PORTSMOUTH
A $97.7 million lawsuit that companies created by state Sen. Louise Lucas filed against the city this week may inadvertently derail a crucial vote on her proposed hotel and conference center.
Attorneys are reviewing whether the lawsuit creates a conflict of interest for City Council members faced next month with voting on whether to give those companies access to federal and state bonds for the project.
The federal lawsuit claims the City Council in July rejected her initial request for low-cost financing because it wanted to control all conference center business in Portsmouth. It names as defendants the three council members - Bill Moody Jr., Elizabeth Psimas and Doug Smith - who formed the majority in the 3-2 vote.
Since then, Lucas has again petitioned the city, seeking access to $32 million in federal Empowerment Zone bonds and $6 million in state bonds. The matter is tentatively scheduled to come up before the council in January.
That raises the question of whether council members can vote on an issue that they're being sued over, City Attorney Tim Oksman said.
"We'll be taking a close look at the Conflict of Interests Act," he said. "And we'll be doing the same analysis for the council members presently not defendants on the case who could become defendants if they vote against the bonds."
On Thursday, Lucas' attorney said the council shouldn't have problems voting, because Lucas' new request isn't exactly the same as the July issue. Lucas has scaled back the size of the hotel.
"It should be viewed as separate," Attorney Verbena Askew said. "It's a different proposal that's being presented to council."
Lucas has created two companies - Victory Conference Center LLC and Victory Conference Center Hotel LLC - to build a $67 million project that includes a proposed conference center, hotel and office building on 7 acres in Victory Village business park.
The Portsmouth Democrat has raised roughly $700,000 from investors, most of whom are African American.
The lawsuit claims that the City Council rejected the financing because it wanted to protect its financial investment in the Portsmouth Renaissance Hotel and Waterfront Conference Center. It also argues that the council denied the money because the proposed project was led mostly by blacks.
State conflict-of-interest laws deem that a legislator has a personal interest in an official transaction when their financial gain or liability is over $10,000.
Normally, lawsuits that name legislators in their official capacity aren't taken into consideration, said Dan Siegel, chair of the local government practice for Sands Anderson Marks & Miller, a Richmond law firm.
"Being sued generally wouldn't come under that Conflict of Interests Act, but there are exceptions," he said.
Lucas' lawsuit names the council members in their official capacity, but it also is against them personally. It asks a jury to reward more than $12 million from Smith and asks for an additional $36 million in damages from Smith, Psimas and Moody.
Mark Flynn, director of legal services for the Virginia Municipal League, said that because the suit named council members individually, they could have a conflict in considering Lucas' second request.
"It's a gray area. However, there is an argument that the participation would be a conflict," Flynn said. "That's something that would need to be evaluated."
Because Oksman also is named as a defendant, Portsmouth on Friday had to hire private attorneys to represent the city, Oksman said. Bill Broaddus, the Richmond-based attorney hired by Portsmouth, declined to comment on the conflict-of-interest question because he hadn't fully reviewed the lawsuit.
Meghan Hoyer, (757) 446-2293, meghan.hoyer@pilotonline.com
Delicious
Digg
Reddit
Facebook
Google
Yahoo
"Why can't Ms. Lucas be treated like a citizen who is making an
"Why can't Ms. Lucas be treated like a citizen who is making an investment?"
Because Ms Lucas, according to papers released by the SCC, hasn't invested very much of her own money in the project. She would, however, like to "invest" $60 million of YOUR tax dollars in it. I assume if she wins her suit, she'll pocket the other $30 million.
don't cave
I sure hope that people don't cave into some "lawsuit" and vote for something that may not be in the best interests of all concerned. Time will tell how that plays out. BUT, just in case, this project goes forward, I'd like a job in that place. I'm sure the fact that I'm white won't hinder my chances in that "black" establishment will it louisee?
The definition of Louise Lucas
Main Entry: ego·cen·tric
Function: adjective
Pronunciation: "e-gO-'sen-trik also "e-
1 : concerned with the individual rather than society
2 : taking the ego as the starting point in philosophy
3 a : limited in outlook or concern to one's own activities or needs b : SELF -centered, selfish
Usually, someone who is egocentric is between birth and five years of age. You see it on the playground of a nursery school or Kindergarten. A child doesn't get his or her way and biting ensues. Deep teeth marks show up all over the other children because that one child bullies her way into getting what she wants and honestly feels she deserves. How is Lucas different from this?
