Altria Group, the parent company of Philip Morris USA, will relocate to the Near West End in the near future as part of a cost saving measure. As Altria struggles to cut costs and remain viable as cigarette use decreases, what will this mean to the Near West End’s economy? More jobs? Construction? Expansion if Altria develops alternate sucessful products?

Altria Group is relocating its headquarters from New York to the Philip Morris USA campus on West Broad Street in Henrico County.

Altria Group Inc. is planning additional cost reductions, as the parent company of cigarette maker Philip Morris USA seeks to build its U.S. business after the spinoff of its international sister company.

The cost-cutting is part of a strategy to meet financial targets as U.S. cigarette consumption slowly declines, executives said yesterday.

“We are optimistic about our future,” Philip Morris USA CEO Michael E. Szymanczyk told investors and analysts at a conference in New York. He said the company’s strategy includes gaining market share in cigarettes and capitalizing on its Marlboro brand, while also expanding its business into products such as smokeless tobacco and cigars.

Szymanczyk will become chairman and chief executive of Altria Group after the company spins off Philip Morris International on March 28. Without the international unit, Altria will own its domestic cigarette company, Henrico County-based Philip Morris USA, and a 28.6 percent stake in Britain-based beer maker SABMiller PLC.

……

The company projected that cigarette volume in the United States will fall between 2.5 percent to 3 percent in the next few years, but Szymanczyk said Altria is well-positioned to expand, citing its 50 percent share of the U.S. cigarette market, and its ventures in growing categories such as smokeless tobacco and cigars.

Asked whether the company foresees a bottom to the U.S. cigarette market or even its eventual disappearance, Szymanczyk said he couldn’t answer that.

“I know it is a big business, and it is a profitable business,” he said. “What we do is compete for a share of that market as it exists, and we seem to be pretty successful.”

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Three buildings at the Reynolds property at the intersections of Glenside Drive, 64 and West Broad Street in the Near West End are due to be complete in the Spring of 2008. Likely, you’ve noticed these projects already, either on your way up Glenside Drive, or from 64. At Glenside and Forest the Bon Secours Building glass is starting to go up, but neighbors are still struggling with how monstrous and unscreened this building is from their back yard. Although the building is 2 stories shorter then originally proposed and set deeper into the hill and farther away from the Charles Glen community houses, it is still way to close for the comfort of those whose property abuts the project. Screening ideas to make the project more tolerable to neighbors include planting bamboo and raising the height of the privacy fence.

Richmonders, what do you think of this project?

The other 2 buildings being constructed currently on the Reynolds Crossing Property include a Westin Hotel, also scheduled for completion in Spring of 2008. It will be closer to the West Broad Street, Philip Morris USA side of the property, close to 64. And an office building that is styled to look similar to the Alcoa office building that is already built on that property and that is currently undergoing a floor-by-floor renovation also scheduled to be complete in Spring of ‘08.

The tenants from the Alcoa building are being moved in to the brand new building to make way for a new tenant who is leasing the entire Alcoa building. One can only guess, but it seems likely to me that Philip Morris USA/Altria is the new tenant for the Alcoa building since it is attached to the historic Reynolds building via an underground tunnel — AND they announce recently (as reported here on NWEN) that Philip Morris USA’s parent company, Altria, will be moving their headquarters here from New York in the near future.

Other parts of the project which have changed considerably since Reynolds proposed putting a 24-hour Wal-mart at the location 3 years ago. A Bookbinders restaurant (not specified if it will be a casual grill style like in Chesterfield, or more formal like the one in Shockoe Bottom), with a patio, and a Max and Erma’s franchise (currently they have a location at at Ridgefield and John Rolfe Parkways) will squeeze in close together near the Westin Hotel and share a parking area. Their opening dates are yet to be determined. The last piece of the puzzle would be a daycare.

Beyond that, there is a large plot of land at the northeast corner of Forest and Glenside drives that is approved for 24 hour use (like a gas station), but Charles Glen neighbors to the development are hoping for more offices rather than a 24-hour anything. And who can blame them. MeadWestvaco was considering this site for their corporate headquarters, but chose downtown instead. (Actually, in the sense of full disclosure, I should mention that I live in Charles Glen, close enough to hear the construction and be directly affected by the development myself).

Again, Richmonders, what do you think of this development?