City of Norfolk 2012 Annual Business Report by Inside Business

2012 ANNUAL BUSINESS REPORT

Contents

A Message From Mayor Paul D. Fraim

5 Building Our Future Now 8 Major Projects Under Way

13 Investment: New & Expanding Businesses 15 Market Comparisons 21 Strategic Assets 33 Economic Development Resources 39 Economic Profile

Mayor Paul D. Fraim

Vice Mayor Anthony L. Burfoot, Ward 3

Andrew A. Protogyrou, Ward 1

Theresa W. Whibley, MD, Ward 2

City Manager Marcus D. Jones

Paul R. Riddick, Ward 4

Thomas R. Smigel, Jr. Ward 5

Barclay C. Winn, Angelia M. Williams, Superward 6 Superward 7

PRODUCTION COORDINATION

EDITING

City of Norfolk Breck Daughtrey | City Clerk 757.664.4253

Stacey Klemenc | 757.427.6355

Sarah Parker Assistant Director of Development — Marketing 757.664.4338

DIRECTOR OF SALES Bill Blake 757.222.3165 ADVERTISING SALES

ASSOCIATE PUBLISHER

Robin Simmons John Kinsley

Mike Herron | Inside Business 757.222.3991

BUSINESS MANAGER Debbi Wilson

SPECIAL PROJECTS MANAGER Olga Currie

Published by

GRAPHIC DESIGN Pico Design & Illustration | 757.493.0370 www.picodesign.net

150 W. Brambleton Ave. | Norfolk, Virginia 23510 757.222.5353 | insidebiz.com

Thank you for your interest in this annual update on Norfolk, its economy, its businesses and industries and attributes important to the city’s continued vitality and development. In past years, this report presented information spanning the functional and operational activities of the city. As our efforts to expand the tax base, encourage the growth of new businesses and increase our jobs base continue to build, so does the need to expand this resource for our businesses and economic development community. I believe you will find the additional new content both informative and useful, and invite you to share your thoughts with me about it. This year promises to be a pivotal one for our city in several areas. One of those is transportation. From the opening of light rail last August and the announcement that intercity passenger rail service from Harbor Park to Washington and points north will begin this December to the agreement between the Commonwealth and Elizabeth River Crossings that allows work to begin on a second Midtown Tunnel, we are seeing real progress on the transportation front. As home to the world’s largest U.S. Naval Base and with a proud heritage as a center for national defense, Norfolk is one the nation’s military capitals. Military and defense spending account for 45 percent of the regional economy. We are also ranked as the second best place in the country to look for a job for persons retiring from the military. The goal is for Norfolk to be the best city in the country for the military to do business and for veterans to live and work. To help guide our efforts we will be establishing a Military Economic Development Advisory Committee to enhance coordination between the city and the Navy and to grow the military’s presence here. We will also establish a separate Commission on Veterans Affairs to advise us on issues and concerns that affect veterans and their families. Norfolk is fortunate to have nearly as many jobs as it has people. We lead the region in average compensation, and over the last decade our poverty rate has declined. But we can do better. With a program called Employ Norfolk that will be operated out of the department of economic development, we will seek to increase employment rates, lower the poverty rate, increase enrollment in technical education programs, increase the number of GED recipients and increase awareness of job openings and job training opportunities. Success here will produce benefits across the city. Inside you will find more information on these and other topics. Please enjoy this update on Norfolk’s progress and plans. Thank you for your commitment and for all you do to make Norfolk a better home for our families, for our children and for our grandchildren. Sincerely, Paul D. Fraim Mayor

Building Our Future Now ■ Passenger Rail Station

■ Norfolk Works — More than $2 billion in construction

— Amtrak Service Begins in December The station project will serve Amtrak intercity passenger rail service from Norfolk to Petersburg, Richmond, Washington, D.C., and points beyond. Located at Harbor Park adjacent to the current light rail station, it is a 3,500-square-foot facility which includes a 725foot-long platform partially covered with canopies. The Amtrak train service will utilize the Norfolk Southern rail line. The train will have an engine and seven passenger cars. Hampton Roads Transit will

projects, goods and services and jobs start pouring into our local cconomy in 2012.

■ Elizabeth River Crossings

— A Public/Private Partnership Will Deliver Economic Impact and Jobs A new and expanded transportation infrastructure also known as the Downtown Tunnel/Midtown Tunnel/Martin Luther King Freeway (MLK) Extension Project will enhance connectivity throughout the region. This is a $1.9 billion public-private partnership in Norfolk and Portsmouth. The project involves more than $1 billion in construction works, creation of 500-plus construction jobs, approximately 200 jobs related to ongoing operations, and a $170 to $254 million increase in regional productivity according to The Hartgen Group study. The project will also engage locally owned, small and disadvantaged business enterprises. Construction will begin in 2012. Construction will deliver: • A new two-lane tunnel under the Elizabeth River adjacent to the existing Midtown Tunnel. Currently, 41,000 cars use the Midtown Tunnel daily. It is the most heavily traveled two-lane road in Virginia and the most congested.

provide connecting regional bus, light rail and ferry service. Private taxis and shuttles will be available in the parking lot. The $3 million project has been achieved with support from Gov. Bob McDonnell, the General Assembly, the Department of Rail and Public Transportation, Norfolk Southern, CSX, Amtrak, and all of the cities in the region.

■ Multi-Modal Transportation Center — To Grow With Our Needs Construction begins in 2012 at Harbor Park on a multi-modal passenger station where bus, ferry, light rail and passenger rail will connect, helping fulfill the dream of seamless passenger rail service operating out of South Hampton Roads. • Initial phase will construct the train station.

• Maintenance and safety improvements to the existing Midtown Tunnel.

• Amtrak service is supported by $87 million in State funding for related track, signal and siding improvements.

• Minor modifications to the interchange at Brambleton Avenue and Hampton Boulevard in Norfolk. • Maintenance and safety improvements to the existing Downtown Tunnel.

• Future phases of the multi-modal center to be advanced in conformance with the master plan as funding is identified from all potential sources to eventually include higher speed intercity passenger rail.

• Extension of the MLK Freeway from London Boulevard to Interstate 264 (I-264), with an interchange at High Street.

• Project would be a catalyst for new commercial and residential development in the surrounding district.

NORFOLK 2012 ANNUAL REPORT

Building Our Future Now ■ The I-564 Intermodal Connector Project — VDOT Projects Around the Naval Base

■ Bus Transfer Station

— Proposed Plan Under Consideration A $5.5 million plan is under study for a new bus transfer station. The facility would be designed to blend in with the proposed redevelopment of the St. Paul’s area, which involves demolition of a public housing project replaced with mixed-income housing and mixed-use development. Plans are for 14 bays for buses, which would allow 50 buses per hour to arrive and depart.

Sub-contracting Opportunities Soar with SWaM and DBE Certification

Source: Virginiadot.org

The purpose of this $170 million project is to provide a safe, high-speed, highway connection from the existing I-564 to the Norfolk International Terminals and the Norfolk Naval Station. This road realignment will help alleviate congestion and improve the level of service on city and naval station streets. The road repositioning will also reduce truck traffic on the adjacent roadways, in addition to being the first section in place for the proposed next project, Patriot’s Crossing. Construction starts in Spring 2013. The key elements of the project are: • Four lanes separated by a grass median. • A realignment of I-564 for future crossings under the Elizabeth River. • The redirection of truck traffic from Hampton Boulevard to the ports. • Installation of variable message signs and traffic cameras. The project will: • Support the military via improved methods for mobilizing people and goods. • Eliminate at-grade railroad crossings. • Connect the ports to the interstate system via a freeway link to reduce truck traffic on the local network.

The City of Norfolk is encouraging Norfolk businesses that qualify to become SWaM Certified to enhance competitiveness for participation in opportunities extended to SWaM and DBE companies. Go to www.dmbe.virginia.gov/swamcert.html. The SWaM certification program is administered by the Virginia Department of Minority Business Enterprise (“DMBE”) and is the Commonwealth of Virginia’s effort to help small, women- and minority-owned businesses with doing business with state government entities. Applicants to the SWaM certification program must complete the online application for certification and provide the required documents with the application to be considered for certification as a small, women- or minority-owned business. The DT/MT/MLK Extension Project has numerous subcontracting opportunities available for DBE and SWaM firms. Contracting opportunities include, but are not limited to: • Asphalt paving • Building demolition • Clearing and grubbing • CMU • Concrete flatwork (curb, gutter sidewalk) • Concrete pumping • Dewatering pumping • Directional drill 30-inch waterline (includes tie-in) • Directional drill 36-inch sanitary sewer (includes tie-ins) • Diving • Dredging • Electrical (lighting, signals, ITS) • Environmental consulting • Erosion control (land based) • Fencing (permanent) • Fencing (temporary) • Framing • Grassing/seeding/sodding • Guardrail • Hardscape • Instrumentation and geotech monitoring • Land surveying • MSE wall installation • Painting of tunnel interior

NORFOLK 2012 ANNUAL REPORT

• Pedestrian bridge at MLK • Preconstruction survey • Project security/surveillance • QA/QC services • Rebar installation • Roadway grading and drainage • Roadway signs • Roadway striping and markers • Roadway underdrain • ROW acquisition services • Sanitary sewer relocations • SIP decking • Sound and barrier walls • Stairways • Temporary metals • Towing from Norfolk (dredging specialty) • Towing from Sparrows Point to Norfolk (dredging specialty) • Traffic barrier walls • Traffic control devices • Traffic management plan (MOT) • Trucking (tri-axle) • Tunnel support buildings • Waterline relocations • Waterproofing • Welding service (tube bulkheads)

■ Norfolk Consolidated Courthouse Complex This new complex will house the General District, Circuit and Juvenile and Domestic Relations Courts. The first building will be constructed next to

■ The MacArthur Memorial Expansion Project The expansion will triple the changing exhibit space, add a sophisticated multimedia theater, provide a great hall for visitor orientation, and upgrade the memorial’s gift shop. Expansive use of glass will allow visitors to look in from and out to MacArthur Square. A sweeping curved wall along one street facade — the Story Wall — will present inscribed copper plates that highlight General MacArthur’s life and legacy. The $6 million project is currently under construction.

St. Paul’s Bloulevard. After completion, the current General District Courts portion of the public safety building will be demolished to make way for a new facility. This state-of-the-art $123 million courts facility will be a LEED-certified ‘green building’ constructed in multiple phases, with completion targeted for fall 2015.

■ Colonel Samuel L. Slover Memorial Main Library ■ Repositioning of Waterside Festival Marketplace Two finalists of the city RFP process for the repositioning provided compelling development ideas for Waterside Festival Marketplace. The Cordish Proposal features an entertainment and restaurant-themed experience to include live entertainment, 13 restaurants and a small food court.

The Slover Library will be built next to the Seaboard Building which currently houses the main library. The new facility will connect to the Seaboard building with a glass atrium and provide approximately 70,000 additional square feet of space for meeting rooms and a technology center. The project is financed, in part, by a gift of up to $40 million from the Batten Foundation. An endowment fundraising campaign is under way to secure a technology fund well into the future to support the goal of the Slover Library being the most technologically advanced library in the country. This $64 million project is set to open in spring 2014.

The Harvey Lindsay Proposal would replace the current facility will a new conference center, a walkway linking to Main Street, two mid-sized hotels, an office building and an enlarged marina with a restaurant.

NORFOLK 2012 ANNUAL REPORT

Major Projects Under Way ■ Medical

New Medical Offices

Private and public developments have effectively strengthened and diversified the City’s economy, with more than $1.5 billion in economic activity (not including light rail) completed, begun or announced in the last five years. Four medical projects accounted for more than $240 million.

Sentara Leigh Hospital Expansion

The Baylor Corp. purchased the office facility at Leigh Professional Center and a half-acre land parcel from Lingerfelt Development Cos. Baylor plans to add a new 16,000-square-foot, $6 million facility and remodel the original 8,000-square-foot building.

St. Mary’s Home for Disabled Children broke ground on Sept. 15, 2011, for The Albero House, a 10,000-square-foot, $3 million expansion that will have 12 private rooms for adults. It should be completed in late 2012.

In 2010, the hospital completed $20.5 million surgery and emergency department renovations. Construction has begun on a new project that will increase the hospital size by more than 40 percent to 506,000 square feet. The expansion includes replacing two bed towers with one taller tower, enlarging patient rooms and other areas, and adding more parking. The $126 million project is projected to open in 2014.

Eastern Virginia Medical School’s $80 million education and research building allows for a 30 percent enrollment increase in

Bon Secours DePaul Medical Center The hospital is under way with the Phase I construction which includes more than $20 million in an ongoing series of investments. The second phase features a new 105,000-square-foot, four-story medical office building to serve as a comprehensive cancer center.

The Renova Center The Renova Center is a unique facility with a unique concept of integrative health care solutions. An existing building is undergoing a multimillion dollar renovation. Renova’s new concept in health and health care will bring more than 40 jobs to norfolk. The 17,000square-foot center will house facilities for cardiology, longevity, fitness, nutrition, and hyperbaric oxygen therapy.

the school’s M.D. program. Home to the Sentara Center for Simulation and Immersive Learning, EVMS is a vital asset for Norfolk and Hampton Roads. It annually provides millions of dollars in charitable services and exerts a regional economic impact approaching $1 billion. With nearly 1,400 employees, it is one of the city’s largest employers.

