INDEPENDENT LOCAL NEWSNewport News, Virginia
Audit Newport NewsTransparency · Due process · Accountability
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Active · Investigation · Reviewed November 12, 2026

S23 Holdings expansion: jobs, investment and public incentives

Overview

Virginia’s grant closeout counted 228 jobs against S23 Holdings’ first Newport News expansion target of 332. The project exceeded its investment and wage targets. A later announcement used the 332 figure as jobs created and introduced a second expansion promising 414 jobs. This case follows both awards and the records behind the job counts.

Background & source notes

S23 Holdings and its affiliates, including East Coast Repair & Fabrication, first announced a Newport News ship repair and manufacturing campus in June 2020. The City, its Economic Development Authority (EDA) and the Virginia Economic Development Partnership (VEDP) participated in the Commonwealth’s Development Opportunity Fund agreement. The City’s 2022 amendment memo explains how part of the first award was set aside for public work on Terminal Avenue.

The September 2026 announcement covers a separate River Port expansion with a shiplift and approximately 48,000 square feet of additional production space. VEDP announced two distinct $2 million state grants and separate workforce training support. Council’s November 10 agenda listed the Opportunity Fund agreement and appropriation. The new agreement and payment schedule can establish how Newport News will verify jobs, investment and wages over time.

The November 10 staff packets identify the local match and the pier as separate parts of the second expansion's incentive package. The estimated $6.5 million match depends on qualifying net new taxes. The proposed pier lease establishes a City-to-EDA structure with an intended S23 sublease. Signed agreements and adopted actions are needed to establish final terms and implementation.

Source notes and limitations

VEDP’s 228 count is the result for project 2019-140771 at its December 31, 2025 performance date. The September 2026 releases give a historical figure of 332 without a stated measurement date or job definition. Later hiring or a different count could explain the difference. The new 414 jobs and $180 million are announced commitments. The November 10 agenda identifies proposed Council actions. The vote record, executed agreements and payment records remain open.

Case details

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Where things stand

Updated

Reviewed finding

Staff estimates a $6.5 million local match and ties the pier to S23

November 12, 2026

Newport News staff estimates the local match at $6.5 million, based on 35% of S23’s net new taxes over nine years. Staff also identifies the 23rd Street Pier as an incentive. The draft gives the EDA a 40-year lease without rent to the City and anticipates S23 repairing and using the pier through a separate lease. The Council packet also describes how the $2 million state Opportunity Fund grant would reach S23 after performance thresholds are met.

Source 1 · page 2Source 2 · page 1Source 3 · page 5Source 4 · page 6

Open question

How were the 332 and 228 job counts calculated?

Final company job certification, aggregate verification worksheet and the records supporting the September 2026 announcement’s 332-job figure, including definitions and effective dates.

View all 4 open questions

Job results and the second expansion’s incentives 2

The state measures the first award at its performance deadline. The September releases describe the earlier result and the proposed scale of the next expansion.

Go to the data tables

The first agreement fell short on jobs and exceeded two other targets

VEDP reports 69% of the job target, 102% of the investment target and 154% of the wage target. It recorded a reduced grant payment on June 16, 2026.

The second expansion has multiple incentives with different conditions

Staff identifies a performance-based $2 million Opportunity Fund grant and an estimated $6.5 million local tax-based match. The state announcement identifies a separate $2 million Virginia Investment Performance Grant. Staff also identifies the pier as part of the package, with no monetary consideration from the EDA to the City under the draft lease.

First S23 Opportunity Fund award at closeout
MeasureTarget or awardState result
Jobs332228
Capital investment$64,400,000$65,741,644
Average annual wage$51,024$78,648
Opportunity Fund grant$1,314,000$1,110,330

Jobs, capital investment and wages are as of December 31, 2025. The grant row compares the amended award with the June 2026 payment recorded by VEDP.

Incentives disclosed for the second expansion
IncentivePublished amount or termsEvidence
State Opportunity Fund$2 millionState announcement and Council appropriation request
Virginia Investment Performance Grant$2 millionSeparate state grant announcement
Local expansion incentiveEstimated $6.5 million35% of qualifying net new taxes over nine years, as described by City staff
City-owned 23rd Street Pier40-year draft leaseNo rent from EDA to City. Staff identifies an intended S23 sublease.

