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Two years after council push for local investment, Hampton Roads Ventures has yet to deliver • Virginia Mercury

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Two years after council push for local investment, Hampton Roads Ventures has yet to deliver • Virginia Mercury


More than two years after Norfolk’s city council directed a for-profit subsidiary of its redevelopment and housing authority to prioritize local investments, the company has yet to deliver.

In July 2022, the council passed a resolution requiring Hampton Roads Ventures (HRV) — a community development entity created by the Norfolk Redevelopment and Housing Authority (NRHA) — to make its “best efforts” to invest in the city following a Virginia Mercury investigation revealing it had allocated only a fraction of its $360 million in tax credits to Norfolk’s distressed areas.

The resolution required HRV to submit an annual report detailing its activities. The 2024 report shows $53 million in New Markets Tax Credit (NMTC) allocations across six states — with none directed to Virginia. The investments included projects as diverse as a food bank expansion in Tallahassee, a shopping center with a grocery store in the Bronx, N.Y., and a salmon processing barge in Washington (see info box).

Three years after repeated requests for interviews with HRV and NRHA officials, Alphonso Albert, chair of HRV’s board of managers and NRHA’s board of commissioners, sat down with The Mercury to defend HRV’s failure to invest locally.

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In an email ahead of the interview — copied to Norfolk’s mayor and several city council members — Albert accused the Mercury reporter of intending harm, being vindictive and “more about making mischief” than reporting the facts.

During a 45-minute conversation, Albert portrayed HRV as “a successful business” with a competitive strategy for securing New Markets Tax Credits. However, he also acknowledged limited outreach in Norfolk, where the company hasn’t funded a project since 2008.

Albert said the “primary driver” for HRV’s focus outside Norfolk is maintaining its track record to win future tax credit allocations. Changing its business model to prioritize Norfolk, he argued, could jeopardize the company’s ability to secure funding in a highly competitive process.  

“We want to be successful in obtaining and utilizing new market tax credits,” Albert said. “That’s the end game, and not to make efforts that don’t meet the objective, the successful model that HRV operates on.” He added that HRV’s success relies on “tax-ready projects” in its pipeline that align with competitive application requirements. 

However, the city council’s resolution from two years ago directed the firm to “proactively seek Norfolk projects and not rely solely upon the Norfolk Economic Development Department.” It also required marketing efforts to raise awareness about the NMTC program.

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Other community development entities, though, have demonstrated that strategies can evolve without jeopardizing funding. For example, Indy CDE in Indianapolis has secured $177 million in tax credits since 2010 for a wide range of local projects, including a YMCA, high school modernization, and a recycling facility. It focuses on eliminating food deserts, increasing access to education, and revitalizing blighted areas.  

Albert said the company’s small staff size prevents it from actively developing projects in Norfolk unless they are brought to the firm. HRV’s website lists just three employees — a CEO, a portfolio manager, and an executive assistant — and Albert suggested that adding two or three more positions might be necessary if the company were to expand its focus locally.  

HRV’s 2023 audit revealed that salaries and benefits totaled nearly $490,000, up from $463,000 the previous year. Albert said he was unaware of CEO Jennifer Donohue’s salary and would not support releasing that information. 

When asked how HRV identifies projects in places like Tallahassee, Tampa, and rural North Carolina, Albert said, “Consultants bring them to us. Consultants will see a deal and see if we’re interested in participating at one level or another, the same way we would do right here if somebody would bring us a deal.” According to the 2023 audit, HRV spent $230,000 on consultants that year.

Albert added that Donohue is also approached directly with proposals. “She’s going to look at a project that somebody says, here’s one here, but she doesn’t go out and solicit projects,” he said. 

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According to a December report from the U.S. Department of Treasury, HRV currently has $52 million in unallocated tax credits. Some of these funds may already be tied to pending deals. Treasury rules require half of HRV’s allocations be invested in rural areas. With the next application deadline approaching in late January — $10 billion available, double the usual amount — there is an opportunity to advance a Norfolk project. 

