The Virginian-Pilot
©
PORTSMOUTH
The city has asked a federal judge to dismiss the $97.7 million lawsuit filed by two companies tied to state Sen. Louise Lucas, saying the claims against the city, its City Council members and the city attorney "lack any basis in law or fact."
Victory Conference Center LLC and Victory Conference Center Hotel LLC filed the suit in December, arguing that Portsmouth violated federal antitrust and civil rights laws when it denied access to low-cost financing to build a $67 million hotel and conference center. The project is planned for the city's Victory Village business park.
The lawsuit says the council denied the bonds to maintain a monopoly over conference business at the Renaissance Portsmouth Hotel and Waterfront Conference Center, which was built under a public-private partnership. It also says the council discriminated because Lucas and the majority of the investors are black.
In a memorandum filed Tuesday supporting its motion to dismiss the suit, Portsmouth argued that Supreme Court decisions and state laws give cities the legal ability to deny bond funding for a project.
The city's motion to dismiss said there was no evidence that bias played into the decisions of Councilman Doug Smith and the other two council members who denied the project. The two companies alleged in the suit that Smith said in a conversation that he was a "sheltered white boy" who didn't know the type of clientele that would be patronizing the planned hotel and conference center.
William G. Broaddus, an attorney representing the city, and Smith declined to comment Wednesday, saying the city's position was laid out in its papers filed in U.S. District Court. In the memorandum, the city argued that the idea that the funding was rejected because of race was "mere speculation" and said Smith's "alleged comments" were simply "self-depreciating humor."
It also stated that Vice Mayor Bill Moody Jr. and Councilwoman Elizabeth Psimas, who also voted against the project, never commented on any issues of race - making it difficult to prove that the council acted with "purposeful intent to discriminate," the bar set by the law.
Attorney Verbena Askew, who represents Victory Conference Center LLC and Victory Conference Center Hotel LLC, did not return a call to her office Wednesday. The hotel company is led solely by Lucas, while the conference center has several hundred investors. Last month, attorney William Nusbaum said investors had provided $700,000 in funding.
Lucas announced plans for the $67 million hotel and conference center in late 2007. The project is slated for construction on 7 acres of the Victory Village business park.
To help finance the project, the companies requested access to millions in low-cost state bonds and federal enterprise zone bonds.
The council denied the funding request by a 3-2 vote in July, with two council members abstaining from voting because they or their spouses had invested in the conference center.
At that time, several council members who voted against the bonds said they were uncomfortable because there was no assurance that the companies would not later ask for city funding.
Victory Conference Center LLC and Victory Conference Center Hotel LLC have since scaled back plans for the hotel, cutting it from 250 to 200 rooms, and have reapplied for the council to approve up to $38 million in tax-exempt bonds.
The matter was set to go before the council Tuesday night, but the companies earlier this week requested a deferral until Jan. 27.
Meghan Hoyer, (757) 446-2293, meghan.hoyer@pilotonline.com
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To DiamondLife
Since most comments go opposite yours, did you ever consider the possibility that your opinions are wrong? Sure you can get a ride on the Lucus mobile when you need one and that's great, but we are not talking rides here. We are talking a project that will hurt the city finances, morals and the public trust voters put in their representatives. Are you ready to pay your part of the 97 million dollar lawsuit? After all it is you as one of the people Lucas represents who is being sued. Do you agree with using the race card and intimidation to get these bonds? Wake up! We now have a black president. The race card has expired. People are elected and judged on their intellect, ability and honesty no matter what color they are. Using the race card is a last resort because that is how she operates when things don't suite her. Take the blinders off and look around impartially.
NICE TO SEE
It was nice to see that the Pilot with their editorial this past week, take a stand against Senator Lucas's request for tax-break assistance to finance or subsidize her proposed complex at Victory Village. Maybe she asked the Portsmouth City Council to delay the vote because she has decided to also sue the Pilot, only her lawyers know. Amazing what you can do with the internet, I urge each one of you to e-mail each councilman/woman on the Norfolk and Portsmouth City Councils, City Manager's, City Attorney's, Treasurer's, etc. and if they do not have an e-mail address, mail them a letter. They are there to listen to the people and to do the right thing for the people of both cities, something Lucas needs to learn.
