INSIDE Loudoun Key To Virginia Wine Industry Push ...... Page 3 SEP TEMB ER 2 0 1 1 VOLUME 8 NO. 10
Boosting Budding Businesses
Incubator Welcomes First Tenants By Kara Clark, Staff Writer One of the most anticipated projects for the Leesburg business community has made its debut. The Mason Enterprise Center Leesburg, the county’s first business incubator, welcomed its first tenants Tuesday, Sept. 6. The 10,000-square-foot building at 202 Church St. will house start-up businesses with high-growth potential. In addition to the executive suite-style layout of the building, where each company will have its own office, or offices, with a window, incubator staff members will be on hand to guide these businesses from the start-up phase to a successful enterprise. Keith Segerson, managing director of the Mason Enterprise Center, has been busy interviewing prospective tenants for the incubator in recent weeks, as well as
nearing the end of the process for hiring a director for the Leesburg site. Segerson said he had in his hand 14 draft leases, representing 14 potential companies taking up space in the incubator in separate offices. He called the response to the Leesburg incubator “unprecedented” although, for him, not unexpected. “I expected that in all sincerity because of the community involvement, press support, word on the street, just the buzz and a lot of things we have not had and not benefited from in other [incubator] locations which are much more isolated, independent, not as fully partnered as this one is,” he said, pointing to the involvement of the Town of Leesburg, Loudoun County, Loudoun Chamber of Commerce and the town and county Economic Development Commissions. “It shows how important See Incubator, Page 8
The home of the Mason Enterprise Center Leesburg on Church Street.
Leesburg, County, Airport Receive Accolades By Kara Clark, Staff Writer August was a month of big wins for Loudoun County, with the county seat, Loudoun’s vast job growth and Leesburg Airport all receiving state and national recognition. Both Loudoun and the greater state of Virginia received kudos for job growth and business attraction efforts over the last decade. Among counties in the United States, Loudoun has been ranked number two by CNN Money for job growth over the last
10 years, while CNBC ranked Virginia as America’s Top State for Business. With the United States as a whole showing little to no job growth during the last decade, Loudoun’s exceptional growth equates to 46,000 net new jobs in the county. The industry sectors that have seen the most growth include computer systems design and related services with an increase of 4,500 new jobs, and Retail, educational services and construction accounting for almost 20,000 new jobs. The county is home to the highest concentration of high-tech firms in the nation, PRSRT STD U.S. Postage
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with CNN Money using the familiar moniker “Silicon Valley of the East” to describe Loudoun. As America’s Top State for Business, Virginia beat out the states of Texas and North Carolina in the CNBC ranking by showing dominance in areas such as infrastructure and transportation, economy, education, business friendliness and access to capital. The good news trickled down to the county seat. The Town of Leesburg ranked fourth in Money Magazine’s “Best Places to Live” list released in August. The list counts down the 100 best small towns in which to settle across the country. According to the magazine, Leesburg ranked high due to its “proximity to plenty of good jobs,” including in the government, defense contracting, consulting and technology industries. While Money notes commutes to and from the town “can be abysmal” many residents surveyed said the tradeoff is being able to live in a beauti-
ful, historic town, with many “antebellum, red brick buildings” now filled with restaurants, art galleries and shops. Business Retention Coordinator Debi Parry said the designation goes a long way toward recognizing the town’s reputation as a landing spot to grow a business. In 2008, Leesburg landed the 31st spot on FORTUNE Small Business Magazine’s “Best Places to Live and Launch” list. “We have a highly educated workforce and a growing number of families that demand the best from our county schools, our parks and our infrastructure. When CEOs are looking for a home for their business, quality of life and access to an educated workforce are at the top of the list and we have them both here in Leesburg,” Parry said. Of all the top 10 on the list, Leesburg ranked the highest when it came to median family income, at $128,595, and job growth from 2000-2010, at 47.16 percent. The surSee Rankings, Page 5
PAGE 2 | Loudoun Business
SEPTEMBER 2011
Loudoun Business | PAGE 3
SEPTEMBER 2011
Loudoun Plays Key Role In State's Plans For Wine Industry Growth By Margaret Morton, Staff Writer Loudoun’s wineries are a thriving component of the Virginia wine industry—and that was apparent during an Aug. 31 Vine to Wine seminar hosted by John Marshall Bank at Sunset Hills Vineyard. An invited audience sampled wines and hors d’oeuvres before settling down to a talk by Virginia Secretary of Agriculture and Consumer Services Todd Haymore and a panel discussion by winery owners Jim Corcoran and Chris Pearmund. Haymore also is secretary of the Virginia Department of Forestry. Together the two industries contribute more than $79 billion to the Virginia economy and provide 10.3 percent of jobs in the commonwealth,
