Shenandoah Valley Business Journal by Daily News-Record

A Byrd Newspapers Publication

Volume 16, No. 6, April 26, 2016

Spotlight

on:

s Farmer s Market Page 6

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 26, 2016

Harrisonburg, Va.

Inside This Issue

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

Focus Section: Farmers Markets ■ Markets Take On Different Meanings . . . . . . . . . . . Page 6

Other Business News ■ Movers and Shakers . . . . . . . . . . . . . . . . . . . . . . . Page 2

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

By email: svbjnews@dnronline.com

Editorial Staff

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

Editor and General Manager: Peter S. Yates

■ Airport Growth Raises Red Flags . . . . . . . . . . . . . . Page 9

By fax:

■ Local Ledger . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 10

433-9112

Managing Editor: Jerry Blair

Columns

By phone:

■ Investments by Matthew Frakes. . . . . . . . . . . . . . . Page 3 ■ News to Me by Philip DuBose . . . . . . . . . . . . . . . . .Page 4

Staff writer: Vic Bradshaw

■ Real Estate by Tim Reamer. . . . . . . . . . . . . . . . . . . Page 5

Contributing photographers: Daniel Lin, Holly Marcus

Jason Martin Promoted At Southeastern Freight Lines HARRISONBURG — Southeastern Freight Lines has promoted Jason Martin to be the manager of its Harrisonburg service center. Martin has worked for the Lexington, S.C.based less-than-truckload transportation provider for 13 years in multiple positions, including freight handles, inbound supervisor and operations manager. He most Martin recently was the assistant manager of Southeastern’s service center in Atlanta. Southeastern is a privately held regional transportation services company that oper-

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

ates 88 service centers in 14 states, Canada and Puerto Rico. It specializes in next-day service in the Southeast and Southwest. — Vic Bradshaw

Miller, Earle & Shanks Hire Routhier As Associate Attorney HARRISONBURG — Miller, Earle & Shanks has hired Caleb J. Routhier as an associate attorney. Routhier, who will practice in the firm’s Luray office, graduate Magna Cum Laude from the University of Richmond’s T.C. Williams School of Law, according to a news release. He will practice criminal defense, traffic, civil litigation, child support and family law. — Vic Bradshaw See MOVERS, Page 11

Union Bank Agrees To Buy Old Dominion Capital Management HARRISONBURG — Union Bank & Trust, a subsidiary of Richmond-based Union Bankshares Corp. (NASDAQ: UBSH), announced recently that it has agreed to purchase Old Dominion Capital Management Inc., an investment advisory firm headquartered in Charlottesville. Old Dominion Capital will operate as a separate subsidiary of Union Bank & Trust, according to a news release. It will continue operating from its offices in Charlottesville and Alexandria with the same principals and employees. The deal is scheduled to close this quarter. Union Bank & Trust has 124 bank locations throughout Virginia, including two branches in Harrisonburg and one in Grottoes. — Vic Bradshaw

On The Cover: Holly Marcus / Special to the DN-R The Harrisonburg Farmers Market begins to green-up in downtown Harrisonburg as vendors bring more plants and produce to sell with the onset of the growing season on April 16.

AxonAI Raises Seed Funding HARRISONBURG — AxonAI Inc. has completed a successful round of seed funding, raising $1.45 million. According to a news release, the Harrisonburg artificial intelligence company was backed by AXON Connected LLC, SAP National Security Services, the Center for Innovative Technology, Blu Venture Investors and an undisclosed number of investors. The funds will be used to develop products that feature AxonAI’s proprietary swarming intelligence methodology and algorithms. Mark Slonecker, the company’s president and CEO, said the products are expected to advance the predictive analytics, anomaly detection and real-time big-data analytics fields. — Vic Bradshaw

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 26, 2016

Market Timing Is A Losing Game S

tudies have shown that trying to time market entries and exits rarely pays off and may, in fact, lead to investment losses. Market timing seems so easy, in theory. Buy when prices are low and sell when they are at a high. Anyone who diligently follows the market and stays abreast of economic news can anticipate, and capitalize of these movements, right? Wrong, at least not over the long term. As history has shown repeatedly, market timing is a losing game. Volumes of research critical of the practice have been written, and some of the greatest investment minds — William Sharpe, a Nobel laureate, Benjamin Graham, considered the father of value investing and John Bogle, founder of The Vanguard Group — have all counseled against it.