City Leaders Problems in Portsmouth
The city leaders in the Portsmouth City Council must stop the lucas attempts to enrich her self through tax payer money. The (supposed) Senator is in the position of one who is elected to represent her District, that is the voters - tax payers - Property owners, who pay taxes and live in Portsmouth. The senator occupying this position is sworn in and legally obligated to up hold the law! In the case of lucas ,An outrage of a lawsuit against the city council,and the legal council for the city, has been filed. This means that (she) lucas is in fact suing the very folks that (she) lucas , is according to Va. Law directed to support, aid, and assist in times of difficulty. She through her actions is not acting on the behalf of her constituants, the voters, (she) lucas is actually attacking the voters - THE very people that need her support in these difficult times when the financial conditions of most of us common tax payers are at least ,very tough! I believe that (she) lucas is acting deliberately against the best interests of us all.
Lucas project controversy
There are many African Americans that oppose the tactics, threats and forms of intimidation that have been used by Lucas in trying to secure Empowerment Bonds. Many stand with her in her right and attempts to secure them. The levels of misinformation, miscommunication and downright hostility is uncalled for and especially uncalled for coming from a state senator. If it had to be done over, I think a different approach would have gotten a different outcome. This has been a lesson in how not to conduct a business deal. Having said that, the empowerment bonds should be approved for her use if she has a good business plan and can secure financing which we haven't much about. She has to pay them back and not the city. It sounds unethical because of her position in the senate and maybe it is, but it certainly has not been proven. I hate to see her good name dragged through the mud but she has brought a good deal of the negativity on herself by her own actions.
NO means you can't have
I am sorry this woman needs to know what no means I feel as if someone as she was growing up didnt know how to tell her no so now she thinks she can have evrything I have lived in Portsmouth my whole life and I am proud to say I am from P-town city council stand your ground PLEASE we dont NOT need another Hotel If she wants it so bad then she needs to go out and raise more money and not ask from the city the is some much more in the city that can use these bonds the city is in need of things for the children to do put the bonds to use in giving the kids things or building things that the city needs come on who has the money right now to stay in a hotel or have parties STAND UP for what we the people of Portsmouth need that is why you were voted in and you can be voted out please do what is right say NO
Don't sell Portsmouth quite
Don't sell Portsmouth quite that short, now! While it is true that the economy cannot support this venture at this time, there are many fine restaurants in Portsmouth...particularly Olde Towne, and the Victory Crossing area is well on its way to being quite lovely. The new TCC campus is getting closer and closer to completion, and the new homes in Newport are very nice indeed. Sure there are crime issues in some parts of Portsmouth, but the city has traditionally been very protective of the areas where econmic development has been underway. All is not doom and gloom!
Not a racial issue
To an outsider, the argument for and against the Victory Conference Center may appear to be a Black vs. White issue it's not! Most if not all of the people who have publicly supported Senator Lucas in this venture are Black, and those who have opposed it are White, the truth is of the matter is that it is a GREEN issue-green as in the color of money. Any reasonably sane person can easily conclude that a business venture of this nature is doomed to fail in this tight economy, and in a city like Portsmouth that doesn't have the infrastructure to support anything near a luxury hotel and conference center. Where would visitors to this city eat? How will they entertain themselves? Where can they shop, and who is going to protect them? (There has already been two murders in Portmouth in the first 15 days of this year. Sounds rather inviting, doesn't it?) Maybe if we could get more of the African American dissenters to speak up, the argument wouldn't be so controversial and biased in appearance, and playing the race card wouldn't work for a change.
You know who
wont jerk people around and cause all these types of problems in the fine City of Portsmouth? Doug Funkhouser thats who...so citizens come election time, dont believe the bunk, vote for Funk.
Not the Forum for VCC
This site is clearly not the forum for VCC supporters. Those of us who try to post the truth get blocked out, while those of you who continue to spread negatism are allowed every opportunity to speak. Why did I ever think this would be a fair forum? You all must be working for the same source! Vengence is mine said the Lord! With that said, I leave well enough alone! You bloggers have fun insulting each other.
Shame on You!
Just Go Away! You were wrong to go offpoint and label a business that provides transportation assistance to those in need a welfare wagon. I pray that you or no-one in your family ever becomes disabled, because you too will may need the compassion of one who can offer you similar assistance. Shame on you!