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Yahoo
a day ago
- Politics
- Yahoo
Committee recommends adding party designations to Newport News City Council elections
The Newport News Charter Review Committee unanimously voted to recommend eliminating the city's prohibition on partisan primary elections for City Council candidates. The change would not add anything to the current voting process. If multiple candidates filed under the same political party run for City Council, then those candidates would be added to the existing partisan primary ballot for other races, where party designations would be visible to voters. 'By doing this, that's not going to dictate whether or not there's a primary,' committee co-chair Lee Vreeland said during Thursday's meeting. 'It's just as long as there is a primary, then it will be reflected.' Norfolk community members challenge school closure plan Ahead of a possible move out of state, Armed Forces Brewing Co.'s fundraising falls short Criticized natural gas compressor station project in Chesapeake will be reconsidered Norfolk to offer 2 hours of free deck parking, increase meter rates July 1 Virginia Beach Trail receives $24 million grant for next phase of the project The recommendation is one of a series of city charter changes the committee is presenting to the City Council for review. To change the city's charter, the City Council must ask the General Assembly to make amendments. State law bars party designations in local elections from appearing on general election ballots. Most cities in Hampton Roads are barred by their city charters from having partisan council elections, but some Virginia cities do hold primaries for those positions. The change would create a system where general election ballots do not contain party designations, but the final candidates are implied to be from different political parties. Independent candidates would still be allowed to run, and a primary would not be held for them. Vreeland said during the meeting her vote was a reflection of the community feedback voicing overwhelming support for the change. 'There has not been a single person who has said that they don't support it,' Vreeland said. 'For me, it's important that it is known that I listened.' The committee received eight emails from residents voicing support for partisan voting, along with one speaker. One came from Mary Vause, a Newport News resident who said partisan primaries minimize the risk of spoiler candidates winning a City Council seat. 'Without partisan local elections, most voters do not know the party affiliation of candidates who are running for local office, making it difficult for voters to make an informed decision' Vause wrote in an email. The vote came during the committee's last meeting before submitting its report to the City Clerk's office June 30. It will then be up to the City Council to review. City Council appointed members to the committee in April 2024 to examine the City Charter and look for areas of improvement, and its first meeting was last July. The city considered requesting several charter change amendments in 2023, but ultimately held off due to a lack of consensus. Other recommendations already approved for City Council review include having council appoint School Board members rather than hold elections, and making the mayor a full-time position, limited to two terms. However, the committee rejected recommending shifting the power to remove department heads from the city manager to the mayor, and is definitively against creating a strong mayor system in Newport News. 'If it was to imply of leave open for interpretation whether or not a full-time mayor would leave any room for a strong mayor, I would have to not vote for full-time mayor,' Vreeland said. 'I think we do need to make a statement.' Additionally, the committee opted not to make a recommendation on ranked choice voting in Newport News, because council already has the authority to adopt it without a charter adjustment. Devlin Epding, 757-510-4037,
Yahoo
11-04-2025
- Business
- Yahoo
Shuttered Norfolk brewery at center of ‘woke mob' controversy needs nearly $2 million in 20 days
An image of Armed Forces Brewing's planned "military tribute" brewery in Norfolk used in the company's marketing. Armed Forces Brewing Company, the lightning-rod military tribute beer company that closed operations in Norfolk last month, is teetering on the brink of survival. In an April 4 Securities and Exchange Commission filing and in emails to investors, Chief Executive Officer Alan Beal reported that the company was $1.7 million in debt, despite raising millions in recent years, and needs $2 million of investment by April 29 or it may permanently cease operations or file for bankruptcy. The brewery closed its taproom last month a year after opening. That followed a controversial launch after hundreds of community members opposed what they said was a divisive business whose marketing glorified violence, threatened LGBTQ people, and said those with different views don't love America. Today, Armed Forces is a brewing company unable to make and distribute beer. A year after opening, controversial Norfolk brewery closes The April 4 filing reveals a company in freefall. Norfolk's City Treasurer padlocked its brewing facility for failure to pay taxes. Its contract brewing partner in Florida stopped production last summer after it failed to pay its bills. Three of the four board members who remained after an earlier purge have resigned, leaving only Beal. A growing number of creditors are suing or threatening legal action. The building, owned by a company controlled by New Jersey entrepreneurs (Armed Forces owns 28%), is on the market for $5.45 million, $2 million more than the 2023 purchase price, according to city records. Now, some who have invested money into the venture are rebelling. Maryland investor and Navy veteran Jeffrey Allen Davis said after he posted on Facebook about exploring a class-action suit that he heard from numerous others who were also interested in taking action against the company. While he doesn't expect to get back his investment, he and other disappointed investors plan to create a website and explore their legal options. 