Experts Rarely Right Even so-called market timing experts can’t consistently predict when to move in and out of the market.

A study by CXO Advisory Group tracked more than 4,500 forecasts by 28 self-described market timers, between 2000 and 2012. Only 10 were able to accurately forecast equity returns (as measured by the S&P 500) over half the time, and none were able to predict accurately enough to outperform the market. Certainly, some investors have made accurate market calls, and others have predicted a market bottom or top. But over the long run, the law of averages usually wins out, effectively rendering a market timing strategy a game of chance. As difficult as market timing is for professional investors, they are typically guided by a buy and sell discipline. Nonprofessional, individual investors tend to sell in a panic at or near a bottom, and buy in a flush of confidence at or close to a market top. Behaviors such as loss aversion, overconfidence, anchoring and avoidance often overtake rational decision-making, resulting in losses.

Investments Matthew R. Frakes

Timing Your Way Out Of Money Perhaps the most significant deterrent to market timing is the cost of being out of the market. For example, the chart that follows shows the effect of missing the 12 top-performing months for stocks (as measured by the S&P 500) during the 10-, 20-, and 30-year periods ended Sept. 30, 2014. Investors who remained invested for the entire period would have achieved higher returns for each holding period than those who tried to time the market and missed.

So if you are considering a market timing strategy, think again. There are other choices, such as tactical asset allocation, that may allow you to take advantage of market opportunities, yet remain fully, or substantially invested. Article written by Wealth Management Systems Inc., provided courtesy of Matthew R. Frakes, The Frakes Group at Morgan Stanley, in Harrisonburg. Call 4387909 or visit online, www.morganstanleyfa.com/thefrakesgroup.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 26, 2016

Harrisonburg, Va.

Creating Formal Hierarchy Key To Business Success

ierarchy is essential. That’s the clear message in an article appearing in the March issue of HR Magazine. Much of the organizational literature devoted to downsizing has touted the elimination of top-down structure, particularly because it reduces bureaucracy and speeds decision-making. However, the March article contends that such structures are absolutely essential, and provides compelling evidence to support this claim. Zappos experienced 30 percent turnover in 2015 after eliminating its traditional corporate hierarchy and adopting a more collaborative self-management system Similarly, Google founders discovered that the lack of hierarchy created chaos and confusion. One writer stated that hierarchy helps people coordinate when achieving logistical tasks, another author stated that “an established pecking order helps people know who is responsible for what,” and a Stanford study found that employees actually like hierarchy because of its clarity. Some people argue that if an organization doesn’t intentionally create a formal hierarchy, one will emerge anyway — and it may not be a desirable one. The absence of an explicit hierarchy and related organizational values that determine who ascends it, the emergent hierarchy may reward the wrong behaviors. The key to success may be an organization’s ability to rapidly create teams in the context of their formal organizational structure.

Natural Ability Vs. Striving Which is more valued: natural ability or striving? That’s a question that’s of-

ten been asked, especially by — and of — those charged with the responsibility of evaluating others. It’s a question worth exploring because much historical research has shown that it is natural talent that drives performance, while well-known works, such as “Outliers” and “Talent is Overrated,” have argued that tenacity and work ethic matter just as much as in-born brilliance. An article in the April issue of Harvard Business Review discusses recent research that further explores this matter. Hundreds of participants evaluated biographical profiles and business plans from entrepreneurs. Their profiles were manipulated to emphasize either natural ability or striving, but were otherwise identical, while there was no difference in the business plans. Most participants had a higher regard for business plans submitted by a person with natural ability, and they believed those plans were more likely to succeed, and were more willing to invest in those plans. Moreover, the effect was more pronounced among participants who were founders themselves, and despite the fact that many of those favoring the “natural entrepreneur” had indicated in a pretest that motivation and hard work are more relevant to entrepreneurial success. The findings indicate that when we evaluate people or performance through the lens of naturalness, we are likely to inflate our evaluations. This awareness is especially important because other research has shown that in many settings, hard workers

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perform better. If the road to success is lengthy and full of challenges, then those who are willing to work hard and persevere are best prepared to navigate it.

