Portsmouth urged to build on assets

PORTSMOUTH

This city doesn't have much cash to entice developers. But it does own some strategic parcels that could spur economic growth. And Portsmouth has access to state, federal, and local incentives that can drive investment in the city.

That's what members of City Council heard during a retreat Saturday as they developed a strategy to jump-start economic development over the next three to five years.

Council members prioritized four industry areas they would like to attract and retain, building on the assets the city already has: Retail and small businesses; health care and life sciences; technology-based modeling and simulation; and maritime-related businesses.

"You've got the potential, you've got the land, you've got the incentive money," said B.J. Taylor, president of Taylor & Associates Inc. "You've got a lot of things other cities don't have."

City leaders hope eventually to reduce the city's real estate tax rate. Portsmouth residents face the highest local tax burden in the region, at $4,477 per year. The next closest city is Norfolk, with an annual tax payment of $3,915.

"We've got to bring the real estate tax rate down," Councilman Charles B. Whitehurst Sr. said.

City leaders also face the prospect of additional state cuts and declining local tax revenue.

Developer and former Portsmouth City Manager Bob Williams told the council that the city has many strengths to help spur redevelopment. In addition to land the city already owns, Portsmouth is home to the Norfolk Naval Shipyard, the Portsmouth Naval Medical Center, Maryview Hospital and port terminals.

The 40-acre site that used to house Woodrow Wilson High School adjacent to Maryview could one day have doctors' offices or other health-care related businesses, Williams suggested.

The former Cradock High School on George Washington Parkway could be redeveloped to house a contractor that works with the shipyard, given the site's proximity. And the parcel east of Victory Crossing Shopping Center could be developed into more retail, instead of additional residential development, Williams said.

Portsmouth has access to an array of incentives to spur redevelopment, said attorney David Tynch, chairman of the Greater Portsmouth Development Corp.

"We have some of the finest and best incentive zones in Hampton Roads," Tynch said.

Williams told the council that it should establish relationships with federal entities to identify potential economic development for the city.

The council should make sure it has a representative on the governor's international economic development trips, Williams said.

He also recommended simplifying the process for developers by getting department heads together to vet projects and address potential obstacles at one time. The council plans to formalize the economic development initiative with a vote on Nov. 24 that will authorize City Manager Kenneth Chandler to develop a plan.

Chandler said he anticipated the plan would be ready by Jan. 1.

Jen McCaffery, (757) 446-2627, jen.mccaffery@pilotonline.com