VIRGINIA BEACH
The hotelier behind the public-private deal that birthed the 31st Street Hilton is back before the City Council, this time with a mixed-use complex that could stretch the resort area another block inland.
Still in the draft stage, the proposal calls for about 200 upscale apartments, retail shopping and outdoor cafes lined along a reworked and more pedestrian-friendly Laskin Road. Laskin Road becomes 31st Street near the Oceanfront.
The complex, with its own parking garage, would sit on roughly 3 acres bounded by Laskin Road, 32nd Street and Arctic and Pacific avenues. It could force the relocation of The Jewish Mother, The Heritage store and Waffles ’n’ Things, all Beach fixtures.
Bruce Thompson, chief executive officer of Gold Key/PHR Hotels & Resorts, estimated the development would cost nearly $60 million. To make it happen, Virginia Beach would kick in another $5 million to $7 million for streetscape improvements and utility work, said Steve Herbert, the Beach’s chief development officer.
No decisions on whether the city will pay – or how much – have been made, according to documents obtained through the Freedom of Information Act. The plan was shown to all council members for the first time in a closed-door session Tuesday.
Councilman John Uhrin said the public investment for streetscape improvements has long been part of the Beach’s vision for Laskin Road. He said spending that money in concert with a private development makes economic sense.
“The key to the resort area redeveloping itself is having folks living in the resort taking advantage of all the resort has to offer,” Uhrin said. “People who believe in that vision.”
The soon-to-be-released master plan for the Oceanfront will push the city to create pedestrian corridors at 19th and 31st streets, in part by attracting mixed-use development similar to what Thompson has proposed for Laskin Road.
“We think that it’ll be the Town Center of our resort area,” said Emily Morton, a spokeswoman for Gold Key. “That 31st Street, Laskin area, since the Hilton is kind of the anchor of that, we’re always excited to upgrade that area.”
Thompson doesn’t yet own the land, most notably home to The Jewish Mother, a restaurant and nightspot along Pacific Avenue, and The Heritage, a health food store. There also is a telephone utility station at the corner of 32nd and Arctic. The plan would work around that building, Herbert said.
City tax records show that all but the utility land is owned by the investors behind Sea Realty Corp. That company announced its own development plan in 2004, but scrapped the idea. Gordon Huey, a spokesman for the company , did not return calls.
Morton said Gold Key does not have options to buy the land. Scotty Miller, president of The Jewish Mother, said he understands Thompson has talked with Sea Realty.
Miller and others in the block would likely have to move to make room for Thompson’s project. The Jewish Mother has been at its current site for about 35 years, Miller said.
Mike Eason, a resort official for the city, said Beach leaders are interested in keeping the iconic nightclub at the Oceanfront. Eason and Herbert have brokered at least one meeting with a real estate agent to find The Jewish Mother a new home, according to internal city e-mails. A vacant restaurant at Laskin and Holly roads is one option.
“We’d love to stay there, but they haven’t talked to us,” Miller said. “I don’t see the development happening for at least five years. … We’re not going to commit out of that corner until they tell us we’ve got to go.”
If Thompson buys the land, he still has to get council approval for the project.
In a December letter to Herbert, Thompson outlined plans to build 196 apartments, 51,000 square feet of office space and 64,000 square feet of retail space, split between national and local merchants. The property also would include nearly 700 parking spaces.
The development could stretch the “31 Ocean” corridor, the slogan given to the 31st Street Hilton, the neighboring Neptune’s Park and a public garage and retail complex across Atlantic Avenue.
The cost of the public-private Hilton venture was $79 million, with the city putting in $31.5 million for the garage, park and land purchases.
“With the city’s cooperation,” Thompson wrote in his letter, “I’m confident that Gold Key/PHR can create another flagship development that will raise the bar for future endeavors throughout the resort area.”
Unlike the Hilton deal that drew a voter rebuke in 2000, the city’s tab in Thompson’s latest proposal includes no money to pay for parking. Public money instead would be used to move utility lines underground and redesign Laskin Road.
The road has five lanes at its intersection with Pacific Avenue. The plan would reduce that to three lanes and widen sidewalks on the north side of the road.
The idea fits with the city’s long-standing “Laskin Gateway” concept, which ultimately will push traffic to 30th and 32nd streets to encourage development along 31st Street.
“A pedestrian-friendly spot,” Uhrin said.
Thompson also has asked for a special tax district in the area. Herbert said the council could consider that in next year’s budget negotiations.
Herbert said there is enough money set aside in the fiscal 2009 budget to cover the project’s cost, but the funds could be spread over several years if Thompson’s project is delayed.
