City of Norfolk 2010 Annual Report

CITY OF NORFOLK

Contents

3 10 16 17 22 26 31 34 40 43 45 47 49 50 53 55 56 57 59

Notable Arts & Attractions Port & Intermodal Business Downtown Norfolk Transportation Citizen Engagement Real Estate Neighborhoods Recreation, Parks and Open Space Green Public Safety Military City Budget Homelessness Community Services Board Schools Universities Medicine

Office of the Mayor Paul D. Fraim Office of the City Council

Norfolk City Council (left to right) Donald L. Williams; Theresa W. Whibley; Paul R. Riddick; Daun S. Hester; Mayor Paul D. Fraim; Vice Mayor Anthony L. Burfoot; Barclay C. Winn; W. Randy Wright.

Anthony Burfoot, Vice Mayor (Ward 3) Daun S. Hester (Superward 7) Paul R. Riddick (Ward 4) Theresa W. Whibley (Ward 2) Donald L. Williams (Ward 1) Barclay C. Winn (Superward 6) W. Randy Wright (Ward 5) City Manager Regina V.K. Williams

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EDITING

City of Norfolk Breck Daughtrey | City Clerk 757.664.4253

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Remarks of Mayor Paul D. Fraim

Norfolk State of the City February 19, 2010

Dear Friends: Let me first thank all of you for your interest in this annual report on progress made and challenges faced during a year that tested our resourcefulness like none in recent memory.

It may be true the worst of the Great Recession is behind us, but swirling in its wake is high unemployment, a weak housing market, slumping auto sales, sharply lower retail sales and a $3.5 billion hole in the State budget.

The new State budget closed an additional $4 billion gap, and this time there are no federal stimulus funds to offset the shortfall. We continue to be concerned and heavily involved in seeking funds for transportation alternatives and education.

Local revenues also are down, led by lower retail sales and real estate values. At year’s end Norfolk’s unemployment rate was 8.6% — the highest level in at least 20 years. Still, we will maintain a structurally balanced budget.

We are a City showing determined progress.

The tax base has grown and diversified, the tax rate is lower, our population has grown by 1.4%. investments in redevelopment and revitalization have been very successful, and the City’s financial condition remains solid. All of which leads us to believe that we are as well positioned as possible to weather the present economic downturn.

Sincerely,

Paul D. Fraim Mayor

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City of Norfolk 2010 Annual Report

Notable

Former city council member and long-time pastor of Shiloh Baptist Church, Dr. John H. Foster, passed away in August.

Captain Richard Phillips of the Norfolk-based Maersk Alabama thanks the crew of the Norfolk-based USS Bainbridge and Navy SEALs for his rescue during the hijacking by Somali pirates.

Frank Batten Sr., beloved leader of Landmark Communications and Norfolk’s most generous patron, passed away in September. His $11 million gift to the Zoo and $20 million gift for the Slover Memorial Library are just two examples of his generosity.

Top High-Water Events – Sewells Point Date

Storm Name or Type

Above MLLW (1983-2001)

Aug. 23, 1933

Hurricane (unnamed)

8.02 feet

Sept. 18, 2003

Hurricane Isabel

7.89 feet

Nov. 12, 2009

Nor’easter

7.75 feet

Mar. 7, 1962

Ash Wednesday Storm

7.22 feet

Sept. 18, 1936

Hurricane (unnamed)

6.72 feet

Nov. 22, 2006

Thanksgiving Nor’easter

6.63 feet

Feb. 5, 1998

Twin Nor’easter (#2)

6.58 feet

Oct. 7, 2006

Columbus Day Nor’easter

6.52 feet

Apr. 27, 1978

Nor’easter

6.41 feet

Apr. 11, 1956

Nor’easter

6.32 feet

Sept. 16, 1933

Hurricane (unnamed)

6.12 feet

Jan. 28, 1998

Twin Nor’easter (#1)

6.04 feet

Sept.16, 1999

Hurricane Floyd

5.97 feet

Sept. 27, 1956

Hurricane Flossy

5.92 feet

Sept. 12, 1960

Hurricane Donna

5.92 feet

A Veterans Day Nor’easter pounded the region for three days with winds, heavy rains and a destructive storm surge. Property damage exceeded $31.5 million, and flooding equaled that of Hurricane Isabel — many will tell you it was worse.