She's not!
I'm Confused.....
Why is everyone so upset? Face it - Senator Lucas is being the same person she's always been! Just like Mayor Holley's comment about white and black hotels - that was nothing new - he just said it in public. Senator Lucas is doing the same thing. Eventually true colors always surface. Don't be mad at them for being what and who they are. They absolutely want a better Portsmouth, never think otherwise. They just want a better Portsmouth for a select group. Citizens of Portsmouth - if she can't get your money through a Council vote she'll sue the City into giving it to her through another vote or through submission/settlement. Look at who on the Council she's suing. Where was her lawsuit against the Mayor for his comments? Any questions? True Colors.
unless
Enough people see this for what it is she will be re-elected. Look at the way the Districts are drawn. I live in Churchland but my State Sen is from Hampton and probably couldn't find Portsmouth with a GPS. The only way to stop this madness is for a recall or the State to step in.
RECALL THE "LADY"
How can we believe Ms. Lucas is still in her right frame of mind? It is my opinion that she should be removed from office immediately...may she and that governor from where is it Illinois?? Maybe they both belong in the same looney bin??? How can an elected official, knowingly do what she is doing and actually expect to get elected again? However, just maybe, she feels that by filing her lawsuit against those members of City Council...they will be unable to vote and hence she feels the remaining will pass her request? Food For Thought...what is your opinion?
Truth
For the record, I am not an investor, friend or family member, just concerned about fairness for all involved. Let's talk about the Renaissance Hotel and Conference Center for a moment. Who stands to gain from their profits, is it the City of Portsmouth or maybe investors in the project? How was that project funded, was it tax payers money or government funding. If the Federal Government has monies available to be used in the City of Portsmouth and Ms. Lucas has placed a bid for those funds was she denied the first time because the city wants to revitalize the adjacent Holiday Inn or maybe Portside as a whole. Who's to say the city hasn't already has a claim for this money and they were already going to deny her before she even stated her case. If that were the case then that would make her suit relavent. Why do reputable hotels have to be downtown if you are trying to revitalize Portsmouth. Portsmouth is larger than just downtown. The three counsel members being sued, should they have excused themselves from voting because of conflict of interest? Did anyone in their family stand to gain from any future projects with this money. If this money is not used in Portsmouth were does it
Sad times in Portsmouth
As a former investor, I am saddened by this latest blow.
Ooooh, that smell. Can't you smell that smell?
sammbogum39 "teanri, these comments are just mean."
Let's see. Portsmouth already has one taxpayer subsidized conference center, that is draining its tax dollars because few groups want to hold conferences there. Now, Mz. Lucas is using the race card to force another conference center onto Portsmouth, solely for her own personal gain, causing even more hemorrhaging of its tax dollars. And she’s doing it at a time when Portsmouth is about to cut millions from its school budget. And you state that for the taxpayers to question that is mean?
I guess people could consider it mean, if they had their own money invested in this boondoggle. Thankfully, I don’t; so I can see this steaming pile for what it really is.
thanks for the link to gov
This is the letter I wrote to Gov Kaine
I am not into letters like this but I feel the need to add my concerns and comment on the story involving Sen Lucas and her involvement in her hotel and conf. center (as she herself calls BLACK OWNED). I'm a 41 y/o working, taxpaying, no criminal history white male that is sitting here in awe wondering how an elected official can be not only involved, but stand to gain financially from a project that has the sounds of reverse discrimination in a city she represents? And not only that but when the city turns down funding the project (in these economic times a good idea) she sues the city and a few others, and on top of it all she makes it a racial issue. I thought our elected officials were not allowed to use their office for personal and financial gain. I guess I still have alot to learn!!
teanri
Please, for a moment, try to understand that what Ms Lucas is doing and especially how she's doing its politically and professionaly a conflict of interest. Now, if she were any average citizens like you and me, then I would agree with you whole-heartedly. I certainly agree that MANY of these comments are "mean"....but take notice of the numbers that are speaking out on this issue. Look back at the other story about this subject. 101 posts and I stopped counting the negatives at 75....there were more, MANY more. You sound as if you support her actions, that makes me think you have a bias opinion, as if you were/are friend/family or even more understandable, investor who also has something to gain from this venture. She is an ELECTED STATE SENATOR who's trying to build an ALL BLACK OWNED business and when the city won't GIVE her the money for HER project she sues HER city for $97.7 MILLION. Show me where you think that's right!
