Trails In The Valley By VIC BRADSHAW Daily News-Record

HARRISONBURG — To say that all trails lead to Back Home on the Farm would be a gross overstatement. But multiple tourism routes have the Rockingham County children’s agritourism hotspot as one of the places a kid might like to visit while in the area. “If people are coming from out of state and they have kids to entertain, the Shenandoah Valley Kids Trail is doing an awesome job,” said Lynne Hess, co-owner of the attraction on Willow Run Road north of Harrisonburg that operates on 60 of the family farm’s 243 acres. “It’s one of the better websites for explaining those kinds of activities. “I think the interests for people coming to visit this are extremely varied, and having trails is a way of honing in on what they really want.” In tourism circles, it seems like the trail is the thing right now when it comes to regional and even local marketing efforts. Tourism officials or private entrepreneurs find businesses or attractions with a common link within a travel area and market them together with the goal of encouraging visitors to make their way from one site to another. Though some trails stay within a single locality’s boundaries, most are multijurisdictional efforts featuring several partners. Many tap into state travel marketing dollars. “Visitors don’t know boundaries,” said Jenna French, who’s been Shenandoah County’s director of tourism and marketing for two years after having led its chamber

Harrisonburg, Va.

Businesses, Tourism Services Find Power In Partnerships biking path that passes through Purcell Park, which is just behind his Bluestone Bike & Run. Mark Nissley operated the South Main Street business as Mark’s Bike Shop for 39 years before Coleman, a longtime customer, bought it last September. The store’s proximity to that trail enables the 30-year-old to allow prospective customers to take a bike or running shoes out for a spin around the Bluestone Trail. “I don’t track it directly,” [Trails are] a he said, logical step that “but I makes it easy for know [the Bluestone the consumer to Trail] has plan their trip to impacted the area. our business and Jenna French, will conShenandoah County tinue to director of tourism do so.” and marketing Most of the business he attributes to the trail is for recreational users as opposed to serious cyclists, Coleman said, and he promotes the trail’s safety and easy riding area. The city’s Parks and Recreation Department created the Bluestone Trail, but Black said she’s co-opted it for tourism use. “I don’t have to recreate that,” she said. “I use it for tourists who want to know what our trails are like, how difficult and safe they are.”

“

Austin Bachand / DN-R

Faye Blacka (right) and her granddaughter, Gabby Haaland, who was visiting from West Plains, Mo., smiles as a goat looks into the camera at Back Home on the Farm on Friday, June 19. of commerce. “They’re looking for everything to do in, quite often, a 90-mile radius. “We’ve found a lot of power in partnering with other tourism destinations and attractions throughout the region. Trails are a great way of packaging everything there is to do in the region in one place that’s easy for the consumer to go and get information in one place.”

Accidental Benefit Some of the trails that wind through the area are huge.

Harrisonburg and Rockingham, Page, Shenandoah and Augusta counties are part of the multi-state Civil War Trails network, and all but Page has ties to the Wilderness Road, which runs the length of western Virginia. Small local artisan trails also crisscross Virginia to form a large network. Business owners in Harrisonburg and Rockingham County are leading the creation of an artisan trail that would join those in Shenandoah, Augusta and Page. Brenda Black, Harrisonburg’s director of tourism and visitor services, said she tried to leverage the Civil War Trail locally by creating Battles on the Home Front, a trail of important Civil War sites in Harrisonburg and Rockingham County. Though his business is linked to the Bike the Valley website, which provides route information for cyclists in five counties and five cities in the southern end of the Shenandoah Valley, Kyle Coleman said Harrisonburg’s Bluestone Trail is the biggest boon for his business. The trail is a one-mile walking and

Do Trails Help? Go Blue Ridge Travel, a for-profit company based in Shepherdstown, W.Va., created the Shenandoah Valley Kids Trail and launched it last year. Businesses pay to be included on the trail, but Hess said the company has provided some value-added services, such as “arranging weekend getaways for mommy bloggers.” Go Blue Ridge Travel also provided her metrics about how many clicked Back Home on the Farm’s link from the See TRAILS, Page 5

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Tuesday, June 30, 2015

Area Trails The following trails include various local jurisdictions or businesses as members:

Harrisonburg Battles on the Home Front Bike the Valley Civil War Trails Fields of Gold Shenandoah Valley Kids Trail Shenandoah Valley Quilt Trail Shenandoah Valley Wine Trail Wilderness Road

Bluestone Bike and Run service manager Erik Jensen works on maintaining a customer’s bike. The store’s owner, Kyle Coleman, says Harrisonburg’s Bluestone Trail is the biggest boon for his business.

