INSIDE An Early Look At Leesburg's Incubator ....Page 4 J ULY 2011 VOLUME 8 NO. 8
Business Leaders Call For Rail Resolution Support Builds For LaHood Phase 2 Cost-Cutting Plan By Erika Jacobson Moore & Kara Clark, Staff Writers
The soaring costs of the Rail to Dulles project have brought local business leaders off the sidelines to press the Metropolitan Washington Airports Authority board of directors as well as local, state and federal government leaders to quickly reassess the structure of the project’s Phase 2 financing plan. A group of business leaders organized a press conference June 23, just steps away from a future Metrorail station at Wiehle Avenue in Reston to protest the rising price tag. Leaders from the Loudoun, Fairfax, Dulles and Reston Chambers of Commerce called on the MWAA board to cut costs on
the Dulles Rail Phase 2 project. If not, they contend, the project may fail. The group maintained that the increasing cost of Phase 2 has not only made it unaffordable for local governments, area businesses and Dulles Toll Road users, but also threatens the project’s financial viability. In a letter delivered to MWAA Board President Charles Snelling June 22, the Chambers urged MWAA to seek cost reductions in five specific areas. Fairfax County Chamber president Jim Corcoran said that they believe about $1 billion could be saved from Phase 2 if all five recommendations were pursued by MWAA. First, the group asked MWAA to eliminate the requirement that the primary contractor implement a mandatory Project See Dulles Rail, Page 8
Loudoun Business/Kara Clark
Loudoun Chamber of Commerce President Tony Howard stood among the leaders of other local Chambers June 23 during a press conference in Reston.
Growing Market: Demand Continues For Data Centers New County Task Force Eyes Options For Alternative Energy Resources By Kara Clark, Staff Writer Loudoun’s data center industry continues to boom and shows no signs of slowing down. That’s according to Loudoun County Business Development Manager Buddy Rizer, who is responsible for recruiting prospects in what has been one of Loudoun’s strongest suits. “Loudoun County has become the number one place for data centers in the world,” he said. “We really see no end to
the demand.” Conservative estimates show that more than 50 percent of the world’s Internet traffic passes through Loudoun, but many speculate that number to be higher, in the 70 percent range. Almost 4 million square feet of data center space exists in the county right now, with another 500,000 square feet planned or under construction. Rizer also says there’s another 2 million square feet of potential data center construction in the pipeline. “I like our chances of winning that,” PRSRT STD U.S. Postage
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he said. “We see a ton in the pipeline and that’s what’s made our success story so really, really impressive.” According to Rizer, there is literally no existing supply of data center space in the county and many developers wait to build another such space until an existing percentage is already leased. Very few operators build pure spec space, he said. “Demand is outpacing delivery right now,” Rizer said. And his words couldn’t ring more true. Over the past few years, several big data center suppliers, most notably Digital Realty Trust, have had to speed up data center construction projects to meet the increasing demand. So, what is it that makes Loudoun County so attractive to data center users? It’s the infrastructure, says Rizer. “No one has a better accommodation of space, power and redundant fiber than Loudoun County,” he said.
The rise of cloud computing has also paid dividends for Loudoun. “As more and more is being pushed to the cloud, it’s driving a lot of this demand,” Rizer said. “More and more storage is being pushed to the cloud and the good news for us is that cloud has to be grounded somewhere. By and large it’s becoming more and more grounded in Loudoun County.” And the benefits for the county are endless. While data centers provide a significant boost to the tax rolls, they do not come with the needs presented by other commercial developments, namely road improvements and school construction, as they employ very few individuals. “With our unemployment rate at 3.9 percent, the most important thing for us is high-value real estate,” he said. “It’s a perfect industry for us in the right places.” Rizer stresses that last point, as only certain economic clusters in Loudoun are See Data Centers, Page 11
PAGE 2 | Loudoun Business
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JULY 2011
BUSINESSES
Giving Back Belfort Furniture took the lead again this year as the corporate sponsor for the YMCA Loudoun County Annual Charity Golf Tournament, which brought in more than $45,000. The proceeds from this event support the YMCA Loudoun County Building Bridges Program that provides quality after school and summer camp opportunities for families in Loudoun County. The tournament took place May 5 at Loudoun Valley Golf and Country Club in Purcellville. Since Belfort Furniture became the sponsor in 2005, their efforts have helped raise almost $300,000 for the YMCA Loudoun County. “It sounds like such a simple thing…giving a kid a chance to take part in camp, learn worthwhile skills, have fun and make new friends. But it is not a small thing,” Mike Huber, Belfort CEO, stated. “Organizations like the YMCA and the Building Bridges Program make a real difference in the lives of real families here in Loudoun County. I’m proud to be part of it, and proud that Belfort Furniture was able to once again sponsor this wonderful event.” In honor of the agency’s 90th anniversary milestone, employees from the Leesburg headquarters of AH&T Insurance volunteered for a “Day of Service” with Loudoun Habitat for Humanity. The AH&T team turned out to the Erin Peterson community in St. Louis on a sweltering Friday to construct and raise three exterior walls of a four bedroom home. “AH&T embraces the opportunity to contribute and support community organizations. To celebrate our 90th anniversary we thought it fitting to offer our time to Loudoun Habitat for Humanity. We are proud to support their efforts in this community,” said Kate Armfield, senior vice president at AH&T. . Langley Real Estate showed its support for local public schools, donating $1,000 to Creighton’s Corner Elementary in recognition of the firm’s most recent sale in the Greene Mill Preserve neighborhood. Creighton’s Corner has experienced tremendous growth over the
past few years and now that their playground has been completed the PTA is “interested in furthering their use of interactive classroom technology by supporting the purchase of additional Promethean tools for our classrooms.” Michael & Son Services is joining the community outreach to help Ashburn's Ryan Diviney. The 20-yearold former West Virginia University student was left in a vegetative state after being brutally attacked following a verbal altercation with two men. To help Diviney's family care for him, Michael & Son Services is donating a fully finished basement that includes a handicap bathroom “As I’ve told the Divineys we’re here to show our unwavering support for Ryan. It’s one of our biggest Michael & Son Cares project to date and we’ve picked up a few partners along the way who are donating additional materials. We’re hoping to not only make Ryan a little more comfortable, but also make Ken’s job a little easier because he’s literally tending to his son’s needs 24 hours a day,” Michael & Son Owner Basim Mansour said. The Diviney project is scheduled to begin mid-July. Loudoun Interfaith Relief got a helping hand from local BB&T employees, as part of the bank’s Lighthouse Project. More than $5,000 worth of food was purchased by BB&T, including many staples essential for the success of LIR’s Summer Pack program, which provides school-aged children with food to make breakfast and lunch while school is out for the summer.