Fostering Improvisation A company’s ability to innovate regularly and respond quickly to changes in the environment is critical to success, and creativity and problem-solving skill are key elements in improving outcomes in projects that require innovation. However, business demands also

require efficiency, and a disciplined approach to project management and product development practices that emphasize standardization and consistency. Given these competing requirements, is a disciplined approach to product development at odds with creativity and improvisation? An article in the Spring issue of the MIT Sloan Management Review reports survey finding suggesting that managers can develop a team environment that’s conducive to improvisation, and the article provides valuable guidance about how to create conditions that foster improvisation. The first step is to create a culture that views changes positively because greater levels of improvisation result from teams that display a positive attitude toward dealing with ambiguity and project changes. A second condition is the creation of the “right” team structure: smaller and more autonomous teams that interact frequently with project leaders and stakeholders to discuss project-related issues. Finally, managers must implement management practices along with tools that facilitate improvisation by promoting collaborative interaction of team members with clients, especially during the development process. Deliberately or not, project teams must — and do — improvise, and following the above “blueprint” will make the process more intentional, and hence effective. Philip B. DuBose is a management professor at the James Madison University College of Business.

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 26, 2016

Congratulations — It’s A Beautiful New Location

hen Andrea and I realized we were going to have our first child we had a relatively clear vision of our parenting rules. After he was born, everything was documented, sanitized and organized. Our second was born a couple of years later. Let’s just say the parenting experience with each new child is a different experience. My wife and I just had our third child a few weeks ago. A little girl named Rowan. She already has her own Netflix account. I’m certainly not offering any parenting advice. My expectation was if I did a really good job with the first one, he could help with, and potentially just go ahead and raise the others. As it turns out, he may be better at it than me. Honestly, the kid told me to put sunscreen on this weekend. I suppose I am just saying expectations are a funny thing with kids. Those with children might agree that about the time you think you have it figured with the first kid, the second comes along and makes you look like a total idiot. Of course, it makes sense, every child is different. They generally respond to different incentives and disincentives, enjoy different activities, and have different experiences that help shape them. It’s not an earth-shattering revelation to suggest that kids are unique, but it shouldn’t be any more surprising to recognize that every real estate decision is, too. I doubt it has fully presented itself within the data at this point, but the market is seeing something it hasn’t seen in several years: activity among local retail and office users. Some of these entrepreneurs are experienced, opening their second, third, or 10th location with a pretty good handle on what is required, but can be subject to complacency and faulty assumptions based off of past experience. Others are picking a site for the very first time running the risk of operating so tightly that good opportunities are missed or so loosely that bad decisions are embraced. The point is even if you’ve been there before, the path is always a little different the next time. If you haven’t, there isn’t a Dr. Spock’s handbook for commercial real estate, but there are a few things that can be kept in mind as guideposts.

Interview Several Brokers The natural inclination when a business considers expansion or is opening

their first location is to get online and start calling multiple brokers to ask about the various properties they represent — don’t. Instead, ask if you can meet with them for an interview to see if they represent a good fit for your project. Bringing a broker in early in this manner yields a tremendous amount of benefit. You will get a better sense of the market in terms of rates and availability, gain access to some properties before they are brought to the public, and be provided insights that might help you shape your site requirements. Not to mention, there’s the value added during lease negotiations. Real estate generally costs businesses somewhere between 6 percent to 12percent of total gross sales on an annualized basis. It’s better to know if your projections and expectations need to be adjusted early in the process rather than late. Most importantly, you get commitment to your project and an advocate for your best interest. Never forget, when you call the name on the sign in front of the building or listed as the contact for a property online, they already represent someone: the property owner. This doesn’t mean they can’t be of assistance; they just can’t be your advocate. (For more, see http://timreamer.com/interview.)

Use Site-Selection Process If you’ve interviewed and hired a broker, one of the very first efforts they should undertake is a site requirement survey. Very simply, the purpose of the exercise is to determine what it is your business needs in a site to be successful. In reality, it is substantially more complex and it requires very open and candid participation from all stakeholders.

Real Estate Tim Reamer Once upon a time, the most important influence in selecting a site for businesses was described in one simple phrase: location, location, location (and it drives me nuts). I’m not suggesting location isn’t important, but I am suggesting the saying is oversimplified. Location is made up hundreds of components before considering an increasingly aggressive and a disjointed consumer marketplace. In a competitive environment, a simplistic adage is no longer sufficient. Every site-selection decision should be made based on a unique set of criteria related to the users’ needs, including proximity to clients, building or lot size, population density, spending levels, and a host of other factors while also attempting to minimize acquisition costs. For a quick overview of some of the most important factors, read Key Considerations for Selecting a Business Site at http://timreamer.com/keysite.

