PORTSMOUTH
State Sen. Louise Lucas moved one step closer Tuesday to securing millions of dollars to help finance a proposed hotel and conference center at Victory Village business p ark.
The city's economic development authority unanimously approved issuing up to $70 million in tax-free and taxable bonds, which would provide Lucas with low-cost financing.
Now, the Portsmouth and Norfolk city councils must vote. Portsmouth's City Council is expected to discuss the issue at its next meeting Tuesday.
Under the current proposal, Portsmouth and Norfolk would not take responsibly for the project's debt. BB&T Capital Markets is the proposed underwriter of the bonds, according to Lucas' application.
Lucas, a Portsmouth Democrat, wants to use up to $32 million of tax-exempt enterprise zone bonds and another $32 million in taxable bonds. She would also like to secure another $6 million in bonds for construction costs from the Virginia Department of Housing and Community Development.
The Victory Conference Center and Victory Conference Center Hotel would compete against other local hotel and conference centers - including the Renaissance Portsmouth Hotel and Waterfront Conference Center, Portsmouth's economic development director Steven Lynch said.
The city is paying $2.5 million per year in debt service on that hotel, which opened in 2001.
Lucas wants to begin construction in November and finish the development by April 30, 2010. The project would include a 200- to 250-room hotel and 50,000-square-foot conference center with a 16,000-square-foot ballroom.
It would be built on about seven acres adjacent to a new Tidewater Community College campus that is under construction. Portsmouth officials plan to develop Victory Village business park off Interstate 264 at Victory Boulevard as a city center.
As of December, Lucas had collected $1.8 million from about 600 investors, the majority of whom are black. Lucas has described the project as the city's first development led and financed by African Americans.
The allocation of the $32 million in tax-free bonds would exhaust the $130 million in enterprise zone bonds that the U.S. Department of Housing and Urban Development awarded to Norfolk and Portsmouth in 1999.
The bonds were to be used within ten years to stimulate economic growth and create jobs in both cities.
In 2001, Portsmouth awarded $8 million in enterprise zone bonds to the Ocean Marine Yacht Center. Last month, the council authorized the issuance of $12 million in the bonds to help finance the construction of a new Holiday Inn at the Crawford Connector.
As part of receiving the tax-free enterprise zone bonds, Lucas would be required to hire at least 35 percent of her employees from within Portsmouth and Norfolk's designated empowerment zone.
According to paperwork that Lucas submitted to the city, the hotel would employ an estimated 23 full-time employees at an average salary of $29,739. The conference center would employ 13 full-time employees, at an average salary of $45,235.
The hotel would generate $612,000 in real and personal property taxes per year, while the conference center would generate $300,000, according to the documents. The hotel and conference center have a combined estimated taxable value of $60.9 million, according to Lucas' documents.
During Tuesday's public hearing, commission chairwoman Ann Kirk-Mendes said the amount of bonds that Lucas has requested would finance the total cost of her project.
Lynch said the project has multiple potential funding sources, including the bonds, other tax credits, equity from investors, and, potentially, conventional debt.
"It's not 100 percent financing," Lynch said in a phone interview this week. "They will be bringing other financing to the table."
Howard Gordon, an attorney for Lucas, said the hotel would operate as a franchise of a well-known chain. A consultant has met with representatives of three hotel chains, he said. It would be premature to name them, Gordon told commissioners.
Lucas, who attended the meeting, said the Victory Village Hotel and Conference Center would host major events, such as graduation, for the new TCC campus.
TCC spokeswoman Laurie White said Tuesday that the college does not have an agreement with the proposed hotel and conference center.
Jen McCaffery, (757) 446-2627, jen.mccaffery@pilotonline.com
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Sen. Lucas' Cash Cow
True, why would a State Senator be so concerned with a local government issue as another hotel and convention center in P-Town? Why should the City of Norfolk be involved as well? Maybe because Portsmouth doesn't have enough black businessmen willing to invest in this venture or it's location?! Or could it be that not enough business owners black or white are willing to invest in such a controversial plan?! I guess Ms. Lucas and our own Portsmouth City Council forgot where bond money actually comes from-their constituants-taxpayers. Have they forgotten that the economy is going down the tubes with higher gas prices, higher grocery bills, and no higher waged? Cities are not in the business of building hotels and convention centers. They are in the business of maintaining emergency services, court services, water and drainage, etc.; things we are not able to get in our current facilitie
For everyone who voted
For everyone who voted Lucas's pets back onto city council this is exactly what you deserve. Unbelievable...