'He's a fraudster,' Davis, a refrigerator engineer and eight-year veteran who invested $1,000, said of Beal. 'He's just a scam artist.' Davis was one of the investors whom Beal emailed recently, begging for money to stay afloat. Beal also took to social media and YouTube on the Survival Dispatch News, a prepper site, to lash out against his detractors even as the SEC filing reveals a company that burned through more than $8.5 million from investors and still went deeply into debt in just a few years. He also claimed he'd filed criminal charges against some opponents, though The Mercury could find no record of that in local courts. 'The city treasurer, who appears like many in the city government to sympathize with or to be afraid of the woke mob and their social agenda, with no legal basis whatsoever had locksmiths change the locks on the building we were leasing, and have to this date prevented us from accessing the building and its contents, including a large amount of beer on the premises and in the tanks,' Beal wrote in the SEC filing. 'This has caused additional economic damage as we are unable to fulfill contracts to distribute the beer being held hostage by the city's actions.' Norfolk Treasurer Daun Hester declined to comment through a spokesperson. Ironbound AFBC Properties LLC, the owner of the property, has paid $47,761 in delinquent property taxes. There is a balance due for fiduciary taxes, which include amusement and food and beverage taxes, that the spokesperson said was not public information. Debts and suits accumulating The tax lien is a fraction of Armed Forces debts. Liens have been filed against it for more than $87,000 by a construction company, more than $10,000 by a fence company, and more than $11,000 by a design company. Lawsuits, according to the SEC filing, have been threatened by three lenders it owes more than $350,000. Ironbound AFBC Properties LLC, owner of the brewery's building, is owed $321,000 in back rent. Armed Forces also owes the Virginia Department of Labor nearly $27,000 for failing to meet its last employee payroll. Other bills may be outstanding. Armed Forces ran a promotion with the Norfolk Tides last season. Joe Gregory, the team's general manager, did not return a call seeking to find out whether it had been paid. John Newell, Armed Forces' former logistics manager, and his wife Martha have filed a warrant of debt in Norfolk General District Court with a hearing date next month. Nicole Couch, the taproom manager who Beal left to tell employees they were closing, said she and others have not received their final paychecks. Gov. Glenn Youngkin announced Armed Forces' move to Virginia in July 2023, touting $300,000 in incentives. A spokesman for the Virginia Economic Development Partnership said Armed Forces qualified for $24,500 in hiring support, but did not apply for it. It's not clear if any other incentives were paid. Sean Washington, Norfolk's head of economic development, said the city did not provide any funding to the company. Armed Forces quickly burned through millions As it began brewing in Norfolk, the company raised about $8.5 million from more than 10,000 investors who paid a minimum of $200 in what was essentially a crowdfunding campaign. Some contributors said their rewards, ranging from stickers to hats, never arrived. Those investors have no voting rights and have received no dividends. The stock cannot be sold on the open market. Armed Forces lost $1.76 million for the first six months of 2024, according to an SEC filing. The company lost $2.4 million in 2023. Armed Forces Brewing does not own the former O'Connor property, according to SEC filings. It is owned 72% by a third party, Ironbound AFBC Properties, LLC. Armed Forces has the remaining 28%, but the SEC filing reports that even if the facility is sold, it's not clear whether Armed Forces will be paid, or if the proceeds will be applied to the debt. The third-party owners include Evan Almeida, a principal in Ironbound who was briefly on the Armed Forces board. He has a property investment firm in New Jersey and is also an owner of EmpireATM. He and his brother, Michael, are listed as $50,000 to $99,000 investors on the Armed Forces site. Evan Almeida did not respond to an email seeking comment. According to the SEC filing, Armed Forces' lease with Ironbound called for $549,600 payments in 2024 and 2025. Beal claimed the company was considering a plan to brew in San Diego, St. Louis, and Florida though it's not clear how many, if any, employees remain. 'We plan to relocate to a city and a state that actually loves American values and is pro-business and absent of any woke mob mentality,' he wrote in one of two fundraising emails. In another email, Beal said 'we have had 80 members of our shareholder family pledge almost $100,000.00 of new investment commitments and another 25 who are in the process of completing approximately $10,000 more towards our $1.7M-$2M funding goal.' He said any money raised would be held in escrow until the company raised enough to pay off or refinance its debt. If it did not meet the $1.7 million goal, Beal said the funds would be returned. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