Check Your Assumptions Our brains use experience to help us respond to dangerous situations quickly. The problem is our brain uses the exact same shortcut for most other situations as well. This may explain why you are likely to

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initially despise someone named Julia if you worked with an obnoxious know-it-all named Julia at your previous job — even though the new Julia is quite sweet. It may also explain how the same mistakes are made in every new location decision. With this bias, our natural tendency is to reach a conclusion and work backward to confirm assumptions. There is safety in this approach. Little wasted time and nothing we don’t want to hear. In other words, it can be a very efficient way to reach the wrong answer. As it turns out, everybody’s parents were right. The truly efficient method is to do it right the first time, which means asking “why?” to shed truth on the issue, as tedious as it may be. Asking why over and over again may not produce a perfect answer, but it is more likely to produce a better answer. 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.

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Tuesday, April 26, 2016

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.

Markets Take On Different Meanings By VIC BRADSHAW Daily News-Record

HARRISONBURG — Hundreds of people are flocking to the Harrisonburg Farmers Market on Tuesdays and Saturdays to pick up fresh food grown by their neighbors, and similar markets will open in the coming weeks in communities up and down the Shenandoah Valley. Though they might sell in the same venues, the market means different things to different vendors. To some, it’s the backbone of an agribusiness that supports their family. To others, its an important part of a diverse retail and wholesale mix, or a side effort providing some extra cash. Regardless of its importance to their business model, though, several local farmers-market vendors expressed serious focus on providing a good product and operating a profitable enterprise.

Providing A Start Now in its 10th year, Woods Edge Farm

launched as a business at the Harrisonburg Farmers Market. Owner Elaine Nolt added a six-daya-week (at peak), six-month-a-year farm stand along Harpine Highway just north of the city about four years ago. She wholesales to some local restaurants and sometimes takes fruit and vegetables to the Shenandoah Valley Produce Auction. However, she said 40 to 45 percent of Woods Edge’s business still comes from the market. “It’s a very important part of our livelihood to be there,” Nolt said of the market. She and her son, Calvin, farm between 7 and 8 acres on three parcels in the Singers Glen area. Fifteen employees help during the peak season. They sell vegetables, berries, herbs, perennial and annual plants, eggs, and homemade jams and jellies. Blue tilapia, which they’re raising in conjunction with James Madison University students working on an aquaponics project, should

Photo by Holly Marcus / Special to the DN-R

North Mountain Produce of Timberville sells bunches of bright and red radishes at its stand at the See MARKETS, Page 7 Harrisonburg Farmers Market on April 16.

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 26, 2016

Woods Edge Follows Organic Materials Review Institute Growing Guidelines Markets

FROM PAGE 6

be ready to sell in six months to a year. Though not certified, Pennsylvania native Nolt said Woods Edge follows Organic Materials Review Institute growing guidelines. She markets her stand from her vendor space in the farmers market. Usually stand prices are a bit lower, she said, because retailing at the market adds costs. Nolt said the Harrisonburg Farmers Market was vital to Woods Edge Farm in its early days because it was about the only venue in which it could sell when she and her daughter, Stacey Yoder, started. “It was very important that we saw that we could sell stuff,” she said, “and it gave us confidence to grow more and to build greenhouses and high tunnels.”

Marketing Diversity On farmers market Saturdays in Broadway, “Basinger Beef ’s booth” is the answer to the old television commercial question, “Where’s the beef?” Phil Basinger’s workd with cattle for nearly 25 years, at first buying calves, raising them for about six months, and shipping them back to the livestock market for resale. He then started selling quarter, half or whole animals processed by Dayton’s Valley Meat Processors. Four years ago he started selling by the piece, with the cuts processed by T&E Meats in Harrisonburg and Gore’s Custom Slaughter and Processing in Edinburg. Four years ago, Basinger heard the Broadway Farmers Market was looking for a meat vendor, and his grass-fed beef — hamburger, steaks and roasts — has been well-received. “I was looking for a different way to market our beef,” he said. “It was partly to get our name out so more people would know about it, and just a different way to provide income.” He has about 40 head of cattle on about 60 acres, 20 of which he owns in the Linville area. A full-time construction worker, Basinger said his three children help with the beef operation. “It teaches the kids something,” he said, “marketing, how to take care of animals and be responsible.” Basinger said beef sales total $25,000 to $30,000 annually, with more than 30 animals sold in quarters, halves and wholes. About five animals a year are sold at the farmers market, via Woods Edge Farm and from his house, so only about 15

