Neopestalotiopsis disease, which first appeared several years ago in Florida, can cause light to dark brown spots on plant leaves and rotting of the fruit. To avoid it, some local growers started getting their plants from a supplier in Canada. But now, major nurseries there are also seeing symptoms, and they’ve recently warned the fruit growers.

“They are basically canceling orders (and in many cases refunding the deposit) or telling plug plant producers and farmers to take plants at their own risk — no reimbursements for bad or infected plants delivered this year,” said Phil Brannen, a professor in the Plant Pathology Department at the University of Georgia, in an Aug. 21 post on the university’s cooperative extension’s website.

It’s not the first time Hampton Roads has dealt with a strawberry disease, but this one could have a major impact on growers who count on the popularity of the fruit.

“That’s a major crop that draws the consumers to the farms,” said Jayesh Samtani, associate professor and small fruit extension specialist at the Hampton Roads Agricultural Research and Extension Center. “It’s the first crop that gives you fruit in the spring season.”

The disease can reduce a grower’s harvest by as much as 50%, Samtani said.

“It’s scary for sure,” said Roy Flanagan, Virginia Beach’s agricultural extension agent and owner of Flanagan Farms, which offers u-pick strawberries in the spring. “It’s a new enemy of the plant that you’ve got to figure out to combat.”

Virginia Beach is the commonwealth’s largest producer of strawberries thanks to the area’s temperate climate and nutrient-rich soil. The value of the crop in Virginia Beach ranges from $750,000 to $1 million per year. Meanwhile, a strawberry farm in Virginia Beach sees an estimated 1,500 visitors each week in May, according to the city.

Some area farms were able to order healthy cutoffs, or bare root plants, from California this year before they sold out, according to Samtani. Flanagan Farms and Cullipher Farm are among those. Others will take the risk with the Canadian plants or cancel their orders.

The situation likely will have long-lasting repercussions.

“The disease has a tendency to stay in the soil from one season to another,” Samtani said. “Even next year, if your plants come in clean, it would not be advisable to use the same site.”

Cindy Weatherly, who operates a farm in Pungo and Cindy’s Produce, a farm stand on Harpers Road, will skip growing strawberries this year to avoid contamination.

“This is an aggressive strain,” Weatherly said. “I don’t want to introduce a disease into my soil that I know nothing about until I watch someone else take care of it.”

To help stave off the disease, which thrives in warm climates, some growers will receive their plants a little later than normal, Samtani said. Strawberries in southeast Virginia are typically planted from last week of September through the first week of October. Chandler, Sweet Charlie, and Ruby June varieties are mostly grown locally.

Samtani plants berries at the research center each year. He’s expecting strawberry plants to arrive Oct. 10.

The Henley family is one of the city’s largest strawberry producers, growing them across 10 acres. They received the tips of strawberry plants from a supplier in Nova Scotia and have been rooting them in trays, said farm owner Barbara Henley. She’s already noticed some signs of the disease in one of the varieties, but is on track to plant in three weeks.

“Ours look fairly good,” Henley said, also a City Council member. “I’m afraid to say too much.”

The research center is advising growers about how to mitigate the disease if plants are infected. One option is fumigating the soil, which involves injecting a synthetic chemical gas. Sanitizing clothing, equipment, machinery and pruning tools also will be critical.

And fungicidal treatments can also help keep the disease under control. However, the most effective chemical — thiram — is being phased out by the Environmental Protection Agency, Samtani said.

Some factors, like weather, will be out of the control of growers. A dry, mild spring could keep the disease at bay.

“We don’t really know what’s going to happen until it all unfolds and the season progresses,” Samtani said.

Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com

Virginia Beach residents Richard “R.K.” Kowalewitch and Donald Edwards petitioned the Supreme Court of Virginia to force the Virginia Beach Voter Registrar and Electoral Board to remove Mayor Bobby Dyer and Councilwoman Sabrina Wooten from the ballot.

They claim Dyer and Wooten violated the city charter by not tendering their resignations, effective Dec. 31, before qualifying for the ballot. The plaintiffs contend that the registrar and the board placed “ineligible and unqualified” candidates on the ballot.

“They have to put the resignation letter in,” Kowalewitch said by phone Wednesday. “It wasn’t done.”

Dyer’s term as mayor expires Dec. 31. Wooten represents District 7; her term also expires Dec. 31.

Virginia Beach’s charter states: “In the event any councilman, including the mayor, shall decide during his term of office to be a candidate for mayor, he shall tender his resignation as a councilman not less than ten days prior to the date for the filing of petitions as required by general law. Such resignation shall be effective on December 31, shall constitute the councilman’s intention to run for mayor, shall require no formal acceptance by the remaining councilmen and shall be final and irrevocable when tendered.”

Kowalewitch contends resignation letters would have needed to be filed by June 18.

Wooten submitted a resignation letter, effective Dec. 31, to City Clerk Amanda Barnes on Aug. 27. Wooten declined to comment about the lawsuit when reached by phone Wednesday.

Dyer has not submitted his resignation letter, according to Barnes. The mayor also declined to comment.

Another mayoral candidate, council member Chris Taylor, provided a resignation letter, also effective Dec. 31, to the city clerk May 30. Taylor is in the middle of his four-year term as the District 8 representative.

