Regional Cooperation to End Homelessness

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The regional cooperation between the cities of Virginia Beach, Chesapeake, Norfolk and Portsmouth to reduce homelessness in South Hampton Roads was featured as the cover article in the Mar09 issue of Research Works, HUD's Office of Policy, Development and Research newsletter.

The article highlighted the cities' partnership with Virginia Supportive Housing to develop Gosnold Apartments in Norfolk and Cloverleaf Apartments in Virginia Beach, the nation's first two regional housing facilities for homeless single adults.

Gosnold and Cloverleaf each houses 60 formerly homeless single adults and provides residents with supportive services -- health, education, job training and placement.

Research Works is a national publication that links housing research and practice. The complete Mar09 issue of the newsletter may be viewed online at http://www.huduser.org/periodicals/Researchworks.html

Building "Civic Muscle"

Learn how to apply to serve on city boards and commissions at a public forum sponsored by Project Inclusion Leadership Development Program, United Way of South Hampton Roads on Thursday, April 30th, 6:00PM – 8:00PM, at the Norfolk Workforce Development Center, 201 E. Little Creek Road, Norfolk.

The forum agenda includes:

Remarks on Community Service by Bernard Henderson-Senior Deputy Secretary, Commonwealth of VA

Keynote Presentation - Civic Boards & Commissions Panelists:

• Velma McNair, Deputy City Clerk of Chesapeake
• Katherine Glass, City Clerk of Hampton
• Mabel Washington-Jenkins, City Clerk of Newport News
• Shelia Wilder, Deputy City Clerk of Norfolk
• Debra White, City Clerk of Portsmouth
• Erika Dawley, City Clerk of Suffolk
• Ruth Hodges Frasier, City Clerk of Virginia Beach

Moderator: Delores “DeeDee” Gee-TV Show Host: “My Good Lyfe”

Project Inclusion aims to serve as an advocate for inclusion within the community and to build and promote cultural diversity among the United Way member agencies and other non-profit agencies to positively impact the quality of life for others.

Forum Take-Aways:

• Learn which boards have current vacancies in your city.
• Gain an understanding of board application processes.
• Obtain useful tips for gaining board appointments.
  

Refreshments will be served at this free event.

RSVP your attendance to J.R. Locke, Director of Project Inclusion, at 2515 Walmer Avenue Norfolk, VA 23513-2604, ebmincllc@msn.com or call 757-853-8500 ext 134.

City of Chesapeake building on success

Chesapeake's Indian River Distribution Center, near the Port of Virginia, attracted U.S. Auto Parts Inc. of Carson, Calif., to the city, where it will spend $2 million on the East Coast location of its Internet retail business.

Chesapeake's economic development recruiters have marketed the city as a haven for international companies and logistics businesses. Their considerable time and efforts are paying off, bringing investment and jobs at a time the region sorely needs them.

For more on Chesapeake's Economic Development efforts, visit their website: www.YesChesapeake.org

Leadership During Tough Economic Times

by Donna Morris, Executive Vice President of the Hampton Roads Partnership

“We are absolutely joined at the hip by geography and economy,” said Norfolk Mayor Paul Fraim. “Everyday, it becomes more clear that we will weather this economic downturn together or not at all.”

Three distinguished Mayors from Hampton Roads came together to discuss “Leadership During Tough Economic Times” as part of Regent University’s Executive Leadership Series.

The Honorable Paul Fraim, Mayor of Norfolk and a founding member of the Hampton Roads Partnership, began the discussion by sharing a few of the impacts a downturn in the economy will have on his city. He said despite the fact the regional economy is outperforming the nation these will be very challenging times for local governments. The City of Norfolk is looking at a $35 million gap in their operating budget. The Constitution requires localities to have balanced budgets so cuts will be inevitable. Personnel costs make up roughly 75% of the city’s total expenditures. In tough times like these programs will be reduced or totally eliminated. Currently the city is conducting a fundamental review of all services, looking to preserve the most essential.