to 20 percent of the overall revenue comes from market sales. Farmers market customers, he admitted, have become quarter, halve and whole buyers. Being able to market his beef as grassfed attracts buyers, Basinger said. “It’s different from a lot of what’s out there, and people are looking for what’s healthier for them,” he said. “People have seen and heard about it, they decide to try it out, and they decide to become repeat customers.”

Stand Not Alone People have been buying produce from the farm stand just south of Dayton since Amos Showalter started selling there in 2005. But some of those who regularly drove past Wayside Produce never bought from the farm until it established a presence in the Broadway and Bridgewater farmers markets. “It’s been a revelation to us to discovDaniel Lin / DN-R er just how many moments of exposure it can take for a potential consumer to make Caleb Basinger, 9, (left) watches as his sister, Naomi Basinger, 14, tends to beef cattle on their the decision to enter your selling space,” farm in Linville. Their father, Phil, has been selling more than 30 animals a year, about five at the said Alex Mason, co-owner of the produce Broadway Farmers Market in quarters and halves as well as wholes. operation now run by his family. “We still have new customers come in and confess to us of having passed by the stand on numerous occasions and only now making the decision to enter.” The family extended it operations to the Broadway Farmers Market in 2013 and ventured to Bridgewater last year, he said. Despite the proximity to the latter market, he figures they’re reaching customers they wouldn’t have otherwise and have the opportunity to direct them to the farm for future purchases. Between 2010 — shortly after the family took over the produce business — through 2015, Mason said sales have doubled. They peaked in 2013, about 7 percent higher than they are now; he attributed the drop to increased consumer options. Wayside Produce grows a bit of everything under the sun, he said, including niche items such as salsify, chicory, celeriac, sorrel, purple pole beans and husk cherries. Every item can’t be taken to farmers markets, however, so customers often are referred to the stand for fruits and vegetables left behind. Growing on just 5 acres, Mason said the farm has a greenhouse and high tunnels and does all it can to maximize production, including planting multiple crops See MARKETS, Page 8

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 26, 2016

Harrisonburg, Va.

Wayside Produce Sells To Restaurants in Harrisonburg, Staunton, Charlottesville Markets

FROM PAGE 7

in the same area several times a year and growing green beans under tomatoes. Organic methods are used, though the farm has not been certified as an organic producer. “We rarely have vacant space,” he said. “We pay close attention to soil fertility and biological health and activity.” The stand and the two farmers markets aren’t Wayside’s only revenue streams. The Masons sell directly to restaurants in Harrisonburg, Staunton and Charlottesville, to a variety of businesses that offer local produce, and at the Shenandoah Valley Produce Auction. The farm stand remains the biggest source of revenue, accounting for about

half of all sales. However, Mason said that figure has shrunk as Wayside has diversified its sales channels, and sales per hour at the Broadway market at times have outpaced hourly sales at the stand. Though he wouldn’t provide total revenue, he said Wayside Produce supports five people full time and up to eight part-time workers.

Growing Bees-ness Michael Hott has a honey of a retirement plan. The grounds manager at the Edith B. Carrier Arboretum owns Hott Apiary, a small but growing enterprise that provides bee products and services. Hott sells at the farmers markets in Harrisonburg and Bridgewater. “We have to push a lot

of honey out,” Hott, 43, said of the reason he works two markets with the help of his father, Ted. “Plus there are people in the Bridgewater market who have never been to the Harrisonburg market, and people in the Harrisonburg market who have never been to the Bridgewater market. We’re trying to cover area as a whole.” The apiary isn’t a big business yet; the McGaheysville resident said he grosses between $10,000 and $15,000 annually. But it is growing, and this is his second year at farmers markets. He makes a bit of money removing bees, providing pollination services, and even selling spare queen. He just started selling online and wholesales his honey, bee pollen

Daniel Lin /DN-R

Phil Basinger tends to beef cattle on his Linville farm. Basinger says being able to market his beef as grass-fed attracts buyers. or lip balm to Mount Crawford Creamery, Friendly City Food Co-op, Massanutten Produce and the JMU Student Success Center. At this point, though, Hott estimates that farmers market sales account for about 85 percent of the apiary business’s revenue. He said they’re also “a great way of getting your name out there, getting known for the great product you have produced.” All of his more than 100 hives are within a 15-mile radius of Harrisonburg, he said, and his customers like knowing their honey comes from local sources. “I know people who come to the market who are repeat customers,” said Hott, “because they know my product is local.”