Loudoun Business | PAGE 3
JULY 2011
MWAA Is Audited, Potter Named CEO
By Kara Clark, Staff Writer
It’s been quite the month for the Metropolitan Washington Airports Authority. With increasing scrutiny over the Phase 2 Rail to Dulles project mounting, federal officials announced at the end of June that MWAA would be audited. Calvin Scovell, inspector general of the U.S. Department of Transportation, announced June 21 that the DOT would begin conducting an audit of MWAA the following week. In a letter posted on the inspector general’s website, Scovell said recent decisions by the MWAA board regarding the Metrorail project “have generated significant attention” and, at the request of Rep. Frank R. Wolf (R-VA-10) and Rep. Tom Latham (RIA-4), the Department of Transportation is “initiating a review of MWAA’s management policies and processes.” The audit will investigate “whether the policies and processes under which MWAA operates comply with the terms of the law and the lease between DOT and MWAA” as well as whether “MWAA’s policies and processes are sufficient to ensure accountability and transparency of its Board’s activities.” Del. Joe T. May (R-33), chairman of the House of Delegates’ transportation
committee, said he had informed his committee members they too would be meeting with the MWAA board and its representatives Jack Potter to encourage changes to its bylaws and code of conduct that, in his words, “in the past have produced less than positive results.” May said he was inspired to make the request by the work of the Washington Metropolitan Area Transit Authority only a few months ago, when it voluntarily revamped its bylaws and procedures. “This is not breaking new ground,” he said. The move by the inspector general was somewhat unsurprising, as the MWAA board has come under fire lately, not just from the floor of the U.S. Capitol, but from local leaders as well. With both the unpopular decision for the Dulles Airport Metro station, with the board favoring a costSee MWAA, Page 9
Chamber Launches 2011 Election Education Program By Erika Jacobson Moore, Staff Writer For the fifth year the Loudoun County Chamber of Commerce is gearing up its BizVotes program—designed to inform Chamber members, and candidates, on the issues and policies important to businesses. But in its fifth installment, the election education campaign has added a new facet: the School Board. Previously BizVotes only dealt with the Board of Supervisors, the House of Delegates and the state Senate. “The School Board wields quite a bit of influence in this county,” Chamber President Tony Howard said. “I think it is important to know where they stand.” The BizVotes program uses candidate questionnaires, candidate forums and a communications effort to get information out about the candidates’ platforms and where they stand on business issues. “We try to educate our members first, the candidates next and the general public
next,” Howard said. “We proactively reach out to [the candidates] to participate. And they’ve never turned us down.” The questionnaires are almost complete, Howard said, and will be distributed to candidates shortly. It is a series of questions that candidates will have two weeks to complete and return to the Chamber. “We basically ask them to tell us what you think,” Howard said. “Ultimately, what we want is a more well-informed betterinformed electorate. We want them to be aware of the Chamber’s position on the issues that impact the quality of life in Loudoun County.” Among the Chamber’s policy positions are issues surrounding education and workforce; economic development and tourism; and infrastructure investment. And the Chamber is looking for specifics on where the candidates stand on those issues. See BizVotes, Page 11
Redskins Leaving Loudoun?
By Kara Clark, Staff Writer
Media reports have been circulating for months that The Home of the Washington Redskins may be changing its ZIP code. The Washington Redskins are reportedly exploring the move of its team headquarters, currently located off Loudoun County Parkway in Ashburn, to Prince George’s County, MD. Team owner Daniel Snyder as well as current coach Mike Shanahan have been vocal about the possibility of a headquarters, or at least training camp move, in the past. In mid-June, Prince George’s County leaders took it one step further, asking the Maryland Stadium Authority and the state’s Department of Economic Development to fund a study exploring the feasibility of such a move. A parcel of land next to Bowie State University has been identified as a potential site. With the team’s stadium, FedEx Field, already located there, Prince George’s County officials find themselves well positioned: they have the right of first refusal should the team decide to make its move out of Loudoun. Visit Loudoun CEO Patrick Kaler said most of the information he is receiving is being gleaned by the same media reports being read by local residents. Although he said he has been in talks with the team’s marketing department regarding the partnership forged between the county and the Redskins several years ago, he has received
no word on the team’s future plans. “It’s hard to speculate or put your thoughts around whatever the options might be that are out there floating around,” Kaler said. Kaler said the loss to the county may be more in terms of the public relations platform the team headquarters’ location affords. Even during the National Football League lockout, any publication released by the team still states “Loudoun County: Home of the Washington Redskins.” “To have the cache of a professional football team in your area that means something and so just the cache of having the Redskins here means a great deal to the county and to raising the awareness of Loudoun County,” he said. With training camp in doubt, as the lockout continues to loom, Kaler said the communication with the team has thus far centered more on that impact to the marketing partnership deal. Kaler said the economic impact of training camp translates to about $600,000. If that money is realized, and if there is a football season this fall, it is to be decided in the courtroom and around the negotiating table and not in Loudoun County. Until more is determined on the team’s plans, fingers remained crossed throughout the county that Loudoun will remain the team’s home. “Until we know something more substantial there’s really nothing we can do,” Kaler said. “We’ll wait and see where things fall out.”
