The growth of Fort Lee is a boon for many businesses near the base, even though the $800 million expansion has been in the works for two years and won’t be finished until 2013.
The area’s population is going to balloon from 18,400 in 2005 to 35,500 by 2011, just about doubling, according to Fort Lee public affairs. The size of the base will also double in square feet, from 7.5 million to 14 million.
That’s welcome news for most companies in the area.
Driving right off Interstate 295 onto Oaklawn Boulevard toward the entrances of Fort Lee, you immediately see the stretch of stores. And unlike some stretches of West Broad Street or Midlothian Turnpike, empty storefronts appear to be few and far between.
These businesses have been preparing for the mass of people that Fort Lee will bring in, and they are ready.
Some businesses along Oaklawn Boulevard have already benefited from the growth.
Sales at Strosnider Chevrolet were up as much as 45 percent this summer compared with last. “Cash for Clunkers,” military customers and construction companies working at the base have led sales.
“Our profits have always run high, but now the potential will be dramatic,” said Craig Strosnider, vice president of the Chevrolet GM dealership.
“Some of the military come in for 90 days to 180 days and just want an oil change,” said Strosnider, adding that there is a real need for more body shops in the area.
At a nearby Food Lion, business has picked up as well. Bill Hamner, store manager, said sales have been up about 12 percent from last year, even with a Kroger and a Wal-Mart Super Center not far down the street.
Some business have yet to see effects from the base, and their numbers are down from last year. But most were optimistic that things would start to turn around when more personnel arrive at the base in December.
Other businesses are worried they will suffer as a result of the base expansion. With new housing at Fort Lee, hotels on Oaklawn are worried about sales. According to one hotel general manager, who asked not to be named, profits at his hotel are expected to decline because of the glut of rooms.
The military is planning to build a hotel at Fort Lee with more than 1,000 rooms, a $114 million project that when completed will be the state’s largest hotel. Its announcement has not been received well by some members of the area business community. A coalition of 70 business owners organized to extend the public comment period for the proposed hotel.
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More people coming to the area also means there will be more people needing work, such as family members of military personnel on base.
Many of the stores located on the strip in and around the Crossing Center and Oaklawn Plaza are already fully staffed, and the ones we spoke to said they weren’t expanding any time soon.
According to Pat Foster, manager at the Virginia Employment Commission in Prince George, they are expecting more people to come to their location and apply for positions.
Foster said his office is working to staff open positions at the base.
According to the Fort Lee Public Affairs Office, the local economic effect will reach $1.7 billion by 2013.
By 2013, Fort Lee is expected to create 14,000 jobs, not counting a rough figure of 11,000 full-time positions on Fort Lee. The estimated tax impact from Fort Lee is expected to reach $580 million by 2013.
Mashalla Mukadam is a BizSense reporter. Please send news tips to mm@richmondbizsense.com.
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