Asked what efforts HRV made to secure a Norfolk project in the past year, Albert said the company met with local lenders, including TowneBank, Truist, and Chase. However, when pressed about whether HRV had issued a request for proposals to solicit local projects, Albert said that it did not. “I will float that,” he added. “That’s not a bad idea.” 

Sean Washington, who oversees both Norfolk’s Department of Development and the city’s  Economic Development Authority, said that he hasn’t heard from HRV since discussions about a failed proposal to fund a Norfolk shopping center project in 2023. When asked why HRV hadn’t maintained contact with Washington, Albert replied, “A lot of people don’t have confidence in Sean. But Sean’s a nice guy.”

Norfolk pushes for local investment

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The 2022 city council resolution aimed at pushing HRV to invest in Norfolk projects and increase oversight followed a Virginia Mercury investigation revealing that the company had invested only a fraction of the $360 million in tax credit allocations it had received since 2003 in Norfolk. Some council members expressed surprise, admitting they were unaware of the NRHA subsidiary’s existence and questioned why it was not prioritizing Norfolk. 

HRV operates as a community development entity, which includes offshoots of banks, nonprofits, public agencies, and financial institutions. These entities apply for the tax credits  from the Treasury Department and, if awarded, attract investors who earn a 39% tax break over seven years.  

The tax credits aim to spur investment in distressed areas with the Treasury reporting that every New Markets Tax Credits dollar generates $8 in private investment. Norfolk has 16 severely distressed census tracts given the highest priority for tax credit allocations. In these tracts, poverty rates range from 31% to 80%, and unemployment rates reach as high as 40%.

HRV’s last local investment came in 2008, supporting the Fort Norfolk Plaza health center near Brambleton Avenue. Last year, HRV had pledged to back The Village, a proposed shopping center with the Urban League of Hampton Roads that aimed to eliminate a food desert. That project collapsed after the city failed to secure a state grant to help fund the development. The property later was sold to Fishing Point Healthcare, a company founded by the Nansemond Indian nation. 

HRV transferred $655,000 of its recent profits to NRHA to fund workforce development, youth services, crime prevention, and transportation support for food access and cultural events. The company also donated $144,538 to 27 local organizations, including Zion Word Days Church, My 2K Foundation, Second Calvary Baptist Church, the Virginia Arts Festival, the Beacon Light Civic League, the Urban League of Hampton Roads, and the Portsmouth Bruins Football Association, according to a list provided by Albert. 

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HRV’s 2023 audit, also shared with the city, reported net income of nearly $2 million. Since 2021, following increased scrutiny, HRV has transferred more than $3.6 million to the NRHA — surpassing the $1.3 million it had transferred over the previous 18 years.

Mayor and council num on recent report

Norfolk Mayor Kenneth Alexander did not respond to requests for comment for this story, but in May 2022 he urged HRV to prioritize projects in the city. “The point is to spur economic development in areas that but for the new markets tax credits there would not be any investment. That’s the reason they exist,” he said at the time. “I’m not suggesting that they shouldn’t do business in other markets, rural markets. But this is the city of Norfolk. We need to spur economic growth.” 

A spokesperson for NRHA said Executive Director Nathan Simms would not grant an interview. According to the 2003 city council resolution that authorized HRV’s creation, the entity is managed by NRHA commissioners. 

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Four of the nine NRHA commissioners, including Albert, are on the Board of Managers of HRV. Albert said the HRV board met quarterly. While they don’t jointly discuss the annual applications for tax credits tied to projects, he said Donohue shared them for comments. He also noted that  HRV works with a nationwide advisory board to consult on investments. 

“I’m not the operational CEO. I’m talking principally who we are and I think defending our record and this organization,” Albert said.

Norfolk City Manager Pat Roberts also declined to comment through a spokesperson. Council member John “JP” Paige was the only elected official to respond. Paige, who represents some of Norfolk’s most vulnerable census tracts, said he hopes that HRV can identify a local project to support. 

“I was very excited about the grocery store that was coming, but the state didn’t come through,” Paige said, referring to The Village proposal. 

