2020-2021 COMMUNITY PROFILE CHOOSE VIRGINIA BEACH VIRGINIA BEACH COMMUNITY PROFILE

Since its founding more than 50 years ago, Virginia Beach has quickly become known both domestically and internationally as a great place to live, work, and do business. This Community Profile is designed to provide residents and businesses, both existing and prospective, with an in-depth look at the City and all that it has to offer.

If you’d like more information, please visit us online at www.yesvirginiabeach.com or contact the Virginia Beach Department of Economic Development.

PUBLISHED BY Virginia Beach Department of Economic Development 4525 Main Street, Suite 700 Virginia Beach, VA 23462 757.385.6464

ECONOMIC DEVELOPMENT DIRECTOR Taylor Adams [email protected] TABLE OF CONTENTS VIRGINIA BEACH: POWERFUL FORCES AT WORK 4 The Metropolitan Area Demographics & Workforce INDUSTRY SNAPSHOT 8 Key Industry Sectors International Profile Small, Women and Minority-Owned Businesses (SWaM) Military Presence BUSINESS ENVIRONMENT 26 Cost of Doing Business: Taxes, Utility Rates, and Other Costs Transportation Infrastructure: Rail, Roads, and Air The Port of Virginia VIRGINIA BEACH: MORE THAN JUST A BEACH 34 Quality of Life Workforce Development & Education Industrial / Commercial Inventory Incentives Strategic Partners About Us: Virginia Beach Department of Economic Development 2020-2021 Community Profile | Virginia Beach Department of Economic Development

VIRGINIA BEACH: POWERFUL FORCES AT WORK

Virginia Beach is located in the southeastern corner of Virginia, along the shores of the Atlantic Ocean and the Chesapeake Bay. It is the most populous city in the Commonwealth of Virginia and the 42nd largest city in America. Among its strongest assets, the City boasts a skilled and educated workforce, low tax rates, a dynamic economy, and a strategic location in the Mid-Atlantic where domestic and international markets can be readily accessed through an extensive multi-modal transportation network.

VIRGINIA BEACH – NORFOLK MSA

MARYLAND

LAND 249 SQUARE MILES (645 square kilometers)

PORT OF VIRGINIA

WATER 61 SQUARE MILES (158 square kilometers) VIRGINIA BEACH

VIRGINIA SHORELINE NORTH 38 MILES CAROLINA (61 kilometers) Minneapolis Virginia Beach is Boston a 4-hour drive or Milwaukee Detroit a 45-minute flight New York Cleveland to Washington, D.C. Newark Omaha Chicago Pittsburgh Philadelphia Baltimore Cincinnati Washington, D.C. Kansas City St. Louis Louisville VIRGINIA BEACH

Raleigh Virginia Beach is a two-day’s drive of more Nashville than 60 percent of the Memphis U.S. population Atlanta

Dallas 500 Spherical Miles Jacksonville 804.5 Spherical Kilometers

Houston New Orleans Orlando

750 Spherical Miles 1,206.7 Spherical Kilometers Miami

1,000 Spherical Miles 1,809 Spherical Kilometers

THE METROPOLITAN AREA A STRATEGIC LOCATION

Officially theVirginia Beach-Norfolk-Newport News, VA-NC Metropolitan Statistical Area (MSA), but also known throughout the years as Tidwater, Hampton Roads, Coastal Virginia, or more recently the “757”, the greater Virginia Beach area is the 38th largest MSA in the United States. The region encompasses 16 cities and counties across southeastern Virginia and northeastern North Carolina with a population of 1.73 million people and a workforce of nearly 835,000.

The Virginia Beach MSA is situated near the middle of the Eastern Seaboard, providing businesses access to more than half of the total U.S. population within a 750-mile (1,200 km) radius.

page 5 2020-2021 Community Profile | Virginia Beach Department of Economic Development

DEMOGRAPHICS & WORKFORCE

Named the best large city to live in by Wallet Hub (2019), it’s no surprise that since 2009 Virginia Beach saw an increase in population size at 3.3 percent. Through a combination of career opportunities, high quality of life, and a cost of living below national average, Virginia Beach appeals to millennials and those entering the workforce.

POPULATION Sources: U.S. Census Bureau 2018 ACS, University of Virginia, Weldon Cooper Center Virginia Beach Virginia Beach MSA POPULATION 452,643 1,731,193 HOUSEHOLDS 172,183 654,475 MEDIAN AGE 36.5 36.3

WORKFORCE AGE BREAKDOWN Sources: U.S. Census Bureau 2018 ACS, Hampton Roads Chamber of CIVILIAN WORKFORCE DATA Commerce, SmartAsset.com (2019, 2018), Time Magazine (2017) Source: U.S. Census Bureau 2018 ACS Virginia Beach holds a substantial amount of youthful talent: Virginia Beach Virginia Beach MSA there was a 16 percent increase in millennials in Virginia Beach CIVILIAN WORKFORCE 228,484 833,316 from 2010 to 2015. The Virginia Beach MSA also consistently ranks as top 10 area where millennials are moving. EMPLOYED 218,886 792,191 Number Percent UNEMPLOYED 9,598 41,125 < 18 YEARS 99,439 22.1% UNEMPLOYMENT RATE 4.2% 4.9% 18 - 24 YEARS 41,697 9.3% ADDITIONAL WORKFORCE Source: 2018 Navy Region Mid-Atlantic Statistical Report 25-34 YEARS 74,610 16.6% Virginia Beach MSA 35 - 44 YEARS 59,414 13.2% MILITARY PERSONNEL 98,561 45 - 54 YEARS 55,363 12.3% CIVILIANS SERVING THE MILITARY 37,804 55 - 64 YEARS 55,815 12.4% 65+ YEARS 63,851 14.2% page 6 RACE & ETHNICITY1 HOUSEHOLD INCOME DISTRIBUTION Source: U.S. Census Bureau 2018 ACS Source: U.S. Census Bureau 2018 ACS Virginia Beach’s median household income is 24.4 percent higher than the national 2.0% – Other median, reflecting the City’s attractiveness for a highly educated, highly skilled workforce which is enhanced annually by thousands of military personnel and college or university 5.3% – Two or More Ethnicities graduates who enter the workforce. Virginia Beach Virginia Beach MSA United States 19.0% – African American MEDIAN HOUSEHOLD INCOME $77,059 $65,604 $61,937 AVERAGE HOUSEHOLD INCOME $98,295 $85,788 $87,864 < $25,000 13.9% 17.0% 19.6% $25K - $49,999 19.4% 20.7% 21.3% $50K - $74,999 19.2% 18.9% 17.4% 6.6% – Asian $75K - $99,999 15.5% 14.1% 12.6% $100K - $149,999 20.6% 16.5% 15.0% 0.3% – American Indian or Alaskan Native > $150,000 15.4% 12.7% 14.2% 0.1% – Native Hawaiian and Pacific Islander EDUCATIONAL ATTAINMENT 66.7% – White Source: U.S. Census Bureau 2018 ACS Virginia Beach has a highly-educated workforce. Over 47 percent of the City’s residents 1According to the U.S. Census Bureau, have a post-secondary degree compared with only 41 percent at the national level. The 18.5 percent of the Virginia Beach population diversity of skilled workers offers employers a wide array of talent available for jobs identifies as Hispanic or Latino regardless of race. throughout organizations from hourly/frontline work to management opportunities.

12.6% Graduate/Professional Degree 12.8% 14.4% 20.0% Bachelor’s Degree 20.3% 23.3% 8.6% Associate’s Degree 9.6% 9.7% 26.9% High School Diploma/GED 24.7% 20.8%

0% 5% 10% 15% 20% 25% 30%

United States Virginia Beach MSA Virginia Beach

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INDUSTRY SNAPSHOT

The business community in Virginia Beach is composed of a highly diverse collection of industries, including national and international corporate headquarters, high-powered and technologically-advanced manufacturers, billion-dollar defense contractors and locally- owned small businesses. Every company, big or small, makes a unique contribution to the City’s dynamic, growing economy.