Gold Key’s current plan is a sliver of the broader version Thompson showed city officials last year. That proposal featured a series of mixed-use complexes on both sides of Laskin Road, running four blocks west of the Boardwalk.
It is unclear whether Thompson still plans to push that concept. Morton said more details on the corridor’s development could be released this summer.
“It’s really taking the resort strip from more of a lazy beach town to more of an upscale resort area,” Morton said. “Whenever you have city support or city partnerships going on, things obviously happen and get through faster.”
Herbert acknowledged that Thompson’s project is in its infancy, but he said the proposal shows the potential to extend the resort strip down Laskin Road.
“It is, for the first time, stretching across Pacific,” Herbert said. “Just as important, it is a fulfillment of the promise of the corridor. 31st Street is becoming what a few people thought it could be.”
Richard Quinn, (757) 222-5119, richard.quinn@pilotonline.com
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I have to agree with
I have to agree with Councilmember John Uhrin that we want the Beach District to be a great place to live as well as a great place to visit. Investment in public infrastructure is certainly needed as the Beach District is the oldest neighborhood in the city. The initial "Atlantic Avenue Beautification Project" and boardwalk revitalization created the most significant increase in private investment ever witnessed in this city as the old hotels on Atlantic were torn down and replaced by modern and safe, nationally branded hotels. Fact is, public investment in public infrastructure will create the same effect, and the tax revenue from more vertical development will more than pay for the public improvements. Frankly, I think it will help visitation as well because retail opportunity will improve to serve residents and visitors who want upscale retail will be drawn here for conventions and meetings. We are investing $20 M or so in the Beach District as well to compliment our previous private investments in the district each of which has increased by 15 fold the real estate tax revenue that the city receives.
richardr
I am curious why you say 80% of the citizens wouldn't utilize the proposed structures. Certainly I would doubt many locals use the hotels for room rentals but whenever I visit the Oceanfront (fairly regularly)Catch 31 restaurant is hopping. And have you visited Town Center? Reservations are needed at most of the restaurants and the locals sure seem to enjoy all that it offers. There are always folks walking around, day and night. Sandler Center is fabulous, convenient and parking is abundant. I have lived here 15 yrs. and am excited with the changes. Va. Beach has the potential to be a first rate resort but as we all know from our Econ. 101 class, it takes money to make money.
Great Concept Under Cautious Conditions
Any effort to upgrade the current situation in the vast wasteland between Atlantic, Pacific and Arctic Avenues should enhance the setting for everyone. However it would be prudent to exercise some amount of caution when dealing with the entities involved. It was quite fitting that the article promoting this development resided next to the article about thieves on the beach. To keep our common belongings in-place and safe, there should be no support from the CoVB other than the granting of permits and enhancement of nearby infrastructure, primarily for the movement of residents and visitors past and beyond the planned endeavor. This brown water beach town is flailing around in search of a new identity and evidently a congested resort area is a facet of the current focus. One lingering thought is that when Gold Key flounders, folds up its numerous tents in town, and departs this burg, what then? Who will be tagged with the tab for all the residue?
More Money Problems
I read a report (this morning) the city manager has been looking for an additional 5 million dollars due to increased fuel costs since the budget was assembled. Seems the approved 2008/2010 was built on a level of $100 a barrel for oil but it currently cost $135+ a barrel. Now the departments including police, fire and other public safety agencies have to cut one percent more out of the budgets. When will it end as we continue to project building public-private partnerships at 5-7 million a pop? How can this even be considered by council?
Where Is The Foot Bridge???
In the sketch I didn't see any pedestrian bridges over Laskin, Artic or Pacific Roads. Are they to come later at the citizens expense when someone complains they can't cross the streets in the alotted time? As they should do at Pembroke. They should extend the time to cross the boulevard at the cross walks, as that would save the taxpayers $3 million dollars. Another high priced project that 80 percent of the citizens won't go to spend their money.
WHOA!
First-V.B is out of money, there's a deficit since the economy is tanking. We've heard a plethora of reasons why money is scarce, albeit my propety taxes haven't changed for years...except increase.
Then comes some doofus idea to build a pedestrian bridge at the VB Blvd and Independence mall..Pembroke Mall?
Then it gets the green light to build this same stupid bridge vice extending the timing on the traffic light to permit pedestrians to cross the road without getting spanked by a vehicle.
Now we have this abhorrition of sanity and common sense.
So. Mistake me if I'm wrong-but is there a bus load of window lickers on the VB City Council?
