PORTSMOUTH
State Sen. Louise Lucas plans to come back to the City Council and ask members again for authorization to use up to $50 million in bonds to build a hotel and conference center at Victory Village.
During an interview with Joel Rubin on Sunday on his WVEC show "On The Record," Lucas, her attorney and a development consultant discussed why the City Council should approve the use of the bonds, the viability of the project and Mayor James Holley's comment that Portsmouth needs a "black" hotel.
"Six hundred people have told Sen. Lucas that they want to be part of Victory Conference Center," Lucas' attorney, William Nusbaum, said. "And there can be no better example of true community capitalism than what this project is."
The federal empowerment zone program was supposed to generate economic development in some of Norfolk's and Portsmouth's most-troubled neighborhoods.
Authorization of the bonds would allow the project's approximately 600 investors to secure financing at a lower interest rate, Lucas said.
"Every dollar will be paid back," Lucas said. "It is not an entitlement. It's an empowerment."
In July, the City Council voted 3-2 against authorizing the bonds for the hotel and conference center.
Council members who voted against the project said they had not been assured by the developers that they would not return to the city for financing and questioned the potential impact on the city-subsidized Renaissance Portsmouth Hotel and Waterfront Conference Center.
Two council members, Charles Whitehurst Sr. and Marlene Randall, did not participate in the votes.
Whitehurst, who received a $10,000 donation from Lucas during his recent City Council bid, has invested $2,500 in the conference center. Randall's husband, Vernon, has contributed $2,000.
During the show, Nusbaum described the idea of the city being on the hook for financing as a red herring.
He said the projects will pay back the bonds with the revenue they generate. If they don't, they will suffer the fate of other private businesses that are not successful.
"The city's not responsible for bailing out businesses that fail. And this one is no exception," Lucas said.
The $60 million project has been scaled back slightly from 250 rooms to 200. But developers still plan a 50,000-square-foot conference center and 16,000-square-foot ballroom.
Development consultant Michael Glenn said the Victory Village area is a great location for the hotel and conference center and will become a destination spot.
He said it is close to Interstate 264, a Tidewater Community College campus under construction and the planned 1,500-home New Port residential development.
"If you look at all the town centers throughout Hampton Roads, they're all very successful," Glenn said.
Project investors have generated $1.8 million to $2 million, Nusbaum said. The majority are black. Nusbaum said he expects another couple of million dollars to come in.
Developers plan to use a combination of the bonds and New Markets tax credits. Such federal income tax credits are available to investors and businesses in designated communities.
"Obviously, once we sharpen the pencils and fine-tune things, if the numbers don't work, then the bonds don't sell... we give the investors their money back and there's no project," Nusbaum said.
He disputed the argument that Whitehurst and Randall have any conflict of interest in voting for the project.
Nusbaum said that under state law, they would have a conflict if either had more than a 3 percent interest in the project or would earn more than $10,000 in revenue from the project per year.
Asked by Rubin about the perception of conflict, Lucas replied: "Members of City Council are elected to do the business of the city - to do what's in the best interest of the city.
"If perception is all it takes to make them not vote on the issue, how will they ever get anything done?"
Lucas said she had not returned Whitehurst's and Randall's investments because neither has asked and the two still support the project.
The Democratic senator from Portsmouth, who owns a successful chain of group homes for adults and youth, also addressed comments Holley made during the July council meeting that ignited what Rubin described as a firestorm.
Holley, who voted in favor of authorizing the bonds, described the Renaissance as a "white hotel" and said he thought it was time for the city to have a black one.
Lucas said Holley wasn't as "artful as we would have liked to have heard him make that statement."
"But certainly, people understood... what he intended was for this group of people who have been disenfranchised, who have not felt empowered, to have an opportunity to participate in economic development," Lucas said.
"But you said you don't want this to be a race issue," Rubin said.
"We're sitting here saying it is not about race, it is not about entitlement, it is certainly not about Louise Lucas," she said.
"It's about empowering these people who are supporters of being involved in some economic development in the city."
Jen McCaffery, (757) 446-2627, jen.mccaffery@pilotonline.com
Delicious
Digg
Reddit
Facebook
Google
Yahoo
Willy and Gertz...
Willy Brown said, "Tell me why voting democrat is a good thing?"
Gertz Point replied, "I was wondering the same thing about Republicans."
I was thinking the same thing about the Democrats AND the Republicans.
willy brown
I was wondering the same thing about Republicans.
Lucas
Unless she has some grand scheme in mind to attract visitors to Portsmouth and use this hotel, I don't think she should continue to force this issue. If no visitors come, or not enough, you're just lumping another cold building onto the city, and still not doing much for employment and the economy of the city. If she's so concerned about the 'disenfranshised', then perhaps she should make better use of her Senate seat and find more practical ways to combat this.
Tell me why
voting democrat is a good thing?
