2018/2019 ANNUAL REPORT

City of Richmond Chesterfield Hanover County Henrico County Board of Directors Chair Vice Chair Buck Stinson Leslie A.T. Haley Senior Vice President, Chair, U.S. Card Partnerships Chesterfield County Capital One Board of Supervisors General Counsel Chris Hilbert John D. O’Neill Jr. 2018 President, Partner, City of Richmond Hunton Andrews Kurth City Council Angela Kelly-Wiecek Salvatore Mancuso Member, Senior Vice President – Hanover County Finance and Procurement Board of Supervisors Altria Group, Inc. Dr. Cynthia I. Newbille Patricia S. O’Bannon 2019 President, Member, City of Richmond Henrico County City Council Board of Supervisors Charlene Whitfield Bobby Ukrop VP - Distribution Operations, President & CEO Power Delivery Group, Ukrop’s Homestyle Foods Dominion Energy

ALTERNATES Selena Cuffee-Glenn Dr. Joseph P. Casey CAO, County Administrator, City of Richmond Chesterfield County

Rhu Harris John Vithoulkas Administrator, County Manager, Hanover County Henrico County

EX-OFFICIO Phillip Avant Central Va. Market President, Commercial Banking Team Leader SunTrust Bank

Cover photos: Skyline photo by Michael Ivey; Carmax, Sabra Dipping, Vitamin Shoppe and RTS Labs courtesy of Economic Development Partnership LETTER TO INVESTORS

This was a year of change and transition. 150 site location consultants and c-suite VISION The departure of former CEO Barry Matherly executives (both U.S. and internationally was a surprise but the GRP team pressed based). The results? While nearly all had To aggressively generate on with a business-as-usual mantra. They heard of our region, they knew very little worked to aggressively market Greater about our strengths and weaknesses, economic opportunities Richmond to companies around the world meaning that GRP has not been making it as the top spot to locate their operations. to the list of consideration for projects at that create quality jobs It was a year for both our public sector and the rate we’d like. private sector to work closer together as n Therefore, GRP worked to amp our for all the citizens of the we worked to recruit new leadership to the regional profile by hosting reporters organization. And despite the changes, the from Inc magazine, Worth magazine and region and increase the team exceeded goals and had many great a group of logistics reporters on media successes, including: familiarization tours that resulted in earned tax base for needed n The team spent 179 travel days on the media coverage. The team also worked community services. road on 46 missions – both domestic and with highly specialized media outlets to international – meeting with companies place targeted marketing messages about considering potentially expanding or the region. relocating to our region and resulting in n Thirteen companies announced projects 223 newly-identified prospects. throughout each of the four localities n GRP recruited and hosted 20+ site with an impact of up to 1,829 jobs, $130 MISSION selection consultants in the region for the million in wages, $321.5 million in capital Area Development Consultants Forum investment and resulting in $214 million in STATEMENT Outfront Workshop. It went over so well, wealth creation for the region. GRP, local partners and statewide partners On behalf of the entire Board of Directors, I To globally market the at Virginia Economic Development am proud of the work the team accomplished Partnership (VEDP) were able to convince this year and am thrilled in the direction the Area Development to bring the event back organization is heading under the leadership to RVA next June with 20+ new consultants of Lara Fritts, our new CEO. I look forward to as a preferred business visiting the region. working to continue to grow our region and location, generate n The team conducted third-party, increase prosperity for all those who call this quantitative perception research with region home. domestic and international Sincerely, prospects, and support Buck Stinson the localities’ business Senior Vice President, U.S. Card Partnerships for Capital One retention efforts. FY 18-19 Board Chair, Greater Richmond Partnership

3 MARKETING THE REGION In order to aggressively generate economic opportunities for Greater Richmond, the first step is to market the area globally.

GRP hosted business journalists to the Richmond Region which included Worth magazine Editor Richard Bradley in November. In September, Inc. contributor Jeff Barrett visited with area startups and entrepreneurs. In May, we assisted in hosting a group of logistics-specific journalists thanks to our partners at VEDP.