Some of the questions
Some of the questions addressed could and should be asked to the Senator herself. As a public official, I'm sure that she would be happy to meet with anyone to answer questions and clear up any misunderstandings. Everyone has a right to their opinions, however, let the opinions be based on factual information from BOTH sides and not just a VA Pilot article.
Go look
Go look at the picture. She looks like a villian. Doesn't she look like she is just itching to make a puppy skin coat? Thank goodness for the "dalmation plantation."
Unreal!!
Portsmouth can barely support the current convention center and Ntelos Amphitheater and we're going to commit millions to another similar project! Say after me...STUPID, if council approves... REAL STUPID!! Email call, or write council your objections now! We do not need more financial burdens! Just Unbelievable!!!
Bug the council of Norfolk and Poor town.
Send them an e-mail every day asking them to vote the bonds down. Call every day. Drive them crazy. Also start on Gov. Kaine. Call, e-mail and ask how a Senator can steal money from those she represents and the federal government. Don't only complain on this forum, DO SOMETHING to show your displeasure and outrage!
Wow the race card
History lesson short and sweet, “your tribal leaders and rival tribal leaders sold you into slavery”. History does repeat itself. You have given into the slavery mode again, you voted for your leader now she is selling you off for personal gain and is not a thing you can do about it. A few folks with money are taking you for all your worth. It hurts me that most people here in P-Town are just to ignorant to realize this. I would love to see and election done without race involved. It may happen now. Let her build her hotel and watch your taxes go up and your friends and family leave P-Town for cheaper areas to live. I say impeach her and her crew. Folks that have invested stand to make a lot of money off those whom did not. I could not invest because it an all black thing open only to blacks.
Uhoh.. another dinosaur project in the making?
After reading this article, the red flags in my mind went up. First off, what is a State Senator doing in collecting investors for a project like this? Secondly, is there a conflict of interest (monetary, etc) on her behalf? Third, to finance another project like this under the umbrella of a housing authority brought another notorious housing project to mind: Cabrini Green in Chicago.
I have the strangest feeling in which this project will go well over budget and may not be finished on time or according to its original plans.
Just my opinions.
Part 2
Submitted by Bgibso94 on Tue, 06/17/2008 at 7:01 pm.
"You people....and YES I SAID "YOU PEOPLE", meaning the white citizens of the Hampton Roads community need to really wake up and get a life. Whites have never shown interest in what blacks do until it takes money out of their pocket."
Taking money out of my pocket tends to get my attention regardless of color of the thief.
"All whites do is complain. Complain. Complain. Complain."
All of us?
"If you're that disgusted with the way things are done here, have your white friends and family move out. Leave Portsmouth to us."
Nice work. Thanks for the insight into the 'black psyche.' Please tell me there is someone out there who is not white that is fuming about these comments.
Some back and forth-Them in " Part 1
FROM STEVENC
"This will "spur development" in Portsmouth."
No it won't. It will be a third tier venue. Too much competition. Better choices are minutes away. Location, location, location.
"EVEN better; she's a democrat!!!"
So what? If she were a St. Bernard I would still find it to be dubious.
"Where is the support Ira? This is tax use at its best; is it not?
Why me? I am a fiscal conservative who votes for both parties. My only liberal slants are the environment and personal rights. I support McCain.
"If not is he.....a......R-A-C-I-S-T?"
Uh oh, quite the accusation. It does seem we found the racist this morning though.
"Are you white folks SERIOUS?"
Yes. You should be offended by this proposition as well. It's crooked. A public servant is manipulating the systen to seek profit. Regardless of where you live it is being taken from federal funds.
Vote for me and I will get rid of all the white people for you. Please see Bigdaddy for details.
Richmond VA tried this already
Richmond va lost alot of money trying to put hotels and other attractions in the ghetto, known as the 6th street market place. People got tired of being asked for money, being robbed and eventually deterioted. This place will be no different, except that Mrs. Lucas plans to benefit financially.
HAY NORFOLK DEVELOPERS
HUD HAS MONEY HUD HAS MONEY..A resent news artical said a developer was going to re develop the area bounded by Tidewater drive and City Hall Ave at the base of the interstate THIS DEVELOPMENT HAD LOW COST HOUSEING IN IT..It also had some retail.why cant these delopers get some of that money just setting around.Hell when you look at it why cant any of the developers in down town Norfolk Chesapeake or Va Beach get any of this HUD money..all these developers might have some argument for this money just sitting around for ten years.This money should be spent in a way that it will inhance the lives of more people than just a HOTEL...HOUSEING URBAN DEVELOPMENT..NOT..HOTEL AND TOURISM...THIS AREA NEEDS MORE WORKING CLASS HOMES.TWO OR THREE HUNDRED THOUSAND DOLLAR HOMES are toooo much for the working class person to afford..If any thing can be learned from this houseing Financing problem thats effecting the counrty is to not spend over your means..THIS HOTEL IS NOTHING BUT A CASH COW..WHEN THE MONEY RUNS OUT DETERIORATION WILL START
Lastly!
