Business Journal March

A Byrd Newspapers Publication

Volume 19, No. 5, March 27, 2018

Spotlight

on:

ure t c e t i h c Ar n & Desig Page 8

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SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, March 27, 2018

Inside This Issue Focus Section: Architecture The Shenandoah Valley Business Journal is a monthly publication of Rockingham Publishing Company, Inc., 231 S. Liberty St., Harrisonburg, VA 22801.

■ Architects Aim For High Standards........................Page 8

Other Business News ■ Some Fares Lowered At SVRA............................Page 6

Editorial Staff

■ BRC Closing In On Fundraising Goal.................. Page 12 ■ Shenandoah Valley Organics Buys Land............ Page 14 ■ Phlebotomy Program Comes To Hospital.......... Page15

Managing Editor: Jerry Blair

Columns

By email: svbjnews@dnronline.com By fax: 433-9112 By phone: 574-6281 (news) 574-6229 (ads) On The Cover:

■ Financial Focus with Kathy Armentrout..........Page 3

Contributing Photographers: Daniel Lin, Nikki Fox

HARRISONBURG — The retirement of two longtime executives is prompting an organizational restructuring for F&M Corp. and the promotion of four employees, the company announced in March.

Neil Hayslett, the Timberville-based company’s executive vice president and chief administrative officer, has been promoted to chief operating officer.

Chief Financial Officer Carrie Comer, Ed Strunk and Josh Hale each have been named executive vice presidents.

Strunk steps up to chief credit officer from chief lending officer to guide the new credit administration department, while Hale moves to chief lending officer from business development leader.

The executive shuffle was triggered by the retirements of Dean Withers, the company’s president and CEO, and

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

■ Local Ledger................................................... Page14

Staff / Contributing Writers: Vic Bradshaw, Ryan Cornell

Four F&M Executives Promoted

Contact us

■ Hiring Veterans A Plus For Employers................. Page 7 ■ Students Get Tour Of Bank................................. Page 11

Editor and General Manager: Peter S. Yates

Harrisonburg, Va.

■ Market Prep with Stephan Hess.....................Page 5

Larry Caplinger, executive vice president and chief lending officer.

F&M is the parent company of Farmers & Merchants Bank, VBS Mortgage and VSTitle.

— Vic Bradshaw

Augusta Recognizes Leaders HARRISONBURG — John Downey and Valley Pike Farm Market are among the winners of 2018 Business Excellence Awards from the Greater Augusta Regional Chamber of Commerce.

Downey, president of Blue Ridge Community College in Weyers Cave, was scheduled to receive the Business Leadership Award during the chamber’s See MOVERS, Page 6

Rosetta Stone Nears Break-Even HARRISONBURG — After running in the red for years, Rosetta Stone (NYSE: RST) moved close to the breakeven point in 2017 despite declining revenues as its repositioning and restructuring continue to produce results.

The technology-based learning solutions company headquartered in Alexandria reported on March 7 that it posted net income of $2.4 million, or 11 cents a share, in the fourth quarter.

That bested the $5.6 million, or 25 cents a share, it recorded during the last three months of 2016.

Revenue from Lexia, Rosetta’s language-literacy segment, jumped 23 percent year-over-year to a record $12 million.

Total revenue for the quarter

Gaines Group project manager Deborah Smith works in the firm’s Harrisonburg office.

Daniel Lin / DN-R

dropped to $44.8 million from $51.7 million, but expenses were lowered by $6.7 million.

For the year, the company posted a loss of $1.5 million, or 7 cents per share, compared to a loss of $27.6 million, or $1.25 a share.

Rosetta Stone was founded in Harrisonburg and maintains a workforce here.

— Vic Bradshaw

CrossKeys Wine One Of Va.’s Best HARRISONBURG — A CrossKeys Vineyards win was announced as one of the state’s 12 best wines in the 2018 Virginia Wineries Association Governor’s See SCENE, Page 3

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, March 27, 2018

3

What Should Investors Know About Recent Volatility?

A

s you may have heard, the stock market has been on a wild ride lately. What’s behind this volatility? And, as an investor, how concerned should you be?

Let’s look at the first question first.

What caused the steep drop in stock prices we experienced on a few separate days?

Essentially, two main factors seem to be responsible. First, some good economic news may actually have played a significant role. A 17-year low in unemployment and solid job growth have begun to push wages upward.

These developments have led to fears of rising inflation, which, in turn, led to speculation that the Federal Reserve will tighten the money supply at a faster-than-expected rate. Stocks reacted negatively to these expectations of higher interest rates.

The second cause of the market volatility appears to be simply a reaction to the long bull market. While rising stock prices lead many people to continue buying more and more shares, some people actually need to sell their stocks — and this pent-up selling demand, combined with short-term profit-taking, helped contribute to the large sell-offs of recent days.

Now, as for the question of how con-

cerned you should be about this volatility, consider these points:

■ Sell-Offs Are Nothing Unusual We’ve often experienced big sell-offs, but they’ve generally been followed with strong recoveries. Of course, past performance is not a guarantee of future results, but history has shown that patient, persistent investors have often been rewarded.

Financial Focus Kathy Armentrout

■ Fundamentals Are Strong While short-term market movements can be caused by a variety of factors, economic conditions and corporate earnings typically drive performance in the long term.

Right now, the U.S. economy is near full employment, consumer and business sentiment has risen strongly, manufacturing and service activity is at multiyear highs, and GDP growth in 2018 appears to be on track for the best performance since 2015.

Furthermore, corporate earnings are expected to rise this year.