The fifth mayoral candidate, former Councilman John Moss, doesn’t currently hold office. The upcoming election will be Kowalewitch’s fourth run for mayor.

Kowalewitch and Edwards are seeking a writ of mandamus from the court, which is a judicial order that requires a government official to comply with the law. The petition names Virginia Beach Voter Registrar Christine Lewis and the city’s Electoral Board: chairman Jeffrey Marks, vice chair Nanette Miller,  and secretary Lauralee Grim. Lewis declined to comment on the lawsuit. Marks, on behalf of the board, also declined to comment.

The legal action was filed ahead of the start of early voting, which begins Sept. 20. It references a recent opinion by the Virginia attorney general on a election matter unfolding in neighboring Chesapeake, though the issue at hand there appears unique to the city’s charter.

Chesapeake City Council filed a lawsuit against sitting member Don Carey in a dispute over whether he should have resigned — in this case, officially stepped down from his current seat — in his bid for mayor.

The Chesapeake city charter calls for a resignation by June 30, six months before Carey’s term ends. But it was established when Chesapeake held elections in May.

General Assembly action in 2021 shifted the city’s elections to November, but the accompanying provision for resignation was not altered, according to an opinion issued in May by Virginia Attorney General Jason Miyares. His opinion concluded that Carey was required to step down by June 30.

In contrast to Chesapeake, the Virginia Beach charter states that the resignation to run for mayor must be made 10 days prior to the deadline for filing a petition to run, which occurs in June. But it is effective Dec. 31.

Kowalewitch says Miyares’ opinion proves candidate eligibility requirements in a municipal charter must be upheld.

“There’s a value in that,” said Kowalewitch.

He cited another part of the city charter which states that the term of office for each council member continues until his successor has been duly elected and qualified. Kowalewitch worries if Dyer and Wooten didn’t follow the proper resignation procedure, they could stay in office beyond their term should a problem arise with the election of their successor.

Kowalewitch and Edwards previously filed a federal lawsuit contending that the city illegally changed its voting system prior to the 2022 election. The lawsuit was dismissed. A separate state lawsuit challenging the city’s district voting system was allowed to proceed in circuit court.

When the resign to run issue arose in Chesapeake, The Virginian-Pilot asked Virginia Beach City Attorney Mark Stiles if Dyer and Wooten each was required to submit a letter of resignation.

“No,” Stiles wrote back in an email on Aug. 6. “The resign to run provision states that the effective date of the resignation is December 31. Because their terms end on that date anyway, there is nothing for them to resign from.”

On Aug. 12, The Pilot asked Stiles to provide more context as to why Dyer and Wooten were not required to submit a resignation letter.

“Because their terms naturally expire, there is nothing for them to resign from and there is no need for a special election to fill the balance of their terms,” Stiles wrote.

On Wednesday, Stiles said he would not comment on the lawsuit because the city’s not a party in it.

Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com

The review comes on the heels of an intense meeting last week when Virginia Aquarium Foundation President Dan Peterson addressed the council for the first time about the group’s desire to partner with the city on the facility’s future. The City Council, after learning the aquarium needs major renovations to the tune of hundreds of millions of dollars, has been considering leasing it to a private third-party.

City Auditor Lyndon Remias presented the findings to the City Council today.

The audit revealed that the city operating expenditures were nearly $20 million in fiscal year 2024, and the city fell short with a $3.7 million loss in revenue. Despite the shortfall, the city had anticipated a worse scenario, setting aside nearly double that amount as a subsidy in the budget.

Aquarium foundation wants to collaborate with Virginia Beach, pause search for private operator

The foundation’s expenses topped out at $5.2 million, but it was able to stay in the black with an estimated $827,000 in revenue after expenses.

The group is not required to provide the city with detailed revenue and expense transactions, according to the audit. One of Remias’ recommendations is to add a “right-to-audit” clause to the agreement between the city and the foundation so that his office can require the foundation to provide those numbers.

At the Aug. 27 council meeting, Peterson said the foundation didn’t provide financial information that’s not required in the agreement because he was not told how the city planned to use it.

“I have a fiduciary responsibility not only to the foundation but to all of our constituents, especially our volunteers and especially our donors, to ensure that that information would be utilized in a manner that takes into consideration the best interests of the foundation,” Peterson said.

Council members are expected to vote Tuesday night on whether to share the cost of an initial $100,000 inspection with the foundation — at the nonprofit’s request — to figure out the extent of renovations needed on three large tanks, which hold shark, seals and sea turtles. The audit recommends moving forward with a detailed assessment.

The city owns the aquarium’s buildings and grounds and operates its facilities. The foundation owns the exhibits and the animals. Funding for the aquarium comes from a variety of sources, including admission fees, memberships, retail sales, grants and sponsorships.

The audit also notes that per the agreement the foundation retains all revenues from concession sales, boat trips and the aquarium’s Adventure Park activities. Remias recommends a review of the revenue distribution given the fact that the city owns the facilities.

Virginia Aquarium currently utilizes 48 acres of land, operates out of three buildings, including one that is closed to the public, and has a visitor capacity of approximately 3,660 per day. It’s key components include marine life exhibits, nature trails, educational programs and research.

Remias recommends that the aquarium’s three animal care accreditations, which are currently held by the foundation, be transferred to the aquarium itself, so that the city can control that aspect, especially since the city pays insurance coverage on the facility. Such a change could also make the aquarium’s animal records available to the public.

