The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Thursday, February 20, 1997           TAG: 9702200135
SECTION: FRONT                   PAGE: A8   EDITION: FINAL 
SERIES: NHL In Hampton Roads 
SOURCE: BY ROBERT LITTLE, STAFF WRITER 
DATELINE: RICHMOND                          LENGTH:   49 lines

SENATE OKS ARENA FINANCING; MAY HELP LATER

Even as the National Hockey League's decision was being announced in New York, state lawmakers were approving a financing package for a new hockey arena in Norfolk.

With a 33-7 vote, the Senate voted to allow the state taxes generated by a hockey arena to be used to pay back the money borrowed for its construction.

Had they known about the NHL's decision, the vote might never have taken place, said Norfolk Sen. Stanley C. Walker. But the financing plan's approval should bode well for future efforts to land a professional sports team, expansion franchise or not, in Virginia, Walker said.

``A number of people have thought this thing was a long shot, so I'm not really surprised,'' Walker said Wednesday, just after the Senate adjourned for the day.

``But the bill's there. It's passed, and the financing option is in place. You have to take some solace in the fact that the General Assembly is willing to give major league sports a chance in Virginia.''

The Senate also passed a similar financing option for possible construction of a Major League Baseball stadium in Northern Virginia. An investment group lost its bid last year to attract the Houston Astros, but is pursuing an expansion team and talking with owners of other franchises about moving a team to Virginia.

Both bills must clear the House of Delegates again before being sent to the governor, who is expected to sign them into law.

The financing plans had opponents, including Virginia Beach senators who were concerned about dedicating money for hockey or baseball that would otherwise finance schools and roads.

Sens. Kenneth W. Stolle and Edward L. Schrock, both of Virginia Beach, voted against the plans - in keeping with their city's opposition to funding a downtown Norfolk arena.

Schrock said he's gotten a deluge of letters and phone calls about the hockey arena, almost all of them opposed to it. The financing arrangement would have had to clear the local governments in Hampton Roads, but plans called for each city to contribute to the arena's construction costs.

``I just don't think that is a good precedent to set,'' Schrock said. ``With all the success Virginia is having with economic development right now, you can bet that every business or employer who wants to come here is going to hear about us giving back sales and income taxes - and they're going to want the same deal.''

KEYWORDS: NATIONAL HOCKEY LEAGUE FRANCHISE EXPANSION ARENA

GENERAL ASSEMBLY


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