Lake Taylor Transitional Care Hospital In 2011, the hospital completed its three-year modernization project with the completion of the patient care units. The project included the redesign of patient rooms to enhance patient privacy, new amenities, and technological upgrades featuring the latest in patient care needs. Expansion of nurses stations accommodate modern technology and staff. This renovation yielded 60 private patient rooms and totaled 37,745 square feet.

Health Care Hospital Sentara Norfolk General Sentara Leigh Hospital Bon Secours DePaul Medical Center Children’s Hospital of The King’s Daughters Lake Taylor Rehabilitation Institute Hospital for Extended Recovery

NORFOLK 2012 ANNUAL REPORT

Beds 549 250 214

Acute Care Acute Care Acute Care

130 104 35

Pediatric Specialty Transitional Transitional

■ Cultural Zoo Veterinary Hospital & Animal Wellness Campus This facility will provide optimal care for the larger number of animals the zoo will host with the addition of the new Asia - Trail of the Tiger exhibit. Consistent with the zoo’s commitments to recreation

tion has increased 39 percent, and the museum has had tremendous response from visitors to its free daily demonstrations, educational classes and visiting artist series. The 7,000-square-foot Glass Studio, along Chrysler’s New Glass Studio with the museum’s glass collection, is the impetus of the region’s emergence as the East Coast center for glass.

Norfolk Collegiate Center for the Arts This performing arts center featuring a 425-seat theater will become an unforgettable showcase for student productions, as well as a regional venue for the best of the performing arts. The new $8.5 million center will include an on-site art gallery. An $8.5 million project. The project should be completed in spring 2013. and education, the new veterinary hospital and animal wellness campus will not only deliver the highest level of animal care, but will also provide an educational experience, providing information on animal medicine; the benefits of good nutrition, outdoor activity and exercise; and how our food is grown – including fruit orchards and vegetable gardens. Visitors will be able to look through viewing windows into treatment, surgery and laboratory rooms, and the animal diet kitchen. One of the goals of the $4 million project project is to inspire children to pursue careers in the medical sciences. In 2011 the zoo drew more than a half million visitors – a 23 percent increase – and saw a 40 percent increase in revenue.

Chrysler Museum In fiscal year 2012/13, the Chrysler Museum of Art will begin a transformation project to add 10,000 square feet of gallery space with the addition of two wings flanking the main entrance. This new space will increase the Museum’s capacity to display paintings and sculptures, as well as enhance the display of its world-class renowned glass collection. The expansion will also allow the museum to add new catering facilities, relocate the passenger elevator, improve visitor circulation, upgrade antiquated HVAC systems to better preserve the collection and improve access for visitors with disabilities. The transformation is scheduled to be completed in 2014. Other major initiatives by the museum include the new glass studio, which opened in November 2011. Since the opening, visita-

Governor’s School for the Arts The city is working with the school to renovate the historic Monroe Building on Granby Street in support of efforts to consolidate its campus downtown.

As the Commonwealth’s cultural center – with the largest performing arts groups in Virginia – Downtown Norfolk provides an environment of professional artistic and educational resources: • • • • • • • • • •

The Virginia Symphony Orchestra The Virginia Opera The Virginia Stage Co. The Virginia Arts Festival Todd Rosenlieb Dance Center The d’ART Center The Chrysler Museum and its new Chrysler Glass Studio Hurrah Players Tidewater Community College Arts Programs Three libraries: New Slover library Tidewater Community College Library Jean Outland Chrysler Library ■

■

• A variety of venues, several owned and managed by the City of Norfolk, to

host any size of performance or exhibition including: Chrysler Hall Chrysler Museum (Student Gallery) Harrison Opera House Virginia Arts Festival Orchestral Rehearsal and Performance Space Roper Theatre Wells Theatre and the GSA Black Box Theatre Kaufman Theatre Hurrah Players New Black Box Theatre TRDance Studio Performance Space Selden Arcade/d’ART Center for Student Art Exhibits • A proven audience of over a half million people who attended arts events in downtown Norfolk last year. ■

■

NORFOLK 2012 ANNUAL REPORT

Major Projects Under Way Virginia Arts Festival Following last year’s record attendance, the Arts Festival has another great program in store this season featuring worldacclaimed soprano Renee Fleming, the legendary Itzhak Perlman, the American Ballet Theatre, and Academy Award winner and film-acting legend Al Pacino.

Virginia Tourism spreads the LOVE in Norfolk

Motion Picture Production Tax Credit – Effective January 2011, a series of refundable credits are available to motion picture production companies for qualified expenses related to productions filmed in Virginia. This credit is capped at $2.5 million for the 2010-2012 biennium and $5 million for any biennium thereafter. This credit is administered by the Virginia Film Office (VFO). There are three Motion Picture Production tax credits available.

OpSail 2012

■ School Construction Crossroads School A few of the many exciting features that will be contained in the city’s newest school building include a vegetative roof to promote environmental stewardship and science instruction, microphones in classrooms, Clerestory windows to bring natural light into art class and an outdoor dining pavilion. The new facility is due to open in September 2012 as a preK-8 school and a LEED-certified environmental facility, which meets standards for Leadership in Energy and Environmental Design.

■ Recreation A key measure of a community’s quality of life is the availability of recreational opportunities that appeal to all ages. Last year, several new projects began that will expand our recreational amenities.

Southside Aquatic Center This new $7.9 million facility will be approximately 20,000 square feet and contain pools and water features for recreation, training and competitive swimming. Project cost is $7,900,000 Anticipated completion is spring 2013.

Splash Park The Norview Community Center is planning for a new water feature splash park. The community completed surveys on what features it would like to see included in the splash park. A potential design is under study and construction planning is under way.

Kroc Center

Tourism employment in the region has increased from 9.8 percent of the workforce in 2007, to 11.7 percent of the workforce in 2011. The total expenditures estimated by the Virginia Tourism Corp. account for 4.6 percent of the gross regional product in 2010, or $3.7 billion. Regional efforts to market Hampton Roads as a destination are coordinated through the Coastal Virginia Tourism Alliance. – HRPDC Feb. 15, 2012, Economic quarterly

The estimated $84 million project for the 75,000- to 90,000square-foot education, creative arts and recreational building to be built at the corners of Princess Anne Road and Ballentine Boulevard in the Broad Creek area of Norfolk was a vision of Joan Kroc, widow of McDonald’s Corp. founder Ray Kroc. A $28 million endowment will fund its ongoing operation.

NORFOLK 2012 ANNUAL REPORT

Broad Creek This community provides growing families with a premier location enhanced with the addition of the Kroc Center. The Norfolk Redevelopment and Housing Authority will continue to study land use of property it owns in this area.

Norfolk Tides Dave Rosenfield, one of baseball’s living legends, retired as general manager of the Tides, a position he has held since 1963. In recognition of his more than 50 years in professional baseball and his numerous contributions to the Tides and the city, public art capturing his likeness will be commissioned for installation at Harbor Park.

The completed $22 million upscale apartments will feature a grand lobby, an indoor pool, an exercise center and a rooftop terrace with an outdoor kitchen.

New Properties The Maplewoods @ Olde Huntersville This NRHA project includes 27 townhouses built to EnergyStar/ EarthCraft standards – making it the largest green-built townhouse community in Virginia. Over the past 20 years, NRHA has invested more than $20 million in the redevelopment of the Church Street community.

Water’s Edge Apartments Plans are under way for a 246-unit apartment complex, on 17 acres, just south of the Campostella Bridge. Rents average about $1,300 per unit.

YMCA on Granby East Ocean View

The city provided the land for the YMCA to build a new $13 million facility in Park Place that will include the region’s most advanced early childhood learning center.

More than 210 homes have been built in East Ocean View (excluding East Beach) with an average value of $400,000.

■ Residential

East Beach

The city has successfully diversified its housing stock over the past decade with strategic housing initiatives.

Renovated Properties Riverside Lofts Having once played a vital role in Norfolk’s seafood industry, the Virginia Ice and Freezing Corp. building is being transformed into residential use. Built in 1920, the building once contained one of the largest ice and cold storage operations in Norfolk. The $16 million renovation takes advantage of the waterfront location with a pool adjacent to the Elizabeth River and a large common rooftop deck for residents. The 80,000-square-foot building will house 81 market-rate apartments and is located adjacent to a light rail stop. Construction commenced June 27, 2011, and is expected to be complete in July 2012.

The Rockefeller Completed in 1909, this National Register building will soon undergo an historic conversion that will turn the famed Navy YMCA into a handsome, well-appointed apartments. Donated to the city of Norfolk, by John D. Rockefeller, the building is one of the city’s and state’s most architecturally significant structures and a treasured downtown landmark.

East Beach units range in price from $350,000 to $1.5 million. To date, lot sales have totaled approximately $46.6 million representing nearly $230 million in home values and approximately $2.5 million in annual real estate taxes to the city. Average lot sales price in East Beach is $147,121. Average home sales price is $733,507. Tidewater Builders Association will hold its fall Homerama in East Beach for an unprecedented third time. Today, this 100-acre residential bay front development is valued at more than $313 million resulting from an initial $55 million investment. East Beach has won national awards for its design. It also hosted two Coastal Living Idea Houses.

■ Retail Urban Outfitters The A.A. Adams Building will soon be home to one of the country’s hip retailers, Urban Outfitters. Urban Outfitters will spend $2 million to renovate the building and lease 13,806 square feet of space on three floors to become the largest retailer on Granby Street.

NORFOLK 2012 ANNUAL REPORT

Major Projects Under Way Ace Hardware

Military Highway and Best Square

Ace Hardware will start construction in 2012 on a 12,000square-foot store, plus an outside plants and garden section. Located on Monticello Ave. between 26th and 27th streets to Church Street, the project is a $3.5 million investment. It will provide 35 jobs with a majority of the employees to be residents within the community.

The Urban Land Institute will study the Military Highway and Best Square area this summer with the cityâ&#x20AC;&#x2122;s leadership and civic organizations. The study will focus on repositioning and optimization of land use.

CVS Stores CVS Caremark Corp., the nationâ&#x20AC;&#x2122;s largest pharmacy chain, entered the market this year with three stores, two on Little Creek Road and one on North Military Highway.

Wards Corner

Military Circle

Best Square With new development valued at $29 million now under way or announced, Wards Corner is beginning to experience long-awaited positive change. The city recently invested $2.7 million to acquire seven dilapidated apartment buildings in Denby Park. In what qualifies as the most significant development in years for the heart of the Wards Corner business district, developer Chris Perry recently announced plans for a new $18 million shopping center to be anchored by a Harris Teeter. Demolition of the existing center on the southeast corner of Granby Street and Little Creek Road is scheduled to begin this summer, and culminates years of work to purchase properties needed to proceed. Plans are for the center to open in 2014.

The Midtown Development Corporation announced a facelift to the Midtown Shopping Center estimated to be completed by October which coincides with the 65th Anniversary of the center.

NORFOLK 2012 ANNUAL REPORT

Investment: New & Expanding Businesses ■ Business

triple-layer-brick and free-span steel girder building is 52,000square-feet on the bottom floor alone.

Headquarters KTN

■ Port

Belgium-based Katoen Natie (KTN), a worldwide global logistics provider, is under way in Norfolk with a warehousing and distribution operation. KTN invested $10.5 million to purchase a portion of the former Ford Motor Co. plant from Jacoby Development Inc. and will refurbish the 662,000-square-foot former body shop. KTN will invest an additional $1.5 million in new equipment. Fully staffed, the project will create 225 new jobs. Today the company is ranked no. 1 worldwide in petrochemicals. KTN employs 9,300 employees in 28 countries.

• T. Parker Host expanded its accounting department in 2011 by 3,000-squre-feet and made office improvements in order to position the company for the future.

AECOM

• URS, an international engineering firm headquartered in San Francisco, has offices in Norfolk Industrial Park. The company hired 120 employees to service the Norfolk office.

With approximately 45,000 employees around the world, AECOM is the largest global provider of professional technical and management support serving to a broad range of markets, including transportation, facilities, environmental, energy, water and government. AECOM is leasing 24,000-square-feet in the Wells Fargo Building for its regional headquarters staffed by 155 employees with an average salary of $98,651.

■ Environmental

• Livingston International, a customs and compliance Chicagobased corporation with 2,300 employees worldwide, acquired Hipage in Norfolk to expand its U.S. East Coast presence.

■ Expansions/New Jobs Professional/Business Services

• Delphinus Engineering, with offices in Central Business Park, hired 70 employees. • Ryla, a customer service and tech support service company, hired 315 employees. It is a subsidiary of Alorica, Inc. • Universal Air Products, a manufacturer of air and gas compressors, filtration and drying systems, purchased a building in Norfolk Industrial Park for $1.6 million. • GE Infrastructure Water and Process Technologies invested $1.4 in expansion.

■ Retail Tidbits

Fugro & Poseidon Atlantic LLC A project development team owned by Real New Energy and Ecofys, a wholly owned subsidiary of ENECO which is a large utility and energy company headquartered in the Netherlands, has created Poseidon Atlantic LLC. The team consists of the Virginia Port Authority, Fugro, RNE and Ecofys. Ecofys developed a large wind turbine test/certification facility in the Netherlands that became operational in 2010.

■ Unique

FantomWorks Specializing in classic and antique car restoration, FantomWorks expanded to its new location and is in the process of renovating a former linen cleaning facility originally built in 1941. It has plans to be the largest classic car restoration facility in existence. This

The Mermaid Winery will be opening this year. O’Conners Brewery will expand into grocery stores. Studies are under way concerning home bakery businesses and mobile food trucks. Busking in city commercial areas became a reality.

