THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, March 6, 1996 TAG: 9603060606
SECTION: LOCAL PAGE: B7 EDITION: FINAL
SOURCE: BY TERRI WILLIAMS, STAFF WRITER
DATELINE: SUFFOLK LENGTH: Medium: 95 lines
This city is a lot like a big family that just learned triplets are on the way. Suffolk, already strained by demand for its services, is finding it increasingly tough to support newcomers.
Houses are sprouting rapidly in the corridor near the Portsmouth and Chesapeake borders, and more development is on the way. Modest prices for big lots near quiet farmland and major highways are driving demand, developers and city officials say.
Residential building permits have climbed constantly in the past six years: 500 in 1993; 785 in 1994; and 883 in 1995.
Residents in outlying areas have complained for years about the paucity of city services such as water and sewerage. With the boom, officials are debating how to meet the increasing demands.
This tension over managing growth is leading to litigation.
Two subdivisions were stalled recently because the Planning Commission said the city couldn't afford them. The developers have appealed to Circuit Court.
Bayberry Associates wants to develop Bayberry Cove, with 164, 15,000-square-foot lots off Shoulders Hill Road, in northern Suffolk. BGA Richneck, L.L.C., plans Cypress Farm, with 157, 10,000-square-foot lots at White Marsh Road and Chippewa Drive.
The commissioners said the subdivisions would have a ``negative fiscal impact'' on the city, court documents show.
But some city officials say it's not about money; the subdivisions already meet the code requirements.
``Those two subdivisions were properly zoned for those uses,'' said Planning Director Paul E. Fisher, ``I know why we want to do the fiscal impact analysis, but in Virginia and other places, if you have the proper zoning, you have by right (authority) to do it.''
Development leaders aren't surprised by the conflict.
``The city of Suffolk, along with the associated counties, aren't up to speed due to budget contraints,'' said President Albie E. Viola of the Tidewater Builders Association.
``The choice is to try to delay development.''
The developers and the Planning Commission refused comment. But documents show that Planning Department staffers recommended that plats of both subdivisions be approved because they met all zoning requirements.
The commission, which makes recommendations to the City Council, said the subdivisions would burden the city.
To meet fiscal-impact requirements, a development must be assessed for how much revenue it will create for the city, said Suffolk Finance Director M. Christine Ledford.
Bayberry Cove could generate $377,750 in real estate and other taxes, permit fees and other costs.
But the development would cost the city $51,401 for one year's fire, police and other city services, according to a memo from Ledford to Planner Yolanda Hipski. After paying debt service for projected schools and utilities over the 20-year life of construction bonds, Suffolk would gain a total of $54,766 from the project after 20 years.
Cypress Farm could generate up to $313,143 annually, but the development would need $93,335 from the city each year. . After debt service on 20-year bonds, Suffolk would gain a total of $3,945..
But Ledford said a fiscal analysis is merely a guideline for officials, ``it's not the gospel.''
These are among the pressures the city faces:
The population, now about 54,000, is expected to nearly double by the year 2010.
Schools are on a catch-up course, and enrollment is rising. A new elementary school will open next fall in the Harbourview area, and three elementary schools, a fourth middle school and a third high school are planned by 2003.
City officials acknowledge they need to manage growth.
``We're studying the tools needed,'' said Assistant City Manager William E. Harrell. ``But you have to have a comprehensive plan in place.''
Officials are studying a cash proffer system, in which developers could be asked to make donations to the city to offset the impact on services.
City officials are also studying ways to charge developers for utility connection fees.
Viola said the Builders Association supports a broad-based fee assessed to all homeowners instead of only new residents.
City staffers also are preparing for a Comprehensive Land Use Plan, a blueprint for future development. Citizens will be part of those meetings, but no dates have been set.
The issue of managing growth is nothing new to cities like Chesapeake and Virginia Beach. In Chesapeake, developers pay up to $6,000 per unit to offset demands. The proffer system has been in place since 1989.
Last year, the Chesapeake City Council tried to get General Assembly approval to impose $3,000 in fees for every new home built in the city.
That money would have been used to offset the impact of those new homes on schools, roads, utility lines and other city services. The bill was killed in committee. MEMO: Staff writer Katrice Franklin contributed to this report.Staff writer
Katrice Franklin contributed to this report. by CNB