The audit also delves into the aquarium’s Stranding Response Team. Its area of responsibility for stranded marine mammals and sea turtles encompasses over 7,200 miles of the state’s coastal shorelines. Remias recommends seeking federal and state funding for the aquarium’s rescue, research and conservation efforts. The foundation’s research and conservation expenditures in fiscal year 2023 topped out at $1.3 million, according to the audit.

Remias also recommended considering the pros and cons of requiring the aquarium director to also serve as the foundation’s executive director as outlined in the agreement.

“Inherently, you’re putting the director in two roles,” said Remias. “That increases the risk, in fact or appearance, of a conflict of interest.”

Part of the review focused on a survey of aquarium employees and foundation members, many of who became unnerved when the city pursued privatization options earlier this year and felt left out of the conversation.

In March, City Manager Patrick Duhaney had recommended that the city continue to engage third parties to figure out what kind of offer can be brought forward while communicating with the foundation. Meanwhile, some aquarium employees resigned amid the turmoil.

Remias’ audit recommends ways to address “low morale.”

“Leadership should engage in transparent communication, actively involve employees in strategic planning, and provide reassurance through clear, actionable steps that demonstrate a commitment to navigating challenges together,” the audit states.

Cynthia Whitbred-Spanoulis, aquarium director, responded to the recommendations in an interoffice memorandum.

“The aquarium leadership team was not significantly involved in the discussions and decisions made over the past year regarding the future of the facility,” she wrote. “For accuracy, the term ‘leadership,’ in this context, should refer to the City Manager’s office.”

The audit was part of a scheduled review of city assets, but several council members agreed it was timely given the ongoing conversations about next steps.

“We should certainly take these recommendations into account,” said Councilman Worth Remick.

Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com

“When you think about it, 329 years ago, we had relatives standing possibly where we’re at today farming,” said Billy Vaughan, reflecting on his family’s history during a recent interview. “That’s pretty cool to take in.”

Vaughan, 52, grew up helping his grandfather care for the family farm and decided to carry on the tradition.

But since taking the reins, Vaughan has faced rising operational costs, leading him to rethink his goals. Vaughan, along with some other local generational farmers, have changed their business models to stay viable.

Many are trying new on-farm experiences, including markets, farm-to-table events, educational field trips and u-pick options. They’re also focusing on more sustainable practices with less reliance on costly herbicides and fertilizers.

And it’s working, says David Trimmer, director of Virginia Beach’s Department of Agriculture.

“People are passionate about certain things, and that adds fresh blood, new ideas,” Trimmer said. “Anything that adds value to the existing farm operation and helps differentiate themselves from what others are doing is great.”

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Economic impact

Agriculture is Virginia’s largest private industry and has an economic impact of $82.3 billion annually, according to the Virginia Department of Agriculture and Consumer Services. The commonwealth has 41,500 farms covering more than 7 million acres. In Virginia, 97% of farms are family owned.

But over the past decade, farmland area has shrunk as properties are converted into other uses, including housing and commercial development. Virginia lost about a million acres of farmland from 2012-22, according to data from the 2022 Census of Agriculture.

“The ones that are left are the ones that were able to flex and adapt their businesses,” said Robert Harper, grain marketing manager for Virginia Farm Bureau.

Despite overall loss of farmland across the state, the economic impact of agriculture in Virginia increased from 2016-21, according to a study conducted by the University of Virginia’s Weldon Cooper Center for Public Service.

In Virginia Beach alone, agriculture had a $182 million impact on the economy in 2023. The top crops harvested in Virginia Beach are corn for grain, soybeans, hay and vegetables.

Virginia Beach has mostly protected its farmland from development with planning policies centered around a growth management tool called the “Green Line.” Formally established in the city’s 1985 master land plan, the line runs mainly along Princess Anne Road, separating the northern and southern parts of the city.

Development is allowed south of the Green Line, but proposals have to comply with zoning and design guidelines in the area, which limit density and encourage open space. Any nonconforming use would require approval by the Planning Commission and the City Council.

While some crops grown in Virginia Beach are exported across the globe, others stay local.

“Our grain farmers feed the world and our fruit and vegetable farmers feed the community,” said Roy Flanagan, Virginia Beach agricultural extension agent.

___

A growing meat market

While some granaries in Virginia Beach continue to find success in exports or selling grain in bulk to domestic companies for animal feed, rising costs in labor, fuel and machinery have forced others down a different path.

The largest growth area in Virginia Beach agriculture in recent years is pasture-raised protein, or direct-to-consumer meats.

Vaughan, with the help of one of his daughters who raised steer through the local 4H program, started to focus on Hereford cattle several years ago. He launched a beef company called Coastal Cattle and opened The Meat Shack, where he sells his own products as well as items from other local farms.

Coastal Cattle has been growing fast between its on-farm experiences and the meat market. The Vaughans partner with other farms and businesses to host farm-to-table chef-prepared dinners on the farm in the spring and fall.

“We’re usually sold out every event,” he said.

Over on the Pungo Ridge, another generational farm family has been trying innovative approaches and diversifying its offerings to stay relevant and successful in modern times.

Cullipher Farm started raising cattle and using rotational grazing to improve the farm’s soil and reduce its use of herbicides and fertilizers, which has become increasingly important in light of challenges in today’s world.

