Transcript
Martin Davis: Welcome to Virginia 365. a podcast spotlighting the people. topics, and ideas that drive Virginia. Today, Tom Scott from Virginia's Innovation Crossroads joins us in studio. Tom, welcome.
Tom Scott: Great to be here with you, Marty. Thank you for inviting me.
Martin Davis: So, Tom, let's jump right in. Virginia's Innovation Crossroads is a longstanding Central Virginia player in economic development, but you've recently gone through a rebranding and you've welcomed a new leader. That's you. Congratulations on your new job. Tell us a bit about BIC and where this organization has been and where it's headed.
Tom Scott: Yeah, you know we're we're very excited. you know Virginia's Innovation Crossroads was actually came into existence on May 13th. ah But really the legacy organization was called. the Fredericksburg Regional Alliance, and that was stood up.
Tom Scott: ah In the 1990s, it is one of 17 regional economic development organizations. uh here in virginia And really the reason in the the late 90s as to why these organizations.
Tom Scott: ah needed to to be in existence was to really help. bring down the silos you know virginia has about 133 communities And really from a ah competitive and an organizational standpoint.
Tom Scott: ah the regional economic development groups. ah came into existence in order to to represent these communities and to be a point of contact. in working with the state and in working with uh projects with potential companies ah that we're looking at Virginia as far as making an investment.
Tom Scott: So, The Fredericksburg Regional Alliance was very successful. um was doing a lot of great work, but like everything else. uh there there comes a time in which you know there needs to be some updating uh and some rebranding. And so that's what we did shortly after I got here. I think I was about six weeks into my new role.
Tom Scott: And so my predecessor had been working on this with the board of directors. uh here and so The Virginia's Innovation Crossroads was born.
Tom Scott: as a result of extensive interviewing. and surveying that happened here regionally. to really try to identify a name and a brand that would fit.
Tom Scott: this particular region. um One of the other regions, and it really speaks to where we're headed here, Marty, with your question. uh is that this is a very innovative region and we're not just talking about you know technology And all that's going on with that.
Tom Scott: But we're also talking about whether that's... um you know, initiatives that are taking place at Dahlgren. or at at Quantico. even some of the ah the stories going with.
Tom Scott: you know, the the innovative approach to food. with the creation of Chick -fil -A sauce. So this area has a real... uh history of innovation and we want to build on that we want to continue to grow that out continue with our same mission.
Tom Scott: just as our legacy organization as far as trying to attract ah more industrial projects. so that people can have. higher paying jobs. There can be a better quality of life so that the commercial tax base.
Tom Scott: ah can grow for our localities and so that, you know, the the citizens and the the housetops don't have to bear the brunt. of all of the taxes that are required uh for infrastructure and schools and all of that. So I'm very excited. about our new name, about our new brand, and the the direction that we're we're going in.
Tom Scott: in order to to continue to strengthen the economies of of our local communities.
Martin Davis: And I want to follow up just a touch on something you said, because my experience here in Virginia is that. Um, Not a lot of people know about.
Martin Davis: the 17 institutions that were stood up by the General Assembly and how they work. What would surprise people most about how these organizations work across the state?
Tom Scott: Yeah, I think um the the fact that... you know we have uh private investors and so you know there there are a lot of community partners that are very interested in in seeing and you know a planned and responsible ah growth trajectory.
Tom Scott: ah within those particular regions. So I think economic development overall, you know up until recently. uh you know really was a hidden gem.
Tom Scott: you know as far as helping to connect the dots between government and industry of really trying to attract. uh new tax revenue and all of this so i think you know i i think it's just it's been an unknown industry somewhat of a new industry but to realize that virginia has really uh pressed into this into economic development it's always been a very pro -business
Tom Scott: uh state going all the way back to its beginnings you know in 1607 in jamestown and all of the business and the pro business initiatives.
Tom Scott: uh that the commonwealth has always implemented. And I think these regional economic development organizations. are proof that Virginia has been traditionally.
Tom Scott: and and historically very pro -business and seeking after new investment for the communities.
Martin Davis: Okay. And as we know, again, these these organizations exist all across the state. But I want to talk just a bit about the greater Fredericksburg region, because this region is really kind of oddly positioned in Virginia. um It's a region that's, when you look at studies that are done by groups like the Bureau of Labor Statistics, It's very often grouped with Northern Virginia, and that can make it really hard for people to tease out activity in this region relative to Alexandria and Fairfax, for example, because there are significant differences in demographics and and and what drives the economy. What about the innovation crossroads stands out? ah
Martin Davis: that might surprise people less familiar with the region.
Tom Scott: Yeah, you know, and I appreciate the question because, you know, that was really... uh you know what why it is that we decided on the rebranding was to to really distinguish this particular region from Northern Virginia.