Here's a Plan
Build highrise Hotel/Casinos and a theater district at the oceanfront. After the Navy gives up and leaves, turn NAS Oceana into Va. Beach International Airport. The Norfolk "choo-choo" can connect from Norfolk to VB Town Center, VB airport, and on to the oceanfront. I would prefer an elevated train, but that can come later. It would be nice to have Jewish Mother as one of the restaurants in the new project.
Make the developers pay for infrastructure. State taxes from the casinos will be the cash cow to pay for our roads, such as a parallel crossing at the HRBT.
Great Deal!
I have no objection to building this center as long as taxpayers are not contributing. If this is such a great deal then 5 million should be chumbp change for the developers and merchants. Council has constantly implied that development keeps our taxes low by attracting new revenue. I don't know about you but my taxes have doubled in the past few years.
Hopefully this will not come to vote before the November elections.
katet43483
I am in agreement with the sentiment of your comments. From here go anywhere!
warming?
I wonder what Al Gore has to say about all this. According to him it will all be under water in about 2 years.
Anyway, bring on the buildings. I would love to see this place look more like Miami beach rather than Myrtle beach. Build UP not out.
31st Street improvements
Look at how wonderful the 31st Street project looks now. Every tourist and conventioneer that comes to town goes there and spends $$$$'s. All thanks to Bruce Thompson's forsight. He's the guy that gets upscale things done in this city...not low class, cheap developments like other developers. It's time to say good-by to the Heritage, the Jewish Mother and certainly the Waffle N' Things as the introduction our guests receive as they come to our beach! Bruce will continue what he's already created: a beautiful, first class entry into Virginia Beach....every dime the city puts into a Thompson project they get back 10 fold....I'm for it!
Waiting for the big announcement!
I am willing to bet anyone that within the next 5 years, our state government will seriously consider legalizing casino and riverboat gaming to bring in more revenue. It's going to happen sooner or later and I think that these new developments at the oceanfront are in preparation of it!
MB will continue to enjoy it's reputation for being a great summer vacation spot but VB is looking at becoming a year round destination. I can easily see the oceanfront becoming a major destination spot when this happens. We can throw ole Pat Robinson a bone or two to get his approval. He is a businessman first and miracle maker second. I say offer Donald Trump an invitation to be the first investor in this region and perhaps he will throw up a few towers at the Towncenter and downtown Norfolk to boot. Sorry, I was having such grand visions in my head.
I still think that
the best thing to do is designate Atlantic Ave from Rudee Inlet to 21st Street as a party zone, and from 21st North as a family destination. Zone accordingly, schedule entertainment accordingly, position the cops accordingly. We could have the best of both worlds. With all the development around Laskin it wouldn't be a stretch to come up with a master plan to make this happen.
Note to council: Despite your best efforts, VB has not become the family-friendly resort that you wanted. Maybe cut your losses and compromise? Just a suggestion.
jmo
how about something the locals can afford?
Uhrin says, "The key to the resort area redeveloping itself is having folks living in the resort taking advantage of all the resort has to offer,” Uhrin said. “People who believe in that vision.”
How many people in our area can afford these type of apartments, condo's etc? Not many!
I'd love to see the number of condo's at our city center that are owned by local people and not retired folks from New York or New Jersey that consider this a cheap market.
Let's see some numbers and the demographics of who will rent these apartments and how much it will cost before you waste more of my tax money on stuffing the pockets of developers.
Another Development?
Tell me this is a joke right? Another hotel..in the flight path? What about the homes and apartments in and on Laskin and off Arctic? Rents go up? What happened to the freeze? What happened to the 5-8 million dollars deficit? Not a problem! VB has all these strip malls with high tech workers working at minimum wage to pay for the real estate tax and the road tax and on and on...Working class poor is all you will find in VB!
bigmike
I hear what you're saying and I don't mean I'd like to see the place so upscale that "average" folks stay away. However, the VB oceanfront is picturesque and with more art stores (less dollar stores), better hotels, restaurants and shopping, it would attract the sort of tourists who may stay and play and spend here and shove elsewhere those who want to drink, party and cause trouble.
Driven down Atlantic Avenue lately?
Virginia Beach is doing a great job of beautifying the oceanfront, and this project will be a welcome change to Laskin Road. Unfortunately, the quality of people vacationing there has not followed suit. Have you driven down Atlantic Avenue lately?
Great idea
I think this is a great development. That area of the beach needs a makeover. This will bring more residents to the beach. The roads/sidewalks are in dire need of repair with or without the new development. It never ceases to amaze me why residents of Virginia Beach are against redeveloping rundown areas to provide the city with new residents, business, and more destinations for people who live in HR.
