The Virginian-Pilot
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VIRGINIA BEACH
The city's development authority will vote Tuesday on whether to buy the vacant Circuit City property next to Town Center for $5 million, setting the groundwork for a potential light-rail line and station.
The City Council likely will make the final decision when it meets in August.
"I'll support that... I think it's a fair price," said Mayor Will Sessoms. "I think you have a lot of opportunities for that piece of property."
The 3.74-acre Circuit City property is assessed at a total of $5.8 million, according to the Beach's latest tax records. It backs the Norfolk Southern right of way, the probable path of a light-rail line from Newtown Road to Birdneck Road.
Virginia Beach officials are in final negotiations to buy the right of way from the Norfolk-based freight railroad for $40 million.
Hampton Roads Transit has just started a $1.5 million study on the feasibility of light rail along the right of way.
Some city officials argue that Virginia Beach is jumping ahead, considering purchasing land for a possible station, when the City Council hasn't decided whether to extend light rail from the Norfolk border into Virginia Beach.
"Well, right now I think there's better uses for the money," Councilman Bill DeSteph said of the proposed Circuit City land purchase.
The city could face budget shortfalls next year if the economy doesn't rebound, he said.
It is likely the Beach would get the money to buy the land from bond sales, said Mark Wawner, the city's Town Center project manager.
Whether the property is used for a park-and-ride stop, a light-rail station, or to expand the development of Town Center, it's land that the city should control, Wawner said.
"It's an opportunity to take advantage of a distressed property," he said. "It's an opportunity that we can't pass up on."
City officials expressed interest in the property in April, soon after the electronics store went out of business.
Commercial real estate manager Gerald Divaris, who also helped develop Town Center, brought the deal to city staff and asked for a fee.
Several council members balked at the fee, which would have forced the city to pay the property owner more later if the value of the land increased.
That fee is no longer part of the deal, Wawner said.
Divaris will be paid a commission, but that's the responsibility of the seller, Wawner said.
Cardinal Capital Partners of Dallas owns more than three acres of the Circuit City property and got permission from a bankruptcy court on Thursday to purchase the adjacent half-acre - part of the parking lot - from Circuit City.
That allowed Virginia Beach officials to move forward with the deal with Cardinal Capital, Wawner said.
"We wanted to control all the property," Wawner said.
Scott Riley, managing director of Cardinal Capital, said the next move is the city's.
"We're waiting for them to get back to us with definitive interest."
Deirdre Fernandes, (757) 222-5121, deirdre.fernandes@pilotonline.com
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Pure arrogance Mike!
Well, the citizens of VB just might support light rail this time Mike. Then again they might not. In my view those who voted for Will Sessoms didn't listen to reason or clear headed thinking. Neither did those who voted for Barry Obama. These people voted with their angst as well didn't they? You are petrified that VBTA will throw a wrench into HRCC's plans to sucker the VB citizens into paying for this steel elephant. You're afraid that VB citizens may find out the true cost of this boondoggle and rally against it. That's why Jim Flinchum and probably you as well wants to make sure that all information remains with city council and the HRCC weenies. Make sure all of the hearings are held when working poeple can't attend. What is the difference Mike between voting in a general election and voting in an advisory referndum? Both are expressed wills of the constituents aren't they? So what if it is only 10 percent? The 10 percent who show up care enough about the issue to make their views known. As usual, so long as the end results are what you favor, you would be open to whatever it takes.
Worthless
I certainly beleive that the citizens of Virginia Beach support light rail; I am not sure that the 10% of those who show up to vote in an advisory referendum will support it. It is quite clear that advisory referendums play into the hands of those who are angry, mad, and don't listen to reason or clear headed thinking. They vote with their angst. "Save the Park" for example. First, there was no park. Second, there was no money to pay for a park. Third, the land had been purchased by the IDA with the express stated purpose of developing a multi use project that would transform the northern end of the resort area. Fact is, all of things have happened, yet council still gets hit over the head by the losers at the AVBTA with the fact that the referendum failed even though the candidates that supported the park were not elected, and those that supported the 31st Street project were elected. Go figure, so why waste taxpayer money on a worthless referendum?
One more thing Mike
A referendum for light rail is IN THE PUBLIC INTEREST.
You ask if you agree that
You ask if you agree that government by referendum is a disaster, why bother with an advisory referendum on light rail?