Tom Scott: you know those Those who are in Richmond and those who are... ah Driving along 95, I think, can very quickly pass through. It's really been more of a pass through. ah region and just Call it Northern Virginia when it's not. It is. very separate it's very distinct And it's also very diverse. And.
Tom Scott: you know before really starting my time here in this role. I didn't really realize how diverse this region. uh really is you know, really the majority of Spotsylvania County and Stafford County, and of course, Caroline as well.
Tom Scott: are still classified as agriculture and forestry. And yet. you know the fiber network that runs up the i -95 corridor is robust, it's highly modern.
Tom Scott: It's built to handle high capacity. ah needs like cloud computing and AI. So it's really that diversity, the fact that we're not Northern Virginia.
Tom Scott: but we have an incredible amount of assets that are here. and the cost of labor. is 15 to 20 % lower. than Northern Virginia.
Tom Scott: So for me, that really makes it a ah prime candidate. ah for responsible growth, for well -planned growth. uh here just because of the proximity to dc but also because it's separate and distinct with really a ah lower cost when it comes to our our labor statistics statistics are concerned.
Martin Davis: Okay. And it's also a place where the population center of the state is moving, right? ah The Cooper Weldon Center at the University of Virginia, which tracks all this great work on demographics for the state. um has over the years affixed a point on the state that represents the center of the state's population. you know, 60 years ago, it was down close to Richmond. ah It kind of.
Martin Davis: Has been tracking up 95 for the last. 15, 20 years. And that point right now actually sits in Caroline County, which would surprise a lot of people. Certainly caught me off guard. um How do these shifting demographics affect the work that you do?
Tom Scott: Well, I mean, I think i think it's... um you know allowing us to be able to compete with really any northeast metro uh area so when you start looking out uh between now and 2040 to recognize that there are going to be 500 ,000 people that will be living here. That's about a 21 % growth.
Tom Scott: you know That's what ah really speaks to those that are looking at ah you know workforce, a workforce population. uh so you know this type of growth although those who live here you know driving on Interstate 95, don't want to see it continue to be congested. You know, the population is is moving here.
Tom Scott: And yet if we do it. correctly and we do it responsibly we'll be able to get companies that will be able to be local. and people will be able to live. to earn uh a good uh uh wage here and uh be able to work work here work close to home so that they don't have to get on of the interstate ah and go up to Northern Virginia to to make a higher wage like so many do.
Tom Scott: even today.
Martin Davis: Yeah. and You know, one of the things that recently happened in Northern Virginia... um The federal government is in a period of upheaval right now. And that has long.
Martin Davis: uh driven you know government work has long driven northern virginia has made northern virginia what it is How has central Virginia weathered that storm?
Tom Scott: Yeah, I mean... I think... the way that we have is by um you know, having good projects um You know, I know that right now that, you know, data center projects are not popular. I read that in a Gallup poll that about 70%.
Tom Scott: are against data centers in their communities. Uh, but we've had you know a significant amount of activity here when you look at the amount of trades um you know that are that are working on the data center projects. um That has really helped tremendously. And then the ripple effect of that.
Tom Scott: with your electricians and your HVAC. And on and on it goes as far as the construction industries. uh that are working here i mean one of these data center projects can have uh over a thousand ah workers on site. And, you know, they'll they'll eat in our restaurants.
Tom Scott: uh they'll they'll stay in our hotels all of that, you know spending money. ah growing the economy and and really helping. um to to improve the economy so i think this area has really been very fortunate.
Tom Scott: ah to have worked for close to a decade in order to identify. property you know with proximity to the fiber network along 95 and to keep people working.
Tom Scott: um So you know we've definitely had the impact. of some of the um you know, the reducing of the workforce as far as the federal government. But we've also been able to see you know significant amounts of work in some of the the key industries that we're were focused on.
Martin Davis: All right, so let's talk news for a moment, Tom. The governor recently signed Executive Order 22, which sets a new framework for data center development in Virginia, and it establishes an AI task force. There is a lot in this executive order. To.
Martin Davis: explore and talk about and people are still and digesting it, trying to understand exactly where all it's going to go. And of course, a lot of it hinges on general assembly approval in the upcoming session. So how far...
Martin Davis: goes remains to be seen. But... in your in In the time that you've had to look at this and think about it, In your opinion, what's the most significant component?
Martin Davis: of this executive order.
Tom Scott: Yeah, you know, and I think having worked at the state level with the Virginia Economic Development Partnership and also in the Petersburg region in in economic development, you know, the the the trend is just very concerning, you know, as far as a competitive edge.
Tom Scott: when it comes to any industry, especially one. like this. uh that has just such an incredible um you know you know, tax implication.
Tom Scott: ah It doesn't have a lot of jobs, so there's just not a lot of um you know burden on the school systems and burdens on the ah the roads. uh when it comes to once the data centers are built out so when i look at it from a comprehensive perspective.