Mayor Fraim says tough times provide us with an opportunity to reinvent how we do business – looking at ways to be more cost effective, redefining levels of service that is data driven , and tapping the resourcefulness found in employees. City employees can be a great source of ideas when it comes to improving services and becoming more efficient in delivering those services. The public also will play a key role in helping to set priorities.

He noted that 35% of Norfolk’s land is off the tax rolls, there is a higher poverty level and older housing stock. City priorities include education, public safety, new mass transit, and downtown revitalization.

Norfolk is looking to work with other communities in the region to share best practices, whether in the area of human services or transportation. Finding ways to be more efficient through shared services such as employee health insurance or marketing/promotional efforts. A prime example of the value of working together has been the collaborative effort to end homelessness, involving several communities in the region.

The closure of the Jordan Bridge coupled with the rebuilding of the Gilmerton Bridge (due to commence in May) is an important and necessary to connect the workforce with jobs. Mayor Fraim presented the statistics that point to the fact our economies are interwoven – 65,000 jobs in Norfolk are filled by residents of Virginia Beach and 30,000 from Chesapeake, in other words 43% of Norfolk’s workforce comes from these neighboring cities. Sixteen percent of Norfolk’s residents drive to Chesapeake and Virginia Beach to work.

“We are joined at the hip by geography and economy. We must work closely as a region – we are in this together,” stated Mayor Fraim. “What is good for Virginia Beach and Chesapeake is good for Norfolk. What helps one – helps all.”

Virginia Beach Mayor, The Honorable William Sessoms reinforced the point that it is vital to work together – sharing ideas and collaborating on strategies for the good of all. He said Hampton Roads is fortunate to be faring better than most regions because of the federal presence.

Mayor Sessoms described the city’s plan to focus on preserving their AAA bond rating; doing more with less; increasing partnerships (like the homelessness initiative, light rail, support for the Regional Transportation Plan; Economic Development focused on creating higher paying jobs); new transit; supporting the military; and, remaining true to the vision.

The Mayor noted how critically important the military presence is to our economy, representing 45% of our gross regional product. He stated “We must support the Outlying Landing Field (OLF) – it is a National Security issue, it’s not about Virginia Beach.” He also said we must support Little Creek and work hard to keep nuclear aircraft carriers based in Norfolk.

He said the City of Virginia Beach remains true to the a vision that includes shaping future growth, seeking public input and learning from the success of neighboring communities. He concluded by saying “Let us become the model for others to follow.”

Mayor Alan Krasnoff from the City of Chesapeake is also a charter member of the Hampton Roads Partnership Board. In 1996 Mayor Krasnoff was a member of Chesapeake City Council , serving as chair of the Hampton Roads Planning District Commission (HRPDC). He said Chesapeake, as with other communities of the region, is fortunate, but not immune to the financial challenges of the times. He said we must have “faith to weather the storm.”

Mayor Krasnoff stated the times afford us the opportunity to redefine the core of our cities with the leadership necessary to seize the challenges. The times demand the need to form consensus (referring to it as an essential tool to use).

He discussed some of the differences between politics and governance – like “playing it safe” versus “saying no” if that is best course of action. He emphasized the importance of focusing on issues and opportunities rather than competing. He suggested consolidating services where it makes sense noting the Southeastern Public Service Authority (SPSA) was a good idea, a way to meet a common need with a regional approach. Their recent troubles stemming from a lack of oversight doesn’t mean we need to give up on the good idea.

Regent University‘s Executive Director of Advancement and University Events Baxter Ennis tossed out the idea of bringing all of the region’s mayors and chairs together for a similar event next year.

The Mayors speaking at this event were passionate and sincere in their commitment to regional cooperation. It was afternoon well spent.

Chesapeake's State of the City, not immune, but sound

by Andrew Sinclair, HRP Program Manager

On March 4, Chesapeake Mayor Alan Krasnoff delivered his annual State of the City address to a packed room of Chamber of Commerce members at the Chesapeake Conference Center.