MAJOR EMPLOYERS Source: Hoovers, 2019

COMPANY NAME TYPE OF BUSINESS CIVILIAN EMPLOYEES Naval Air Station Oceana/Dam Neck Annex Military Base (Civilians) 3,580 Joint Expeditionary Base Little Creek/Fort Story Military Base (Civilians) 3,373 Lockheed Martin Corporation Information Technology Services 2,279 STIHL Incorporated North American Headquartered Power Tool Manufacturer 1,892 Diamond Resorts International, Inc. Hotel Owner and Operator 1,700 GEICO General Insurance Company National Insurance Carrier 1,500 AMSEC LLC (Huntingdon Ingalls Industry) Shipbuilding and Repair 1,200 Sentara Princess Anne Hospital Medical and Surgical Services 1,100 Mancon, LLC Business Operations Consulting 900 City of Virginia Beach (Non-Permanent Staff) Public Safety 800 Thirty First Street, LLC Multi-Purpose Developer 800 Navy Exchange Service Command Military and Government Exchange Headquarters 800 The Christian Broadcasting Network, Inc. Radio and Television Broadcasting 700 Westminister-Canterbury On Chesapeake Bay Retirement Health Care 675 Virginian-Pilot Media Companies, LLC Multimedia Communications 650 Goldrush, LLC Business Service Provider 610 Alorica Customer Care, Inc. Business Service Provider 563 Wegmans Food Markets, Inc. Retail Grocer 546

page 8 KEY INDUSTRY SECTORS Sand and salt water is usually what comes to mind when thinking of Virginia Beach. In fact the City reflects a highly diverse collection of industries. Many are still surprised to ​learn that the resort city is home to about 23,000 acres of farmland, that agriculture is the City’s third largest industry, and that agriculture generates more than $124 million in economic impact annually.​

There are other industry sectors that are also pivotal to the growth of the local economy. These include (1) advanced manufacturing, (2) military and defense, (3) maritime and logistics, (4) office and retail, (5) cybersecurity and information technology, and in more recent years (6) offshore wind energy.

The Virginia Beach Department of Economic Development focuses its resources on these six business sectors in order to maximize its efforts in terms of marketing, business attraction and retention. Each one of these key industries are presented in more detail in the pages that follow.

page 9 2020-2021 Community Profile | Virginia Beach Department of Economic Development

ADVANCED MANUFACTURING

Virginia Beach’s strategic Mid-Atlantic location makes it ideally positioned for manufacturers looking to import, export or ship their goods both domestically and internationally. Below is a list of additional benefits that manufacturing companies enjoy when they choose Virginia Beach.

• Virginia Beach has eliminated its tax on machinery and tools • Numerous workforce development programs are in place to assist manufacturers in recruiting and training employees • Manufacturers’ inventory is exempt from tax • Virginia exempts manufacturers’ purchases of goods used directly in production from sales tax • The Port of Virginia provides incentive programs for its users including tax credits, grants, and Foreign Trade Zone designation

FOREIGN Foreign Trade Zones are areas which are geographically inside the United States, but are legally considered TRADE outside its Customs territory. Companies located in Virginia Beach are within the Foreign Trade Zone 20 ZONE 20 (FTZ 20) service area and can benefit from special procedures that reduce, eliminate, or delay duties.

USER BENEFITS TALENT POOL FOR MANUFACTURING COMPANIES Source: U.S. Bureau of Labor Statistics, 2018 • No duties are paid if goods are re-exported Number Average • No duties are paid on broken or wasted products Employed Annual Wage • Manufacturers pay duties on either the foreign parts used INDUSTRIAL ENGINEERS 970 $88,300 or on the finished product, whichever is least expensive MECHANICAL ENGINEERS 2,120 $85,890 • Businesses can defer paying U.S. Customs duties on GENERAL & OPERATIONS MANAGERS 9,070 $124,190 imported goods until the goods enter the United States for domestic consumption MACHINISTS 2,980 $51,880 • Businesses are allowed to store goods within the foreign WELDERS, CUTTERS, SOLDERERS, BRAZERS 3,300 $49,860 trade zone for an unlimited period of time TEAM ASSEMBLERS AND ASSEMBLERS 3,300 $32,620 AND FABRICATORS, ALL OTHER page 10 MORE THAN 25 PERCENT OF THE REGION’S MANUFACTURERS ARE LOCATED IN VIRGINIA BEACH

SPOTLIGHT ONE OF MANY BIG NAMES IN OUR LOCAL ADVANCED MANUFACTURING INDUSTRY

STIHL INC. In business for more than 90 years, STIHL Inc., a German-based manufacturer of chain saws and other power tools, has its 90-acre, one-million-square-foot North American headquarters in Virginia Beach. According to STIHL executives, the Virginia Beach business environment and workforce have proven crucial in aiding the company’s impressive growth in the United States. Today, STIHL produces more power tools in Virginia Beach than it does in every other STIHL facility worldwide. For more information, visit www.stihlusa.com

1,600+ ANNUAL GRADUATES 13% BELOW NATIONAL AVERAGE in production-related programs join the is the average cost of industrial space workforce in the Virginia Beach MSA in the Virginia Beach MSA

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MILITARY & DEFENSE

The greater Virginia Beach area is home to the largest active-duty military population in the United States, as well as nine major military installations representing all branches of the U.S. Armed Forces. In addition, the only permanent NATO headquarters outside of Europe is located in the greater Virginia Beach area, as are the world’s largest naval base and other major military commands including the U.S. Navy’s headquarters for computer network command and control.

113,000+ 14,000+ NO. 1 MILITARY PERSONNEL NEWLY TRANSITIONED WORLDWIDE and 15 military installations across MILITARY PERSONNEL Naval Station Norfolk is the Virignia Beach MSA enter the civilian workforce each year the world’s largest naval base

Private industry support for the area’s defense operation plays a major role in the regional economy, creating thousands of jobs and leading significant innovations in new technologies for both military and private sector applications. Two major federal research and development facilities (NASA Langley Research Center and Thomas Jefferson National Accelerator Facility) are responsible for developing new technologies in the fields of materials, sensors, aviation safety, and nuclear science.

MAJOR DEFENSE COMPANIES IN VIRGINIA BEACH Source: Hoovers (2019), Virginia Beach Department of Economic Development (2020) Company # of Employees Company # of Employees LOCKHEED MARTIN CORPORATION 2,279 ALLIED TECHNOLOGY GROUP INC. 200 SAIC 534 GLOBAL TECHNICAL SYSTEMS (GTS) 95 J.K. HILL & ASSOCIATES INC. 351 VALKYRIE ENTERPRISES, LLC 11 NORTHROP GRUMMAN 213

page 12 SEVEN OF THE WORLD’S TOP 10 DEFENSE-RELATED FIRMS HAVE A PRESENCE IN THE VIRGINIA BEACH MSA

SPOTLIGHT ONE OF MANY BIG NAMES IN OUR LOCAL DEFENSE INDUSTRY

VALKYRIE ENTERPRISES, LLC Valkyrie Enterprises, a Veteran-owned small business headquartered in Virginia Beach, was founded in 2007 to provide system engineering, technical services, training, and other services to the U.S. Navy and Department of Defense agencies. Its customer base includes U.S. Fleet Forces Command, Norfolk Naval Shipyard, and Naval Network Warfare Command, among others. The company has also been included on multiple “fastest growing companies” lists as it continues to expand. Visit www.valkyrie.com for more information.

page 13 2020-2021 Community Profile | Virginia Beach Department of Economic Development

MARITIME & LOGISTICS

Virginia Beach is strategically located in the heart of the Mid-Atlantic, which lends significant logistical advantages to the City and the region as a whole. Its convenient and accessible transportation infrastructure, including the acclaimed Port of Virginia, provides multiple options for moving goods between national and international markets. The metropolitan area is also home to two international airports, two class-one rail services, and a robust interstate and highway network. The region is currently investing heavily in land transportation infrastructure including over $5.8 billion in interstate system expansion and improvements.