The disclosed amounts have different payment conditions. The adopted actions, signed agreements and any disbursements require separate verification.

Timeline 9

Dates follow the cited records; document dates are labeled separately.

  1. June 16, 2020

    Virginia announces the first Newport News expansion

    The announcement projected 332 jobs and $64.4 million in capital investment, with a $664,000 Commonwealth’s Opportunity Fund award.

  2. November 10, 2020

    Council packet describes the original agreement

    The staff item describes the parties to the agreement and the grant’s use for company and City infrastructure costs.

  3. August 9, 2022

    City staff detail a $650,000 increase for infrastructure

    The amendment memo says the planned Terminal Avenue improvements were ineligible for the Economic Development Access Program. Staff arranged an increase in the Opportunity Fund award from $664,000 to $1,314,000. The memo describes $400,000 up front to the City for infrastructure and another $450,000 for infrastructure tied to performance at the end of the period.

  4. December 31, 2025

    The first agreement reaches its performance date

    VEDP records 228 jobs, $65,741,644 in investment and an average annual wage of $78,648 at the deadline. The targets were 332 jobs, $64.4 million and $51,024. VEDP reports no extension for project 2019-140771.

  5. June 16, 2026

    VEDP reports a reduced payment

    VEDP lists a $1,110,330 payment against the amended $1,314,000 award, a difference of $203,670. The public report gives the grant-level figure. The disbursement records can show which amounts covered City infrastructure and which went to the company.

  6. September 22, 2026

    A new expansion announcement cites 332 earlier jobs

    The local EDA and VEDP announcements each describe 332 jobs as created by the first expansion. Both announce a new projection of 414 jobs and $180 million in investment. The state lists a $2 million Opportunity Fund award, a separate $2 million Virginia Investment Performance Grant and employee training support.

  7. November 10, 2026

    The new Opportunity Fund agreement appears on Council’s agenda

    Items 26-169 and 26-170 cover the new performance agreement and the $2 million Opportunity Fund appropriation. The same agenda separately lists a lease of the City-owned 23rd Street Pier to the EDA under item 26-183.

  8. November 10, 2026

    Staff identifies the $6.5 million estimated local match

    The City’s Development Department estimates the local Expansion/Relocation Cost Reduction incentive at $6.5 million, based on 35% of net new taxes generated by S23 over nine years. Payments depend on meeting eligibility criteria. The separate $2 million Commonwealth’s Development Opportunity Fund grant would support the 48,000-square-foot expansion, real estate improvements and operation of a Bardex ship lift. Staff describes payment from the state to the City, then to the EDA for disbursement to S23 after applicable performance thresholds are met. Staff says the EDA board took action in October. The Council items seek authorization and appropriation.

  9. November 10, 2026

    The pier lease is part of the S23 incentive package

    Staff identifies an intended long-term lease to S23 for repair and use of the 23rd Street Pier. The draft City-to-EDA lease runs January 1, 2027 to December 31, 2066. It charges the EDA no rent and allows the EDA to retain sublease rent. The draft takes the property in its current condition and requires maintenance and repair standards to carry through to a sublessee. The S23 sublease, its rent and repair milestones require separate records.

Documents 10

Search this case’s document text

10 of 10 reviewed records. Source links, source collections and release indexes are identified separately from archived copies.

  • Audit & oversight reportsSource link

    VEDP Opportunity Fund post-performance report as of June 30, 2026

    Virginia state agencies · Virginia Economic Development PartnershipDocument date: Date not specified

    The state’s closeout table lists 228 jobs, $65,741,644 in capital investment, an average annual wage of $78,648 and a reduced $1,110,330 payment for S23’s earlier Newport News expansion.

    Why this record matters

    Page 1, project 2019-140771. Reports actual jobs, investment and average wage at the deadline, plus the reduced payment and its date. Page 2 explains VEDP’s verification sources and exceptions.