“A lot of those are foreign products, and with global conflicts they’re hard to get,” said Jeb Cullipher, 25, who started working full-time on the farm with his father about five years ago.

For example, Ukraine was a large producer of nitrogenous fertilizer, but Russia’s invasion of the country in early 2022 affected production and price. The ensuing war led to transportation interruptions in the Black Sea region and new trade restrictions, which diminished already limited fertilizer supplies and drove up prices, according to the U.S. Department of Agriculture.

Fertilizer costs account for nearly 45% of operating expenses for U.S. wheat and corn farms, according to the 2022 commodities data from USDA’s Economic Research Service.

Higher fertilizer prices have led to farmers adjusting their production practices.

The Culliphers previously grew soybeans and field corn, but now they plant grasses and other crops for cows to graze on. Eventually, they will be able to grow produce in the soil using fewer chemicals, Jeb Cullipher said.

“I don’t want to be that dependent on shipping and trade,” he said. “We grow food and to a certain extent it shouldn’t be that complicated. I have to believe that there’s a simpler, better way to do it.”

___

Providing a diverse experience

As local farmers look for new sources of income, on-farm experiences have proven worthwhile in recent years, including pick-your-own produce, corn mazes and other special events, Flanagan, the local agricultural extension agent, said.

“Twenty years ago folks might come and get three bags of corn for freezing, now they come and get ears of corn for dinner,” he said, noting the change in consumers’ eating habits.

The Vaughan’s farm offers public school field trips with hayrides in the fields to learn about their farming practices. Vaughan had about 500 children visit last spring.

Jeb Cullipher has brought a fresh perspective to diversify his family’s farm as well. It now offers a sunflower field, play area, farm animals, pick-your-own produce, themed corn mazes and an on-site market.

“My dad luckily is very open to my ideas and my input,” said Cullipher, standing beside a row of peach trees on a recent morning. “He’s vested in me being a part of this, and in turn, he gives me the opportunity to run with things, to feel like I have some autonomy, and I’m not just taking orders from him.”

He and his father, Mike, also have been growing Cullipher Farm’s u-pick options in recent years. Produce sold by u-pick and in the market on the farm property now makes up 85% of the farm’s income.

“It’s the only way that we can survive, really,” said Mike Cullipher.

Depending on the season, they offer strawberries, no-spray blueberries, no-spray blackberries, grapes, peaches, nectarines, apples and pumpkins.

“The idea is to have something essentially from the time we open the first of April until Halloween,” said Jeb Cullipher. “Any day of the week you can go take it off the vine, tree, bush, whatever it is, you can go harvest your own fruit fresh out of the field any day of the week except for Mondays because we’re closed.”

And customers don’t seem to mind driving out of their way for a basket of fresh fruit or package of vacuum-sealed farm fresh beef. Several people were shopping at Cullipher Farm Market on a sweltering August morning, including Barbara Smith of Virginia Beach.

“I’d hate for the summer season to get away without making a visit out here,” she said.

___

A family affair

Bringing the next generation of farmers into the fold is critical for success, says Jim Salmon of Salmon Inc. in Creeds. His family’s granary export program moves soybeans from the Mid-Atlantic region to destinations all over the world.

Salmon said having all three of his adult children — Sterling, Crystal and James — involved in the business has been “a big asset.”

“They bring new perspectives and new ideas on how to do things,” he said.

Mike Cullipher, 57, agrees. He said the business benefits from his son’s fresh ideas and work ethic.

“He has the drive and the mental capacity to absorb and take it in and truly contribute to the operation,” Mike Cullipher said.

Even as farms adapt and change, success still boils down to a willingness to put in the hours, sweat and tears.

“There are days I like it, and there are days I don’t,” Vaughan said. “It’s a job. It’s every morning. You got animals that depend on you to feed them, water them and take care of them.

“Doesn’t matter if it’s your birthday, and you can guarantee every holiday your help is taking off.”

Several of his family members live in houses on the family farm, and Vaughan hopes one day the next generation will carry on the tradition.

“(Billy) has played a pivotal role in keeping this legacy alive,” said Vaughan’s cousin, Whitney Williams. “Because of him, we all get to live this beautiful life on the farm, seeing it active as our ancestors did.”

Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com

“It was a big milestone for the project to come out of the ground,” said John Lawson, executive chairman of W.M. Jordan Co., the project’s general contractor. “We thought it would be a nice twist to have a bottoming out party especially given the challenges we’ve had with environmental issues.”

The mixed-used development project on three city blocks in the heart of the Oceanfront resort area had faced months of setback while dealing with underground debris and water contamination. Despite that, developers say the surf park and entertainment venue are still on schedule to open next May. 

Virginia Beach owns the Atlantic Park land and is a partner with Venture Realty Group on the project. The first phase now under construction costs a whopping $350 million, according to Lawson. It includes the surf park, an entertainment venue, apartments, offices, retail, restaurants and two parking garages.

The project also has the backing of music and fashion star Pharrell Williams, who was raised as a young child near the site, in the Seatack neighborhood.

Construction was temporarily delayed over the winter when groundwater that had built up inside the hole that will become the surf park contained high levels of iron and arsenic. The 10-foot-deep excavated area runs along the western side of Pacific Avenue between 18th and 20th streets. The deepest part of the lagoon is 5 feet below sea level.