according to Virginia agriculture statistics. Virginia Governor Bob McDonnell recently announced sales of Virginia wines have reached an all-time high. Fiscal 2011 sales showed an increase of 11.4 percent over FY 2010. Virginia wineries sold 462,112 cases of wine in FY 2011, up from the previous year’s benchmark of 414,785 cases sold. And the financial return is healthy, according to the governor’s office, which reported total sales of Virginia wine during FY 2011 resulted in almost $1.8 million in wine liter tax collections, in comparison with $1.6 million in FY 2010. Those results back up the administration’s determination to make Virginia the wine capital of the East Coast in production and tourism, Haymore said, noting
Virginia is the third largest wine producer behind California and Washington. First Lady Maureen McDonnell also is behind the effort, having planted a number of vines behind the Governor’s Mansion in what is called the First Lady’s Initiative. Haymore said there will be an increased emphasis on expanding the commonwealth’s footprint in this country as well as internationally. McDonnell and Haymore contend the wine industry also boosts jobs in the commonwealth, a key focus for McDonnell’s “Jobs and Opportunities” agenda for his term. Virginia is now the nation’s fifth largest state in the number of wineries—with Loudoun reportedly having the largest number in Virginia—and the sixth larg-
est wine grape producer. Haymore cited Loudoun and Albermarle counties as the commonwealth’s top producers. The industry draws a record number of tourists per year through visits to wineries and vineyards, Haymore said, noting more than 1 million are said to visit Virginia wineries annually, generating approximately $57 million. And those same wineries and vineyards keep land in agricultural production. According to a recent economic impact study, the Virginia wine industry employs more than 3,000 people and contributes almost $350 million to the commonwealth’s economy per annum. Haymore noted in 2005 there were 120 wineries; today, that See Wine, Page 8
Sterling Women Spotlight: New Look Coming For Zurschmeide Purcellville Shopping Center ByKate Kara Clark, Staff Writer
White Star Investments held a formal groundbreaking ceremony Aug. 31 for the first phase of renovations and expansion at Purcellville’s oldest shopping center— Loudoun Valley Shopping Center. In addition to getting a new name— The Shoppes at Main & Maple—changes at the 40-year old center include a new BB&T Bank almost double the size of the current branch and that will have additional office space for rent; a Walgreens pharmacy on the site where Al's Pizza once stood; a Station Auto Wash similar to the one on
Catoctin Circle in Leesburg; and improved parking with landscaping. The former Safeway/IGA/ReStore section of the shopping center has been demolished leaving one row of retail stores facing into the Breezeway area. Renovations for that area will be in phase two of the project, which includes plans for restaurants. Taking part in the groundbreaking ceremony were Purcellville Mayor Bob Lazaro, Councilwoman Joan Lehr, Rueben Bajaj, president of White Star Investments, and Rick Connor, of Walgreens.
It was a long, strange trip to Bluemont for Kate Zurschmeide. The owner of Great Country Farms did not have the prototypical journey to heading up a large-scale farm/CSA operation and family outing destination. After receiving her degree in finance from West Virginia University, Zurschmeide set out on the corporate path, holding down a job at Verizon for many years. During her tenure there in the early 90s she and her husband Mark purchased Great Country Farms and had their sights set on something big. Kate Zurschmeide continued to work for Verizon until 1999, when she left to devote her full time to the farm. It was three guiding principles that helped Zurschmeide and her husband grow Great Country Farms into the success it is today. Embracing serendipity was key, she said in addressing Sterling Women’s September luncheon crowd. “Look for it everyday, seek it,” Zurschmeide said. “It’s those moments that come by only a few times that can be the catalyst, that can be the thing that takes you to the next level.” For the Zurschmeides one such serendipitous moment came when a member of the farm’s CSAs approached them about starting a courier service to drop off produce to customers. It immediately doubled the farm’s CSA capacity, which has helped Great Country Farms to grow into the success it is today. Another guiding principle was persis-
tence. The day the Zurschmeides signed the purchase contract for the farm property, which had been languishing on the market for six years, the Realtors immediately told them they would see them in a year when they were ready to subdivide, not believing their goal was to operate and sustain a farm. “The naysayers are out there,” Zurschmeide warned the crowd. “But you know your vision, you know your heart, you know where you want to go.” The third guiding principle was seeking wisdom. Leaning on the expertise and experience of others led Great Country Farms to consider entering into sponsorships and other partnerships, as it recently did with its first BBQ Bash. “There are incredible resources out there; we are all small business owners,” she said. “You’re in the right place. You’re surrounded by powerful, wise people.”
