The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Sunday, May 19, 1996                   TAG: 9605180089
SECTION: SUFFOLK SUN              PAGE: 17   EDITION: FINAL 
SOURCE: BY TERRI WILLIAMS, STAFF WRITER 
DATELINE: SUFFOLK                            LENGTH: Medium:   88 lines

NEIGHBORHOOD AND DOWNTOWN REVITALIZATION ARE KEY ISSUES

Neighborhood revitalization and tools to refurbish downtown were top issues at last week's City Council meeting.

With outside sources drying up, city officials count on federal funds of the Community Development Block Grant program. Suffolk received $819,191, including about $42,000 unspent from last year. Residents along Nansemond Parkway and the Philadelphia-Saratoga community will be receiving money.

The Nansemond Parkway South sewer extension will get $650,000, and a street improvement on Battery Avenue in Saratoga will get $169,191.

However, a number of other programs will be considered in the city's capital improvements funding. They include:

East Washington Street water line improvements, $200,000

Brook Avenue water main upgrade, $150,000.

Rosemont water distribution line upgrade, $320,000.

While the city works to correct longstanding sewer problems, some downtown merchants are unhappy about the city's plan to do away with its special taxing district.

For the past nine years, about 200 members of the Downtown Suffolk Association have have been assessing themselves $1.41 per $100 of assessed valuation. That tax generates about $32,000 annually. City officials argue that the tax acts as a deterrent in attracting new businesses.

``Logically, the lower the tax, the more incentive,'' said City Manager Myles E. Standish. ``That's the cost of doing business.''

But several merchants assert that only property owners pay the tax and the additional monies helps them promote, educate and make improvements to downtown structures.

Leroy Edwards, chairman of the DSA, said the independent organization helps to recruit and retain new businesses. Members educate new entrepreneurs on zoning, business license fees and loans.

``In these days of taxation, everyone wants less,'' Edwards told the council. ``But in this case, that's not true. The sources of revenue are drying up. Don't let this become political.''

City officials said they hope the DSA will eventually operate as a private entity, getting most of its resources from other businesses outside the central business district. For example, Standish cited a number of businesses along Main Street, near Wal-Mart and Ryan's restaurant. Until that time, council is studying whether to continue funding DSA $43,000.

In other city business, Mayor S. Chris Jones and Vice Mayor Curtis R. Milteer requested funding for six additional police for community policing. Standish said he will report to council at the next meeting with an evaluation of the request.

Earlier this year, council authorized the city to take part in the federally funded COPS Ahead program. If the city wins approval, Suffolk will get five additional police through a city-federal funding match. Suffolk hired three officers the year before last through the COPS Ahead program, federally funded through the U.S. Dept. of Justice

The council has yet to approve its $130 million operating budget. However, a number of proposals within the budget have been approved, including a 3 percent utility hike. The increase is effective on July 1.

Council is also proposing decreasing the personal property rate by 15 cents, to $4.15 per $100. Previously, council had proposed reducing the rate by 5 cents. Because of increased revenues, officials said they could make more cuts. City begins evaluating bids for Courts Complex

Following is a list of bids for the Suffolk Courts Complex. Bidding opened Thursday. The architect's estimate for the project is $10.1 million.

Purchasing officials will begin evaluating the bids and will announce the winning one later.

Armada-Hoffler Construction Co., $10,252,900.

Branch & Associates Inc., $10,649,000.

Cleveland Construction Inc., $10,635,200.

Creative Structures Contractors Inc., $9,135,000.

Hathaway Duke Construction Co., $10,098,000.

HOY Construction, Inc., *$131,884.

W.M. Jordan Co. Inc., $10,203,000.

Shirley Construction Corp., $9,555,000.

Tompkins Builders, $10,534,000.

* Denotes that bid was compiled from the number of alternative jobs' category.

KEYWORDS: REDEVELOPMENT SUFFOLK CITY COUNCIL GRANT

by CNB