After the contractor installed a new filtering system, dewatering restarted in May. Also, early on in the construction process, debris and trash discovered under the site from the old dome civic center and other projects had to be removed.

“That site’s been built and rebuilt on for over 100 years,” said Lawson. “We didn’t know those things until we started digging.”

With the lagoon’s foundation now in place, it’s full steam ahead.

Wave technology from Spain-based Wavegarden will be installed this fall, and by the end of this year, the surf lagoon structure will be completed, Lawson said. The 2.5-acre surf park eventually will hold 6 million gallons of water, he said.

Construction has begun on Atlantic Park’s “Surf Central” building, which includes cabanas overlooking the lagoon. The building will include 20 rentable units, a private surf club area and a restaurant.

The custom Wavegarden Cove will be run by Beach Street Development and Operations. It will offer more than 20 different wave profiles ranging from 4 to 6 feet for all levels of surfing from beginners to pros. Sessions will last 55 minutes and start on the hour, according to Blake Hess, chief operating officer/partner.

Hess has worked in operations on multiple surf parks, including the Surf Ranch in California’s Central Valley and NLand Surf Park in Austin, Texas. But he notes that Atlantic Park is the first surf lagoon to be in the heart of a city andso close to the ocean.

Bookings for surf sessions are expected to open around Thanksgiving, according to the developer. At Atlantic Park, each surfer will have the opportunity to catch 12-15 waves per session, Hess said.

Pricing has not been locked in yet, Hess said. Memberships will be available but it will be different than a water or theme park because of limited capacity.

The water won’t be heated in the winter, but guests will be able to take a warm shower after a session.

“In the lagoon you are constantly moving, either surfing or setting up for your next wave, unlike the ocean where you sometimes sit for extended periods waiting for the next set to roll in,” Hess said. “The constant movement in the lagoon keeps you warm!”

The on-site entertainment venue will open at the end of May, Lawson said. It will have capacity for 3,500 people inside and space for an additional 2,500 people outside. Live Nation will operate it.

It will feature an airplane hanger door in front of the building leading to the outside viewing area, Lawson said.

“If you have a storm coming off the ocean you can close it up so you won’t have any issues with weather,” he said. “When the storm passes, you can open it up.”

Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com

The overrun adds roughly 10% to the capital improvement project, bringing the total cost up to $93 million. The total includes an increase of more than 25% on the $53 million construction contract, which will require the City Council’s approval.

Cost inflation, supply chain impacts, unforeseen circumstances and scope of work changes have impacted the project.

“It’s due to a lot of the same factors we’ve seen on other projects as we’ve gone through the pandemic and the post-pandemic inflation,” said L.J. Hansen, director of public works, during a Tuesday City Council meeting.

Three municipal buildings are undergoing renovations and each of them have been renumbered. They include: old City Hall (now Building 3), Building 2 (now Building 11) and Building 11 (now Building 33).

The city’s municipal center was the site of the 2019 mass shooting, when a disgruntled city employee killed 12 people and injured six others before he was fatally shot by police. Nearly 400 people, including staff from four departments, worked in former Building 2. They were relocated to temporary, leased offices.

“This was right after 5/31,” said City Manager Patrick Duhaney at Tuesday’s meeting. “The City Council made a decision that no employee that was in Building 2 would have to come back to Building 2.”

The additional $8.4 million Hansen is requesting now would cover $2.4 million in floor plan changes in Building 33, $1.5 million increase in cost of furniture and demountable walls, and $500,000 to soundproof police interrogation rooms, among other items.

The project has already included nearly $12 million in construction change orders including relocating and upgrading data center equipment, adding storm water structures and installing ballistic glass in former Building 2, which was renovated into a police headquarters. Most of the renovation work to former Building 2 has been completed and police staff started working there this year.

The main entrance of the Colonial-style three-story brick building is now adjacent to the new City Hall, a separate $50 million project, which opened in 2022.

First look at renovations to building where Virginia Beach mass shooting occurred

Former City Hall, now referred to as Building 3, has been undergoing renovations for two years and completion is expected in the spring. There have been some delays including asbestos remediation and the need for a waiver that was granted by the City Council for the use of synthetic slate on the roof. Public utilities and planning employees will move into the building next summer.

Construction on Building 33, which was the former police headquarters on Princess Anne Road, began in March after the police department headquarters relocated. Public works and information technology staff will occupy it by next winter.

Hansen said money from two other city capital improvement projects — future relocation of the Beach Maintenance Facility and upgrades at the Central Plant — could be transferred to cover the municipal center funding gap. Hansen said funding for those projects could be reinstated at a later date.

The City Council will vote on the transfer option in September.

Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com

Dan Peterson, chair of the Virginia Aquarium Foundation, addressed the City Council at a meeting Tuesday.

“I don’t know if a third-party operator is viable or not,” Peterson said. “I don’t know if the foundation could take on more of an operating role. We need to assess all of these different factors, and we need to assess all of these different business models so that we can come back to council.”

The price tag on a multimillion-dollar renovation and expansion of the aquarium presented to the City Council last year was an estimate and not an engineered proposal, Peterson said, and while the facility’s tanks are aging, their actual condition has not been formally assessed.

The city operates the aquarium and owns its buildings. The City Council decided last year to explore the option of private ownership of the aquarium after learning the tanks that hold the animals are deteriorating and will cost millions to repair. Two private entities, the owners of Ripley’s Believe It or Not! and Dollywood, expressed interest.