‘Hiring Our Heroes’ Job Fair Set For July 12 The Loudoun County Chamber of Commerce will give special access to military veterans during a job fair Tuesday, July 12. The “Hiring Our Heroes” job fair will be held at the Embassy Suites Dulles North Hotel on Waxpool Road in Ashburn. Doors for veterans will open at 9 a.m. for the free event, where dozens of employers are expected to exhibit. The job fair runs until 2 p.m., with doors opening for non-veteran job seekers at 10 a.m. According to the Chamber, the idea to focus on serving veterans during the job fair comes from an alarming statistic: there are currently more than 1 million unemployed former servicemen and women. In addition to prospective employers, veterans and other job-seekers will be able to meet face-to-face with local companies and with employment experts from the U.S. Department of Labor, the Virginia Employment Commission and the Loudoun Workforce Resource Center. There also will be workshops to educate veterans and others on the state and federal programs that are available to help jobseekers improve their skills and locate good job opportunities. The Leesburg Chapter of the Society of Human Resources Managers will also be on hand to provide free resume reviews for all attendees. For more information about the job fair, visit www.loudounchamber.org.
PAGE 4 | Loudoun Business
Inside The Incubator: A Preview
L
eesburg and Loudoun County leaders got a recent sneak peak of the new Mason Enterprise Center Leesburg, the county’s first business incubator. The 10,000-square-foot building at 202 Church Street is expected to open in September. The incubator will house start-up businesses that meet certain criteria. 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 will be on hand to guide these businesses from the start-up phase to a successful enterprise. In addition to incubator tenants, both the Loudoun Small Business Development Center and the town’s Economic Development Department will set up shop in the space. A quick walk through the Church Street building makes clear its potential as an attractive business destination. The space 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 set up 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 green feature of the building will be its elevator, which will run without a hydraulic fluid component and will become the first elevator on the East Coast to do so. Other green elements include energy efficient insulation, an HV/AC system and other design features.
JULY 2011
Loudoun Business | PAGE 5
JULY 2011
The Flavor Of Loudoun
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ing. It had great historic charm on the one hand, but lacked good dining options, had little to offer in terms of entertainment, and was cluttered with awkwardly planned housing and unsafe traffic patterns. The charming, historic town was falling into disarray. When it was By John Wood obvious to many that downtown Leesburg was not sharing in the prosperity of the surrounding areas, the Leesburg Downtown Improvement Association was formed. This committee rallied for millions of dollars in improvement projects in Leesburg, such as updating sidewalks to make the downtown more walkable and improving roadways to better the safety and quality of life of its residents. Leesburg has also embarked upon an image transformation, which will eventually paint Leesburg as the Old Town of Loudoun County. Through the Leesburg copy.pdf 1 7/8/11 2:00 focused efforts of the Leesburg Economic
A Business Perspective
Over the past few months I have shared my thoughts on issues pertaining to Loudoun County. In the first article, I set up the framework by introducing the CEO Cabinet and the issues its members agreed that, if improved, would make Loudoun the best place to live and work in America: infrastructure, congestion and education. Last month I discussed rail to Loudoun, the obstacles facing the project, and the vast benefits its successful completion would bring to our region. This month I’d like to talk about bringing depth to Loudoun County. By depth, I mean complexion, richness, identity and flavor. Maybe that’s a better word for it. We need flavor in Loudoun County. I like to think of the Comprehensive Plan Amendment on Rt. 28 as the agent that will change Loudoun County from vanilla ice cream into a Baskin Robbins with 31 flavors. The Comprehensive Plan Amendment utilizes smart-growth development principles. If you are unfamiliar with the term, smart-growth development allows for long-range preservation of our natural and cultural resources, expands transportation, employment and housing choices, all while achieving a unique sense of community. The Comprehensive Plan Amendment allows for more mixeduse developments, like the Reston Town Center, to be built in Loudoun County. Kincora is the first smart-growth, mixed-use development planned alongside Rt. 28. It will bring rich community to the area. Along with integrating office, residential and commercial spaces, these mixeduse developments will become entertainment destinations in Loudoun County, giving flavor to what has traditionally been a pretty vanilla region—with businesses and sprawling housing developments. What sort of flavor? For starters, Kincora will bring a professional baseball team, the Loudoun Hounds, to the area, complete with a state of the art stadium. The stadium, or the “Hound Pound,” will not only host ball games, but will become a venue for entertainment, sporting and cultural events year-round. The Hound Pound will be a true professional sports and entertainment entity in the region, with the ability to host concerts, festivals, carnivals, graduations and professional or collegiate sporting events. In addition, the stadium will offer an NHL-sized public hockey rink, and an on-site brewery, which will be run by a local brewmaster. This stadium will increase the entertainment options for all of Loudoun County. Now let’s move to a different part of the county. Up until about five years ago, Leesburg was on the precipice of disappear-
Development Commission, the vision for the Leesburg Arts and Cultural District was formed. As an art, entertainment and dining destination with historic charm, Leesburg could eventually be compared to Old Town Alexandria. This transformation would help to position, promote and expand downtown Leesburg—and again, it would bring flavor with theaters, art galleries, dance studios, music venues and possibly art and culinary schools. These establishments would enrich and liven a town that less than a decade ago was in rapid decline. It would be great if Loudoun County could support Leesburg’s efforts in the form of increased tax incentives for businesses. Attractive tax incentives will make entertainment and art venues more likely to locate in Leesburg. Loudoun has an amazing rural west. The pristine countryside is rich in history, horse culture and vineyards. However attractive to many of us, we must realize that those aspects of Loudoun only appeal to a portion of our population. By taking advantage of the Comprehensive Plan Amendment’s potential for better utilization of the Rt. 28 corridor, we will prevent further development sprawl in this area. While we preserve the rural western land by limiting sprawl, we will create more colorful entertainment options that may appeal to a younger generation. The accesPM sibility to rail (which will have a stop
along Rt. 28) will also encourage a new generation to make their home in Loudoun County. The efforts Leesburg is making to create an arts and entertainment district will also help to attract qualified and skilled employees. You see, this generation of tech-savvy digital natives is extremely important to the business community, because they comprise our future employee pool. Without sufficient transportation, infrastructure and diverse entertainment options, or flavor, we will be limiting the quality of employees that are available to us in the future. Next month I’ll discuss education as the root of Loudon County’s economic prosperity, and the importance of community involvement in our educational system. [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/jbhw.]