So, given this background, what’s your next move? Here are some suggestions:

■ Review Your Situation You may want to work with a financial professional to evaluate your portfolio to

determine if it is helping you make the progress you need to eventually achieve your long-term goals.

Reassess your risk tolerance. If you were unusually upset over the loss in value of your investments during the market pullback, you may need to review your risk tolerance to determine if it’s still appropriate for your investment mix.

If you feel you are taking on too much risk, you may need to rebalance your portfolio. Keep in mind, though, that by “playing it safe” and investing heavily in vehicles that offer greater protection of principal, but little in the way of return, you run the risk of not attaining the growth you need to reach your objectives.

■ Look For Opportunities A market pullback such as the one we’ve experienced, which occurs during a period of economic expansion and rising corporate profits, can give long-term investors a chance to add new shares at attractive prices in an environment that may be conducive to a market rally.

A sharp market pullback, such as we’ve seen recently, will always be big news. But if you look beyond the headlines, you can sometimes see a different picture — and one that may be brighter than you had realized.

This article was written by Edward Jones for use by Kathy Armentrout, an Edward Jones financial adviser at 560 Neff. Ave., Suite 100, Harrisonburg; 540-574-1013.

CrossKeys Vineyards’ Ali d’Oro Dessert Wine One Of 12 Top-Scoring Entries Scene

FROM PAGE 2

Cup Virginia Wine Competition Cup. The Cross Keys winery’s Ali d’Oro dessert wine was one of the 12 top-scoring wines in the competition, a group that forms the Governor’s Cup Case.

Wine included in the case is used to help market Virginia wines, including being presented by Gov. Ralph Northam on marketing missions on behalf of the industry.

Crozet winery King Family Vineyards took top honors, the Governor’s Cup, for its 2014 Meritage.

The competition was conducted over

four weeks in January and February, with the top wines announced during a March gala in Richmond. One hundred Virginia wineries entered 442 wines in the competition.

— Vic Bradshaw

First Bank Boosts Minimum Wage HARRISONBURG — First Bank & Trust Co. has announced that it will boost its minimum wage to no less than $15 an hour.

In making the announcement Feb. 22, the Abingdon-based financial ser-

vices company said it’s using 30 percent of its savings from the Tax Cuts and Jobs Act of 2017 that Congress passed in December to up its minimum pay rate for its workers. The legislation reduced the corporate tax rate to 21 percent from 35 percent.

“The new corporate tax rate provides us with the opportunity to take care of our employees, who are our most important asset,” William Hayter, the company’s president and CEO, said in a news release.

“By reinvesting in our employees, we are putting money back into the communities we serve and energizing the

economy. It’s a win for everyone.”

First Bank & Trust has branches in Harrisonburg and Bridgewater among its 17 in Virginia and also operates a loan-production office in Woodstock.

— Vic Bradshaw

United Bankshares Ups Dividend HARRISONBURG — United Bankshares’ (NASDAQ: UBSI) board of directors has declared a first-quarter dividend of 34 cents per share, 1 cent above See SCENE, Page 4

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SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, March 27, 2018

Harrisonburg, Va.

United Bank Operates 142 Offices In Va., W.Va., Washington, Md., Pa., Ohio Scene

FROM PAGE 3

the dividend it paid a year ago. The dividend will be paid on April 2 to shareholders of record as of March 9.

Headquartered in Charleston, W.Va., and Washington, D.C., United Bankshares is the parent company of United Bank, which operates 142 offices in Virginia, West Virginia, Washington, Maryland, Pennsylvania and Ohio.

It has local branches in Harrisonburg, Bridgewater, Broadway, Elkton, Weyers Cave, Woodstock and Strasburg.

— Vic Bradshaw

Blue Ridge Bank Sees Record HARRISONBURG — Blue Ridge Bankshares Inc. (OTC Pink: BRBS) recorded record earnings in 2017 thanks largely to its acquisition of River Bancorp Inc. The Luray-based parent company of Blue Ridge Bank posted net income of $286,000, or 10 cents a share, for the

fourth quarter despite $545,000 in onetime expenses related to the Tax Cuts and Jobs Act of 2017 and the purchase of a consumer loan pool and a majority stake in a payroll processing company.

The performance still was better than the fourth quarter of 2017, when it lost $405,000, or 18 cents a share.

For the year, the company netted $3.35 million, or $1.22 per common share, far better than the $688,728, or 31 cents a share, it earned the previous year.

The company declared a fourth-quarter dividend of 8 cents, up from 7.83 cents a year earlier.

Blue Ridge Bank operates eight branches around Virginia, including offices in Harrisonburg, McGaheysville, Luray and Shenandoah.

getting a dividend bump.

The parent company of First Bank announced that it would pay a dividend of 5 cents a share on March 16 to shareholders of record as of March 2. That is up from the dividend of 3.5 cents per share the company paid in the first quarter of 2017.

Headquartered in Strasburg, First National has 15 bank branches in the Shenandoah Valley and Central Virginia, including offices in Elkton, Mount Jackson, Woodstock and Strasburg.

It also operates a loan production office in Harrisonburg, First Bank Wealth Management, and First Bank Financial Services, which invests in entities that provide investment services and title insurance.

— Vic Bradshaw

— Vic Bradshaw

Augusta Launches New Website

First National Raises Dividend HARRISONBURG — First National Corp. (OTC: FXNC) shareholders are

HARRISONBURG — Augusta County Economic Development & Tourism’s web presence now has a new look.

