
DATE: Wednesday, October 22, 1997           TAG: 9710220545

SECTION: LOCAL                   PAGE: B1   EDITION: FINAL 

SOURCE: BY NANCY LEWIS, STAFF WRITER 

DATELINE: NORFOLK                           LENGTH:  129 lines

CORRECTION/CLARIFICATION: * An illustration of Old Dominion University's planned expansion that appeared on the front of the Hampton Roads section Wednesday showed the east side of the street. The location was incorrectly identified in a caption. Correction published Thursday, October 23, 1997 on page A2 of THE VIRGINIAN-PILOT. * THE PRICE OF PROGRESS ODU EXPANSION WOULD PUT A SQUEEZE ON SMALL BUSINESSES

Jeff and Kimberly Sniffen's lucrative new business is in danger of going under, and it's the source of their success that's at the heart of their suffering.

The couple went $100,000 in debt to refurbish and furnish their restaurant, Old Dominion Coffee House, which opened a year ago across Hampton Boulevard from Old Dominion University. Now, the Sniffens say, they face huge losses because of the state school's expansion plans.

``You put your heart and soul into something, and the city comes along . . restaurant.

The Norfolk Redevelopment and Housing Authority is poised to start buying and possibly condemning properties as the university proposes to leap across Hampton Boulevard to enlarge. Moving ahead with the proposed project depends upon approval from the Planning Commission, NRHA's board and the City Council.

The three panels will hold a joint public hearing Nov. 25 at an evening City Council meeting. Two public information sessions will be held Nov. 5 and about a week later at an undetermined time and place.

Shurl Montgomery, an assistant city manager, said Tuesday that issues expected to come under consideration include relocation of residences and businesses in the targeted area.

Within the next decade or so, the university plans to grow by 50 percent of its present size.

Specifications include a shopping center anchored by a supermarket, high-tech apartments wired into the university's computer network and a pedestrian-friendly ``Main Street'' with awning-shaded storefronts and sidewalk cafes.

The centerpiece of the plan is a $40 million convocation center flanked by high-rise parking garages. The 10,000-seat convocation center would occupy two blocks, from 43rd to 45th streets.

The university can't move westward because of the Elizabeth River. To the north and south lie sprawling residential neighborhoods.

ODU began acquiring property through purchase and donation earlier this year within the 75-acre tract bounded by Hampton Boulevard, 38th to 49th streets and Killam Avenue.

If necessary, the housing authority would take properties by condemnation, said Pat Gomez, NRHA's director of community development. This could happen as early as January if approvals follow the public hearing.

The state has power of eminent domain over properties where public facilities would stand, said Brian Townsend, development services manager for the city's planning department. That includes the proposed convocation center and its adjacent garages.

The Sniffens' carefully decorated eatery stands in the way of one of the big garages.

Theirs is among dozens of small businesses that line the east side of the boulevard, and the university's proximity boosts their profits.

While property owners would get paid fair market value for the land and buildings, folks who lease and run the spaces would lose their investments.

The Sniffens, who are expecting their first child, worry that they'll have to move. They have no idea where they could set up shop and do enough business to pay off their debt. And they can't count on new retail space becoming available in the university's planned commercial district for years.

Jim Hollomon, relocation and property manager for the NRHA, said businesses could be reimbursed for actual moving expenses, including new permit and license fees and other costs, up to $1,000. In addition, the authority would assist businesses in locating new sites. Investments in the new sites - things like new carpets, redecoration and advertising - are also reimbursable up to $10,000 during the first two years, he said. But there is no allowance for loss of business in connection with forced moves.

Sniffen said he won't get enough to compensate him for the loss of the lucrative location. ODU accounts for at least 80 percent of his business, he said.

Down time combined with moving costs will put him under financially, he said.

Sniffen's business neighbors are worried as well.

Efra Cardona, who owns Turbo-Wash laundry and dry cleaners next door to the coffee house, said he's so jittery he can't sleep.

``I spent so much because I knew I'd be here a long time,'' said Cardona. He invested about $75,000 11 years ago.

``It's totally unfair,'' he said. ``We need compensation, and $1,000 is not going to cut it.''

Ted Mendoza, owner of Anthony's Pizza Palace on the other side of the coffee house, has rented for 13 years. In the past year, he's invested $40,000 in the property. Now, he said, he'll never get it back.

Daniel Chavez, owner of Mr. T.'s Tacos on 44th Street, has rented the same spot for the past five years. He said he had thought he'd be relocated to a shopping center to be built nearby on 38th Street before the convocation center goes up.

Gray's Pharmacy and two go-go clubs would also be affected.

The 75-year-old pharmacy lies between 47th and 48th streets, so its demise is not imminent. But owner Dave Halla doesn't think it will happen anyway. ``I don't think the university has that kind of money,'' he said.

Halla said if the pharmacy goes, he would lose an investment of about $250,000. And he'd lose out on potential earnings, too, because the location he's in now is ``strategic,'' he said.

Jay Sherrill, who owns Old Dominion Inn on the west side of the boulevard, stands to gain from the expansion. But he sympathizes with his business peers. Sherrill is vice chairman of the Virginia Small Business Financing Authority.

``Virginia may be one of the worst states in how it treats small business,'' he said. ``We need a plan in place that provides for them so they don't have to hire lawyers, file for bankruptcy or incur debt.''

Sherrill would like to see the General Assembly create a recovery fund using state, federal and local money to help displaced business owners until they're back on their feet. ILLUSTRATION: Color Photo

BETH BERGMAN/The Virginian-Pilot

Jeff and Kimberly Sniffen, owners and operators of Old Dominion

Coffee House on Hampton Boulevard in Norfolk, built their business

on the strength of its location - across the street from ODU. But

now the state school's expansion is threatening to close them down.

Color ILLUSTRATION COURTESY OF ODU

This illustration shows what the west side of Hampton Boulevard

would look like under ODU's proposed expansion plan. The Old

Dominion Coffee House would be displaced by the parking garage in

the foreground. Behind it is a proposed convocation center. KEYWORDS: OLD DOMINION UNIVERSITY EXPANSION