10-03-2025
- Business
- Yahoo
A year after opening, controversial Norfolk brewery closes
An image of Armed Forces Brewing's planned "military tribute" brewery in Norfolk used in the company's marketing. When Norfolk's City Council approved the permit for the controversial Armed Forces Brewing Company over some neighborhood objections, several members said let the marketplace decide its fate. It didn't take long. A year after opening its doors, Armed Forces is closing, after a raucous launch when hundreds of community members opposed what they said was a divisive business whose marketing glorified violence, threatened LGBTQ people and said those with different views don't love America. A military-themed brewery sparks a fight in a Virginia military city Early Thursday afternoon, Nicole Couch, the taproom manager, got a call from Alan Beal, the company's chief executive officer, with the news employees had been expecting. The company had been bleeding red ink for years. A reconfigured board had met that morning and told Beal to 'lock it up' and close the Norfolk facility after only 13 months. Couch, a local beer industry veteran who had worked to revitalize what she called grim taproom attendance after being hired in June, realized she couldn't tell her staff the news by text. She sent an emergency message saying the taproom would not open that day. Minutes later, they agreed to meet at Smartmouth Brewing in Norfolk that night. There, she told them they had lost their jobs. She'd hoped Beal would issue an official statement after their phone call, as he'd told her he would in 30 minutes. He didn't. Employees discovered the news and his statement by checking Facebook during the meeting. They were appalled that Beal was blaming Norfolk residents for the failure. 'There was no thank you (to the staff). It was all woe is me,' she said. 'Our ability to profitably operate in Norfolk was severely affected by the local woke mob – a few individuals in the area who have no love for the traditional American values we hold as a company,' Beal wrote, concluding that the taproom and brewery would go up for sale. 'These people spread outright lies about our company, our employees and our shareholders before we even opened our doors.' But interviews with nine former employees and contractors for Armed Forces suggest that local opposition played a smaller part than Beal's claims. They said the Norfolk taproom, where customers ebbed and flowed depending upon events, did not reach its revenue potential partly because of the controversy. But Armed Forces ultimately suffered setbacks selling beer, notably losing market share after failing last year to pay Brew Hub, a Florida contract brewery it had been using since before the Norfolk purchase. 'The closing of AFBC had nothing to do with a 'woke mob,' former mid-Atlantic sales manager Tim Labbe wrote on Facebook, saying he was part of a team growing sales in seven states. 'We had great relationships with the major chain grocery stores in those states as well as big distributors. When Alan (Beal) stopped paying bills and stopped complying with the agreements in place that all dried up.' The stories from former employees are strikingly similar. They joined Armed Forces believing in the mission to support veterans and first responders. They stayed even though paychecks occasionally were late, their suggestions to improve the business were ignored, bills were not paid, some charitable obligations were not met, and key repairs and improvements to the brewing operation languished for weeks because Beal said there was no money. The few employees covered by health insurance paid by the company learned in November it would be canceled on Feb. 1. Beal, they said, focused more on marketing and luring investors than making the brewery profitable, funding promotions with NASCAR, the Norfolk Tides and numerous other events while improvements and repairs to the brewery languished. Beal did not respond to a voicemail message or messages sent to two of his Facebook profiles requesting comment. Gov. Glenn Youngkin announced Armed Forces' move to Virginia in July 2023, touting $300,000 in incentives. A spokesman for the Virginia Economic Development Partnership said Armed Forces qualified for $24,500 in hiring support, but did not apply for it. It's not clear if any other incentives were paid. Sean Washington, Norfolk's head of economic development, said the city did not provide any funding to the company. Norfolk City Council OKs controversial military-themed brewery As it ramped up the Norfolk operation, the company raised about $8.5 million from more than 10,000 investors who ponied up a minimum of $200 in what was essentially a crowdfunding campaign. Contributors got rewards ranging from stickers to hats, although some former employees who invested said they never arrived. Those investors have no voting rights, and the company says it is uncertain if it will ever issue dividends. The stock cannot be sold on the open market. Armed Forces suffered a net loss of $1.76 million for the first six months of 2024, according to a recent Securities and Exchange filing. The company lost $2.4 million in 2023. According to the filing, the company had net cash of $12,239 on June 30, 2024, down from an originally unaudited reporting of $381,370 and down from $282,549 on Dec. 31, 2023. It appears from SEC filings that Armed Forces burned through the majority of cash from investors over two years to cover operating losses. John Galanti, who has worked in beer sales for nearly four decades, came aboard Armed Forces in March 2022 as national sales director. Galanti left the company in July 2024 after learning it pulled back from pricing and promotional agreements with Publix, a chain of 900 stores in Florida, and had failed to pay Brew Hub, a contracting brewery in the state. 