PPEA, Taxes and The Ear

Let’s put aside Team Better Block for a moment and focus on something more serious for once.

The construction of four schools in Norfolk.

So what is Norfolk City Council’s solution? Raise the real estate tax by two cents. Raise other fees, as well, as part of next year’s budget, which begins July 1.

But before we consider building a new school on the tax payer’s dime, let’s invite some developers to the table and see what they can offer.

In return for leasing or renting the space when all “God’s chillun,” have fled the hallowed halls of our public educational system, developers can help restore some of these antique schools or build new schools.

The legal framework is in place. It can be done, if only Norfolk City Council and the city’s executive team have the fortitude to make it happen.
 
In fact, the framework has been in place since 2002, when the Public-Private Educational Facilities Infrastructure Act was signed into law. 

Here’s the gist of the law.

The Public-Private Education and Infrastructure Act of 2002 (PPEA) was designed to bring private sector expertise to bear on public projects - saving time and money.

It has allowed private entities to "acquire, design, construct, improve, renovate, expand, equip, maintain or operate qualifying projects" and encourages innovative approaches to financing construction and renovation.

The law created resources to fund a comprehensive range of projects, including schools, wastewater treatment plants, and telecommunications infrastructure - essentially any type of public venture.

Schools, folks. 

The city is quick to cut a deal to build a hotel and conference center as public-private partnership and crow it about it afterwards while throwing $89 million into the deal. Agreed, the debt for the parking garage will be paid by parking fees and the city has already collected roughly $19 million for the $42.5 million conference center.

Keep in mind also that the city has spent $16 million buying and demolishing buildings to prepare the site. That was eight years ago.  

While the city likes to crow about the $2 million the hotel and conference center will generate every year, you have to wonder how much the city has lost in the eight years that the site was a broken pavement. Remember, the hotel and conference center is a public-private partnership, which the city loves to point out. Repeatedly. 

We have public-private partnerships for tunnels, highways and possibly light rail. Why not for schools? What’s the hold up?
  Let’s see Norfolk get a little more aggressive with developers about our schools and then crow about it instead of taking the easy road – raising taxes. 

Consider that in Norfolk a lower percentage of our population pays the bulk of the real estate taxes. 

Compare that to Virginia Beach where real estate taxes are spread more evenly among property owners. 

The Ear 

 
  Heard and confirmed. South Carolina-based US Development is expected to close on the building at 161 Granby Street, known to some as The Savoy, and to others as the leaning tower of Norfolk. 

Heard, but not yet confirmed. Marathon Development President Buddy Gadams, the Come Back Kid, has his sights on the Union Mission and may buy it. Harvey Lindsay Commercial Real lists the property. 

And, last but not least, the Virginia Port Authority 12-member board of commissioners wants to hear from firms with executive recruitment services to “assist” the brave Board to hire an executive director. 
 
The firm will help identify, screen and select a new executive director, according to a public notice in the Virginian-Pilot, April 14. 

The contract is for one year with the option to renew for two additional one year periods.