The Virginian-Pilot
©
NORFOLK
The city's housing authority board agreed Monday to stretch out its East Beach development loan, citing the slow real estate market as the reason for the financial restructuring.
The Norfolk Redevelopment and Housing Authority was supposed to make a nearly $1.4 million payment next month and was one year away from paying off the debt on its 100-acre redevelopment project along the Chesapeake Bay.
But it has only $350,000 in the bank to pay its September bill, said John Kownack, assistant executive director for housing reinvention.
Under the new loan, the agency will make smaller payments through 2013 to pay off the remaining $1.76 million of its original $10 million bond issue.
The bond money went toward acquiring and demolishing properties in East Ocean View in the 1990s and early 2000s in order to make way for the new neighborhood.
The agency has used proceeds from the sales of East Beach lots to pay off the loan. When times were good a few years ago, it made a double payment of more than $2 million on its debt.
But in the past few years, annual sales have slowed from a high of 40 to 50 lots to about 10 to 15 properties a year, Kownack said.
Board Vice Chairman Robert Layton said the restructuring is a result of market forces and doesn't speak to any financial weakness or problem with the redevelopment project.
"Obviously a year ago, 18 months ago, we were well ahead of any track we ever predicted," he said. "This is just a prudent business decision."
Meghan Hoyer, (757) 446-2293, meghan.hoyer@pilotonline.com
Delicious
Digg
Reddit
Facebook
Twitter
Google
Yahoo
This is where the agency
This is where the agency will not allow any Doscrepamcied against any federal statement that has been stated. If you don't believe me, just watch what gets posted.
This is where the agency
This is where the agency will not allow any Doscrepamcied against any federal statement that has been stated. If you don't believe me, just watch what gets posted.
I have no stick to pull out,
I have no stick to pull out, nor will I ever attempt to be the one to do so. However, if you feel the need for somebody to do this for you or somebody to talk to, I would be happy to ablige and make you feel better. I have been there twice and would love to offer my serviceses anytime that I can, but the democrats simply will not allow that to happen.
Oh...So they want to stretch
Oh...So they want to stretch this one oput, but not any others. This apeaks volumes about the NRHA and every other subsidery around it. They should all be disbanded and declared to be illegal immediately.
Oh...So they want to stretch
Oh...So they want to stretch this one oput, but not any others. This apeaks volumes about the NRHA and every other subsidery around it. They should all be disbanded and declared to be illegal immediately.
The Real Story
Board Vice Chairman Robert Layton said the restructuring is a result of market forces and doesn’t speak to any financial weakness or problem with the redevelopment project. “Obviously a year ago, 18 months ago, we were well ahead of any track we ever predicted,” he said. “This is just a prudent business decision.”
Let me repeat what Bob Layton already knows. Housing activities account for $67.0 million (69 percent) of the FY 2009 budget. Development activities make up $27.5 million (28 percent) and other activities make up $2.2 million (3%)
FY 2009 ($) 96,671,125 BUDGET
NINTY-SIX MILLION DOLLARS!!!!!!!!! Sunshine Law Exempt!
But it only has $350,000 in the bank to pay its September bill, said John Kownack, assistant executive director for housing reinvention.
Do we need one tenth of the city budget in a housing authority that competes with me and my property?
The Norfolk slums of the 1930's are gone city leaders.
This hydrahead needs unwinding and decapitated, but sadly that will not happen today because another "prudent" decision has been made.