Rockingham County Battles on the Home Front Bike the Valley Civil War Trails Fields of Gold Fish Virginia First Shenandoah Valley Kids Trail Shenandoah Valley Wine Trail Wilderness Road Page County Blue Ridge Whiskey Wine Loop Civil War Trails Page County Artisan Trail Page County Grown Shenandoah County Civil War Trails Fields of Gold Fish Virginia First O Shenandoah County Artisan Trail Shenandoah Valley Kids Trail Shenandoah Valley Wine Trail Wilderness Road Augusta County Bike the Valley Civil War Trails Fields of Gold HeART and Soil of the Shenandoah Valley Shenandoah Valley Wine Trail Wilderness Road

Daniel Lin / DN-R

Relatively New Kids Trail, Fields Of Gold’s Impact May Grow Trails

FROM PAGE 4

kids-trail website after a page was set up about the attraction’s Butterfly House. The business, which turns 12 later this year, started as a primarily fall endeavor, with a corn maze, a pumpkin patch, hayrides and the popular 60foot-long underground slide. It had a few winter activities and hosted field trips at other times. The Hesses are evolving Back Home on the Farm into a two-season business, luring more people onto their farm in the summer months. Back Home on the Farm also is part of Fields of Gold, a regional agritourism trail that’s gained broad acclaim as a model program. A listing on that trail is free for a qualifying business, as grant funds have paid for the program to date, but Hess said she hasn’t received data on how many people have found her business because of it. “The people who come don’t always tell us where they heard about us,” she said.

In Shenandoah County, French said she knows artists who have leveraged the O Shenandoah County Artisan Trail for their benefit, and Shenandoah Caverns officials have told her they’ve seen an increase in referrals from the Shenandoah Valley Kids Trail website. Both the kids trail and Field of Gold are relatively new, so their impact should grow as they reach more people. Black said she tries to track interest in sites and trails at the visitor center

by counting the number of brochures given out and monitoring link-clicks on the Harrisonburg tourism website. “Businesses need to ask visitors questions,” she said. “I’m measuring the impact a little differently.” Though trails have been a trend in tourism marketing for a while now, there’s room for more.

See TRAILS, Page 8

Tuesday, June 30, 2015

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Work Toward Your Own Financial Independence Day

t’s almost the Fourth of July — time for fireworks, picnics and a reflection on all the liberties we possess in this country. But if you’re going to enjoy the freedom to do the things you want, especially during your retirement years, you’ll want to take the steps necessary to achieve your own “Financial Independence Day.” Here are a few suggestions for helping you reach that goal: ■ Liberate yourself from debt. For most of us, a certain amount of debt is unavoidable. But the greater control you can gain over your debts, the better off you will be, because any dollars not spent in paying debts can be used to save and invest for your future. So look for ways to cut down on your spending and think about postponing some purchases until you can pay for them in cash. It may not be easy, but it’s possible. And by putting this “found money” to work immediately in quality investments,

you may motivate yourself to keep a lid on your debt level. ■ Unlock the power of time. Albert Einstein once said, “The most powerful force in the universe is compound interest.” Einstein, who knew a thing or two about the nature of time, clearly recognized its importance in investing. In fact, as an investor, time may be your greatest ally. The more years in which you invest, the more dollars you’ll put in, and the longer you’ll have for your investments to potentially grow. Even if you’re just starting out in your career and can only invest a small amount each month, you’ll be starting to accumulate the amount you’ll eventually need to enjoy the retirement lifestyle you’ve envisioned. ■ Release your investments’ growth potential. To attain financial freedom during your retirement years, you will need to invest for growth — it’s that sim-