■ Transportation Hampton Roads Transit, the regional transportation authority, is well on its way with a contemporary complex on 11 acres on 18th Street in Norfolk. The project cost is $69 million, most of it financed by federal and state funds, including grants, and some local funding. HRT is developing the three-building complex connected by pedestrian bridges.

NORFOLK 2012 ANNUAL REPORT

Investment ■ Manufacturing

■ Recent Investment

• HB Hunter Co., a chocolate and cocoa products manufacturer made improvements to its facility in the Ballentine area.

$180 million Wells Fargo Center

• Dynamic Manufacturing was established in Norfolk in 1982. The creators and executive team at Dynamic Manufacturing were the innovators in the repossession and towing industry. The company invented the original self-loading wheel-lift which is the most soughtafter technology in the industry. Dynamic has distributors throughout the United States, England, Australia, Ukraine, Russia, Scandinavia, Sweden and the Baltic States. • Viridian Motors of Virginia is beginning to produce electric vehicles. The EV truck comes in two models powered by a 6-volt AGM battery that gives the trucks up to 90 miles per charge. Viridian Motor Corp. (VMC) is a company devoted to advancing 21st century transportation technology using alternative fuels and propulsion systems.

• 22-story Class-A high-rise office tower • Monticello Station: 121 luxury apartments • Retail shops • Office Tower completed Summer 2010; 84 percent occupied

Wells Fargo Center

• 1,850 parking spaces in two garages

$17.6 million TCC Student Center • Completed in Spring 2011 • First community-college student center in Virginia

■ Business Parks Lake Wright East Construction of the interstate access ramps from Northampton Boulevard to I-64 has been completed and a traffic signaling system will be added. Lake Wright East consists of 23 acres of prime real estate surrounding Lake Wright with spectacular views. Itoffers a naming right interstate presence.

Central Business Park

$7.5 million Virginia Arts Festival: Clay and Jay Barr Education Center • Opened August 2010

• 7 properties with over 200,000 square feet of leasable space

$80 million Research and Education facility at Eastern Virginia Medical School

• Two available building sites

• Four-story 100,000 square-foot facility and parking garage

• 79 percent occupied

• Includes renovation of two existing buildings and a 26,000square-foot modeling and simulation center. Opened in August 2011

Norfolk Commerce Park • 34 properties with over 1.3 million square feet of leasable space

Norfolk Industrial Park

• 88 percent occupied

• 350 acres fully developed with over 300 businesses

Interstate Corporate Center

• 92.15 percent occupied

• 19 properties with 430,000 square feet of leasable space

Midtown Industrial Area

• 75 percent occupied

• 32 properties with 760,000-square-feet of space

Lake Wright Executive Park

• 92 percent leased

• 6 properties with over 410,000 square feet of leasable space

Riverside Corporate Center

• 96 percent occupied

• 7 properties with 308,000-square-feet of space

Source: CoStar Group, Inc.

TCC Student Center

• 99 percent leased

NORFOLK 2012 ANNUAL REPORT

Market Comparisons

Hampton Roads has sufficient population, household income and college educational attainment levels to support a full market strategy. • The population of Hampton Roads is greater than Richmond, Austin, Nashville, Milwaukee, Raleigh-DurhamChapel Hill, and Greenville and Charleston/Mt. Pleasant, S.C. • Hampton Roads has comparable or superior mean and median household income levels to similarly sized markets: ■

■

Hampton Roads’ mean household income is higher than the metros of Cleveland, Orlando, San Antonio, Columbus, Charlotte, Indianapolis, Nashville, Milwaukee, Jacksonville and the United States average. Hampton Roads’ median household income is higher than the metros of Cleveland, Orlando, San Antonio, Kansas City, Las Vegas, Columbus, Charlotte, Indianapolis, Providence, Nashville, Milwaukee, Jacksonville and the United States average.

Household Income Profile (2009 American Community Survey)

Hampton Roads has comparable or superior mean and median household income levels to similarly sized markets.

Households

Mean HH Median HH Income Income

26 Cleveland-Elyra-Mentor, OH

842,861

$64,196 $48,023

27 Orlando-Kissimmee, FL

750,316

$67,029 $50,391

28 San Antonio, TX

673,884

$64,386 $47,728

29 Kansas City, KS-MO

779,337

$70,901 $55,409

30 Las Vegas-Paradise, NV

672,907

$72,432 $56,080

31 San Jose-Sunnyvale-Santa Clara, CA

602,095 $110,437 $85,020

32 Columbus, OH

685,693

$68,777 $52,766

33 Charlotte-Gastonia-Concord, NC

640,604

$73,336 $53,168

34 Indianapolis-Carmel, IN

658,418

$70,152 $53,059

35 Austin-Round Rock, TX

582,532

$76,798 $57,109

36 Hampton Roads, VA

624,905

$70,589 $56,222

37 Providence-New Bedford-Fall River, RI-MA 612,138

$71,503 $55,652

38 Nashville-Davidson-Murfreesboro, TN

586,143

$69,405 $51,352

39 Milwaukee-Waukesha-West Allis, WI

607,884

$70,010 $53,517

40 Jacksonville, FL

502,864

$68,938 $52,550

U.S.

NORFOLK 2012 ANNUAL REPORT

$70,096 $51,425

SOURCE: U.S. CENSUS

Market Rank

Market Comparisons • Hampton Roads’ distributions of households at all income levels over $75,000 are similar to or superior to other markets of comparable size.

Income Distribution (2009 American Community Survey) Market Rank

PCT HH PCT HH PCT HH $75-$99,999 $100-$149,999 $150-$199,999

PCT HH $200,000+

26 Cleveland-Elyra-Mentor, OH 27 Orlando-Kissimmee, FL 28 San Antonio, TX 29 Kansas City, KS-MO 30 Las Vegas-Paradise, NV 31 San Jose-Sunnyvale-Santa Clara, CA 32 Columbus, OH 33 Charlotte-Gastonia-Concord, NC 34 Indianapolis-Carmel, IN 35 Austin-Round Rock, TX 36 Hampton Roads, VA 37 Providence-New Bedford-Fall River, RI 38 Nashville-Davidson-Murfreesboro, TN 39 Milwaukee-Waukesha-West Allis, WI 40 Jacksonville, FL

12.1% 12.0% 11.9% 13.8% 13.8% 13.2% 12.9% 12.3% 13.0% 13.2% 14.4% 13.9% 12.4% 13.4% 13.2%

11.2% 11.1% 1.0% 13.4% 13.2% 19.5% 12.6% 12.3% 12.5% 14.1% 13.5% 14.2% 11.3% 13.1% 11.7%

3.4% 3.6% 3.3% 4.3% 4.3% 10.4% 4.1% 4.2% 4.0% 5.1% 4.2% 4.9% 3.6% 3.8% 3.7%

3.0% 3.3% 3.2% 3.4% 3.4% 12.6% 3.3% 4.6% 3.5% 5.0% 3.0% 3.6% 4.0% 3.5% 3.4%

U.S.

12.3%

12.1%

4.2%

4.0%

SOURCE: U.S. CENSUS

• There are 96,000 college and university students in Hampton Roads. College and post-graduate degrees are more prevalent among the adult residents of Hampton Roads than among adults in such places as Cleveland and Nashville.

Educational Attainment (Population Age 25+) Market Rank

Some College

Undergrad Degree

Post Graduate

Total

21.2% 20.6% 22.9% 22.3% 24.5% 17.4% 19.9% 20.7% 20.1% 21.0% 24.9% 16.9% 20.3% 20.8% 22.8%

16.3% 18.7% 15.8% 20.9% 14.3% 24.9% 21.3% 22.1% 19.9% 25.6% 17.1% 17.5% 19.7% 20.3% 17.4%

10.0% 8.6% 9.7% 10.8% 7.0% 18.3% 10.9% 9.76% 10.3% 13.1% 10.0% 10.3% 9.6% 10.2% 8.6%

26.3% 27.3% 25.5% 31.7% 21.3% 43.2% 32.2% 31.8% 30.2% 38.7% 27.1% 27.8% 29.3% 30.5% 26.0%

U.S.

12.3%

12.1%

4.2%

16.3%

SOURCE: U.S. CENSUS

NORFOLK 2012 ANNUAL REPORT

■ Downtown Norfolk Downtown Norfolk’s penetration of the entire Hampton Roads market shows peaks among age and income groups most important to retailers. • Downtown’s 2010 market penetration was highest among 25 to 34 year olds and 55 to 64 year olds. • Non-work Downtown patronage peaks among households with incomes over $80,000. In 2010, 77 percent of Hampton Roads households with incomes over $80,000 visited Downtown Norfolk at least once for a non-work purpose. • Average annual frequency of non-work visits to Downtown rebounded from a low of 16.5 visits in 2005 to an average of 30 in 2010. Average non-work visit frequency was higher in 2010 than in 2000—the year following the opening of MacArthur Center. This demonstrates Downtown’s resiliency and the sustained impact of MacArthur Center on Downtown Norfolk after a decade of operation. • Average annual frequency of non-work visits is highest among 18 to 44 year olds as a reflection of the offering of shops, restaurants, and entertainment activities in Downtown Norfolk. Annual visit frequency peaks among 25 to 34 year olds — a segment that is perceived to be critical to retailers. Note, 25 to 34 year olds are one of Downtown’s most important customer segments as measured in two ways: they are one of the two age groups most likely to visit Downtown and they are the most frequent user group. • In addition to peak Downtown usage, households with incomes over $80,000 were high frequency visitors to Downtown Norfolk. The average number of non-work visits in 2010 by households with incomes over $80,000 was 42 trips. This is the equivalent of almost one visit per week. Retailers will benefit from the presence of 30,000 Downtown workers whose average household income is $90,900: • One-third (34 percent) of Downtown workers have household incomes exceeding $100,000; 15 percent have household incomes exceeding $150,000—more than twice the MSA’s proportion of households with incomes over $150,000.

NORFOLK 2012 ANNUAL REPORT

Norfolk is the Business, Finance, Educational, Medical and Cultural Center of the Hampton Roads Region Office Buildings 1 150 West Main, 2002 2 500 East Main, 1971 3 555 East Main, 1977 4 Bank of America, 1968 5 Dominion Enterprises, 2008 6 Dominion Tower, 1987 7 Main Street Tower, 1994 8 Norfolk Southern, 1989 9 Wells Fargo Tower, 2010 10 World Trade Center, 1984

Hotels/Areas of Interest 1 Chrysler Hall 2 Chrysler Museum 3 Courtyard Marriott 4 Crowne Plaza 5 Granby Theater 6 Half Moone Cruise Facility 7 Harbor Heights 8 Harbor Park 9 Marriott Hotel 10 MacArthur Center Mall 11 MacArthur Museum

12 Nauticus 13 Pagoda 14 Residence Inn 15 Scope 16 Tazewell Hotel 17 Town Point Club 18 Town Point Park 19 Sheraton Hotel 20 Spirit of Norfolk 21 USS Wisconsin

NORFOLK 2012 ANNUAL REPORT

Light Rail Line 1 Monticello Avenue Station 2 Plume Street Station 3 Government Center Station

Downtown Norfolk Drive Time Map Drive Time Data from Downtown Norfolk and Totals for South Hampton Roads, Spring 2010 Population Demographics

5-Minute Drive Time Radius

10-Minute Drive Time Radius

20-Minute Drive Time Radius

South Hampton Roads Cities

Total Population Population Density (Pop/Sq Mi) Total Households

25,620 4,822.6 10,445

130,647 3,640.8 52,017

638,925 3,041.4 242,648

1,065,837 933.2 399,796

Retail Centers (by GLA) Super Regional (800K+sq.ft.) Regional (400K-800K sq.ft.) Community Center (100K-400K sq.ft.) Neighborhood Center (<100K sq.ft.)

NORFOLK 2012 ANNUAL REPORT

Market Comparisons ■ Shopping areas Ocean View Ocean View Shopping Center 151-195 W Ocean View Ave Beach Town 9617-9635 Granby St Bay Street Shops 3201 E Ocean View Ave East Beach Shops 9545-9653 Shore Dr

East Beach The Villa Shoppes at East Beach 4500 Pretty Lake Avenue Little Creek East Shopping Center 3841-4261 E. Little Creek Road

East Little Creek Little Creek Plaza 2400-2420 E Little Creek Rd Roosevelt Gardens 2300-2378 E Little Creek Rd Wedgewood Plaza 1819-1859 E Little Creek Rd Little Creek Square 1710-1738 E Little Creek

Southern Shopping Center Bayview Plaza 7924-7930 Chesapeake Blvd Midway Shopping Center 837-855 E Little Creek Rd Little Creek & Tidewater Shops (Walmart) 7530-7870 Tidewater Dr Southern Shopping Center 7519-7525 Tidewater Dr

Wards Corner Wards Corner Shoppes 7623-7667 Granby St Wards Corner Mall 7528-7534 Granby St Kroger/ Workforce Development Center 201-207 E Little Creek Rd

Titustown Titustown Retail W. Little Creek Road at Diven St.

Meadowbrook Meadowbrook Shopping Center 7712-7726 Hampton Blvd

Glenwood Park Glenwood Shoppes 8401 Hampton Blvd

ODU The Shops at University Village 4216 Monarch Way

Riverview Riverview Retail 4100 Block of Granby St.