SHORTSEA CRANE OPERATIONS

LIFTING A PORT TO PROSPERITY GRP’s out-of- PROSPERITY market media engagement A Liebherr LHM 420 Crane is at the heart of a rapidly expanding shortsea shipping success story. Reliability is the key for a port resulted in that’s turned the corner, with nowhere to go but ‘up.’

By Joseph Keefe ay back in January of 1996, I moved to positive earned Richmond, Virginia from Houston, Texas. W Still very much in the maritime business huge supporter of shortsea shipping, put the muscle of as a cargo surveyor and ship expeditor, the Port of those state and federal government positions to work, Richmond intrigued me, every time I drove past it on advancing the role of inland waterways in the nation’s I-95. Eventually, I got a tour of the struggling port, intermodal equation. media placement courtesy of then port director and retired USCG Captain Marty Moynihan. Moynihan, an energetic Humble Beginnings, Great Potential executive, was keen to expand the port’s horizons. In September 2006, when Connaughton assumed Back then, as much as half of the port’s meager business the helm of the Maritime Administration, he focused for the Richmond was tobacco shipping to and from Philip Morris, just on developing the foundation for a more efficient across the street. Still, Moynihan persisted, and the port marine highway system. And, Richmond was, for this – later helped by Sean Connaughton, Virginia’s Secretary Commonwealth resident, the perfect place to start. It was of Transportation from 2010 until 2014, and prior to slow going and the initial efforts to get a container-on- Region. that, the U.S. Maritime Administrator from 2006 until barge service up and running from the early 2009 – slowly came to life. Connaughton, then a area was very much a ‘chicken and egg’ proposition. Shippers were unwilling to commit to regular freight volumes and tug and barge operators on the route also Reprinted with permission from the June 2019 edition of Marine News - www.marinelink.com

EDITION 02 | 2019 GRP has an active social media presence including both organic and paid efforts. Social media generates traffic to the GRP website and has resulted in project leads.

Advertising mainly focused on content marketing, however print and website banner placements were included in buying packages.

4 BUSINESS ATTRACTION As part of a long-term strategy, the Greater all within the seven key target sectors. Richmond Partnership pursued businesses, International outreach took a similar approach targeted industries and geographic markets. but also added in building stronger relations The business development team went on 46 with embassies and other international sales missions – 36 across the country and agencies for leads, as well as engaging 10 international trips – adding up to a total international companies already within of 179 days on the road prospecting for new greater Richmond for prospecting. businesses to locate in the region. During the Overall, more than two-thirds of prospects course of the year, the team generated 223 throughout the year were international LEAD SOURCE newly-identified prospects and hosted 64 companies with domestic-based companies n 80% GRP Direct different prospects in the region. making up less than one-third. The efforts of n 19% Third Party/other On the domestic side, the business the Greater Richmond Partnership resulted sources (state, local, development team utilized an integrated in 80 percent of the leads coming directly to brokers, partners) outreach program to identify and qualify GRP and 19 percent coming from third party/ targets through tradeshows, conferences other sources (state, local, brokers, partners). and one-on-one meetings with companies 223 ON THE ROAD Newly-identified Marketing missions are a great way for our staff to engage directly with company prospects prospects and site location professionals. The majority of these missions include local economic development partners from the City of Richmond and the counties of Chesterfield, Hanover and Henrico.