Tuesday, June 30, 2015

Investments Gannon Irons ple. So include an appropriate amount of growth-oriented vehicles in your overall investment mix. Ultimately, this mix should be based on your risk tolerance, time horizon and specific long-term goals. ■ Free your investments from “clustering.” In the investment world, as in many other arenas of life, you can have “too much of a good thing.” For example, if you own a particular investment, such as a stock, that has done well, you might think that it’s a good idea to own more of the same type of stock. But when investing, duplication can be dangerous, because if a market downturn affects one asset class particularly hard, and much of your portfolio is tied up in that asset class, you could take a big hit. Instead of “clustering” your dollars

around a single asset or two, you could diversify your holdings by owning a mix of stocks, bonds, government securities and other vehicles. While diversification can potentially help reduce the impact of volatility on holdings, a diversified portfolio can’t guarantee a profit or protect you from loss. Achieving any type of freedom, in any kind of endeavor, takes time and effort. That’s certainly the case with financial freedom — you will need to consistently make the right moves, over a period of many years, before you can finally declare your fiscal independence. But once you reach that point, you will likely conclude that your diligence and dedication were well worth it. This article was written by Edward Jones for use by Edward Jones financial adviser Gannon Irons in Harrisonburg. To contact him, call 433-4907

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, June 30, 2015

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FROM PAGE 3

VPAS Representatives Accept Check From Walmart Foundation HARRISONBURG — The Walmart Foundation on June 22 gave representatives of the Valley Program for Aging Services a $35,000 check to spend on its Meals on Wheels program in Harrisonburg and Rockingham County. The check presentation was held at the Walmart Supercenter in Waynesboro. Beth Bland, director for the agency’s Harrisonburg-Rockingham service area, said the money will be spent this year and in fiscal 2016, which begins Oct. 1. VPAS delivers most of its meals five days a week from senior centers in Harrisonburg and Timberville, Bland said. Three days a week, hot meals are

Harrisonburg, Va.

dispatched from the East Rockingham Senior Center in Elkton, with frozen or boxed meals provided during two deliveries to cover the other weekdays. The home-delivered meals, she said, are designed to provide one-third of the recommended daily nutritional needs for seniors. Qualifying seniors in more remote areas of the county are provided frozen meals once a month. Valley Program for Aging Services provides a variety of services for senior citizens in the five cities and five counties it serves, including transportation, Medicare counseling, in-home personal care and chronic disease selfmanagement education. It operates eight senior centers throughout the region, including two in Rockingham County and one in Harrisonburg. Daniel Lin / DN-R

— Vic Bradshaw

Incoming JMU freshmen Jozef Heerschap of Mount Solon (left) and Edwin Chavez of Weyers Cave, look over mountain bikes with the help of Bluestone Bike and Run service manager Erik Jensen.

Jobless ‘Thaw’ Continues: Valley Sees Drop In Springtime Unemployment By VIC BRADSHAW Daily News-Record

HARRISONBURG — The trend of a thaw in the job market each spring continued in April. Unemployment fell notably throughout the region in April, even as the state’s unemployment rate was flat and the national rate ticked downward only slightly, according to data released last week by the U.S. Bureau of Labor Statistics. Harrisonburg’s rate dropped to 5.1 percent in April, down from 5.7 percent in March. The city posted the same 5.1 percent unemployment rate last April. Rockingham County’s jobless rate dropped half a percentage point to 4.1 percent, which was slightly above the 3.9 percent rate recorded in April 2014. Combined, the unemployment rate for the Harrisonburg metropolitan area was 4.4 percent in April, the same as last April but well below the 5 percent mark recorded in March. The monthly job market improve-

ment was most notable in Page County, where the jobless rate plunged to 6.9 percent from 8.4 percent in March. Last April’s rate was 7.7 percent. Shenandoah County posted a 4.5 percent rate in April, down from 4.9 percent the previous month and 4.8 percent a year earlier. In Augusta County, joblessness reached a rate of 4.2 percent. It was 4.8 percent in March and 4.4 percent last April. Unemployment in Virginia was 4.8 percent in April, the same rate recorded in March but 0.5 percentage points below the previous April’s rate. Nationally, joblessness dropped 0.1 percentage points from March to April, settling at 5.4 percent. That easily bested the 6.2 percent unemployment rate posted in April 2014. State and national rates are adjusted to reflect the seasonal changes in the job market. Rates for localities are not seasonally adjusted.