Tom Scott: And I see that a particular industry is really being shot at from all different sides. I think states like Georgia, states like Ohio and North Carolina and Texas.
Tom Scott: are you know rubbing their hands together. They're probably celebrating. uh because virginia continues uh to put additional regulations.
Tom Scott: on data centers, making it. less and less attractive for them to be in the communities and to add significant value. ah to our communities. So I think that's one concern as far as the competitive edge.
Tom Scott: ah for our state because Virginia has been so highly successful. uh in the past But areas like Atlanta. uh and areas you know and in West Texas are really gaining.
Tom Scott: uh from virginia uh, you know, elevating costs and removing state incentives. and just really making it more and more difficult. for these projects to go through.
Tom Scott: And then the other concern that I would have as well is that you know as far as land use and zoning decisions have historically... belonged exclusively to local boards of supervisors and city councils.
Tom Scott: you know, really eliminating buy -right zoning for facilities over 25 megawatts. really smacks of government overreach and I would want us to be very concerned. about an executive order.
Tom Scott: ah that is really putting some of this. you know historical decision -making. out of the hands of our localities and into the hands of the state government.
Martin Davis: Yeah. And, you know, it's interesting today. ah Governor Spanberger sat for an interview with WTOP. And in that part of that interview, she was talking about a letter she sent to Congress.
Martin Davis: calling on them to set up... AI. um guardrails. for the country. And she was asked specifically. what it is she expected Congress to do. And her answer was. um
Martin Davis: generic I'll let people read it and decide for themselves as to how specific they thought it might be. But from your perspective, when you when you look at a situation like this where As you just pointed out, we're now talking about taking away land use decisions from a locality which historically has been the localities.
Martin Davis: job. Um, Hey. And now. You know, we're talking about the federal government possibly getting involved and instituting guardrails. um This is a tricky question with data centers because it's such a new industry. But also the technology it's generating is. Truly revolutionary.
Martin Davis: and we really don't know where it's going right now, right? I i doubt anyone could... could look forward two years and project out where we're going to be with this. um How...
Martin Davis: How do... Let's leave the political side out of the question. for businesses who are growing, be they in central Virginia or across the state.
Martin Davis: What kind of things should they be looking at? How are you advising companies to to think about some of these things?
Tom Scott: Yeah, I mean... I. I think. you know again it's competition so you know certainly you know uh china is doing all that they can to very much fast track. data center projects.
Tom Scott: they they don't have the the same concerns like we do here in the US. So i I understand that. ah But we have to understand that. you know, that of course uh there needs to be uh guard rails you know especially for our our young people we need to understand uh this technology but we need to move at the speed of business uh because you know This is a window of opportunity.
Tom Scott: uh, uh for us as a country to really make sure that we're the ones who are. uh dictating kind of you know this narrative uh around ai rather than abdicating this to our enemies. in other parts of the world.
Tom Scott: So that would be my my concern is. you know, ah with any type of advancement. ah that we've seen. I mean, you can go back in history ah here in our country and say with any type of technological advancement.
Tom Scott: uh there's gonna always be uh concerns always going to be a lot of fear ah around this, but a lot of times the market will determine as to how how far it goes. And so I wouldn't want the pendulum to swing too far.
Tom Scott: ah in one direction or or the other. and basically handing it over. to those ah who would you know be be looking to harm our nation.
Tom Scott: in the future.
Martin Davis: Okay, great. ah So look, we've talked a lot about data centers. It's obviously a hot topic. It's certainly a hot topic in Northern Virginia with Spotsylvania and Stafford and Fredericksburg and Caroline and to a lesser extent, King George. all getting in on this game. um But...
Martin Davis: Data centers are not the only thing you folks do. You are the innovation's crossroads. ah Talk to me about some of the other economic development projects that you're pursuing.
Tom Scott: Yeah. you know, we're We ah really have ah
Tom Scott: a couple of priority industries that that we're going after that really makes sense for our region. So we've identified, you know, defense and aerospace you know there's just so much especially when you start looking at the the space industry right now, probably next to data center investment. There's probably more investment. going into space and that whole supply chain so uh that's very attractive uh
Tom Scott: to us you know anything to do with cyber security ah Obviously, that's going to continue to be. ah very big. uh ai ah modeling and simulation. So that whole technology industry we're we're hunting and going after those types of ah companies.
Tom Scott: I like. ah engineering firms. uh as well ah you know We can see you know offices being opened up. we have ah One company that's ah here locally that started with a father and daughter just at...
Tom Scott: to people as an entrepreneur entrepreneurship. a type of initiative for this family. They've now grown to close to 90 people. And so we'd love to see.
Tom Scott: ah small businesses grow up. and professional firms hire our our graduates from Mary Washington. And then pharmaceutical ah device manufacturing. There's just a lot going on in Virginia.
