The Virginian-Pilot
©
VIRGINIA BEACH
Developer Bruce Thompson could receive $1.8 million in city grants to help him transform the Laskin Road corridor near the Oceanfront into a restaurant and retail district with apartments and offices.
In the first public presentation of Thompson's Beach Centre project Tuesday, city officials said that the development could qualify for an economic development performance grant.
The grant would be in addition to $28.4 million of road and sewer improvements that Beach officials plan to undertake in that area, some of which will help Thompson's project.
Thompson's $60 million Beach Centre, with 178 apartments, a 520-space garage, 64,000-square-feet of retail and 45,000-square-feet of office space, is exactly the type of development that city officials have wanted to see in that area, called the Laskin Gateway, said attorney R.J. Nutter II, who is representing Thompson.
City leaders hope Beach Centre will launch the transformation of that section of Laskin Road, which is mostly a collection of longtime businesses in squat buildings.
The development will also bring the city additional tax revenue - an estimated $1.1 million, according to Beach officials, Nutter said.
"It completely sets the tone that the city wanted to create in the gateway," Nutter said. "Somebody had to step up and take the risk."
The grant would be paid over two years and would be based on Thompson making his investment into the project. The Virginia Beach Development Authority would have to vote on issuing the grant. It gave a similar grant for $800,000 last year for the Convergence Center Business Park off Bonney Road.
The City Council will have little to vote on specifically related to the project. Funding for the road and sewer improvements were included in this year's budget. And that block, between Pacific and Arctic avenues, is already zoned for developments such as Beach Centre.
"All this happens with or without the council saying so," Councilman Glenn Davis said.
The City Council, however, will vote next month to allow City Manager Jim Spore to sign a non binding agreement with Thompson.
"It's more a road map," Nutter said. "Nobody is going to sue each other over the agreement."
That agreement will allow Thompson to be eligible for the performance grant and outline the city's commitment to improve the roads by the end of 2011, in time for Beach Centre's opening.
Under the agreement, the council in the future will discuss making the Laskin Road Gateway area into a special tax district. Thompson has also asked the council to consider designating the Beach Centre block as a revitalization area so that he can qualify for state financing to build some affordable housing.
"That's still up in the air," Nutter said.
The public will be able to comment on the agreement at the City Council meeting Aug. 25. The City Council will vote on the agreement at its Sept. 8 meeting.
Deirdre Fernandes, (757) 222-5121, deirdre.fernandes@pilotonline.com
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Obfuscation
Al to make such a comment is to reveal the depth of obfuscation of one of the members of the VBTA inner circle. Just to name a few projects: new recreation centers, new public libraries, water, sewer, and storm drainage projects, a plan to buy open space, modernization of the public schools and the construction of new ones, new highways to serve subdivisions, intersection improvements, the Lake Gaston pipeline, even the parking garages so citizens can enjoy the Beach, and new parks to enjoy the outdoors, and on and on. To suggest that the City has ignored its neighborhoods and its citizens who live in them is the height of ignorance. Of course, many subdivisions are not that old and do not yet require renovated utilities, yet when they do, the commercial real estate tax bse will help to pay for them. Al, you are so wrapped up in the commercial residential ratio that you fail to see what it really means.
Well they certainly ignored
Well they certainly ignored the residents of Burton Station Mike. For all those years the city neglected those folks and tried to take that property for private developement for an industrial park. Now that the legislatue has tightened the leash on eminent domain, now the city has given in to "work" with these folks and give them the city water and sewage they should have had a long time ago.
Keith
One day I will make a list of Mikes editorial conversions. Despite being the primary economic engine in this City we have 985 aging neighborhoods that are virtually untouched. Enjoy your comments which are right on target. Wish I could send you a document by e-mail that you might find of interest!
Depends upon how you look at it
Well Al, you will get no argument from me about the importance of the residential tax base, but of course, I will continue to get an argument from you and the VBTA about the value of the commercial tax base. And since our residential tax base will never see the increases we experienced in past decades, the wisdom of stimulating commercial growth makes all the more sense. Thank you for acknowledging that we are one of only a relatively few cities in the Nation with a triple A bond rating. I know you don't like to admit that, but it is a fact. Because we can borrow at the lowest rate possible, we can modernize our schools, replace old underground utilities, build a new animal control facility, update our libraries, replace an aged convention center, and engage in neighborhood revitalization. If we followed the VBTA recommendations, these projects would be delayed and may never occur, just like what has happened in Virginia to our once proud and efficient highway system.
