DATE: Wednesday, July 2, 1997               TAG: 9707020545

SECTION: LOCAL                   PAGE: B11  EDITION: FINAL 

SOURCE: BY JOHN MURPHY, STAFF WRITER 

DATELINE: VIRGINIA BEACH                    LENGTH:   60 lines

BEACH REZONES PARCEL TO ALLOW COMMERCIAL PROJECT IN KEMPSVILLE RESIDENTS OF NEARBY BELLAMY PLANTATION WANTED THE 15 ACRES TO STAY RESIDENTIAL.

Planners say a healthy city needs a proper balance of homes and businesses.

In Virginia Beach, the ratio is tilted too far toward houses, officials say, with more than 80 percent of the city's real estate tax base coming from residential property.

Tuesday, the City Council bucked some local criticism and approved a commercial rezoning in an effort to generate more business revenue.

The council gave permission for a $5 million medical complex, retail office space and a 450-seat family restaurant on 15 acres of formerly residential land.

The project, on the southwest corner of Lynnhaven Parkway and Salem Road, drew sharp criticism from six residents of upscale Bellamy Plantation.

The residents said they worried that commercial development nearby would depreciate the value of their homes, increase traffic on their streets and cause drainage problems.

``This project may be good for tax purposes, if that's what you want,'' said Rodney Voelker, a member of the neighborhood civic league.

``But once you put commercial property up against expensive homes, they will depreciate in value.''

Waving a petition against the development, Angelica George said the family restaurant would bring ``rats and grease'' to the neighborhood.

She reminded council members: ``We are the ones who know. We live there.''

The council voted, 8-2, to change the zoning of the property from residential to commercial, clearing the way for the three-building project. Mayor Meyera E. Oberndorf and Councilwoman Reba S. McClanan voted against the proposal. Councilman William W. Harrison Jr. was absent.

Louisa M. Strayhorn, councilwoman for Kempsville Borough, where the project will be built, supported it.

She argued that the developer had designed a high-quality project that would set a standard for future development.

And, she said, the business would ease the tax burden on homeowners.

One of the goals of the city's comprehensive plan for future development, released last week, is to diversify the tax base by encouraging more businesses. Planners would like to see about 30 percent of the city's real estate taxes come from businesses, which, unlike most homes, generate more in taxes than they require in city services.

Currently, businesses make up just under 20 percent of the city's $19 billion real estate tax base.

Robert S. Miller III, engineer for the development, said the 32,000-square-foot medical building is to open next June.

An insurance office and a Wood Grill restaurant are to follow.

Developers originally planned to construct a mini-warehouse and gas station on the 15-acre site. Concerns of residents and city officials sent them back to the drawing boards.

Miller predicted controversy over the project would cool down once it is complete.

``You can't make everybody happy,'' he said. ``But we've made a lot of changes to make people happy.'' KEYWORDS: REZONING

Send Suggestions or Comments to webmaster@scholar.lib.vt.edu