PAGE 4 | Loudoun Business
I have really enjoyed the opportunity to share my thoughts with you in this forum. It is my hope that you have come to understand why I became actively engaged in making Loudoun County the best place to live and work in America. In slight deviation from my previous articles, and in the shadow of the 10th anniversary of the terrorist attacks on 9/11, I would like to introduce you to an organization that began as an idea for a film, and has become an organization with the potential to impact communities globally with its mission to promote the unique preparedness needs of first responders as the frontline of disaster recovery. After graduating from Georgetown University, I started my business career on Wall Street in the second tower of the World Trade Center. I have been in Northern Virginia since 1992, but many of my family and friends remain in New York. My brother Nick was married shortly after September 11, 2001—only blocks away from Ground Zero. At the reception, I recall seeing groups of people huddled around the room, crying. These tears were not tears of joy; rather, they were tears of sorrow, mourning the friends and family lost a month prior. Jim Whitaker is an established
Hollywood film producer, and was Nick’s college roommate at Georgetown. When Jim was in New York for the wedding, he visited Ground Zero and realized that no one was capturing the progress happening at the site. Knowing that someday the endless sea of debris would be removed, with another unknown structure in its place, Jim had an idea. He wanted to document the hope, resilience, and strength that it takes to rebuild after tragedy. Jim approached another college roommate, Pat Ryan, whose father was CEO of Aon Corporation. In memory of the 176 employees Aon Corporation lost in the 9/11 attacks, the Aon Foundation became the lead sponsor of Jim’s idea, which by then was called Project Rebirth. Project Rebirth is an organization that I have been personally involved with since the beginning. Through the vision and direction of Jim Whitaker, 14 time-lapse cameras were stationed at various sites surrounding the World Trade Center devastation a few months after September 11, 2001. These cameras would take one picture every five minutes, capturing the rebuilding of Ground Zero in five-minute intervals. In the spring of 2002 my brother Nick and I were invited to preview Jim’s project. After seeing the early footage, we
A Business Perspective
About Project Rebirth
both volunteered to help in any way possible. I became the treasurer of Project Rebirth in April of 2002 and Nick became the vice president. Together, Nick and I have helped raise over 14 million dollars for the organization. After only a few months of filming, Whitaker realized that the country, specifically New York City, was going through a dramatic personal rebuilding and coping following the acts of terror on 9/11. He decided to create a human time lapse to capture the emotional and spiritual rebuilding that happens after t r a g e d y. Through the artful meld of the chronicle of five individuals coping with the aftermath of 9/11 and the powerful visual record of the rebuilding of Ground Zero, the film Rebirth was formed. To date, Rebirth has earned awards and wide praise for Whitaker’s focus on capturing the resilience of the human spirit while
By John Wood
SEPTEMBER 2011 faced with disaster. Rebirth will air on Showtime on September 11, 2011, which is a huge achievement for the entire team at Project Rebirth—many of whom have committed to this project for 10 years. Some may think that after the release of the film, which was 10 years in the making, the work at Project Rebirth would be complete. Not true. The work is just beginning. As the film began to unfold to Whitaker and his team, they came to realize that there was an opportunity to leverage the more than 800 hours of digital interview archive for the greatest social good. With a commitment from Project Rebirth’s inception of providing content to the National 9/11 Memorial and Museum, programming has been developed on the educational and therapeutic fronts, with an emphasis on helping people and communities to be better prepared for and respond to psychological trauma and grief caused by tragic events, such as Post Traumatic Stress Disorder (PTSD). With the vision to create educational and therapeutic tools, Project Rebirth has led to strategic partnerships with both Georgetown University and Columbia University. These institutions have worked with Project Rebirth to develop new technology and advanced coursework that draws on Project Rebirth’s digital interview archive as a media tool for students See Wood Page 6
BUSINESSES
Giving Back
South Riding’s Virginia Tire & Auto recently took time to honor the memory of a local fallen soldier and former employee. Aug. 23, the auto shop held a “Crossing of America” rally where employees presented a $1,000 check to the Spirit of Liberty Foundation. The Spirit of Liberty Foundation’s mission is to support U.S. Armed Forces and their families, with an emphasis on wounded warriors and families of fallen heroes. The Foundation’s Crossing of America Jeep tour began May 27 aboard the deck of the USS Midway in San Diego Harbor and was set to conclude Thursday, Sept. 8, on the deck of the USS Intrepid in New York Harbor in commemoration of the 10th anniversary of 9/11. The Crossing of America made a special stop at the South Riding auto shop for the rally. Also during the event, Sgt. Sean Callahan, a former Virginia Tire & Auto employee who was killed while serving in the Marines in southern Afghanistan, was honored. Myron Boncarosky, Virginia Tire & Auto owner, presented the Spirit of Liberty Foundation with a $1,000 donation check in honor of Sgt. Callahan, whose mother, Jan Callahan, attended the commemorative ceremony, along with local dignitaries, including former Del. Dick Black and Chairman Scott K. York (R-At Large).
Loudoun Business | PAGE 5
SEPTEMBER 2011
Continued From Page 1 vey also compared statistics on quality of life, education, housing, leisure and culture, and weather. Rounding out the top four on the “Best Places to Live” list were Louisville, CO; Milton, MA; and Solon, OH. Leesburg joined several other cities and towns from Virginia on the list: Herndon (34), Montclair (35), Oakton (36) and Manassas Park (56). The town’s airport also received some accolades of its own. Leesburg Executive Airport ranked third among the state’s general aviation airports in terms of the amount of economic activity it generates. The townbased airport generated more than $78 million in economic activity in 2010, according to a report released by the Virginia Department of Aviation. The Virginia Airport System Economic Impact Study was released by the state aviation department in an effort to shine a light on the economic benefits offered by the state’s nine commercial service and 57 general aviation airports. In total, Virginia’s airports are estimated to contribute more than $28 billion to the Virginia economy, representing about 4.4 percent of the state’s total economic output. Every $1 spent at a Virginia airport, the report states, contributes an additional $3.48 in economic activity for the state. The economic contributions of the state’s 66 airports were measured in terms of jobs, payroll and economic activity, with the latter classified into three impact categories: direct, indirect and induced. For every take-off and landing at a Virginia airport, the department notes, $722 of economic activity is produced. Only Manassas Regional and Bridgewater Air Park outpaced Leesburg’s airport in terms of economic activity, with the former bringing in more than $234 million last year and the latter $85 million. Leesburg Airport produced the second-most amount of jobs, including in the local region and the greater state, at 634, with Manassas Airport again the top job-creator with 1,056 in 2010. According to Cliff Burnette, director of the Airport Services Division at the state aviation department, the jobs number generated for Leesburg and other airports takes into account “the multiplier effect.” “It’s the bits and pieces of people…. everything from the UPS driver to the person who delivers fuel; it multiples into the community,” he explained. More than 63,000 individuals used Leesburg Airport’s services last year and, according to the report, 226 aircraft are based at the airport. Airport Commission Chairman Dennis Boykin said the report is validation of what he and other commissioners have been saying for years: airports are not about airplanes, they’re about commerce. “It’s really about providing jobs and
supporting interstate commerce,” he said. “There are businesses that locate here in town because of the airport and there are businesses coming here because of the airport.” Boykin also remarked that at the recent Virginia Department of Aviation conference, where the report was unveiled, attendees were reminiscing about how at one time there were questions as to whether the airport could survive as an entity. “Now we’re seeing today that it’s number three in terms of economic activity. It’s a job producer,” he said. Shye Gilad, CEO of ProJet Aviation, which opened its Leesburg Airport-based facility last year, said the results of the study speak directly to their experience in the town. “Our own internal performance exceeded our projections in the first year,” he said. “What [the study] does is it reaffirms our investmen; it lets us know that we’re on the right track and it further validates our opinion on the long-term viability of the development of Leesburg into a major private aviation hub.”
