$40M deal to buy old rail line may come with light-rail strings

VIRGINIA BEACH

A year and a half after announcing a $40 million deal to buy an old rail line for a possible light-rail project, city officials are working frantically to finalize the agreement.

But a politically awkward issue remains to be resolved before the Sept. 24 deadline for the sale: Will the state require that the 10.6-mile corridor owned by Norfolk Southern be used for a light-rail project as a condition for releasing $20 million in grant money to buy the property?

That requirement could commit the city to pursuing light rail while officials have repeatedly said the corridor could be used for any kind of transportation project, including a bus rapid-transit system or a limited-access road.

It could undercut the city's consistent message that no decision on light rail will be made until a $5.7 million study is finished next year. It could also make the debate about whether the city should hold another light-rail referendum moot.

The City Council has not taken an official stance on light rail. Voters rejected it in a 1999 referendum.

Under the 2009 agreement to buy the corridor paralleling Interstate 264 between Newtown and Birdneck roads, the state would put in $20 million, the city would pay $10 million, Hampton Roads Transit would contribute $5 million, and the remaining $5 million would come from a utility easement on the property.

A spokesman for VDOT, the agency managing the $20 million grant, said Wednesday that legislation ties the money to a light-rail project. Later in the day the VDOT spokesman, Jeffrey Caldwell, softened that stance and said, "The nature of the project, whether it's a rail project or a bus rapid transit or some other type of project, is still being worked out, and that decision will be made through discussions with the city."

City Attorney Mark Stiles said, "We're still working it out." He said the plan is to publicly air the agreement Tuesday and that the City Council would vote on the transaction Sept. 14.

Councilman Jim Wood, former HRT board chairman, said the state would "short-circuit the process" by requiring a light-rail project.

"My assumption was the state money was for acquisition of the right of way and there weren't any strings attached," he said. "It's one hand not knowing what the other hand is doing. It's, unfortunately, an inefficient way to do business."

Mayor Will Sessoms, a light-rail proponent who's led negotiations acquiring the Norfolk Southern property, declined to comment.

The discussion has gone all the way to Gov. Bob McDonnell's office.

"The terms and conditions under which the funds will be provided are currently being developed," said McDonnell spokesman Tucker Martin. "We anticipate completing our negotiations with the City of Virginia Beach shortly. The funds will be provided to ensure this necessary project moves forward."

The legislation that authorized state funding though VDOT's Transportation Opportunity Partnership Fund said the money is for the "expansion of the Norfolk Light Rail System."

The author of that legislation, Del. Bob Tata, R-Virginia Beach, said it was his intention that the money be used for a light-rail project.

"My intent was to get rail so the rail in Norfolk doesn't become a rail to nowhere," he said. "Without the extension in Virginia Beach, you can't print enough money to keep that thing running. It's such a perfect match."

Aaron Applegate, (757) 222-5122, aaron.applegate@pilotonline.com