'You can't survive in Florida without having Publix,' he added. Galanti said he'd heard rumors about the failure to pay and the refusal of Brew Hub to release beer to distributors but there always were excuses. When he confirmed that was the case, he gave notice. 'I didn't want any part of anything like that,' he said. He advised the company against purchasing the former O'Connor Brewing facility for $3 million in 2023, far above the $1.86 million assessed value, according to city records. 'I would have gotten something a lot smaller,' Galanti said. 'I've been doing this 37 years, so my advice was find some small locations of some brewers that were looking to sell. It would have probably been about a quarter of the price of what they paid (for O'Connor). But again, I stayed out of that because they were just like, 'We'll handle this part.'' Armed Forces Brewing does not own the former O'Connor property, according to SEC filings. It is owned 72% by a third party, Ironbound AFBC Properties, LLC. Armed Forces has a 10-year lease and an option to purchase after the first year. The third-party owners include Evan Almeida, listed as a principal in Ironbound. He has a property investment firm in New Jersey and is also an owner of EmpireATM, a company with multimillion-dollar revenues. He and his brother, Michael, are listed as $50,000 to $99,000 investors on the Armed Forces site. Ironbound, according to city records, is overdue on a $4,600 tax bill and owes nearly $13,000 overall. According to the SEC filing, Armed Forces' lease with Ironbound calls for $549,600 payments in 2024 and 2025 with increases after that. Galanti called that rent 'an insane amount of money.' Galanti thinks the company could have been successful by dominating a few grocery store markets rather than opening a taproom and focusing on attracting investors. 'It's great if you're trying to get investors, but the bottom line is you have to sell beer because investors can come and go,' he added. Beal is paid an $87,000 salary. The rent on his Norfolk apartment is covered by the company. He uses a leased company vehicle. He now owns 7% of the voting stock, down from 27.5% according to SEC filings, including an amended one that appeared on Monday reporting the Norfolk closure. He said in his announcement the company would relocate to friendlier territory, but Galanti and others formerly involved with the company said that's unlikely. Civil actions filed in Norfolk, Portsmouth and Henrico seek payment of bills, but the brewery's former employees say the problem is much deeper. A hops provider from the Midwest posted that the company owes him $2,600. Allen Fabijan, who runs an advertising and marketing company, connected with the company following the initial controversy when Armed Forces' impending arrival in Virginia was announced. The controversy centered on social media posts by Robert O'Neill, a former board member and brand ambassador, which criticized the Navy for using a drag queen in a recruitment ad, mocked transgender people and refused to wear a mask on an airplane during the COVID-19 pandemic. Shortly after the company's purchase, he was arrested in a Dallas suburb for public intoxication and misdemeanor assault after a security guard who attempted to help him from a bar to his room told police he called him a racial slur. O'Neill was removed from the company's website, but later reinstalled. Fabijan said he often works supporting veterans and first responders so he was eager to partner with Armed Forces. 'I was like, wow, what a great partner this will be for the community because they're going to give back to the causes that I feel matter,' he said. He orchestrated their opening and did other work, but was only paid a deposit. 'It was always an excuse, another excuse, another excuse. 'Oh, we'll get it taken care of,'' Fabijan added. He estimated that Armed Forces owes him about $20,000. In a March 2024 press release, Armed Forces reported that a portion of sales were distributed through the AFBC Veterans' Foundation to organizations 'that help homeless veterans, combat PTSD, and address the veteran suicide crisis.' Beal told Fox Business host Maria Bartiromo about the foundation. But the IRS revoked its tax-exempt status for failing to file tax returns for three consecutive years. During the interview, he also cited donations to Code of Vets, organized by Gretchen Smith, an investor. That charity's nonprofit status also has been revoked by the IRS and its site is dark. The latest SEC filing reports that Armed Forces made $176 in charitable donations during the first six months of 2024. When charity events he proposed began to fall apart, Fabijan started recommending other veteran-owned breweries in the area (Beal is not a veteran). 'I'm one person of many that they screwed over,' Fabijan added. 'Do I understand the pushback that was coming from certain members of the community that didn't want to support the brand? Do I think that it was slightly over the top? Sure. But overall, the issue there wasn't the community. The issue was that he (Beal) burned the bridges of the people that could help.' Galanti is a religious man and a veteran who is on the board of DDSVets, a nonprofit that provides service dogs to veterans, active-duty military and first responders. He thought Armed Forces handled the LGBTQ+ controversy poorly. 'I'm a big, firm believer in God,' he said. 