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SEPTEMBER 2011
Leesburg EDC Plans Financial Roundtable In an effort to aid the local business community, the Leesburg Economic Development Commission is hosting the Leesburg Financial Roundtable: a Summit on Economic Growth, Thursday, Sept. 15 ,from 8 to 11:30 a.m. The roundtable will take place at 1602 Village Market Boulevard, Suite 400 in Village at Leesburg. The Leesburg Financial Roundtable will bring together leaders in business, banking, government and higher education to develop actionable concepts that increase the flow of capital to local compa-
nies for economic growth and job creation. The vision of the roundtable, EDC Vice Chairman Jim Sisley said, is to “develop actionable concepts to increase the flow of capital to local companies for economic growth and job creation” with the goal in mind of being a catalyst for growth for both the town and the greater county. The event includes keynote speaker Andy Bauer, economist at the Federal Reserve Bank of Richmond, and a panel discussion with the attendees. Leesburg Mayor Kristen C. Umstattd, Loudoun County Board
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of Supervisors Chairman Scott K. York and Leesburg District Supervisor Kelly Burk will provide insight regarding the state of the local economy. Panelists include Kitty Kearns of Middleburg Bank; Harry Hager of Sandy Spring Bank; David Caruso of Dominion Advisory Group; Greg Ellwood of the Loudoun Chamber of Commerce; Ruth Sandoval, a former Clinton advisor and board member of the Virginia Economic Development Partnership; Leesburg EDC Chairman Scott Gustavson; Shaun Kelly of the Loudoun County EDC; and a representative from the Loudoun Industrial Development Authority. “The general direction of the economy and opportunities for employment are topof-mind issues for the citizens of Leesburg. This event seeks to define what can be done at a local level, now and in the near future, to help businesses prosper and cre-
ate net new jobs,” Sisley stated. “We hope the work done in these few hours will have a measurable positive impact on the quality of life in our community.” The morning’s events conclude with a Q&A with the audience and a one-hour deal-making session, which Sisley said is intended to bring together businesses and capital resource providers to begin implementing equity solutions. To that end, the EDC hopes for a lot of participation in the event. “The more businesses and residents that are there, the more that will understand the dynamics of the situation and do something,” Sisley said. The event is being hosted by Village at Leesburg and Sperry Van Ness Commercial Real Estate. A continental buffet breakfast will be served. For more information, visit www.leesburgva.gov.
Wood
educate our first-response teams. Firstresponse programs are being developed for both the New York Police Department and the Arlington County Fire Department. Brian Rafferty, the Chairman, has led the educational component of Project Rebirth. He has used the film Rebirth as a call to action and a fundraising tool to help meet the urgent need to better deal with psychological trauma and grief associated with disasters. Community disaster and traumatic loss are fundamental part of the human experience. Although the participants in the film Rebirth are rooted to the manmade disaster in New York City, the healing process they go through is innate to any grief, regardless of geographic location. Many people suffer from PTSD—members of the military and their families, along with survivors of natural and manmade disasters. The Project Rebirth archive will make a lasting difference by providing professionals and first responders with the tools they need to better understand and treat PTSD. Rebirth will air on Showtime on Sunday, September 11, at 9 p.m. Eastern Standard time. It will continue to air on Showtime at various times throughout the month of September. For more information about Project Rebirth, including viewing opportunities and how to purchase the film on DVD, please visit www. ProjectRebirth.org.
Continued From Page 5 studying human development, psychology, social work and education. This type of hands-on educational tool transcends the traditional case-study analysis. This coursework also will transcend the typical classroom setting, as it will be used to
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[John B. Wood is the CEO of Telos Corporation in Ashburn, founder of the CEO Cabinet and current chairman of the county Economic Development Commission. His monthly column will appear in Loudoun Business. Follow John on Twitter at twitter. com/john_b_wood.]
