"Meadowville is about to explode"

The largest single capital investment in the county's history breaks ground this week. Northrop Grumman Corp.'s new enterprise, valued at $125 million, will take 28 acres of the county's Meadowville Technology Park off I-295 in eastern Chesterfield County. Company officials expect to move into an 185,000-square-foot building next March.

"It will be a significant catalyst for continued growth in the Meadowville Park, setting the standard for quality development," said Jim Dunn, director for the technology park.

State officials announced in November that Northrop Grumman would become the first tenant of the park. Northrop Gruman is expected to spend over $250 million in the next ten years. The state awarded the contract to the company for a significant portion of Virginia's Information Technology outsourcing efforts.

Chesterfield has owned the 1,300-acre park for years, buying it to secure office development rather than the possibility of residential growth. Obtaining buyers for office sites has been slow.

Director of Economic Development Will Davis, however, told the Chesterfield Business Council last week, "Meadowville is about to explode."

The Economic Development Department is now working on 106 projects but is tightlipped about them. Prospective buyers and tenants prefer confidential conversations until contracts or leases are signed.

Though asked a number of specific questions by business leaders, Davis was guarded, particularly about the prospects of attracting MeadWestvaco Corp. to Chesterfield. That company recently leased office space in western Henrico until a permanent site can be located.

"We're doing all we can do," the director told the CBC audience. "We are well positioned, so if we don't catch this one, we'll get the next one."

"If MeadWestvaco bites, we'll be ready," State Senator John Watkins pledged after the meeting. The county's effort is focused on the Watkins Centre, "but the city, Henrico [County] and Goochland [County] are also in play," Watkins added.

At the CBC meeting Davis, who joined the county's executive staff on Jan. 30, acknowledged that his department has not talked directly with the Richmond Braves about relocating to the Cloverleaf Mall site, preferring to be a regional team player and not step on the city's turf.

"If the Braves say they are not going to play in the city, then we'll call them," he replied.

That response disappointed some Chesterfield business leaders who said the county should be competing for every prospect. Over the years, some Chesterfield leaders and many in the business community believe the county has not been aggressive enough in recruiting against the city and Henrico. Currently, 76 percent of the new jobs in Chesterfield occur from existing businesses, but the county's base of businesses is smaller than the city's or Henrico's.

The county's director of revitalization, Tom Jacobson, has been trying to persuade Kroger to move into Meadowbrook Plaza on Hopkins Road, just north of Chippenham Parkway, but the supermarket chain recently declined.

Jacobson said Kroger's market research indicated that area could support only a 58,000-square-foot store when Kroger is only building stores of 80,000 square feet or more. There are numerous vacancies in the shopping center.

Commercial development has lagged in Chesterfield County and has helped create the highest property tax rate in metro Richmond - currently $1.04 per $100 of assessed value. It now costs $4,794 per household for county services (roads, schools, police, fire, libraries and parks and recreation), but the typical property owner pays just over half of that in real estate taxes ($2,417), according to data from economic development. Taxes on businesses, sales taxes and funding by the state and federal governments pay the rest.

With a well-developed commercial base, Henrico County's property tax is 90 cents per $100 of assessed value. It costs less to provide services for office space and retail which subsidizes residential property owners.

Chesterfield schools, which has 10,000 more students than Henrico, claims over half of the county budget.