Bromley Shopping Center 6200 N. Military Highway

Ghent

Janaf

Colley Village Shopping Center 2301 Colley Ave The Center Shops 738-758 W 22nd St The Market at Ghent 728-730 W 21st St 21 West 520-536 W 21st St The Ghent Market Shoppes 2200 Colonial Ave Palace Station 404 W 22nd St The Corner Shops 2000 Colonial Ave The Palace Shops 314-320 W 21st St Palace Shoppes II 319 W 21st St 21st Street Pavilion 222 W 21st St Harris Teeter 1300 Colonial Ave

Home Depot/ Petsmart 1261 N Military Hwy Broad Creek Shopping Center 1209-1245 N Military Hwy Farm Fresh Supermarket 1200 N Military Hwy Wal-Mart SuperCenter 1170 N Military Hwy The Crossings at Janaf 1140 N Military Hwy Lowe’s Home Center 1081 N Military Hwy Janaf Shopping Center 5900 E Virginia Beach Blvd BJ’S Wholesale Club 5820 E Virginia Beach Blvd

Park Place Vicinity Park Place Shoppes 2701-2707 Granby Street Monticello Square 2801 Monticello Ave Five Points Farmers Market/Wolcott Center 2500 Church Street

Broad Creek Planned Retail at Broad Creek Ballentine Blvd & Princess Anne Rd

Church Street Church Square Shopping Center 820-850 Church St Church Street Crossing/Fresh Pride Grocery 720 Church St

Military Circle Military Square Shoppes 871 N Military Hwy Mega Office Furniture, The Dump 801 N Military Hwy Best Square 415 N Military Hwy The Gallery At Military Circle 880 N Military Hwy Military Crossing Shopping Center 5927-6013 E VA Beach Blvd Costco 850 Glenrock Road Dixie Square 5950 Poplar Hall Dr Thomas Corner Shopping Center 6147-6163 E Virginia Beach Blvd

Downtown MacArthur Center 300 Monticello Ave The Waterside 333 Waterside Dr

Brambleton University Shoppes 1500 East Brambleton Avenue

Spartan Village Park Avenue Shopping Center 1000-1026 Park Ave

Newtown Davis Corner Plaza 6660 E Virginia Beach Blvd Stoney Point Center 700 Newtown Rd River Forest Shores Shopping Center 160-164 Military Hwy

Berkley Berkley Center 201 E Berkley Ave

Lafayette North West Shopping Center 3527-3535 Tidewater Dr

Norview Five Points 1126 Norview Ave, N. Military Highway Super Kmart Shopping Center 6101 N. Military Highway NORFOLK 2012 ANNUAL REPORT

Source: City of Norfolk Real Estate Assessor’s Office, CoStar Realty Information, Inc.

Strategic Assets ■ Port & Rail

TOP 10 U.S. PORTS RANK PORT

New Incentives Barge & Rail Use Tax Credit Provides a $25 per TEU income tax credit for shippers that transfer their goods via barge or rail. Port Volume Increase Tax Credit Provides a $50 per TEU tax credit for any company engaged in the manufacturing or distribution of manufactured goods that increases its cargo moving through the port by 5 percent* in a taxable year.

1 2 3 4 5 6 7 8 9 10

TEUs

Los Angeles Long Beach New York/New Jersey Savannah Oakland Seattle The Port Of Virginia Houston Tacoma Charleston

U.S. MARKET SHARE

7,831,902 6,263,499 5,292,025 2,825,179 2,330,214 2,139,577 1,895,018 1,812,268 1,455,466 1,364,504

20% 16% 14% 7% 6% 6% 5% 5% 4% 4%

International Gateway

*The 5 percent requirement is waived for a major facility locating in Virginia that will import or export in excess of 25,000 TEUs in its first year.

International Trade Facility Tax Credit You may choose one: $3,000 income tax credit for every employee hired by a Virginia shipper that results from increased cargo moving through the port by at least 10% OR a credit of 2% of the cost of any capital improvement that facilitates increased cargo moving through the port.

Tools to Attract • Governor’s New Incentives • Available Office Product • Build-to-Suit Opportunities

• Heartland Corridor • CSX On-Dock-Rail APMT • Distribution Centers

Intermodal Connections Heartland Corridor National Gateway

Crecent Corridor

Craney Island Marine Terminal Total TEUs

• 54,000 jobs

1.2%

12.1%

VIP Containers

36.9%

Breakbulk Tonnage Ship Calls

• $6B in national benefits • Service to all U.S. markets in 48 states

26.4%

Rail Containers

-0.7%

Vehicle Units (Cars)

International Trade Lanes The Port of Virginia’s deep channels make it the only East Coast port able to handle world’s largest ships

35.7%

TOP 10 U.S. EAST COAST PORTS

The Future of Craney Island

RANK PORT

Over 1.9 million TEUs moving over the Port in 2011 were transported by: 4% Barges 30% Rail 66% Trucks

1 2 3 4 5 6 7 8 9 10

New York/New Jersey Savannah The Port Of Virginia Charleston Jacksonville Miami Port Everglades Baltimore Wilmington (NC) Palm Beach

NORFOLK 2012 ANNUAL REPORT

TEUs

U.S. EAST COAST MARKET SHARE

5,292,025 2,825,179 1,895,018 1,364,504 856,636 844,996 798,150 610,918 265,074 216,967

35% 19% 5% 9% 6% 6% 5% 4% 2% 1%

Strategic Assets World Trade Lanes – Shifts in Trade Good for Port of Virginia

Selected Distribution Facilities Using the Port of Virginia

Forecasted Global Demand

COMPARABLE VACANCY RATE AND LEASE

• Global cargo volumes rose 11% in 2010

RATE PER SQUARE FOOT Vacancy rate

• Forecasted to increase 300% by 2040 ■

Containerized trade grows 2X faster than the U.S. GDP

■

Fundamentals of growth are still the same - Outsourcing

New York City

- Growing U.S. consumption - Rapidly increasing efforts

Charleston

- Free trade agreements with South Korea, Columbia and Panama

Export

Import

Paper & Paperboard, incl. Waste Logs and Lumber Soybeans & Products Wood Pulp Grocery Products Mixed Metal Scrap Pet & Animal Feeds Poultry Tobacco Grains & Flour Products

Furniture Auto Parts Paper & Paperboard, incl. Waste Rubber, Natural Non-alcoholic Beverages Woodenware Toys Tobacco Granite Plastic Products

TOP TRADING PARTNERS Export

Import

China Germany Belgium Netherlands Indonesia India Brazil Japan United Kingdom Saudi Arabia

China Germany India Brazil Italy Indonesia Netherlands Belgium France Vietnam

11.2%

$18.38

Savannah $16.87 New York City

7.4%

Charleston

8.0%

Baltimore

Norfolk

12.4%

Baltimore

$47.38 $27.99 $21.45

Source: CoStar Group, Year-End 2011 Office Report, All Office

TOP COMMODITIES

17%

Norfolk Savannah

- Emerging markets

EAST COAST PORT Lease Rate Per Square Foot

Rail Norfolk Southern Corp. is one of the nation’s premier transportation companies. Its Norfolk Southern Railway subsidiary operates approximately 20,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States and provides efficient connections to other rail carriers. Norfolk Southern operated the most extensive intermodal network in the East and is a major transporter of coal and industrial products. Locally, Norfolk Southern is adding a track to allow passenger trains to run through a Chesapeake rail yard without interfering with coal trains. Construction will begin in late 2012 and will probably be complete in late 2013. The improvements are part of a state-funded infrastructure upgrade that also includes a passenger station at Harbor Park and a “wye” at St. Julian Avenue for turning around the passenger trains.

NORFOLK 2012 ANNUAL REPORT

■ Norfolk International Airport • Virginia’s first green airport • Served by American, Continental, Delta, Southwest, United Express and US Airways, with an average of 80 daily departures • 22 nonstop airport destinations, including Las Vegas, Dallas, New York, Boston, D.C., Charlotte, Atlanta, Chicago and Miami • Generates nearly 10,269 jobs and $1.1 billion in economic activity annually • In calendar year 2011, serviced over 3.2 million passengers and over 70 million pounds of cargo • All-cargo airlines serve NIA including Airborne Express, FedEx and United Parcel Service, and are supported by a large network of forwarders and customs brokers specializing in air freight Approximately $3 million was invested in the airport in 2011 in food court concepts and décor.

■ Transit Virginia’s First Light Rail System Opens to Huge Crowds Norfolk is the smallest city in America to build such a transit system. Work-week ridership has averaged 4,650 a day – far exceeding the original FTA projection of 2,900 and proving light rail to be a viable transportation alternative. Increased ridership numbers mean additional revenue for operation with operating costs already lower than budgeted. The Tide cost $317 million and is the least expensive light rail system built on a per-mile basis in recent times in this country. The city contributed only 17 cents of every dollar and the city has already begun to recoup that investment from revenue generated by transit-oriented development and increased economic activity.

More than 75,000 rode The Tide on debut weekend Over the three-day opening weekend, starting Aug. 19, more than 75,000 trips were taken for dining, shopping and work. “It was a near-perfect launch, with the crowds exceeding every expectation,” Norfolk Mayor Paul Fraim said. Overwhelmed, the free preview was extended through the next weekend. The City of Norfolk attributes more than $500 million in transit-oriented development since 2005 and new rehab projects, new tenants and entrepreneurial businesses are springing up. The Tide marks the beginning of a new era for public transportation in Hampton Roads. The rail line extends 7.4 miles from the Eastern Virginia Medical Center complex east through downtown Norfolk, adjacent to I-264 to Newtown Road. Eleven stations provide access to destinations of cultural, financial and entertainment centers. Development

Investment*

Description

388 Boush Street

$ 28,000,000

94 condominium units $155,000 $410,000 (2005) Lot 56 at Brambleton & Bute Sts. 240+ luxury rental residential units, ~500space garage. First Light Rail TOD. (2007)

Belmont at Freemason $ 45,000,000

Dominion Enterprises

$ 51,000,000

High-rise office tower with ground-floor retail and 444-space parking garage (2005) medical office, retail, parking (2006)

Fort Norfolk Plaza

$ 80,000,000

Franklin Building

$ 18,300,000

Mixed-use: 20 luxury condominiums, (1,300 - 6,000 SF); professional offices; $3.3 million acquisition cost; $15 million est. conversion cost (2005)

Harbor Heights

$ 38,000,000

Mixed-use residential 99 condominiums and retail market development with structured parking 317 spaces, TCC administrative offices, starting at $250,000 - $700,000 (2005)

Residence Inn by Marriott

$ 35,000,000

Brambleton & Boush 160-suite extended stay hotel (2007)

Rotunda

$ 18,000,000

66-unit condominium conversion (2005)

St. Paul’s Place

$ 25,000,000 90 condominiums on East Freemason Street starting at $165,000. Hampton Roads Housing Company and Wermers Development Inc. (2005)

Virginia Arts Festival

$ 7,500,000 Clay and Jay Barr Education Center: 13,000 SF headquarters and rehearsal studios (2007)

Wells Fargo Center $180,000,000 Mixed-use: 250,000 SF (22story) Class A office (70% leased), 160+ luxury apartments, 50,000 SF retail, 2 garages (~1,800 spaces) (2007) Transit Oriented Development Projects include:

NORFOLK 2012 ANNUAL REPORT

Strategic Assets FY 12 ESTIMATED OPERATING COSTS Source

Amount

% of Total

State Aid Federal Aid Norfolk

$1,316,949 $7,462,711 $2,391,057

12% 67% 21%

TOTAL

$11,170,717

100%

• 11 stations, with four park-and-ride locations that provide access to major areas such as: ■

Norfolk State University

■

Tidewater Community College (Norfolk Campus)

■

Harbor Park

■

City Hall

■

MacArthur Center

■

Sentara Norfolk General Hospital

365 Pass Discounts Extended to Small Businesses The GoPass365 program includes ridership on any of HRT’s transit services. Rates are per-person: • If your company has over 5,000 employees: $25. • If your company has 2,000 to 4,999 employees: $50. • If your company has 500 to 1,999: $75. • If your company has 250 to 499 employees: $100 • If your company has 100 to 249 employees: $125 • If your company has 10 to 99 employees: $200. • If your company has 3 to 9 employees: $250. • The cost for colleges and universities is $6.50 per year per student (and employee) Telework Expenses Tax Credit – Effective January 1, 2012, but before January 1, 2014, a tax credit may be granted to Virginia employers who incur eligible telework expenses or conduct telework assessments. Visit the teleworkva.org for more information.

NORFOLK 2012 ANNUAL REPORT

■ Norfolk is an International City The mission of the Norfolk Sister City Association (NSCA) is to foster international understanding, friendship, and cooperation by promoting people-to-people exchanges and continuing relationships between Norfolk and its international sister cities. Norfolk’s Sister City program began with the adoption of Moji, Japan (changed to Kitakyushu in 1963). Additional Sister Cities followed: Wilhelmshaven, Germany (1976); Norwich, Norfolk County, England (1986); Toulon, France (1989); Kaliningrad, Russia (1992); Halifax, Nova Scotia, Canada (2006); Cagayan de Oro, Philippines (2008); Kochi, India (2010); Tema, Ghana, Africa (2010). fDi Magazine ranked the American Cities of the Future 2011/2012, the first year to include competitive submissions from North and South America competing on various levels judged on their population size. Norfolk’s overall ranking of seventh small city on two continents took into account the six primary categories. Norfolk ranked sixth in its economic promotional strategy.

