The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Wednesday, May 8, 1996                 TAG: 9605080419
SECTION: FRONT                    PAGE: A1   EDITION: FINAL 
SOURCE: BY TONI WHITT, STAFF WRITER 
DATELINE: PORTSMOUTH                         LENGTH: Medium:   84 lines

PORTSMOUTH GIVES HOLLEY A 2ND CHANCE HIZONOR IS BACK IN MAYOR'S SEAT

James W. Holley III, a proud man driven out of office amid scandal nine years ago, won public redemption Tuesday by taking back the mayor's mantle.

He defeated two-term incumbent Gloria O. Webb by taking 48 percent of the votes cast to her 40 percent. A third candidate, Frank A. Harte, pulled 12.5 percent of the vote.

Holley was jubilant.

``Am I happy? Hell yes,'' Holley shouted at his crowd of supporters.

He called for ``unity of black, white and yellow, rich and poor, young and old to come together to rebuild the city,'' under his leadership.

``This is a most historic occasion for Portsmouth and its people,'' Holley said. ``We have taken the government and brought it back to the people.''

Holley left office in December 1987, as one of the city's most reviled politicians. He was recalled in a special election after running through the City Council's entire travel budget and being implicated in a divisive hate-mail scandal.

Holley has always denied a role in the hate mail, saying his fingerprints were found on only two of the 48 items sent to those who opposed the closing of the old I.C. Norcom High School.

He has admitted spending lavishly in trips as mayor to bring business to Portsmouth and promised not to repeat past mistakes.

Twice since the recall, he ran unsuccessfully for public office, barely earning any public support.

But the mood had changed for this campaign. A number of people who had once led recall efforts against him became his supporters.

Holley stressed his ability to bring business into Portsmouth. He promised to recruit retail jobs, industry and small business. He evoked memories of the boom times when he had presided over the city.

It was exactly what citizens said they wanted.

Economic development was the top issue on the citizens' agenda. A number of citizens said more good jobs would help Portsmouth solve crime and education problems and boost the city's image.

And the public seemed ready to forgive or discredit the earlier troubles.

Several citizens said Tuesday that they felt that Holley had been ``set-up'' in the hate-mail scandal.

``I don't think he was given justice,'' said the Rev. George Hicks, who was voting at the Cavalier Manor precinct. ``They railroaded him. I feel like he needs another chance.''

Harte's presence in the race - he was expected to pull much of his votes from Webb - may have propelled Holley to victory.

Webb had served the city during its toughest times - immediately after the Holley's recall and through the recession. She stressed that the city was finally on its way to economic recovery and said she wanted to help lead it during the resurgence.

``I've had 16 good years on the council,'' Webb said. ``I'm going to concentrate on being a grandmother now. I hope the council can carry our vision forward.''

Holley's election may cloud the future of Portsmouth's economic development plan. Holley had been critical of the plan, known as``Vision 2005.'' He said he liked some elements, but that he would incorporate other ideas.

Vision 2005 is an economic development plan that involves citizens and city government working together to improve some of Portsmouth's oldest areas. The plan is designed in its first stage to improve five areas, including the downtown, midtown, Scott's Creek area, High Street corridor and the Effingham/Elm corridor.

The plan is designed to bring private and public interests together to attract business and to build festival areas, marinas and market places. MEMO: Staff writer Ida Kay Jordan contributed to this report

ILLUSTRATION: Color photo by LAWRENCE JACKSON, The Virginian-Pilot

Mayor-elect James W. Holley III raises his hand in celebration.

Photo by MARK MITCHELL, The Virginian-Pilot

Portsmouth Mayor Gloria O. Webb talks to her supporters at the

Ambassadors Club in Portsmouth after her defeat by James W. Holley

III. With her are James Benn III, left, and James Hawks, who lost

his City Council seat.

KEYWORDS: PORTSMOUTH CITY COUNCIL RACE PORTSMOUTH MAYOR'S RACE

ELECTION RESULTS by CNB