Economic Development

Economic Development : SS ine S u b regional Vision, global impact

Summit pointe is the newest large-scale, mixed-use community in the dynamic Greenbrier business district of chesapeake

CoUrtEsy oF City oF CHEsaPEaKE

the Hampton roads region is a great place to live, work and play. And, it’s only going to get better. “With proper foresight, continuous planning and dynamic economic development, Hampton roads will be recognized internationally as a region fueled by innovation, intellectual and Human capital, infrastructure and a Sense of place.”

a group of regional organizations and community leaders collaborated together to develop “Vision Hampton roads,” a regional plan with a five year horizon. this “Vision” employs strategies and actions which leverage regional strengths to diversify and grow the economy, positioning Hampton roads as a leader in the global economy of today and tomorrow. in economic development today, it’s important to address who and what is Hampton roads as a region; who lives here and why; what is the region’s business identity; and how entrepreneurs, creativity and innovation are attracted. regions that thrive in the “new economy” will be those truly educating their workforce, cultivating innovation, investing in infrastructure and creating quality places, like Hampton roads.

“Vision” planning has placed Hampton roads on a path to regional transformation by embedding a working process as we think, live and act regionally. after “Vision Hampton roads” was developed, the Hampton roads Partnership created “innovate! Hampton roads” as a component of “Vision” that looks to promote local business and tech-based development in the area. (http://innovatehamptonroads.com/) the Virginia gazette reported that York County is working forward with a planned mixed-use development moved a step forward with a $6.45 million property sale near Victory Boulevard at the York-newport news line. Commonwealth green plans include up to 384 apartments, 96 townhomes and four commercial buildings, according to the developer. Condominiums are planned above three of the commercial buildings. about 50 of the apartments would be in newport news. in addition, the Hampton roads alliance annouced that Cushman & Wakefield/thalhimer has sold the Palace Plaza strip shopping center just off Bypass road in upper York. Polyzos Family investments, llC purchased the approximately 22,600 square-foot retail center for $610,000. the previous owner was C-111 asset Management. according to York County’s property information website, the center is assessed at just over $1 million. it was sold to C-111 asset Management for $680,000.

located in the dynamic greenbrier business community of Chesapeake, Va, summit Pointe is the newest large-scale, mixed-use community centrally located within Coastal Virginia. summit Pointe has already become a premier office location with the recent completion of the 510,000-square-foot, high-rise office tower for Dollar tree, inc (nasDaQ: Dltr) in Phase one. representing a projected investment of over $300 million in multiple phases, Phase two emphasizes a new form of urban living, workplace solutions, dining, entertainment venues and shopping options. the construction in Phase two began in June 2019, with the first living spaces delivered in august 2020 and the first retail and office spaces delivered in october 2020.

STRATEGIC LOCATION, GLOBAL SIGNIfICANCE

the first rule of thumb for any economic development is location, location, location.

Hampton roads, the region, is located in the southeastern coastal tidewater of Virginia in the heart of the Mid atlantic. it is a region that depends on a maritime-

rich geography including all the benefits that come with it, such as commerce derived at its ports, tourism and real estate drawn to its beaches, and the waters that allow it to be one of the most concentrated naval strongholds on the planet.

Hampton roads, the harbor, is formed by the confluence of the James, nansemond and Elizabeth rivers and flows into the Chesapeake Bay whose watershed covers 64,000 square miles and all or part of six states and Washington, DC. as one of the world’s biggest and deepest natural harbors, the largest in north america, Hampton roads is home to the world’s largest naval base at norfolk and the Port of Virginia, third largest behind Port of new York and the Port of savannah. it is one of the busiest and fastest growing commercial ports on the U.s. East Coast with products popular the world over from smithfield Hams to suffolk Peanuts to Chesapeake Bay crabs. since the English settlers arrived in the early 1600s, Hampton roads has been an enviable strategic stronghold. the region’s land area covers approximately 2,907 square miles and includes an extensive system of waterways including the intra-coastal Waterway and enjoys a temperate climate guaranteeing an ice-free harbor. the central location of Hampton roads’ is within 750 miles of three-fourths of the nation’s population and six of the ten largest U.s. population centers. the Virginia Beach-norfolk-newport news, Va-nC Metropolitan statistical area (Hampton roads Msa) is made up of fifteen cities and counties, making it the seventh largest Msa in the southeast U.s., the second largest between Washington, DC and atlanta and the largest coastal Msa between new York and Miami in the Eastern U.s. 21 the Virginia Beach-norfolk-newport news, Va Msa ranks 37th out of the nation’s 366 Msa’s.22