W.Va.-Based Biz Provides Value-Added Services Trails

FROM PAGE 5

Valley tourism officials discuss cooperative marketing at monthly meetings, French said. They’re considering launching a trail for wine, beer and spirits, with work on that effort tentatively set to start in the fall. For Back Home on the Farm, trails are a way to compliment the rack cards and other marketing materials the attraction has at key sites in the community, Hess said. The business also has a presence on Virginia’s and the city’s tourism websites. Because she sees the value in crossover promotion between different trails, such as a trail for adults linking to one with kids’ attractions, Hess said she’d like to see the efforts “meshed together” in some way. The number of trails likely will rise, French said, but some will change as the years go by. For example, she said the

classifieds get results Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com call

574-6210

Shenandoah Valley Wine Trail probably would evolve into the wine, beer and spirits trail. “I think it’s really something that will continue to grow over time,” she said of trail programs. “We don’t want to inundate the consumer with a million trails, but with the way travel planning is evolving, this is a logical step that makes it easy for the consumer to plan their trip to the area.” Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com

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SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Investments Matthew R. Frakes

Putting Financial News — Good Or Bad — In Context

nvestors’ reaction to economic news can be baffling. For example, positive economic announcements, such as an uptick in gross domestic product, stronger-thanexpected earnings by bellwether companies or a drop in unemployment are sometimes followed by a market sell-off. If the market’s negative response to seemingly good news has left you wondering if you are missing something, you are not alone.

Are Markets Rational? The evolving field of behavioral finance may provide some explanation for seemingly irrational investor responses to good or bad economic news. The discipline seeks to combine behavioral and cognitive psychological theory with conventional economics and finance to understand why people make irrational financial decisions. Practitioners have identified a set of behavioral biases that may explain apparently unreasonable market movements. These include, but are not limited to: Fear of Regret and Loss Aversion: The threat of potential disappointment or short-term loss are powerful forces that often inspire second-guessing of portfolio strategies, frequently causing investors to sell winning positions too soon or to hold losing positions too long. Overconfidence: Self-confidence might make people happier, but it doesn’t make them better investors. Overconfident investors

tend to overestimate their knowledge, underestimate risks, and exaggerate their ability to control events. Anchoring: This behavior involves basing decisions — anchoring them — on events or estimates even though they may not reflect relevant long-term trends or statistical probabilities.

Focus On What Matters A landmark study by the New York Federal Reserve on the effect of economic news on the markets may add additional perspective. “How Economic News Moves Markets” suggests that only a handful of economic announcements — nonfarm payroll numbers, GDP advance release and a private sector manufacturing — affect prices in significant and systematic fashion, while most other releases tend to generate erratic or insignificant price responses. Generally, it’s advisable to avoid trading on news alone, as it is impossible to consistently gauge investor reaction. Also, markets tend to trade on future expectations over the long term, so keep that in mind as you confront the aftermath of news-related trading volatility. Above all, successful investing requires a long-term perspective. Article written by Wealth Management Systems Inc., courtesy of Matthew R. Frakes, financial adviser, The Frakes Group at Morgan Stanley in Harrisonburg. Call 540-438-7909 or visit www.morganstanleyfa.com/thefrakesgroup.

