PORTSMOUTH
City Councilman Charles B. Whitehurst released a statement Tuesday saying that he has disqualified himself from voting on or participating in state Sen. Louise Lucas' proposed hotel and conference center.
At the beginning of a work session in which City Council received an update on the project, City Clerk Debra White read the statement.
It pointed out that Whitehurst said, during his recent political campaign, that he had received a $10,000 campaign donation from Lucas and had invested $2,500 in the proposed conference center portion of the project.
"While I know with certainty that I would never break the trust I have earned over the many years of public service ... Virginian-Pilot editorials have attempted to paint a 'backroom deal' between Senator Lucas and myself," the statement said.
Whitehurst sought an opinion from the city attorney, according to the statement. Given the facts, he decided to disqualify himself from participating in any form, discussing, or ultimately casting a vote on the Lucas project, according to the statement.
Whitehurst is one of about 600 investors in the project, the majority of whom are black.
The proposed Victory Conference Center and Hotel came before City Council on Tuesday because members are scheduled to vote July 22 on whether to authorize the city's Economic Development Authority to issue up to $32 million in federal tax-exempt bonds to fund the project.
Because the bonds were issued as part of a federal Empowerment Zone designation that includes both Norfolk and Portsmouth, the Norfolk City Council would then also have to vote to approve the issuance of the tax-exempt bonds.
Commissioners from Portsmouth's Economic Development Authority are scheduled to vote July 15 on the authorization of the issuance of both the tax-exempt and taxable bonds Lucas is seeking for the project.
The presentation pointed out that while investors had sought $13 million in incentives from Portsmouth for the project in December, developers have "now resolved to make every effort" to develop the project using only bond financing and state and federal resources.
The authorization of the $32 million of tax-free bonds would use up the $130 million Norfolk and Portsmouth were allocated to be used by the end of 2009.
Lucas' attorney, William Nusbaum, said he was not aware of any other projects that might also be seeking that funding and said the bonds would not be available when the Empowerment Zone designation runs out.
Development consulatant Michael Glenn said the project's land purchase is being negotiated, there is a design agreement, feasibility studies have been completed, meetings with construction lenders have taken place, and potential agreements with three hotel chains have been discussed.
Jen McCaffery, (757) 446-2627, jen.mccaffery@pilotonline.com
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Open your Eyes
First, most of you that have commented to this article have no idea of the mechanics of how tax exempt and taxable bonds really work or what legal and financial obligation to the City takes on when it "ratifies" the use of bonds.
Second, I'm sure Ms. Lucas's donation to Mr. Whitehurst's campaing wasn't the first contribution made since they both a been involved in politics for more the 20 years have been equal supporters to each others campaigns....that's what happens all of the time. Not supporting his campaign would look even more suspicious....would one think?
Third, if one truly believes a $2,500 investment out of $2,000,000 total is going to influence anyone, just check and see how much influence you have with your shares of Microsoft or Dominion Resources.....none!!
Fourth, Ms. Lucas is a businesswoman and has created a business opportunity for herself and her family. Does anyone begrudge any of the other business owners and developers in Hampton Roads for taking more advantage of incentives offered by the Cities then this development is....there is definately a double standard operating here.
Fifth, everyone complaining about ethics and conflict of interest need
Attention unhappy citizens !!!!!
Enough is enough.
This is blatent corruption !!!!
Local media outlets will not say anything negative about this gross abuse of office.
Everyone who is angry about this waste of tax money for someone's personal gain, here is what we need to do.
Notify the National media outlets !!!!
This is not just local tax money being wasted this is tax money from the entire population of the United States of America.
If Americans found out that thier paychecks are helping fund a Politicians private hotel and conference center this transaction would stop. This needs national attention !!!!! WE NEED TO ACT !!!!
This not the time to be Apathetic !!! a few emails and calls can make a change in this situation. If the 15 people that wrote in, wrote to national outlets, maybe this would get the much needed attention.
Time for the people to speak and be heard !!!!!!!!
Enough is Enough, we won't stand for this anymore !!!!!
If this goes through One would say WTF I need to run for office:
I am a Norfolk resident if this goes through it means my city leaders need to be replaced...Some should be now but thats another issue...I said it befor THIS IS A CONFLICT OF INTREST. I would also like to no who the other 598 investers are and who(what city leaders from Portsmith and Norfolk) has to or gets to vote on this...I have a felling some names would be on both list...If any city leader has invested in this project and stands to profit off of it they used their position to earn money and that is a conflect of interest...Webster has a definition for the whole meaning CONFLICT OF INTEREST n A conflict between the public obligations and private interest of a public official.....:/ no wonder people think elected officials are crooks : a person who lives by dishonest means
WalMart and 7-11
I apologize, for the misunderstanding. My comment was not intended to insinuate that the residents of Portsmouth, VA were only capable of such jobs. My comment intentionally points out that the ultimate goal of this empowerment zone, and it's supposed payoff to the community, is JOBS and REVITALIZATION!!! Tell me, how many living wage jobs will this project produce for the citizens residing within the geographical boundary of the empowerment zone? ZERO Remember, this is a requirement of the Empowerment Zone funding. If there are hundreds of unfilled low wage jobs already available within the community, who reaps the benefit of this? Louise Lucas and her fat cat friends. Ask your city council for real revitalization efforts, not lip service that costs 32 million.
peterk41262, I have to disagree with you.
