PORTSMOUTH
State Sen. Louise Lucas would now like to build a hotel and conference center at Victory Village without any city money.
“A t this point, Sen. Lucas is resolved to try and do these deals without public sector support” other than asking Portsmouth to authorize federal tax-exempt bonds, her attorney, William Nusbaum, wrote in an e-mail dated May 20 to Portsmouth City Attorney Tim Oksman.
Oksman had posed questions about the proposed project to Nusbaum on behalf of the City Council. He then forwarded Nusbaum’s responses to council members. Copies of the e-mails were provided to The Virginian-Pilot.
A week later, however, Nusbaum wrote Oksman that “Sen. Lucas’ desire to avoid public sector assistance for the conference center & hotel project is aspirational on her part.”
“Some assistance may prove necessary for what is a quasi-public amenity to be made financially feasible,” he added.
Nusbaum confirmed sending the e-mails and declined further comment.
In December, Lucas proposed building a $65 million conference center and hotel at the new Victory Village business park off Interstate 264 at Victory Boulevard.
The business park will feature office and retail space. Construction is underway nearby on a new 35-acre campus for Tidewater Community College. That project is scheduled to be completed by January 2010.
Lucas envisions the hotel and conference center as Portsmouth’s first development led and funded by black people . As of December, more than 600 African Americans had invested $1.8 million in the project, Lucas said.
The hotel would be 12 to 15 stories tall and feature from 200 to 250 rooms, according to her proposal. The conference center would be from 50,000 to 55,000 square feet, including a ballroom and 10 meeting rooms, according to her proposal.
The project would bring $70.6 million in tax revenue into the city, according to her proposal.
In December, Lucas had asked the city for $13.5 million in cash and tax breaks from Portsmouth for the project. Requests by developers for such assistance is not unusual for public-private projects.
Lucas and her attorneys are expected to appear before the council later this month to ask for authorization of a maximum of $30 million in federal tax-exempt bonds for the hotel and $20 million for the conference center.
If the city authorizes those bonds, it would use up the $32 million remainder of Portsmouth’s share of the $130 million in empowerment zone bonds that Norfolk and Portsmouth were issued by the federal government in 1999. The time limit to allocate those bonds is Dec. 31, 2009, when Portsmouth and Norfolk’s empowerment zone designation ends.
Portsmouth and Norfolk have already allocated $98 million of the maximum of $130 million in tax exempt empowerment zone bonds.
The empowerment program was designed to encourage people to open businesses and hire employees in economically challenged areas.
Empowerment zone money has already been spent in Portsmouth at the Ocean Marine Yacht Center.
Last month, the Portsmouth council approved giving up to $12 million in empowerment zone bonds to Olde Towne Hospitality LLC to build a Holiday Inn hotel at the Crawford Connector.
Councilman Bill Moody Jr. said he wants to know more about Lucas’ proposal and that it should be considered like any other city project.
He said some residents have said that city leaders should not finance another public-private partnership of that scope at a time when Portsmouth has a list of needs, such as addressing the circuit courthouse.
Jen McCaffery, (757) 446-2627, jen.mccaffery@pilotonline.com
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Lucasmania
Boy does she love to shine! Portsmouth has no need to support personal dreams for anyone even Sen. Lucas who has done nothing to promote the City of Portsmouth - The GREAT Renaissance is not even showing a profit so why take on another hit on our budget - If people need a place to rest or conference and we don't already have it - then go across the water - We need to wake up Portsmouth Citizens and stop electing this dead weight - that we help to elect - How about pouring some of these funds into our Legal system - court buildings with little or not security- out of date - police headquarters so that we are not located all over the city in rental property - police personnel underpaid -why try to keep bringing people into our city and then not having adequate protection for them - We will never be a Norfolk or Virginia Beach - so hang it up and start thinking more logical instead of constantly promoting each other and scratching all of the backs of your people (red,yellow,black and white)
Black Project...
Hmmm... Why have another Conference Center in Hampton Roads? You have the new convention center in Virginia Beach and Hampton. You have the one in Chesapeake.
Who wants to come into Portsmouth where you have to walk over all the crack heads that they are dumping into Churchland and ruining the neighborhood. It's amazing the number of shotguns you hear at night now that Fairwood homes and Jeffery Wilson have been shut down.
If you want to see how a black owned conference center will run just look at the City Government. It's been blacked owned and managed for years and we have the highest tax rates in Hampton Roads.
Maybe it's time for Portsmouth to stop trying to be like Norfolk.
Oh I'm sorry. The electorate elected the same idiots back on the council again.
It's sad that Suffolk city council makes Portsmouth look intelligent...
