In 2018, Clyde Stacy purchased the Bristol Mall amid economic decline in Southwest Virginia's coal country.
Once a bustling retail hub, the mall had fallen into disrepair, its parking lot overtaken by weeds and vacancies.
Bristol, known as the birthplace of country music, was struggling with over $100 million in debt, leading to school budget cuts, while nearby mining communities faced decades of job losses.
Former coal industry leaders Stacy and Jim McGlothlin pursued a bold plan they termed a “moonshot”: converting the mall into a casino despite gambling being illegal in Virginia at the time.
Since its opening in November, the Hard Rock Hotel & Casino Bristol has emerged as an unexpected symbol of hope, employing 1,400 people and generating tax revenue that benefits the surrounding coal-impacted areas.
While the casino is arguably the region’s most significant economic success in years, it underscores the difficulties in replacing the thousands of high-paying mining jobs lost.
Many casino employees earn near the minimum wage of $17 per hour, less than half the average miner's salary.
Despite efforts by state and federal officials, including incentives and outreach from the governor, Southwest Virginians have largely accepted that the mining boom will not return, even as political figures promise coal’s revival.
Tens of millions in public funds have been invested in economic diversification, but replacing mining jobs remains a daunting challenge.
Local officials have backed controversial proposals such as a large landfill, a retail cannabis venture that failed to materialize, and plans for data centers powered by nuclear energy.
Residents have expressed concern that these projects offer few quality jobs and pose environmental and social risks, threatening the region’s natural beauty and its emerging tourism sector.
The casino itself has divided opinion, with religious groups warning of increased crime and gambling addiction.
Critics argue these initiatives reflect a continuation of undesirable industries being pursued under the guise of job creation, reminiscent of the region’s history with coal mining and prison construction.
Skepticism is heightened by the involvement of politically connected former coal executives who once dominated the local mining economy.
Michael J. Quillen, former head of the nation’s largest metallurgical coal company, leads efforts to attract data centers, while Jim McGlothlin, who sold his coal business for nearly $1 billion in 2009, has funded philanthropic causes and the casino project.
McGlothlin and Stacy collectively contributed over $2 million to political campaigns advocating for legalized casino gambling in 2020, successfully outpacing competing proposals.
In interviews, McGlothlin and Quillen expressed a desire to give back to the region that brought them success, though Stacy declined comment after selling his casino stake.
“I’ll do whatever I can to help,” McGlothlin stated.
Nonetheless, many locals remain doubtful. Amy Branson, a pharmacist and anti-landfill organizer, said the community tolerated coal’s environmental damage because it provided economic opportunity, whereas current projects offer less favorable prospects.
“This feels like another exploitation of Appalachia,” she said. “They take advantage of us and expect us to accept it.”
Seeking Sustainable Solutions
Southwest Virginia, bordered by West Virginia, Kentucky, Tennessee, and North Carolina, was transformed in the late 19th century by timber and coal industries, attracting workers to hazardous jobs.
During prosperous periods, miners unionized and achieved middle-class status, but the subsequent downturns have been severe and lasting. By 2023, just 2,500 miners remained in the state, a fraction of the workforce at coal’s peak in 1942.
Decades of mining left behind scarred landscapes and thousands of acres controlled by energy firms, complicating efforts to develop tourism or new industries.
As workers departed, businesses closed and local governments reduced services.
In 1996, coal executives including McGlothlin and Quillen secured tax incentives to preserve mining jobs, a program costing over $390 million before its 2022 termination following a state audit citing minimal economic impact.
Federal investments have since focused on converting polluted mines into business parks and recreational spaces, expanding broadband, and strengthening community colleges, with at least $200 million directed toward economic development between 2013 and 2023.
Results have been mixed. The region lost roughly 6,000 jobs over that decade, and high-profile openings of call centers or manufacturing plants often overshadow quietly shuttered ventures.
A medical glove factory in Wythe County stalled over funding disputes in 2023, and an $8 million state-funded facility in Bristol intended for energy companies now serves as an orthopedic clinic.