Other Virginia housing authorities have formed development entities like HRV that match projects with investors drawn to the tax breaks offered through the New Markets Tax Credits (NMTC) program. But they focus on projects in the cities or regions, often plowing the administrative fees back into their communities and holding public meetings. Hampton Roads Ventures does not hold public meetings and has declined to make its records subject to the Freedom of Information Act. 

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In cities like St. Louis, Pittsburgh and Cleveland, development entities have used the tax credits to stimulate major local investments, generating jobs and revitalizing their neighborhoods. . 

St. Louis has leveraged $543 million in NMTCs to fund 103 developments and businesses, creating 6,800 jobs. Pittsburgh has utilized $238 million for projects such as affordable housing, transit hubs, and mixed-use development. Cleveland’s development team has financed urban schools athletic centers, job creation hubs and mixed-use spaces to drive growth.

 Albert defended the HRV’s broader focus, saying it brings indirect benefits to Norfolk.

“We may be the only one that doesn’t support programs in our urban setting or in the area that we operate in, but we do bring very positive benefits to the city that we operate in,” he said. “I guess it’s a game of priorities.”

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Va. governor concerned redistricting battle could make voters reluctant to cast ballot this fall – WTOP News

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Va. governor concerned redistricting battle could make voters reluctant to cast ballot this fall – WTOP News


Days after Virginia Democrats filed an emergency appeal with the U.S. Supreme Court as part of their ongoing redistricting battle, Gov. Abigail Spanberger said she’s focused on the fall midterm elections and ensuring voters are motivated to turn out.

Days after Virginia Democrats filed an emergency appeal with the U.S. Supreme Court as part of their ongoing redistricting battle, Gov. Abigail Spanberger said she’s focused on the fall midterm elections and ensuring voters are motivated to turn out.

After a bill signing at Inova Schar Cancer Institute on Wednesday, Spanberger made her most extensive public comments about the state’s redistricting plan. She cited the state’s May 12 deadline for any map changes, and said as a result, this year’s elections will proceed under the current map.

Spanberger’s remarks came a few days after Virginia’s Supreme Court struck down the Democrat-led redistricting push. Primaries in the state are scheduled for Aug. 4, with the November general election to follow.

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“What needs to happen is we need to focus on the task at hand, which is winning races in November,” Spanberger said.

“I believe, somewhat doggedly, that we will win two to four seats in the House of Representatives. … That is my goal. That is what I know is possible.”

The map Democrats proposed, experts said, could have resulted in a 10-1 Democratic majority representing Virginia in the U.S. House. But Republicans challenged the process Democrats in the General Assembly used to put the constitutional amendment before voters.

In a 4-3 opinion issued Friday morning, Virginia’s Supreme Court sided with the Republican challengers.

U.S. Supreme Court Chief Justice John Roberts gave Republicans until Thursday evening to respond to Democrats’ request for the emergency appeal.

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Spanberger defended the process the General Assembly used, adding: “I think I certainly would have wanted to, and did want to, see a different outcome with the Supreme Court ruling.”

Over three million people participated in the rare April special election, and Spanberger said she’s concerned those voters “have had the experience of casting a ballot in an election that was very important to them, including those on both sides of the referendum vote, only to have it be overturned, essentially, by the Supreme Court of Virginia.”

Elected officials, she said, will have to work to ensure “that people know that their votes do matter, and that when it comes to the ballot they’re going to cast — whether it’s for a primary over the summer or for the general election into the fall — that they shouldn’t feel depleted or defeated, that their votes matter.”

Spanberger called the appeal to the U.S. Supreme Court “important, but when it comes to the execution of elections, no matter the outcome in that case, we will be running our elections beginning next month with early voting on the current maps that we have.”

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What does ‘election’ mean? One answer doomed Virginia’s new congressional map | CNN

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What does ‘election’ mean? One answer doomed Virginia’s new congressional map | CNN


Virginia’s Supreme Court dealt a blow to Democrats last week in the tit-for-tat redistricting war playing out ahead of the midterms.

In a 4-3 ruling, justices nullified a new congressional map that could have given the Democrats four additional seats in the House of Representatives. Their argument centered on whether state lawmakers had followed proper procedure when they put a constitutional amendment on the ballot to allow for the redistricting. The procedural question hinged on a linguistic technicality: What constitutes an “election”?