Mayor Krasnoff lamented the hard economic times. "Fortunately for Chesapeake and Hampton Roads, a robust and expanding military presence at installations like the Naval Support Facility Northwest Annex, and a vibrant maritime economy have helped minimize the effects of this recession on our region, but we have not been immune."

Mayor Krasnoff discussed the increased strain on city services during these times and lauded the response of city employees. He highlighted efforts in the schools, by emergency response personnel, and at community organizations that make Chesapeake a special and wonderful city. Mayor Krasnoff also gave special attention to the economic development efforts underway: from business relocations and expansions to tourism efforts and new start-ups to significant infrastructure projects like the Jordan Bridge. Chesapeake is in the process of reviewing many of its internal processes to increase efficiency and customer satisfaction.

Mayor Krasnoff ended his remarks by again reflected on the current economic troubles, saying, “as a region and as individual cities, we have already been through much together,” but Mayor Krasnoff saw hope in people’s spirit that we would recover and declared the state of Chesapeake to be “sound.”

For a complete transcript of Mayor Krasnoff's remarks, visit http://www.chesapeake.va.us/council/state_of_the_city/2009/stateofthecity2009.pdf

VDOT's Hampton Roads Bridge Tunnel Meeting

by Russell Manning
(including photo credit)

Norfolk Mayor Paul Fraim addresses the group.

Dennis W. Heuer (VDOT Hampton Roads District Administrator), Pierce R. Homer (Virginia Secretary of Transportation), and Randy Boice (Project Manager) addressed a group of citizens and elected officials at Granby High School in Norfolk, VA tonight. The first of two meetings was held last week at the Hampton Roads Convention Center in Hampton, VA.

Mr. Boice gave very detailed, informative explanations of each alternative including the strengths and weaknesses of each as follows:

Alternative 1: at $2.2 Billion was the least costly, but would not meet Federal Highway requirements prohibiting two-way traffic within the same undivided tunnel.

Alternative 2: meets Federal Highway requirements for minimal extra cost (adds $100 Million) by making the middle tube reversible during rush hour, however the traffic pattern on I-64 does not allow for reversible lanes. There is equal traffic in each direction, making it difficult to reverse the lanes.

Alternatives #3 and #4 are the two most practical and the most costly at $3.3 Billion each.

Alternative 3: constructs a four-lane tunnel to accommodate all east-bound traffic and converts both existing tubes to carry only west-bound traffic.

Alternative 4: constructs a four-lane tunnel and reserve a lane in each direction to be used for a dedicated right-of-way transit service, either a bus way or, more preferably (in Secretary Homer’s opinion), an extension for the Light rail line.

Alternative 5: constructs a two-lane suspension bridge, a mile in length and high enough for cargo ships and aircraft carriers to pass underneath. It would require reversible lanes, which not only fails the Federal Highway regulations but, due to the lower speed needed for the two-lane tube, the time benefit is shown not be worth the money spent. It also has “adverse … aerodynamics,” similar to the first Tacoma Narrows Bridge, which collapsed in Washington State four months after it opened in 1940. Proper reinforcement would bring this bridge to the same cost as a four-lane bridge. (see #6)

Alternative 6: constructs a four-lane suspension bridge, which saves $100 million over the four-lane tunnel option. However, it was noted that the Navy would never approve it. Constructing a bridge over the only exit for the majority of the Atlantic Fleet would be a terrorist attack waiting to happen, also adding fuel to Florida’s case to move aircraft carriers away from Hampton Roads.


Chesapeake Mayor Alan Krasnoff and Councilman Dr. Richard W. West attended.

Comments following the VDOT presentation included:

Norfolk Mayor Paul Fraim, who objected to any and all plans to widen HRBT, stating that the region has already determined that the Third Crossing was the best option, better during an evacuation, a plus for military mobility, and it would draw traffic away from the HRBT, lessening traffic jams. Any HRBT widening project in the current footprint would disrupt the Willoughby area.

