VIRGINIA BEACH — Overseas travel, stays at high-end hotels, and schmoozing with industry stakeholders are some of the perks that come with being head of a large city’s department of economic development. It’s part of the job to woo investors and attract new business opportunities, which ultimately can reduce the tax burden on residents.
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