EDITOR’S NOTE:  CNN’s “Word of the Week” brings you the meaning behind the words in the news.

Traditionally — and in Virginia’s case, under the requirements of the state constitution — states have redrawn their congressional districts every 10 years, when a new census comes out and the 435 members of the House are reapportioned according to the states’ new shares of the population. But President Donald Trump, facing dismal polls and the risk of losing his party’s already tenuous House majority, has urged Republican-controlled states to launch an aggressive mid-decade round of redistricting, in the hopes of gerrymandering Democratic seats off the map.

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Democratic-controlled states like California and Virginia have set out to draw gerrymanders of their own, aiming to wipe out Republican seats. Virginia voters, in a referendum last month, agreed to amend the state constitution to “temporarily adopt new congressional districts to restore fairness in the upcoming elections,” then to revert to the old rules after 2030.

That vote was meant to be the final part of the multistep process for amending the Virginia constitution. Before an amendment can go to a public referendum, it needs to be approved by the state legislature on two separate occasions: once before “the next general election,” and again after that election, under the newly chosen legislature.

The previous Virginia legislature passed the amendment on October 31, 2025. Election Day followed on November 4. The newly elected legislature then re-passed the amendment on January 16, 2026, to send it to the voters on April 21.

But four Virginia Supreme Court judges, three of them confirmed under Republican-controlled legislatures, ruled that the April voting was invalid. Although two successive legislatures had approved the amendment, the court argued that the first vote, back in October, had come too late — rather than voting before the election, as the constitutional timetable required, the legislature had voted after the 2025 general election was already happening.

In doing so, the court defined the “election” as having come into existence when early voting commenced on September 19, and not as merely taking place on Election Day. By the time Virginia’s General Assembly approved the amendment on October 31, the court argued, more than 1.3 million Virginians had already cast their ballots and therefore could not use their votes to express their approval or disapproval of the proposal.

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“The definition of ‘election’ has always broadly denoted the ‘act of choosing,’” Justice D. Arthur Kelsey wrote in the majority opinion.

Citing early dictionaries from lexicographers Samuel Johnson and Noah Webster, as well as legal dictionaries such as Black’s Law Dictionary, Kelsey devoted several pages of the opinion to parsing the meaning of an “election.” He argued that average citizens who cast their ballots early would likely understand themselves to be voting in the election. “This lexical sense of the noun ‘election’ must be distinguished from the noun phrase ‘election day,’” he wrote.

He continued, “The metes and bounds of an election begin with the point of casting votes and end with the point of receiving votes and closing the polls on the last day of the election. Election Day is the boundary marker for the last act constituting an election.”

The minority took issue with this definition. An election, the justices on the losing side countered, is the event that happens on Election Day.

“By focusing on the legislative history, dictionary definitions, and how legal scholars might interpret the term ‘election,’” Chief Justice Cleo Powell wrote in dissent, “The majority fails to apply the most basic tenet of interpretation of constitutional provisions: looking to the language of the constitution itself.”

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Powell argued that the majority’s definition of “election” contradicts how the word is defined in state and federal law. She cited a provision of Virginia’s constitution that states that the members of the House of Delegates “shall be elected … on the Tuesday succeeding the first Monday in November.” She also cited the Virginia code, which indicates that a “general election” is “an election held in the Commonwealth on the Tuesday after the first Monday in November.”

To make its point, the dissent ventured into metaphysical considerations about the mechanics of time. Treating the early voting period as part of the election would create a “causality paradox,” the dissent argued. “An election is a process that begins with early voting, but early voting must precede an election by forty-five days,” Powell wrote. “The majority’s definition creates an infinite voting loop that appears to have no established beginning, only a definitive end: Election Day.”

The dissent argued that the majority’s definition of “election” poses other conundrums as well: For example, Virginia law stipulates that voters can’t be compelled to attend trials during the time of an election. Does this mean that the courts are effectively hamstrung for several weeks from the start of early voting to Election Day?