The county announced March 8 that the new tourism website is live. It includes a new tagline, “All Augusta, All Outside,” and aims to focus on scenic views the county offers. The new site highlights the counties largest tourism assets, including outdoor recreation, scenic drives and motorcycle tours, farms, craft beer, antiques, food, wine and attractions.

The new site also offers weekend and weeklong itinerary ideas for visitors and includes information on the Augusta County’s diverse lodging options.

For more information, visit visitaugustacounty.com.

— Staff Reports

Tax Cut Boosts Shentel Earnings HARRISONBURG — Thanks largely to savings from new tax rates on corporations, Shenandoah Telecommunications Co. (NASDAQ: SHEN) posted See SCENE, Page 5

Phone

No. of Employees

% of work subcontracted

% of work from bids

Top Exec.

Year Est.

rcia l

Res ide n a l

Lantz Construc on Co.

539 S. Main St., Broadway

896-8911

120

50

50

Chris Weaver President & CEO

1960

Y

Some

Kjellstrom & Lee Construc on

2815-A N. Augusta St. Staunton

885-9980

120

80

20

Fulton, Sensabaugh, Jr.

1961

Y

3588 Early Road, Harrisonburg

434-7376

98

85-90

70

Tony E. Biller, CEO

1908

Harman Construc on Inc.

1024 Pleasant Valley Road, Harrisonburg

434-4459

65

70

35

Carl Harman, CEO; Wayne Witmer, President

Harrisonburg Construc on Inc.

011-A John Wayland Highway Dayton

434-9560

35

50

50

4562-D S. Valley Pike, Hburg

437-9370

26

30

90

Nielsen Builders Inc.

County Line Construc on

ona

Cer fica ons or special es?

Y

Y

LEED cer fied, ASHE, CM/GC, Commercial, Industrial, PEMBs, Residen al, DB, Specialty & Small

N

Y

Y

Building informa on modeling (BIM), LEED cer fied, construc on management, general construc on, preconstruc on services

Y

N

Y

Y

LEED cer fied, construc on, construc on management, small projects

1971

Y

N

Y

Y

Associa on of General Contractors, Tilt-up Concrete Associa on, LEED professionals on staff

Rick Kiser

1987

Y

Y

Y

N

Sherman Knicely

1998

Y

Y

Y

N

Ins

tu

Design -build firm?

Com

Name Number

l

Address

me

GENERAL CONTRACTORS

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, March 27, 2018

5

What Trusted Contact Rule Means To You

T

he next time you talk to your financial adviser you may be asked a new question: “Would you like to add a trusted contact person to this account?” This is a significant change because up until now privacy restrictions would have prohibited your financial adviser from contacting anyone other than you about your account.

As of Feb. 5, all of that has changed with the new FINRA Rule 2165.

No, this doesn’t mean that your financial adviser has permission to tell everyone about you or your finances. Those privacy requirements are still in place.

This new rule has to do with the increase of financial fraud and identity theft.

It’s a growing problem and especially an issue as we age. Studies show that our ability to process financial information begins to decline, especially after age 70.

Nobody wants to admit this of course, but it happens.

So, here’s the deal — there are a lot of people out there trying to separate you from your money and every day they seem to get more creative.

Most of us are aware of those anonymous emails and calls telling us to send our personal information to claim a prize or money to Nigerian princes, but it gets

even worse.

Unscrupulous contractors, caregivers, and even family members can be in a position of influence over you. Its unrelenting and on your own you may easily become their next victim.

The sums of money that people give to these people are absolutely mind blowing.

A good financial adviser should know you extremely well. They should know your voice, your personality, information about your family and most importantly your financial habits.

When you have this kind of relationship with your financial adviser it means that when an uncharacteristic financial request occurs, like asking to send a hefty sum of money to some unknown person or organization, it’s going to raise a red flag.

With the new Trusted Contact Person rule, if your financial adviser gets a sense that something isn’t right or that you are being taken advantage of or are becoming extremely susceptible to it, they are now permitted to step in and assist.

If money was requested, he or she might decline your request until more information is gathered. If your questions or requests generate a concern for your well-being, then they can reach out to the

NTelos Purchase Cited For 2016 Loss Scene

FROM PAGE 4

blockbuster fourth-quarter earnings, according to results released March 15.

The Edinburg-based company best known as Shentel netted $60.6 million, or $1.23 per share, in the final quarter of 2017. That compared to the net loss of $200,000 the company posted a year earlier.

Shentel attributed approximately $53.4 million of that income to a onetime noncash tax benefit in its net deferred tax liabilities tied to the legislation that reduced the corporate tax rate to 21 percent from 35 percent.

Total operating income for the quarter was $18.1 million, up $5.9 million

from the fourth quarter of 2016.

For the year, Shentel recorded earnings of $66.4 million, or $1.35 a share, compared to a loss of $895,000, or 2 cents a share, the previous year.

The 2016 loss was attributed mainly to costs associated with the integration of nTelos Holding Corp. customers into Shentel’s network.

Shentel completed its acquisition of the Waynesboro-based wireless provider in May 2016.

Shentel shareholders receive a dividend of 26 cents per share in the fourth quarter, its 58th consecutive year of paying a dividend.

— Vic Bradshaw

Market Prep Stephan Hess

person you designated as a “Trusted Contact.”

Most advisers are now receiving specific training for this so that they can be more aware of the latest scams and the signs to look out for. I’m sorry that we must even have this conversation, but

this is the new reality.

Personally, I think the “Trusted Contact” is a good thing. What do you think?

Stephan Hess is a certified financial planner at Hess Financial, 380 E. Market St., Harrisonburg; 540-246-0122; www/Hess-Financial.com.