The foundation wants the city to split the cost of a $100,000 structural engineering study to determine the condition of the aquarium’s three largest tanks, which hold seals, sharks and sea turtles, to figure out the sense of urgency and real cost, Peterson said.

He also recommended the city participate in a $50,000 operation to conduct borings into the aquarium’s concrete foundation to assess its viability.

City Manager Patrick Duhaney said a comprehensive assessment of both the foundation and the city’s assets will be needed. The foundation is in the process of assessing what it owns because a third-party operator would want to own or lease the animals and exhibits, Peterson said at Tuesday’s meeting.

The City Council agreed it will vote on a resolution in September to work with the foundation to come up with viable options for the aquarium’s future.

Peterson previously stressed in emails to the City Council that the foundation felt it was being left out of the process and wanted to share its perspective.

After hearing Peterson speak and seeing a crowd of aquarium foundation members and volunteers in the audience, Councilwoman Barbara Henley said she believes the city took the foundation’s role for granted.

“We appreciate what we have; we just want to make it better,” Henley said.

After the meeting, former city Councilman John Uhrin, who serves on the aquarium foundation, said city discussions with private entities haven’t centered on actual costs, which is critical because it currently costs more to operate the aquarium than what it brings in. The city allocates roughly $2 million each fiscal year for aquarium capital improvements and subsidizes operations with roughly $7.4 million a year.

“There’s no possibility where you’re going to have a private-sector partner come in and make it profitable particularly after they have to pay the foundation for the assets we have, which are on the books for $30 million,” said Uhrin. “All of that talk was for naught.”

A city audit of the aquarium will be presented publicly next month.

The city’s consideration of alternative facility ownership or operators has created turmoil among aquarium staff and members of the foundation for nearly a year. Peterson had said in March that several employees have left the aquarium due to the uncertainty of its future. He wrote to the council asking members to “not take any direction towards possible privatization” until hearing from stakeholders.

Virginia Aquarium, which opened in 1986, is the third-most visited attraction in the state behind Kings Dominion and Busch Gardens theme parks. It holds 650,000 gallons of water in exhibits and has more than 250 species — including mammals, fish, birds, and reptiles.

The city and foundation recently invested $47.9 million for three aquarium projects; however, major renovations and an expansion of the main building are needed, with cost estimates between $50 million to $200 million depending on the scope of work. Peterson said the highest estimate included a $60 million parking deck, which can be eliminated.

Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com

Maria Reich, 45, was sentenced for two counts of wire fraud Thursday in U.S. District Court in Norfolk. The terms of imprisonment for each count will be served concurrently beginning Sept. 26.

Reich, who operated On Call Accountants, pleaded guilty in the same court April 12 to eight counts of wire fraud as part of a plea agreement with prosecutors. She had remained free on bond while awaiting sentencing.

The crime carried a maximum penalty of 20 years in prison.

Six of the eight wire fraud counts were dismissed Friday. Reich was ordered to pay $1.3 million in restitution, according to the judgment document.

On Call Accountants is a Virginia Beach-based business that offered bookkeeping, accounting and payroll services to small business clients.

As part of her job, Reich possessed a stamp bearing the signature of the client’s owner, which she used to prepare checks. She also had online access to the company’s financial accounts, which allowed her to view transfer funds and make electronic payments, according to a release from the U.S. Attorney’s Office for the Eastern District of Virginia, which prosecuted the case.

Reich should have received roughly $100,000 for her services between January 2015 and December 2018, but her accounting business actually received $600,000, the release said. She also used the client’s money to pay off her credit cards, which she used for numerous personal expenses including dining, travel, entertainment and retail purchases.

In 2018, the wife of the condiment company’s owner discovered patterns of suspicious outgoing payments, according to the statement of facts.

In total, Reich stole $1.1 million from her client, according to prosecutors.

In another scheme, prosecutors said Reich used pandemic relief funds provided by the federal government for her accounting business to make a down payment on a house.

In 2021, Reich, on behalf of her accounting firm, received a COVID-19 Economic Injury Disaster Loan, or EIDL, totaling $500,000. The funding was provided by the Small Business Administration to help companies recover from the economic impacts of the COVID-19 pandemic. In the EIDL application, Reich certified that none of the funds would be used for non-business expenses, according to the release.

She used more than $93,000 of the EIDL for a down payment on a residence and tens of thousands of dollars more for mortgage, car and credit card payments as well as home improvements. She also made a $5,000 deposit into her child’s savings account, according to the statement. In total, Reich illegally spent nearly $250,000 of the pandemic loan on personal expenses.

Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com

But former Virginia Beach Director of Economic Development Chuck Rigney may have overstepped. His travel expenses are under review as the city has opened an investigation into department travel expenses that did not adhere to city policies. Over the course of roughly 12 months, Rigney expensed roughly $47,000 in travel and other spending, according to expense reports obtained by The Virginian-Pilot.

City officials have not explicitly said what prompted the review. Rigney resigned July 24.

For the first time since leaving his position, Rigney spoke publicly about the city’s investigation and his departure.

“I’m certainly not trying to hide anything,” Rigney said in an exclusive interview Saturday with The Pilot.

