The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Sunday, October 20, 1996              TAG: 9610180217
SECTION: VIRGINIA BEACH BEACON   PAGE: 07   EDITION: FINAL 
TYPE: Letters 
                                            LENGTH:   83 lines

PRO: A MEANS TO ADDRESS OPPORTUNITIES

On Nov. 5, citizens of Virginia Beach will be asked to answer the following question: ``Is there a need for the Redevelopment and Housing Authority to be activated in the City of Virginia Beach?'' On behalf of the Virginia Beach Division of the Hampton Roads Chamber of Commerce, I encourage each citizen to vote YES on this issue.

The facts present a compelling case in favor of activating a Redevelopment and Housing Authority. As Virginia Beach has grown, our local government is faced with increasing challenges to accomplish long range objectives for the community. For example, as neighborhoods and commercial centers age, deterioration and blight will become a growing problem. The city currently lacks the powers granted to a Redevelopment and Housing Authority (low-interest loans and grants) which can improve neighborhoods. Similarly, land uses have changed over the years. Some residential land is now surrounded by commercial development and vice versa. Major development projects require the ability to assemble land, clear title and prevent the last property owners from extorting outrageous prices from the city.

Most cities throughout Virginia already have a Redevelopment and Housing Authority. In fact, the city's research indicates that Virginia Beach is the only city in the entire United States with a population over 300,000 which does not have a Redevelopment and Housing Authority available. Virginia Beach has reached the point in its development that major goals identified today, and many objectives and problems which will arise in the future, will not be able to be addressed optimally without additional tools being made available to City Council. The primary benefit of a Redevelopment and Housing Authority is that it provides additional flexibility and means for Virginia Beach to address challenges and opportunities now and in the future.

Critics of the proposal have voiced concern about condemnation power, Burton Station and public housing. Voters must resist a knee-jerk reaction to the proposal and analyze the creation of an authority on its merits. Our City Council has declared that it is not interested in creating public housing projects in Virginia Beach. Similarly, council members have evidenced a sincere commitment to ensuring that the use of condemnation power by a Redevelopment and Housing Authority would be done infrequently and with full regard for the rights and needs of property owners. Those who focus on the condemnation powers of an authority as an area of concern need to remember that the city already has the power to condemn private property for public purposes such as roads, schools and other publicly owned projects. An authority enables the city to acquire property through condemnation and then return the property to the tax rolls by reselling it. This will greatly enhance economic development opportunities around the proposed Light Rail Transit stations, in various business districts and at the Oceanfront where projects such as the expansion of the Pavilion, development of the 19th Street corridor, development of a convention hotel and others are stagnating in part due to the inability of the city to assemble the necessary land.

It is easy to look at Burton Station as the primary reason for the referendum being placed on the ballot, but it is not. Undoubtedly an authority will assist the city in addressing the Burton Station project and the needs and rights of residents. However, this is only a part of a much larger picture for our community. Maintaining residential neighborhoods and focusing on economic development opportunities is critical to attracting new businesses and retaining existing companies. Increased capital investment, more employment opportunities and an expanded commercial tax base benefit each resident.

Certainly there have been instances in other communities where citizens have not been treated as fairly as one should expect by a local authority. However, Virginia law provides many safeguards to private land owners so that the powers of an authority are not abused by local government. The past mistakes of a few other communities should not lead one to conclude that activation of an authority in Virginia Beach is a bad idea. If our local government is not provided with the tools necessary to accomplish major development projects, which by definition cost a great deal of money and take a long time to complete, then elected officials will be reluctant to support major investment of public funds in such projects.

It is far better to activate an authority now and be vigilant about the use of the authority's power and the merits of potential projects as the public sector moves forward with development in our city. An authority that is sensitive to the needs and rights of residential and commercial property owners will serve this city well.

C. Grigsby Scifres

Chairman,

Virginia Beach Division

Hampton Roads Chamber

of Commerce

KEYWORDS: REDEVELOPMENT AUTHORITY DEBATE by CNB