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Loudoun Business welcomes Letters to the Editor. Letters must be signed and include the writer’s name, address and daytime phone number. All rights reserved. No part of Loudoun Business may be reproduced physically or electronically without the written permission of the publisher. Loudoun Business is not responsible for unsolicited manuscripts or artwork. We are pledged to the letter and spirit of Virginia’s policy for achieving equal housing opportunity throughout the Commonwealth. We encourage and support advertising and marketing programs in which there are no barriers to obtaining housing because of race, color, religion, national origin, sex, elderliness, familial status or handicap. All real estate advertised herein is subject to Virginia’s fair housing law which makes it illegal to advertise “any preference, limitation, or discrimination because of race, color, religion, national origin, sex, elderliness, familial status or handicap or intention to make any such preference, limitation, or discrimination.” This newspaper will not knowingly accept advertising for real estate that violates the fair housing law. Our readers are hereby informed that all dwellings advertised in this newspaper are available on an equal opportunity basis. For more information or to file a housing complaint call the Virginia Fair Housing office at (804) 367-8530. Toll free call (888) 551-3247. For the hearing impaired call (804) 367-9753. Email: fairhousing@dpor.Virginia.gov. Web site: www.fairhousing.vipnet.org.
PAGE 6 | Loudoun Business
JULY 2011
Q&A With The Authors Of The Lemonade Stand The two owners of Leesburg-based Omnilert, Ara Bagdasarian and Nick Gustavsson, both entrepreneurs at heart, have cooked up a new creation. Their first book project, The Lemonade Stand, has quickly garnered a significant amount of local attention. The two recently chatted with Loudoun Business about their new endeavor. Q: Tell us how you got the idea for the book and the path that led from the initial idea to the book’s publication. A: The idea for the book came after we had consulted with dozens of entrepreneurs and would-be entrepreneurs who just never developed their great idea into a business. We started noticing recurring obstacles such as “I need to write a 200page business plan” to “I need to raise $3 million and find an office” to “I just do not have the time to make this happen.” Well, there has never been a better time in history to start a business than right now. The inspiration to accelerate the release of the book was the current state of unem-
ployment in the U.S. If there are no jobs available in the marketplace, then why not create your own job? If there is a pain that is not being remedied in your community, there is an opportunity to satisfy that pain and start a business. Q: What’s the inspiration behind the book’s title? A: The title came from the premise that every problem in life or in business is an opportunity. Making “lemonade” from the lemons people face everyday is the perspective that we impart on the reader. Every problem that is yet to be solved is an opportunity to improve the world we live in. The Lemonade Stand is a new business model that empowers anyone to start a business. The book eliminates the obstacles that prevent most people from taking the next step and it provides the perspective necessary to be successful. Q: What is the premise behind the book and what is your hope that the readers will take away from it? A: The Lemonade Stand is not another howto book on starting a business. Instead it is
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the first “why to” entrepreneurship book written. We hope readers will have a new perspective on the world, and in turn start that business that they have always been talking about. The book ends with a call to action for readers. Not only should the reader make lemonade and start a business, they should make lemonade in their communities. Armed with the Lemonade Stand perspective, the readers are challenged to improve the communities they live in by sharing this new perspective with other businesses, civic groups, government and non-profit organizations. We call these entrepreneurs who embrace problems “Lemonheads.” Our goal is to have Lemonheads emerge in every community in the world.
this at unemployment offices in the U.S. So many Americans are passing months, even years, without finding a job. By reading the book, we anticipate that this new perspective will open a new path towards starting a business, personal liberation and new opportunity.
Q: We’ve heard that for every book you sell you donate one. Please tell us about how this idea came to pass and who the donated books would benefit.
Q: Where is the book available to purchase?
A: We decided to donate a copy of The Lemonade Stand to someone in need of the book with every purchased copy. We do
Q: What has the reception been like so far for the book? Any inkling to begin another book project? A: The reception for the book has been inspiring. It is very humbling to hear how even one principle from the book made an impact on someone’s life. We will be starting our next book soon. It will be a new perspective on the workplace and the way we work in this century.
A: The book is available on Amazon.com for purchase, and can also be accessed on www.lemonheadsrule.com—a website created by a local entrepreneur to spread the perspective of The Lemonade Stand.
Loudoun Business | PAGE 7
JULY 2011 the new contract is $26.4 million. The Naval Air Systems Command, based at Patuxent River Naval Air Station in Maryland, manages the Coyote program.
In Brief For the third time in five years, Virginia has ranked atop the list of the Top States For Business. The annual CNBC rankings had the Commonwealth at the top of its list, with the highest rankings ever earned in the annual survey. The rankings cited Virginia’s strategic location, friendly business climate and diverse economy. While the state fell back in its ranking for quality of life, strides were made in the areas of education, with a move to reduce class sizes, and tax burden. The state finished in the top 10 in several categories: infrastructure and transportation, economy, education, business friendliness and access to capital. More good news for Orbital. Dullesbased Orbital Sciences Corporation has been awarded its second commercial DES ad 3/9/04 7:28 AM Page 1 contract this year. THAICOM Plc. has awarded the company a firm contract for the Thaicom 6 communications satellite. Based on Orbital’s GEOStar-2™ satellite platform, the Thaicom 6 satellite will be designed, manufactured and tested at Orbital’s satellite manufacturing facility in Dulles. The Thaicom 6 satellite is planned
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to be launched in mid-2013. The Thaicom 6 satellite’s payload will offer hybrid Ku- and C-band services to the south and southeast Asia and southern Africa regions. The Thaicom 6 satellite is the 34th geosynchronous-Earth orbit communications satellite ordered by Orbital’s customers around the world, 23 of which are in orbit with 11 others in design, production or prelaunch preparations. It is Orbital’s second order of the year for its commercial communications satellites following the order in February by SES WORLD SKIES for the SES-8 satellite. The company also has been awarded a production contract for seven Coyote supersonic sea-skimming target vehicles and related equipment by the U.S. Navy. The latest order for Orbital’s Coyote target program is in addition to existing production contracts for the Mach 2.5-capable, low-altitude target missile used by the Navy to test fleet selfdefense systems against a threat-representative target. This latest SSST order is the fifth full-rate production contract following a highly successful five-year development and flight test program. The total value of
A.J. Krick , of Updegrove, Combs & McDaniel, PLC in Leesburg, has received the designation of Certified Public Accountant from the Virginia Board of Accountancy. Krick graduated from James Madison University, with a bachelor’s degree in business administration and accounting. He joined UCM’s Warrenton office in January 2010 and provides tax preparation and planning services to both individuals and businesses. Krick is a member of the American Institute of Certified Public Accountants and the Virginia Society of Certified Public Accountants.