20,500+ EMPLOYEES $11 BILLION INVESTED 90 FOREIGN PORTS in the Virginia Beach MSA work in currently in land transportation have direct access to the region the logistics and distribution sector infrastructure throughout the region via 30 international shipping lines

Virginia Beach is the location of choice for businesses in the As volume coming through The Port of Virginia soars, and maritime and logistics sector. Given its close proximity to The ultra-large container vessels continue to make stops in the Port of Virginia, the deepest harbor on the East Coast, the region, the local maritime industry as a whole benefits. City has naturally gained a heavy concentration of businesses involved in freight transportation arrangement, marine The Port of Virginia recently completed two expansion cargo handling, logistics consulting services, port and harbor projects, growing its cargo container capacity from roughly 2.7 operations, coastal and deep-sea freight transportation, supply million containers a year to about 4.4 million. This combined chain management, and warehousing and storage. $670 million investment was made in anticipation of the additional cargo volume that is expected to come through the The Port of Virginia is a powerful economic engine region in the very near future, which will in turn give a boost to for the region that brings a number of maritime- the already-thriving maritime-related industry in Virginia Beach. related businesses to Virginia Beach.

page 14 Roughly 85 million U.S. consumers live within a one-day drive of Virginia Beach

More than 200 million U.S. consumers live within a two-day drive of Virginia Beach

DRIVING DISTANCE & TIME TO MAJOR CITIES Source: Google Maps, 2020 Miles Kilometers Hours, Minutes1 WASHINGTON, D.C. 203 327 3 hrs, 23 min PHILADELPHIA, PA 344 554 5 hrs, 44 min NEW YORK, NY 400 644 6 hrs, 40 min KNOXVILLE, TN 516 830 8 hrs, 36 min ATLANTA, GA 585 941 9 hrs, 45 min BOSTON, MA 642 1,033 10 hrs, 42 min DETROIT, MI 732 1,178 12 hrs, 12 min CHICAGO, IL 890 1,432 14 hrs, 50 min DALLAS, TX 1,376 2,214 22 hrs, 56 min HOUSTON, TX 1,382 2,224 23 hrs, 2 min 1Approximate travel times calculated based on average speed of 60 miles per hour.

page 15 2020-2021 Community Profile | Virginia Beach Department of Economic Development

OFFICE & RETAIL

The Virginia Beach area is the home to hundreds of corporations, including three in the Fortune 500. A low corporate income tax rate, affordable office space and a well-educated workforce make Virginia Beach particularly attractive to companies looking for a headquarters or major office location. The City also has one of the most robust telecommunication infrastructure support systems in the United States to support all facets of corporate operations.

WAGES IN CORPORATE, PROFESSIONAL & FINANCIAL SERVICES SECTOR Source: U.S. Bureau of Labor Statistics, May 2019 Average Annual Wages Virginia Beach MSA United States 2.5% ACCOUNTANTS & AUDITORS $72,580 $79,520 BELOW FINANCIAL ANALYSTS $79,440 $94,160 NATIONAL PERSONAL FINANCIAL ADVISORS $154,490 $119,290 AVERAGE INSURANCE UNDERWRITERS $59,770 $77,640 for salaries of corporate, professional, and financial ARCHITECTS $88,830 $89,560 services sector operating in SALES REPRESENTATIVES, SERVICES, ALL OTHER $58,400 $66,760 the Virginia Beach MSA

COMMERCIAL SPACE AT COMPETITIVE RATES (all rates below in dollars/square foot) Source: CoStar, 2020 Office Industrial Virginia Beach United States Virginia Beach United States CLASS A $27.48 $57.38 FLEX $9.10 $13.73 CLASS B $19.67 $30.13 WAREHOUSE $7.68 $8.81 CLASS C $15.76 $23.72 Retail

GENERAL RETAIL $17.11 $21.69 SHOPPING CENTER $13.25 $15.16 page 16 SPOTLIGHT ONE OF MANY BIG NAMES IN OUR LOCAL OFFICE AND RETAIL INDUSTRY

ARMADA HOFFLER PROPERTIES, INC. Armada Hoffler Properties is a vertically-integrated, self-managed real estate investment trust with nearly four decades of experience developing, building, acquiring and managing high-quality office, retail and multifamily properties located primarily in the Mid-Atlantic and southeastern United States. The Company was founded in 1979 as a privately owned real estate business until its initial public offering on the New York Stock Exchange in 2013. Visit www.armadahoffler.comfor more information.

Over the years, Virginia Beach has become an extremely attractive place for retailers of all stripes. The City offers a multitude of shopping experiences with its 11 retail districts. Highlighted amongst these is the ever-expanding Town Center which features nearly one million square feet of mixed-use retail space, mostly occupied by higher-end retailers. Locals rack up more than $6.4 billion in retail sales each year and tourists add more than $104 million annually.

page 17 2020-2021 Community Profile | Virginia Beach Department of Economic Development t nan d u ea mar

CYBER SECURITY & INFORMATION TECHNOLOGY bru sa

Virginia Beach is a location of choice for the information and communication technology industry thanks to its advantageous business climate. The industry is strengthened by a strong telecom infrastructure, reliable power supply and higher education facilities that provide a wide variety of degree and certificate programs to support the area’s rapidly expanding private-sector IT core.

Virginia Beach has also emerged as a leader in the cyber security industry by working to unite the unique assets of its businesses with the defense community. Virginia Beach’s strength in defense translates well into the cyber security industry. Many exiting military personnel are able to bring their considerable expertise in this particular field into private sector information technology companies. In 2018, newly exiting military personnel accounted for 530 IT jobs in the Virginia Beach MSA, many of which support defense-related information technology.

500+ IT-RELATED 12,000 CIVILIANS 1.6% JOB ESTABLISHMENTS IN THE VIRGINIA BEACH MSA GROWTH in the Virginia Beach MSA work in the areas of information and expected in the regional contribute to a cybersecurity communication technology or information techonology cluster development IT/electronics-related engineering sector by 2023

AVERAGE WAGES IN IT SECTOR FOR VIRGINIA BEACH MSA Source: U.S. Bureau of Labor Statistics, 2020 # Employed Average Annual Wage

SOFTWARE DEVELOPERS 5,450 $94,940 COMPUTER SYSTEMS ANALYSTS 3,070 $94,000 COMPUTER & INFORMATION SYSTEMS MANAGERS 1,500 $145,220 COMPUTER NETWORK ARCHITECTS 860 $113,130 COMPUTER HARDWARE ENGINEERS 250 $107,660 page 18 Center for Digital Government 2019 SAINT-HILAIRE- ant DE-RIEZ VIRGINIA BEACH un (FRANCE) d NAMED THIRD rea ma BILBAO MOST (SPAIN) TECHNOLOGICALLY

VIRGINIA ADVANCED BEACH bru (USA) sa CITY OF ITS SIZE IN AMERICA

SUBSEA CABLES TWO HIGHEST CAPACITY SUBMARINE CABLES IN THE WORLD LAND IN VIRGINIA BEACH Telxius, owned by the Telefónica Group, a Spanish telecom company, operates the two highest capacity submarine cables in the world: MAREA, developed in partnership with Microsoft and Facebook, and BRUSA, fully owned and operated by Telxius.

MAREA is the highest capacity system to ever cross the Atlantic, reaching 200 Tbps. It is set to boost Atlantic connections, providing ultra-high transmission capacity that keeps growing. It is a game changer that will easily adapt to the future of data services. These next-generation cable systems, sharing a RIO DE JANEIRO (BRAZIL) landing point at Virginia Beach, provide ultra-fast connectivity between the Americas and Europe.

BRUSA is the highest capacity subsea cable connecting the Americas, with ultra-fast transmission capacity reaching up to 138 Tbps. It links the Americas through two of its largest economies: USA and Brazil, providing a robust latest generation route enabling ultra- high speed broadband services and improving overall network performance and end-to-end security.

DUNANT is expected to become available in late 2020 at which point it will be the second private submairne cable built by Google and the first ever in-service undersea cable featuring a 12 fiber-pair Space Division Multiplexing (SDM) design, with a total capacity of 25 Tbps per fiber pair. This new subsea cable will deliver record-breaking capacity of 300 Tbps across the Atlantic. VIRGINIA BEACH IS PLUGGED IN AND READY TO GO Telxius built a 24,000-square-foot cable landing station to support the two new, ultra-high speed transatlantic fiber optic telecommunication cables that land in Virginia Beach’s Corporate Landing Business Park. Globalinx Data Center, headquartered in Virginia Beach, is in the process of expanding its current facility. 2020-2021 Community Profile | Virginia Beach Department of Economic Development

OFFSHORE WIND ENERGY

The U.S. offshore wind sector is still in the early stages of its development – the country’s first offshore facility only commenced commercial operation in 2016. Virginia Beach is well positioned to offer the best opportunity for business success and low exposure to risk for companies in the offshore wind supply chain.

In addition to its strategic Mid-Atlantic location, Virginia Beach offers a number of unique competitive advantages over other offshore wind business locations on the East Coast. Below are a few of them:

PRO-BUSINESS PROGRESSIVE ENERGY CONGESTION-FREE CLIMATE POLICY STANCE NAVIGATION CNBC named Virginia America’s Virginia’s Grid Transformation and The Virginia Beach area enjoys Best State for Business in 2019 – Security Act deems 5,000 MW of open shipping channels and a fourth win in 13 years for the solar and wind energy generation navigational flexibility eliminating Commonwealth. to be in the public interest. maritime congestion as a concern.