'You accept everybody.' He saw Armed Forces as a way to merge his passion for beer and helping veterans. 'They actually had a great concept,' he said. 'It really is a shame, because it could have really benefited a lot of people, a lot of veterans.' Couch, a military spouse, stayed through delayed paychecks and denials to fund little things like a $200 bingo set that might improve taproom attendance. She believed the narrative with the neighborhood could be changed by talking face to face and revising the tenor on social media. She grew protective of her team and thought the taproom was turning a corner. The first few days of March yielded revenue equal to the first half of February. She had events – retirements, fundraisers, celebrations of life – scheduled for March and April. Taproom employees, including her, have been told they will not receive their final paychecks. They have not heard directly from Beal and they have not been let into the brewery to get their personal items. They deserved better, she said. 'We had a really cool team,' Couch added. 'We had a really great team.' SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
07-03-2025
- Business
- Yahoo
Armed Forces Brewing Company leaving Norfolk, to relocate elsewhere
NORFOLK, Va. (WAVY) — The Armed Forces Brewing Company's tumultuous time in the Mermaid City is coming to an end, as its CEO said Thursday he would close the taproom and brewing facility and move it to another location, and that he planed to file criminal complaints 'against some of the perpetrators' that he claims forced his hand. 'Because of the actions of a group of people with a woke agenda who continue to affect our ability to operate profitably in Norfolk, we have closed the taproom and brewing facility in Virginia and plan to relocate our business to a more pro-small business social and economic climate,' said Alan Beal, CEO of Armed Forces Brewing Company. In December 2023, Norfolk City Council approved a conditional use permit for the brewery, which took over the former O'Connor Brewing building on W. 24th Street in the Park Place neighborhood. Controversial Armed Forces Brewing gets permit approved by Norfolk City Council That approval had come after months of heavy pushback from the community, which had argued that the company's messaging was divisive and bigoted, in particular, comments made by former Navy SEAL and company spokesperson Robert J. O'Neill, and that the brash military theme was a 'cheap marketing ploy' and disrespectful to the region's prolific military contingent. Norfolk residents, elected officials and those in the craft beer industry said they were not thrilled by anti-LGBTQ+ rhetoric and other 'divisive' messaging coming from the Armed Forces Brewing Company, which had announced its intention to locate in Norfolk in July 2023, just after O'Connor Brewing had announced that it was closing up shop at W. 24th Street after 13 years, with the military tribute brewer and veteran-owned and operated Armed Forces Brewing taking its place. 'Divisive' brewer coming to Norfolk gets pushback from residents, elected officials Beal said the company had chosen Norfolk for its large military and veteran community, and appreciated the support it did get in the region. The Norfolk location was Armed Forces Brewing's flagship brewery and its first in Virginia. , as a news release about the brewery noted that the Virginia Economic Development Partnership worked with the city of Norfolk and the Hampton Roads Alliance to secure the project for Virginia, with Norfolk winning out over locations in Florida and Maryland for the project. The Virginia Economic Development Partnership came up with Project Seawolf, which offered Norfolk's O'Connor Brewing for sale and more than $300,000 in tax incentives to Armed Forces Brewing, , which itself cited reporting from the . Virginia_s_Financial_Offer_for_Project_Seawolf_3.8.23-1Download But after it opened its doors Jan. 27, 2024, Armed Forces Brewing lasted in Norfolk just over a year before Beal's announcement Thursday. 'Unfortunately, our ability to profitably operate in Norfolk was severely affected by the local woke mob — a few individuals in the area who have no love for the traditional American values we hold as a company,' Beal said. 'These people spread outright lies about our company, our employees and our shareholders before we even opened our doors. We unfortunately live in a world where getting called a 'homophobe,' 'transphobe' and 'racist' over and over by a small number of people can get amplified online making it difficult for a small business to overcome at the local level. The sad fact is that some people believe what they hear regardless how obviously false it is. The sadder fact is these people cost good people in Norfolk their jobs.' When Armed Forces Brewing announced its arrival to Norfolk, the governor's office noted it would create 47 new jobs and employ at least 70% of its workforce company-wide from U.S. military veterans. Beal accused 'the local woke mob' of spreading lies about the business and filing false complaints with local authorities, while also threatening local companies who worked with Armed Forces Brewing. He said in addition to filing criminal complaints in Virginia, they intend to help in prosecuting them. 'We fought back and will continue to do so, but the cumulative effect of their actions have made it impossible to profitably run the taproom from Norfolk,' Beal said. 'As a result, the building and taproom will be put up for sale while we look for a new home and headquarters in a friendlier environment.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