■ NATO’s Allied Command Transformation The Allied Command Transformation is headquartered in Norfolk. ACT is NATO’s leading agent for change, driving, facilitating, and advocating continuous improvement of alliance capabilities to maintain and enhance the military relevance and effectiveness of the alliance. The following countries are members of the Alliance: Belgium Bulgaria Canada Croatia Czech Rep Denmark Estonia France Germany

Greece Hungary Iceland Italy Latvia Lithuania Luxembourg Netherlands Norway

2010 Hampton Roads International Business Profile COUNTRY

# COMPANIES

% OF TOTAL

Austria

Canada

Denmark

France

Germany

19%

Iceland

Italy Japan Netherlands Sweden Switzerland

17%

United Kingdom

10%

Other*

15%

TOTAL

181

*Other includes Australia, Belgium, Brazil, Chile, China, Finland, Greece, Hong Kong, India, Israel, Liechtenstein, Norway, South Korea, Spain, Taiwan, Turkey

The Supreme Allied Command Transformation headquarters building at Naval Support Activity Norfolk is under construction. The work to be performed provides for an addition to the main building, demolition of an existing building and construction of the National Liaison Representatives building. Work includes the removal and replacement of a portion of existing Blandy Road, increased parking, and increased and improved supporting infrastructure and incidental related work. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, is the contracting activity. The project is expected to be completed by January 2015.

Poland Portugal Romania Slovakia Slovenia Spain Turkey United Kingdom United States

NORFOLK 2012 ANNUAL REPORT

â&#x2013; Military Military Bases in Hampton Roads Army Base

Naval Bases Joint Expeditionairy Base Little CreekFort Story

Naval Weapons Station

Norfolk Naval Shipyard

Fort Eustis

Naval Station Norfolk

Naval Air Station Oceana

Naval Air Station Oceana, Dam Neck Annex

Location

Norfolk

Virginia Beach

Yorktown

Portsmouth

Newport News

Active-duty personnel

54,151

7,803

4,088

12,468

1,311

7,700

Civilian personnel

14,570

2,206

5,221

5,623

839

7,904

5,700

Total personnel

68,721

10,109

5,578

18,091

2,150

18,427

13,400

Largest Naval installation in the world based on supported population. It is home to 64 ships, 16 aircraft squadrons and 386 tenant commands.

Provides support for Atlantic and Pacific fleets.

Provides support Major East Coast and training for base provides supAtlantic and port and services Pacific fleets. to ensure maximum military readiness of operational expeditionary forces and resident commands.

Provides weapons logistics, technical supply and related services to the Atlantic Fleet.

Naval ship repair.

Trains military transporters for Army, National Guard and other military operations

Fleet Information

Source: Virginia Business

Navy Statistical Data for Hampton Roads Active duty in Hampton Roads Reserves in Hampton Roads Retired and Survivors in Hampton Roads (estimated) Military Family Members in Hampton Roads Ships Homeported in Hampton Roads Aircraft Squadrons Homeported in Hampton Roads Military Workers in Hampton Roads Federal Civilian Workers in Hampton Roads Military Workers in Norfolk Federal Civilian Workers in Norfolk

Active-duty military Retired military/survivors Civil Service Non-appropriated funds Total annual payroll Total procurement Total direct economic impact

FY 2000 82,432 3,985

FY 2001 82,896 3,710

FY 2002 85,030 3,800

FY 2003 85,002 4,100

FY 2004 FY 2005 83,468 84,873 4,300 3,300

FY 2006 83,906 NA

FY 2007 80,389 NA

34,000

35,500

35,900

38,200

40,100

40,600

58,268

43,966

46,786

47,557

108,000 107

105,000 104

107,000 100

104,000 97

120,500 122,100 90 93

119,100 93

100,796 94

96,512 84

97,724 83

105,615 84

39 82,432

39 82,896

36 85,030

35 85,002

35 83,468

33 84,873

34 83,906

34 80,389

34 84,283

35 86,377

36 82,463

28,125 54,827 10,410

27,550 56,837 10,251

27,962 59,649 10,493

27,531 60,416 9,886

27,372 58,490 9,593

26,877 60,060 9,165

27,936 58,902 9,972

31,046 54,696 14,362

31,663 56,001 16,563

35,987 53,958 17,334

37,813 51,547 18,957

38,700

FY 2010 82,463 NA

Economic Impact of the Navy (In millions) FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 $2,773 $3,036 $3,244 $3,977 $3,857 $4,122 $4,639 $4,542 $4,418 $4,887 $4,773 $650 $690 $733 $784 $783 $835 $883 $1,309 $1,104 $1,199 $1,228 $1,182 $1,243 $1,348 $1,452 $1,519 $1,539 $1,626 $1,898 $1,914 $1,945 $2,058 $97 $119 $116 $117 $95 $99 $115 $118 $113 $138 $142 $5,124 $5,121 $5,476 $6,370 $6,294 $6,626 $7,263 $7,867 $7,549 $8,169 $8,202 $3,066 $7,917 $4,465 $3,400 $3,675 $4,145 $5,336 $6,056 $7,139 $6,684 $5,270 $8,190 $13,038 $9,941 $9,770 $9,969 $10,771 $12,599 $13,923 $14,688 $14,853 $13,472

Source: "The Navy in Hampton Roads," by Navy Region Mid-Atlantic Public Affairs Office A fiscal year runs from October 1 through September 30. FY 2010 is from October 2009 to September 2010.

FY 2008 FY 2009 84,283 86,377 NA NA

NORFOLK 2012 ANNUAL REPORT

■ The Military in Hampton Roads The presence of the military in Norfolk has a significant impact on the local economy. The city is the home of the world’s largest naval complex, with headquarters for Commander in Chief of U.S. Atlantic Command, NATO's Supreme Allied Command Atlantic, Commander in Chief U.S. Atlantic Fleet and other major naval commands. Hampton Roads is the largest center of Coast Guard units in the world with the Atlantic Area Command and Maritime Defense Zone Atlantic in Portsmouth and its Maintenance and Logistic Command Atlantic headquarters in downtown Norfolk. The Navy’s newest local command, the Navy Reserve Forces Command, relocated to Norfolk from New Orleans in 2009. The Reserve Forces Command is the global headquarters for more than 68,000 reserve sailors and brought approximately 450 military and civilian employees to Hampton Roads. The Command is responsible for readiness, oversight, manpower management, logistics, mobilization and training of reserve sailors.

■ Regent’s study and OppInc

A recent study by Regent University Military titled Workforce Development Study (available from their website) found that among those exiting military members who intend to stay in Hampton Roads after transition, some 35 percent cite employment opportunities, followed by 33 percent who say Hampton Roads is a desirable location in which to live, 27 percent indicate the military/veteran community, 27 percent cite the educational opportunities, and 18 percent note the cultural and social life. More transitioning military information is available from Opportunity Inc. www.opp-inc.com. The data procured from Chmura Economics is a sample of the training and experience held by this highly skilled population.

Top Occupations for Military Exits in Hampton Roads Description

% Exits

Police and Sheriff’s Patrol Officers...................................6.59% Aircraft Mechanics and Service Technicians.....................4.96% Captains, Mates and Pilots of Water Vessels....................4.22% Medical Records and Health Information Technicians...................................................4.16% Avionics Technicians........................................................3.81% Explosives Workers, Ordnance Handling Experts and Blasters .......................................................3.73% Artillery and Missile Crew Members.................................3.53% Command and Control Center Specialists .......................3.46% Postal Service Clerks.......................................................3.20% Electrical and Electronics Repairers, Commercial and Industrial Equipment.............................3.13% Cooks, Institution and Cafeteria ......................................3.10% Infantry ...........................................................................2.23% Ship Engineers................................................................2.23% Electric Motor, Power Tool and

Employers in Hampton Roads are undoubtedly aware of the vast military presence and impact of the defense industry on the regional economy. In 2010, Hampton Roads’ defense spending topped $20.7 billion. According to Chmura Economics, in the period between July 1, 2010, and June 30, 2011, more than 6,500 military personnel exited the service and opted to remain in Hampton Roads.

Related Repairers ...........................................................2.12% All Others......................................................................49.53% Source : Chmura Economics for Opportunity Inc.

NORFOLK 2012 ANNUAL REPORT

■ Bio R&D in Norfolk

Norfolk State University – The Marie V. McDemmond Center for Applied Research

Nanotechnology state-of-the-art Clean Room

EVMS state-of-the-art workforce training includes research and discovery, its new research and classroom building, in the George L. Wright Centre for Biomedical Proteomics utilizing mass spectrometers and analytical equipment.

Translational Research Resources and Core Laboratories Proteomics and BioRepository Microscopy and Imaging Resources Translational Animal Models Epidemiology and Biostatistics Technology Transfer and Commercialization

The Edward E. Brickell Medical Sciences Library

A virtual operating room is jointly run by EVMS and ODU as an asset of the National Center for Collaboration in Medical Modeling and Simulation. National Research Center Frank Reidy Research Center for Bioelectrics Interdisciplinary center studying biological and medical applications of very short, pulsed-power technology on processes ranging from wound healing, decontamination, cancer therapy, imaging and cardiovascular diseases.

Innovation Research Park currently consists of two 100,000-square-foot Class-A wet/dry lab buildings located within the 75-acre, mixed-use University Village on the campus of ODU in Norfolk. IRP was designed to leverage the access, proximity and infrastructure of ODU.

Business Community Insight Therapeutics

LifeNet Health/Saving Lives, Restoring Health Largest organ procurement and tissue banking organization

Class A office and wet/dry lab Flexible wet lab suites & offices

More than 20 bioscience-related companies providing diverse products and services are located in Hampton Roads:

CIRS/Tissue Simulation & Phantom Technology: Computerized Imaging Reference Systems Inc.

EVMS Biomedical Research: Clinical Translational Focus

• • • •

BioScience Consultants LLC Beaufort LLC Eye Rx Cell Microcontrols

NORFOLK 2012 ANNUAL REPORT

■ Bio R&D Tax Credit

Marie McDemmon Center for Applied Research at Norfolk State University

The first refundable research and development tax credit in the Commonwealth of Virginia was established. This was the top priority of the Virginia Biotechnology Association. For every $1 spent on research in Virginia, there is an additional $13 of economic impact.

Research and Development Tax Credit – Effective January 1, 2011, but before January 1, 2016, an income tax credit may be granted for expenses incurred for “qualified research and development” conducted in Virginia. Taxpayers are not eligible to apply for this credit for expenses incurred on research involving embryonic stem cells/tissues. This credit is capped annually at $5 million. Taxpayers may apply for a credit in the amounts of: 15 % of the first $167,000 of qualified research and development expenses, and/or 20 percent of the first $175,000 of qualified research and development expenses if the research was conducted in conjunction with a Virginia public or private college or university.

Research targets inflammation in effort to break link between obesity and disease EVMS has secured a major, five-year research grant from the National Institutes of Health that may lead to ways to prevent the development of diseases linked to obesity. The $1.8 million grant supports a multidisciplinary study of how to safely thwart chronic inflammation. Scientists believe that inflammation triggers disease in people who are overweight. www.evms.com

Regional Bio Research Clusters & Modsim Collaboration Focus Areas: • • • •

The new center focuses on advanced research in computational science, engineering, and materials science and home of NSU’s advanced research in Information Assurance, next-generation labs, modeling and simulation, photonics, nanotechnology, crystal growth, device fabrication and sensors development. It has a 100/1000 Cleanroom. There is planned expansion for private sector incubator. www.E2f-nsu.com

The Thomas Jefferson National Accelerator Facility The Jefferson Lab is a U.S. DOE facility for scientists worldwide to conduct basic research of the atom’s nucleus at the quark level. Partners applied research using the Free-Electron Lasers based on technology developed at the lab to conduct physics experiments. www.cabaf.gov

Old Dominion University Business Gateway The Business Gateway is a partner of VPMEP, a network affiliate of NISTMEP. This is a national network of more than 59 affiliate centers, bringing enterprise expertise to more than 149,000 businesses across the United States. The NIST affiliation brings a state-of-the-art knowledge base and access to a national network of expertise, assuring clients that the latest technical knowledge will be brought to bear on their problems. www.vatpdc.com

Virginia Modeling, Analysis and Simulation Center VMASC is a multidisciplinary, not-for-profit, collaborative enterprise center of the Old Dominion University Research Foundation. Working with more than 100 industry, government and academic members, VMASC furthers the development and applications of modeling, simulation and visualization as enterprise decision-making tools to promote economic, business and academic development. www.vmasc.odu.edu

The Frank Reidy Research Center for Bioelectrics

Homeland Security & Defense Marine & Environment Imaging Disease Prevention

FRRCBE is an ODU and EVMS partnership that studies the interaction of electromagnetic fields and ionized gases with biological cells. Findings are applied to the development of medical diagnostics, therapeutics, and environmental decontamination. www.odu.edu/engr/bioelectrics

■ High Tech R&D Assets

Computational Intelligence and Machine Vision Laboratory Vision Lab

Innovation Research Park @ ODU A Class-A office/lab center with buildings located on the University Village Campus, a mixed-use community of office, retail, residential and research space, it’s one of the few research parks in the country located on the campus of its research institution. ODU’s Office of Research and several other centers are located within the complex. This unique innovation zone integrates world-renowned scientists and research capabilities with technology-intensive private sector companies. www.irpodu.com

The focus of the Computational Intelligence and Machine Vision Laboratory is to develop new algorithms and architectures for realtime applications in the areas of signal processing, image processing, computer vision, pattern recognition, artificial neural networks and bio-mimetic object-vision recognition. www.eng.odu.edu/visionlab

CEE Computing Laboratory CEECL is a state-of-the-art computing facility networked in a 100TX (100 mbps) speed through local fiber-optic intelligent switch

