United Way of SWVA to open workforce hub

Nonprofit will convert former Kmart in Abingdon

Published May 22, 2023 by Katherine Schulte

The United Way of Southwest Virginia plans to convert an 87,000-square-foot former Kmart in Abingdon into a workforce development hub, an estimated $23 million project, the United Way chapter, Food City and town of Abingdon announced Friday, May 19.

Construction is set to begin in July, and UWSWVA expects to open the building in July or August 2024. So far, the nonprofit has raised $14 million for the project.

“United Way of Southwest Virginia purchased this building to serve as an anchor institute for the hub-and-spoke model of workforce development that will change our region for the better,” said Brendan McSheehy, UWSWVA board chair and vice president of innovation and intellectual property at Universal Fiber Systems LLC, in a statement.

The model situates the Abingdon building as the initiative’s primary anchor campus, with four smaller facilities across the region serving as spokes.

The hub will house:

• STEM labs for teacher training;
• A licensed early childhood care and education center;
• Workforce development and training programs;
• And a shared services alliance consolidating back office functions for the 208 child care providers in the region.

The hub serves as part of UWSWVA’s Ready SWVA child care initiative, which the chapter launched in December 2021 to expand access to affordable child care, strengthen the provider network and increase the number of credentialed teachers in the region. The chapter expects to create at least 324 additional child care slots for children under age 5.

Food City, owned by K-VA-T Food Stores, partnered with UWSWVA, lowering the price of the building well below fair market value, according to UWSWVA. The nonprofit bought the building for $3 million.

“This is a critical moment for United Way of Southwest Virginia and the communities we serve,” UWSWVA President and CEO Travis Staton said in a statement. “It would not be possible without the generosity and support of Food City.”

UWSWVA will also begin a fundraising campaign for the project. The chapter secures $11 in grants for every $1 donated. UWSWVA also has “multiple corporate philanthropy and sponsorship opportunities in the works,” according to a news release.

On May 17, UWSWVA and United Way of the New River Valley announced that the latter would merge with the former. UWSWVA serves about 20% of the state and also offers regional programs outside of its service area in the city of Radford and Montgomery and Floyd counties. Radford and Montgomery and Floyd counties comprise the United Way of the New River Valley’s service area.

    Subscribe to Virginia Business.   Get our daily e-newsletter.