More questions arise on Lucas proposal

State Sen. Louise Lucas has put the Portsmouth City Council - and, now, the Norfolk City Council - in an awkward position with her elastic appeal for help financing a hotel and conference center.

The quest began when Lucas asked Portsmouth officials for $13.5 million in cash and tax breaks for a $65 million complex at Victory Village. The request was troubling in several respects, beginning with the propriety of a state lawmaker - particularly one who heads the Senate's local government committee, as Lucas does - asking city officials for tax dollars to assist in her private venture.

The proposal was also questionable because it would compete against a similar, city-subsidized hotel and conference center on the waterfront. That project opened seven years ago but is still not self-supporting.

In recent weeks, Lucas revised her plan. She is now seeking $32 million in federal tax-exempt "empowerment zone" bonds and $32 million in taxable bonds. In addition, she is seeking $6 million in bonds from the Virginia Department of Housing and Community Development.

Last week, Portsmouth's Economic Development Authority endorsed her request in what appeared to be two unanimous voice votes. In yet another odd twist, the plan now has been rescheduled for a roll-call vote.

The empowerment zone bonds, aimed to promote jobs in struggling neighborhoods, would drain what's left of $130 million worth of bonds allocated to Portsmouth and Norfolk by federal officials in 1999. In order for Lucas to gain access to that funding, the city councils in Portsmouth and Norfolk would have to approve. They should offer a flat "no."

Lucas' shift to bonds as a source of financing is certainly preferable to direct financial aid from Portsmouth. But - in a recent exchange of e-mails between Lucas attorney William Nusbaum and City Attorney Tim Oksman - it appears cash and tax breaks haven't been ruled out.

In a message to Oksman dated May 20, Nusbaum wrote, "At this point, Sen. Lucas is resolved to try to do these deals WITHOUT public sector support, other than public approval of these conduit bond financings through the EDA, and her team will be sharpening their collective pencils to try to make the deals financeable without that public sector support."

Nusbaum then added, in parentheses: "Please note that the preceding sentence has been very carefully worded; it is not a final commitment forswearing the possibility of public sector support being requested."

It's not unusual for the details of projects of this size and complexity to undergo many revisions over time. But the Victory Village hotel and conference center is too vague on important details and filled with too many uncertainties - including the potential to damage a similar, city-subsidized project - to warrant the support of public officials.

Beyond those concerns, however, there is another major obstacle to this project: Is it appropriate for a state lawmaker to seek financial assistance - whether through tax breaks or tax-exempt bonds - for a private business venture?

It's not a question with an elastic answer.