SEPTEMBER 2011
Loudoun Business | PAGE 7
PAGE 8 | Loudoun Business
Wine
Continued From Page 3 figure is up to 200 farm wineries. A new economic study should be completed next year, he said. Haymore also cited the expansion of the commonwealth’s Promotion Fund, which has more than doubled to $1.325 million per year. “We worked to release funds for research and marketing,” Haymore said. The augmented funds enabled a new wine marketing office employee position working to expand Virginia wine presence in retail stores, restaurants and wine shops; underwriting of "Vintage: The Winemaker’s Year," a soon-to-be aired documentary on PBS; and the first dedicated international marketing efforts. Two trade missions have been made to the United Kingdom and one to Hong Kong, while other partnerships have grown also, including a visit by the European “Circle of Wine Writers” to this country in 2010, and a campaign to highlight Virginia food and beverage products. “We want to put financial resources to promote Virginia’s wine industry,” Haymore said. Other successes include the First Lady’s FLITE—the First Lady Initiative Team Effort—that helps focus attention on Virginia wineries and further encourages retail and restaurant sales as well
as tourism, Haymore said. In addition to general rising wine sales over FY 2010 and FY 2011, Virginia wine distribution company sales are up sharply after an online purchase system was installed. The General Assembly also is supportive of the wine industry and the Virginia Wine Board now can use tax money to promote, research and educate about the wine industry. In this year’s General Assembly session, further measures were enacted that have had a positive impact, Haymore said. A winery/vineyard tax credit now creates a 25 percent reimbursable tax credit for those wishing to establish or expand a winery or vineyard under a program that is capped at $250,000 for tax year 2011. A budget amendment was passed whereby Virginia wine liter tax proceeds will be dedicated to the Virginia Wine Promotion Fund, with the yearly balance rising or falling on wine sales. Another piece of legislation now allows restaurant customers to bring their own wines with them, subject to the restaurant’s corkage fee. On the thorny issue of double taxation, the General Assembly enacted legislation that has removed the tax on Virginia wines shipped to out-ofstate customers. Haymore said plans for further promotions of Virginia wines this year will include continuing to work with the First Lady on winery tours and further vine
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SEPTEMBER 2011
planting at the Governor’s Mansion; trade missions to Asia, Canada, the U.K., Europe and India; continuing domestic and global public-private partnerships; trade shows and conferences; and hosting an inaugural Virginia wine summit. Urging planting of more grapes, Haymore said in January he hoped to show a good investment return to the General Assembly through the burgeoning wine industry and consequently move the $250,000 tax credit cap much higher—to $1.3 million. “We’ve had a lot of success in the last 18 months,” he said. “Virginia sales are at an all-time high.” Following Haymore’s talk, it was the turn of Corcoran and Pearmund to field questions from the audience, both of whom have extensive experience at the local and state level of the industry. Corcoran not only manages Corcoran Vineyards, which he founded in 2002, but is tasting officer for Corcoran Brewery, opened this year. The two form the first winery/brewery combination in the commonwealth. Corcoran is a former chairman of the Virginia Wine Council and works on behalf of the industry on legislative action in Richmond. He serves on the board of the Virginia Wine Distribution Company and is active with the Virginia Department of Agricultural Consumer Services and the Department of Alcoholic Beverage Control. Locally, Corcoran serves on the board of the Loudoun County Chamber of Commerce and works with county elected officials to promote Loudoun as a top winery location. Executive Winemaker Pearmund has more than 25 years of experience in the wine industry—as winemaker, vineyard manager, winery operator and certified wine judge. He is managing partner of Vint Hill Craft Winery, Pearmund Cellars, the Winery at la Grange and Meriwether Vineyard. He also has helped open more
than a dozen wineries in Virginia. In 2010, Pearmund repeated as the winner of the Virginia Governor’s Cup for making the best wine. A former president of the Virginia Vineyards Association and a board member of the Virginia Wineries Association, Pearmund is the current chairman of the Fauquier Chamber of Commerce. During the panel discussion, Corcoran said one of Loudoun’s advantages is that it is “by far the friendliest place to open a winery,” citing easier zoning requirements and county staff “that work with us,” in contrast to Fauquier County, which he dubbed “the worst.” His biggest concern, he said, was that the Virginia wine industry has had “huge growth” in a short time—and that places a corresponding burden on land. With 235 wineries on 2,700 acres of land, “We need land—there’s not enough,” he said, adding he hoped to see more tax credits for potential winery and vineyard owners. Pearmund also seeks to greatly increase production and consumption. “There’s a lot of wine potential, and we need better and bigger growers,” he said, noting a need for larger parcels under production. Winery owners have knowledge. “We just need the product,” and to achieve that, the industry needs more growers, Pearmund said. Although only 5 percent of wine production nationally comes from Virginia, well behind California and Washington, that percentage is growing and gaining more recognition. Like Corcoran, Pearmund sees “a lot of opportunity for increased growth,” citing the importance of tax credits for wineries. Larger scale production, more mechanization and efficiency and reduced cooperage costs were among improvements the three men listed as essential if Virginia is to build on success so far and truly compete nationally and internationally.
Incubator
in the space. The Church Street building includes three floors and a mezzanine area, where economic development staff will be located. There is room for about 30 businesses in the incubator, although others could set up “virtually” with the incubator’s server for cloud computing. Each floor also contains its own kitchen and bathroom space and the third floor contains a large, handsome conference room that can be used for business meetings or other functions. Other floors contain room for lounge space. A formal ribbon-cutting/grand opening ceremony is expected to be scheduled in the near future.