NORFOLK 2012 ANNUAL REPORT

Technology Virginia Institute of Marine Science

hubs. All CEECL computers are capable of accessing the ODU Sun StarFire E-10000 Parallel Supercomputer, an Intel Paragon vector SuperComputer, as well as other core servers in the campus, the computing facilities at NASA Langley Research Center and other computing facilities around the country. www.eng.odu.edu

VIMS provides research, education and advisory service to government, citizens, and industry. Research at VIMS extends from inland watersheds to the open ocean, with a primary emphasis on coastal and estuarine science. www.vims.edu

EVMS Office of Technology Transfer

Langley Full-Scale Wind Tunnel

This office’s goals include licensing and facilitating corporate partners to commercialize EVMS technologies and inform the public of EVMS inventions. www.evms.edu

LFST offers a wide range of services for full-scale and large-scale aerodynamic testing and research support to address a diversity of aerospace, surface vehicle and specialty applications. LFST is operated by a professional staff, employed by the Old Dominion University Research Foundation and managed by the Department of Aerospace Engineering. www.lfst.com

Center for Material Research CMR is involved with cutting-edge research in well-equipped facilities in areas of crystal growth and nanotechnology, polymer processing, thin-film deposition, nonlinear optics and laser design, optical spectroscopy and magnetic resonance. www.nsu.edu

Center for Coastal Physical Oceanography

Students and faculty engage in modeling chemistry, atmospheric science and science education research with state-of-the-art equipment and software at the BEST Lab. www.nsu.edu

Research supported by the CCPO includes particle trajectory analysis, large-scale along-shore flow, modeling crossshelf transport mechanisms, effects of buoyancy forcing and description of coastal ocean systems. The center is particularly interested in the coupling of realistic physical models to ecosystems models in pioneering and innovative ways. www.ccpo.odu.edu

NSU Institute for Information Assurance Research

Virginia Spaceflight Center

IIAR incorporates protection, detection, and reaction capabilities which can be used to restore systems in the event of an attack or compromise. www.nsu.edu

NASA Goddard Space Flight Center’s Wallops Flight Facility, a center for aeronautic research, is now NASA’s principal facility for management and implementation of suborbital research programs. www.wff.nasa.gov

Bringing Education and Science Together

Lean Manufacturing Institute This institute addresses issues related to other business functions such as supply chain logistics, technology management, human resources, design and contracting. The primary goals of the institute are to conduct research, design and develop training programs and conferences, and help organizations implement them. www.eng.odu.edu

Applied Research Center An interdisciplinary team of researchers at the center work on scientific and technological problems in the areas of thin films, laser and plasma applications, materials technology, and the emerging fields of nanotechnology, biomedical engineering, sensor science and technology, and MEMS. Projects at the Center are sponsored by federal agencies, the Commonwealth of Virginia, and various industries and national labs. www.eng.odu.edu/arc

■ Environment & Space R&D Assets NASA Langley Research Center Currently working to design and test a new launch abort system for the next generation space capsules. Researchers are focusing on some of the biggest technical challenges of our time: global climate change, access to space and revolutionizing airplanes and the air transportation system. www.nasa.gov/centers.langley

The Maritime Institute: International Maritime, Ports and Logistics Management The institute is a point of coordination between the port community and ODU’s other maritime research activities, including the departments of oceanography and biological sciences and the Applied Marine Research Laboratory. www.odu.edu

■ Medical R&D Assets National Center for Collaboration in Medical Modeling and Simulation ODU and EVMS, have jointly developed a virtual operating room. The demonstration in ODU’s Cave Automated Virtual Environment (CAVE) involved neither a patient, nor functioning medical equipment. www.evms.edu/nccmms

The Epidemiology-Biostatistics Research Support Epi-Bio Core fosters excellence in research through faculty with epidemiologic and biostatistical expertise who provide consultation and education to the academic health center and develop independently funded research projects. www.evms.edu

NORFOLK 2012 ANNUAL REPORT

National Center for Collaboration in Medical Modeling and Simulation EVMS and ODU, plus academic, governmental and commercial partners, work to improve the quality and quantity of medical care available to U.S. military forces. www.evms.edu

Thomas R. Lee Center for Ocular Pharmacology

Cardiovascular and Renal Research Center

The mission of the center is to develop treatments for chronic and blinding diseases of the eye, particularly glaucoma. www.evms.edu

The center was established to promote research and discussion on topics related to cardiovascular and renal physiology. www.evms.edu

The Virginia Center for Breast Cancer Awareness

CONRAD CONRAD seeks to develop better, safer, and more acceptable methods of fertility regulation, with an emphasis on suitability for use in developing countries. Priority is given to moving promising leads through Phase I and II clinical trials. www.conrad.org

Glennan Center for Geriatrics and Gerontology The center apoerates a comprehensive program designed to promote wellness and prevent premature frailty in the elderly through a focused effort to train physicians in the special needs of the elderly. www.evms.edu

Jones Institute for Reproductive Medicine The nation’s first in-vitro fertilization clinic and today’s foremost reproductive medicine program, the Jones Institute offers nearly every form of infertility treatment available for men and women. It conducts research in menopause, infertility, contraception, preimplantation genetic diagnosis and more. www.jonesinstitute.org

The Virginia center was established in 2001 to foster awareness of current breast cancer screening guidelines, promote earlier detection of cancer and inform the public about ongoing breast cancer research at EVMS. www.evms.edu

Virginia Prostate Center A joint program with EVMS and Sentara Cancer Institute, the center conducts multidisciplinary clinical and basic research to find more effective treatments and more precise diagnostic assessment for prostate and other urological cancers. www.evms.edu

Dental Hygiene Research Center This ODU center practices safe, effective measures to prevent and treat common oral conditions. Researchers strive to expand knowledge of occupational risk assessment and ergonomic issues; support claims related to dental techniques, products and devices; and explore the relationship between oral and systemic health. www.hs.odu.edu/dental

Hampton University Proton Therapy Institute Pediatric Clinical Research Unit The unit conducts clinical investigations of new medications, therapies, infant formulas and vaccines. www.pediatrics.evms/ reseaarch.org

Bringing the latest, most precise cancer-fighting technologies to Virginia, HUPTI is the largest proton therapy institute in the world. The $225 million, state-of-the-art research and treatment center will treat more than 2,000 patients per year for prostate, breast, lung, eye and pediatric cancers. www.hamptonu.edu

Scientific Center for Biodefense The center develops strategies, techniques, interventions and tools to prevent or reduce the impact of a bioattack within the large population centers and military installations in the Hampton Roads area. www.evms.edu

Sleep Disorders Center With Sentara Norfolk General Hospital, the SDC provides the full range of diagnostic and treatment services for sleep disorders and conducts research on normal and problem sleepers. www.sentara.edu

The EVMS Strelitz Diabetes Center Researchers at the center investigate genes and protein products that will cause pancreatic islet cells to grow and make insulin. They also conduct research on reversing complications of diabetes, such as neuropathy. www.evms.edu

Center for the Comprehensive Care of Immune Deficiency (C3ID) at EVMS www.evms.edu Clinical Research Center at EVMS The CRC at EVMS researches products that impact women’s healthZA. Its clinical trial experience has encompassed many menopause and contraceptive therapies. In addition, the center has evaluated drugs that have potential use in the treatment of pre-term labor, endometriosis, urinary incontinence, intra-abdominal adhesions, bronchitis and epilepsy, among others. Funding for these studies comes from research foundations and corporate and government sponsors. www.evms.edu

The Hearing & Balance Center is located in the Bon Secours DePaul Medical Center. www.midatlantichearingandbalance.com

NORFOLK 2012 ANNUAL REPORT

■ Research studies

New Technologies Must be Developed through Targeted R&D

Wind – R&D incentives The U.S. Department of Energy announced in 2011 that $50.5 million will be awarded over the next five years to companies that will design turbines, and conduct environmental and economic research of this renewable energy source.

DIRECT EMPLOYMENT BY SECTOR-MARKET DOMINANCE 4,500

4,150

4,200

4,250

4,000 3,500

3,270

Operations & Maintenance Construction Ship Crew

3,000 Tower & Segments 2,500

Nacelles

2,000

Turbine Blades Generators

1,500

• • • • • • • • • •

Improvement in foundation design & materials Advance construction & O&M Methods New specialized vessels New blade design Downwind rotors Lighter & stronger materials Floating platform technology Increased project scale Gearless drive Cost-effective energy-storage systems

Sea Rise

1,000 500 0

Year 1 Year 2 Year 3 Year 4

Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Source: VEDP

EMPLOYMENT AT POTENTIAL OFFSHORE WIND ENERGY SUPPLIERS

As a first step in applying for federal funds, Norfolk has asked the General Assembly to commission a study on sea level rise and flooding in Virginia shoreline and coastal communities. When funded, partners in this ODU’s Climate Change and Sea Level Rise Initiative will include the Army Corps of Engineers and the Virginia Institute of Marine Science. Four project areas encompass the Hague, Pretty Lake in East Ocean View, Mason Creek and Ohio Creek near Norfolk State University.

Virginia has the most workers in the Mid-Atlantic Region for the sectors of shipbuilding and repair, marine construction, and transformer manufacturing Virginia has significant numbers of workers in the sectors of manufacturing of fabricated structural metal, mechanical power transmission equipment, and motors and generators. Source: VEDP

The VOW Coalition is made up of developers, manufacturers, utilities, localities, business and environmental groups, and other organizations and individuals who have an interest in offshore wind. Together they deliver a strong message, as the most diverse interests speak with one voice in support of bringing offshore wind energy to Virginia. Source: VEDP

Source: VEDP

NORFOLK 2012 ANNUAL REPORT

Economic Development Resources ■ How to Work with the Norfolk Department of Development Tools Utilized in Economic Development • Land • Infrastructure & Public Amenities • Performance-based Grants • Commercial Facade Program • Real Estate Tax Abatement • Economic Development Authority ■ Industrial Revenue Bonds • Special Districts ■ HUB Zone ■ Enterprise Zone ■ TIF Zone • State & Federal Programs and Incentives ■ Historic Rehabilitation Tax Credits ■ Neighborhood Assistance Tax Credit ■ Governor’s Opportunity Fund ■ Workforce Services & Retraining Tax Credit • Small Business Administration Programs

Expert Assistance The Norfolk Department of Development is composed of staff with business and industry experience specializing in technology, retail and commercial real estate, maritime and transportation, business services, government programs, research, analysis, permitting and engineering. Norfolk businesses and businesses looking to invest in the city are encouraged to contact the department. Depending on your needs, it will match you with a qualified person or team. This year, it will add a military workforce expert to connect the city’s business and military communities.

Hotel, meals, admissions and retail taxes are showing growth.

Data resources — Nationwide, gaining access to data resources is the No. 1 reason businesses work with ED organizations. • • • • • • • • • • • • • • • • • • • • • •

Research & analysis profiles Site selection assistance Demographic profiles Retail leakage reports Retail competitive markets reports Norfolk Navigator custom reports online Government liaison Small Business Administration co-op training events VDBA co-op training events Federal, state and local contracting seminars SWaM business bid information Certification of businesses with state and federal authorities Process assistance with review boards and permits Right-of-way collaboration EDA revenue bonds Outreach Site tours Social media/Facebook headlines Direct mail marketing Special events and projects Multi-departmental communications Business and industry knowledge and networking

■ The Economic Development Authority of Norfolk

The mission of the Economic Development Authority (EDA) is to create jobs, maximize the utilization of Norfolk’s real estate, foster business capital investment, increase revenue by growing the tax base, focus on efforts to build on the strengths and the needs of neighborhoods, and support minority and small businesses. The EDA is a political subdivision of the Commonwealth of Virginia created by the city to acquire, own, lease and dispose of properties to promote industry and induce businesses to locate and remain in Norfolk. The EDA is authorized to issue revenue bonds to finance facilities for non-profits, manufacturers and businesses in an Enterprise or Empowerment Zone. Neither the EDA nor the city has any liability under the bonds. Liability is assumed by the enterprises for which the facilities are constructed. Bonds are limited to manufacturing businesses, or businesses in Enterprise/Empowerment Zones, or 501(c)(3) non-profit organizations. Bond qualifications are determined by the Internal Revenue Code.

NORFOLK 2012 ANNUAL REPORT

Economic Development Resources Norfolk EDA supports ODU Business Gateway The Hampton Roads Procurement Assistance Center, located at Old Dominion University in Norfolk, exists to assist area businesses in establishing themselves to bid competively on federal, state and local government contracts. HRPAC helps large, small, minority-owned, woman-owned, and/or service disabled veterans identify procurement opportunities, registrations, proposal development, and the business development activities needed for contract award and subsequent sustainability. It works to expand the industrial base (ready vendors) of the federal government, providing the link between the government procurement offices, major prime contractors and the Hampton Roads businesses. From January 2010-March 31, 2011 more than 50 Norfolk businesses were assisted.

EDA Supports Culinary Institute of Virginia with Norfolk Scholarships In 2011, the EDA provided $16,375 in scholarships to Norfolk residents. The Culinary Institute and the Norfolk EDA have a matching grant available for City of Norfolk residents. The CIV is five years old and since that time, has grown from 45 students to 530. A recent job fair drew more than 40 employers.

■ Federal HUBZones A HUBZone is a “historically underutilized business zone” located within communities with low incomes and/or high unemployment. The U.S. Small Business Administration (SBA) administers the program and certifies businesses for eligibility. A HUBZone-certified business is eligible for set-aside and sole-source contracting opportunities, and receives preferences in full and open competition for contracts. The SBA has announced that it will be making changes to HUBZone designated census tracts as a result of the 2010 Census.

