The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Tuesday, August 9, 1994                TAG: 9408090373
SECTION: LOCAL                    PAGE: B01  EDITION: FINAL 
SOURCE: BY MARC DAVIS, STAFF WRITER 
DATELINE: VIRGINIA BEACH                     LENGTH: Medium:   92 lines

CITY DOESN'T HAVE DEED TO BEACH VIRGINIA BEACH TO CHECK IF SOMEONE ELSE HAS TITLE

The city does not have a deed to the Oceanfront resort beach and has not conducted a title search to determine if anyone else owns the beach, according to a 7-year-old city memo.

The 1987 memo also says that the city has, in effect, no insurance against someone who claims to own the beach.

The question is: Does the city need a deed to prove it owns the beach?

The issue may become important now that land salvager Edwin B. Lindsley Jr. claims to own most of the three-mile resort beach and boardwalk.

Virginia Beach officials say they have ample proof that the city owns the beach. They cite a 1973 ruling by the state Supreme Court. Even if the city has just an easement over the beach, they say, that is enough to protect the public's interest.

``The fact that we may only have an easement causes me no concern,'' Deputy City Attorney Gary Fentress said. ``Where we have an easement, we have along with that the right to ensure that the property is maintained and preserved.''

But Lindsley, a 70-year-old investor who buys defunct companies with long-forgotten land titles, claims he has a deed to the Oceanfront beach dating to around 1900, when the resort was developed.

Lindsley and his attorneys declined to discuss details of his claim. It could not be determined when or how he acquired it. So far, no lawsuit has been filed.

Lindsley made his claim in a May 31 letter to the Army Corps of Engineers. The corps plans to protect the beach from hurricanes by building a new seawall and a boardwalk and doubling the beach's width.

In the letter, Lindsley hinted that he might block the $92 million project if the city ignores his ownership claim.

In support of his claim, Lindsley's attorneys have cited the 1987 memo from Assistant City Attorney Jay A. Richardson to then-City Attorney J. Dale Bimson. It discusses efforts to prove that the city owns the beach.

The question arose in 1986, when the corps agreed to dredge Rudee Inlet and drop dredged sand on the Oceanfront beach. The corps said it could not go on with the project until the city proved it owned the beach.

The city could not do so, according to the 1987 memo.

``It became obvious early on that . . . there simply was not any source title to which the city could point as proof of its ownership to the beachfront,'' the memo states.

Fentress said the corps was simply being careful. ``The corps has been burned from time to time, so they're very cautious,'' Fentress said.

When the city could not provide a deed, the corps demanded title insurance.

The city got a policy, but with restrictions.

``In my opinion,'' Richardson's 1987 memo says, ``we are fortunate to have found a title company willing to issue a title policy, especially since the city cannot provide a source deed to the beachfront.''

Without such insurance, ``it will be necessary to resort to a title search to determine what, if any, private interest to the beachfront exists and, if any should exist, to resort to condemnation,'' the memo says.

``Not only would such a process be costly, it could be time-consuming.''

To get the insurance, Virginia Beach promised to indemnify the title company. ``In essence,'' the memo says, ``the city will be insuring the title company from any loss.''

The city also promised to use its condemnation power ``in the event a claim is made under the title policy,'' the memo says.

That does not mean the city will automatically pay anyone with any claim, Fentress said. It means the city will pay only on a successful claim, and the city will challenge anyone who lays claim to the beachfront, he added.

In response to Lindsley's claim, City Manager James K. Spore wrote in June to U.S. Sen. Charles S. Robb: ``Our preliminary finding is that this claim is without merit and should not impede implementation of the proposed hurricane protection project as planned.

``However, as with any claim against city property, we will conduct a complete and thorough investigation before rendering a final finding and determination. I will advise you of the outcome of our investigation as soon as it is completed.'' ILLUSTRATION: Photo

Why the concern?

Edwin B. Lindsley Jr., an investor, has claimed that he has a deed

for the Oceanfront beach.

Memo excerpts

For copy, see microfilm

KEYWORDS: VIRGINIA BEACH OCEANFRONT RESORT BEACH

VIRGINIA STATE SUPREME COURT

by CNB