By some assessments, both sides made reasonable and solidly sourced arguments. But the degree to which they fixated on the definition of “election” seemed to strike at least one analyst as pedantic. Vox’s Ian Millhiser put it this way: “Rather than producing two eye-glazing opinions fighting over the meaning of a word whose definition appears to shift depending on both linguistic and historical context, the justices would have produced a better opinion if they had asked a more basic question: What is the relevant provision of the Virginia Constitution actually supposed to accomplish?”

That more basic question is, in some ways, harder to answer.

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The court’s majority wrote that the laborious process of amending the constitution gives voters both an indirect and a direct opportunity to voice their views on a proposed change, voting for or against the legislators who initially approve an amendment, and then voting on the amendment itself. But if the justices were concerned about the will of the 1.3 million early voters who cast their ballots before the legislators approved the redistricting amendment, they seemed to gloss over the more than 1.6 million Virginians who voted in favor of the new maps, says Carolyn Fiddler, a Virginia state politics expert who has previously worked for Democratic and progressive organizations.

“How can they say that voters didn’t have a say?” she says. “Voters had a say and a clear majority.”

The text of Virginia’s Constitution doesn’t expand on why the constitutional amendment process is structured the way it is. But what it doesn’t say is illuminating, says Quinn Yeargain, a law professor at Michigan State University. Virginia’s previous constitution, from 1902, specified that the legislature must publicize a proposed amendment to voters three months before the intervening election. When the constitution was revised in 1971, that requirement was omitted.

“So they effectively made it easier, then, to amend the constitution,” Yeargain says. “At that point, they knew exactly how to use the words to achieve the kind of thing the majority said that it was trying to achieve. And they took those words out.”

Democratic officials in Virginia have asked the US Supreme Court to reinstate the new map for the midterms, though the emergency appeal is unlikely to succeed.

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The Virginia Supreme Court ruling, with its insistence that an election begins at the first opportunity for balloting, stands in apparent contrast to other redistricting decisions. After the Supreme Court’s Voting Rights Act decision in Louisiana v. Callais made it harder for voters of color to challenge redistricting plans as discriminatory, Southern states have scrambled to redraw their congressional maps in ways that favor the GOP — in some cases, after early votes in primary elections had already been counted. The new maps will make this year’s House elections the least competitive on record, the journalist G. Elliott Morris wrote in his Substack newsletter Strength In Numbers.

The current redistricting war makes for a “deeply dissatisfying situation from beginning to end,” Yeargain says. On its own, Yeargain says he doesn’t much care for Virginia’s proposed redistricting amendment, but the nationwide struggle goes beyond the individual merits of each state’s plans.

“Instead, we’re asking a broader question,” he says. “And that is whether this year’s congressional elections are going to be legitimate in some form or another.”

What is an “election,” exactly? Virginia’s Supreme Court majority sought an answer in dictionaries, which define the word as the act or process of choosing. But who is doing the choosing? As Republicans aggressively redraw electoral maps at the behest of the president, and as Democrats attempt to counterbalance those efforts with their own redistricting, it appears that a more consequential election — one in which politicians choose their voters — is already well underway.

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Headlines from across the state: Virginia becomes first Southern state to mandate paid family and medical leave for workers; more …

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Headlines from across the state: Virginia becomes first Southern state to mandate paid family and medical leave for workers; more …


Here are some of the top headlines from other news outlets around Virginia. Some content may be behind a metered paywall:

Politics:

Virginia becomes first Southern state to mandate paid family and medical leave for workers. — Virginia Mercury.

Local:

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Former Richmond Free Press building sold to apartment developer for $2 million. — Richmond Times-Dispatch (paywall).

Cavalier Hotel property could be sold to real estate investment firm. — The (Norfolk) Virginian-Pilot (paywall).

Richmond judges take legal action against city government over courthouse conditions. — The Richmonder.

Sports:

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Ex-Virginia Tech basketball coach Johnson agrees to become Ferrum coach. — The Roanoke Times (paywall).

Weather:

For more weather news, follow weather journalist Kevin Myatt on Twitter / X at @kevinmyattwx and sign up for his free weather email newsletter. His weekly column appears in Cardinal News each Wednesday afternoon.

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