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SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, March 27, 2018

Community Foundation Earns Nonprofit Award Movers

FROM PAGE 2

annual meeting on March 21 in Staunton. Valley Pike Farm Market, the Weyers Cave retail and event center, was selected to receive the Small Business Excellence Award.

Three winners are based in Verona: Ball Advanced Aluminum Technologies, the Large Business Excellence Award; Matt Ledford of Daikin Applied, Young Professional Award; and Tom Jorgenson of Bradford Staffing, Ambassador of the Year.

The Community Foundation of the Central Blue Ridge was selected for the Nonprofit Excellence Award, while Waynesboro’s Hutchins & Hutchins will receive the Woman-Owned Business Excellence Award.

— Vic Bradshaw

Harrisonburg, Va.

United Lowers SVRA Connecting Fares

By VIC BRADSHAW Daily News-Record

HARRISONBURG — The first flight of the Shenandoah Valley Regional Airport’s new carrier has yet to take off, but some prices to fly out of the Weyers Cave aerodrome have already dropped.

Greg Campbell, the airport’s executive director, said United Airlines recently reworked fares on connecting flights to the market’s most-traveled cities. Some of the drops totaled hundreds of dollars.

SkyWest Airlines — the St. George, Utah, company that’s the largest regional carrier in America — begins flying as United Express on April 3 between the Weyers Cave airport and Washington Dulles International Airport in Northern Virginia and Chicago O’Hare International Airport.

Its first fully scheduled day is April 4.

“They gave us really good pricing to

O

Chicago and Dulles,” Campbell said.

“Within the past few days, we’ve observed that they’ve revised many of the fares to many of the destinations you can connect to.

“In some cases, there were $200 to $300 fare drops.”

Campbell wouldn’t quote specific rates for trips to various markets because how far in advance a traveler buys a ticket, whether he stays over on a Saturday and other factors can affect the cost of a ticket.

But he said airport staff members noticed the marked differences in fares to most, if not all, of the top 30 to 35 markets Shenandoah Valley residents visit.

Boston, New York, Los Angeles, San Francisco, Dallas, St. Louis and Orlando, Fla., are among the destinations affected by the price change.

The reduction was expected. Campbell said United had pledged to review the rates to make sure they were competitive.

O

“They committed to us that over the first few months, they would be taking a look at those [rates] and would be making adjustments they thought were needed,” he said.

“We wanted to make sure that folks could justify flying locally.”

SkyWest is replacing Via Airlines as SVRA’s regional carrier. Orlando-based ViaAir provides service to the hub at Charlotte Douglas International Airport in North Carolina, but reliability problems led the U.S. Department of Transportation to cease service 17 months into a two-year contract.

To serve SVRA under the federal Essential Air Service program, SkyWest will receive a federal subsidy of up to $2.9 million per year.

ViaAir could receive up to $3.8 million in federal support under its contract.

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

S S

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Hiring Veterans ‘Refreshing’

Tuesday, March 27, 2018

7

Program Aims To Ease Transition From Military To Private Sector

By VIC BRADSHAW Daily News-Record

HARRISONBURG — Six years ago, as he sought employment after beginning his professional career in the U.S. Army, Rahul Bried found a good match for his experience and skills in Bridgewater.

Bried, a cavalry scout and infantryman who was deployed to Iraq three times while on active duty and in the Army National Guard, found a civilian work home where his military service was a valuable asset at Dynamic Aviation. The company provides aviation services to an array of entities, with the U.S. Department of Defense a major client.

The workplace culture was different from the military, he said, but the transition was fairly easy because many of Dynamic’s employees are veterans.

“I had to learn that transition to the civilian world,” said Bried, a 31-year-old Rockingham County resident. “You can’t tell someone to do pushups till they’re tired. You have to work with them, negotiate, figure out what drives them. In the military, punishment made everybody do what they wanted.”

Bried was hired just before Dynamic Aviation became certified as a Virginia Values Veterans employer, but he exemplifies the value many state employers have found in former members of the military since its launch in June 2012.

Fourteen Harrisonburg and Rockingham County companies are certified in the program informally called “V3.” Its aim is to keep veterans in Virginia when their service days end and help state employers tap into the skilled workforce the military produces.

Virginia has 500-plus V3-certified companies that have reported hiring 31,433 veterans since the program’s inception.

Marketing Vets’ Skills Ross Koenig, program manager for V3 statewide, said the effort has been well-received in the Shenandoah Valley. At least 40 local employers were registered for an event at Blue Ridge Community College in March, and some certified companies took part in a panel discussion on how the program works and the value they see in it.

When men and women are discharged from the service, he said, about one-third return to their hometown, a third stay

Dynamic Aviation mechanic and Air Force veteran Andrew Lawson reinstalls panels on an aircraft.

Dynamic Aviation is one of more than 500 Virginia companies that are certified by V3, a program that aims to keep veterans in Virginia when their service days end and help employers tap into the skilled workforce the military produces.

Daniel Lin / DN-R

where they were discharged and the rest go wherever they find a job.

The program acts as a conduit between the job-seeking veteran and employers seeking people with skills they possess.

Jeb Hockman, communications manager for V3, said one of the program’s key components is training employers to properly assess how veterans can fit into their workforce.

“There are skills veterans learn in military,” he said. “How do they transfer to private industry?”

The Virginia Chamber of Commerce has partnered with V3 to launch the Hire Vets NOW program, with NOW an acronym for Networking Opportunity and Work. Events are held at military installations that allow service members about to be discharged and employers to meet and mingle in an informal setting.

