THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Wednesday, February 12, 1997 TAG: 9702120455
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY JON GLASS, STAFF WRITER
DATELINE: NORFOLK LENGTH: 70 lines
Moving on two major projects Tuesday, the City Council authorized the sale of $54.4 million in revenue bonds to construct parking garages for MacArthur Center mall and voted to condemn land to lay waterline for the Lake Gaston project.
The council also reviewed for the first time a consultant's analysis of the city-run cemetery system, which includes recommendations to raise burial fees and to turn the historic graveyards into cultural attractions. Council members took no action on the $32,000 study, deciding instead to visit the cemeteries in the spring and gather more public comment.
The parking revenue bonds represent the bulk of Norfolk's $100 million commitment to construction of the $300 million downtown MacArthur Center, the largest economic development project in the city's history, officials say.
Money raised from the sale of the bonds, set to go to market today, will be used to construct two parking garages with about 4,670 spaces. The garages will be attached to the mall, scheduled to open in spring 1999.
This marks the first time the city has ever issued such bonds, which are designed to be paid off using parking fees from mall shoppers and downtown visitors, Deputy City Manager Darlene Burcham said.
Council members approved a companion measure to pledge revenue from the city's existing garages and parking lots as security for the bonds. Under this funding method, city taxpayers won't be asked to foot the bill for building the garages, officials said.
Over the 30 years of the bond issue, the annual debt on the two mall garages is expected to cost the city from $2.4 million to $3.9 million, according to documents. This year, the city's garages and lots are expected to generate $9.9 million in parking revenue, with more than half available to pay off debt. After the first full year of the mall's opening, the two mall garages are projected to raise slightly more than $4 million a year.
In action on the Lake Gaston project, the council approved the condemnation of two small tracts of land needed to bury a 42-inch water main to provide the additional water the Gaston pipeline will funnel to Virginia Beach. Norfolk agreed to take the action under a water-services contract negotiated with the Beach.
Two councilmen, W. Randy Wright and Paul R. Riddick, voted to delay action for two weeks to show their displeasure at recent criticism leveled against the city by Virginia Beach City Council members, who have accused Norfolk of working against the pipeline. Wright said Tuesday he was ``totally offended'' by a letter Beach councilman Linwood Branch III recently wrote that was critical of Norfolk City Manager James B. Oliver Jr.
``I have always supported everything that's come before this board related to Lake Gaston,'' Wright said, adding: ``Until we get an apology, I'm not going to be very supportive (in the future).''
Branch declined comment when reached by telephone Tuesday, saying his letter was intended to stop such carping.
Wright said: ``Maybe we should get President Clinton to open Camp David for us.''
The land being condemned is a 2.2-acre parcel appraised at $463,000 and a 1.1-acre piece valued at $29,000. The more expensive tract, located south of Virginia Beach Boulevard and east of Interstate 64, is owned by Koala Realty Holding Co., formerly Koger Properties. The other tract is located at 149 Kempsville Road and is owned by Louie Worrie and Norma P. Worrie.
Virginia Beach will pay most of the cost to acquire the land, Norfolk officials said. ILLUSTRATION: Color aerial photo by STEVE EARLEY/The Virginian-Pilot
Clearing continues on the downtown acreage where MacArthur Center
will be built.
KEYWORDS: MACARTHUR CENTER MALL PARKING GARAGE BONDS
LAKE GASTON PIPELINE