UNRESTRICTED AIR DRAFT ABUNDANT WATERFRONT LAND WATERWAYS AND INFRASTRUCTURE Virginia port facilities have direct access Virginia’s ports offer existing dock capacity and ample to sea with no overhead obstacles to on-water marshaling areas. The Virginia coastline is impede the shipping of large and upright geographically rich with waterfront properties and infrastructure and components. development or redevelopment opportunities.

page 20 Speaking of the Virginia Beach MSA’s competitive advantages in offshore wind energy, Virginia Governor Ralph Northam declared that

unmatched port infrastructure and high-quality maritime workforce make [our] region an ideal location for offshore wind energy “ development. Virginia should be the prime location for the offshore wind industry, from the supply chain to the full build-out of our offshore wind assets off the coast.”

During the 2020 General Assembly session, state lawmakers passed the VIRGINIA CLEAN ECONOMY ACT with a plan to eliminate carbon emissions by 2050 and to invest in clean energy technologies, which will create thousands of jobs and make power cheaper for Virginians.

The Commonwealth’s first Clean Energy Standard will spur economic growth:

• By creating up to 13,000 jobs per year in Virginia’s advanced energy industry • By producing $69.7 billion in net benefits for Virginians • By investing strategically in Virginia’s energy efficiency, rooftop solar and offshore wind industries

THREE OFFSHORE WIND PROJECTS ARE BEING CONSTRUCTED OFF THE COAST OF VIRGINIA, WHICH WILL SOON BRING 5 GIGAWATTS OF GREEN ENERGY TO VIRGINIA BEACH.

page 21 2020-2021 Community Profile | Virginia Beach Department of Economic Development

INTERNATIONAL PROFILE

Virginia Beach’s strategic location and friendly business climate, coupled with logistical assets such as international airports and The Port of Virginia, establish the City as a hub of international commerce. The metropolitan area is home to approximately 200 internationally-based firms. Fifty have chosen Virginia Beach for their U.S. or North American headquarters.

In addition, the large volume of global trade that takes place in the Virginia Beach area allows businesses to have access to some of the best international business law and immigration attorneys in the United States. Moreover, most banks in the area are also experienced in conducting international financial transactions.

200 27 12

The number of The number of COUNTRIES The number of FOREIGN COMPANIES represented in the CONSULAR OFFICES that operate businesses Virginia Beach located in the greater in the greater business Virginia Beach area Virginia Beach area community

Some foreign-based companies with internationally-recognized names that have chosen Virginia Beach include:

Technologing Future

page 22 INTERNATIONAL COMPANIES WITHIN THE VIRGINIA BEACH MSA

Source: Virginia Beach Economic Development, 2020 COUNTRY COMPANY NAME INDUSTRY SECTOR Brazil ARC Natural Stone Wholesale Canada Gentek, Inc. Distribution Canada LaserQuest Virginia Beach Service Canada Rutherford Controls International Manufacturing Canada WSP Parsons Brinckerhoff Service China Hi-Logic Wholesale China U-Play Corp Service Denmark Thrane & Thrane, Inc. Manufacturing France Haulotte North America Manufacturing France Masa Group, Inc. Service Germany AIN Plastics of Virginia, Inc. Distribution Germany Atlas North American, LLC Manufacturing Germany BMZ USA Distribution EUROPEAN OFFICES Germany Busch Vacuum Solutions, Inc. Manufacturing In addition to our office located in the Town Germany Hapag-Lloyd (America), Inc. Service Center of Virginia Beach, the Virginia Beach Germany Hermes Abrasives, Ltd Manufacturing Department of Economic Development Germany IMS Gear Virginia, Inc. Manufacturing established offices in Madrid (Spain) and Germany Kettler International, Inc. Distribution Ipswich (England) to offer assistance to the Germany Koster America Wholesale increasing number of European companies ​ Germany Prufrex Manufacturing interested in establishing or expanding in Germany Schenker International, Inc. Service Germany STIHL, Inc. Manufacturing Virginia Beach.​ Germany TAG Chemicals, GmbH Manufacturing Hong Kong Equity Industries, Inc. Distribution SPAIN India Manttra, Inc. Distribution Vicente Álvarez Fanjul​ Israel Diamonds Direct Distribution ​Virginia Beach Economic Development, Italy Atlantic Container Line Service Representative Europe Japan ARS Manufacturing, Inc. Manufacturing Spanish, Portuguese, and French Markets Japan NGK-Locke, Inc. Manufacturing Email: [email protected] Netherlands Arcadis US, Inc. Service Phone: +34 639 535 736 Netherlands Ranstad Service Netherlands W&O Supply Company Wholesale GERMANY Sinagpore Victory Tropical Oil USA, Inc. Manufacturing Spain SANJO Corte Fino Manufacturing Christine Krauss Spain Telefonica Service ​Virginia Beach Economic Development, Sweden Lindab Profile, Inc. Distribution Representative Europe Sweden Securitas Security Services USA Service German, Austrian, and Swiss Markets Sweden Skanka USA Service Email: [email protected] Switzerland Adecco Staffing Service Phone: +34 691 806 505 Switzerland Ferguson Enterprises, Inc. Service ​ Switzerland Kriss USA Manufacturing UNITED KINGDOM Switzerland UBS Financial Services Service Charles Macdowell Turkey UNSA America, Inc. Distribution United Kingdom G4S Secure Systems Service Virginia Beach Economic Development, United Kingdom MacTaggert Scott Service Representative Europe United Kingdom Serco, Inc. Service United Kingdom, and Irish Markets United Kingdom Top Golf Service Email: cmacdowe​@vbgov.com United Kingdom VT Group Service Phone: +44 7788 755300 2020-2021 Community Profile | Virginia Beach Department of Economic Development

SMALL, WOMEN & MINORITY-OWNED BUSINESSES

Virginia Beach is a diverse community perpetually striving to create an inclusive business environment that is home to a wide variety of people and businesses, including a significant number of small, women and minority-owned (SWaM) companies.

MORE THAN 30 PERCENT ONE IN THREE START-UPs of all women and minority-owned companies in the metropolitan area in the region are located in Virginia Beach are located in Virginia Beach

To help SWaM businesses flourish and achieve their goals, the City established a development program in 2007 to assist these businesses in generating new capital investment and employment opportunities. This program, which also benefits Service Disabled Veteran-Owned Businesses, provides technical resources, assistance and opportunities such as the ones listed below.

ADVOCACY: COACHING: TRAINING: MINORITY BUSINESS COUNCIL SMALL BUSINESS MENTORSHIP WORKSHOP SERIES Ensures increased participation Provides tailored business mentoring Offers workshops on a variety of topics of SWaM businesses in the from area university and business from social media and marketing to small procurement process. leaders to select SWaM businesses. business financing and joint ventures.

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R D D W D 2. Joint Expeditionary Base – Fort Story R E Newsoms G E 189 R PUN O O GO R 32 E N QUAY RD G FER O RY RD M D 3. Camp Pendleton V

L C B A 168 Lake B R A E LL L O A L HA Back Bay I L Drummond V C I R K Y N D E A 4. Naval Air Station Oceana L A S H R INDIAN C T W D REE A K R T D E S North Landing V Whaleyville I Boykins L 5. Naval Air Station Dam Neck Annex L E 186 R D 35 VIRGINIA VIRGINIA MARSH NORTH CAROLINA CSWY Severn NORTH CAROLINA Corapeake DANIELS RD 615 CAMDENCAMDEN Moyock 17 Knotts COUNTY Island Gates Knotts Island D CURRITUCCURRITUCKK Bay NORTHAMPTONNORTHAMPTON P R AM W HERTFORD S 168 13 37 GATEGATESS LD COUNTY COUNTY O COUNTY COUNTY 32 35 Ferry PASQUOTANK Currituck Sound COUNTY Currituck

CAMDEN 2020-2021 Community Profile | Virginia Beach Department of Economic Development

BUSINESS ENVIRONMENT (LOCAL)

Virginia Beach offers companies a highly competitive business environment with a tax system and incentive structure that highlight the City’s dedication to support business growth and excellence. Additionally, the cost of doing business here is below the national average, thanks in large part to low City and State tax rates, competitive wages, moderate energy costs, and transportation infrastructure that provides businesses access to 25 percent of the U.S. population within a day’s drive.