Hampton roads is one of america’s most popular vacation spots, and boasts something for everyone. it has an expansive 2,600 miles of shorelines, world-renowned museums and cultural opportunities such as the Virginia opera, Virginia international arts Festival, and Virginia symphony, sports organizations and venues, shopping malls, historic cities and towns, amusement parks and state and national parks. Hampton roads’ climate is enjoyed by outdoor enthusiasts; recreational activities include boating, fishing, camping, biking, and tennis throughout the hundreds of local parks and campgrounds. the region’s safe harbors, proximity to the ocean and rich history have worked together to form today’s Hampton roads.

INDUSTRy DIVERSITy, LEVERAGING ASSETS

the region’s largest employers represent industry sectors like shipbuilding, health care, education, tourism, banking, insurance, manufacturing, telecommunications, and transportation and include: public school systems, colleges and uni-versities, sentara Healthcare, riverside Health system, Bon secours Hampton roads Health system, Colonial Williams-burg, Chesapeake regional Medical Center, saiC, Measurement specialties and gEiCo. 38

Hampton roads is an international gateway with a large presence of foreign firms dominated by germany, Japan and UK, including Canon, BaE systems norfolk ship repair, stihl, HsBC-north america, Maersk line limited, CMa CgM north america, Zim-american, Ferguson Enterprises/Wolseley na and anheuser-Busch/inBev.38

Fortune 1000 firms with headquarters or a significant presence in the region include amerigroup, Dollar tree, smithfield Foods, and the largest private employer in Virginia, Huntington ingalls industries, inc.38 amazon.com inc. will build two operations facilities in Hampton »

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roads, creating an expected 1,500 jobs. Both facilities are anticipated to open in 2021.the first facility is a multi-story robotics fulfillment center in suffolk, which will create 1,000 jobs. the second is a 650,000-square-foot processing center in Chesapeake, which will create 500 jobs. the region’s largest financial institutions include Bank of america, Wells Fargo, suntrust and BB&t. several regional banks are also strong financial assets in Hampton roads, the largest of which is towneBank.38 the economic structure of the region is characterized by the strong presence of the military, followed by real estate and rental leasing, manufacturing and shipbuilding, construction, tourism and recreation, and retail. over the past decade, Hampton roads’ population has grown at an annualized rate of 0.64%, slow compared to the nation. since 2001, economic growth in the region has averaged 6.7% annually (3.3% in per capita dollars). Much of this growth is the result of increased Department of Defense (DoD) spending within the region.5

fEDERAL/mILITARy SECTOR

Hampton roads has one of the largest concentrations of military personnel, second only to Washington DC, hence the regional moniker, “Pentagon south.” Hampton roads hosts all five military services with both operating forces and major command headquarters. this includes the only nato command in north america, and the U.s. Joint Forces Command (one of DoD’s ten combatant commands charged with transforming U.s. military capabilities). increases in military pay and federal contracts have significantly contributed to the region’s economic growth. and defense spending continues to cushion the region in times of economic downturn.22 thirty of the 100 largest defense firms in the world have a presence in Hampton roads.

Hampton roads is also the home to the world’s largest concentration of U.s. Coast guard assets. additionally, thirteen Federal departments, administrations, and agencies are represented in the Hampton roads region: Departments of Veterans affairs, agriculture, Commerce, Energy, Homeland security, interior, Justice, labor, and transportation.