Continued From Page 1 this new facility and all the services are to the business community in Leesburg and Loudoun County.” Of those who have signed leases, Segerson estimated about 60 to 70 percent are technology companies. “We look for companies that have high potential for growth and certainly technology companies historically have demonstrated that ability to look for products and services,” he said. “From the call volume it’s been a majority of companies in software, product development in the technology field.” In addition to incubator tenants, both the Loudoun Small Business Development Center and the town’s Economic Development Department will set up shop
In next month’s issue, Loudoun Business will profile the companies setting up shop in the county’s first incubator, as well as its new director.
Loudoun Business | PAGE 9
SEPTEMBER 2011
Rising Median Home Prices Affect Affordability By Rosemary deButts, Contributing Writer There were two really great pieces of information for the housing market in Loudoun County during the second quarter of 2011: interest rates were at a remarkably low level, 4.95 percent, and the median sales price increased 11 percent from the first quarter. Over the past 30 quarters since the first quarter of 2004, the mortgage rate was below 5 percent in only four quarters—as it turns out, the past four quarters. This is one of the two largest factors affecting the share of Loudoun households that can afford the median priced home. The second major factor is the median sales price itself; the lower it is, the more households can afford to live here. However, after the freefall in prices in recent years, it is refreshing to see that the median jumped significantly in the second quarter. In fact, the median sales price reached its highest level since the fourth quarter of 2007. That is good for sellers but does not bode well for buyers searching for affordability. There are other factors that figure into how affordable an area is—specifically, household income, homeowner’s insurance, homeowner’s association fees and property taxes. Assuming that monthly mortgage bills in addition to these other costs amount to 29 percent (or less) of homeowner’s monthly income, 59 percent of Loudoun County households could afford the median priced home in the second quarter of 2011. For the last eight consecutive quarters, the housing affordability index has exceeded 59 percent. Compare that to the second quarter of 2006, at the height of an overheated housing market, when only 15 percent of Loudoun households could afford the median priced home. Household income has steadily risen over the last five years. Loudoun regularly ranks among the top three coun-
ties in the country for median household income. While mortgage rates and median home prices were declining, the median household income rose every year since 2006 (from $98,483 to $114,204 in 2010). Homeowner’s insurance rates have declined from an average of $55 in 2006 to $49 in 2011. These factors push affordability up. Downward pressure came from homeowner association dues that climbed, on average, from $69 per month in Loudoun
to $83 (+20 percent). Real property tax rates also increased, from 89 cents per $100 of assessed value in 2006 to $1.285 in 2011. Neither of these factors were enough to negatively affect affordability though. This two-year trend suggests that the Loudoun market has stabilized. And, the Federal Reserve has as much as guaranteed that mortgage rates will remain low through 2012. However, if home prices continue to advance, as it looks like they
will, affordability will be sacrificed. [Rosemary deButts is a Realtor associated with Atoka Properties in Purcellville. She is certified by the National Association of Realtors as a Short Sales and Foreclosure Resource and is a Member, Institute of Residential Marketing (MIRM) from the National Association of Home Builders. Visit her website, www.housinganalyst.net, for more facts and figures.]
Partnerships “ Merritt Properties took time to understand our business and responded with a host of resources and services that made us feel extremely comfortable during a time where our business was making dramatic changes. “ Mike Keough President, E-Structors
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PAGE 10 | Loudoun Business
In Brief
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of Arts in Social Work from Utica College of Syracuse University.
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Michael Snow is the new director of farm operations for Willowsford Farm. Snow brings more than 10 years of experience in farming using low-impact practices to grow Ashburn resident Dennis J. Manning islators and other constituent groups on a wide variety of fresh fruits and vegetables. has been appointed to the Virginia Board issues related to people with disabilities in Willowsford is a new 4,000 acre community Kitchens for People with Disabilities by Gov. Bob Virginia. The board’s purpose is to engage that includes 2,000 acres of conservancyMaster Suites McDonnell. Manning has been the president in advocacy, capacity building and systems managed natural open space. A portion Bathrooms and CEO of Community Residences since change activities that enable individuals of the open space will include agricultural 2006. Whole Incorporated House in 1975, Community with developmental disabilities to exercise production by Willowsford Farm. Snow is Remodels Residences self-determination, be independent, be pro- currently working on refining the business Inc. is 1st a nonductive and be integrated and included plan for the farm’s initial year of operations and 2nd Additions profitFloororgain all facets of community life. Prior to in 2012, which will detail planting, growing nization Family/ that his employment at Community Residences, and harvest seasons. Prior to joining the Our Process Makes it Perfect. p r o vGreat i d e Rooms s Manning held clinical and administrative Willowsford team, Snow was the manager th of the of the Ecosystem Farm and farmer training communitypositions with Catholic Charities Sunrooms based caring Roman Catholic Diocese of Syracuse, the program at The Accokeek Foundation. He Design-Build Remodeling in Northern Virginia Since 1983 “Fantastic experience services that Oneida County Department of Mental Health graduated from Middlebury College with