Together, the Commonwealth of Virginia and the City of Virginia Beach have one of the fairest tax structures of the 50 states. The Commonwealth has not raised its corporate income tax rate of 6 percent since 1972, and Virginia’s unemployment insurance rates and workers’ compensation costs are among the lowest in the nation.​

• Businesses and residents have only STATE OF VIRGINIA TAX RATES one local taxing authority – there are no Source: Virginia Economic Development Partnership, September 2019 special school district taxes, utility district Virginia National Average taxes, or transportation district taxes. STATE CORPORATE INCOME TAX1 6% 6.49% • Virginia does not tax intangible business property, manufacturers’ inventory, certain SALES & USE TAX2 6% 6.94% business property for manufacturers, or 1Effective tax rate as a percent of net income before federal income tax payments. certified pollution control equipment. 2Assessed at a combined state and local rate with certain purchases exempt.

• Operating expenses for utilities are below the national average; some rates UTILITY RATES are variable depending upon usage. COMPARISON FOR VIRGINIA, MARYLAND, MASSACHUSETTS, AND NEW JERSEY Sources: Edison Electric Institute (2019), Energy Information Administration (2018) • The United States federal corporate VA MD MA NJ income tax rates are set based upon a variety of factors, and range between 15 COMMERCIAL ELECTRIC RATE1 $7.58 $10.45 $18.01 $13.20 percent and 40 percent. Corporations INDUSTRIAL ELECTRIC RATE2 $6.24 $8.80 $16.41 $11.37 may deduct local and state income tax expenses when computing federal COMM. NATURAL GAS RATE3 $8.08 $9.57 $12.84 $9.01 tax income, generally resulting in a net IND. NATURAL GAS RATE4 $5.08 $8.51 $10.31 $8.03 effective rate of approximately 35 percent.​​​​​​ 1Average commercial electric rate (12 months ending 6/30/2018) in cents per kilowatt hour. 2Average industrial electric rate (12 months ending 6/30/2018) in cents per kilowatt hour. 3Average price of natural gas delivered to commercial consumers in dollars per thousand cubic feet. 4Average price of natural gas delivered to industrial consumers in dollars per thousand cubic feet. page 26 BUSINESS OPERATIONS COST To operate a business, it’s necessary to obtain a business license. As a pro-business city, Virginia Beach offers a Business License Incentive program in which new businesses that anticipate gross receipts in excess of $100,000 are eligible to pay a maximum license fee of $50 for each of the first two years of operation.

For all other bussinesses, license rates are varied based on industry. Even though manufacturing and some nonprofit entities may qualify as tax exempt, all entities must register with the Commissioner of the Revenue regardless of status.

CITY OF VIRGINIA BEACH TAX RATES Source: Virginia Beach Department of Economic Development Tax Rate REAL ESTATE1 $1.02 per $100 assessed value ENERGY-EFFICIENT REAL ESTATE1 $0.92 per $100 assessed value PERSONAL PROPERTY $4.00 per $100 assessed value Virginiawas the Beachfirst city in Virginia to MACHINERY & TOOLS $0.00 eliminate the machinery and tools tax. BUSINESS PROPERTY $4.00 per $100 assessed value 40% of original cost (tangible property) 33% of original cost for manufacturers

DATA CENTER BUSINESS PROPERTY $0.40 per $100 assessed value depreciation schedule: 40% of original cost (computers and peripherals) for years 1-3; 30% for year four; 15% for year five and beyond

BUSINESS LICENSE2 Contracting: $0.16 per $100 of gross receipts Capped at flat fee of $50 for first two years Professional: $0.58 per $100 of gross receipts of operation for a business new to the City. Retail: $0.20 per $100 of gross receipts Service: $0.36 per $100 of gross receipts Wholesale: $0.12 per $100 of gross purchases

1Real estate assessed at 100% of its fair market value. 2Capped at flat fee of $50 for first two years of operation for a business new to the City. 2020-2021 Community Profile | Virginia Beach Department of Economic Development

BUSINESS ENVIRONMENT (STATE/REGIONAL)

Virginia was named America’s Top State for Business by CNBC in 2019. Its world-class workforce, high-performing education system and business-friendly regulations are what propelled Virginia to the top spot. This was the fourth win for the Commonwealth in the 13 years since the CNBC study began and the ninth ranking it earned in the top five.

It’s no surprise Virginia consistently ranks as one of the top states for business. Virginia offers the best workforce in the country with 38 percent of adults who have a bachelor’s degree or higher, according to the U.S. Census Bureau. This places Virginia in the top 10 nationwide for educational attainment. And per the U.S. Bureau of Labor Statistics, Virginia has the nation’s fourth highest concentration of crucial science, technology, engineering and math (STEM) employees, making up 9 percent of the workforce in 2018. All of this in a right-to-work state with a minimal union presence. Also in the 2019 CNBC study, Virginia rose to third place in the Business Friendliness category, up from fifth place the previous year and earning an A grade. In 2018, Governor Ralph Northam signed into law a bipartisan program to cut business regulations by 25 percent within three years.

WORKERS’ COMPENSATION & UNEMPLOYMENT INSURANCE Source: Cerity, Patriot, 2020 Workers’ Compensation Unemployment Insurance Workers’ compensation insurance State (rate per $100 of payroll) (rate per employee) is required for most employers performing work in Virginia. VIRGINIA $7.06 3.60% It provides ​injured workers wage replacement and medical CALIFORNIA $16.99 3.85% benefits while protecting SOUTH CAROLINA $18.19 3.03% employers from civil suit.​ GEORGIA $19.48 3.98% Unemployment insurance is part MARYLAND $7.07 5.25% of an employer-paid program that provides temporary, NEW JERSEY $10.00 4.70% partial income replacement to NEW YORK $15.32 4.35% qualified individuals who are unemployed through no fault NORTH CAROLINA $17.08 5.88% of their own. Employers pay PENNSYLVANIA $13.26 5.61% unemployment insurance taxes and reimbursements to support U.S. AVERAGE $19.13 4.00% unemployment benefit payments. page 28 Aligning with the state’s business friendliness, Virginia Beach offers companies a highly competitive business environment with a tax system and incentive structure that highlight the City’s dedication to support business growth and excellence.

REAL ESTATE COSTS Source: CoStar, 2020 $58.19 $48.61 $42.06 $41.93 $37.85 $28.27 $23.23 $22.90 $22.69 $22.23 $19.35 $19.42 $18.88 $19.03 $16.59 $16.67 $12.73 $12.04 $10.72 $8.14 $6.72

Industrial Flex Warehouse Office ClassA Office Class B Office Class C General Retail Shopping Retail Virginia Beach Baltimore Washington, D.C.

AVERAGE ANNUAL WAGE COMPARISON Source: U.S. Bureau of Labor Statistics, May 2019 Occupational Employment and Wage Estimates Occupation Title Virginia Beach United States ARCHITECTURE & ENGINEERING $83,570 $88,800 ARTS, DESIGN, ENTERTAINMENT, SPORTS & MEDIA $55,580 $61,960 7% BUSINESS & FINANCIAL OPERATIONS $75,610 $78,130 BELOW COMPUTER & MATHEMATICAL $86,930 $93,760 NATIONAL CONSTRUCTION & EXTRACTION $46,950 $52,580 AVERAGE

HEALTHCARE PRACTITIONERS & TECHNICAL SERVICES $78,920 $83,640 is the mean annual wage rate across all HEALTHCARE SUPPORT $30,030 $31,010 occupations in INSTALLATION, MAINTENANCE & REPAIR $49,280 $50,130 Virginia Beach LIFE, PHYSICAL & SOCIAL SCIENCES $73,590 $77,540 MANAGEMENT $117,300 $122,480 OFFICE & ADMINISTRATIVE SUPPORT $38,470 $41,040 PRODUCTION $41,890 $40,140 SALES & RELATED SERVICES $36,500 $43,060 TRANSPORTATION & MATERIAL MOVING $36,000 $37,920 ALL OCCUPATIONS $49,620 $53,490 page 29 2020-2021 Community Profile | Virginia Beach Department of Economic Development

TRANSPORTATION INFRASTRUCTURE

Centrally located on the East Coast of the United States, on the shores of the Atlantic Ocean, Virginia Beach is strategically located for international connectivity and global business. The City’s superior multi-modal transportation network includes an extensive railway system, four shipping terminals accessible through the East Coast’s largest ice-free deep port, an efficient and well-maintained highway system and two international airports within a 25-minute drive of city limits. Virginia Beach is optimally situated to move people, cargo, and even data quickly and efficiently. RAIL The Virginia Beach MSA is served primarily by rail giants CSX and Norfolk Southern. Our ports create a perfect entry location for railway cargo distribution throughout the East Coast and Midwest. Efficient connections with other rail systems and motor carriers provide easy and affordable access to the rest of the U.S.