    The first award provides a benchmark for the new job target: VEDP’s first closeout shows 228 credited jobs against 332, a gap of 104, and a $203,670 reduction from the amended award to the reported payment. The new expansion announcements cite 414 projected jobs and two separate $2 million grant programs. The November 10 agenda supplies the new Opportunity Fund agreement and appropriation items, as well as a separate pier lease item. Compare each executed instrument’s definitions, deadlines and remedies before comparing the new job count with the first project.

    Source notes

    Publisher-hosted report with a June 30, 2026 reporting cutoff. See page 1, project 2019-140771, and page 2 for verification notes. The cutoff is distinct from the report issue date.

    Record detailsOpen Source Document

  • OtherSource link

    Newport News EDA announcement of S23’s River Port expansion

    City of Newport News · Newport News Economic Development AuthorityDocument date: September 22, 2026

    The EDA announced 414 expected new jobs and $180 million in investment and described the earlier 332-job figure as jobs created.

    Why this record matters

    Newport News EDA announcement with the historical 332-job wording, new 414-job projection and announced state incentives.

    Source notes

    Official local EDA announcement dated September 22, 2026. Includes the original project description and the two new state awards.

    Record detailsOpen Source Document

  • Budget & financeSource link

    VEDP announcement of S23’s 414-job River Port expansion

    Virginia state agencies · Virginia Economic Development PartnershipDocument date: September 22, 2026

    Virginia announced a $2 million Opportunity Fund grant and a separate $2 million Virginia Investment Performance Grant, plus workforce training support for the new project.

    Why this record matters

    Virginia’s matching announcement distinguishes the two $2 million grant programs and identifies East Coast Repair & Fabrication as an S23 affiliate.

    Source notes

    Official VEDP announcement dated September 22, 2026. It also uses 332 as the earlier project's job count.

    Record detailsOpen Source Document

  • Meetings & decisionsSource link

    Newport News City Council regular meeting agenda for November 10, 2026

    City of Newport News · City Clerk's OfficeDocument date: November 10, 2026

    The agenda lists the S23 performance agreement, its $2 million Opportunity Fund appropriation and a separate item for the City-owned 23rd Street Pier lease.

    Why this record matters

    Items 26-169 and 26-170 identify the Opportunity Fund agreement and appropriation. Item 26-183 is a separate pier lease agenda item.

    Source notes

    Official Newport News Television meeting agenda. See G.3–G.5, items 26-183, 26-169 and 26-170. The listing identifies the measures presented to Council.

    Record detailsOpen Source Document

  • Meetings & decisionsSource link

    Newport News Council packet for the first S23 grant amendment

    City of Newport News · Department of DevelopmentDocument date: August 9, 2022

    Staff explained the increase to $1.314 million, the substitute funding for Terminal Avenue improvements and how the EDA would provide the additional match.

    Why this record matters

    The 2022 staff memo documents the substitute funding for Terminal Avenue and explains the proposed local match through the property sale price.

    Source notes

    Official Council staff memo and proposed resolution for the August 9, 2022 meeting. See PDF page 1 for funding and intended disbursement.

    Record detailsOpen Source Document

  • Meetings & decisionsSource link

    Newport News Council packet for the original S23 performance agreement

    City of Newport News · Department of DevelopmentDocument date: November 10, 2020

    November 10, 2020 staff summary and proposed resolution authorizing the original Opportunity Fund performance agreement with S23.

    Why this record matters

    The 2020 Council packet identifies the parties and the original grant. It is the public staff item and proposed resolution.

    Source notes

    City Council’s public staff item and proposed resolution. The document identifies the grant and agreement parties.

    Record detailsOpen Source Document

  • Budget & financeSource link

    VEDP announcement of the first S23 Newport News expansion

    Virginia state agencies · Virginia Economic Development PartnershipDocument date: June 16, 2020

    Virginia announced a ship repair and manufacturing campus, 332 projected jobs, $64.4 million in investment and an initial $664,000 Opportunity Fund award.

    Why this record matters

    The original state announcement states the 332-job target, the $64.4 million investment commitment and the initial $664,000 award.