City of Norfolk 2010 Annual Report

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Notable

Population 2000 Census 2009 Weldon Cooper Center (UVA) provisional estimate Change Percent Change

234,403 237,764 3,361 1.4%

Population By Age Under 18 years 18 years and over 65 years and over Median age

Number 60,012 174,208 23,665 29.6

Percent 25.6% 74.4% 10.1%

Number 211,023 23,197 84,860 49,839 30,580 11,542 15,802 10,637 27,548 17,140 30,056 2.49 3.29

Percent 90.1% 9.9%

Number 134,389 111,438 33,722 15,827

Percent 100.0% 82.9% 25.1% 11.8%

Source: American Community Survey, US Census Bureau, 2008

Households Persons living in households Living in group quarters Households Families Married-couple families With own children under 18 Female-headed household, no husband With own children under 18 Households with individuals under 18 Households with individuals 65 years and over Single-person households Average household size Average family size

58.7% 36.0% 13.6% 18.6% 12.5% 32.5% 20.2% 35.4%

Source: American Community Survey, US Census Bureau, 2008

Educational Attainment Persons 25 years and over High school graduate (or higher) College degree (or higher) Graduate degree Source: American Community Survey, US Census Bureau, 2008

Among the nation’s 52 largest metro areas that Gallup surveyed in 2009, our region ranks in the top 10 for Well-Being. gallup.com

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City of Norfolk 2010 Annual Report

The City’s stable financial condition was confirmed in December by the bond rating agencies that reaffirmed Norfolk’s excellent credit rating. This is attributable to sound management practices, and to military and other defense-related spending that work to stabilize our economy.

Norfolk lowered the real estate tax rate 29 cents — from $1.40 to $1.11— that’s nearly 21% . Among Hampton Roads’ local governments, only Virginia Beach — with twice our population and four times our size — has lowered its real estate tax more. As one of Virginia’s most fiscally stressed localities, this is an unprecedented accomplishment.

Tax Rates and Utility Fees Property Taxes Real Estate Personal Property

Airplane Motor Vehicle Recreational Vehicle Business Furniture, Fixtures, Equipment, Machinery and Tools

Watercraft – Business Waterfront – Recreational Other Local Taxes Amusement and Admissions Cigarette Emergency 911 (Landline) Hotel/Motel Lodging Restaurant Meal Annual Motor Vehicle License Fee

Refuse Disposal Commercial Residential

Small Trailers (< 2,000 pounds) Motorcycles Cars and Small Trucks Semi-trailers Mid-sized Trucks/Vans (4,000 to 19,000 lbs) Large Vehicles (19,000 lbs and over) Passenger (>10)

10% of admissions collected 65 cents per pack of 20 cigarettes 81.25 cents per pack of 25 Repealed and replaced by a statewide E-911 tax rate of $0.75/line/month 8% 6.5% $6.50 $15.00 $26.00 $20.00 $31.00 $1.60 – $1.80 per 1,000 pounds of gross weight $0.30 per 100 pounds of weight (not less than $26)

Business 1 time per week Business 5 times per week Single-family unit and multiple-family unit (four units or less) Multiple-family units (five units or more) Combined Commercial – Residential

$59/unit/month $146.24/unit/month $27.01/unit/month $45.27/container/month $86.01/unit/month

Water and Wastewater Fees Water Wastewater Collection

$3.74 per 100 cubic feet $3.01 per 100 cubic feet

Storm Water Fees Residential Commercial

$0.274 per day $0.188 per day

Utility Taxes Commercial

Natural Gas

Electricity (Manufacturing)

Electricity (Commercial and Industrial) Telephone (Cellular, Landline)

Residential

FY 2010 $1.11/$100 Assessed Value $2.40/$100 Assessed Value $4.25/$100 Assessed Value $1.50/$100 Assessed Value $4.25/$100 Assessed Value $1.50/$100 Assessed Value $0.50/$100 Assessed Value

Water (For commercial and all meters other than 5/8") Natural Gas Electricity Water (5/8" meter) Cable and satellite services

$3.225+ $0.167821 per CCF on first 70 CCF/month + $0.161552 per CCF on 70 to 430 CCF/ month + $0.15363 per CCF on balance/month (Max of $500 per month) $1.38+ $0.004965 per kWh on first 3,625,100 kWhs/month + $0.004014 per kWh on balance/month (Maximum of $53,000 per month) $2.87+ $0.017933 per kWh on first 537 kWhs/month +$0.006330 per kWh on balance/month Repealed and replaced by the State Communications Sales and Use Tax 5% of sales price and services 25% on first $75 plus 15% of bill in excess of $75 $1.50 per month $1.75+$0.016891 per kWh/month (maximum of $3.75 per month) 25% on first $22.50/month Repealed and replaced by the State Communications Sales and Use Tax

Sources: Norfolk City Code, Department of Utilities, Commissioner of the Revenue City of Norfolk 2010 Annual Report

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Notable

College Enrollment in Norfolk, Fall 2009 School

Undergraduates

Norfolk State University Old Dominion University Tidewater Community College Eastern Virginia Medical School Virginia Wesleyan College

6,150 18,253 30,447 1 1,336

Graduate Students 843 5,760 0 360 0

Medical Students 0 0 0 466 0

Total 6,993 24,013 30,447 827 1,336

Source: State Council of Higher Education for Virginia

Full and Part-Time Jobs in Norfolk, 2007 Income Data Households with income: Less than $10,000 $10,000 to $14,999 $15,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 or more Median household income Median family income Per capita income

Number 84,860 7,982 5,677 13,247 9,924 14,992 14,037 8,807 6,146 2,130 1,918 $40,416 $48,237 $23,443