Despite these challenges, some signs of progress have emerged. Small manufacturers have driven wage growth faster than elsewhere in Virginia since the pandemic, and areas like Washington County have seen an influx of residents drawn by affordable housing, natural beauty, and cultural events such as the Bristol Rhythm & Roots Reunion.
Yet, economic hardship persists in coal counties. In Buchanan County, 30% of children live in poverty, nearly three times the state average, and infrastructural limitations hinder industrial development.
Volunteer Susan Coleman observed the steady outmigration of young people seeking opportunities elsewhere.
“There’s really nothing here to keep young people,” she said.
Controversy Over Waste Management Plans
Russell County has grappled with similar challenges, proposing a massive landfill as a revenue source amid decades of population decline and school closures.
When Stacy and business partner John Matney proposed the landfill in a former coal mining area in 2022, county officials were intrigued by projections of over $200 million in revenue across 40 years.
Vice chair of the county board, Steve Breeding, called the project a potential “game changer.”
However, many locals opposed the plan, fearing environmental damage and falling property values.
Critics highlighted that the landfill was proposed near a historic miners’ strike site and that the developers did not reside in Russell County, while political leaders appeared to facilitate the project’s approval.
Branson accused officials of underestimating residents’ ability to make informed decisions.
Stacy has a history of significant political donations, including over $350,000 to Governor Youngkin’s campaigns and contributions to local politicians.
In early 2024, Stacy and Russell County officials briefed the governor on landfill plans.
Terry Kilgore, a powerful Republican delegate and long-time regional dealmaker, has close ties to Stacy and Matney through political support and legal work.
Kilgore co-sponsored legislation enabling the Bristol casino, financially beneficial to Stacy, and served as legal counsel in related disputes.
While Kilgore’s relationship with casino developers has become strained over competing gambling interests, he chaired a state commission that funded the cleanup of a polluted industrial site owned by Stacy and Matney, though the site remains unused.
Kilgore defended overlapping legal and governmental roles as common in close-knit communities, but opponents viewed this as prioritizing donors over constituents.
In 2023, records revealed Kilgore attempted to suppress criticism of the landfill project, raising conflict of interest concerns; complaints filed against him were dismissed.
Following prolonged opposition, the county board ended negotiations with Stacy and Matney in mid-2023, but community activists remain wary of future development plans.
A Future Beyond Coal
Despite persistent mistrust, any economic resurgence in Southwest Virginia is unlikely to occur without involvement from former coal industry leaders.
Many of the region’s wealthiest business figures are ex-coal executives, and energy companies continue to hold vast land holdings.
The Bristol casino’s success depended heavily on the financial resources and political influence of McGlothlin and Stacy.
After years of rejected gambling proposals, McGlothlin partnered with a Democratic legislator in 2019-2020 to reframe casino legalization as an urban revitalization strategy, contributing generously to lawmakers.
A supporter of the casino legislation now works part-time for a charitable foundation linked to McGlothlin’s enterprises.
Coal interests also play a central role in an ambitious plan to convert former mining lands into a data center hub powered by solar and potentially nuclear energy.
Quillen leads this initiative through the Energy DELTA Lab, which aims to leverage underground water access from old mine shafts to cool servers.
This project symbolizes a transition from coal to new energy technologies, seeking to reestablish Southwest Virginia as an energy center.
While Northern Virginia has grown resistant to expanding data centers, Southwest Virginia offers tax incentives, with projections of 1,600 jobs and substantial tax revenue.
However, skeptics question these job estimates given data centers’ low staffing needs, and public backlash followed the governor’s 2022 announcement promoting small nuclear reactors in the region.
The governor later indicated the first reactor would likely be located elsewhere.
Quillen acknowledged the nuclear power promotion caused public resistance but emphasized that coal is no longer the region’s economic savior, and trade disputes may further hinder coal exports.
Will Payne, a DELTA Lab co-founder, recognizes the boldness of the data center concept but insists that unconventional solutions are necessary.
“Many say it won’t succeed,” he said, “which motivates us to prove them wrong.”
0 Comments
No comments yet. Be the first to comment!