V3, Koenig said, supports other veteran-employment initiatives, including the Virginia Transition Assistance program.

Twice a week, about 2,000 veterans receive a list of job openings at certified companies.

“This is not a job board,” he said.

“It’s putting more veterans’ eyes on your openings.”

A Good Fit At Dynamic Aviation, about one-third of the 560-person workforce has some military experience, said Joel Shank, its vice president of human resources. Last year, Dynamic added 54 veterans to its payroll.

“We know the quality that we get through our veteran employees and will continue to have a substantial veteran hiring effort and veteran employee group,” he said. “We’re able to provide a better product and serve our customers better because of their efforts.”

Bried, a program manager who works with clients to make sure their needs are met, said many attributes emphasized in the military — punctuality, leadership, teamwork, task focus, working under pressure — serve veterans well at Dynamic.

Don Damron, the company’s maintenance operations manager, agreed. Seven of the nine supervisors he oversees are veterans.

The New Hope resident has more than 15 years in with the company after four years in the Army, including a stint in South Korea. He said the military trains people to be flexible, something that’s valuable in a workplace like Dynamic Aviation.

“The veterans that work here, they’re the kind of people we want,” said Damron, 47. “Many of the people we’re pulling off the street now, they don’t have that in them. It’s very refreshing when we can hire a veteran.”

Because so much of Dynamic’s work is for the Defense Department, Shank said veterans are a good fit for positions throughout the company because they speak military lingo.

The V3 program, he said, also has benefited Dynamic Aviation by providing training sessions about hiring veterans. At the sessions, employers can discuss veteran hiring methods with other companies to identify and incorporate best-practices measures.

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

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Tuesday, March 27, 2018

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Meeting The Standard Architects Navigate Maze Of Codes, Regulation

By RYAN CORNELL

here we have strict limitations.”

For an example of how strict some of those limitations can be, look no further HARRISONBURG — On a snowy morning than the stairway railing. in early March, architect Eugene StoltzIn the U.S., Stoltzfus said, balusters — fus strides into the conference room of his a pillar or column — that support a railing downtown Harrisonburg office clutching two cannot have an opening that would allow a building code books.

4-inch ball to pass through.

Taking care to gently place them on the “Their thinking is a baby [could] get its frosted glass table — it’s possible they may head through and hang itself,” he said. “So have shattered the glass had they been you have to have railings but you can’t have dropped — Stoltzfus begins flipping through. big openings in your railings.”

“It’s quite a volume,” he said, skimming But in Japan, he explained, no such rethe hundreds of pages of Virginia Construc- quirement exists, and the only rule is that a tion Code. “It tells you everything from what handrail be built. seismic conditions you need to design for and “They trust people to watch where they’re wind loads ... to how steep your stairs can be walking,” Stoltzfus said. “They trust parents and how airtight your house needs to be.” to keep children off of stairs that are not Stoltzfus continues rattling off safe. But that’s not the attitude we’ve some of the finer details of Virtaken.” ginia’s residential building For Charles Hendricks, codes. licensed architect and [The Virginia Construction “They limit design owner of The Gaines of your chimney and Group in HarrisonCode] tells you fireplaces,” he adds, burg, keeping up with everything from what “what roof constructhe changing code tion needs to be like.” seismic conditions you involves shelling out And just like a $1,500 on code books need to design ... to how rabbi must know the after they’re updated steep your stairs can be.

Torah, or a news reevery three years. porter The Associated One safety stan Eugene Stoltzfus, Press Stylebook, so too dard that has changed Harrisonburg architect must an architect be well in recent years regulates acquainted with the intrihow decks are attached to cacies of the state and internabuildings, he said. tional building codes, as well as a After an apartment building’s maze of regulations that ensure a structure deck collapsed a couple years back, caused is built safely and uniformly. by a crowd of college students jumping on “We know how wide hallways have to be, it, architects who design decks now have to how wide doorways need to be, how big win- ensure it locks into the unit, Hendricks said. dows need to be, to have emergency egress,” “They changed the way you designed he said. [decks] because it collapsed, even though Architects are expected to know how there never should’ve been a hundred stumany toilets and drinking fountains are dents jumping up and down in an apartrequired in a place of assembly, such as a ment,” he said. church or theater, he said. They must know In addition to conforming with Virginia that hallways over a certain length need an- ‘sstate building code, which includes residenother point of exit in case of emergency. tial and commercial buildings, Hendricks While architects in some countries are said he’s expected to adhere to energy and bound by the same international set of codes rehabilitation codes and, to a lesser extent, as those in the U.S. and some even have electrical, maintenance and plumbing codes. their own versions, they generally must “This is the minimum standard by which meet a less stringent series of requirements. all new buildings or renovations should be “In Europe, it’s not unusual to come to a constructed to protect health, safety and stairway that has irregular treads and risers in the old buildings,” Stoltzfus said. “Well, See STANDARD, Page 9 Daily News-Record

Daniel Lin / DN-R

Charles Hendricks, licensed architect and owner of The Gaines Group, looks over plans and codes for a project in the firm’s Harrisonburg office in the Chesapeake Western Railway depot on Bruce Street.

Jet Service Begins April 3, 2018

Book today at www.united.com Operated by SkyWest Airlines

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SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Tuesday, March 27, 2018

9

State Adopts International Building Codes, Adjusts To Fit Commonwealth efficient building that works for the purpose, that meets health, safety and welfare — and welfare,” he said.

I would like it to be pretty as well.”