Rigney said he asked for a review by the auditor when he was confronted with concerns. When asked why he resigned, Rigney said, “As the events unfolded, it was the way it had to be done. On that day, it just kind of came down to I was leaving — that was just it.”

While updating City Council on Aug. 13 about Rigney’s departure, City Manager Patrick Duhaney said a comprehensive review of department financial records found “some travel expenses do not align with our policies.” Duhaney explained he requested an investigation.

“Any abuse by city staff of the privilege to travel and represent the city of Virginia Beach will not be tolerated, and we have checks and balances in place so we are grateful that we were able to catch this before it got out of hand,” he said.

The Pilot obtained copies of Rigney’s city credit card charges and expense reimbursements spanning from when he began working for the city in March 2023 to the end of July, through a Freedom of Information Act request. The Pilot also obtained copies of Rigney’s receipts for the same time period.

Some of the biggest expenses outlined in 232 pages of receipts include airline travel for business trips to Germany, Brazil, Spain and Italy.

While the receipts shed light on how much taxpayer money was spent on Rigney’s travel, the documents do not flag whether charges were deemed inappropriate or violated city travel policy.

City spokesperson Tiffany Russell declined to divulge which specific expense or expenses triggered the investigation.

“We have provided documents responsive to FOIA requests as required by law, but this matter remains under investigation by the city auditor, and it would be inappropriate to respond further until this investigation is complete,” Russell wrote in a text Thursday.

As the leader of the city’s economic development, Rigney’s role was to network with international companies interested in establishing in Virginia Beach. The department is a single point of contact for site location assistance, demographic reports, incentives and a variety of research, according to the city.

Since resigning, Rigney said he hasn’t heard from the city about the matter.

“I’m waiting to see what they (city officials) have as it relates to questions and I’ll answer,” Rigney said.

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International travel

Most of Rigney’s receipts stemmed from his hefty travel schedule. He drank coffee at an airport Starbucks and ate fried calamari at a restaurant in Germany.

During his time with the city, Rigney attended several organized events overseas. He also traveled abroad for discussions about business proposals identified only by code names in city documents.

On the frequency of his travel, Rigney said he would have traveled more but was dealing with a personal matter that kept him closer to home.

“I wanted to help elevate the beach to the next level,” he said.

Rigney traveled to Germany three times. In July 2023, he flew to Stuttgart with Mayor Bobby Dyer for a workforce development meeting. The Delta flight for that trip cost $4,745.35. Rigney and Dyer stayed at Le Meridien in the center of the city for five nights. The cost of their hotel stay was roughly $2,300, according to business receipts provided.

Additional travel included a three-day trip to Frankfurt to meet with “Project Dust to promote foreign direct investment in Virginia Beach,” according to an interoffice memo signed by Duhaney. Airline tickets cost $3,675.55. A January 2024 flight to Stuttgart to discuss “Project Zeus” and to meet with other businesses that have expanded in Virginia Beach cost $3,007.80.

In March, Rigney attended a Select USA event in Milan and Padua, Italy, involving state-level economic development officers, local companies, major business and industrial associations and banks. Select USA is a program run by the U.S. Department of Commerce’s International Trade Administration that promotes and facilitates business investment in the United States.

The Delta flight to Italy cost $3,894.90, which receipts show was paid through an ecredit. The hotel and food receipts added up to roughly $1,700, according to the trip receipts.

Rigney also traveled to Spain to meet with a business prospect in June of 2023 and stayed at the Hotel Arts Barcelona, a 5-star hotel on the city’s waterfront that billed between 530 and 645 euros (about $590-$720) a night during his five-night stay.

City policy states that international travel requires approval from a deputy city manager.

“Any international travel was approved by the city manager,” Rigney said.

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‘A valid business case’

Other expenses stem from local outings or domestic destinations.

Among Rigney’s list of expenses was a last-minute flight purchased May 10 for the International Council of Shopping Centers convention that month in Las Vegas. The American Airlines ticket with a stopover in Charlotte, North Carolina, cost $2,060.51. That, along with a $722 credit from American Airlines were flagged on the spreadsheet as “pending expense auditor approval.”

Upgrades costing $1,541.25 were made for the same trip two days before the flight, but the airline receipt provided by the city doesn’t specify what those upgrades entailed. Rigney declined to discuss details of the trip. 

It’s unclear if the flight arrangements fell in line with the city’s travel expense policy. The policy states, “when pre-authorized by the Deputy City Managers for the department they are responsible for overseeing, upgraded Coach Class fares are permissible for official City of Virginia Beach domestic and international air travel when scheduled flight time, including stopovers and change of planes, is less than 12 hours in one day.”

The policy goes on to say, “upgraded coach class fares, which may be pre-authorized by a Deputy City Manager, include upgrades to business class, upgraded coach class seats, premium seats, exit row seating, early bird check in and other conveniences and upgrades, except that first class fares are not allowed.”

“The City carefully reviews all expenses to ensure each travel charge is justified by a valid business case in accordance with city policy,” city spokesperson Ali Weatherton-Shook wrote in an email this week.

The nature of Rigney’s job entailed more travel expenses as compared with Virginia Beach City Council members, for example. Council members and the mayor incurred about $20,000 in expenses last year. The bulk of the money paid for a Hampton Roads Chamber of Commerce’s Leadership Exchange Conference in Charleston, South Carolina.

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Time as director

Rigney, 68, resigned less than six months after the city manager appointed him in February.

