The Virginian-Pilot
©
NORFOLK
Dissatisfied that a City Council debate on a subsidy for the proposed Midtown Office Tower was held behind closed doors, three council members say they will host a town hall meeting on Saturday to give residents a chance to voice opinions.
Council members Tommy Smigiel, Angelia Williams and Andy Protogyrou said they're holding the meeting because the council will vote on the issue Tuesday afternoon, when many residents are at work, and because the council has not debated the issue publicly.
All three oppose the $32.7 million project, an office building that would be built at Tidewater Drive and Virginia Beach Boulevard.
"We haven't heard from the public, and we need to hear from them - good, bad or indifferent," Williams said.
The council discussed the issue for 70 minutes in closed session Tuesday night. The closed session ran late, so a scheduled public session was not held.
Mayor Paul Fraim, Vice Mayor Anthony L. Burfoot, and council members Paul R. Riddick and Barclay C. Winn support the project and say it would jump-start development in a low-income neighborhood. Councilwoman Theresa Whibley said Tuesday night that she is undecided.
Burfoot said he did not know about the town hall meeting and criticized the three council members, all elected in May, for going outside the council's established system for considering development projects.
" I believe in the process and in the success we've had with our process," he said.
"If I was going to have a town hall meeting, I would at least discuss with the entire council that I want to do this, and this is why I want to do it."
The city has already signed two agreements with developer Tivest Development. When Tivest could not obtain financing to build the project last year, it asked the city to lease 60,000 square feet of office space for its human services department. The city agreed.
Then, in December, Tivest requested a third agreement, one that called for the city to lease up to 65,000 square feet of space if the primary tenant defaults. The Southeastern Tidewater Opportunity Project, a private anti-poverty agency, would lease 100,000 square feet of office space.
The council has yet to agree to that request and will vote on it Tuesday.
Director of Development Rod Woolard said the chances of STOP defaulting are min uscule. He also said the developer has agreed to allow the city to purchase the office space it rents.
Williams said the deal-breaker for her is that the city would pay an additional $400,000 a year in rent over what it is paying now to house human services when the new building opened.
"It's too much of a subsidy when we have employees who haven't had raises in years and we're facing a huge budget shortfall," she said.
Tuesday's closed-door meeting did not violate the Virginia Freedom of Information Act, said Megan Rhyne, executive director of the Virginia Coalition for Open Government.
City Attorney Bernard A. Pishko defended the closed session. "We were in there for clearly permissible reasons," he said.
Smigiel and Protogyrou, however, said much of the conversation was a political debate that could have been held in public.
Harry Minium, (757) 446-2371, harry.minium@pilotonline.com

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I hope this isnt to far out
I hope this isnt to far out there you are going to allow the city to purchase the office space that it rents. ok so since they do not own the land does this work like housing. when the developer that owns the land, because in this case Tivest will own the land, decides they want to tear down their building i guess we get to move our office spaces. or if they are no longer going to provide maintenance or upkeep what happens to these spaces that we own. just asking someone help me on that one. and what about the workforce dev.center in little creek we just paid for that. can they not add more space or floors to that.
we are going to auction off
we are going to auction off some condos downtown because they are not leased or sold. now why are we trying to go upscale again? The upscale people with upscale money are not spending it here lets work with what we have and stop spending money trying to draw in people that don't want to be here. get something going and the people will come. if the people you have are not happy then why would anyone want to move here.
this is the connection and I
this is the connection and I hope i do not have to move away for putting it out there but this is ridiculous. tivest, etheridge, burfoot, fraim, albert, jones, STOP. when you put it all together you get a new building in Norfolk and all get paid, built with city and federal funds. The three can hold this meeting however i do not belive any of them except smiegel. he is the only one that i think is not in fraims control. he others are there to watch him and what happens. all of city hall is almost under control we have the city treasurers office, city manager, not really sure but i think common wealths attorney is in the bag too, city council, the sheriffs department and if we can get rid of the police chief and put McCabe in were done.
Burfoot-Tivest-Dwight Etheridge-Curtis Etheridge Connection?
Hey, Pilot reporters - Think you could figure out for us what the connection is between Dwight Etheridge (current President of Tivest), and Curtis L. Etheridge (Burfoot's drinking buddy who got arrested for impersonating a Sheriff at a Chesapeake he was partying at with Mr. Burfoot in 2005)? Are they brothers? Same person with a name change to distance himself from his criminal record? Can't just be a coincidence, because there's a document on the City of Suffolk's web site listing Curtis as a representative of Tivest. See http://www.suffolk.va.us/bids/files/790_E_Suffolk_Rec_Comp_Addendum_No_1.pdf
City Would Provide 8% Return on Private Investment
The developer is asking for the city to guarantee payment of rent on 125,000 square feet of property at a well-above-market rate of $21/square foot. This effectively guarantees Tivest a $2.625 million ANNUAL return on their $32.7 million investement. That's basically a 8% APY being backed by Norfolk taxpayers. In an economic environment where no BANK will offer more than $1.5% on a 5-year CD, it inexcusable for any elected official to even consider supporting this deal, expecially when they've accepted substantial campaign contributions from the company in question. It's time for a recall in Norfolk.
Link to Tivest Development
The following link will take you to the Tivest Development & Construction web site:
http://www.tivesthomes.com/index.html
It's a good start but...
wait and see what comes of it before you sing their praises.
Talking the talk is one thing, walking the walk is another.
We expect you city leaders to lead by example. The very same conduct & rules you lay down for us, we want mirrored.
That means no more representing criminals, Andy!!!
There is no way you can reconcile defending scum while holding the citizens to a higher standard!
We are watching every single thing you guys are doing.
Since you wanted the spotlight positions, remember ALL of your deeds are being judged. Remember to align your actions and words according to the claims you've made. If you want people to think you're helping then don't be so quick to take up the defense of criminals.
part of our legal system
It is an integral part of our justice system that all have representation when convicted of a crime. Why would anyone criticize anyone who is actively engaged in making our justice system work?
That was definitely a red herring to throw into the conversation.
Red herring? Not at all...
Making the justice system work for who? The truly innocent or the crooks?
It doesn't sit well with me when a city leader defends crooks--especially in light of the huge developer/real estate scam & corruption going on in VB & Norfolk.
I want someone who is going to lead by example. A leader who will stretch themself to show the constituents that they aren't down with shady actions. Why take the case of a crook knowing that Taxpayers are about to go "Egyptian" over the corruption that has penetrated EVERY level of city business?
He's not just a lawyer, he was elected to represent. It's a higher standard of accountability-personally & professionally.
Ever hear the of this phrase:
If you don't stand for something you fall for anything
Building for rent
I'd like to make my proposal to the city to counter the developers offer. I have one acre in ocean view. I will offer for the rent to be a mere $5K per month for the shack in the backyard. I'll even rent out the house for only $10K per month, with grandfathered zoning you should be able to fit about 100 tenants in it. There's even some busted pipes, flooding, and a couple of crack houses around as amenities for the tenants which easily matches that of the current proposals surrounding area. Don't worry about putting the overage into the city worker's salaries and definitely don't reinvest it into supplementing the funds for educating our children. In fact I'd like for you to put it where it rightfully belongs.....light rail. thankyou