In the case of two or more standards Another set of regulations are attached to geared toward the same purpose — for ex- projects seeking historic tax credits. ample, the Americans with Disabilities Act Hendricks, whose office is on the secof 1990 and Fair Housing Act, which both ond floor of the renovated Chesapeake touch on accessibility — archiWestern Railway depot on Bruce tects are expected to pick the Street, handled the design most stringent set of codes. work for the project, which Every three years, involved historic tax credMy role is to make Virginia will adopt the its. sure we’re building international building To receive credcode and adjust it to its for the project, the most efficient make it fit the comhe said, he worked building that works monwealth. In addito preserve the true for the purpose. tion, Hendricks said, character of the 1913 each locality has a code structure, which is Charles Hendricks, official who interprets listed on the Nationthe state building code al Register of Historic The Gaines Group and enforces how it fits into Places. The project pretheir zoning ordinances. sented its own unique chal“Most people think architects lenges. are a luxury item that are just there to “Essentially, they want you to build Daniel Lin / DN-R make the building look pretty, and that’s not it back the way it was built 100 years The attic of the historic Chesapeake Western Railway depot on Bruce Street now houses office space for at all what I see our role as,” he said. “My See STANDARD, Page 10 R.S. Monger and Sons. The Gaines Group handled the design work for the renovation project. role is to make sure we’re building the most

Standard

FROM PAGE 8

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SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, March 27, 2018

Harrisonburg, Va.

Hendricks On Renovation: ‘This Was Probably My Favorite Job I’ve Ever Done’ Saks Fifth Avenue, typically is focused on designing houses and furniture that use ago,” Hendricks said. “So we don’t nec- modern materials and aesthetics.

But he’s working on his own historic essarily build that way anymore, so it costs face-lift. One of his upcoming projects is a more to do.”

Because the building burned in 1982 renovation of the vacant former Wampler Feed & Seed building at 136 W. Elizand lay vacant for more than 20 years abeth St. into a mixed-use resafter that, he also dealt with imidential and commercial mense water damage, rot and space. fire damage that plagued Matchbox Realty & the building.

I absolutely love Management Services, Hendricks said he rethis building. I love which is developing searched the history of the warehouse, will the building and looked being able to come likely seek historic tax through photos that here every day. credits. could clue him in on how “It’s been a real to ensure the trim was Charles Hendricks, boon to the rebuilding of the same and the bars on on railway depot Harrisonburg and lots of the windows matched. other cities in the state of “This was probably my Virginia, where older buildfavorite job I’ve ever done,” he ings become economically viable,” said. “I absolutely love this building. he said. “Harrisonburg would be quite a I love being able to come here every day.”

Stoltzfus, an architect and design- different city if we didn’t have historic tax Daniel Lin / DN-R er whose projects have ranged from the credits.”

The Gaines Group worked on the design for the renovated Chesapeake Western Railway depot. To Generations Park ice skating complex in receive historic tax credits, the architects had to preserve the character of the original 1913 structure, Bridgewater to a collection of cork furContact Ryan Cornell at 574-6283 which is listed on the National Register of Historic Places. or rcornell@dnronline.com niture featured in the shop windows of

Standard

FROM PAGE 9

“

Design that answers your questions

Harrisonburg

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Charlottesville

WWW.THEGAINESGROUP.COM

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Tuesday, March 27, 2018

Nikki Fox / DN-R

Broadway and Stonewall Jackson high school students listen to Aaron Green, commercial relationship manager at Farmers & Merchants Bank, during Bank Day at F&M’s Timberville headquarters.

Behind-The-Scenes Vault View FREE business High School Students Learn Ins, Outs Of Banking

By VIC BRADSHAW Daily News-Record

TIMBERVILLE — Eleven high school seniors spent about four hours March 15 learning about banking and didn’t see a single bit of currency.

Farmers & Merchants Bank gave the students a behind-the-scenes look at the industry as part of the Virginia Bankers Association’s Bank Day program. Each has an opportunity to submit an essay that could earn them scholarships worth up to $5,000.

Bank Day officially is March 13, but F&M held its Timberville-area session early because it will host eastern Rockingham County students that day at its Crossroads branch.

The students got around the company’s headquarters in Timberville, touring the customer support area, sitting in on part of an audit committee meeting with the bank’s external auditors, and speaking with leaders in the hu-

man resources, marketing and lending departments. About 60 people work in the office, which no longer contains a bank branch.

Melody Emswiler, the company’s director of human resources, gave the students a rundown of the types of positions available at F&M, covering everything from the retail branch staffers consumers see to the customer support, loan processing and credit analyst position that they don’t. “There’s just a lot of different opportunities within banking that a lot of times people don’t think about because you don’t always know that they’re there,� said Emswiler, a vice president with the company. “As a consumer, you don’t think about that.�

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Harrisonburg, Va.

BRC Closing In On $3.2 Million Fundraising Goal

By VIC BRADSHAW Daily News-Record

HARRISONBURG — Bridgewater Retirement Community thanked some of its supporters on March 22 and requested more assistance in reaching the organization’s Building Connections campaign goal.

Carrie Budd, vice president for development for the Bridgewater Retirement Community Foundation, said that those invited to Bluestone Vineyard for BRC’s annual Evening of Grat-

itude event were told that the community is 82 percent of the way to its $3.2 million goal for the assisted-living and memory-care portions of the expansion and renovation project.

A group of individual and business donors — Rodney and Jen Alderfer, BB&T, Daniel and Nancy Brubaker, Houff Corp., John and Linda Neff, Partners Excavating, and Edgar and Catherine Simmons — also has come together to provide $125,000 toward the project and challenged other groups to match it.