179 36 10 total travel days domestic missions/events international missions

PROSPECT ORIGIN n 30% Domestic n 70% International 64 Logimat trade Prospect visits Dallas, Texas Charlotte, N.C. show to the region

KEY TARGET SECTORS

Corporate Information Finance & Advanced Food & BioScience Supply Chain Services Technology Insurance Manufacturing Beverage

5 SUCCESSES

ERNI CASCADES ANORD HALIO DX ERNI Electronics, Cascades, a Canadian MARDIX HalioDx, an immuno- a Swiss-based manufacturer leader in the recovery and Anord Mardix, a leading oncology cancer diagnostic of electrical connectors, manufacturing of green provider of critical power company, opened its first will invest $25 million packaging and paper tissue infrastructure to the global North American facility at the to establish a new products, purchased a data center industry, will Virginia Bio+Tech Park in the 80,000-square-foot facility former paper mill in Hanover invest $907,500 to establish City of Richmond. HalioDx in Chesterfield County. The County for $34.2 million and its second U.S. operation in leased 9,000 square feet in new state-of-the-art facility plans to spend between Henrico County. The new the BioTech 8 building and (also the company’s U.S. $275 to $300 million to upfit facility will create more than plans to invest $1 million and headquarters) will create the equipment. The project 50 jobs. create 20 jobs. 105 jobs over five years. will create 140 jobs.

Company Industry Cluster Company Description Direct Jobs Locality Capital Investment Anord Mardix Advanced Manufacturing Switchgear and switchboard manufacturing 126 Henrico $907,500 Cascades Advanced Manufacturing Currogated board manufacturing 140 Hanover $275,010,000 Diamond Hill Plywood Co. Supply Chain Lumber merchant wholesaler 20 Richmond $4,665,000 ERNI Electronics Advanced Manufacturing Electronic equipment manufacturing 105 Chesterfield $25,000,000 JASA Packaging Systems Advanced Manufacturing Machinery manufacturing 5 Chesterfield $250,000 Lumber Liquidators Corporate Services Building material dealers 200 Henrico $5,000,000 Kumbaya Space Corporate Services Lessors of nonresidential buildings 5 Richmond $1,500,000 Rodder’s Journal Corporate Services Periodical publisher 3 Hanover n/a SSUPP Foods Food & Beverage Organic dips and spreads manufacturer 10 Richmond $30,000 Victoria’s Kitchen LLC Food & Beverage Technical and trade school 2 Richmond $150,000 W.D.M. Ltd. Corporate Services Engineering services 3 Richmond $1,000,000 Zoocha Information Technology Creative agency 5 Richmond $10,000 Note: Due to company confidentiality, the above is a sample of the companies announced during the 2018-2019 fiscal year. Jobs listed are as disclosed by the company.

6 EXISTING BUSINESS

Business First Greater Richmond is a The Business First team, made up by both program thats supports the local economic volunteers and economic development development offices in the City of Richmond professionals, uses a variety of outreach and the counties of Chesterfield, Hanover and methods to connect with business leaders. Henrico. With the understanding that local During FY18-19, the team completed hundreds businesses are the backbone of any economy of face-to-face meetings, giving business and that their success drives innovation, job leaders a chance to share their experiences. creation and regional prosperity, the Business Through an aggressive marketing outreach First program is dedicated to connecting program, thousands of local businesses were existing businesses to the resources and targeted by the program. support they need to thrive.

Above, along with Global Situation Room, GRP served as sponsor and co-organizer of the Entrepreneurship Export Exchange (E3) conference. Far left, GRP’s Grace Festa attended the World Conference on World Trade. Left, Olga Molnar speaks at a Small Business Administration conference on exporting.

MetroBlack & White Richmond version: Exports Initiative (MREI) is a companies that may benefit from the export program that helps Richmond MSA businesses program. export their goods and services through We identified and successfully recruited seven special educational and networking programs, companies to attend the Virginia Conference grants and scholarships for export-related on World Trade. MREI was also involved in activities, and by connecting businesses with organizing networking and training events, the resources they need to go global. Grayscale version: including Lunch+Learn programs, a Certified MREI is a joint effort of the Greater Richmond Global Business Professional workshop, and Partnership (GRP) and Virginia’s Gateway an Intellectual Property Seminar in partnership Region (VGR). The initiative is funded by with International Trade Administration. Virginia Economic Development Partnership’s The final event of the year was International Trade division. Entrepreneurship Export Exchange (E3) In FY18-19, GRP’s MREI team focused on Global Conference that took place in June at outreachReverse version: by conducting an Export Call the University of Richmond and was attended campaign of 300 local businesses in order by the local business community as well as to determine potential exporters and identify foreign dignitaries and national media.

