Lessons learned in Economic development in South Hampton Roads

Inside Business publishes an interesting manifesto entitled “Commercial Real Estate Quarterly”. Their Mon 28 Jul 08 publication featured Q&A-style interviews about the last fiscal year with the directors of the Departments of Economic Development (DED) for Virginia Beach, Norfolk, Chesapeake and Portsmouth.

My recap:

Warren Harris, Virginia Beach’s director, cites the beach’s focused work on targeted industries and diversifying the economy as major accomplishments. VB has targeted their marketing efforts by creating new marketing materials as well as continuing to address workforce development needs.

During FY 07/08, VB created 1,513 new jobs and $240.5M in new capital investment. VB’s DED has been re-accredited through the International Economic Development Council, distinguished as only one of 23 DEDs in North America with this designation: Accredited Economic Development Organization (AEDO). Additionally, Site Selection magazine named VB one of the 10 best ED groups in the U.S.


Rod Woolard, Norfolk’s director, focused on transit-oriented development as that office’s major accomplishment. However, the disappointing lack of long-term state transportation funding was cited as a negative. The hotel and conference center construction delay in Norfolk’s downtown has been a disappointment as well. On a positive note, Norfolk touts many of the same draws as the rest of the region: a large defense-related presence, the booming port, and outstanding quality of life with rich arts and culture offerings, and medical and educational resources.

Norfolk’s biggest challenge lies in the lack of land for new development with 98% already developed. The Norfolk DED’s efforts focus on redevelopment, reuse and pursuing public/private partnerships for funding sources. The availability of new space for offices, modern warehousing, etc. has been limiting, requiring more creative uses of resources. Project financing is a challenge now and in the near future.

Steven Lynch, ED director of Portsmouth, has the APM Terminal’s opening on my birthday (07 Sept) in 2007 as the most significant accomplishment, creating a world-class maritime center. Portsmouth also suffers from lack of land with 90+% already developed. Their work focuses on re-establishing existing properties into stronger revenue generators.

The availability of credit was cited as the most significant challenge going forward.

Chesapeake’s director, Steven Wright, cites the city’s redevelopment strategy in SoNo (South Norfolk, located in Chesapeake, not Norfolk) as that office’s significant accomplishment. Chesapeake gives glowing reviews to Hampton Roads Economic Development Alliance (HREDA), as nearly 50% of international firms in Hampton Roads are located there. The uncertain state of the nation’s economy is acknowledged as now making it difficult to identify high-impact, growth-mode firms to target.

Each director positively identified HREDA as the regional organization helping to make each city more competitive than working as individual entities, leveraging the region’s assets and sharing marketing expenses. HREDA is also distinguished as an AEDO.

Relocation of company headquarters to Hampton Roads, such as Zim Integrated Shipping Services, North American, emphasizes our region as a major gateway today and in the future for U.S. and world markets. The existence of substantial assets in Hampton Roads, such as the high-profile DoD presence, globally-recognized port, and significant higher learning institutions, serves as a strategic leverage against competition from other regions.

Of note are newer, emerging markets competing for new business locations in the southeast in addition to established markets such as Richmond, Charlotte and Atlanta.

Workforce development is of great significance due to Hampton Roads’ large “renewable employment base”, i.e. students graduating from higher learning and exiting military. The biggest challenges? Retaining, recruiting and training.

The biggest lesson learned from these interviews with the area’s DEDs? In order to compete globally, Hampton Roads must cooperate regionally. Look out world, here we come!