Rigney had replaced Taylor Adams, who left for another job in 2023. Before coming to Virginia Beach, Rigney worked in economic development for several Hampton Roads cities, including Hampton, Norfolk and Portsmouth.

Duhaney wrote a glowing review of Rigney when he appointed him as director.

“In his short time as interim, he has demonstrated his ability to lead the City’s department and successfully stepped in to manage major projects with critical deadlines, which include the Amazon facility, re-evaluation of Corporate Landing and Innovation Business Parks, and ongoing efforts to attract national and international businesses,” Duhaney was quoted in a February release.

The city auditor is investigating the economic development department, including Rigney’s travel expenses, and the findings will be presented publicly, Duhaney said.

Directors submit their expense reports for approval to the deputy city manager who oversees their department.

After Adams resigned at the end of June of 2023, Duhaney oversaw economic development until Deputy City Manager Amanda Jarratt was hired March 27. Jarratt was then responsible for approving Rigney’s travel expenses, according to the city.

Jarratt is serving in the interim economic development director role now.

Among the receipts provided by the city is an email which states that Jarratt asked Rigney to provide further information on the June expense submission for a $329 food and drink tab during the Dave Matthews Band concert at the Veterans United Home Loans Amphitheater.

Rigney wrote in the email that he was trying to persuade the managing partner at one of Hampton Roads’ largest law firms to open a Virginia Beach office. The charge was not listed among the approved expenses in the expense report spreadsheet.

The city’s Development Authority renewed its amphitheater box for the season, and Rigney told the Pilot he and his staff were allowed to bring clients to shows to encourage business retention and expansion opportunities. He’s not concerned about an expense related to the concert and just wants to move on.

“I’m certainly hoping we can resolve this matter as quickly as possible,” Rigney said. “I’m not one to dwell on spilled milk. I’ve got more to do.”

Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com

However, the 2024 election will continue as planned under the current ward-based system as the judge did not find evidence to support a temporary injunction requiring the city to revert back to a different voting system.

Former Councilman Linwood Branch and several other residents contend the city “illegally manipulated the Virginia Beach electoral system by eliminating three at-large seats that are expressly established under the City Charter,” and deprived the rights of voters, according to the lawsuit.

“I’m delighted that we’re going to hear this case,” said Branch by phone on Monday. “The right to vote is paramount to participating in our system of government, and the citizens never got the opportunity to be involved in that, so let’s keep moving forward.”

Former Norfolk Judge Charles Poston’s ruling dismisses the plaintiffs’ challenge of the validity of the 2022 election, and denies the plaintiffs’ request to stop the 2024 election under the current district-based system.

However, Poston’s ruling authorized a trial to determine the Virginia Voting Rights Act’s impact on the city’s election system. The trial will likely occur after the 2024 election.

“There’s some inclination that the court is inclined to lend some weight to our argument,” said Brandan Goodwin, the plaintiff’s attorney said Monday. “It’s a small victory for our clients.”

Poston wrote that the issue at hand is whether the city was permitted to remove or replace at-large districts with representative districts.

“The Virginia Voting Rights Act does not expressly provide that it modifies city charters,” Poston wrote.

Virginia Beach’s election system was overhauled after a federal judge ruled in 2021 that the city’s at-large system, which allowed residents from across the city to vote in every council race, was illegal and diluted minority voting power. The court imposed a district-based election system on Virginia Beach and appointed a special master to draw 10 new voting district maps.

The so-called 10-1 system was used in the 2022 election and included 10 districts. Representatives must live in their district and only residents who live in the district can vote for their representative. The mayor is elected at-large.

Poston added that there was no authority, except for a now-vacated 2022 federal court order, for the City Council to abolish the three at-large City Council seats.

Virginia Beach Deputy City Attorney Christopher Boynton plans to prove otherwise.

“The City looks forward to presenting additional evidence at trial as to why the Virginia Voting Rights Act compelled the City to adopt the 10-1 system,” Boynton wrote in an email Monday.

Goodwin had argued at a May hearing that state law doesn’t allow the city to take away the at-large seats defined in the charter. He had asked the court to halt an election using the 10-1 system in November, but Poston had denied that request at the May hearing and reiterated the position in his ruling Monday.

Boynton has said the 10-1 system complies with the Virginia Voting Rights Act and was the city’s only viable option.

Last year, the City Council formally adopted a redistricting plan and authorized a ward-based election system, the same method used in 2022.

But the City Charter doesn’t yet align with the election system overhaul, and an amendment requires General Assembly approval.

Gov. Glenn Youngkin vetoed a bill in this year’s General Assembly session that would have aligned Virginia Beach’s city charter with its district-based election system, citing the pending lawsuit. Youngkin said in his veto statement that he wants the court to “adjudicate the correctness of the implementation,” and that the bill could be reintroduced at next year’s General Assembly session.

The council used to have four members, including the mayor, who were elected at large. Those four could live anywhere in the city and were elected by residents across Virginia Beach. The remaining seven members represented districts but also were elected by the population at large.

The General Assembly also approved legislation in 2022 that required candidates for city council and school board appear only on the ballots for the voters who reside within the bounds of their district.

The effects of the changes to the city’s voter system were immediately evident. The council sworn into office in 2023 was the most diverse — and possibly the youngest — in city history with four Black representatives and four members under 45.

Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com