Valley To D.C. Though most area residents that sell at farmers markets don’t leave the

region to sell their food, a few spread the Shenandoah Valley’s bounty elsewhere. Marvin Ogburn, who lives on Long Meadow Farm northeast of Harrisonburg, said he’s taken a refrigerated box truck filled with produce to the Eastern Market on Capitol Hill for the past 11 years. He makes the trip about 40 times a year, from midMarch to mid-December. “It’s an all-day market,” he said, “so it’s worth my while driving up there. I have a good clientele.” Ogburn fills his truck with fruits and vegetables he buys at the Shenandoah Valley Produce Auction and picks up from local growers he has contracted or with whom he’s has established relationships. He used to grow a variety of produce on his own but “realized it was difficult to be an expert in everything,” he said. He now primarily focuses on tomatoes.

A retired accountant and corporate executive, Ogburn said he totals more than $100,000 a year in farmers market sales. The cost of produce acquisition, of course, cuts his profit. Though it is a money-making endeavor, Ogburn said he thinks he helps people on both end of the sales. Local growers get more money for their produce, and Washington-area families have access to good food. He’s even signed up to sell to clients enrolled in the federal Women, Infants and Children program, which provides food-buying assistance for low-income women and families with children at nutritional risk. “I feel like I’m doing a good thing,” he said, “taking a product that people who live in the city really enjoy, that has good nutrition. I feel like it’s partly a mission.” Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com

Harrisonburg, Va.

SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 26, 2016

Regional Airport Growth Raises Flags For Neighbors By VIC BRADSHAW Daily News-Record

WEYERS CAVE — Most people who attended a public hearing April 19 about the future of the Shenandoah Valley Regional Airport had two growth questions on their mind: where, and how much? The answers: around much of the airport, and a fair amount. Growth was the primary concern expressed by the 10 people who stopped by the airport to view its proposed master plan updates. The plan is a guide to potential development at SVRA over the next 20 years, but the revised document for the first time considers possible needs — especially land acquisition — beyond that period. Maps posted at stations around the General Aviation Terminal showed proposed projects and property surrounding the 430-acre facility that airport officials could seek to acquire or obtain easements on. Two employees of Richmond-based Delta Airport Consultants and Greg Campbell, the airport’s executive director, told three members of the airport’s governing commission the morning of April 20 that no major issues were identified at the public hearing. “Everyone seemed to receive the plan quite well,” Roy

Lewis, a Delta vice president and its planning director, held about 18 years ago. They have a vested interest in what happens at the facility because their house sits just told the panel. Without comment or a formal vote, the commission- east of it. Their property was not targeted for ers in attendance — Chairman Gerald acquisition in the previous master plan. Garber, Joe Bowman and Margaret I have nothing bad In this one, though, it’s in the plan’s secRagon — authorized Delta to begin to say about any of ond decade. drafting plan chapters on capital imThe couple seemed unfazed by the provement projects and how they [the airport staff]. prospect that the airport might come would be financed. Commissioners Bill It’s a super-good calling for their home in the future. O’Brien and Jeff Ward were absent. neighbor. “We knew where we were moving Campbell said after the meeting when we came here,” Carlotta Beathe that the plan could be ready as early Carlotta Beathe, said. as June for final commission considerIf they are approached about selling, ation. The goal is to have the document whose home is just east they said they think they’ll be treated approved by federal and state aviation of the Shenandoah Valley fairly. officials in time for work on some projRegional Airport “I have nothing bad to say about any ects in the plan to begin next year. of them,” she said of the airport’s staff. Neighbors Not Worried “It’s a super-good neighbor.” The maps at the public hearing showed 285.5 acres, Sandy and James Harper live just west of SVRA including about 225 surrounding the northern half of the and were relieved to learn their home is not in an airport, that could be targeted for acquisition at some acquisition zone. Sandy Harper said she also is conpoint, depending on growth. Another 143.44 acres to the cerned about the traffic increased use might generate, south also are eyed for aviation easements. but said what they heard at the hearing will assuage Glen and Carlotta Beathe said during the April 19 hearing they attended for the last master plan update, See AIRPORT, Page 10