2018 Roll of Honor

Budd said the organization hopes to complete fundraising by the end of July.

The project involves renovating some existing assisted-living units and adding 26 more. The one-bedroom and studio apartments will provide more options for couples or residents seeking more space, Budd said.

Thirteen additional beds for memory care patients also are being added due to demand, increasing the community’s total to 29.

Some of the money will go into a fund to support BRC residents whose funds run

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“We’re taking a portion of what’s raised and putting it in our Resident Care Fund for those who run out of resources,” Budd said. “We never want to ask anyone to leave.”

The entire project also includes more independent-living residences, a new restaurant, a new park and a complete renovation of the Houff Community Center.

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â&#x20AC;&#x2DC;They Get Exposure ... To All Of The Areas Of The Bankâ&#x20AC;&#x2122; Bank

Classifieds get results

FROM PAGE 11

and apply to participate. The group â&#x20AC;&#x201D; eight from Broadway High and three from Stonewall Jackson in Mount Jackson â&#x20AC;&#x201D; is the largest F&M has had in the five years itâ&#x20AC;&#x2122;s offered the program, with eight students signed up for the event.

Aaron Green, a commercial relationship manager, led the students throughout the day.

He persuaded F&M to start the program as a form of outreach to local high-schoolers with a goal of making them aware of job opportunities available back home after they finish college.

Bank Day is supposed to be a shadowing exercise, but he thinks his method provides a more well-rounded view of the professional options. â&#x20AC;&#x153;They get much more exposure to all of the areas of the bank, not just watching me do some mundane credit analysis for loans,â&#x20AC;? said Green, a vice president.

Green and other F&M staffers covered all that a bank does. Aside from the consumer checking and savings options that are best known, banks make consumer and commercial loans, provide financial advice and give back to the community through donations, sponsorships and other measures. â&#x20AC;&#x153;Banks loan money to businesses to create economic growth and to provide jobs in our communities, and thatâ&#x20AC;&#x2122;s really important,â&#x20AC;? Green told the students. â&#x20AC;&#x153;Because if thereâ&#x20AC;&#x2122;s no jobs, why in the world would you stay here?â&#x20AC;?

Tom Campbell, a commercial relationship manager, said he entered banking 12 years ago after a 20-year career in the poultry industry. He said he was told community connections were more important than industry knowledge because relationships are the key to banking. â&#x20AC;&#x153;With our bank and a community bank,â&#x20AC;? said Campbell, an assistant vice president, â&#x20AC;&#x153;itâ&#x20AC;&#x2122;s more about that relationship that, hopefully, spans generations.â&#x20AC;?

Surprises Uncovered The students also learned that the bank is working to reach millennial consumers that arenâ&#x20AC;&#x2122;t connected with traditional media forms and how F&M

call

574-6210

Nikki Fox / DN-R

Caitlin Thompson, a 17-year-old senior at Stonewall Jackson High School, takes notes as Karen Rose, vice president of Deposit Operations at Farmers & Merchants Bank, speaks during Bank Day. Students had the opportunity to write an essay that could earn them up to $5,000 in scholarships. must take significant measures to protect is customersâ&#x20AC;&#x2122; finances from fraud.

Thieves use everything from card skimmers at gas pumps to identity theft to gain access to accounts. â&#x20AC;&#x153;We deal with debit-card fraud almost daily,â&#x20AC;? said Green.

Fraud protection is an aspect of the industry that struck Catherine Bailey, 18, because hadnâ&#x20AC;&#x2122;t thought about it. â&#x20AC;&#x153;This bank is on top of keeping fraud very minimal,â&#x20AC;? the Stonewall student said, â&#x20AC;&#x153;and theyâ&#x20AC;&#x2122;re working 24-7.â&#x20AC;?

She added that she was intrigued by the rules banks must follow and how bankers work within the framework of those restrictions to help clients.

Broadway senior Sean Ewell, 17, said he once wanted to be a banker. He signed up for Bank Day to get a closer look at the industry and was surprised at how banks give back to the community and provide so many different occupational paths. â&#x20AC;&#x153;I didnâ&#x20AC;&#x2122;t expect it to have that many [job] opportunities,â&#x20AC;? he said. â&#x20AC;&#x153;I thought there would be the tellers and the executives and not everyone else, the marketing people. I didnâ&#x20AC;&#x2122;t realize it was so massive an organization.â&#x20AC;?

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

Shenandoah Valley Meetings

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Tuesday, March 27, 2018

Shenandoah Valley Organics Buys Property SVO Acquires Parcels On North Liberty, Massanutten Streets

By VIC BRADSHAW Daily News-Record

HARRISONBURG — Shenandoah Valley Organic has added property across from its North Liberty Street plant to its holdings.

The organic chicken processing company made a major investment on March 1, paying $900,000 to Massanutten Street LLC to acquire the properties at 778 and 780 N. Liberty St. and 779 Massanutten St. The deal closed Feb. 28.

The parcels total more than 1.7 acres, according to the deed recorded at the Rockingham County Courthouse. City records indicate that the combined properties are assessed at more than $1.1 million for tax purposes.

Corwin Heatwole, the company’s president, founded Shenandoah Valley Organic in 2013 and moved its processing operations into the former Pilgrim’s Pride plant on North Liberty Street in early 2014.

Just this year, the company launched its latest brand, Farmer Focus, with products packaged in vacuum skin pack trays.

