Opportunity lurks in real estate dip

IN 1994, two years after a recession, Virginia Beach bought 1,200 acres known as Lake Ridge. Though the property had been valued at $37,000 an acre in 1992, the city paid only $7,915 an acre - a steal.

Not everyone thought so at the time. Then-Councilman John Moss, now running for mayor, opposed the $9.5 million purchase, saying the money should be used to avoid a tax increase.

Then-Councilman Will Sessoms, also now running for mayor, said the council would "really regret it down the road" if it didn't buy the land when it had the chance. Sessoms was right. Acquiring the property that is Princess Anne Commons was part of a smart strategy that ultimately set aside some 6,000 acres for parks and open space.

Apart from the contrast in two mayoral candidates, there's a bigger issue here as the Beach considers a new open space plan. It's worth revisiting the lessons from the purchase of Lake Ridge, where a developer's dream gone bust has become not just an outdoor sports and entertainment mecca, but also a medical and education center attracting jobs and investment. The city recently sold a piece of that land for $125,000 an acre, more than 15 times what it paid 14 years ago. A partnership of the region's Major League Baseball stars is using it for a sports training facility.

As Virginia Beach decides its priorities for land purchases in the next two decades, it finds itself in a similar situation to the early 1990s: Tourism's hurting and real estate has nose-dived. But just as in the early '90s, every real estate downturn brings with it opportunities. For example, high-end condo projects proposed for magnificent waterfront properties on either side of the Lesner Bridge sit idle, their prospects dimming each day as the real estate slide accelerates.

The city couldn't touch these properties a few years ago, but now they're getting within reach. The bad news is that the open space fund has been drawn to just $7.6 million. And the new proposal to replenish it is unequal to the opportunity and shortsighted.

The final draft of the 2008 Outdoors Plan has the city setting aside $500,000 a year for 18 years, bringing the fund to $17 million. But Virginia Beach plans to fritter it away on small tracts that will not make much difference.

Councilwoman Barbara Henley told the Pilot's Deirdre Fernandes that the open space program has helped the city protect land important to Virginia Beach's heritage, as well as save thousands of acres that are environmentally sensitive, such as Stumpy Lake.

The city's parks and recreational areas have helped Virginia Beach earn accolades as one of the best big cities in America, one of the 10 best for enjoying the outdoors and one of the greenest places to retire. The land-buying program has been wildly successful.

The council ought to find the means to replenish the open space fund in a way that permits it to continue paying big dividends to quality of life at the Beach.