The Virginian-Pilot
©
NORFOLK
The city has provided $325,000 to offset last year's operating shortfalls at the ailing Waterside.
The money isn't enough to cover the building's debt - it is about $25,000 short - but it will help close the gap that has been created by lower revenues at the city-owned entertainment complex, said John Kownack, the housing authority's assistant executive director for housing reinvention.
The funding comes as the City Council reviews the future of Waterside, which helped spark Norfolk's downtown revitalization when it was built 25 years ago.
Some council members have advocated tearing it down and redeveloping the prime piece of waterfront property. They plan to review possible scenarios later this year.
An affiliate of Norfolk's Redevelopment and Housing Authority owns the building, which houses bars, restaurants and a few small shops. In recent years, leases have not generated enough revenues to cover operating costs, so the city has provided roughly $850,000 a year to pay for utilities and construction debt.
Revenues dipped even further last year, and are expected to fall even more this year. Although Norfolk has budgeted a $1.05 million subsidy for the complex in the upcoming year, Kownack said Waterside still is projected to have a $290,000 operating deficit.
City leaders have argued that in return for their investment, the facility brings in more than $2 million a year in tax revenues.
City Manager Regina V.K. Williams, who authorized the $325,000 payment in a late June meeting with housing authority director Shurl Montgomery, did not return phone calls to her office Monday. Other city officials, including Assistant City managers Stanley A. Stein and Marcus Jones, did not return calls or could not say what part of the budget the money comes from.
City leaders also could not say why Norfolk didn't fund the housing authority's entire $350,000 request.
Board commissioner Robert Layton called the city's failure to fund the last bit of the shortfall "juvenile."
Kownack said the authority would cover the $25,000 in the short term, but the agency expects the city to pay it back.
Meghan Hoyer, (757) 446-2293, meghan.hoyer@pilotonline.com
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Hmm
That must mean that this mall is public property. Unless this area is a communist infiltrated commune within Virginia, I'm guessing the city owns this. Or they are breaking the law by funding private enterprise with your money. Oh well, it's not really your money. It's their's, as Obama and Putin would say.
RE: rent
"Even a Flea Market would probably be able to bring in enough money to keep it floating while profitting."
I like the idea, but Norfolk won't allow any more flea markets. They also won't allow anymore thrift stores. The brilliant Randy Wright once said that "Antique shops were nothing more than glorified thrift stores". That's the mentality we are dealing with in our City Council. The businesses doing great these days, are those thrift stores that our City doesn't want. Go figure!
Rent?
Lets say I live in Norfolk, and don't pay my rent, will the city pay it for me? I think that its only fair. If Waterside can't pay its rent, then kick out the slackers and put in some tenants that can. Even a Flea Market would probably be able to bring in enough money to keep it floating while profitting.
Bars only bring in so much business, and most of that is only on Friday and Saturday nights. Come on Norfolk, get your heads on straight and actually put something in there that'll really make money. (An Indoor paintball arena, museum, or even a City Sponsored Child Care Facility)
Read this three times very slowly
"Some council members have advocated tearing it down and redeveloping...."
When did real estate development become a role of government? Somebody answer that question. When? How? By whose vote? Should the local gov get into say.....what......landscaping?....selling ice cream?.....running restaraunts?.....selling used cars? Real estate development is, besides risky, best left to private business and hardly the role of government. As is clearly evidenced by the fact that Norfolk gov run real estate development consistently fails. Houses of prostitution do well in states where legal. Should council make it legal here and open a chain of them? Government should not compete with private business on our dime. Tear it down and sell it. Zone it properly and let somebody make an investment and return. It's called capitalism. The opposite of socialism Mr Winn.
How much does it cost
How much does it cost to keep Nauticus open and the Wisconsin sitting there and what kind of revenue do they bring in?
Waterside ideas
Barney: 'The Nauticus and the Wisconsin are next door why not some of their history or History of the waterfront be displayed througtout water side..With the worlds largest Naval operations Base and all the navel History around here come on..Keep the marina,open the tugboat museum,keep the Ferry,Keep the sailing ship,keep the small specialty stores..keep Hooters the Outback and Black fin for lunches and dinners." Excellent plan. Blend the local history and military history for exhibits throughout, maybe have an indoor dinner theater (for actual 'live theater' with performances from ALL of the theater groups in town once a week (like Little theater of Norfolk, The Generic theater, Hurrah Players, Wells, The Governor's School, etc.. Norfolk is supposed to be the 'culture' area of Hampton Roads. Lets stay in that vein. Bars do not promote famlies or culture.
Predictable
The most telling aspect of the entire story is found near the end: neither City mis-Manager Regina Williams, nor her two assistants, have been avaiable to explain this decision and did not return phone calls from the press to do so. Instead, they trotted out the "assistant executive director of housing reinvention" to do THEIR job. In other words.... Williams and gang know this is a bad decision, and none of them have the spine to defend their actions. Ridiculous. This city is being mismanaged into becoming another Portsmouth. Just merge 'em both -- who would notice?
Wow. Failing business gets help
It seems that if a CEO allows a business venture fail the taxpayers are there to help out even if they did not want to. Then the public will be overcharged for the rotten services to make up the loss in the executives pockets.
Waterside Management
Who is the manager of this sinking ship? Who hired that manager? In the public domain whomever is responsible for this fiasco would already be looking for work! Just another example of the poor daily management of the once great city of Norfolk. Clean house and put responsible managers there, even if it means full employment for CPA's and accountants! And this is just another reason Ms. Williams has got to go. Just how much money and how many mistakes need to be done to the citizenry of Norfolk before she is terminated. Really poor management, fire them all. Vote accordingly!
What a waste! All the more
What a waste! All the more reason why housing authorities should be dissolved, expunged, and eliminated.