www.FosterRemodeling.com 703.550.1371 from start to end. WHG0908p055VA.qxd 9/18/08 7211-H TELEGRAPH SQUARE DR.and LORTON, VA 22079 enable indiand the U.S. Army Air Force Reserve. a degree in geography with independent It couldn’t have been5:11 PM Page 55 more painless! viduals with Manning has served on the board of numer- work in environmental studies. “We are Our lead carpenter a wide range ous nonprofit agencies and community and looking forward and sales person the utmost in of were disabiliprofessional associations, and was honored to having great ties professionalism toresponsiveness. live as and with outstanding leadership awards from produce from We hope to use independentUnited Way and Rotary International. He is Willowsford Farm Manning again.” Kitchens ly and Foster with as a decorated veteran having served during under Mike’s Kevin M. – McLean Suites high aMaster quality of life as possible. The state the Vietnam conflict, Operations Desert direction,” Brian Bathrooms Make all your product board serves as Virginia’s Developmental Storm/Desert Shield in 1991 and Operation Cullen, regional selections in one visit Whole House Disabilities Planning Council, addressing Enduring Freedom in 2002. Manning holds a president for RPL, Remodels to our comprehensive the needs of Selection people with developmental and master's degree in human resource manage- the developer of Idea 1stand and 2nd Floor Center. Additions intellectual disabilities. The board advises ment from the State University of New York Willowsford, statProcess it Perfect. Family/ the Secretary Our the governor, of Health and Makes at Binghamton; a master's of social work ed. “Locally proGreat Rooms HumanSunrooms Resources, federal We’re and state legfrom Syracuse University Celebrating Our th year! and a Bachelor duced food has gained tremenDesign-Build Remodeling in Northern Virginia Since 1983 “Fantastic experience www.FosterRemodeling.com 703.550.1371 from start to end. dous appeal in Have Recent 7211-H TELEGRAPH SQUARE DR. LORTON, VA 22079 It couldn’t have been Snow recent years and, more painless! Process Makes it Perfect. Showers Exposed Our lead carpenter given Mike’s significant expertise and dediand sales person were the utmost inth cation, we believeorWillowsford Farm has the Your Drainage We solve your wet basement, foundation yard professionalism and responsiveness. potential to become a tremendous asset for Remodeling in Northern Virginia Since 1983 We hope to use problems with the least expensive option first. Our Problems? w.FosterRemodeling.com 703.550.1371 Foster again.” Willowsford residents and the surrounding
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Harry Simmerman has joined the Loudoun Credit Union as its new CEO. Simmerman comes to LCU with more than 25 years of experience in the financial services industry. Prior to joining the credit union, he served on the senior management staff of VACORP Federal Credit Union in Lynchburg. “I am very excited about being on the team at LCU,” Simmerman stated. “Credit unions are unique in that they are a member-owned, not-for-profit, volunteer driven cooperative. Next year we will celebrate 35 years of providing the broad range of financial products and services needed by our members. My goal at LCU is to be certain that we continue to remain financially strong, competitive in the marketplace and always focused on providing exceptional member service.” Sterling-based designer Michael Iannarelli recently took on a special project—detailing Air Force One. Iannarelli, of Extreme Details, was assigned to work exclusively on the exterior paint and some of the aluminum “brightwork” on Air Force One’s belly, fuselage, wings and engine shrouds. Iannarelli called the process “hardcore” because of its exposure to Seattle’s brutal weather elements—this Air Force One was used during the Eisenhower, Kennedy, Johnson and Nixon administrations and currently sits on the tarmac of Seattle’s Museum of Flight—which made it difficult to clean, not to mention it hadn’t been detailed in three years. The nineday detailing project also involved restoring the shine to a rare WWII B29 Bomber known as T-Square 54, one of the actual planes that flew 37 bombing missions with
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Loudoun Business | PAGE 11
SEPTEMBER 2011 the 875th Bomb Squadron, 498th Bomb Group in WWII. Although not a part of the original project, Iannarelli also waxed and polished a Fiat Fight and a F14 Tomcat “just for fun.� Iannarelli has specialized in highend, full-service automotive detailing for 25 years. Extreme Details is a member of the International Detailing Association. NASA’s Goddard Space Flight Center has selected Dulles-based Orbital Sciences Corporation to design, build and test the Ice, Cloud and Land Elevation Satellite-2 (ICESat-2) Earth science satellite. Scheduled for launch in 2016, ICESat-2 is the nextgeneration successor to the original ICESat satellite, which operated from 2003 to 2010. The contract award is valued at $135 million, including the spacecraft and associ-
ated options. Orbital will base the ICESat-2 satellite on its LEOStar-3 platform, the same technology that is being used for NASA’s Landsat Data Continuity Mission spacecraft, which is currently being assembled and tested at the company’s Gilbert, AZ, satellite manufacturing facility. ICESat-2 will also be built and tested at the Gilbert location. Orbital is also in production on three science satellites for NASA at its Dulles campus, including the Nuclear Spectroscopic Telescope Array (NuSTAR), Orbiting Carbon Observatory (OCO) and Gravity and Extreme Magnetism Small Explorer (GEMS) programs. “Our selection by Goddard Space Flight Center to design, build and test the ICESat-2 spacecraft adds to our extensive and growing history of producing highquality and reliable satellites for NASA’s
â– Business Calendar Sept. 14
Sept. 21
Board of Supervisors Candidates Forum
Middleburg Women
Loudoun Chamber of Commerce 8-10 a.m., The National Conference Center, 18980 Upper Belmont Place, Lansdowne The candidates for the Loudoun County Board of Supervisors will face off in the 2011 election’s premier candidates forum, where a panel of local business leaders will pose questions based on the Chamber’s 2011 Public Policy Agenda. For registration and pricing information, visit www.loudounchamber.org.