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SHENANDOAH VALLEY BUSINESS JOURNAL

Tuesday, April 26, 2016

Local Ledger

Flight Delays Also Raised As An Issue Airport

Central Valley Area Home Sales

FROM PAGE 9

those concerns “for a while.” Campbell said he also met with eight airport users or neighboring property owners prior to the meeting and explained the plan to them. Most were concerned about the facility’s “ultimate footprint.”

Reliability Discussed The master plan doesn’t address every concern raised at the hearing. Margaret Dailey said she and her husband were glad to have an airport just six miles down the road when they moved to Grottoes from New Jersey, and their first two trips out of SVRA went smoothly. They had issues with flight delays on their next two attempts, though, and opted to drive the last time it happened. Since then, they’ve monitored flight schedules and seen many flights delayed or canceled. Often the last flight of the day is nixed, which means the next morning’s first flight will be affected. “To get support from the community and people who want to fly,” Dailey said, “you have to have reliability. How are you going to get reliability if you’re concerned about passenger counts and revenue?” She said she asked if writing United Airlines, which provides service to Washington-Dulles International Airport, might help reliability and was told it might be worth trying. After the hearing, Campbell said many of the flight issues are the result of a pilot shortage. Federal officials lowered the retirement age and increased the amount of sleep pilots need between shifts, creating a manpower crunch that’s resulted in one carrier filing for bankruptcy protection. Doug Sanders, also a Delta vice president, outlined for the commissioners on April 20 the construction projects the plan includes for the first five years. Moving the fueling area and constructing new T-hangars and a corporate hangar are the primary ones. Campbell also told the commissioners that a lease agreement has been reached for Enterprise Rent-A-Car to establish an office at SVRA, likely opening in May. It would join Avis Car Rental, Budget Car Rental and National Car Rental as options for travelers. Contact Vic Bradshaw at 574-6279 or vbradshaw@ dnronline.com

Harrisonburg, Va.

Median Price Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

March 2016 March 2015 Pct. Change

$177,750 $195,000 $187,762 $108,775 $178,450 $132,900 $129,950

$148,000 $188,500 $162,000 $142,800 $180,500 $129,450 $150,450 Units Sold Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

20.10 % 3.45 % 15.90 % — 23.83 % —1.14 % 2.67 % — 13.63 %

Days On Market March 2016 March 2015 80 Harrisonburg 47 65 Rockingham 79 186 Shenandoah 97 205 Page 208 81 Augusta 129 152 Staunton 89 100 Waynesboro 81

March 2016 March 2015 Pct. Change

26 57 42 12 54 27 20

20 52 57 19 68 27 28

30.00 % 9.62 % —26.32 % 36.84 % — 20.59 % 0.00 % — 28.57 %

Sources: Funkhouser Real Estate Group; Real Estate Businesss Intelligence

Retail Sales (in millions) February 2016 $98.0M $49.3M $30.2M $13.0M $38.7M $29.4M $40.2M

Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro

Source: VWeldon Cooper Center for Economic and Policy Studies

Advertising gets results. call 574-6229

Pct. Change

— 41.25 % 21.54 % — 47.85 % 1.46 % 59.26 % — 41.45 % — 19.00 %

Harrisonburg, Va.

