THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, October 1, 1995 TAG: 9510010030
SECTION: LOCAL PAGE: B2 EDITION: FINAL
SOURCE: BY ALEX MARSHALL, STAFF WRITER
DATELINE: NORFOLK LENGTH: Medium: 82 lines
An angry group of citizens told Mayor Paul D. Fraim Saturday that if they were expected to support Nauticus financially, then they wanted a more cooperative and inclusive city government.
To avoid another financial bailout of some future big project, citizens at the breakfast proposed several changes in how their government operates. They also suggested ways that Nauticus might be re-funded without relying so heavily on the general taxpayer.
Last week, the City Council acknowledged that it was considering supplementing Nauticus' budget with taxpayer funds.
Under one proposal, the city would pay off Nauticus' principal loan over 20 years, an average of $2.6 million annually. Nauticus would pay back the city over 35 years, an average of $1.6 million a year. Although the city would be repaid eventually, taxpayers initially would make up the difference, about $1 million a year for the first two decades.
Al Horton, a former City Council candidate, suggested the city set up a special tax district around downtown to pay for projects like Nauticus. Under this plan, businesses and properties within a specified area would pay a higher tax rate than other parts of the city. The extra money raised would go to fund projects or services within downtown.
``That might be a good idea,'' Fraim said. ``We've talked about making the downtown a special tax district.''
Several cities around the country, including Philadelphia, have used special tax districts in downtowns. Often they pay for extra services like additional police or more street cleaning.
Saturday's meeting at Uncle Louie's Restaurant at Wards Corner was an impromptu event arranged principally by the Norfolk Federation of Business Districts. In addition to civic league leaders and business people, several past and present candidates for council and General Assembly offices were part of the gathering of about 50.
Over eggs and potato pancakes, citizens challenged Fraim to explain why they should support Nauticus and what good the project did them.
Citizens were not amenable to the argument that Virginia Beach is paying the debt service and other costs of the Virginia Marine Science Museum - an average of $3 million a year for 20 years - without any expectation of being paid back.
``Virginia Beach is not Norfolk,'' said Bill Thomas, one of the organizers. Councilman Herbert Collins, who also attended, said Virginia Beach was richer than Norfolk and could afford such projects more easily.
Other questions or suggestions raised at the meeting included:
Should Norfolk do more to help other business areas of the city, like Church Street or Wards Corner?
Would the proposed MacArthur Center mall, with almost $100 million in loans and spending behind it, put the city at risk for another big debt?
Why shouldn't people have the right to vote big spending projects up or down in referendums?
``You get to vote for elected city officials,'' Fraim said. ``That's how it works.''
Fraim repeated arguments that Nauticus, even if attendance was below projections, was helping revive downtown and was part of a larger package of downtown amenities and projects. Fraim said the new funding plan on Nauticus was conservative in its estimates, and that citizens might end up paying less than projected.
At the end of the meeting, people broke into three groups to discuss ideas for citizen action. They included a citizens' study of downtown, the right to referendums on big spending projects, and the televising of City Council meetings.
Later Saturday, Fraim and other council members met with civic league leaders at a picnic at the Virginia Zoo at Lafayette Park.
The City Council is set to consider the proposed funding plan for Nauticus at its meeting Tuesday. ILLUSTRATION: Photo
GARY C. KNAPP
Carolyn Zemanian, 4, plays under a parachute at the civic league
picnic at the zoo at Lafayette Park Saturday. The picnic followed a
meeting in which residents told Norfolk Mayor Paul D. Fraim that if
the city bailed out Nauticus, they wanted a more cooperative city
government.
by CNB