7 ECONOMIC IMPACT When the Greater Richmond Partnership assists a company in opening a new facility in the Richmond Region, we see an economic ripple effect throughout our community: the company purchases or leases real estate; the company hires employees or vendors to perform services that they choose not to do on their own (such as maintenance or security); the company purchases local goods and utilities; the employees spend their wages on housing, transportation, groceries, etc.

13 $214m $130m projects in wealth in wages creation

$321.5m 1,829 capital investment jobs

When a company decides to locate a new or expanded purchase its raw materials, its goods and services from local operation in a region, they typically commit to creating the businesses and the local businesses where the company jobs over a three year time period. Therefore, the impact and its employees spend their money will continue to of the jobs, capital investment and payroll is spread evenly pay their employees and restock their shelves. So the over a three year timeframe. benefits of a new or expanded company in the Richmond However, the wages paid to its employees continue year- region continue, year-after-year, long after the publicized after-year, as long as the company keeps its Richmond announcement. area operation open. The company will also continue to

8 REGIONAL SNAPSHOT

674,492 680,490 660,302 667,489 631,576 640,248 48,900 net new jobs in the Richmond MSA 2014 2015 2016 2017 2018 2019 between 2014-2019 $35.2b $3.2b Total wages paid in the Increase in total wages paid in the Richmond MSA in 2018 Richmond MSA between 2015-2018

Richmond International Airport passenger traffic 11.5% increase for FY2019

Increase in the number of 106% containers passing through Richmond’s GDP growth compared to the the Richmond Marine Terminal average increase for all between 2017 and 2018 23% 382 U.S. metros 231 22% 26 Net new people Share of relocations Average age of locate in to the Richmond MSA new residents the Richmond MSA from Washington, D.C. moving to the $15.2b each week and New York Richmond MSA Growth in the Richmond MSA’s gross domestic product between 2012-2017

Sources: Chmura Economics and Analytics, JobsEQ, Sept. 2019; U.S. Census Bureau Community Survey; Port of Virginia Annual Report 2018; Richmond International Airport website; U.S. Bureau of Economic Analysis

9 PROJECT COLLABORATION Economic development is a team sport. As such, the Greater The success of the Greater Richmond Partnership is Richmond Partnership works hand-in-hand with each of the attributed to our public and private sector partners as well local economic development offices in the City of Richmond as our allies throughout the region. Throughout the year, and the counties of Chesterfield, Hanover and Henrico, the allies including those professionals in corporate real estate, Virginia Economic Development Partnership (VEDP), local insurance, education and workforce as well as lawyers and businesses and allies to accomplish our mission of attracting bankers provide leads to GRP that result in projects, jobs and businesses to the area. capital investment for the region.

Greater Richmond Partnership

Real Estate/ City of Development Richmond

Legal/ Chesterfield Accounting Local County Economic Economic Development Prospect Development Bank/ Allies O ces Hanover Insurance County

Education/ Henrico Training County Virginia Economic Development Partnership

STATE OF THE PORT | APRIL 2019 RICHMOND MFG TOWN HALL | APRIL 2019 GRP and VEDP GRP’s Olga Molnar staff joined Port of attended the Virginia Virginia CEO John Manufacturers Reinhart during the Association’s Virginia Maritime event with Church Association’s State of & Dwight’s Andy the Port. Glowatsky and VMA’s Brett Vassey and Kimberly Noonan.

SISTER CITY EVENT | AUG. 2018 SECRETARY BALL TOUR | AUG. 2018 GRP’s Grace Regional partners Festa and Virginia led Virginia Asian Chamber of Secretary of Commerce Executive Commerce and Director My Lan Trade Brian Ball Tran welcome on a familiarization representatives from tour of the Greater the Richmond sister Richmond area, city Zhengzhou, culminating in a China. reception.