    Source notes

    Official VEDP release dated June 16, 2020. The jobs and investment were prospective at announcement.

    Record detailsOpen Source Document

  • Meetings & decisionsSource link

    S23 expansion performance agreement request, item 26-169

    City of Newport News · Department of Development / City CouncilDocument date: November 10, 2026

    City staff describes eligible uses, the threshold-based disbursement path and an estimated $6.5 million local match. The packet includes a draft authorizing resolution.

    Why this record matters

    Staff estimates a $6.5 million local match and ties the pier to S23: Newport News staff estimates the local match at $6.5 million, based on 35% of S23’s net new taxes over nine years. Staff also identifies the 23rd Street Pier as an incentive. The draft gives the EDA a 40-year lease without rent to the City and anticipates S23 repairing and using the pier through a separate lease. The Council packet also describes how the $2 million state Opportunity Fund grant would reach S23 after performance thresholds are met.

    Source notes

    Official November 10, 2026 Council attachment, verified through the CivicWeb meeting page. PDF pages 1–2 contain the staff summary. Page 5 is the proposed authorizing resolution. The executed performance agreement is a separate record.

    Record detailsOpen Source Document

  • Budget & financeSource link

    S23 Opportunity Fund appropriation request, item 26-170

    City of Newport News · Department of Development / City CouncilDocument date: November 10, 2026

    The companion Council packet requests appropriation of the $2 million state Opportunity Fund grant and identifies the estimated local match.

    Source notes

    Official November 10, 2026 Council attachment. PDF page 1 describes the request, intended uses and estimated local incentive.

    Record detailsOpen Source Document

  • Contracts & purchasingSource link

    23rd Street Pier lease packet and draft deed, item 26-183

    City of Newport News · Department of Development / City CouncilDocument date: November 10, 2026

    City staff identifies the pier as part of the S23 expansion incentive. The draft deed describes the 40-year City-to-EDA lease, rent and repair obligations.

    Source notes

    Official Council attachment, November 10, 2026. PDF pages 1–2 explain the planned S23 lease. Pages 5–7 contain the proposed City-to-EDA terms. A signed lease or S23 sublease would be separate evidence.

    Record detailsOpen Source Document

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Open questions 4

  • How were the 332 and 228 job counts calculated?

    Final company job certification, aggregate verification worksheet and the records supporting the September 2026 announcement’s 332-job figure, including definitions and effective dates.

    Likely custodian: Virginia Economic Development Partnership, Newport News Department of Development and Economic Development Authority

    Determine whether the reports count the same jobs and affiliates over the same period. Aggregate totals and definitions can resolve the comparison without individual employee records.

    Submit this record

  • How was the first grant paid out?

    Executed performance agreement and amendment, payment calculation and disbursement ledger for VEDP project 2019-140771, including payments for City infrastructure and any payments to S23.

    Likely custodian: VEDP, City Finance and Newport News Department of Development

    Reconcile the $1,314,000 award, the state’s reduced payment figure, Terminal Avenue costs and the actual recipients.

    Submit this record

  • What targets and remedies are in the signed agreements?

    Adopted Council actions for items 26-169 and 26-170, the October EDA vote record, executed Opportunity Fund and local ERCR agreements and schedules, and the separate Virginia Investment Performance Grant agreement.

    Likely custodian: City Clerk, Newport News Economic Development Authority and VEDP

    Staff describes the local match formula and the state grant’s payment route. The signed instruments can establish eligible job and wage definitions, deadlines, verification, payments and reductions or recovery.

    Submit this record

  • What did the City, EDA and S23 agree to for the pier?

    Adopted ordinance for item 26-183, signed City-to-EDA lease, signed EDA-to-S23 sublease and exhibits, rent schedule, engineering repair scope, permits, milestones, inspections and records of any public expenditures.

    Likely custodian: City Clerk and Newport News Economic Development Authority

    Staff confirms the project connection. The draft establishes proposed City-to-EDA terms. The signed lease and sublease can establish final obligations and enforceable repair terms.

    Submit this record