Senator John Miller and Delegate Paula Miller were present to support the project, stating that we need to plan for the future and not just alleviate current problems. Delegate Miller inquired if the HRBT project or the Third Crossing would be eligible to receive funding under the proposed stimulus programs from President-elect Barack Obama. Mr. Homer replied that neither project would be eligible as they are not ready for immediate construction.

Bobby Mathieson of Virginia Beach stressed that the community needs to continue to talk about solutions. Virginia Beach’s Vice Mayor Louis Jones stated that he did not support any project that was not previously supported by the MPO.

Norfolk councilman Randy Wright took a minute to publicly thank Mr. Homer for supporting the Norfolk Light Rail project.

Hampton councilwoman Angela Leary stressed that as a supporter of personal property rights, she would like to discuss further alternatives with Norfolk and the Peninsula.

Mr. Homer strongly supports a multi-modal tube in any expansion to make it more attractive to the Region.



Russell is a Political Science major at ODU and Hampton Roads Magazine Top Ten Blogger, and we thank him for his continued reporting.
http://757HamptonRoads.blogspot.com

Economic Crisis of 2008

Economic Crisis of 2008

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Report provided by Dr. Filer to the Hampton Roads Partnership Executive Committee on 17-Oct 2008.

Summary: as of Aug08, the U.S. has $19.3T in housing stock with $10.6T in debt. 91.6% are at prime rates; only 8.4% is sub-prime. So, how did this small sub-prime number create such havoc? Regionally, Hampton Roads has less sub-prime stock than the nation and comparable MSAs (such as Charlotte, Jacksonsville, Atlanta). Locally, while still small, the majority of sub-primes are #1) Suffolk, with an alarming rate #2) Chesapeake #3) Portsmouth #4) Hampton.

Hampton Roads has a low foreclosure rate compared to national average. However, over the next year, local ARM resets will be slightly higher in number than national average. Hampton Roads’ median monthly average house payment income as a percentage of monthly income has always been lower than the national average, that is, until 2007.

Hampton Roads' home inventories are a definite concern, although we’re approaching “bottom”, our historical minimum of home sales and at the peak of our historical home inventories. Is our current housing situation the result of fundamental appreciation or over-speculation in home values? This is debatable among local economic experts, including Dr. Koch.

Hampton Roads and NOVA are the only MSAs in Virginia not already in recession or at risk, but “expansion” mode. Expansion in Hampton Roads is evidenced by personal income growth and job growth versus job losses.

In 2008, 59% of mortgage debt was being sold on the secondary market and not held by banks, two times as much as any other period in history. Warren Buffet referred to this rise as “weapons of financial mass destruction”. The credit default market is at $58T while the debt rate is actually $10.6T. These are highly leveraged “insurance contracts”. Credit on “paper” is at 13 times its actual worth and the assets attached to that credit.

The TED Spread, the percentage banks pay to borrow money from other banks, has experienced huge spiking in the last two months. The commercial paper market (basically IOUs) for short-term needs, i.e. paying debt with debt has been rolling over since Jul07 and has started to “crash”. Banks have liabilities and can’t find buyers for the debt.

As of 3rd Quarter of 2008, essentially 80% of the banking industry is finished with sub-prime lending. 60% of banks report tight lending even with credit cards.

So, where’s the bottom? The fundamental weakness is in housing defaults. Foreclosures will continue until this market stabilizes. The high-end market in housing is much more volatile than the conforming market (valued at $417k or less). World-wide recession is indicated by the slowing of GDP. The recent moves by the Federal Reserve and the federal government are very aggressive and need to be allowed time to work in the various markets to stabilize the economy.

The solution to Hampton Roads' housing excess inventory? Need to address the supply side by keeping buyers in the market and attracting new buyers and encourage banks to make loans. Current federal response hopefully will stimulate demand. Hampton Roads builders should be highly commended, having responded well by reducing new permits and avoiding over-building. Other regions are not so fortunate.