Tying in with the nationwide trend of people wanting to know where their food comes from, each package includes an identification code that the purchaser can key in on the product website to find out which farm their chicken came from, see photos of the operation and learn more about the farmers who raised the bird.

According to SVO’s website, the chickens are grown free-range on 29 farms in Rockingham, Page and Augusta counties in Virginia and Hardy, Hampshire and Pendleton counties in West Virginia.

SVO products are available in more than 500 stores, the vast majority east of the Mississippi River.

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

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Local Ledger Central Valley Area Home Sales Median Price Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

Feb. 2018

Feb. 2017

Pct. Change

$171,500 $207,450 $179,900 $224,500 N/A N/A N/A

$163,500 $192,000 $175,000 $139,000 N/A N/A N/A

4.89% 8.05% 2.80% 61.51% N/A N/A N/A

Unemployment Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

Jan. 2018

Dec. 2017

Jan. 2017

4.0% 3.2% 3.6% 6.9% 3.5% 3.7% 4.3%

3.5% 2.8% 3.1% 6.3% 3.0% 3.2% 3.7%

4.5% 3.5% 3.8% 8.4% 3.7% 4.0% 4.2%

Source: Virginia Employment Commission

Labor Force Days On Market Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

Feb. 2018

Feb. 2017

Pct. Change

7 61 161 282 N/A N/A N/A

33 63 105 124 N/A N/A N/A

-78.79% -3.17% 53.33% 127.42% N/A N/A -N/A

Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

Jan. 2018

Dec. 2017

Jan. 2017

24,573 40,631 20,966 11,413 36,457 11,804 10,267

24,938 41,572 20,714 11,612 37,325 12,122 10,307

24,530 40,337 20,800 11,415 36,840 12,067 10,248

Source: Virginia Employment Commission

Units Sold Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

Feb. 2018

Feb. 2017

Pct. Change

28 52 33 8 N/A N/A N/A

22 47 35 8 N/A N/A N/A

27.27% 10.64% -5.71% 0.00% N/A N/A N/A

Sources: Funkhouser Real Estate Group; Real Estate Business Intelligence

Retail Sales (in millions) Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

Jan. 2018

$106.3 $48.4 $32.3 $12.7 $41.2 $30.0 $39.0

Source: Weldon Cooper Center for Economic and Policy Studies

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Tuesday, March 27, 2018

15

Sentara RMH Labs Adds Phlebotomy Program

By VIC BRADSHAW

need the lab school has been asked to help meet.

“It’s just the extreme need for health HARRISONBURG — The Sentara care workers,” Lawton said of why the RMH Lab Schools are expanding their new programs have been created. “The offerings. shortage exists all over the country.”

The training ground for medical labStudents will be asked when they enoratory science technicians and hisroll for the program which hospital totechnologists will begin teachthey prefer for their clinical rotaing phlebotomy technicians tion. A student’s choice will starting July 2, according be honored until all slots to program director Sue for any location are Lawton. Students will filled, at which time It’s just the extreme be guaranteed a clinstudents will have need for health ical rotation at eito go where there’s ther Sentara RMH availability. care workers. The Medical Center or Lawton said shortage exists all in Charlottesville at ASCP data show over the country.

Sentara Martha Jefthat the average ferson Hospital. starting wage for a “We’re starting this Sue Lawton, Sentara phlebotomy technician program,” she said, “bein America is $13.50 per RMH Lab Schools cause there’s an extreme hour. shortage.”

“I think this is a great opClasses, Lawton said, will portunity locally for people,” she start each July and February. Students said. “The clinical sites are a real advanwill have 10 weeks of multiple lectures, practice time and study periods from 9 We Love Small Business! a.m. to 2 p.m. daily at the lab schools new home on Technology Drive followed by a Upcoming Events 10-week rotation at one of the hospitals.

Once they complete the program, stuPitch Perfect dents can sit for the American Society for March 29, 6:30-8:00pm Carrier Library Clinical Pathology exam to become a cerTrademark Basics tified phlebotomy technician.

April 5, 3:30-5:00pm, Lexington Tuition for the program is $2,000, April 6, 8:00-9:30am, Harrisonburg which includes the classroom and hospital rotation training, Lawton said. Up to Start Smart Workshops 11 students can be accepted each term.

April 10, 2:00-4:00pm, Harrisonburg The training, she said, goes beyond April 24, 1:00-3:00pm, Verona teaching how to draw blood. Students will learn about the heart, the circulatory Business Smarts— system, and how to obtain various types 8:00-9:30am, Harrisonburg of specimens processed in medical labo5 Things Businesses Purchase Under ratories.

Pressure & Don’t Need: April 13 “I didn’t realize how extensive it was,” Marketing that Matters: May 11 said Lawton, “until we started working on the curriculum.”

Growing Your Business with Daily News-Record

“

Tradition Of Success The medical lab school is 60 this year.

Lawton said it was founded in 1958 to fill a local need for medical lab science technicians.

That was the only program offered until four years ago, when a need for histotechnologists prompted the creation of that program. The Sentara RMH Phlebotomy Technician School is the next

Government Contracts April 18, 8:00am-3:30pm, Verona Opportunities and lessons for doing business with federal and state agencies

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tage, and it gets you a foot in the door to the health care arena.”

The phlebotomy program should churn out certified technicians, Lawton said, just as the other programs do. The lab science technician has had a 100 percent pass rate on certification exams for at least 20 years, and every graduate of the histotechnology program has passed the test.

“This is a great avenue for a high school graduate,” she said. “They can walk right into job and use it as a stepping stone to go to college. A lot of hospitals help students pay for [college] tuition.”

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

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