industry and I couldn’t be more excited about this announcement.” With the addition of Virginia, eXp Realty is now operational in 15 states after only one year since its founding. eXp offers a fully-immersive and interactive virtual platform with more than 10 live training sessions per week and explosive technological tools. In addition, eXp offers its agents 80 percent on every deal they do with no franchise fees or desk fees. This is the lowest company dollar cap among national brokerages at 16k before going to 100 percent, and the industry’s most aggressive gross revenue share program. A former Washington Redskins player and RE/MAX Hall of Fame inductee, Harbour currently sits on the board of directors for the Dulles Area Association of Realtors and often appears as a real estate expert on HGTV’s national show, “Get It Sold,” sharing tactics for sellers in today’s market.
David Harbour has announced that he will be heading up the expansion and growth of eXp Realty in the state of Virginia. Harbour is a founder of NOVA Briar Patch Bed & Breakfast Inn near Green Real Estate Group. “With consumers Middleburg was named a top wedding embracing new technologies, it is impera- destination by several wedding industry tive that agents partner with like-minded media outlets. The awards, representing companies,” Harbour said. “I believe that quality and service excellence for wedding eXp Realty’s model for technology, efficien- professionals based on reviews by industry cy and sustainable practices will radically peers and the brides themselves, included change Brokerages across the country - we WeddingWire’s Bride’s Choice Awards 2011, are excited to launch the world’s first Web The Knot’s Best of Weddings 2011 and 3.0 Real Estate company in Virginia. This being named one of Washingtonian Bride & will position eXp to be a future leader Groom’s 2011 recommended vendors. Business | Page in the evolving and changing real Loudoun estate
as what social media tool you should be using. Even within the same industry two companies can be competitors but may be trying to achieve different things on social media.
Does Your Network Perform Like It Should?
Q: How do you see social media continuing to evolve and how has it changed the business world already?
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Labor Agreement for the Phase 2 project. Loudoun Chamber President Tony Howard, who spoke on that issue, noted that Virginia is a right-to-work state, and therefore many businesses have set up a “merit-based shop” that would make it impossible for them to bid on the project. The PLA requirement “discriminates against Virginia’s merit-based shops and it also discriminates against Virginia workers,” Howard said, noting that 90 percent of Virginia’s construction workers are non-union. “They shouldn’t be required to join a union to work on this project.” Additionally, the Chambers backed a plan supported by the local governments in Loudoun and Fairfax counties to adopt an above-ground station design at Dulles Airport, instead of the controversial underground station and its extra $330 million price tag approved by the MWAA board a few months ago. The letter also asked the board to reduce the scope of the Dulles Airport rail yard and seek ways to finance it separately or in conjunction with the Washington Metropolitan Area Transit Authority. That is estimated to save between $50 million and $100 million from the total project. “This yard is going to service the entire metro system,” Corcoran pointed out. “Every train in the Metro system can be parked and can be serviced at this rail yard. Yet it’s being funded strictly by the Phase 2 costs of this system. Why isn’t the entire Metro system paying a part of this?” The group also requested that the MWAA board ask local governments in Fairfax and Loudoun counties to assume responsibility for the funding and construction of parking structures, similar to the current public-private partnership at the Wiehle Avenue station. This, they say, can also reduce project costs by hundreds of millions of dollars, as local governments can use revenue bonds or similar financing mechanisms to fund construction of the garages. That debt would be repaid through garage user fees and the local governments would then retain operational control of the garages. “Phase 2 has all that cost in there with no recovery back to the taxpayers,” Corcoran said, adding that transferring the garages would “create a revenue stream” for Fairfax and Loudoun. Finally, the letter asks the MWAA board to seek additional funding from both the Commonwealth of Virginia and the federal government. The letter notes that when the Dulles Corridor Metrorail Project was launched, the funding responsibilities for the two were 25 percent and 50 percent, respectively. At press time,
JULY 2011 they maintain, only Loudoun and Fairfax counties have shown any significant financial support for the project many decree to be the number one transportation priority in the region. Mark Ingrao, president of the Greater Reston Chamber, noted that the original finance reports for Phase 2 showed the federal government providing 14 percent of the project in grants and the commonwealth would contribute another 4.2 percent. “But those funds have not been realized,” Ingrao said. “Instead the toll road [corridor] employers and employees have been asked to fund 90 percent of the cost of Phase 2 and with no control over how high the costs might rise.” Howard said the MWAA board is in a position similar to many business enterprises, where if a project isn’t affordable, things need to be scaled back to make it so. “It’s not necessarily any one or two things but the compilation of all the various items we’ve delineated has driven up the costs to an unaffordable level,” he said. “We are concerned not just that it’s expensive...but the fact that the project could collapse under its own weight because it’s not financeable.” Business leaders rallied behind a plan put forward by U.S. Transportation Secretary Ray LaHood, presented to the Loudoun Board of Supervisors July 6 after LaHood had spent several weeks trying to iron out the differences between government leaders and MWAA. The plan is proposed to shave about $1 billion off the project cost and put it closer in line to the original $2.7 billion estimate. Included in the secretary’s proposal is an aerial station option at Dulles Airport, which would take an estimated $562 million off the total cost. An additional $10 million would be added back in, however, to allow for the enclosing and climate control of that aerial station. LaHood’s proposal also would reduce the size of the rail yard at the airport for a savings of $81 million and would transfer responsibility of the Rt. 28 station to Fairfax County, further reducing the cost by $136 million. All five parking structures associated with the Phase 2 stations would fall under the responsibly of the counties in which they are located--as it is in Phase 1. As currently proposed, the station maintenance is under the auspice of the overall rail project managed by MWAA. Transferring that responsibility is projected to take another $225 million off the total project cost. Another $15 million could be saved by reducing the canopy design for Phase 2 stations, and $35 million could be saved by changing the structural design elements from concrete to steel. Finally, $4 million in savings is included in LaHood’s