■ Commercial Façade Improvement Program The purpose of this program is to improve the appearance of commercial properties in designated commercial corridor areas in Norfolk. This grant program encourages private investment by providing matching funds for aesthetic improvements to commercial properties.

■ Citywide Incentives New Market Tax Credits — The NMTC program permits tax-

Sign up for Norfolk Development’s E-News and Receive Notices about Upcoming Events and LIKE us on Facebook! Go to www.norfolkdevelopment.com

■ Norfolk Enterprise Zone Virginia’s Enterprise Zone program provides state and local incentives to businesses that invest and create jobs within Virginia’s enterprise zones for up to $100,000 per grant building or facility for qualifying real property investments of less than $5 million.

payers to receive a credit against federal income taxes for making qualified equity investments in designated Community Development Entities (CDEs). Substantially all of the qualified equity investment must in turn be used by the CDE to provide investments in lowincome communities.

Real Estate Tax Abatement Program — This program, administered by the City of Norfolk Real Estate Assessor’s Office, offers taxpayers an opportunity to improve residential, commercial or industrial structures with tax reduction.

■ Commonwealth of Virginia Incentives • Virginia offers a variety of performance-based incentives, designed to target the needs of businesses and the development plans of localities and the state.

• Up to $200,000 per building or facility for qualifying real property investments of $5 million or more.

The following is a list of incentives offered by the Commonwealth:

• Up to $500/year per net new permanent, fulltime position earning at least 175 percent of the federal minimum wage with health benefits.

• Corporate income tax incentives

• Up to $800/year per net new permanent fulltime position earning at least 200 percent of federal minimum wage with health benefits.

• Tax incentives • Property tax incentives • Sales and use tax exemptions • Enterprise Zones • Technology Zones • Training programs

NORFOLK 2012 ANNUAL REPORT

January 1, 2010, the threshold has been reduced to 25 new jobs. Taxpayers can qualify for and claim a credit for only one tier per facility. Credits are subject to recapture if employment decreases during the five years following the credit year.

• Virginia Jobs Investment Program • Virginia Community Colleges • Workforce Investment Act • Infrastructure incentives • Economic Development Access Program • Rail Industrial Access Program • Transportation Partnership Opportunity Fund

■ Development Seminars & Events

• Virginia Coalfield Economic Development Authority

Quarterly Coastal Energy Forums, hosted by the City of Norfolk’s Department of Economic Development in partnership with the Virginia Offshore Wind Coalition, capitalize on the announcement by Governor McDonnell that 2011 Bio International Conference – Virginia has landed the first Wash, DC wind turbine test and certification Facility in the United States. Additional events include:

• Financial Assistance

• Entrepreneur Express

• Virginia Small Business Financing Authority

• Business One-on-One

• Community Development Block Grants

• Government Contracting

• Foreign Trade Zones • Discretionary incentives • Governor’s Opportunity Fund • Virginia Investment Partnership Grant Fund • Major Eligible Employer Grant • Virginia Economic Development Incentive Grant • Regional Assistance • Tobacco Region Opportunity Fund

• Management and Technical Support

• Growing Your Sales Seminar

• Center for Innovative Technology

• Special Project Outreach: Light Rail, OpSail Certified Businesses, Elizabeth River Crossings Matching Makers for Sub-Contracting

• Commonwealth Research Commercialization Fund • Virginia’s Small Business Development Center Network • International Trade

• Marketing Missions with state and regional partners • Trade Shows

Major Business Facility Job Credit Companies engaged in any business in the Commonwealth, except for retail trade business, may claim a Virginia Jobs Tax Credit if the taxpayer creates new fulltime jobs in excess of the threshold amounts established for one of the two credit tiers. The thresholds for the two credit tiers are as follows: Tier 1 — The qualifying threshold amount for Tier 1 is 100 new jobs for the establishment or expansion of a major business facility in Virginia. Please note that for taxpayers whose expansion year begins on or after January 1, 2010, the threshold has been reduced to 50 new jobs. Tier 2 — The qualifying threshold amount for Tier 2 is 50 new jobs for the establishment or expansion of a major business facility in a locality identified by the Virginia Economic Development Partnership as an economically distressed area or has been designated as an Enterprise Zone. Please note that for taxpayers whose expansion year begins on or after

■ Workforce in Training It’s your turn Employ Norfolk is a new initiative within the Department of Development with a goal of reducing unemployment. This will be achieved by increasing awareness of job openings and job training opportunities by reaching out to the city’s unemployed, by encouraging businesses to create apprenticeship positions, by increasing enrollment in technical education programs and by increasing the number of GED recipients. Employers and projects have already been identified that will need skilled workers over the next four years. By matching unemployed residents with available jobs Employ Norfolk hopes to lower the unemployment rate.

NORFOLK 2012 ANNUAL REPORT

Economic Development Resources Outreach efforts to kick-start the initiative will focus on: • Assisting potential subcontractors in acquiring their SWaM/DBE and pre-qualified certifications required for upcoming transportation projects with state and federal funding. Certified contractors can receive retraining tax credits for hiring workers. The Development Department will assist in job fairs and efforts to support the subcontractors as they are identified. • On-the-Job Training programs. State agencies such as VDOT offer OJT program training. • Apprenticeships. The Virginia Department of Labor and Industry (www.doli.org) features a search engine for job apprenticeships active by city employer. There are over 230 active apprenticeship occupations in Virginia. Employ Norfolk wants to encourage more registered apprenticeships by businesses and greater awareness of these opportunities. • Enhance awareness of the workforce development services provided by Opportunity Inc. and encourage utilization of the Virginia Employment Commission registration process by businesses and jobseekers. • Working with business organizations and initiatives to enhance technical training in Norfolk Public Schools • Veteran progams include Hire-A-Vet, Vet Franchise opportunities and Employers Seeking Vets.

Eligible Worker Retraining Tax Credit Eligible worker retraining includes approved non-credit courses provided by any of the Commonwealth’s community colleges or a private school. It also includes credit or non-credit retraining courses undertaken through an apprenticeship agreement approved by the Virginia Apprenticeship Council. Generally, the credit is 30 percent of all classroom training costs but is limited to up to $100 annual credit per student if the course work is incurred at a private school. The Department of Taxation is authorized to issue up to $2,500,000 of retraining credits annually. If total requested credits exceed this amount, the Department of Taxation will prorate the authorized credits.

■ New Workforce Initiatives for Transitioning Military To assist exiting military to civilian life, the city is establishing a Workforce Development and veterans services position. Additionally, the City Council has agreed to appoint a Military Economic Development Advisory Committee to provide guidance for the program and to enhance coordination between the city and the Navy and to grow the military’s presence here. The city will also establish a separate Commission on Veterans Affairs to advise it on issues and concerns 36

that affect veterans and their families. The city manager is also organizing staff around these initiatives. The goal is for Norfolk to be the best city in the country for the military to do business and for veterans to live and work.

The Hampton Roads Veterans Business Outreach Center at the ODU Business Gateway is designed to provide entrepreneurial development services such as business training, counseling and mentoring, and referrals for eligible veterans owning or considering starting a small business.

■ Small Business Administration Resources for Veteran and Reservist Small Business Owners If you are a veteran, reservist or National Guardsman and either own a small business or plan to start one, or you, as the owner, or your essential employee has been called to serve, there are many resources and services from the U.S. Small Business Administration, and you may be eligible. Start by going to the SBA website at www.sba.gov.

■ Registered Nurses in Short Supply – Training Grants Opportunity Inc., Hampton Roads’ workforce development board, and the Peninsula Council for Workforce Development were awarded a 4-year, $5 million grant from the U.S. Department of Labor to provide advanced healthcare education, training and job placement assistance. More than 330 people from across the metropolitan area will receive training under the grant for jobs averaging $43,000 per year.

■ New SMART Center at TCC The SMART Center aims to help build a skilled maritime and transportation workforce by facilitating the development and use of apprenticeships and partnerships between industry and educational professionals.

NORFOLK 2012 ANNUAL REPORT

Start Ups in Norfolk

■ How to Start A Business Visit www.norfolkdevelopment.com for links and downloads under Doing Business. Virginia Guide to Establishing a Business The guide summarizes the major state and local tax, labor, occupational and environmental regulations that may affect businesses in Virginia. Source: Virginia Employment Commission Startup businesses in Norfolk, VA

SBA Startup Guide

This small business guide is intended to serve as a roadmap for starting a business. It is both comprehensive and easy to use. It also includes numerous electronic links for additional information. Use this powerful interactive tool, with many supporting resources, to help you start a successful business.

Business Plan Template This template is designed to help you build a business plan. Review and complete each section of the template. At the end of the program you will be able to generate and save a formatted business plan which can later be further modified or presented as a final product. Completing this plan is a first step to building a successful business.

Business Plan Samples Get inspired with a gallery of 500+ business plans.

Norfolk Commissioner of the Revenue This site provides you with important tax information. Here you will find many links to information important to starting a business.

Zoning Information The Zoning Services Bureau is responsible for administering and enforcing the zoning ordinance of the City of Norfolk.

Building Permit Information Whether you are going to build a new structure from the ground up or make repairs to an existing structure, chances are you will need a permit for the work that is going to be done. You can get related information here.

■ Start Up

chief technology officer and in this role serves as an assistant to the president and associate director for technology within the office of science and technology policy. www.Startnorfolk2.com

■ Business Accelerator Opens in July! An accelerator program called HATCH will provide an intensive program customized for early stage startup companies. There are currently dozens of accelerator programs throughout the U.S. Started in New York and San Francisco, this increasingly common economic development tool will focus on technology and innovative business models with rapid, high-growth potential. Programs will be two to three months long and available to entrepreneurs from Hampton Roads and the Mid-Atlantic region.

■ Brain Drain to Brain Gain Initiative of the Greater Norfolk Corporation The city’s business leaders have launched a public initiative to make Norfolk and the region a magnet for talented young professionals. The survey will provide data of what young professionals are looking for in work, lifestyle and amenities to increase the competitiveness of Hampton Roads to attract and retain these coveted individuals that are being courted by other cities.

Start Norfolk is a network of passionate leaders and entrepreneurs on a mission to inspire, educate and empower individuals, teams and communities. Its second annual will be held April 27-29, 2012, and will feature Aneesh Chopra, the U.S.

NORFOLK 2012 ANNUAL REPORT

■ Higher Education in Hampton Roads The Hampton Roads region has a very robust higher education system:

• Art Institute of Virginia Beach • Aviation Institute of Maintenance • Bethel College • Bryant and Stratton College

• 96,672 students enrolled in 2008-2009

• Cambridge College

• 14,628 graduates in 2008-2009

• Centura College

• Over 45,000 students within 3 miles of downtown Norfolk –

• DeVry University

■

ODU – 24,466

• ECPI

■

NSU – 6,964

• Embry-Riddle Aeronautical University

■

EVMS – 904

• Everest College

■

Norfolk campus of TCC – 14,377

• Florida Insitute of Technology

■

46,711 total

• Fortis College • George Washington University • ITT Technical Institute • MedSpa Careers Institute • Saint Leo University • Strayer University • Troy University • Virginia Culinary Institute

■ Students Seeking Apprenticeships Are you interested in an apprenticeship program in maritime and transportation technologies? At Tidewater Community College, there are many opportunities available both in shipyards and at sea. Examples of shipyard apprenticeship positions include rigger, shipwright, machinist, electrician, pipefitter and more. At sea, apprentices can learn the skills of an able seaman, deckhand, steward and engineer, just to name a few. Go to www.tcu.pdu/wd/apprenticeship/apprenceship.html to see a list of apprenticeship programs in maritime and transportation technology. 1. Select a trade/occupation for which you have an aptitude or some previous experience. 2. Find out if you meet the minimum qualifications for that occupation. 3. Decide whether you can work under the required job conditions, which may be hazardous, dirty, uncomfortable or otherwise unpleasant. 4. Apply for an apprenticeship either directly to an employer in the occupations, the appropriate union, your state’s workforce development department, or the college or school sponsoring the program. 5. Take aptitude or other tests where required. If the apprenticeship committee has a waiting list of applicants, decide whether you’re interested enough to wait for an opening, or whether you should seek another option.

Colleges & Universities • Old Dominion University • College of William & Mary • Virginia Wesleyan College • Christopher Newport University • Norfolk State University • Eastern Virginia Medical School • Hampton University • Regent University

Community Colleges • Tidewater Community College • Thomas Nelson Community College • Paul D. Camp Community College • Rappahannock Community College

Other Educational Centers • Advanced Technology Institute • Apprentice School of Northrop Grumman ShipbuildingNewport News

NORFOLK 2012 ANNUAL REPORT

Economic Profile Employers by Size of Establishment

Economic Profile

City of Norfolk, Virginia • January 2012 Downtown Norfolk Vacancy Class A 150 West Main Street Crown Center Dominion Tower Main Street Tower Norfolk Southern Tower Wells Fargo Center World Trade Center Total

Rentable SF 225,498 58,674 403,276 187,000 293,035 299,887 366,106 1,833,476

Vacant SF 38,142 50,288 4,105 48,564 46,928 35,868 223,895

Norfolk city

% Vacant 16.91% 0.00 12.47 2.20 16.57 15.65 9.8 12.21%

Bank presence along Main Street includes Bank of America, BB&T, Monarch, Old Point National, PNCBank, SunTrust, TowneBank and Wells Fargo. Heritage Bank & Trust, Bank of Hampton Roads, Heritage, Bank of the Commonwealth and several credit unions are also located downtown. Source: CoStar Group, Inc., January 2012.