"Why can't Ms. Lucas be
"Why can't Ms. Lucas be treated like a citizen who is making an investment?"
Because she is asking for public funding. Because a large part of the access to these funds creates a conflict. because public funds should not be used in a racist statement. That's just my top 3.
Reply to "understanding" by teanri
There is no way this lawsuit is justified. A lawsuit against the citizens she is supposed to represent is much different than a lawsuit brought about by an individual who is not in her position. Get the facts! Those who were at the city council meeting where her request was turned down know the reasons the bonds were deigned and they were all good, valid reasons. I did see a few people that must have slept through the proceedings and couldn't see the simple math involved. They must have also slept through math class in High School. It could also be that they cannot see through the race issue as our demented mayor so well illustrated. If this suit is successful the citizens of Portsmouth will have to pay the bill. Are you ready to chip in to make the Queen and her lawyers more money?
Mean?
Sen. Lucas has sued the citizens who elected her. If she prevails, the award would take up 17 percent of next year's budget. That means that RE taxes would need to be raised from $1.21 per hundred to at least $1.42 in order to recoup the loss, and would more than likely set the city up for bankruptcy. That's money directly out of your pocket going to hers, in addition to any federal grant money she may receive for her project. Yet some think people are just being mean to Sen. Lucas. She has issued an ultimatum that in any other area would be front page news. Why isn't it here? The residents of Portsmouth have a choice to make. They can strive for sorely needed better government, or kowtow to a mean-spirited political opportunist who just happens to be black. Choose wisely because your city's future depends on it.
Who needs "another layer." This is pretty simple
Criticism of Lucas is justified because the project looks for all the world like a boondoggle and bound to fail. It is because Lucas is suing those members of the council that voted against this project in an apparent bid to coerce them into changing their votes.It is because Lucas is using her position of public trust for personal gain. I agree that race influences some of our peers and that is unfortunate, but Holley made a very public, and wholly negative, association between race and this project few months back. Holley's comments merit a reply and will cause ripples. That is a central problem in this discussion, but criticism of the project comes down to two points:
1. This project will fail. Portsmouth should not just do anything, no matter how likely that anything is to fail, in order to build up its tax base. This project looks likely to do more harm than good.
2. The profit motives seems to mire Lucas's definition of public service. The Senator seems to be serving herself not the town. Questioning her motives seem warranted regardless of the color of her skin
those who defend her
teanri and sammbogum39 you seem to be the only two that are defending comrade lucas in her goal for working the system for her personal gain. You are correct we should treat her just like a citizen IF IF IF she were just a citizen but she is not she is to represent the best interests of the people of her district. Creating an undo economic strain on the citizens of her district so she can PERSONALLY turn a profit isn't what her office was designed to allow. IF her project was so needed by the area then why hasn't she been able to fund it through private sources alone?
teanri
Politicians are generally more heavily scrutinized by the public because they hold public office and are accountable to the public. Some, like Lucas, have forgotten that. She took that burden on when she took the oath of office. If she doesn't like it, she can resign her seat for all we care. As for her 'vision of Portsmouth', perhaps she should consult the constituents and see if her vision and their vision are on the same page. Besides that, her 'vision' shouldn't cost her so little and the tax payers so much, especially when the citizens have already told her no the first time. And how does suing the city for 97 million dollars help her 'vision of Portsmouth'? That's just stealing from Peter to fund Paul's pet project...
To Teanri
You ask..."Why can't Ms. Lucas be treated like a citizen who is making an investment." Answer is because she's not just a citizen making an investment. What you should understand is that politicians must use their office to serve their constituents, not there own personal investment self interests. This clearly appears to be the latter, since she's willing to saddle Portsmouth with a multimillion dollar lawsuit. Additionally, the normally average investor doesn't have the luxury of using their elected office as a means to personal enrichment. I'm sure president elect Obama would agree with me, so Portsmouth voters need to adapt the Barrack Obama model of political leadership not the Lucas and Kwame Kilpatrick model---Real Change.
you're right
teanri, these comments are just mean.
Like i said
Delay the vote due to the lawsuit and let the bonds expire. Problem solved courtsey of Louise. Now that would be justice.