In Charles City, a financial crisis has raised questions on economic development

Over the last year, Charles City County has faced a financial crisis as alleged overspending has led to leadership taking out two Revenue Anticipation Note (RAN) loans at $5.2 million. With the county undergoing a forensic audit as well following a court order, the problem that plagues the county still exists: How will Charles City address economic development?

The last year has been a telling and challenging time for county leadership and their staff when it comes to finances. The combination of the RAN along with the departure of former county administrator Michelle Johnson initially sparked citizens to speak out on the issue. The tipping point came in Feb. 2025, when a request for the county audit failed to come to fruition after citizens repeatedly asked for it. Once the audit was completed later in the year and numbers were released, it was discovered that the county had overspent, with a computer error being partial of the blame. But even with the audit, more than $300,000 remained unaccounted for.

However, those issues still does not resolve the fact that Charles City County needs some sort of financial and economic development. Currently, Waste Management has been the top revenue producer for the county. But even with that, Charles City and Waste Management haven’t seen eye-to-eye. A lawsuit in the mid-2010s for funds owed to the county from Waste Management led to Charles City making several mid-year cuts from several departments. Eventually, the county and Waste Management reached a $1.3 million settlement, but once again in 2025, an audit yielded the discovery that Waste Management had not been paying their portion of taxes to the county, which has led to an investigation by Charles City and its legal team.

The landfill has been essentially the one trick pony for the county when it comes to revenue, with several other businesses such as Howard Brothers Construction and Evelyn Logging serving as the next top taxpaying contributors. Still, the county knows it needs money and began to look into other streams, which led to the possibility of data centers.

Data centers house several electronic infrastructure for internet and security servers. In Northern Virginia, more than 100 facilities exist as data centers are the fastest growing industry in the world. So, when Charles City looked into it, several entities have inquired about bringing those facilities to the county. But when a request to rezone agricultural land to light industrial to construct buildings in that area, citizens were not happy to hear about it.

Citizens began voicing their displeasure to the board that a company, specifically Diode, who owns property already in the industrial area of the county would want to rezone land to build there then use what they already have the rights to. The debate and outrage from citizens has led to the decision being delayed at least twice, with the next opportunity to discuss and make a decision coming up at the Aug. 26 regular board meeting of county leaders.

While the financial impact of data centers could greatly benefit Charles City, citizens argue that the funding wouldn’t arrive for years. Furthermore, county residents say that residential areas would be harmed by the rezoning and that the way of living in Charles City would change.

So now, Charles City has returned to an impasse when it comes to how to handle both the physical and financial growth in the county. What does the county do?
Does the county grant the rezoning of land to build the data center? Does the county raise county taxes next year to offset expenses?

There are several questions left unanswered of what to do in this situation. County residents look for small wins, such as a grocery story, and maybe even a restaurant. Instead, many complain how they are saddled with ongoing disputes of solar farms being placed in sporadic parts of the county and alleged dealings behind closed doors that may have a conflict of interest with citizens’ desires.

Ultimately, Charles City County has to figure out how to fix their financial problems sooner rather than later. Many residents believe the county is catering to outside entities and tourists rather than residents. In the end, the county and citizens are going to have to figure out what works because right now, there are no clear solutions and there definitely won’t be any clear winners.

The fallout and decreasing revenue is what drives citizens away, while others move into the county for the lifestyle. But there has to be balance and responsible growth, and that starts with a foundation and plan. The county’s comprehensive plan spoke about the courthouse development several years ago, but the only major development we have seen from that has been the opening of Market 5, which recently became a reality less than a month ago. Plans for affordable housing, a wastewater plant, and local grocery store have all fallen by the wayside.

Simply put, Charles City County needs to have a talk with Charles City County. By that, I mean if there is no communication between those who run it and the input of citizens on committees, the county will continue to be in a cycle where growth is stagnant or slow.

Charles City County will need a wake-up call to take place, because they do not want to be known as the locality that couldn’t support itself. The county can bounce back, but they have to do their planning and thinking now with all parties involved to make sure that things can be righted for the next generation and make the locality attractive to the younger generation.