HELPfUL WEBSITES

City of Hampton

www.VisitHampton.com

fort monroe Authority

www.fmauthority.com

Franklin & Southampton County Chamber of Commerce

www.FsaChamber.com

Gloucester County Chamber of Commerce

www.gloucesterVaChamber.org

Greater Williamsburg Chamber & Tourism Alliance

www.WilliamsburgCC.com

Hampton Roads Chamber of Commerce

www.HamptonroadsChamber.com

Hampton Roads Alliance

www.Hamptonroadsalliance.com

Hampton Roads military & federal facilities Alliance

www.HrMFFa.org

Hampton Roads Performs

www.HamptonroadsPerforms.org

Hampton Roads Planning District Commission

www.hrpdcva.org

Hampton Roads Regional Blog

smartregion.org is no longer available

Isle of Wight-SmithfieldWindsor Chamber of Commerce

http://www.hrpdcva.gov/

ODU Center for Real Estate & Economic Development

www.BPa.oDU.edu/creed/

Opportunity, Inc.

www.opp-inc.org

Peninsula Council for Workforce Development

www.PCFWD.org

Virginia Peninsula Chamber of Commerce

www.VPCC.org

York County Chamber of Commerce

www.YorkCountyChamberVa.org

PORT/mARITImE SECTOR

in 2016, Virginia ports generated 530,800 jobs, $27.4 billion in wages, $88.4 billion in spending and $2.7 billion in state and local taxes. (10.1 percent of Virginia’s gross state product) (http://www. suffolknewsherald.com/2017/01/28/virginia-ports-a-driving-economic-force/) naturally safe harbors in Hampton roads have brought commerce and trade to the Hampton roads region for centuries. Deepwater access that can accommodate today’s -and tomorrow’s- supertankers, a strategic Mid-atlantic location and a streamlined infrastructure network have helped to make Hampton roads a premier international port. over 3,000 foreign and domestic vessels calling annually. in addition to the Port of Virginia, Hampton roads’ economy is built on many port-related activities including commercial, military land-based support facilities and inland transportation, ship repair, shipbuilding, cargo terminals, cargo and cruise ships, maritime insurance and legal services, shipping line offices, mega yacht repair and maritime construction.

Hampton roads is well poised to be the dominant port on the East Coast. the 2040 Virginia Port authority Master Plan is driven by the creation of 600 acres of land and opening of Craney island Marine terminal, improvements at norfolk international terminals and Portsmouth Marine terminals, development at the aPM terminal in Portsmouth and enhanced intermodal rail service.

TOURISm/ ARTS & CULTURE SECTOR

Hampton roads is a popular vacation destination for millions of visitors annually. Each city has its own unique attractions, events and activities. From the surf and sand of the longest pleasure beach in the world at Virginia Beach, to the Historic triangle of Jamestown, Yorktown and Williamsburg, to the convention centers spread throughout the region, Hampton roads is an established multi-faceted tourist destination. the leisure and Hospitality industry employs over 80,000 people in Hampton roads. in addition to the hoteliers who depend on tourists to fill their rooms, tourism brings new money

to restaurants, retail establishments and government coffers.25 tourism contributes to quality of life through the influx of tax revenue, creation of jobs and improved services and attractions that add to the vibrancy of life in Hampton roads. For businesses in Hampton roads this means improved recruiting and retention and greater quality of life for those employees.26 arts & Culture in Hampton roads serve as a significant component of the tourism industry. the arts strengthen and educate communities, lift spirits and build a better quality of life for everyone. as a billion dollar industry in Virginia, arts and cultural organizations create millions of dollars in revenues for area businesses, attract out-of-state tourism spending, generate millions of dollars in personal income for Hampton roads’ workforce and entrepreneurs and create thousands of jobs for residents in the region.27