10 The Greater Richmond Partnership works hand-in-hand with provide a welcoming food and beverage tour of the region a variety of economic development allies for lead generation, thanks to Barton Malow and Transportation. The especially site location consultants (also called site selectors) event went over so well, GRP, local partners and the Virginia and commercial real estate brokers. Economic Development Partnership (VEDP) were able to Site location consultants are involved in roughly half of all convince the event organizer to bring the event back in June economic development projects. Each year, GRP partners 2020 with 20+ more consultants. with the Greater Richmond Association for Commercial Real GRP remained involved in the commercial real estate Estate (GRACRE) to recruit consultants to visit the region on community participating in boards for GRACRE and familiarization tours that highlight the region’s locational Commercial Real Estate Women (CREW) as well as individual advantages, talent pipeline and workforce programs. meetings with brokers and brokerage offices throughout the In addition, this year, GRP recruited and hosted the Area year. In addition, we hosted a brokers breakfast in May where Development Consultants Forum Outfront Workshop event consultant Fatima Halimi discussed her firm’s role in bring the in March. More than 20 consultants visited the region for the Cascades project to Hanover County. event and GRP and our local partners had an opportunity to

AREA DEVELOPMENT CONSULTANTS FORUM OUTFRONT WORKSHOP | MARCH 2019

SITE SELECTOR VISITS

BROKERS BREAKFAST | MAY 2019

11 INVESTOR ENGAGEMENT Four Investor Engagement events were held during FY 18-19, including the Annual Meeting and three Investor Forums, which explored economic development strategies, challenges and outcomes.

ANNUAL MEETING | AUG. 2018 The GRP celebrated 40 years of regional collaboration at its 23rd annual meeting and investors reception. Special guests included Sen. Henry Marsh III, who was a founding board member of the Metro Economic Development Council (MEDC).

INVESTOR FORUM | ‘HOW DO WE STACK UP AGAINST THE COMPETITION?’ | NOV. 2018 The Partnership hosted a unique discussion on how the Richmond Region’s perception compares to peer cities around the nation. The expert panel included special guest Richard Bradley, editor-in-chief and chief content officer for Worth magazine; John Martin, CEO & Managing Partner of SIR; and moderator Douglas Lamb, Partner at McGuireWoods.

INVESTOR FORUM | ‘HOW LOCAL JURISDICTIONS WORK TOGETHER’ | FEB. 2019 Representatives from GRP’s local partners discussed what it takes to market Greater Richmond and what it means for the entire region to collaborate on business attraction. Moderator included Pat Gottschalk, Partner of Williams Mullen, panelists included (l-r) Toney Hall of Henrico, Linwood Thomas of Hanover, Garrett Hart of Chesterfield and Jane Ferrara of the City of Richmond.

INVESTOR FORUM | ‘WHAT IT TAKES TO ENTER THE U.S. MARKET’ | APRIL 2019 GRP offered an inside look at some of the common challenges and concerns international businesses face when looking to enter the U.S. market. The event featured Michael McKeon, Senior Economic Policy Advisor at Embassy of the Kingdom of The Netherlands in the U.S.; Harold Louw, Executive Director, Operations at ROI; and Catalina Valencia, Site Selection & Economic Development Consultant.

12 INTERNATIONAL DELEGATIONS More than two-thirds of GRP’s projects are international companies which tend to take a longer approach to decision- making. Therefore, relationship building is of critical importance in recruiting foreign direct investment to the region. Part of GRP’s international strategy is to both visit and host international delegations for these purposes.

UZBEKISTAN | AUG. 2018 KOSOVO | OCT. 2018

Regional and state representatives attended a Business GRP’s Olga Molnar welcomed a delegation from the Roundtable event featuring H.E. Javlon Vakhabov American Chamber of Commerce (AmCham) in Kosovo to (center), Ambassador Extraordinary and Plenipotentiary of the Richmond Region. The group was part of a U.S. Trade the Republic of Uzbekistan to the U.S. and Investment Mission.