NORFOLK SOUTHERN Norfolk Southern operates more than 21,200 miles of track, including 263 short line railroads in 22 states. Operations are focused in the southeast DETROIT and Midwestern U.S., as well as Ontario, Canada. Of particular importance CHICAGO CLEVELAND to many port users is the availability of Norfolk Southern’s Heartland Corridor connecting the Virginia Beach MSA with the Chicago area. COLUMBUS CINCINNATI FRONT ROYAL CSX LOUISVILLE HEARTLAND INTL’ CSX offers a variety of rail, container-shipping, intermodal, trucking, barge, GATEWAY ST. LOUIS VIRGINIA and contract logistics management services. With over 22,000 miles of BEACH track, CSX operates 240 short line railroads in 23 states, including the GREENSBORO District of Columbia and two Canadian provinces. With operations along their I-95 Corridor, CSX ensures that the greater Virginia Beach area remains well connected.

CSX NORFOLK SOUTHERN

page 30 connectivity ROADS LOCATION The Virginia Beach MSA is intersected by several QUOTIENT interstate and state highway systems, making the region a hub for distribution and truck transportation services. Products move in and out of Virginia Beach efficiently and can be in the hands For distribution and logistics, the Virginia Beach area of more than 80 million consumers – nearly half of boasts a regional location quotient (2019) of the U.S. population – within a day’s drive. 2.25 AIR – that’s more than twice Norfolk International Airport (ORF) is the major the national average. airport serving the greater Virginia Beach area and The location quotient is a way of discovering the northeast North Carolina. The airport offers flights industries or occupations that are truly unique and to hundreds of cities worldwide. A second airport specialized in a regional economy. in the region – Newport News/Williamsburg (PHF) – also provides nonstop flights to airports across the country with connections to destinations worldwide.

Both airports are located well within a 30-minute commute of most business and residential areas in the region, providing air service for approximately four million passengers annually. Between them, nine major airlines provide over 160 flights per day to 26 airports, of which 17 are major hubs and international gateways. Both also on-site international customs capabilities and certifications, providing excellent air freight/cargo resources.

Norfolk International is the most conveniently located for Virginia Beach travelers, about 3 miles (less than 5 kilometers) outside of city limits. It is also an air cargo hub with two air cargo terminals totaling 88,000 square feet of space for processing. The airport is serviced by FedEx, United Parcel Service, and Mountain Air.

5.8 MILLION 4 MILLION TOP 13 PERCENT POUNDS PASSENGERS OF ALL AIRPORTS The total cargo volume The total number of Where ORF ranks in the handled by Norfolk passengers flying through U.S. in terms of passengers International annually. Norfolk International annually. served annually.

page 31 2020-2021 Community Profile | Virginia Beach Department of Economic Development

THE PORT OF VIRGINIA

The Port of Virginia offers channel depth of 50 feet, inbound and outbound, and is the only U.S. East Coast port with Congressional authorization to dredge to 55 feet. With its recently approved expansion project underway, The Port will take its channels to 55 feet deep by 2024 and widen them in select areas to allow for two-way traffic of ultra-large container vessels. In an era where container ships are carrying tens of thousands of twenty-foot equivalent units per voyage, deep water and the absence of overhead restrictions is a significant competitive advantage.

The Port of Virginia is a hub port; an important distinction for the shipping public. Nearly 30 international shipping lines offer direct, dedicated service to and from Virginia, with connections to 200+ countries around the world. In an average week, more than 40 international container, breakbulk and roll-on/roll-off vessels are serviced at its marine terminals.

Well integrated with other regional transportation infrastructure including railway, barge, and highway, The Port of Virginia is a key component to accessing the global marketplace. There are 15 weekly vessel calls to Asia and 13 to Europe. The Port also offers direct Interstate highway access from all terminals and is proud to be the largest intermodal rail port on the East Coast, with to/ from service to 19 inland destinations. As the second largest on the East Coast in tonnage and the third largest in container volume, Virginia’s ports have the ability to handle any type of cargo and can process over 4,000,000 containers on an annual basis.

In 2019, CNBC ranked Virginia as the #1 state for business,CHESAPEAKE and BAY The Port of Virginia plays a key role in Virginia’s ability to serve those businesses.

Newport News Marine Terminal (NNMT)

Future Craney Island Terminal Location

Norfolk International Terminal (NIT) Virginia International Gateway (VIG) Portsmouth Marine Terminal (PMT)

VIRGINIA BEACH 6 TERMINALS $2.8 BILLION IN RANKED #3 (4 IN VIRGINIA BEACH MSA) ANNUAL MERCHANDISE EAST COAST PORT 19,885 linear feet of channels and berth, come through Foreign Trade Zone #20 in terms of container volume – 30 miles of on-dock rail, and as well as $408 million 2.9 million TEUs in 2019 or 26 Suez-class, ship-to-shore cranes. in annual exports. 13% of total market share.

55-FOOT CHANNELS FIRST-IN, LAST-OUT 2.5 HOURS AND BERTHS BY 2024 PORT OF CALL TO OPEN SEA will make it the deepest port on the with direct service to with open shipping channels East Coast when the expansion/dredging 45+ countries and indirect and navigational flexibility which project is completed. service to 200+ countries. eliminate maritime congestion.

TOP IMPORTS/EXPORTS Source: The Port of Virginia, 2019 CHESAPEAKE BAY Top 10 Imports Top 10 Exports TOP TRADING PARTNERS Source: The Port of Virginia, 2019 Furniture Logs and Lumber Country Auto Parts Soybeans and Products India Plastic Products Paper and Paperboard Toy s Wood Pulp Newport News Brazil Marine Terminal (NNMT) Paper and Paperboard Pet and Animal Feeds Ukraine Auto and Trick Tires and Tubes Grocery Products Future Craney Island Morocco Terminal Location Fabrics; Including Raw Cotton Field Seeds and Bulbs Italy Norfolk International Terminal (NIT) Hardware Auto Parts Virginia International Netherlands Gateway (VIG) Sheets, Towels, Blankets Woodenware Portsmouth Marine Terminal (PMT) China Metalware Poultry United Kingdom Japan Turkey page 33 2020-2021 Community Profile | Virginia Beach Department of Economic Development

QUALITY OF LIFE

A moderate coastal climate with four distinct seasons offers an abundance of natural treasures available to the community for enjoyment. When combined with a host of recreational and cultural opportunities and an affordable cost of living, it’s easy to see why Virginia Beach is touted as one of the best places to live in America.

Named #1 Safest Large City in America by AdvisorSmith (2020) and the Best Big City to Live In by Wallet Hub (2019), Virginia Beach offers its residents, and the millions of tourists who visit annually, a lifestyle unmatched by any other major American city. 38 MILES OF BEACHES (61 kilometers)

79 MILES OF SCENIC WATERWAYS (127 kilometers)

200 MILES OF BIKEWAYS AND TRAILS (322 kilometers)

There is always something fun to do in Virginia Beach! The vibrant coastal city is home to a flourishing local culinary scene, rich history, a variety of arts and entertainment and family- friendly attractions that keep locals and millions of annual visitors entertained year-round.

But Virginia Beach is more than just a beach.

While beautiful beaches and endless waterways are some of its best assets, the City actually consists of multiple beach destinations and seven eclectic districts, each with its own distinct personality.

Located where the Chesapeake Bay meets the Atlantic Ocean, Virginia Beach is naturally positioned to offer an incredible lifestyle. The City also works diligently to uphold a high quality of life for residents through excellent services, including recycling programs, high quality public water, a well-trained police force, various publicly offered childcare programs, and internal management of enhancing the scenic beauty of the City. As a result, housing continues to be in demand as people choose to move to Virginia Beach for employment opportunities and its amenities.

page 35 2020-2021 Community Profile | Virginia Beach Department of Economic Development

QUALITY OF LIFE

THE GREAT OUTDOORS Virginia Beach is a great place for outdoor recreation. The 300-foot-wide beach at the oceanfront and it’s famous three-mile boardwalk offer countless perks year round with a bevy of fun events and festivals. But the beauty of Virginia Beach extends far beyond the Atlantic shore. The City’s parks and recreation system is made up of over 7,000 acres of fields, forests, wetlands, lakes and river and beach shoreline.

