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

DATE: Wednesday, March 1, 1995               TAG: 9503010478
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY MIKE KNEPLER, STAFF WRITER 
DATELINE: NORFOLK                            LENGTH: Short :   45 lines

PANEL'S AWARD OF $2.66 MILLION BEING REVIEWED

Circuit Court Judge John E. Clarkson said Tuesday he found no evidence of collusion when a citizens panel awarded $2.66 million to an East Ocean View landlord in a property-condemnation case that may affect city plans to revitalize the area.

But Clarkson left open the possibility that some of the five panel members may have misunderstood his instructions and inappropriately awarded the amount to Richard M. Kelly. He also said he may have erred in allowing some possibly prejudicial testimony during the initial mid-January trial.

The judge spent more than two hours questioning the panelists individually about how they decided the value of a 102-unit apartment complex at 4215-85 E. Ocean View Ave. and 9615-85 23rd Bay St. The property is in an important 90-acre redevelopment tract overlooking the Chesapeake Bay.

The $2.66 million award could delay the Norfolk Redevelopment and Housing Authority's plans to acquire more property there any time soon. The agency has only $9 million of the anticipated $27 million to $35 million start-up costs for the project.

Clarkson said he was impressed with the sincerity and hard work of the panelists, but he voiced concerns.

For example, the judge said some panelists seemed to believe, contrary to trial evidence, that the city assessor's office and the housing authority unfairly collaborated to depress property values.

The redevelopment authority maintains the Kelly property is worth only $1.3 million. The agency wants Clarkson to reverse the panel's award and order a new condemnation hearing.

Howard W. Martin Jr., an attorney representing the redevelopment authority, contended there were several instances where panel members relied on improper evidence or did not follow the judge's instructions.

Carter R. Anderson Jr., an attorney for Kelly, accused the redevelopment lawyers of twisting the comments of panelists.

Clarkson gave the lawyers until March 27 to submit final arguments. He said he also will review the panelists' remarks. He did not set a date for rendering his decision. by CNB