Wake up! it's suppose to be a beach not williamsburg
Katet said "There are a lot of buildings that should be razed/relocated along with the three mentioned. Many of the tacky hotels and that creepy looking haunted house gizmo and ugly dollar store/taffy shop/tee-shirt stores are junk taking up primo real estate sites. Upscale the area if you really want to compete with Myrtle Beach and other resort communities. And please leave horse and pony rides off the beach" That's the very reason Myrtle Beach is better. They are not trying to be Colonial Williamsburg! Beach resorts are suppose to be bright, tee-shirts and taffy. Not stuffy suits and ties, MB is exactly what a beach should be friendly, cheerful, bright and fun. VAB is snubby, dumpy and dull.
Much Better
In my office I have two huge arial photos of Virginia Beach. One was done back in 1968 and the other shot a few years ago. It's nice to reminisce about the old days and old buildings but what a difference Bruce Thompson has made to Virginia Beach. You have to give the guy some credit for he has developed some of the nicest accomodations at the beach. With his help maybe we can graduate from the K-Mart of Eastern Beaches to a real resort town. Can you bring me another drink and a towel please.
read my lips
No new taxes! No new Taxpayer Projects. I need to make some necessary repairs on my house. Can I get the City to kick in for that? uh - no...
If taxes collected on Businesses and the general public are used for the public good, but special taxes collected from the Tourist Industry are funnelled back into the Tourist Industry, are they an Industry or a privileged business interest of the powers that be?
So let them support themselves.
I feel like I am in a losing game of Monopoly. I have a cute little green house, but after going around the block a few times, I will lose my home to the bank after the taxes go unnecessarily up & up & up, and a big red hotel will take over my space. That's not any individual's plan, but that was the lesson of the game, crush or be crushed, and this is what can happen in a town mimicking the Monopoly Game.
It doesn't have to be this way, but many may have to take their game piece - shoe, race car, iron & go, collect $200! If there is no Jewish Mother, Heritage Store, great local institutions in the neighborhood, just a bunch of crappy hotels, why be here any way.
Upscale The Oceanfront
There are a lot of buildings that should be razed/relocated along with the three mentioned. Many of the tacky hotels and that creepy looking haunted house gizmo and ugly dollar store/taffy shop/tee-shirt stores are junk taking up primo real estate sites. Upscale the area if you really want to compete with Myrtle Beach and other resort communities. And please leave horse and pony rides off the beach!
Obvious guys
Out of all of the ideas I have seen floated at the oceanfront this is a good one. I know many of the posters are stuck within their political agendas, but this is a solid improvement to this part of the beach. The buildings are old and failing. I am still laughing that Waffles and Things was called a "fixture." There is room a the beach for these business'. Especially The Jewish Mother.
This project is not needed
This project is not needed and it is a waste of tax payer money. no more public/private ventures. vb city council is so corrupt it is way past time to vote them all out of office. If that developer still wants to go ahead with his project make him pay for the street improvements.
Another Town Center?
“We think that it’ll be the Town Center of our resort area, said Emily Morton, a spokeswoman for Gold Key." God, I hope not!
Does anyone who works for the Town Council ever do a "Return on Investment" analysis on these projects....BEFORE they agree to them? I think not.
We are going into a serious recession within the next year. This isn't the time to saddle taxpayers with even more grandiose adventures.
birds of a feather flock together
and these two "developers" best pal is.......(hint)..his initials are JS
Why the hiring freeze?
If we have $5-7M to spend on crap like this, why does the city have a hiring freeze? We can't afford to replace a nurse and an accountant at the Juvenile Detention Center, but we can afford to enter into another development project with convicted felons? RENO! RENO! RENO!
If this project..
If this project gets rid of Nick's, the revolution will begin!!
Viva la Nick's!! Viva la revolucion!!!
Virginia Beach
Mo ugly, mo ugly, mo ugly.
Agreed - no private/public partnerships
VB City Council does NOT listen to the citizens that elected them unless that citizen has at least seven figures in their bank account(s). That much is clear. Stolen 31st part - you bet. The referendum and vote by ballot was clear, yet Council steamrolled that one in DIRECT opposition to the public! They should be ashamed of themselves, but we voters allow the monkeys to stay.
That Gold Key/PHR would be subsidized by VB is a given. Approval??? Are you kidding me? VB is Thompson's personal cookie jar, and WE ALL KNOW IT. That the bonehead voters keep allowing this is the crime.
Why can't VB let (make) Bruce and Ed do things like everyone else does (i.e. pay for it themselves - Bruce and Ed surely have the $$$!)? Get ready for another hand in your pocket folks; and to those that own the RE on that block, I think I smell eminent domain rolling into town.