Portsmouth, the sewar of Hampton Roads? Looking on the map, it appears to be more of an armpit...
Trust or Conflict of Interest
Even if the Pilot had suggested that a backroom deal was put together between Sen Lucas or Councilmen Whitehurst what about conflict of interest. Bottom line the Pilot did not take 10,000 dollars for a campaign fund nor did they force Council Whitehurst to donate 2500.00 towards the investment. If Councilmen Whitehurst had the citizens of Portsmouth best interest at heart then he would have suggested recusing oneself before it came out on the campaign trail. Also let's not overlook Councilwomen Randall I believe or I could be wrong but I think that the pilot had pointed out that her husband had also donated so much money towards the investment as well (2500.00). Should she recuse herself as well.
Amazing
As a former citizen born and raised in Portsmouth, I certainly think this project is a bad idea and an opportunistic one for Ms. Lucas. However, to say that there are plenty of jobs like Wal-Mart and 7-11 for the citizens of Portsmouth is ridiculous. What makes anyone think that people who live in Portsmouth are only capable of these low paying jobs? And the body armour, gun factory comment? Grow up people. There's crime all over HR, including the promised land of VB where "law abiding" model citizens kill their spouses with hunting bows in their own garage. Or even idllyic Suffolk where fresh faced military men steal from their own neighbors who've been hit by a tornado. It's amazing the kinds of comments that come out of the mouths of supposedly intelligent people who actually read the newspaper to become informed citizens. Seems that practice has now become a way to judge everyone who doesn
WAKE UP P-TOWN COUNCIL
As a resident of Portsmouth, this whole situation is mind boggling. With the city having to pay yearly on the bill for the Renaissance Hotel, how can anyone think this project is not going to be a duplicate situation or even worse and cost the tas payers further dollars annually. They say to be successful, it is necessary to have location, location, location. Victory Crossing is not the location that this project will be successful with. I will not support council members who support this project. It us understood that Councilman Whitehurst was bought with contributions and he should pull out of voting. I think if you look further you will probably find connections to Louise Lucus from most all of the council members.
Question
Statement: "Whitehurst is one of about 600 investors in the project, the majority of whom are black."
What does this comment has to do with the situation, why is the color of the investors is mention. Are you going to mention the skin tone of investors for the VA Beach Hotel on the waterfront?
well said
rb-thompson. Private ventures should be bought & paid for by those trying to profit from them.
Who the heck would want to have a convention in Portsmouth???
Maybe a body armor or handgun company? Why not try to make jobs for the upper end of the tax bracket? I know a lot of well to do people and they not only have employees at their business, they have housekeepers, lawn care maintenance people and many other people who's livelihood is financed by them. AND, they buy stuff!!! Lots of stuff!!! Which makes more jobs for people.
It creates jobs, but at what expense?
I can support giving a tax break to attract private businesses, but I do not support using tax dollars to finance a private construction venture.
Great laugh on wavy this morning
Ms. Lucas, in a moment of hysterical irony stated, "I was brought up to believe you can only have what you can pay for."
Of course this means nothing to her as she was talking about our transportation woes...
Lucas Lodge
Portsmouth will be in debt for years in order to create 50-75 maids, janitors, dishwashers, and groundskeepers. Huh? You mean they are not going to create living wage jobs? Well ... yes they are. Perhaps the Empowerment Zone Job Training Center could provide suitable program "graduates" for Manager, Asst Manager, Convention Marketing, HVAC Engineer?
Do we really think Portsmouth needs these types of jobs? WalMart, McDonalds, and every 7-11 in the city has help wanted signs. Why are these jobs unfilled? There is no way this can be done in the name of jobs for those who need to be empowered. Bringing business to town for Conventions? HA! I don't even like going to Portsmouth for 2 hours to watch a concert, much less a 4 day convention. THEY WILL NOT COME!!!!
Too late to save face bud...
The only empowerment that will happen with this deal will be to Lucas's bank account. Who are you trying to kid really?
THERE IS STILL SOME STINKING GOING ON HERE!!!!!!!
I will give Charles Whitehurst kudos here. For whatever reason, he has done the right thing. NOW, it is time for Portsmouth Councilwoman Marlene Randall, who is an investor in this project, to recuse herself also. Isn't it sad though that Lucas's attorney states that if Lucas doesnt get the empowerment bonds, the funding will expire (and that is supposed to be a bad thing????) I as a citizen would rather see funding not improperly used on a project that will obviously fail. When the bonds are defaulted on, who do you think picks up the tab? THE TAXPAYERS OF PORTSMOUTH...of VIRGINIA....of THE UNITED STATES!!!!! Also, Why hasnt a list of investors been made public? How many more Portsmouth City officials would be on that list of investors? Who else has received campaign contributions from LOUISE LUCAS?