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

DATE: Thursday, April 13, 1995               TAG: 9504130390
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY IDA KAY JORDAN AND TONI WHITT, STAFF WRITERS 
DATELINE: PORTSMOUTH                         LENGTH: Medium:   73 lines

PORTSMOUTH DEFERS DECISION ON FUTURE OF CHURCHLAND HIGH SITE DEVELOPERS ANGERED OVER PROPOSAL FOR SHOPPING CENTER.

The City Council has deferred a decision on what to do with the old Churchland High School, a site that has been targeted for a shopping center.

Developers of two other shopping centers near the old school threatened to sue the city if it tried to transfer the land to its Industrial Development Authority and begin the process of rezoning the site for a shopping center.

The council voted 5-2 early Wednesday to defer its decision until April 25 so the city attorney can research the legal issues.

J.F. Livesly, a lawyer who also is an owner in the Academy Crossings Shopping Center, told the council that transferring the land would violate the city charter. He said opponents would ``use every means'' to stop the city from building the new shopping center.

One of the questions that must be answered is how many council members it will take to approve transferring the land to the Industrial Development Authority. According to the city code, three-quarters of the council must approve such a transfer.

The problem is whether you can round off a councilman for that number or whether you must exceed the mathematical 5.24 votes.

The opponents contend that the council must vote 6-1 to approve the land transfer. The city staff has said it will take only five votes.

Some city officials fear that the delay may be enough to prevent the retailers from coming to Portsmouth.

City Manager V. Wayne Orton said the owners of Caldor, one of the largest discount stores in the country, and Hannaford Brothers Supermarket have been making a push to come into Hampton Roads. He added that if the council delays, the stores might go to another area city.

``The economic development staff has gotten in touch with developers,'' Orton said. ``We have kept them informed, and we will ask them to have a direct and public conversation with City Council to answer their questions.''

Philip Tuning, a member of the economic development team, said: ``We feel at this point the delay doesn't adversely affect us.

``We've been sensitive to the community needs,'' he added. ``We're trying to work with the community and the developers to come up with a solution.''

The project would create about 450 full- and part-time jobs, and the shopping center is expected to bring the city about $542,000 in annual tax revenues.

Laurie A. Gellman, a resident of Woodbine, urged the council to defer action Tuesday, calling the site near her home, ``the best piece of Portsmouth.''

``We can't afford to waste it for a cash fix,'' she said.

Gellman sat with other residents of Woodbine but she was the only person from the residential neighborhoods who spoke.

Arnold Leon, an owner of Churchland Shopping Center, said ``the city can't handle additional retail.''

``Portsmouth is overshopped,'' Leon said, adding that he has trouble keeping the space in his shopping center leased. ``I've never filled it in 10 years.''

Leon suggested that the proposed shopping area be ``put in MidCity.''

``Churchland is a neighborhood market, and the neighborhood business can't stand massive competition,'' he said. ``The city is encouraging stores to come in that the city can't support.''

During Tuesday's council meeting, Orton spoke sharply: ``I think Mr. Leon is more clever than convincing.'' Orton said he is convinced that bringing in new business will help those that are already there.

``I'm comfortable with my recommendation, and I believe that this is good for the city,'' Orton said Wednesday. ``Many citizens have expressed their desire to have this. Since this project is consistent with council's goals and objectives, I'm confident it will be approved.''

KEYWORDS: PORTSMOUTH CITY COUNCIL ECONOMIC DEVELOPMENT by CNB