Don't you think that VB citizens are smart enough to decide whether or not to believe a certain group of citizens. After all there were pro citizen groups as well as con. Just as there were the same in the past election. Mike, you're afraid that if a referendum were held that light rail will fail again and council just might take their advice. You really believe that VBTA may have some effect on the outcome don't you. They have just as much right to oppose light rail as the HRCC and the Real Estate weenies have to support it. That's the way the game is played. Also, not everyone has the freedom to attend council meetings at 10:00 am in the morning on a Wednesday. This is an expensive undertaking and it calls for a referendum no matter how inconvenient it may be. The city has no problem spending money on Will Sessoms speeches and being a spendthrift council. They can afford it.
The cost of referendums
Well yes, if you agree that government by referendum is a disaster, why bother with an advisory referendum on light rail. Council has plenty of time before the EIS is complete to take the pulse of the voters. They will schedule public hearings, hear from experts around the country, sponsor visits to communities linked by existing light rail systems, and most of all, do their best to assess how these bits of information are relevant to our particular situation. That is how democracy works best. Contrast that with the 2002 referendum of roads when a small group of dissidents did all they could to scare and intimidate voters. The result was a complete disaster for the citizens, with the cost of needed infrastructure rising by a least a factor of two, and more likely four times by the time the General Assembly acts. So those who claim to have been fiscally frugal will end up having cost us, the taxpayers, billions of extra dollars. Where shall we send the Bill?
VABEACH - Government by the developers and for the developers
Well I would characterize your view in that way. It's whatever the "experts", the proffessional opinions, and the HR committies decide what's in the public intrest. The business communities think the VB citizens don't know what's good for them. They're only needed during election season. Just as your buddy Jim Flinchum of the HRCC said the other day that the public doesn't have access to the information that council has. That's the way he wants to keep it. As for the referendum itself, it is only advisory. I agree that complete government by referendum is a disaster. In Virginia there are only a few circumstances where they are binding. However, I see no reason not to have such a referendum to take the pulse of the folks here that are going to go bankrupt from taxes paying for it. As for California, it has been run by democrats for so long, it's no wonder they are in such disarray. That's why it's called the land of the fruits and the nuts. They ought to give it back to Mexico and be done with it.
republic
Well Keith, I would not characterize my view that way at all. Council holds meetings, planning sessions, council meetings to hear from us, the citizens, about what we think is in the public interest. They empower commissions, committees, task forces, and study groups to recommend action in particular areas and functions of government. That is what an elected official's role is in our form of government, and after hearing the views of the citizens, studying professional opinion, reading and talking with experts, it is to then decide what is in the public interest. Government by referendum is a complete disaster, and there is no better current example than the State of California, which could better be described as the state of confusion, disarray, irresponsibility, and disaster, most of which is the result of proposition 13 and the initiatives which have followed which relieved elected officials of the responsibility to govern and instead replaced that with referendums. What a disaster.
The public interest? Rubbish sir!
Well, Mike, then why even have public city council meetings then? So there is no need for citizens to make their voices heard? Well why stop there. Just do away with public budget meetings. Just trust us. Even Thomas Jefferson said that you should poll your constituents. And you seem to be in favor of that as long as the end results are in your favor. The council are your elected representatives so roll over and play dead. What an arrogant attitude Mike! No wonder you favor the likes of the HR entities who are appointed to exthort money from the taxpayer with no accountability to anyone. Your buddies in the chamber of commerce probably will get their wish, because city council is going to ignore the will of their constituents whatever the end results of the referendum are, just as they did with the formation of the HRTA. It's non-binding. Besides, there are enough developers and real estate members to over-take any nay sayers. It's been decided already Mike. Behind closed doors with the intent of making sure VB citizens are still mushrooms.
lite rail
if they want lite rail to work they need to run it to the naval station and across the water in both directions. then it would get some serious use. No one is going to use it locally accept those who ride the bus now and they are limited. save people going through the tunnels and you might have a case.
The Public Interest
Well Keith, you do not need to be disagreeable just because you support government by referendum, and I do not. I have consistently expressed a preference for elected officials acting in what they perceive to be in the public interest, not what might be the popular idea of the day or week. No, the public interest is what one would do if they could see clearly, think rationally, and act dispassionately. The problem with direct democracy is that it is all sail and no anchor. Economic development, and urban revitalization are absolutely necessary for our city to continue to thrive and prosper, and the reason we have weathered the recent storms well is that past councils had the courage to create PPVs, to utilize TIFs, the act to stimulate and diversify the resort area, and to use innovation and business acumen to shore up our economy. If they had not done so, we would be much like other cities who had significant cuts in services. So let's move forward.