Tuesday, June 30, 2015

Rocking R Ace Hardware Honored For Being ‘Cool’ Receives Award From Parent Organization By VIC BRADSHAW Daily News-Record

HARRISONBURG — Take a traditional hardware store, toss in Ladies Night and other special events, add features such as locally sourced seeds and what do you get? In the world of Ace Hardware stores, you get cool, Rocking R-style. Rocking R Ace Hardware of Harrisonburg was honored June 16 by its parent organization with one of its four “Coolest Hardware Store” awards. Its selection was announced at the company’s annual Platinum Conference held in Las Vegas. The South High Street store — along with locations in Savannah, Ga.; Webb City, Mo.; and San Luis Obispo, Calif. — were selected for the award from more than 4,800 locally owned and operated Ace stores worldwide. It’s the fifth year the company has recognized its “cool” stores. “I’ve been wanting us to win this award since they’ve had it,” store manager Bill Freeman said late Friday morning as customers bustled around the store. “So, I guess you could say that finally, finally we were recognized by the Ace Hardware family that we were cool.” Freeman said he didn’t know Rocking R had won the award until it was announced Tuesday. Division manager Brian Osborne nominated the store for the honor. However, Freeman wasn’t particularly shocked that the store won. Nor was one longtime employee. “When we won, it wasn’t like it was a surprise or anything,” said Rockingham County resident Chuck Allen, 52, who’s worked in customer service at the store for 20 years. “This has always been my favorite store even before I started here.”

Birth Of The Cool Rocking R was founded in 1935 as part of Rockingham Milling Co., with its current name established in 1966. It’s now affiliated with Rockingham Cooperative,

which bought Rockingham Milling in 2010. A key reason Rocking R caught the attention of Ace judges was the special events the store holds, Freeman said. Throughout the year, it holds Ladies Night, tool shows, bird seminars and adopt-a-pet days in conjunction with the Rockingham/Harrisonburg SPCA. Saturday’s event was Grillin’ & Chillin’ for Father’s Day. The store, he added, also offers an expanded tool department aimed at meeting the varying needs of local clients, a large backyard bird center, and the popular local Wetsel seed brand. He was busy Friday planning to switch a seasonal display section from garden and patio items to canning supplies. Matt, Angela, Reece and Katarina Coleman of Mount Solon were among the customers at Rocking R. They stopped for garden supplies and bird feed, including pouring bags from the bulk seed bins. “We came here a couple of months ago and got bird feeders,” Matt Coleman said. “We’ve got about a hundred birds coming now.” Katarina, 12, said many of the family’s new feathered friends are finches because those are the types of feeders they bought. “I do think it’s cool,” Matt Coleman said of the store. “They have a little bit of everything.” Service was another big factor in Rocking R’s favor, Freeman said. His employees try to get to know their customers and care about them. “The small stores like this, we want to beat that big-box store,” he said. “If we’re competing against the big-box stores, we’ve got to do it with service. “It’s all about convenience. We’re a convenience hardware store.” “Chop” Hill of Mount Crawford attested to the store’s commitment to service. He said he’s been shopping at Rocking R for “30 years probably,” stopping in at least monthly but sometimes as often as twice a week. “What makes them cool is the personnel,” he said. “If you want good, personal service, you’ve got to come here.” Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, June 30, 2015

Local Ledger

Part D Drug Coverage Optional, Private Not Public Medicare

FROM PAGE 3

B, even if your employer lets you carry health insurance into retirement. In general, if you turn down Part B, you can change that decision only during general enrollment or special enrollment periods. Part C: Medicare Advantage provides the option to buy government-subsidized insurance from the private sector rather than using the traditional government Medicare coverage. Depending on where you live, your Part C options can include health maintenance organizations, preferred provider organizations, private fee-forservice plans, and Medicare medical savings accounts. Individuals with Part C usually have lower deductibles and co-payments than those with the traditional fee-forservice Medicare and get more benefits. However, Part C plans typically restrict your choices of health care providers, and you may have to pay a monthly premium. Part D: prescription drug coverage is optional and comes from a private company, not directly from the government. If you have Part A, Part B, or both, you qualify for Part D. If you choose to participate, the Part D company you select will charge a monthly premium.

Medicare vs. Medicaid In addition to understanding the four parts of Medicare, it’s important to know the difference between Medicare and Medicaid. Medicare is a health insurance program that virtually all U.S. residents aged 65 or older qualify for. Medicaid, on the other hand, is a medical assistance program only for those who meet the program’s low-income and low-asset eligibility requirements. This ar ticle was written by/for Wells Fargo Advisors and provided cour tesy of Adam D. Miller, financial adviser in Harrisonburg. To reach Miller, call 434-9926

Harrisonburg, Va.