Among the 4,500-plus acres of community parks are some that attract thousands of visitors a year, including First Landing State Park, pictured left, False Cape State Park and Back Bay National Wildlife Refuge, just to name a few. There are also numerous outdoor sports and recreational options, and a variety of sporting venues such as public golf courses, softball fields, tennis courts, and many recreation centers.

CULINARY SCENE With its location on the southern tip of the Chesapeake Bay, Virginia Beach makes for a seafood-centric culinary culture, which boasts a wide array of unique restaurants and delectable fare. With the famously rich waters of the Bay, hundreds of inlets snaking through the City and miles of farmland, Virginia Beach is the place for seafood and locally harvested ingredients, and that’s only the beginning. From a growing brewery network and the legendary Lynnhaven oysters to local chefs who are constantly pushing what it means to be farm- to-table and sea-to-table, Virginia Beach is a coastal community with a culinary scene that is truly something to be savored. page 36 ATTRACTIONS The City of Virginia Beach offers a plethora of must-see museums and amusements, including a waterpark, a go-kart racing facility, an aquarium and marine science center, an aerial adventure park with tree-to-tree zip lining, a military aviation museum, as well as historical homes and sites such as the lighthouses pictured left.

The Cape Henry Lighthouse and Park is home to a 1792 lighthouse and a “new one” that was built in 1881. The old Cape Henry Lighthouse, a National Historic Landmark, serves as the official symbol for the City of Virginia Beach.

ARTS, CULTURE & ENTERTAINMENT Throughout the year, Virginia Beach pulsates with cultural celebrations, musical performances and diverse festivals. From the intimate indoor stages of The Sandler Center for the Performing Arts and Zeiders American Dream Theater, to the amped-up outdoor environment of Veterans United Home Loans Amphitheater and the steady stream of live music at the oceanfront, the stages around Virginia Beach host some of the best concerts on the East Coast.

Virginia Beach also hosts a number of lively and entertaining festivals year-round from wine tasting and marathon running, to international sand sculpting competitions and boardwalk art shows, to beer tastings and strawberry festivals, and so much more. Every season is festival season in Virginia Beach.

page 37 2020-2021 Community Profile | Virginia Beach Department of Economic Development

WORKFORCE DEVELOPMENT & EDUCATION

A well-educated and skilled populace is vital for a thriving workforce and community. Virginia Beach residents and employers alike benefit from an excellent public and private education system, as well as a variety of local and state workforce development programs that provide assistance to employees and businesses.

The region’s many high schools and colleges, as well as exiting members of the military, provide a steady stream of talented individuals into the labor pool. In fact, our highly skilled workforce is enhanced by more than 12,500 graduating college students and 5,200 graduating high school students who enter the workforce on an annual basis, as well as multiple internationally renowned research and development centers which truly make Virginia Beach a great place to find qualified talent.

PRIMARY & SECONDARY EDUCATION ELEMENTARY The Virginia Beach City Public Schools (VBCPS) system prepares students to be successful as workers 55 SCHOOLS and lifelong learners in this challenging and rapidly changing global economy by offering expanded academic choices including school-within-a-school academies, advanced academic programs, gifted programs and several specific career-track technical education programs. MIDDLE 15 SCHOOLS LANGUAGE IMMERSION PROGRAM VBCPS offers partial-immersion programs in Spanish at select elementary and middle schools. HIGH Students in a VBCPS language immersion program follow the same curriculum as their grade-level SCHOOLS * peers. English as a second language (ESL) classes are also offered across the school system to 11 students whose home language is other than English and who have limited English proficiency. * PLUS ONE CHARTER HIGH SCHOOL AND A NUMBER OF SPECIALTY CENTERS

Virginia Beach is home to Virginia Wesleyan University, a highly selective liberal arts and science university offering 39 majors and 31 minors.

HIGHER EDUCATION UNIVERSITIES ACROSS The Virginia Beach MSA has the highest concentration of college students in Virginia, with more 8 THE REGION than 100,000 students attending the region’s post-secondary institutions and technical schools. While our colleges and universities typically provide a pathway to bachelor’s, master’s and doctoral degrees, the region’s community colleges play a crucial role in closing the skills gap by partnering COMMUNITY COLLEGES with the business community to develop traning programs that maximize workforce development 4 and offering students the competencies they need to meet the evolving needs of employers. With the many educational and workforce training opportunities available, Virginia Beach is able to provide a comprehensive SCHOOL-TO-INDUSTRY network to help ensure that its residents PARTNERSHIPS are educated and ready to enter the Tidewater Community College has teamed up with local manufacturers, including IMS Gear, STIHL, and workforce of today and tomorrow. Busch, to turn a manufacturing floor into a college classroom. While Tidewater Community College provides the curriculum and instruction, local companies provide the lab space and necessary Below is a list of workforce development organizations and materials. This allows employees to learn on the programs that aim to provide assistance to Virginia Beach employers. floor of an actual manufacturing operation and become even more valuable members of their VIRGINIA EMPLOYMENT COMMISSION company. Additionally, a dual enrollment agreement exists between Virginia Beach City Public Schools The Virginia Employment Commission offers workforce and Tidewater Community College that allows high services to job seekers and companies doing business in the school students to earn college credit for selected Commonwealth. Employers can benefit from a variety of manufacturing courses. recruitment solutions and incentives.

VIRGINIA JOBS INVESTMENT PROGRAM Offered by the Virginia Economic Development Partnership, this program encourages the expansion of existing Virginia businesses and start-up of new business operations in Virginia VIRGINIA BEACH CITY PUBLIC SCHOOLS by providing assistance to find and develop a skilled workforce. The Virginia Beach Public Schools system has a strong Career and It helps offset recruiting and training costs incurred by Technical Education program that ensures workforce readiness companies that are either creating new jobs or implementing for thousands of students. Virginia Beach places a particular state technological upgrades. emphasis on STEM education, with a capstone robotics, maker, and cyber security challenge taking place each year. TIDEWATER COMMUNITY COLLEGE Tidewater Community College is a major provider of higher VIRGINIA BEACH ECONOMIC DEVELOPMENT education and workforce development services in southeastern The Virginia Beach Department of Economic Development Virginia. Its Workforce Development Department provides has a workforce development program designed to connect customized training courses for various industry certifications, local schools, colleges, and universities to ensure that as well as a range of credit and noncredit courses. curriculums are being designed to fit the needs of employers. The department also provides companies with custom, HAMPTON ROADS WORKFORCE COUNCIL comprehensive labor market information. This workforce development board oversees federally funded programs and runs a number of One-Stop Workforce VIRGINIA BEACH GROWSMART Centers for Virginia Beach and other neighboring localities. The Virginia Beach GrowSmart is an early childhood education organization helps jobseekers find suitable job openings and initiative that works with school and community partners to bolster their earning power through training, while offering ensure children’s healthy development and access to high- direct services to employers such as assistance in finding quality education in the first years of life. This helps our young

qualified workers, potential financial incentives, information local children enter formal education ready to learn and succeed. regional on tax credits and labor market data.

page 39 2020-2021 Community Profile | Virginia Beach Department of Economic Development

INDUSTRIAL / COMMERCIAL INVENTORY

Virginia Beach has nine BUSINESS DISTRICTS – each with a distinct​​ ​​​character and industry base. Some districts are heavily populated, making them ideal for corporate and retail clusters, while others are located where major transportation corridors converge, thus providing an ideal location for industrial development.

Virginia Beach also has eight OPPORTUNITY ZONES – each one identified by a red dotted line – that are uniquely positioned and ready for investment and growth. The opportunity zones program rewards investors with tax breaks for putting money earned from other investments back into businesses or real estate projects. Opportunity Zones are qualified census tracts that allow investors to receive tax benefits on currently unrealized capital gains by investing those gains in these areas according to the Federal Tax Cuts and Jobs Act of 2017 provisions.

As for the City’s BUSINESS PARKS – a majority of which fall within a major business district – they allow companies to benefit from an advanced infrastructure and a synergy that’s achieved by allowing companies in similar industries to locate in close proximity. The main business parks are listed below, however additional business parks are also located throughout the City in independent business districts.

