The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Wednesday, January 11, 1995            TAG: 9501110458
SECTION: LOCAL                    PAGE: B4   EDITION: FINAL 
SOURCE: BY TONI WHITT, STAFF WRITER 
DATELINE: PORTSMOUTH                         LENGTH: Medium:   55 lines

PORTSMOUTH COUNCIL VOTES DOWN INCREASE IN REAL ESTATE TAX

The City Council on Tuesday killed a proposed 4-cent real estate tax increase that was to be set aside for economic development.

After hearing testimony from six opponents during two public hearings, the council voted 6-1 against the tax increase. Councilman Cameron C. Pitts opposed the majority.

Two citizens told the council that it should consider raising taxes on boats docked in Portsmouth, before increasing their real estate taxes.

The council, three years ago, cut the city's tax rate on boats to 1 cent in an effort to attract boaters to Portsmouth.

While the council quickly decided to defeat the real estate tax increase, it agonized over its proposed $8 million building budget. The council finally decided to defer the vote until Feb. 28 so that it could hold additional work sessions.

Several council members said they also wanted a chance to get public comments on the city's new economic development plan created with Ray Gindroz, an urban design consultant.

Council members said they want to look for ways to dedicate more of the $8 million building budget toward economic development.

City Manager V. Wayne Orton had recommended that the council dedicate $500,000 toward economic development in addition to the $1 million that would have been generated by a 4-cent tax increase.

The council also began having second thoughts about some ideas that residents pitched to them last month.

After a group asked then that a new stadium be built at Wilson High School, the council considered pulling $1 million from other projects - including money designated for the Fire Department, parks and recreation, and the city's cable television channel.

On Tuesday, residents who live near the high school opposed the new 3,500-seat stadium for Wilson. They complained that it would be too noisy, would present parking problems and would create too much pedestrian traffic through the neighborhood.

One Wilson student, Nathan Downey, said the $1 million proposed for the stadium could better be used to improve the heating and air-conditioning system in the school.

Lloyd Beazley, president of the Portsmouth Firefighters Union, cautioned council members against using money that had been earmarked for a new fire engine to build the ball field.

``We have some of the most worn-out equipment of any city,'' Beazley told the council, adding that two engines had nearly failed to start during emergency calls.

``We've stretched as far as we can stretch. Fire apparatus is more important than any football field or any I.C. Norcom.'' by CNB