Unemployment (percentage) Harrisonburg Rockingham County Page County Shenandoah County Augusta County Staunton Waynesboro

April 2015 5.1 4.1 6.9 4.5 4.2 4.7 5.1

Home Sales

March 2015 5.7 4.6 8.4 4.9 4.8 5.1 5.6

April 2015 5.1 3.9 7.7 4.8 4.4 4.6 5.1

Source: Virginia Employment Commission

Labor Force Harrisonburg Rockingham County Page County Shenandoah County Augusta County Staunton Waynesboro

April 2015 24,236 41,488 11,950 21,440 36,797 11,848 9,942

March 2015 24,142 40,892 11,645 21,246 36,653 11,866 9,990

April 2014 24,312 41,460 12,078 21,274 37,320 12,027 10,105

Median Price Harrisonburg Rockingham County Shenandoah County Page County

May 2015 $160,000 $198,950 $163,950 $168,450

May 2014 Pct. Change $169,950 — 5.85 $170,000 17.03 $177,690 — 7.73 $100,000 68.45

Days On Market Harrisonburg Rockingham County Shenandoah County Page County

May 2015 77 76 177 165

May 2014 Pct. Change 60 28.33 92 — 17.39 130 36.15 161 2.48

Units Sold Harrisonburg Rockingham County Shenandoah County Page County

May 2015 32 74 48 10

May 2014 Pct. Change 31 — 3.13 74 0.00 43 11.63 13 — 23.08

Sources: Funkhouser Real Estate Group; RealEstate Businesss Intelligence

Source: Virginia Employment Commission

Retail Sales (in millions) Building Permits* May 2015 Permits Estimated Issued Cost

Harrisonburg 14 Rockingham County 53 Page County 2 Augusta County 19

$1.7M $12.0M $403,651 $3.7M

May 2014 Permits Estimated Issued Cost

5 $620,770 33 $6.5M N/A N/A 24 $5.2M

April 2015 $109.3 $ 51.0 $ 14.9 $ 36.3 $ 34.6 $ 34.2 $ 44.3

Harrisonburg Rockingham County Page County Shenandoah County Augusta County Staunton Waynesboro

Source: Virginia Department Of Taxation

Source: censtats.census.gov/bldg/bldgprmt.shtml *Permits are for residential construction only, single- and multifamily buildings, as recorded by the U.S. Census Bureau. The figures do not reflect the actual number of units associated with each permit issued for multifamily construction.

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SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, June 30, 2015

1,122 Words About Asphalt: What SE Connector Will Mean

ext month, a group of officials is expected to gather to cut a ribbon in celebration of the opening of 6.1 miles of pavement. The Southeast Connector creates a link among every commercial corridor from Va. 42 to Spotswood Trail and stands as a largely overlooked and underestimated infrastructure change. In reality, the celebration is well deserved, because it is a lot more than just a new road; it likely represents the next stage in growth and development and will help shape the future landscape of the Harrisonburg metro area. By now you’ve undoubtedly noticed the Southeast Connector punching out onto U.S. 33 and probably even driven on the balance of the finished project. If so, you know at its closest point, the connector is a few miles away from the heart of East Market Street, which is Harrisonburg’s primary commercial corridor. A distance that now represents an eternity for retailers and site selectors — and this is an important point. As a matter of context, East Market Street, specifically the section between Interstate 81 Exit 247 and University Boulevard, has been the primary target for national retail and restaurants. Any business that required the highest visibility and was willing to pay for it (nearly $1 million per acre on average), scouted out locations on this small stretch of road. After all, the road is surrounded by other national retailers, an interstate interchange, with excellent population in close proximity and produces 30,000 cars per day. As it stands, few opportunities remain for redevelopment in this area and roads like Reservoir and University have been the recipients of the spillover. As favorable as it may be, the point of referencing East Market Street isn’t for the purpose of making a comparison to the Southeast Connector. Rather, it is to suggest that from a commercial perspective, the perception that retail development should be limited to one corridor in Harrisonburg is like owning a Ferrari with a brick mounted under the gas pedal. Some restraint is good, but only allowing it to go 25 mph is a frustrating waste of resources. As a regional hub, commercial demand in Harrisonburg is high, but the opportunity for new development has been relatively low … until now. The Southeast Connector effectively serves to connect commercial areas, lessen scarcity, and permit new development opportunity. More specifically:

Real Estate Tim Reamer

1. It Stretches Current Corridors Retail follows population centers (whether residential or employment) and the easiest way to understand where people are moving throughout the day is by traffic counts. As it stands now, both East Market Street and Port Republic Road have strong traffic counts that fade slightly as traffic moves farther from commercial development. But, what if they didn’t fade? What if there was a major road and new commercial development that also attracted traffic at the other end? It would be reasonable to assume that traffic counts would remain relatively steady, and over time, possibly even increase allowing retailers to expand the search parameters beyond a small stretch of East Market Street.

2. It Creates a New and Needed Corridor The Southeast Connector already is attracting national retailers because it neighbors a regional hospital, is connected to every primary commercial corridor, is closer to an affluent and higher density population, and is expected to produce significant traffic counts. The average price per acre is a couple hundred thousand dollars less than East Market Street for available pad ready land, which also helps an already pretty compelling case. More importantly, the Southeast Connector and associated developments reflect a residential pattern that changed a while ago. Over the last decade and a half, residential development has been largely concentrated in one area. Student housing, townhomes occupied by young professionals, and a wide variety of single family residential ranging from middle income to upscale options have all been constructed in large numbers on the east side of Harrisonburg. This area represents the highest percentage of population growth in one of the fastest-growing cities (on a percentage basis) in the commonwealth of Virginia. While residential development has

slowed over the last several years, it is not unreasonable to expect the east side of Harrisonburg, which includes developments ready to resume, in addition to raw land along Port Republic Road, will be the preferred area once new housing construction begins again in earnest. Think of connectivity before social media — fan or not, you have to admit more information and more conversation is occurring every day as a result. The value and content of the conversation may be questionable for some, but the results are clear. It’s not a stretch to think of the Southeast Connector as having a similar effect. Without question, the new road will serve to shorten drive times, which in turn will serve to connect neighborhoods to areas and businesses to which they may not have previously been connected. We all have limitations on how far we’ll drive to get to a business — many prefer the Dayton Wal-Mart to the Harrisonburg Crossing version, but as a matter of convenience, many on the east side select the closer location. No longer.

3. Allows Market To Capture What It Should Early traffic studies estimate 31,100 cars will travel the Southeast Connector daily after some commercial development — making it the most heavily traveled road in Harrisonburg and one of the highest traffic

counts in the Shenandoah Valley. National restaurants and retail will likely take notice (and some already have), especially at the junctures already producing high traffic counts like Port Republic Road and Spotswood Trail. Development plans are already taking shape, the largest of which is the 105-acre Stone Port development (Neighborhood Market, Bojangles, Wendy’s), but others like Preston Lake and Coffman’s Corner are in various stages of development. In essence, if you want some of the brands you’ve been wishing for (Aldi, Carrabbas, Chuck E. Cheese’s, and you know the others) you should be thrilled about the Southeast Connector. The completion of the Southeast Connector is likely to represent more than just a cost-effective alternative for local and national businesses.Iit is more likely to signify a shift in the path of progress for commercial development in the region for a few reasons. First, commercial development follows residential development, and the east side of Harrisonburg has been the primary source of residential development for a decade. Additionally, space on traditional retail corridors (East Market, Reservoir) is limited and prices reflect this fact. Lastly, much of the development on the Southeast Connector will meet or exceed retailer’s standards previously only found in the East Market Street area, but land is at a lower price point (for now). As larger retailers recognize this opportunity, others are likely to follow. Tim Reamer provides commercial real estate brokerage and consulting services with Cottonwood Commercial and specializes in retail representation, investment property (multifamily | commercial | NNN), and development projects. Learn more at www.timreamer.com.

Tuesday, June 30, 2015

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.