1. Airport Industrial Park​ 6. Oceana West Corporate Park 2. Kempsville 7. Taylor Farms Commerce Park 3. Centre Pointe Office Park 8. Oceana South Industrial Park 4. Town Ce​​​​nter​ 9. Castleton Commerce Park 5. Lakeview Corporate Park 10. Corporate Landing Business Park

Virginia Beach has a long history of successfully developing and marketing shovel-ready industrial site inventory. From the 1960’s to the present day, this commitment brought jobs and capital investment to the City through the location of companies like STIHL, Architectural Graphics, IMS Gear, Prufrex, Haulotte, and Sanjo. The Virginia Beach Innovation Park opened in early 2020. As evidence of the continuing strength of industrial activity in the community, all of Innovation Park Phase One was obligated within 100 days.

BUSINESS DISTRICTS OPPORTUNITY ZONES BUSINESS PARKS page 40 156

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CAMDEN 2020-2021 Community Profile | Virginia Beach Department of Economic Development

INCENTIVES

Companies and entrepreneurs in Virginia Beach have access to a wide variety of programs designed to expand investment and job creation opportunities. Financial incentives are available from several sources that include state and local rewards for investment.

CITY OF VIRGINIA BEACH FUNDING

Economic Development Investment Program (EDIP) APZ-1 Incentives A local grant may be available from the Virginia The City of Virginia Beach offers incentives for businesses that conform Beach Development Authority (VBDA) to qualifying to APZ-1 (Accident Potential Zone) uses to move into the area businesses locating or expanding in the City to surrounding Naval Air Station (NAS) Oceana. These incentives include assist with infrastructure improvements and other conditional-use permit waivers, rebates on Business, Professional and allowable project purposes. Occupational License (BPOL) taxes and fees, and partial property tax exemptions for renovated or rehabilitated properties. Business License Fee Incentive Businesses new to the City of Virginia Beach have Industrial Revenue Bonds their business license fee capped at a maximum of The VBDA issues tax-exempt industrial revenue bonds to provide $50 for each of their first two years of operation in financial assistance for businesses to acquire and construct industrial and the City of Virginia Beach. commercial facilities.

COMMONWEALTH OF VIRGINIA FUNDING

Commonwealth Opportunity Fund Virginia Jobs Investment Program Earmarked for major investments in Virginia, these grants can VJIP helps offset recruiting and training costs incurred by be used for training, construction or site acquisition. companies that are either creating new jobs or implementing technological upgrades. Tax Exemptions for Manufacturers Manufacturers’ purchases used directly in production are Corporate Income Tax Credits exempt from sales and use tax. Virginia offers a variety of tax credits that can be used to offset a company’s corporate tax liability, including the Major Facility Job Tax Credit for companies creating more than 50 new jobs.

page 42 THE PORT OF VIRGINIA FUNDING

Barge and Rail Usage Tax Credit Port Volume Increase Tax Credit Tax credit for usage of barge or rail to move Tax credit for taxpayers engaged in the manufacturing of goods or the cargo rather than by truck or other motor distribution of manufactured goods that use public or private port facilities vehicle on Virginia’s highways. Credit is $25 per located in Virginia and increase cargo volume through the facility by 5% in TEU in excess of number of containers shipped a single calendar year over their base year cargo volume. Credit is $50 per by barge or rail during the preceding year. TEU in excess of base cargo.

Economic & Infrastructure Development International Trade Facility Tax Credit Grant Program (POV Grant) Tax credit for creating new jobs or capital investment in an international A grant of up to $500,000 per Qualified trade facility as a result of moving 10% more cargo through a Virginia Port Company that is designed to assist businesses Authority-operated cargo facility than in the preceding taxable year. Credit is locate a new operation or expand an existing $3,500 per qualified full-time employee that results from increased qualified operation within the Commonwealth of Virginia. trade activities or an amount equal to 2% of qualified capital investment Available from Jan. 1, 2014 until June 30, 2025. expenses made by the taxpayer to facilitate increased qualified trade costs.

STRATEGIC PARTNERS

The Virginia Beach Department of Economic Development provides resources and a responsive approach to help new and existing businesses thrive in our community. Below are regional and state partners we collaborate with to bring businesses even more tools and resources to help them succeed in Virginia Beach.

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP www.vedp.org HAMPTON ROADS ALLIANCE www.hamptonroadsalliance.com THE PORT OF VIRGINIA www.portofvirginia.com HAMPTON ROADS WORKFORCE COUNCIL www.vcwhamptonroads.org HAMPTON ROADS CHAMBER OF COMMERCE www.hrchamber.com

page 43 2020-2021 Community Profile | Virginia Beach Department of Economic Development

DEPARTMENT OF ECONOMIC DEVELOPMENT

The City of Virginia Beach’s economic development efforts ECONOMIC DEVELOPMENT STAFF are primarily carried out by the Virginia Beach Department Taylor Adams of Economic Development and its accompanying YesOceana Director of Economic Development program. The Department also serves as staff for the Virginia Beach Development Authority. Laura Hayes Head of International Business Attraction & Retention Raymond White Head of Domestic Business Attraction & Retention

The Virginia Beach Department of Economic Development Jeffrey Smith is focused on the attraction and retention of domestic and Head of Small, Woman, Minority & Veteran-Owned ourinternational businessmission and industry that will bring new capital Business Portfolio investment and jobs to our community. Ihsane Mouak Head of Project Management David Couch Head of Domestic Bio-Medical Attraction & Retention

DEVELOPMENT TEAM Charles J. Bauman III Ron D. Berkebile Letitia Langaster Svetla Tomanova

INTERNATIONAL OFFICES Vicente Álvarez Fanjul – Madrid, Spain Christine Krauss – Munich, Germany Charles Macdowell – Ipswich, United Kingdom

OFFICE MANAGEMENT Olivia O’Bry Vicki Kelley

OUR TEAM Annagrid Walker page 44 The City of Virginia Beach operates under a Council-Manager form of government. The City Council, comprised of eleven members, is the legislative body. The City Manager is appointed by Council and acts as the Chief Executive Officer. Along with staff, the Manager implements policies established by the Council. CITY COUNCIL Robert M. “Bobby” Dyer Mayor

James Wood Vice Mayor/Councilmember

Louis Jones Councilmember, Liaison to the Virginia Beach Development Authority

Rosemary C. Wilson Councilmember, Liaison to the Virginia Beach Development Authority

Jessica Abbott Councilmember

Michael Berlucchi Councilmember Comprised of some of the City’s premier business leaders, the VBDA is Barbara Henley tasked with expanding the tax base through increased investment. Councilmember The VBDA is the body that reviews, approves and administers incentives associated with business attraction and John Moss retention in the City of Virginia Beach. Councilmember CHAIR Aaron R. Rouse Councilmember Lisa M. Murphy VICE CHAIR Guy King Tower Joseph E. Strange Councilmember SECRETARY Sabrina Wooten David Bernd Councilmember ASSISTANT SECRETARY CITY EXECUTIVES W. Taylor Franklin Patrick Duhaney City Manager TREASURER William Brunke Mark Stiles City Attorney COMMISSIONERS William P. Brown Amanda Barnes, MMC City Clerk Nneka Chiazor Penny Morgan Ronald H. Williams, Jr. Michael J. Standing Deputy City Manager Guenter Weissenseel

CITY OF VIRGINIA BEACH CITY OF of Economic Vitality AUTHORITY DEVELOPMENT VIRGINIA BEACH Dorothy L. Wood 2020-2021 Community Profile | Virginia Beach Department of Economic Development

OUR PROCESS

The Virginia Beach Department of Economic Development provides a variety of services to help companies relocate to our community. We offer customized market research, building or site search, permitting and development assistance, and other useful resources to make relocation projects as effortless as possible.

Our services are free of charge, and business inquiries remain strictly confidential. Below is a diagram that summarizes our process:

1 3

2 4

STEP ONE STEP TWO STEP THREE STEP FOUR Contact The Virginia Beach Submit application and Staff review and Virginia Beach Development Department of Economic project summary recommendation Authority Closed Session Development (2-3 days) Briefing (monthly meetings)

5 7

6 8

STEP FIVE STEP SIX STEP SEVEN STEP EIGHT Virginia Beach Development Submit performance Staff review Grant disbursment Authority Public Action documentation (up to 30 days) (monthly meetings)

FOR MORE INFORMATION Call 757.385.6464 Email [email protected] Visit www.YesVirginiaBeach.com