Loudoun Business | PAGE 9
JULY 2011 proposal through changing the station finishes. With a current price tag of $3.83 billion, LaHood’s proposed changes would reduce the price to approximately $2.77 billion. The original estimated price for the project was $2.7 billion. LaHood also has identified additional changes later in the construction process that could save another $100 million. Chairman Scott K. York (R-At Large), who has been Loudoun’s representative at the meetings with LaHood, told supervisors that the Fairfax County Board of Supervisors had looked briefly at the proposal already and members had said they were willing to consider taking over their two parking garages and construction of the Rt. 28 station. But, York noted, that was contingent upon MWAA accepting the aerial station versus the more expensive underground station—a point on which the Loudoun board also has held strong. As of this time, the MWAA board has not taken any action on LaHood’s proposal. Even if the remaining funding partners back the plan, it is MWAA that has to agree to build the aerial station before it can move forward. York also said July 6 that state government representatives, in a conversation held early that morning, had indicated they might be able to contribute $150 million to the rail project, which would help bring down the total cost, and therefore Loudoun’s contracted obligation to cover 4.8 percent of the bill. Once final preliminary engineering and design is complete on the project, and the cost set, Loudoun will have 90 days to decide whether it wants to continue its involvement, or pull its support from the project. Supervisors deferred taking a position on the rail proposal until their July 19 meeting. But the same business leaders who held the June 23 press conference did not waste time giving a thumbs-up to LaHood’s proposal. In a letter dated July 6 and addressed to Snelling, Chamber leaders say the secretary’s proposal “moves the project in the right direction.” “The Secretary and FTA [the Federal Transportation Administration] have responded to the concerns of the project’s funding partners and those that we raised in our letter of June 22, 2011, as organizations representing businesses, employees and residents who will bear most of the cost of Phase 2 through real estate taxes, business taxes and tolls on the Dulles Toll Road,” the letter reads. “This project is vital to the future of the National Capital Region and to all of the project’s stakeholders.”
MWAA
Continued From Page 3 lier underground option as opposed to the above-ground station supported by local and state leaders, and the lengthy and at times controversial process for hiring a new president and CEO, MWAA has been a popular target for criticism. One day following the announcement of the audit, one of these issues was seemingly resolved. The MWAA board voted June 22 to appoint former postmaster general John E. “Jack” Potter its new CEO. Potter replaces Jim Bennett, who retired from the post last spring. Interim
CEO E. Lynn Hampton has been serving in his stead. Potter served 10 years as postmaster general and was credited with helping to transform the Postal Service into a customer service-focused and service-driven organization. There, he managed an organization with more than 500,000 employees. Potter is a Bronx native and the son of a Manhattan mail carrier. He began his career as a postal clerk in New York in 1978. He earned a degree in economics at Fordham University and a master’s degree as a Sloan Fellow at Massachusetts Institute of Technology. While at USPS, Potter is credited with
the development of a stronger privacy program and implementing a customer service-focused and performance-based culture. He will take up his post at the authority by July 18, and has stated that he would not grant interview requests until that time. In addition to a signing bonus, he will receive an annual salary of $350,000. In announcing the decision, board Chairman Charles Snelling said, “Jack is also the right person at the right time to meet the challenges of building Metrorail in the Dulles Corridor and improving the Dulles Toll Road to promote mobility and economic development for our region.”
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21 Culinary Sites and Restaurants
Offering a diverse range of menu selections and price points! Complemented by wines/spirits from 11 providers Featuring fresh ingredients from 17 Loudoun County Farms
JULY 21—31, 2011 CULINARY SITES • ASHBURN • Clyde’s Willowcreek • LEESBURG • Aiyara Thai Restaurant • Fire Works Pizza • Lightfoot Restaurant • ‘On the Potomac’ at Lansdowne Resort • Palio Ristorante • Shoes Cup & Cork Club • Tenderjacks • The Wine Kitchen • Tuscarora Mill • Vintage 50 • LOVETTSVILLE • Market Table Bistro • The Restaurant at Patowmack Farm • MIDDLEBURG • The French Hound • Goodstone Inn & Estate • Market Salamander • Red Fox Inn • NEERSVILLE • Grandale Farm Restaurant • PURCELLVILLE • Magnolias at the Mill • SOUTH RIDING • Vintage 51 • STERLING • Cookology • WINERIES • 8 Chains North Winery • Bluemont Vineyard • Corcoran Vineyards • Doukenie Winery • Fabbioli Cellars • Loudoun Valley Vineyards • North Gate Vineyard • Notaviva Vineyards • Tarara Winery • Willowcroft Farm Vineyards • SPIRITS • Catoctin Creek Distillery • FARMS • Allder School Berries • Ayrshire Farm • Checkmate Farm • Endless Summer Harvest • Farmer John’s Wayside Fruit & Vegetable Market • Great Country Farms • Greenstone Fields • Mill Road Farm • Milcreek Farm • Oakland Green Farm • Patowmack Farm • Potomac Vegetable Farms • Quarter Branch Farm • Red Hill Farm • Stoneybrook Farm • SunPower Farm • Wegmeyer Farms
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PAGE 10 | Loudoun Business
■ Business Calendar July 12 Loudoun County Job Fair
Loudoun Chamber of Commerce 10 a.m. to 2 p.m., Embassy Suites Dulles North Hotel, 44610 Waxpool Road, Ashburn Almost 500 highly qualified job seekers and more than 30 employers ready to hire are expected at this annual Chamber event. There is no cost to attend the job fair; for exhibitor or sponsorship information visit www.loudounchamber.org.
