THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, September 11, 1996 TAG: 9609110461
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY MAC DANIEL, STAFF WRITER
DATELINE: CHESAPEAKE LENGTH: 66 lines
By a 7-2 vote, the City Council on Tuesday approved a conference center, despite pleas that it was the right multi-million dollar project at the wrong time.
To fund the project, the council also voted 7-2 to raise hotel and meal taxes.
The approvals came even though the city is facing tough financial times over the next two years.
Supporters said the conference center will meet the city's need to have a large meeting hall as well as help lure new businesses to Chesapeake.
The 51,000-square-foot conference center, to be built at Green-brier Circle and Sara Drive, will have room for 1,300-seat banquets and 2,500-seat theatrical performances, according to city staff.
The lodging tax was increased from 5 percent to 6 percent, while the meal tax went from 5 percent to 5.5 percent.
Those opposed to the venture, including Councilmen Alan P. Krasnoff and John M. de Triquet, said the facility was an extravagance when the city should be conservative with its spending.
With a $400 million capital budget and multi-millions in interest payments, de Triquet said the conference center was neither essential nor critical for the city.
``I don't think that's the way we leverage ourselves into success,'' he said.
The proposed facility in the city's Greenbrier section will be built as a private-public partnership between the city, its Industrial Development Authority and local builder Armada/Hoffler.
Plans call for Armada/Hoffler to build the facility on land it owns at a cost of about $9 million. The city, through the Industrial Development Authority, will lease the building from Armada/Hoffler for $880,971 annually for 30 years.
The city has the option to buy the facility within the first 12 months for $8,995,000. The agreement also allows the city to consider buying the facility at the beginning of every calendar year until the lease expires. Neither council nor city staff discussed the price of the facility if bought between the second and 30th years.
But if the city buys the building at the end of the lease, the purchase price will be $100. But by then, the city will have paid an estimated $26.4 million in rent over 30 years.
Local merchants and citizens spoke for and against the tax hikes. Two owners of Western Branch restaurants protested being taxed for a facility from which they will likely get no business.
``Don't place the burden of financing this convention center on the backs of my customers,'' said Gary Barlow, the owner of Frank's Truck Stop in Western Branch.
Others said the city should spend the money on more important priorities such as schools, road improvements or recreation centers.
``I don't think this is a unique venture,'' said de Triquet. ``I think it's a wannabe attitude.''
The conference center's price increased slightly Tuesday night after pre-cast concrete was added to the front of the building. That addition caused the annual rent to jump from $867,300 to $880,971. ILLUSTRATION: Color photo by Mark Mitchell\The Virginian-Pilot
Repairs to streets with poor drainage in Portsmouth are an example
of a partnership between the neighborhood and City Hall/B3.
KEYWORDS: CHESAPEAKE CONFERENCE CENTER by CNB