THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Friday, January 17, 1997 TAG: 9701180345
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY HARRY MINIUM, STAFF WRITER
LENGTH: 62 lines
The Hampton Roads Sports Facility Authority would begin collecting sales and income taxes from events at Scope and Chrysler Hall this summer to help pay for a proposed downtown Norfolk arena under terms of a bill to be proposed by Del. Jerrauld C. Jones.
Jones, D-Norfolk, said he would submit legislation to the General Assembly either today or Monday that would allow the taxes generated at those venues to go toward a proposed $143 million, 20,000-seat arena.
The arena would house an estimated 119 events per year. Its primary tenant would be a National Hockey League expansion team. The arena would not be built unless an NHL team comes to Hampton Roads.
There were no immediate estimates on how much tax revenue would be generated from Scope and Chrysler Hall. But officials have estimated that if the new arena opens, the three facilities would generate nearly $4.9 million annually in sales and income taxes, which would be rebated by Norfolk and the state to the authority.
Art Collins, executive director of the Hampton Roads Planning District Commission, said Jones' concept of capturing state tax revenue for a local project ``is probably a good idea.''
Jones' bill is designed primarily to make it legal for the state and Norfolk to rebate sales and income taxes to the authority, but he says it also will expand the scope of the authority.
Jones said his bill would allow the authority to issue bonds for a Major League Soccer stadium in Virginia Beach, which has been proposed for the Lake Ridge area, and a stadium for a proposed Single-A Carolina League baseball team on the Peninsula. Currently, the authority can issue bonds only for an arena designed for an NHL or NBA team.
Virginia Beach officials expressed surprise that a soccer stadium was included in the legislation. The Virginia Beach City Council will consider appropriating about $8 million for a 6,000-seat stadium later this month. The stadium might be expanded to 30,000 seats if the city is able to attract a Major League Soccer team.
``I'm not aware of that at all,'' Virginia Beach Vice Mayor Will Sessoms Jr. said when told of Jones' legislation. ``In my conversations with the soccer team owners and other council members, this has not been discussed whatsoever.
``I'm not saying it's a bad idea, but the legislators in Virginia Beach might have been a more appropriate way to address this issue.''
Nonetheless, Sessoms said he's intrigued with the idea, in part because it might lead to regional funding for the soccer stadium. The arena proposed for downtown Norfolk would be paid in part by the region's 15 largest jurisdictions.
``I can only assume the formula for funding would come from the region,'' Sessoms said. ``It would be something I would like to pursue.''
Mariners co-owner Page Johnson said he was unaware of the legislation, but said he thinks ``it's probably a good idea.'' MEMO: Staff writer Robert Little contributed to this story. ILLUSTRATION: THE PROPOSED BILL
Taxes generated at Scope and Chrysler Hall would be collected to
help pay for a proposed $143 million, 20,000-seat arena that would
be built only if an NHL team comes to Hampton Roads.
KEYWORDS: GENERAL ASSEMBLY