The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Friday, August 12, 1994                TAG: 9408100104
SECTION: PORTSMOUTH CURRENTS      PAGE: 02   EDITION: FINAL 
COLUMN: Ida Kay's Portsmouth 
SOURCE: Ida Kay Jordan 
                                             LENGTH: Medium:   84 lines

COMPROMISE NEEDS TO BE REACHED IN OLDE TOWNE MATTER

Even though Portsmouth is hurting for business and everyone wants commercial establishments that make Portsmouth more interesting, the city still has problems hitting the happy medium between residents and entrepreneurs.

Again Monday night, City Council and residents of Olde Towne reached no mutual conclusion about a proposal to permit restaurants in a historic office district along London Boulevard.

The proposal specifically has to do with a plan to couple a public restaurant with a bed and breakfast at the corner of Middle and London in the wonderful old building that once housed the Ballance Dance studios.

Olde Towne residents, who have agreed to allow tearooms in bed and breakfast establishments, oppose the change of permitted uses even though a use permit would be required to open a restaurant. The homeowners have valid objections, which deal with fears of noise and parking problems.

But the seemingly open-ended discussion that so far has not resolved anything can't go on forever.

Council referred the matter back to the Planning Commission for ``further development,'' as proposed by Councilman Jim Martin.

Since this matter does involve a specific proposed business that wants to open, the Planning Commission needs to move as quickly as possible to reach some accommodation with Olde Towne residents.

The folks who want to use the former dance studio argue that the cost of refurbishing the building is so great that they need a dinner business to stay afloat.

That argument rings true. An architect has estimated the building needs work that will cost about $200,000. The business as proposed would have five rooms for rent, an apartment for the owner and two dining rooms, each seating 20-25 persons.

So how does the city work it out?

With tearooms already permissible in the B&B ordinance, do the planners enlarge on that concept to permit tearooms to serve drinks and an early evening meal? Do they permit gift shops in B&B establishments, which would enable some space to be leased to another business to help pay the mortgage and remodeling costs of the building?

In addition, maybe council needs to consider establishing a fund to assist with rehabilitation of old structures, as suggested by the Planning Commission.

``We are at the point of losing historical and significant buildings,'' Planning Director Will Jones told council members. ``A number of valuable structures could be threatened with demolition because of the high cost of repairs.''

Jones suggested that council look at funding from a source such as Community Development Block Grants.

By lowering the cost of rehabilitation, the city could encourage new owners for some of the endangered buildings.

That sounds like a good idea. Olde Towne's original renaissance came with low-cost loans, and that has been one of the best investments the city ever made. Income and assets did not disqualify applicants from the loans.

Recently, much of the money available is used only to provide housing for low-income families. As much as Portsmouth needs low-cost housing, we can't let that be our only focus.

There must be some serious thought about finding some money for middle-income folks who can afford to maintain some of the city's larger structures that truly make Portsmouth more attractive.

Nor should all money available for apartments be set aside for those who would rent only to low-income tenants. Again, that effectively eliminates some of the large historic structures that are not very practical for low-income rentals. They must be renovated because of charm, not convenience or economy.

In addition, some assistance must be offered to small businesses willing to take risks in Olde Towne and other important commercial areas of the city.

The Planning Commission has recommended that the city do this.

The next move on that is up to City Council.

Meanwhile, the council has sent the restaurant zoning back to the planners to resolve an issue that has been going round and round since the proposal to use the building was made in January.

As a citizen said at a meeting last week, let's get on with something. MEMO: Whether you agree or disagree, The Currents would like to hear from you.

Send your thoughts to The Currents, 307 County St., Suite 100,

Portsmouth, Va. 23704-3702, or fax us at 446-2607. by CNB