Representing herself
It's too early after the election to recall Mayor Holley, but is it possible to recall Ms. Lucas? It seems that the only citizen she's using her State Senate seat to represent is herself.
One Thing
Why would any large group of Black or White rent this Place. Nothing around here to see. You could buy a scanner and listen to the police calls. Try that. Them Men and Women bust there butts 24/7 in P-town and see nothing for reward. You need to look at that.
funny and sad
The funny thing about all this is the likes of Lucas and Holley wouldn't hire the people that vote them into office to clean their toilets yet these same voters are too stupid to realize it and continue to be used as their pawns.
Norfolk has the final vote
But, she is a politican and has influence over what Norfolk gets from the state. If P-town doesn't have the b.... lets see if Norfolk does.
What part of "NO" doesn't
What part of "NO" doesn't she understand?
LUCAS Project
Well I am still waiting for the Media to ask the right questions. The questions are where are the 600 people who are supporting this project. Nowhere I can assue you that. More than a few people started requesting their monies back or will be requesting their monies back. So Lucas needs to stop saying she is speaking for the 600 investors. Many of the initial investor are done with this project and just need the monies returned. That seem to be the issue now. When will the monies be returned.
what's with...
okay, I've seen her a few times and I have to ask. What's up with those glasses?!?!?
State Executive Branch
If you are as opposed to this as many of us seem to be. Please write to the executive branch. Governor, Lt Governor, and Attorney General. This is strong-arm political tactics that seems to resemble the Chicago or Philadelphia machine. Let's give the Gov the benefit of the doubt, at least he would have another opportunity to show The Commonwealth if party is above ethics. This needs to be investigated.
Investigation needed
We need to have an investigation concerning the use of her staff, that we pay, and their participation in this deal. Are we paying her staff to work on this project? I hope not, but suspect that we are. It really needs to be checked out and if they are assisting her she needs to pay back those funds to the state and then resign immediately. Vote accordingly!
The city has voted.
The city has voted. How can it be forced to vote on something that it just turned down? If everyone that received a "no" vote from the City Council had this right, the work of the Council would grind to an immediate halt.
Is Ms. Lucas' latest move legal?
Then, again, “the work of the Council would grind to an immediate halt” might not be such a bad thing.
I don't care if the Hotel is for green martens
Lucas has some nerve asking for $50 Million in bonds. I haven't read one comment where anyone things this is a smart idea.
No
Until Portsmouth can take care of their retirees like they are suppose to as well as bring up the pay of police and fire to be equal to the other cities in the region then they have no business doing this.
It's nice to see an elected official sue the voters via the city to get her way.
What a crock!
Economic Failures
This is trouble times with the U.S. Economy. Lehmann Brothers filed for bankrupacy and failing Merrill Lynch was brought out by Bank of America just this afternoon. This should be a sign for the City of Portsmouth officals not to proceed with is Sen. Luca project. With major companies starting to collapse like dominos. It's time to say, "NO" to a project in this time of an uncertain Stock Market. Portsmouth does not need another failed project, like Norfolk has with the defunked "Granby Tower!" A big hole and particle foundation is a monument to this failed project "Granby Tower" in the renovated business district of Norfolk.
Where's the collateral?
Until Senator Lucas puts up as collateral all her real estate holdings, including personal residence, all business holdings, and any other accumulated wealth she may have, she isn't very sincere about the outcome of this venture. The same goes for her 600 investors. She wouldn't have 600 investors for very long if they were asked to put their homes where her mouth is.
Here we go again!!
This issue was race related last time and it's race related this time. She said it then and she is saying it now. But now she is being "artful" where Mayor Holley was too stupid to. He said what he believed. She believes it too but is smart enough to keep her mouth shut. Nothing has changed. Disenfranchised my butt! Your playing the race card all over again. When this idea goes belly-up, and it will, they will walk away owing absolutley nothing!! They will set up their corporation to protect themselves if that happens. That is smart business. If they City can't build a descent Police Department and a descent Court building, it should have NO PART IN THIS. Stand Firm Council, this is a firestorm waiting to happen and you really don't want any part of this.
Citizens or Portsmouth are US residents too!!
wlnusbaum writes " ... The City is not liable for repaying a penny ..."
Most citizens of Portsmouth are US Citizens, thereby making them taxpayers or at least potential taxpayers. If these bonds are backed by the good faith of the United States Government, every citizen in the country will be on the hook when the business goes under. But I guess it doesn't matter to these 600 investors. The incentives to purchase municipal or EZ bonds is tax free earnings at either the local, state, or federal level, AND the backing by the taxpayers of such. Unless the US is going to default on it's guarantees, we all share this burden. It doesn't matter if you live in Miami, Virginia Beach, or Portsmouth, we all have a horse in this race. I guess neither Mr. Nusbaum, Louise Lucas or the Virginia Pilot think we should know this.