EmPLOymENT

the Virginian-Pilot reported that jobs continue to increase at a slow, but steady pace. Port of Virginia is responsible for nearly 375,000 jobs and its economic impact is 60.3 billion a year. navy Cyber Command in suffolk brought 700 military, civilian and contracting jobs to the area. (http://www. dailypress.com/news/military/dp-nwsnavidfor-established-20150128-story. html) Chesapeake will add new jobs with Xerox and the sumitomo Machinery Corp. of america. norfolk’s Waterside live, aECoM, Bauer Compressors, inc., and american airlines will top the list of companies adding jobs. green Mountain did build a facility in the shirley t. Holland intermodal Park. Cost Plus World Market and safeco Products are also there. (http://www.dailypress.com/ news/isle-of-wight-county/dp-nws-iwintermodal-park-contract-developer20170208-story.html). Portsmouth will make gains with Kroger and suffolk with the shenzhen superwatt Power technology Co. Virginia Beach rounds out the list with loanCare, Medical Facilities of america, amerigroup Corp. (expanding to norfolk,) iMs gear (opening a new 112,000 square foot facility from state funds and grants), labels Unlimited, and green Flash Brewing Company. iMs gear opened in Virginia Beach and employs 220 workers (as of 2016). (http://www.13newsnow.com/ news/local/mycity/virginia-beach/ made-in-america-and-made-in-virginiabeach-1/124824819) in Feb. 2017, sanjo Corte Fino selected Virginia Beach as the site of its 24,000-square-foot north american manufacturing headquarters. (http:// pilotonline.com/inside-business/news/ commercial-real-estate/the-millergroup-is-building-sanjo-corte-fino-svirginia/article_f7e3313c-e035-5993bc4b-c80584d16d49.html) newport news shipyard voted in favor of a 52-month contract through July 9, 2017, with Huntington ingalls industries inc., the parent company of newport news shipbuilding. the apprentice school,” a six-acre, $70 million venture for newport news shipbuilding was reaccredited until 2022 (http:// pilotonline.com/inside-business/ newport-news-shipbuilding-apprenticeschool-reaccredited/article_574658135037-5319-9dc2-4024b855e642.html) in addition, largest recent growth in the Hampton roads region was in the healthcare and social assistance sectors, followed by leisure and hospitality, scientific and technical sciences, retail trade, and finally federal and manufacturing, as reported by Hampton roads Planning and District Commission.

mEASURING SUCCESS, fOLLOW THE NUmBERS

Business, civic and government leaders in the region use the web-based Hampton roads Performs as their resource for data that shows how the region is performing on key quality of life indicators. open to full public access, these quality of life indicators answer the question, “How is the Hampton roads region Doing?” and the results are used to compare Hampton roads to other regions.

Workforce Quality: over 27% of residents hold at least a Bachelor’s degree and the number of community college, high school career and technical education awards is increasing.1 business startups: the rate of startups, a measure of entrepreneurship, remains high compared to previous years.29 personal income: among peer metro areas, per capita income is growing fastest in the Hampton roads area and faster than the rate for the U.s. as a whole.30 a strong economy is characterized by prosperity reflected in improving standards of living. unemployment: Unemployment was 4.3% as of December 2016, but thanks to a strong military presence, still well under the national average which was 4.9% as of octorber 2016. (https:// data.virginialmi.com/vosnet/lmi/area/ areasummary.aspx?enc=sgfja5goXyjl8J 88h1rJlr2asmalquX2CZY58u9nja2srw EukomaKyimaz1Jyxna) •

the table below shows the distribution of industries in Hampton roads pdc, virginia for the 3rd quarter, 2016.

ESTImATED EmPLOymENT By INDUSTRy SECTOR

Rank Industry Sector Employees

1 total, all industries 2 Health care and social assistance 3 retail trade (44 & 45) 4 accommodation and Food services 5 manufacturing (31-33) 6 education services 736,207 104,184 91,372 80,336 62,325 62,249

7 public administration

54,125 8 professional scientific & technical svc 49,779 9 admin., support, Waste mgmt, remediation 43,943 10 construction 36,433

Virginia Employment Commission, Quarterly Census of Employment and Wages