Bridgewater-Based Airline Names VP Movers

FROM PAGE 2

Dynamic Aviation Taps Cessna For Technical Operations Post HARRISONBURG — Dynamic Aviation has promoted Scott Cessna to the position of vice president of technical operations. Cessna began his aviation career in 2005, when he joined Dynamic as an avionics technician. Most recently he has served as the Bridgewater company’s director of maintenance. He is a graduate of Cessna the Pittsburgh Institute of Aeronautics. Dynamic Aviation provides special-mission aviation solutions for government and commercial clients worldwide. The company has a 600-person workforce, owns more than 140 aircraft and operates from 18 locations in five countries on three continents. — Vic Bradshaw

Jeffrey S. Evans & Associates Hires Heindl As Ceramics Head HARRISONBURG — Brenda Hornsby Heindl has been hired by the Jeffrey S. Evans & Associates auction house to lead its ceramics department and coordinate museum and educational services, according to a news release. Heindl is a graduate of Berea College in

SHENANDOAH VALLEY BUSINESS JOURNAL Berea, Ky., where she trained as a production potter, and The Winterthur Program in American Material Culture at the University of Delaware in Newark, Del. She most recently worked as a research and curatorial assistant at the Museum of Early Southern Decorative Arts in Winston-Salem, N.C. She previously worked in the ceramics and glass department at Colonial Williamsburg. Heindl has an extensive knowledge of historic ceramics and specializes in German and English stoneHeindl ware, according to the news release. In addition to working with a range of ceramics for the Mount Crawford auction house, Heindl will develop ceramics-based educational workshops and programs for various audiences, according to the company. Jeffrey S. Evans & Associates specializes in Southern decorative arts, American glass and lighting, 17th to 20th century ceramics, textiles, antique sewing accouterments, Americana and fine antiques. — Vic Bradshaw

Rocktown Realty LLC Adds Olaechea As Real Estate Agent HARRISONBURG — Rocktown Realty LLC has added Carlos Olaechea to its team of real estate agents. Olaechea, who is bilingual in Spanish and English, is a native of Peru who has lived in Harrisonburg since 2005, according to a news release from the Harrisonburg real estate firm. He attended both Blue Ridge Community College and Eastern Menno-

nite University. He will assist homebuyers, sellers and investors in the Harrisonburg and Rockingham County area. Rocktown is a full-service realty company that’s been serving local residents for nearly six years. — Vic Bradshaw

Jimmy Madison’s Welcomes Bedford Native As New Chef HARRISONBURG — Isaac Coles has been named the new executive chef at Jimmy Madison’s Southern Kitchen & Bourbon Bar. A Bedford native, Coles trained at the New England Culinary Institute in Montpelier, Vt., according to a news release. He has experience at restaurants in New Orleans; Las Vegas; Charleston, S.C.; and Big Sur Coles and the Napa Valley in California. He has a “farm-to-fork philosophy” and is adding creative twists to the restaurant’s Southern cuisine, according to the release. — Vic Bradshaw

14 Lenhart Pettit Lawyers Named To ‘Legal Elite’ List HARRISONBURG — Lenhart Pettit recently announced that 14 of its attorneys were recognized in the 2015 “Legal Elite” survey conducted annually by Virginia Business magazine. According to a press release form the firm, about 1,000 lawyers of the 30,481

Tuesday, April 26, 2016

active Virginia State Bar members were named this year. The honored lawyers and the expertise for which they were recognized are Patrick C. Asplin (intellectual property), Andrew S. Baugher (young lawyers), Brian A. Craddock (legislative/regulatory/administrative), Michael E. Derdeyn (civil litigation), Ralph L. Feil (family/domestic relations), John W. Flora (taxes/estates/ trusts/elder law), David B. Franzén (criminal law), Lisa Anne Hawkins (real estate/ land use), Kelly B. LaPar (construction), Jeffrey G. Lenhart (health law), David H. Pettit (business law), Nancy R. Schlichting (alternative dispute resolution), Bill Shmidheiser (bankruptcy/ creditors’ rights), and Cathleen P. Welsh (labor/employment). Lenhart Pettit, which formed in a January 2014 merger, has offices in Harrisonburg and Charlottesville. — Staff Reports

McClung Promotes Southall To Production Manager WAYNESBORO — McClung Cos., a full-service graphic communications company, has promoted Sheila Southall to production manager. Southall had been serving as the company’s prepress and print innovation coordinator. Southall, who lives in Waynesboro, has worked 16 years at McClung and more Southall than 32 years in the industry. — Staff Reports

RE/MAX PERFORMANCE REALTY Outstanding Agents, Outstanding Results for over 24 years

2511 E Market St, Suite A • Harrisonburg, VA 22801 Phone: 540.433.7369 • 800.296.7369

Quality Used Equipment For Sale

Tuesday, April 26, 2016

SHENANDOAH VALLEY BUSINESS JOURNAL

Harrisonburg, Va.