Intellectual Property
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 Thomas Dunlap, partner with Dunlap, Grubb & Weaver, PLLC, will speak on the basics of copyrights, trademarks, patents and trade secrets. The discussion will touch on the differences between types of IP; risks of not understanding your own IP; and the rights and protections for owners of IP assets and the processes for obtaining them, among other things. Cost for the
seminar is $25 if pre-registered or $30 at the door. To register, visit www.loudounsbdc.org.
July 14 Business Showcase Breakfast
Loudoun Chamber of Commerce 7:30 to 9 a.m., Belmont Country Club, 19661 Belmont Manor Lane, Ashburn Join almost 150 Chamber members, new and old, at this monthly, signature roundtable networking breakfast. Early registrants will have their name and company information displayed on the membersonly attendee list. Fee for the breakfast is $25 for Chamber members and $35 for non-members. To register, visit www.loudounchamber.org.
Sterling Women
11 a.m. to 1:30 p.m., The National Conference Center, 18980 Upper Belmont Place, Lansdowne Dr. Thara Kodandaramachandra, of Parma Spa and Center for Health and Medicine, serves as the speaker for the networking group’s monthly luncheon. Networking opportunities are available before and after the lunch, which begins at
noon. For more information and to register, visit www.sterlingwomen.org.
Ad Deadline July 18th Call 703-771-8800 Today!
Member Appreciation Reception
Committee for Dulles 4 to 7 p.m., aloft Dulles North Hotel, Grow Your Business 22390 Flagstaff Plaza, Ashburn Loudoun Chamber of Commerce Committee for Dulles members are 11:30 a.m. to 1 p.m., Chamber offices, invited to a special mid-summer evening, 19301 Winmeade Drive #210, Lansdowne members-only reception. CFD members “Selling in the Chamber – Maximize who bring a prospective member with Your Chamber Action Plan” will be the them will be eligible for a special prize monthly topic in a series that gets attend- drawing. For details, visit www.committeees up close and personal with experts in efordulles.org. different business fields. Each luncheon in the Grow Your Business series features After Hours Mixer a prepared presentation followed by an Loudoun Chamber of Commerce extensive Q&A session. Lunch is provided. 5:30 to 7 p.m., Holiday Inn Carradoc Hall, Cost for the event is $10 for Chamber 1500 East Market Street, Leesburg members and $15 for non-members and Join Chamber members, board memwalk-ins. To register, visit www.loudoun- bers and new members as they power chamber.org. network around fine catering and tasty
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 Business Counselor Ruth Cope 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. Preregistration fee is $10 or $15 at the door. To register, visit www.loudounsbdc.org.
Wake Up to a Greener Loudoun
Our readers are educated, well informed and affluent consumers, looking for doctors, successful diet programs and health clubs to suit their personal needs.
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JULY 2011
Loudoun Chamber of Commerce/Office of Transportation Services 8 to 9 a.m., REHAU, 1501 Edwards Ferry Road, Leesburg This monthly gathering provides the chance to learn more about the 2011 Green Business Challenge over a cup of coffee and light breakfast. A discussion and Q&A session will be held, along with a raffle prize and giveaways. There is no cost to attend, although reservations are appreciated. To register, visit www.loudounchamber.org.
Middleburg Women
11:30 a.m. to 1:30 p.m., Briar Patch Bed and Breakfast, 23130 Briar Patch Lane, Middleburg Amy Smith, of Amy V. Smith Wealth Management, will be the guest speaker at the networking group’s monthly luncheon. Networking will begin at 11:30 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.
beverages at this monthly event. Pre-registration fee is $15 for members and guests or $20 at the door. To register, visit www. loudounchamber.org.
July 26 Bookkeeping & Taxation
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 Join Brian Kling, CPA, of Yount, Hyde & Barbour, PC, for an informative discussion on best practices in bookkeeping and taxation for small businesses. Kling will go over proper set-up of accounting records; monthly and quarterly filings and bookkeeping responsibilities; the four most common tax returns for companies; and more. Cost of the seminar is $25 if pre-registered or $30 at the door. To register, visit www.loudounsbdc.org.
Aug. 11 Business Showcase Breakfast
Loudoun Chamber of Commerce 7:30 to 9 a.m., Belmont Country Club, 19661 Belmont Manor Lane, Ashburn Join almost 150 Chamber members, new and old, at this monthly, signature roundtable networking breakfast. Early registrants will have their name and company information displayed on the membersonly attendee list. Fee for the breakfast is $25 for Chamber members and $35 for non-members. To register, visit www.loudounchamber.org.
Loudoun Business | PAGE 11
JULY 2011
Data Centers
Continued From Page 1 appropriate to locate data centers, namely the Greenway and Waxpool clusters, given the amount of construction space and access to the power grid. With many data center operators looking to adopt more sustainable practices, as data centers typically require a significant amount of cooling power, Rizer said many have been eying the construction of multi-story facilities. “From a business sense they have to look at ways and alternatives of being more efficient in use in addition to being good corporate citizens,â€? he said. “All major [data center] operators have initiatives in place; they’re all looking at alternatives when it comes to energy usage, cooling methods, energy delivery‌all those things that are important in day-today business.â€? And they’re not the only ones with an eye toward a green future. The Board of Supervisors voted June 21 to create the Energy Advisory Task Force, an idea first put forward by Economic Development Director Tom Flynn during his quarterly economic development update to the board in May. The 21-member task force will be charged with developing a plan to grow and attract sustainable energy sources to support Loudoun’s economic clusters, particularly Information and Community Technology businesses, as well as those that support the county’s growing data center base, government contracting industry and international businesses. Flynn said that the plan developed by the task force would build upon the Country Energy Strategy adopted by the board in 2009 and propel Loudoun forward as “a recognized location of choice for investmentâ€? because of the county’s energy vision. He noted that the economic development staff is “beginning to see the issue of sustainable energy supplies being pushed to the forefrontâ€? and the task force could investigate such issues as how data centers can become greener and how the county can work to ensure that adequate alternative energy sources are available to those types of industries it is most looking to attract, as well as to bring those companies that provide alternative energy resources. Among the membership proposed for the task force are representatives from the Economic Development Commission, the Rural Economic Development Council, the Loudoun Chamber of Commerce, the Piedmont Environmental Council, the Northern Virginia Technology Committee, major utility companies, including Loudoun Water, as well as representatives of the local educational system,
including higher education institutions. Representatives from local businesses would also be added to the task force, particularly in the sectors identified in the county’s targeted business clusters. The task force would be given 16 months to conduct research and present a final report to county staff, who would then distribute that information to supervisors. The task force would sunset after that time, Flynn said. At the suggestion of Supervisors Andrea McGimsey (D-Potomac) and Eugene Delgaudio (R-Sterling) liaisons will be added to expand the group’s membership, and there will be at least one representative from one of Loudoun’s top 10 largest employers on the task force. McGimsey said the task force, and the outcome of its work, was just another way of billing Loudoun as a top business destination. “The private sector is demanding sustainable energy,� she said. “For many, it’s a core decision factor in where to grow their companies.� Supervisors will soon have a large data center application to mull over, one that has already engendered a negative reaction from the Planning Commission. A secure data center complex application was put forward by developer John Andrews, the same individual behind a hybrid energy plant outside of Leesburg approved by the board within
Professional Business ConneCtions
the last year. Plans for the 200-acre property envisions the development of up to 3.9 million square feet of data center space and another 1 million square feet of commercial uses. It is projected to bring in more than $51 million in annual tax revenue. While the tax revenue has many salivating, the location of the proposed development is what has caused the most concern. Located in the Transition Policy Area
south of Leesburg, in what is intended to serve as a visual and developmental buffer between the suburban east and the rural west, some posit the application could open up the area to more intensive development. A committee of the whole session on the data center application is planned for July 19, with a vote expected before the board’s August recess.
