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

DATE: Wednesday, October 16, 1996           TAG: 9610160002
SECTION: FRONT                   PAGE: A14  EDITION: FINAL 
TYPE: Opinion
SOURCE: By WILLIAM E. WARD 
                                            LENGTH:   81 lines

CONFERENCE CENTER IS NEEDED

The recent series of articles in The Virginian-Pilot concerning the proposed conference center for the city of Chesapeake has prompted this response. I feel this is necessary in order that our citizens will not be misled into believing that the conference center is anything other than what it is: a much-needed and desirable public amenity that was legally and fairly procured by the city and the Industrial Development Authority. I also believe it is important to remind the writers and publishers of this newspaper of their obligation to deal with issues in a fair and responsible manner, which has not been done in this case.

Much has been written about the bid process that was followed by the IDA, and while the reporter knows that he cannot say that anyone acted illegally or improperly, the articles have been cleverly written in order to raise an insinuation that Armada/ Hoffler officials have somehow influenced the process to the company's benefit. At this point, I think it is important to note that in all of the many interviews regarding this issue, everyone, including city, IDA and Armada/Hoffler personnel, have been forthright, open and accessible to the news media. All requested documents have been furnished and many others voluntarily given to the reporter in an effort to get the truth out. I know this is true also with regard to Armada/Hoffler, which is not subject to FOIA disclosure requirements, and your reports show that a total of five officials with that company have made themselves available to the reporter who prepared these articles. Is this openness indicative of someone trying to conceal an improper course of conduct? Basic human instinct tells one that it is not. Also of significance is the fact that the IDA's May 1 minutes contained a statement regarding Tom Lyons' ``concern'' regarding a perceived ``appearance of impropriety'' in his earlier discussions for a proposed conference facility. Why would IDA officials openly discuss such an issue and reflect the same in its minutes if there was anything to hide? Again, this is reflective of candor and honesty, not shady dealings, as the reporter would have you believe.

The conference center project is basically a lease by the IDA from the developer, with an option to purchase granted to the IDA. There is no law that requires the bidding of lease arrangements, as the Virginia Procurement Statutes apply only to the purchase of goods and services. The IDA legally could have negotiated with Armada/ Hoffler or any other developer to lease a conference facility such as this. Nevertheless, the IDA chose to follow standard procurement procedures in an effort to obtain competitive proposals, thereby achieving the lowest price and stimulating competition. The IDA exceeded what is mandated under procurement laws. Bids for this proposal were advertised in two major newspapers and e-mailed to 10 companies known or believed to handle such projects.

Much has also been written about the involvement of Armada/Hoffler officials in the writing of the request for proposals, which is basically the document that informs potential bidders as to what is being solicited. The obvious implication raised by the reporter is that this somehow played to the advantage of Armada/Hoffler. First of all, anyone who reads the RFP can easily see that it does not favor or give an advantage to anyone. It is a typical ``boilerplate'' RFP which asks for proposals for ``the leasing of a Conference/Civic Center to be located in the City of Chesapeake.'' It generally sets forth the size requirements of the facility, requests legal, financial and other descriptive features of the bidder and establishes the selection process that will be followed, and the submission deadline. Economic Development Director Don Goldberg and Armada/Hoffler personnel have said without reservation that informal advice was requested in the development of the RFP. Neither Mr. Goldberg nor anyone else employed by the city or IDA has ever written an RFP for a conference center, and it is not unusual, illegal or improper to gather advice from various outside sources, including others besides Armada/Hoffler, as was done. Again, this in no way provided any particular advantage to any company. It was simply done in order to properly describe what has been sought by the IDA.

What bothers me the most about this entire episode is that The Virginian-Pilot has needlessly damaged the reputations of members of the IDA, the City Council, the Department of Economic Development, the city attorney's office and officials of Armada/Hoffler. Unfairly making the implication that all of these people were somehow engaged in improper activities not only affects their credibility but erodes the confidence that our citizens have in their government. This is unfortunate and disappointing, and hopefully the enormous influence this newspaper carries will be exercised in a responsible and fair manner in the future. MEMO: William Ward is mayor of Chesapeake. by CNB