Well Al, I guess you have
Well Al, I guess you have figured out by now that only Mike Barrett has the "facts". The rest of the city residents who disagree with those "facts" have the intelligence of a tennis ball, are assumed to be members of the VBTA which puts you on par with the anti-christ, and are branded forevermore with a label of Mike's choosing.
You have to admit Al, that Mike is a master at spin. Nobody does it better.
Mike, why do you always edit comments
The City's AAA rating (from 1 rating agency) is primarily attributable to the value of residential assessments! In the event of default council can levy and collect on all taxable properties over and above the value of all authorized taxes & properties. The share is $47 billion for residents which translates to a City debt ceiling of about $1.65 billion. Mike, I know you love to write your own script but if I criticized the City, it would be for using the assets of the residential community to borrow money on behalf of "special interests", who could not collectively support a City enacted debt ceiling of $20 million. As far as I am concerned they can borrow as much as they need for projects with widespread public benefit such as a water treatment plant, street repaving in aging neighborhoods, etc. Incidentally, about 25 cities in the US have AAA ratings from all 3 agencies and I believe about 100 cities have a AAA rating from one of the big three. We are one of the 100+. You may be able to think you can alter my comments but I try to stay focused especially with you! Mike, please go to the Arlington Virginia assessors site and check out real transparency in action. Arlingto
Yes Al, the Earth is Flat
Yes Al, I agree, the earth is flat. No amount of expert testimony will ever convince me that the earth is actually a globe. That is exactly the point; you and the VBTA start with one conclusion, that residential real estate taxes in Virginia Beach are too high, and no amount of factual information will ever change that conclusion. But of course, to continue to hold to that view, you have to ignore every fact to the contrary. The fact that we have the lowest tax rate in the region, and among the lowest for cities in Virginia, you simply dismiss as a mirage. The fact that values did go up faster during the last seven years because people paid too much, you must conclude is a conspiracy of the city council in cohoots with city assessor. The fact that we have a triple A bond rating from all the rating agencies in the Nation is criticized because it allows us to borrow too much money. Admit it Al; you and the VBTA would not know a fact if it hit you on the head.
Good point but not total picture
Values do not have to be lowered just the tax rate. The average assessment increase for all residences was about 160% since 2000. The incremental tax rate reduction bottomed out at 27%. We actually have the lowest rate but the highest tax burden in Hampton Roads. SFH was $363,000 in 08/09. Assessments for residents soared from $16.8 billion to $47 billion since 2000. High assessments increased home insurance and than fees followed to increase the tax burden. That provided the debt service with a great deal of borrowing power. Almost $3 billion including $1.2 billion in payments since 2000. The City enjoys a huge debt ceiling which is targeted to other special interest who provide a marginal debt ceiling. If the City took care of the infrastructure for 985 aging neighborhoods it would work out fine but unfortunately we are always on the back burner! The tax base is 85/15.
Good point but not total picture
Values do not have to be lowered just the tax rate. The average assessment increase for all residences was about 160% since 2000. The incremental tax rate reduction bottomed out at 27%. We actually have the lowest rate but the highest tax burden in Hampton Roads. SFH was $363,000 in 08/09. Assessments for residents soared from $16.8 billion to $47 billion since 2000. High assessments increased home insurance and than fees followed to increase the tax burden. That provided the debt service with a great deal of borrowing power. Almost $3 billion including $1.2 billion in payments since 2000. The City enjoys a huge debt ceiling which is targeted to other special interest who provide a marginal debt ceiling. If the City took care of the infrastructure for 985 aging neighborhoods it would work out fine but unfortunately we are always on the back burner! The tax base is 85/15.
Ethical violation
Al, all I can say is that you are a real hoot. Essentially, you are suggesting, as trouble points out, that the assessor ignore sales data and adjust it for what industry experts say sales have done. First, that is ridiculous on its face. Second, he could be put in jail for such behavior, and third, he would risk his professional ethics for acting as you have suggested he act. Now knowing how the VBTA operates, you suggestion is no surprise to me, but it is shocking nonetheless to actally see it in print. And at the end of the day, if assessments had gone down more than they have, the rate would have simply been increased to pay for the services our citizens want. Al, what you and the moribund so called leaders of the VBTA have refused to learn is that our citizens want quality services, and frankly, are willing to pay for them. Clearly, you don't believe the result of the last election, but we do.