Bill would make it cheaper to buy subaqueous land

VIRGINIA BEACH

A change in how the state values certain waterfront property could benefit one of the city's largest real-estate taxpayers but could complicate city beach replenishment projects.

Legislation that would make it easier for property owners, including developer F. Wayne McLeskey, to claim the rights to neighboring land that was once underwater is sailing through the General Assembly. Under current law, property known as subaqueous land, which has been filled over the years through dredging projects, can be purchased from the state at a quarter of its assessed value.

The proposed changes would allow adjacent property owners to buy the land from the state for a small administrative fee. Similar bills have been introduced in the General Assembly in recent years, aimed at helping to clear issues related to waterfront property, including some McLeskey owns in Norfolk's Fort Norfolk neighborhood.

"It's a property rights issue," said Del. John Cosgrove, R-Chesapeake, a sponsor of the bill. In most cases, hundreds of property owners have been paying taxes on the filled land without realizing that the state owned the underlying rights, Cosgrove said.

Sen. Frank Wagner, R-Virginia Beach, who has sponsored the same bill in the Senate, agrees.

Wagner and Cosgrove said they have both spoken to McLeskey, who is supportive of the bill, but didn't introduce it on his behalf. McLeskey did not return calls for comment.

McLeskey is the 11th-largest taxpayer in Virginia Beach, according to city records, and a prominent contributor to Republican campaigns. McLeskey, his wife and company have given more than $365,000 to Republicans in the past 15 years, according to the Virginia Public Access Project, which tracks campaign contributions.

Virginia Beach officials say they have no concern about the proposed legislation's impact on property outside of the city limits.

But the proposed legislation could make Virginia Beach's sand replenishment projects more difficult, said Chris Boynton, a city attorney.

There's no exemption for state-owned bottomland filled by city beach replenishment projects. If city taxpayers pay for beach replenishment projects, the land should be public and shouldn't be available for a quick purchase by an adjacent property owner, Virginia Beach officials argue.

"As it's written, it's very broad," Boynton said. "We didn't intend to interfere with anything happening outside the city of Virginia Beach."

The city has asked Cosgrove and Wagner to consider some changes to their bills, Boynton said.

In the past, attempts to make it easier for private landowners to acquire state bottomlands have met with resistance from legislators.

Del. Harvey Morgan, R-Gloucester, said last week that he has frequently opposed attempts to give away the land, some of which are expensive parcels.

"The citizens own these lands," Morgan said.

When the bill came to his committee, Morgan opted not to vote on it. It still passed and has the support of Gov. Bob McDonnell's administration.

"It's not intended to help any single property owner," said Jeff Caldwell, a spokesman for McDonnell.

Pilot writer Joanne Kimberlin contributed to this report.

Deirdre Fernandes, (757) 222-5121, deirdre.fernandes@pilotonline.com