Tom Scott: Last year, there was about $12 .5 billion. of investment committed to Virginia with projects like AstraZeneca, Eli Lilly and Merck. So I see our region.
Tom Scott: uh as ah playing a role with some that's going on with Mary Washington Healthcare. care and standing up a medical college. I see this whole ecosystem here growing.
Tom Scott: and us being able to secure some companies here. So then again, our graduates, our young people. uh our uh military that are separating each year here locally can have high paying careers for for many years to come.
Tom Scott: So we're we're really excited about that.
Martin Davis: Okay.
Tom Scott: We're pursuing a Go Virginia grant. ah right now. ah to identify more sites. for more potential projects. And again, if this is done responsibly and it's done with a plan in mind.
Tom Scott: then I think everybody can come out. uh a winner uh, without People, you know. not having these projects that they don't want to see in their communities.
Martin Davis: So having been raised in the Tar Heel State and right in the center of what is now known as the Research Triangle, sounds like Central Virginia is making a bid to become ah RTP North.
Tom Scott: Well, we would love that. you know Really, you know with Virginia being in a sweet spot between ah Raleigh and Rockville. uh between ah real hubs when it comes to health care and life sciences i think We're sitting right in a very good position.
Tom Scott: especially with some of the announcements that came in last year. So I see this as being something. that other regions are capitalizing on and I'd like to see us fit into that and to capitalize on that as well.
Martin Davis: Outstanding. Well, look, Tom. um Life isn't all about work, right? So let's learn a little bit more about you and what you do for fun. with Just a bit of a twist.
Martin Davis: Part of being a leader is cheering on the home team. But here in Virginia during college football season, there are a lot of home teams. So I'm going to put you on the spot, Tom. Who do you root for?
Tom Scott: Well, you know, Marty, i I just moved up from Richmond. ah So, you know, I really like VCU because they've been undefeated all these years in football.
Martin Davis: When are you running for office, Tom? That's a great response.
Tom Scott: ah ah You know, I've been... uh I've been to a UVA game, had a blast. I've been to a William & Mary game. I have some very dear friends that are ah Virginia Tech fans and the history that they have. so I don't know that I can really choose one. I was born in in the Midwest. I grew up in the Northeast.
Tom Scott: ah But my my father was a big University of Michigan fan. uh big big 10 fan uh So, you know, when it comes to Virginia, I try to stay neutral and and enjoy.
Tom Scott: you know the successes and the victories that I... that I hear about. but on a Saturday morning when I, I'm sorry, on a Saturday afternoon. When I sit down to watch a college game, I do enjoy watching a good Big Ten.
Tom Scott: match up if I can.
Martin Davis: Okay, well, we don't have the... Yeah. Excuse me. We don't have the Big Ten here in Virginia. We got a Big Ten school just across the border from us, that university, which shall not be named.
Tom Scott: Yeah.
Tom Scott: me
Martin Davis: Um, But we do have a lot of good ACC football here. and quite honestly, Tom, anymore. Excuse me. the The lines between the Big Ten, the ACC, and the SEC are so blurred, I'm not sure anyone notices the difference.
Tom Scott: Yes. No, that's right. And anybody can beat anybody. Look at that Texas -Ohio State game. you know, with them, with Ohio State dominating for three and a half quarters and then ending up losing it. So that really changed the ah the college rankings ah pretty quickly ah to to the other conferences.
Martin Davis: And, of course, there is the sad tale of My beloved. school that went down to Clemson and dominated. for 58 minutes and wound up losing.
Martin Davis: so What are you going to do? um All right.
Tom Scott: That's right.
Martin Davis: So, Tom, it would not be a Virginia Free Press product if we did not end by asking you what you are reading. So, Tom. What is currently on your bookshelf that you are actively reading right now?
Tom Scott: Yeah, you know, I just ah recently picked up, ah I love reading about ah leadership. I love history. I love biography. So I don't know if you're aware of this, Marty, but really the world's oldest leadership book is actually.
Tom Scott: in the ah the Hebrew book of Nehemiah. ah And so I've recently picked up an overview. of Nehemiah and his extraordinary leadership.
Tom Scott: to actually build a city wall within 52 days. so it's ah It's a good read. It really helps me. uh in my role but again of course i appreciate that genre because anything that i can learn when it comes to being a better leader.
Tom Scott: being a better servant leader. you know These are the types of books that I want to read and try to expose myself to so that I become of more value. to my team more value.
Tom Scott: to this region and to our investors. so that's That's what I've picked up. uh more recently and and and enjoying you know reading one of the oldest leadership books on record.
Martin Davis: There you go great answer All right. That is all for Virginia 365 today. Thank you, Tom, for joining us. know a person we should be interviewing?
Martin Davis: Contact me. You can reach me at my email address, m... Davis at Virginia pre -press .com. Until next time. Be well.