Norfolk developers want city guarantee:
Tivest officials want the city to guarantee 65 percent of rent payments for space the Southeastern Tidewater Opportunity Project will lease. The guarantee would kick in only if STOP could not pay its rent.STOP, a private social services provider funded largely with government dollars, would pay annual rents of more than $2 million for more than 100,000 square feet. If the council agrees to Tivest’s request, it would mean the city could be on the hook for more than $12 million.
I understand the need to develop. I understand the need to increase the tax base. Lord knows, I’m doing my share, since my real estate assessment has been the same for the last three years, despite falling real estate prices. But it has to stop sometime. Now seems about right.
To get the project built, the city agreed in 2008 to help subsidize the development by providing the land, about $500,000 in infrastructure improvements, and a $490,000 tax subsidy.
Then, early last year, Tivest requested and the city agreed to lease 60,000 square feet of the building and move its Human Services employees there. In return, Tivest agreed to pay $1.2 million for the land and give the city the right to buy its portion of the office space.
We can’t afford to be on the hook for any more money. Just say no.
VIVIAN J. PAIGE | All Politics is Local 
I’ve heard from some pretty good sources in the real estate world that there is quite a connection between Tivest, Burfoot, the NRHA, and some fairly crooked characters. Funny how they won out over other proposals that would have given cheaper rent to the city.
Hmm – not sure what happened to the link to the Pilot story but I’ve updated the post to include it.
Vivian. I could not agree more. And sadly, as usual, not many Norfolk citizens, or even council members not “in the know” will have a chance before the vote to be well enough informed to say yea or nay. This nonsense has GOT to stop.
I posted the following at Pilot Online earlier and will repeat it here.
” Can we talk about the process?
Submitted by js001 on Tue, 01/11/2011 at 2:53 pm. The financial reasons this project should be rejected are one thing. There is simply no good justification financially for such a sweetheart deal for Tivest. Just as important in my view is the continued “ram it through” way it which tonight’s vote is being conducted. Despite no city council meeting for the past 3 weeks, the agenda for this week’s meeting was not posted until Sat., and without supporting documents. As noted in the story, even council members did not get much detailed information until late Monday. A citizen?? No chance of having this information before the vote. This item, R-8 on the agenda, states: “The amendments are being finalized and will not be available until the Informal Session of City Council on January 11, 2011”.
Process Part II
Submitted by js001 on Tue, 01/11/2011 at 3:00 pm. So therefore, how on earth are citizens for or against going to have a prayer of being informed, let alone organized, before tonight’s meeting?? Answer. They are locked out. As are council members not “in the know”. Same old Norfolk politics. I noted with equal dismay Tommy Smigiel’s comments here on Pilot Online about lack of citizen participation in council meetings and matters and should have replied then as I am now that it is darn hard to participate pro or con when business is conducted in a way that expressly precludes being able to so. Too little information always provided way too late to do anything about it. That is by design. And it should be despised and railed against by every Norfolk voter. Change it now council members!!!”