The City is still paying/ this is not a black funded project
If the City is writing bonds for Ms. Lucas,
then the city is responsible for paying all parties involved should Ms. Lucas's private sponsers fail to pay for the work.
A bond acts like a mortgage for the project.
How on earth can she say this is a Black funded and owned project if she plans on tapping the federal gov't. The City shouldn't be a private bank to sponsor individual pet projects.
There is no magical goverment money just sitting around, it comes from all people living in Virginia regardless of thier color.
Projects shouldn't be funded soley on thier Political Correctness .
This project does not help with crime, education, or infrastructure in the City of Portsmouth. I'd like to see how they manipulated figures to say this will bring in tax revenue.
If a majority of the money is coming from the federal goverment then she has no right to claim this as a black funded enterprise.
Nor should public projects be designed to benifit one particular race and excluded other races.
That is unconstitutional.
Another reason to move out of Portsmouth
ALREADY GREASING THE SKIDS
Sen. Lucas has already laid the foundation for this project. At the last Portsmouth City Council meeting she made a Cecil B DeMille spectical in giving the City Manager a State Proclamation concerning his mother. Citizens of Portsmouth wake up. What has Lucas ever done for Portsmouth. In the next election get rid of her and Melvin also. Portsmouth can and needs to do better when it comes to our elected represenatives.
Best Use
Does Portsmouth need another conference center? No. Does Portsmouth need more business opportunities for minorities - Yes but not this way. This seems like a scam and it doesn't seem to be in Portsmouth's best interests. The idea for the Victory area is suppose to be upscale (see article on Newport in today's paper) and with the new TCC project underway Portsmouth needs to take a long hard look at this project and see what it really would bring to the city and at what cost. If Senator Lucas truly has the people of Portsmouth's best interests at heart then she should step down from her elected seat and lead this project without any political power to bear on the city or better just walk away from the project - neither will happen of course. While I'm at it why not relocate the court house to the old Craddock High School Site on George Washington?
All in this for herself!
Please stop it Senator Lucus. You have employee's working for you now complaining about how being over work and low PAY. Why would you even think about considering building a Hotel, when children are in the need for a new school, and funds for a new court-room to keep our city safe. I guess this is away for you and your family to keep robbing the poor folks of this City. Why aren't you thinking about doing something for the YOUTH! I have the answer,for you, you would get a pay back, right! No, money will be in it for you! That's why you are taking care of the mentally and disable people because they are the high dollar folks. One thing I must commend you on, you surrounded yourself around people who think just like you, MONEY!! City Council it's time for you all to either wake up or be replace by some younger people with brighter ideas for a new day! Oh, Obama is right, it's time for change and we need to start right here in the City of Portsmouth. So Senator Lucus, the answer to your question for those who are tax-payers of this city, is NO!!! We will not support this project for the LUCUS family to become richer than already are!
I would not promote this project
In live in Portsmouth and literally 10 mins from this proposed area, with that being stated I would never support this nor would I even promote this plan to the city. I have met Sen. Lucas on a couple occasions; she is a selfish individual! What really turns my blood to boil is that fact she is upfront with her agenda, "Black folk starting black businesses." It is ok to fund projects, it is ok to propose business ideals that will benefit the community, it is ok to be black or whatever color you may be but to be blunt about it shows that this is above a particular person trying to promote her own legacy. I am all about good leadership no matter what the color of the person is or their intelligence level, but I am in complete defiance by folks who promote an agenda for the sake of color.
Well, here we go!
I guess ol' Louise Lucas is not going to give up. There is no need for a hotel/conference center of this size and magnitude. The Renaissance is never at full capacity so I can't understand why she thinks she can pack the house with one of her own. It would be financially irresponsible of city council to give up these funds but that would NOT surprise me. I think the Portsmouth Circuit judges should file a lawsuit against the City of Portsmouth immediately to get the new courthouse started. What is more important Ms. Lucas- the safety of the citizens and judges that keep you in office or your bank account balance? Oh never mind, we already know the answer to that one. I encourage everyone that reads this article to call your ciy council person immediately and voice opposition to this drain of our empowerment bonds!
Do me a favor....I am not
Do me a favor....I am not black so make sure my tax money doesn't go towards that project. I do not support it!
Complete transparency, Senator Lucas
Ever since city officials in Portsmouth, Norfolk & Virginia Beach were offered the opportunity to purchase shares in Cox Cable before they were to vote on Cox being the sole cable provider in those cities, personal benefit by public officials has raised serious concerns in my mind. Senator Lucas should provide a complete list of investors, including the amounts these people have invested, if they expect to receive public assistance and especially if the investment in this project is not available to all citizens.