I will never spend another dollar in Portsmouth again!
Sharp game "madame senator".....very sharp game indeed!!!
Oh Well!!
"Lucas would be required to hire at least 35 percent of her employees from Portsmouth and Norfolk's designated empowerment zone"
"Hotel...23 full-time employees at an average salary of $29,739"
"Conference center would employ 13 full-time employees, at an average salary of $45,235".
"Hotel would generate $612,000 in real and personal property taxes"
"Conference center would generate $300,000"
"Lucas, who attended the meeting, said the Victory Village Hotel and Conference Center would host major events, such as graduation, for the new TCC campus".
"TCC spokeswoman Laurie White said Tuesday that the college does not have an agreement with the proposed hotel and conference center".
Looks like the TCC spokeswoman hasn't recieved her "visit" from "her Royal Highness"! Sorry, the numbers do not add up. She took money earmarked for "family housing" and used her political and business "back room" dealings and put Portsmouth on the threshold of being the penultimate "urban cesspool"! A total of 36 people getting new jobs, plus the ancillary contracts which I'm sure will have some money finding its way back to "Ms. Lucas" vs. the people of Portsmouth being saddled with this project an
Yes I am white:
Yes BGIBSO94 I am white and why you are putting all the white folks in the same boat. I fo one do not care if the hotel is or is not built. I also do not care if the city does sell bonds to help pay for this. I do care when you and ALL OTHERS lump one race toghter.
Didn't take long
It didn't take long for the old dependable racism crutch to appear.
Listen fellow citizen, I don't think everyone is up in arms because this project was proposed and developed by a black woman. We are disgusted that this project even grew legs due to Portsmouth's financial situation, weak infrastructure, where the funding is coming from, and frankly because this deal stinks highly of blatant political abuse. And what nauseates me equally is how easily one can cry racism towards the white community and get away with it. Cry wolf some more.
When you can argue without relying on the racism crutch then maybe then you will start to be taken seriously. 51% what in the world is that supposed to mean. Does it mean that 51% thinks this is a great benefit to PTown? It is this kind of mentality that makes many, many thinking people doubt the soundness of your reasoning, life choices, and attitude.
Cry wolf some more.
Keep crying wolf and you will never be taken seriously.
??????????
How does everything turn racial???
It's a shame people are that paranoid and think everything is
one big conspiracy.
Stick to the issue at hand.
Deeply Interesed!
Ah, Donkey I take great interest when I read about another shooting, break in, car jack, drug deal concerning blacks. Another "Use it or Loose It" deal for Fed money. The article says it will improve this corridor, help with homelessnes etc. Ok lets recap, I'm homeless because: A - I don't have money to pay a mortgage or rent. B - I'm a crack head. C - I can't pass a credit check or D - All of the Above. Why does the race card always have to be pulled. 51% black, so that means we should let you spend Fed money anyway you want. "YOU PEOPLE" attitude sounds like the person I want as a neighbor. Use the money for affordable housing not perks and pocket money for the select few. Enough of the black verse white finger pointing. Are you part of the problem or part of the solution?
She is successful
She successfully has all HER people behind her as she takes their money and profits from it..
And everybody expected something different?
We are talking about P-town here. I mean, as a FORMER resident of the City where I once lived, graduated High School, bought my first house.....then left as soon as my first child was about ready to start school. I lived directly behind an Elementary School....I was working on my house one day, off from work,the bell rang for recess or whatever and when the doors flew open, I knew then and there I couldn't do that to my son. Less than 1 year later I had moved. Portsmouth is at least 51% black, 83% of that 51% majority is at least 3rd, 4th, or 5th generation welfare recipients. Louise Lucas, former employee of Norfolk Naval Shipyard turned Senator? I cannot believe this is legal...Our tax dollars...we need roads here in Hampton Roads so the state is going to raise taxes and put up tolls. P-town, a City that cannot support itself is building a 250 Million Dollar project funded by the taxpayer, tax exempt bonds. What is wrong with this picture? Oh Yeah....it's in Portsmouth.