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

DATE: Sunday, August 14, 1994                TAG: 9408120264
SECTION: VIRGINIA BEACH BEACON    PAGE: 04   EDITION: FINAL 
SOURCE: BY ALEX MARSHALL, STAFF WRITER 
                                             LENGTH: Medium:   58 lines

COUNCIL REJECTS BUILDER'S PLANS FOR LAND IN PUNGO THE 11-0 VOTE WAS SEEN AS THE FIRST TEST OF THE NEW SOUTHERN RURAL DEVELOPMENT ORDINANCE.

On an 11-0 vote, the City Council refused to allow a long-time developer in the southern rural area to construct as many homes as he desired on a 16-acre tract of land in Pungo.

The vote was significant because it was the first test case of the new southern rural development ordinance the previous council passed in June before leaving office. The new law is generally more restrictive on the number of homes that can be built.

Herbert A. Culpepper, owner of Pungo Realty, asked to construct four homes on a 16-acre piece of waterfront property on Munden Point Road. Under the new ordinance, the maximum number that could be allowed was three.

``I hate to disappoint Herb,'' said Councilman John A. Baum, who represents the rural Blackwater area. ``But we can't go making exceptions when we just passed the ordinance.''

Culpepper said he planned to build homes worth $400,000 to $500,000 on what he called ``a beautiful piece of prime land.''

``I have a half a million dollars invested in this,'' Culpepper said. ``I can't make money on three lots.''

Despite his pleas, council followed the new ordinance and restricted Culpepper to three homes.

Councilwoman Barbara M. Henley noted that the new law gave Culpepper only the right to build one home. The council had the choice of allowing an additional two homes, depending on building conditions.

The council's action points out the power the City Council has in development decisions, and also why city elections can be such heated affairs of money and politics. With this small development application, the council held $2 million worth of potential homes in its hands. The council could award one home; it could award two, three or four homes. Culpepper's profit on the land and homes would fluctuate enormously according the council's decision.

The council had the option of ``grandfathering'' Culpepper's application and considering it under the old, less restrictive law, said Planning Director Robert J. Scott. But if the council grandfathered Culpepper's application, it might also have to grandfather three other previously submitted applications that would soon come before council.

Culpepper said he believed politics had something to do with the council's decision. Culpepper was a founding member of the Pungo Political Action Committee, which has campaigned against Henley. But Henley was not on the council when the new rural development law was passed.

Baum told Culpepper he would have been better off seeking to have the homes approved before he bought the land, rather than buying the land first on speculation, and then trying to get the land approved for the homes.

KEYWORDS: VIRGINIA BEACH CITY COUNCIL PUNGO

by CNB