VIRGINIA BEACH
The City Council agreed Tuesday night to spend an additional $531,329 to acquire The Virginian-Pilot's property on a crucial block of Town Center.
In a 9-2 vote, the City Council agreed to spend $5.1 million to buy the 1.3 acres off Virginia Beach Boulevard and relocate the paper's staff to offices in The Westin Virginia Beach Town Center.
The cost of the deal grew because the costs to set up and furnish office space at The Westin increased. Money from the Economic Development Investment Program will be used to cover the additional cost and the $300,000 in moving expenses.
"It's important that we control that property for the future," Vice Mayor Louis Jones said.
Councilman Bill DeSteph - who, along with Councilwoman Reba McClanan, voted against the deal - said the build-out cost totaling $1.5 million, or $98 a square foot, was overpriced.
"The terms of the deal were a little unrealistic," DeSteph said. "This is the wrong time to be doing this."
The deal with the paper removes one of the obstacles to developing the next phase of Town Center, which calls for an office tower and a garage on that block.
The next phase, which is subject to approval by the City Council, would require taking a portion of the hotel taxes from the core of Town Center that currently goes into the general fund to pay for the development. Armada Hoffler would also have to get financing.
Residents have questioned the need for moving ahead with the next phase in tough economic times, and some council members said they want a better sense of next year's budget outlook before making a decision. Council members and residents need more information about the city's method of paying for Town Center using a tax increment financing district, Councilwoman Barbara Henley said.
"We're taking some major steps," Henley said. "I want to make sure that each one is on firm footing."
Some residents also called on the City Council to postpone next week's scheduled vote on creating a new and separate TIF around Pembroke Mall and surrounding properties to pay for a pedestrian bridge and street improvements.
Deirdre Fernandes, (757) 222-5121, deirdre.fernandes@pilotonline.com
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It's not the Pilots fault...They should get market value….. Thank God they are too big to run out of business with unfair task forces under-handed policies, zoning or policing....If the City or a Developer wants a property they will get it....I’m glad they received fair price instead of the private and abusive use of government I've been noticing at the Oceanfront
1)Shut a business down
2) wait for value to drop
3) Purchase or let a contributor or friend snatch up.
It will only get worse with Sessoms,He has already shown questionable integrity by not addressing the fliers handed out by his campaign, Why did council not vote on this until after elections?
I hope the City makes a profit with OUR money and it doesn’t just add to already wealthy pockets…
Taxpayers you should pay more attention to what Council does with OUR money..If we don’t who will?
Avoided Like the Plague
Worked in the area. Traffic 15 years ago was nuts. Learned many back roads to avoid the area in general most times of the work day. The stand of mature trees in that area had much greater worth than all of the concrete, now in China. For the CoVB to squeeze the cash for another lot, in this day and age of depleting resources, may be a shortshghted move. Gov. Wilder was noted as saying fund the necessities, not the niceities, then the axe fell on state-wide budget cuts. Who gives a twit if Town Center is developing when the roads have pot-holes and failing infrastructure? Same for the CoVB's most valuable resource, its staff of professionals - public safety and others. The folks that own Pembroke Mall might as well sell that off soon since it will be viewed as a deteriorating property subject to condemnation and demolishing only to be redeveloped into some goofy stick and brick development. Yea, nothing there today to enjoy and just so much to avoid in daily travels. None of my cash to any of those projects unless stolen from the CoVB.
Beachboy - missed the point
The point was to illustrate how the "greedy" developers are not always to blame for the price of development. The majority of people do not know the risks of lnad development, and don't realize the neighborhood they live in wouldn't exist without the developers.
Don't Blame the Pilot
"Greedy" does not apply in this situation. A willing buyer and a willing seller agreed on a price. The City of VA Beach didn't have to accept it.
Pitiful!
Pitiful!
Greed
The Pilot is always happy to go after the "greedy" developers. But when the greedy paper gouges the city, I guess that is ok. High land costs are part of the reason everyone's home prices were so artifically high. Thanks Pilot for ripping off the city - keep up the good work.
hello?
Why is the story not on the front page of pilotonline? Too ashamed to admit that you robbed the city?
TOWN CENTER PROPERTY
Taco Bell - hang tough - don't give in to them!!!
well,
Well, the door's been opened...let's see what happens now! Lots of money in the budget you know. Must be a lot of stuff to move for $300,000.