0 to 4 employees ..................................................2,678 5 to 9 employees ..................................................1,014 10 to 19 employees .................................................832 20 to 49 employees .................................................613 50 to 99 employees .................................................238 100 to 249 employees .............................................137 250 to 499 employees ...............................................35 500 to 999 employees ...............................................15 1,000 and more employees .......................................16 5,578

Employment by Size of Establishment Norfolk city

0 to 4 employees ..................................................4,690 5 to 9 employees ..................................................6,817 10 to 19 employees ...........................................11,365 20 to 49 employees ...........................................19,000 50 to 99 employees ...........................................16,266 100 to 249 employees .......................................20,955 250 to 499 employees .......................................12,694 500 to 999 employees .........................................9,560 1,000 and more employees ................................37,218 'Zero; no employment' typically represents new startup firms or sole-proprietorships. Source: Virginia Employment Commission, Quarterly Census of Employment and Wages (QCEW), 2nd Quarter (April, May, June) 2011.

50 Largest Employers

City of Norfolk, Virginia

Civilian Employment and Average Weekly Gross Wages 2nd Quarter, 2011 Number of Establishments

Construction Manufacturing Trade, Transportation & Utilities Information Financial Activities Professional & Business Services Education and Health Services Leisure and Hospitality Other Services Public Administration Natural Resources & Mining Total

Number of Employees

Average Weekly Wage

Percentage of Employment

397 143

4,493 6,300

$879 972

3.24% 4.55

1,271 103 598

25,589 2,544 8,090

788 1,037 980

18.47 1.84 5.84

1,017 21,090 787 37,832 611 13,519 566 4,061 75 14,224 3 13 5,578 138,564

1,080 15.22 844 27.30 307 9.76 543 2.93 1,367 10.27 751 0.01 $879 100.00%

Source: U.S. Bureau of Labor Statistics. Virginia Employment Commission, Quarterly Census of Employment & Wages Program. Totals include non-disclosable data.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28.

U.S. Department of Defense Norfolk City School Board Sentara Healthcare City of Norfolk Old Dominion University, Norfolk Children’s Hospital of The King’s Daughters Norfolk State University Norshipco Eastern Virginia Medical School Portfolio Recovery Association Postal Service Walmart Bon Secours DePaul Medical Center U.S. Navy Exchange Maersk Line Limited Norfolk Naval Station Tidewater Community College Sentara Health Management Bank of America Card Services Corp. Virginia International Terminal U.S. Department of Homeland Defense ODU Research Foundation Tidewater Wholsale Grocery CMA CGM America McDonald’s Colonnas Shipyard Personal Touch Home Care Inc. Virginia Wesleyan College

NORFOLK 2012 ANNUAL REPORT

Economic Profile RESIDENT LABOR FORCE,

29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50.

Farm Fresh Bank of America American Funds Service Co. Electronic Data Systems Corp. The Virginian Pilot Marine Hydraulics International ITT Educational Services Inc. United Services Automobile Association Aramark Campus LLC Food Lion Lake Taylor Hospital United Express Airtran Jet Con 7-Eleven Clark Nexsen Owen Barbieri Norfolk Redevelopment & Housing Authority Zim Raytheon Technical Services CP&O LLC Dominion Virginia Power Community Personal Care Inc. Event Staffing Inc. Transit Management Co.

Source: Virginia Employment Commission,

2010 American Community Survey 1-Year Estimates, U.S. Census Bureau Norfolk EMPLOYED PERSONS 16 AND UP 118,743 Management, business, science and arts 31,417 Sales and office 25,445 Service 21,780 Production, transportation and material moving 11,870 Natural resources, construction and maintenance 14,756 Armed Forces 13,475

100.0% 26.5% 21.4% 18.3% 10.0% 12.4% 11.3%

Region 829,395 283,750 195,492 129,678 77,186 78,062 65,227

100.0% 34.2% 23.6% 15.6% 9.3% 9.4% 7.9%

Note: The region is the Norfolk-Virginia Beach-Newport News, VA-NC Metropolitan Statistical Area (MSA).

FULL AND PART-TIME EMPLOYEES BY INDUSTRY BY PLACE OF WORK, 2008 and 2009

TOTAL JOBS Construction Manufacturing Wholesale Trade Retail Trade Transportation/Warehousing Information Finance and Insurance Real Estate Professional/Tech.nical Services Management of Companies Administrative and Waste Services Educational Services Health Care and Social Assistance Arts, Entertainment and Recreation Accommodation/Food Service Other Services

Norfolk 2008 223,056 7,514 7,064 (D) 14,142 10,165 3,644 7,900 5,572 11,254 2,646 9,027 4,626 21,974 2,475 10,957 6,729

Norfolk 2009 212,974 6,592 6,928 (D) 13,036 9,119 3,092 7,548 5,550 11,377 2,388 8,036 4,746 21,493 2,412 10,740 6,593

Region Region 2008 2009 1,036,452 1,002,305 61,370 53,627 57,760 50,147 (D) (D) 107,324 100,254 (D) (D) 16,310 14,661 34,425 34,482 (D) 44013 65,316 65,473 9,667 9,191 59,690 55,049 17,487 17,737 87,172 87,763 (D) (D) (D) (D) 48,783 44,846

Note: The region is the Norfolk-Virginia Beach-Newport News, VA-NC Metropolitan Statistical Area (MSA). (D) - not shown to avoid disclosure of confidential information, but the estimates for this item are included in the totals U.S. Department of Commerce, Bureau of Economic Analysis

NORFOLK 2012 ANNUAL REPORT

City of Norfolk, Virginia

Business Growth A Sampling of Business Activity in 2008-2013 Company

Type

E/N

C/D/A

Investment (mil)

201 Twenty-One Bay Village Condominiums Belmont at Freemason Colonnas Shipyard CMA CGM Commander Corporate Center Court Complex Crowne Plaza Hotel (formerly Radisson) Eastern Virginia Medical School Fort Norfolk Plaza Hampton Roads Barge Company Harris Teeter Expansion Hurrah Players Kroc Center Lambert’s Point Light Rail MacArthur Memorial Marine Hydraulics Midtown Office Tower Norfolk State University (NSU) Norfolk International Terminals Norfolk International Terminals Norfolk International Terminals Norfolk International Terminals Norfolk International Terminals Norfolk International Terminals Old Dominion University (ODU) Old Dominion University (ODU) Old Point National Bank P & P, LLC Residence Inn by Marriott Riverside Terrace / Westport Sentara Offices Sentara Garage Sheraton Hotel SouthWind Apartment Community Tidewater Community College The Franklin The Market at Ghent The River House Apartments Union Mission Building Virginia Arts Festival Headquarters Virginia Zoo Wells Fargo Center

Mixed-use residential apartments & retail Senior only residences Apartments Expansion Americas Headquarters, shipping line Second office building for spec New combined Hall of Justice New ownership making renovations New education and research building Mixed-use medical office, retail New transportation/shipping company Demolition of existing and construction of new grocery store theatre, dance, voice and acting troupe Community center Recreation facility Starter Line Expansion Expansion New office tower Library and student center Central Rail Yard, phase I & II Renovation of the South Berth North Gate relocation rail yard sound wall Transfer Zone safety improvements straddle carrier parking lot Innovation Research Park II Student fitness center New branch office in Ghent Office/flex (4th building on site) Extended-stay hotel Phasing townhouses and condominiums 48,000 sq ft office Poplar Halls Colley Avenue Renovation 120 apartments Student center Mixed-use upscale condominiums and professional offices Expansion to existing Farm Fresh store 197 apartments Renovation into 60+ apartments Offices and rehearsal studios Trail of the Tiger Mixed-use Class A office, retail and residential

N N N E E N N E N N N E N N N N E E N N N E E N N N N N N E N N N N E N N N E N N N E N

40 15 45 14 11.5 12 108 4 80 70 2.3 14 1.4 84 7.6 338.3 5 82 33 75 26.4 275 .85 1.5 2.5 3.5 22.5 28 2.8 1 35 80 9 15 32 15 17.6 15 3 36 22 7.5 15

Hotel and conference center

C D C C C C A C C C C D C A D D A C A C C C C C C D C C D D C D D D C C D C C C A C D C D A

Westin Hotel & Conference Center

170 150

Source: Economic Development Department, City of Norfolk, Virginia. E/N – Expansion or New; C/D/A – Completed, Under Development, or Announced

NORFOLK 2012 ANNUAL REPORT

Economic Profile â&#x2013; Top 15 Districts by Total Revenue FYâ&#x20AC;&#x2122;11 Greater Downtown Financial $17,103,158 21st Street $9,198,287 Military Highway Corridor Broad Creek $8,313,389 Greater Downtown MacArthur Center $7,760,479 Military Highway Corridor Military Circle $6,977,496 Janaf $6,897,857 Norfolk Industrial Park $6,885,170 Military Highway Corridor Lake Wright $6,226,821 Interstate Corporate Center $6,053,317 Little Creek Road Corridor Southern Shopping Center $5,746,088 ODU Village $4,328,532 Little Creek Road Corridor Wards Corner $4,133,562 Greater Downtown Upper Granby $4,081,120 Greater Downtown Granby $4,008,520 Military Highway Corridor Norfolk Commerce Park $3,978,696

Employment by Sector

NORFOLK 2012 ANNUAL REPORT

Agriculture, Forestry, Fishing and Hunting Manufacturing Retail Trade Information Real Estate and Rental and Leasing Management Companies and Enterprises Educational Services Arts, Entertainment and Recreation Other Services, Excluding Public Administration State Government Construction Wholesale Trade Transportation and Warehousing Finance and Insurance Professional and Technical Services Administration and Waste Services Health Care and Social Assistance Accommodation and Food Services Federal Government Local Government

■ New Businesses in Norfolk

■ New Businesses in Enterprise Zone

Between January and October 2011, 1,087 businesses opened. The largest types of businesses were contractors (245), services (306) and wholesale/retail (209). New businesses include Norfolk Chop House, XVD longboards, Stella Coffeehouse and We are Titans. New franchises in Norfolk include Einstein Bros. Bagels, Buffalo Wild Wings, Firehouse Subs, Chipotle Grill, Boardwalk Burgers and Northern Tools. Postnet, a printing and mailing service retailer, opened in Ocean View. Postnet was one of the first franchise systems to join the Veterans Job Bank.

■ Opportunity Sites 188 new businesses located in the Enterprise Zone. In 2010, 14 companies received incentives totaling over $1.43 million. Five Most Populous Cities in Virginia City Virginia Beach Norfolk Chesapeake Richmond Newport News

2000 Census Population

2010 Census Population 437,994 242,803 222,209 204,219 180,719

425,257 234,403 199,184 197,790 180,697

Source: U.S. Census Bureau and the Weldon Cooper Center for Public Service, University of Virginia

NORFOLK 2012 ANNUAL REPORT

â&#x2013; Commercial Taxes and Fees Commercial Utilities Taxes & Fees FY 2012 Approved Gas .......................................................................................................... $3.225 + $0.167821/CCF 0-70 CCF + $0.161552/CCF 71-430 CCF + $0.15363/CCF on balance/month (Max of $500/month) Electricity (Manufacturing) ..................................................... $1.38 + $0.004965/kWh 0-3,625,100 kWhs + $0.004014/kWh on balance/month (Max of $53,000/month) Electricity (Non-Manufacturing) ......................................... $2.87 + $0.017933/kWh 0-537 kWh + $0.006330/kWh on balance/month Telephone (Cellular & Landline) ........................................ Repealed and replaced by the State Communications Sales & Use Tax 5% of sales price of services Water ........................................................................................................ 25% on first $75 plus 15% of bill in excess of $75 Refuse Disposal Commercial Refuse Collection ( 1X per week) Commercial Refuse Collection ( 5Xs per week) Commercial Storm Water Fee

$59.00/unit/month $146.24/unit/month $6.00/month per 2,000 sq. ft.

Water and Waste Water Fees Water Waste Water

$4.01/100 cubic feet $3.25/100 cubic feet

Property Taxes Real Estate (General Tax) Real Estate (Downtown Improvement District) Personal Property Airplane Motor Vehicle Recreational Vehicle Business Furniture, Fixtures, and Equipment Watercraft - Business Watercraft - Recreational Machinery & Tools Other Local Taxes Amusement and Admissions Cigarette Emergency 911 (Landline)

$1.11/$100 Assessed Value $1.27/$100 Assessed Value $2.40/ $100 Assessed Value $4.33/$100 Assessed Value $1.50/$100 Assessed Value $4.33/$100 Assessed Value $1.50/$100 Assessed Value $0.50/$100 Assessed Value $4.25/$100 Assessed Value

Hotel/Motel Lodging Bed Tax Restaurant Meal

10% 75 cents/pack of 20 cigarettes Repealed and replaced by a statewide E-911 tax rate of $0.75/line/month 8% $2 per room night 6.50%

Motor Vehicle License Small Trailers (<2,000 pounds) Motorcycles Cars & Small Trucks Semi Trailers Mid-Size Trucks/Vans (>4,000 pounds) Large Vehicles (19,000 pounds and over) Passenger (>10)

$6.50 $15.00 $26.00 $20.00 $31.00 $1.60-$1.80/1,000 pounds of gross weight $0.30/100 pounds of weight (not less than $26)

NORFOLK 2012 ANNUAL REPORT