BizVotes
grown in size and, I hope, in stature. And that is because of BizVotes,� Howard said. The candidate forums for this fall have already been set for the BizVotes program: • Board of Supervisors: Sept.14, The National Conference Center in Lansdowne • House of Delegates: Sept. 23, The National Conference Center in Lansdowne • State Senate Candidates: Oct. 4, The National Conference Center in Lansdowne More information on the BizVotes program, including complete information on the Chamber’s policy positions, can be found online at www.loudounchamber. org/BizVotes.
Continued From Page 3 “Everyone is for jobs. That’s like everyone saying people are for the economy or economic development. But you have to be able to invest in the infrastructure to take it to the next level,� Howard said. “We want to hear the specifics of the candidates’ plan.� Whatever answers are given, as long as they are within the permitted word counts, will be passed on “without editorializing� to the Chamber members. Over the past four election cycles the program has been enormously successful, Howard said, and the Chamber does not expect anything different in its fifth installment. “Overall, our policy program is really
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PAGE 12 | Loudoun Business
Existing Homes Sales Strong In June By Rosemary deButts, Contributing Writer
The existing home market in Loudoun County had a good June. While unable to beat total sales in June 2010, the 553 preliminary sales represented a 31 percent gain over May and outpaced both June 2009 and June 2008. Even though June had a strong sales rally, the year-to-date totals are still the lowest in at least six years. By contrast, the 2011 median sales price in Loudoun County continues to advance, reaching the highest point since 2007. Of the 2,287 units sold in 2011 to date, the largest share was priced between $200,000 and $399,999 (44 percent). During May and June however, 19 homes priced above $1 million were sold (10 in May and nine in June). This is unprecedented in recent history. High priced homes contributed to the $410,000 June median sales price representing a 5 percent increase over May 2011 and June 2010 as well. Median prices advanced throughout the county. Eastern Loudoun posted a median of $388,450 in June, up from the revised May median of $360,549. In Leesburg, the median increased from $410,000 in May to $420,000 in June. Western Loudoun, which typically posts the highest median sales price, was $440,000 in June, up from $435,000 in May. For the fifth consecutive month, the share of distressed sales (short sales and bank owned properties) declined in Loudoun County during June to reach the lowest point since the multiple listing service began requiring these designations in early 2009. There were 78 short sales and 35 foreclosures among the preliminary 553 sales in June (20 percent). Compare that to 28 percent in May and 30 percent last June. In both Leesburg and western Loudoun the share fell below 20 percent and in the historically troubled eastern
Loudoun portion of the county, the share has declined steadily over the last five consecutive months from 44.8 percent in January to 21.3 percent in June. The average days on market indicator continued to tumble in June reaching the lowest point (53 days) since September 2010. With a dearth of active listings (almost 200 fewer than at this time last year), the month’s supply of available inventory was only 2.8 months in June. The market is considered to be in equilibrium (enough supply to meet demand) when the available inventory is four to five months. The June inventory level indicates that Loudoun is currently significantly undersupplied. This is especially evident in eastern Loudoun with only a 2.1 month’s supply. Leesburg is dangerously low as well at 2.9 months. Western Loudoun posted its lowest inventory level this year in June at 6.4 months. Representing 59 percent of total sales in June, 328 detached homes sold at an average close price of $543,936. Townhomes accounted for 36 percent of all sales with an average close price of $314,828 and the average close price was $188,661 for the 28 condominiums (5 percent) that sold last month. Total sales were unexpectedly robust in June but were still not strong enough to make up for the slow sales plaguing Loudoun during most of 2011. However, Loudoun’s supply deficiency and declining distressed sales have contributed to an ever-improving median sales price. [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.]
JK Adds Petersen To Management Team
Dulles-based JK Moving Services has hired former Bekins Van Line CEO Michael Petersen to lead its fast-growing residential service operation as vice president and general manager of its Household Goods Division. The company recently announced a planned 100,000-square-foot expansion to its already extensive Loudoun County campus, encompassing 400,000 square feet across four buildings. In addition, it will be adding 130 new employees to its current base of 550. Petersen will be responsible for managing all aspects of the residential division. Leading the oper-
ations, accounting, administrative and sales teams, he will assume full accountability for the division’s success and management. He will oversee a variety of lines of business including government, international, move management and residential moving and storage. During his term as president and CEO of Bekins Van Lines, Petersen recapitalized the company. Prior to his work at Bekins, he was vice president of Operations for New World Van Lines, as well as vice president/general manager of the Household Goods Division at Allied Van Lines.
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