UNITED KINGDOM | NOV. 2018 THE NETHERLANDS | APRIL 2019

Regional Envoy to the USA in the UK Parliament Mark Regional representatives visited Virginia Commonwealth Garnier discussed trade and investment opportunities University’s Center for Urban and Regional Analysis resulting from Brexit. Also attending were Gari Wyatt, CEO as part of a familiarization tour for the Embassy of the of Proseal America; Brett Vassey, President & CEO of the Kingdom of The Netherlands. Michael McKeon, Senior Virginia Manufacturers Association; and Sarah Clegg and Economic Policy Advisor, was the special guest. Stuart Baird of the UK Embassy.

INDONESIA | MAY 2019 JAPAN | JUNE 2019

GRP’s Grace Festa (right-center), along with Virginia GRP’s Vice President of Global Investment Olga Molnar Department of Agriculture and Consumer Services’ Keith speaks to a Japanese delegation which includes Sayaka Long and Virginia Economic Development Partnership Nakade, Second Secretary; Masahiko Uchino, Second International’s Lee Sanderson, welcomed representatives Secretary, Economic Section Attaché, Ministry of Economy, from the Indonesian Embassy in Washington, D.C. Trade and Industry. 13 TELLING OUR STORY GRP believes it is critical to engage investors, partners and for social media influencers known as RVA Agents in friends to help spread the word about this great region partnership with Venture Richmond’s Friday Cheers event. we call home. As such, we’ve spent the last year out and GRP also produced several new videos, including a look at about in the community speaking to the Venture Richmond the origins of the organization, interviews with consultants executive committee, the GRACRE Market Review and and companies and a new “sizzle” video of the region. For to VCU real estate classes. We held a special meetup more videos, visit www.YouTube.com/GRPVA.

SPEAKING ENGAGEMENTS

VCU Real Estate GRACRE Market Review Venture Richmond

VIDEO PRODUCTIONS

RVA AGENTS MEETUP | JUNE 2019

14 GRP INVESTORS PUBLIC SECTOR

REGIONAL LEADERSHIP CIRCLE

PREMIUM INVESTORS Anthem Blue Cross & Blue Shield GRACRE Universal Corporation Barton Malow Gumenick Properties Williams Mullen Richmond Association of REALTORS

STANDARD INVESTORS Accenture Draper Aden Associates Joyner Fine Properties PwC Anton Paar Ernst & Young JPMorgan Chase Reynolds Development Baskervill Executive Leadership Forum Kaufman & Canoles The Richmond Group USA C&F Bank Fifth Third Bank KBS S.W. Funk Industrial Contractors Capital Bank Froehling & Robertson Keiter Shamin Hotels Capstone Contracting Company Fulton Bank Kings Dominion Sheetz Challa Law Group GrayCo KPMG Southeast Industrial Equipment ChamberRVA Haley Automotive Group KVCF Solutions Sports Backers Cherry Bekaert Harris Williams & Co. Lansing Building Products St. Christopher’s School Chesterfield Chamber of Commerce Have Site Will Travel Liberty Property Trust Swedish Match Chmura Economics & Analytics HHHunt Lingerfelt Commonwealth Partners ThompsonMcMullan City Central Hirschler Long & Foster Timmons Collegiate School Hourigan Luck Stone Corporation TowneBank Richmond ColonialWebb ITAC Marsh & McLennan Agency Virginia Air Distributors Columbia Gas of Virginia James River Insurance Co. McCandlish Holton Virginia Credit Union Commonwealth Commercial James River Transportation The Monument Companies Whiting-Turner Contracting Creative Jewett Automation Napier ERA Whitlock Cushman & Wakefield | Thalhimer Jewett Machine Manufacturing Patient First The Wilton Companies Dixon Hughes Goodman John Tyler Community College Porter Realty Co.

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The Greater Richmond Partnership is a 501(c)(3) nonprofit organization. A financial statement is available upon written request from the Office of Charitable and Regulatory Programs.