Young Professionals Mixer
Loudoun Chamber of Commerce 5:30 to 7 p.m., Dulles Golf Center & Sports Park, 21593 Jesse Court, Dulles Join the Young Professionals for their monthly mixer for an evening of networking around tasty treats and frosty beverages. Pre-registration fee is $15 or $20 at the door. To register, visit www.loudounchamber.org.
Sept. 20 Grow Your Business
Loudoun Chamber of Commerce 11:30 a.m. to 1 p.m., Chamber offices, 19301 Winmeade Drive #210, Lansdowne “Engagement Marketing – The Quick & Easy Way to Business Success� will be the monthly topic in a series that gets attendees up close and personal with experts in different business fields. Each luncheon in the Grow Your Business series features a prepared presentation followed by an extensive Q&A session. Lunch is provided. Cost for the event is $10 for Chamber members and $15 for non-members and walk-ins. To register, visit www.loudounchamber.org.
10:30 a.m. to 1 p.m., Briar Patch Bed & Breakfast, 23130 Briar Patch Lane, Middleburg The networking group’s third quarterly panel on topics of importance to women this month features women in finance. The luncheon will feature panelists Jennifer Du Plessis of George Mason Mortgage; Mary Grate-Pyos of Financially Focused, Inc.; and Jennifer Shtipelman of EagleBank. Networking will begin at 10:30 a.m., with the panel discussion and Q&A session beginning at 11 a.m., followed by lunch and door prizes. For pricing information and to register, visit www.middleburgwomen. com.
Sept. 22 Best Practices for a Basic Website
Loudoun Small Business Development Center 6 to 8:30 p.m., The George Washington University Virginia Campus, 20101 Academic Way, Exploration Hall, Room 101, Ashburn Jim Huber, founder of Huberspace Web Design, provides cost effective tips and tools for how to set up a basic website. Huber will explain how usability is the key to success for your business website; affordable tools to set up your own basic website; do’s and don’ts to achieve best practices; why you should consider adding a mobile website; and how to add links to social media like Facebook and Twitter on your website. There is no charge for SBDC workshops in September, but pre-registration is strongly preferred. To register, visit www.loudounsbdc.org.
Earth and space science programs,� Mike Larkin, Orbital’s executive vice president and general manager of its Space Systems Group, stated. “The ICESat-2 program will be a welcome addition to our NASA activities at the company’s Gilbert, Arizona facility, which currently includes work on the LDCM satellite and on national security satellites.�
Simmons
Katie Simmons is the National Conference Center’s new catering sales manager. In her role, she is responsible for weddings,
Sept. 23 House of Delegates Candidates Forum
Loudoun Chamber of Commerce 8-10 a.m., The National Conference Center, 18980 Upper Belmont Place, Lansdowne The candidates for the House of Delegates seats representing Loudoun County will face off in the 2011 election’s premier candidates forum, where a panel of local business leaders will pose questions based on the Chamber’s 2011 Public Policy Agenda. For registration and pricing information, visit www.loudounchamber.org.
Sept. 27 Start Your Business
Loudoun Small Business Development Center 6 to 8:30 p.m., The George Washington University Virginia Campus, 20101 Academic Way, Exploration Hall, Room 101, Ashburn SBDC Executive Director Robin Suomi and Art Thompson, principal with Keyser Thompson Insurance Agency, Inc., provide attendees with the basics of starting a business. Highlights of the seminar include: taxes and licensing; business plan development; sources of financing; marketing; insurance; and entrepreneurial traits. There is no charge for SBDC workshops in September,
corporate events, holiday parties and other private functions. Simmons is the former director of sales at Heritage Hunt Golf and Country Club and also served as the catering manager at the Heritage Shores Club. She is a Gainesville resident.  Leesburg resident Michelle Bemis has been named to Travel + Leisure’s A-List, measuring the world’s top travel agents, for 2011. Bemis has been a travel agent for 18 years and specializes in adventure and group travel. She works at McCabe World Travel in McLean. This is her first time making the list.
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Email us at : loudounbusiness@leesburgtoday.com.
but pre-registration is strongly preferred. To register, visit www.loudounsbdc.org.
Oct. 4 State Senate Candidates Forum
Loudoun Chamber of Commerce 8-10 a.m., The National Conference Center, 18980 Upper Belmont Place, Lansdowne The candidates for the State Senate seats representing Loudoun County will face off in the 2011 election’s premier candidates forum, where a panel of local business leaders will pose questions based on the Chamber’s 2011 Public Policy Agenda. For registration and pricing information, visit www.loudounchamber.org.
Oct. 6 The MarketPlace
Loudoun Chamber of Commerce Noon to 6 p.m., Hyatt Dulles, 2300 Dulles Corner Boulevard, Herndon The second annual MarketPlace event is built for businesses of any size, with opportunities to showcase one’s company, network with others or attend one of several free workshops based on timely and important business topics. A silent auction will benefit the Make-A-Wish Foundation of the Mid-Atlantic. For registration and pricing information, visit www.loudounchamber.org.
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SEPTEMBER 2011
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