Percent 100.0% 9.4% 6.7% 15.6% 11.7% 17.7% 16.5% 10.4% 7.2% 2.5% 2.3%

Source: American Community Survey, US Census Bureau, 2008

Total Jobs Construction Manufacturing Retail Trade Transportation/Warehousing Information Finance and Insurance Real Estate Professional/Technical Services Management of Companies Administrative and Waste Services Educational Services Health Care and Social Assistance Arts, Entertainment and Recreation Accommodation/Food Service Other Services Federal Civilian Military State Government Local Government

Number 226,110 8,011 7,937 14,993 9,661 3,824 7,655 5,955 10,780 2,556 8,800 4,587 21,708 2,439 11,123 6,977 13,200 58,252 7,352 14,027

Percent 3.5% 3.5% 6.6% 4.3% 1.7% 3.4% 2.6% 4.8% 1.1% 3.9% 2.0% 9.6% 1.1% 4.9% 3.1% 5.8% 25.8% 3.3% 6.2%

Source: U.S. Department of Commerce, Bureau of Economic Analysis

Resident Labor Force Number Total Employed Persons 16 and Up 113,701 Managerial/professional 30,514 Sales and office 22,668 Service 17,943 Agricultural/fishing 203 Production/transportation 9,993 Construction/maintenance 8,186 Armed Forces 24,194 Source: American Community Survey, US Census Bureau, 2008

Percent 100.0% 26.8% 19.9% 15.8% 0.2% 8.8% 7.2% 21.3%

Labor Force and Unemployment, 2008 Civilian Labor Force Employment Unemployment Unemployment Rate

101,457 96,041 5,416 5.3%

Source: Virginia Employment Commission

Civilian Jobs in Norfolk Average Civilian Employment Average Establishments Average Weekly Wage

143,959 5,784 $846

Source: Virginia Employment Commission, Labor Market Statistics, Covered Employment and Wages Program

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City of Norfolk 2010 Annual Report

The Most Job-Centralized Large Metro in U.S. Highest inner-ring employment share around the Central Business Districts.

Followed by New York, Salt Lake City, Las Vegas and Boston.

Brookings Institution, Metropolitan Policy Program, Job Sprawl Revisted, 2009 Brookings.edu

#1 Metro for High-Impact Firms – sba.gov Forbes ranked Norfolk in the Top 20 mid-sized cities for young professionals. The “Midsize Magnets” have accomplished a feat normally reserved for their Super City siblings: they’ve seen steady increases in the number of young professionals living there. Sometimes called “Tier 2” cities for their size, these Next Cities™ offer the best of both worlds: a buffet of great, local amenities in cities where you can still afford a starter home. Rankings are based on Seven Indexes.

Forbes.com

“Pentagon South” Hampton Roads is second only to the Washington, D.C., Metro area for defense and homeland security jobs.

Hrtc.org

“High-impact firms create the most jobs.”

Commuting Patterns People who live and work in Norfolk In-Commuters Out-Commuters Net In-Commuters

74,572 110,691 35,823 74,868

Top places workers are coming from: Virginia Beach Chesapeake Portsmouth Hampton Newport News Suffolk

55,963 24,904 8,430 5,703 3,796 3,528

Source: 2000 Census

Growth Occupations in the Region Percent Change Average from 2006 Annual Salary

A recent Brookings Institution report ranked Hampton Roads as one of the country’s 20 strongest-performing economies with unemployment 3% lower than the national rate and a strong housing market in its inner core.

Community and Social Service Specialists Personal and Home Care Aides Social Workers Network Systems and Data Communications Analysts Home Health Aides Computer Software Engineers, Applications Bill and Account Collectors Rehabilitation Counselors Education Administrators, Preschool and Child Care Computer Software Engineers, Systems Software Computer Systems Analysts

88% 79% 74% 62% 62% 61% 49% 47% 47% 46% 44%

$30,155 $16,144 $47,049 $65,912 $19,725 $78,275 $30,592 $29,232 $29,232 $87,679 $70,443

Source: Virginia Employment Commission, Occupational Employments Statistics Survey, 2008

City of Norfolk 2010 Annual Report

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Notable

Housing Units

Foreign Consuls

Percent

All Housing Units

Number 95,631

Occupied Housing Units

84,860

88.7%

Owner-Occupied

39,923

47.0%

Renter-Occupied

44,937

53.0%

Vacant Housing Units

10,771

11.3%

Owner-Occupied Housing Units

39,923 565

1.4%

$50,000 to $99,999

1,344

3.4%

ITALY Vito Piraino, Consul Phone: 622-4898

$100,000 to $149,999

5,483

13.7%

$150,000 to $199,999

9,823

24.6%

$200,000 to $299,999

12,862

32.2%

BRAZIL Thomas P. Host III Phone: 627-6286

MOLDOVA Tony Samoila, Consul General Phone: 456-9463

$300,000 to $499,999

5,596

14.0%

$500,000 to $999,999

3,758

9.4%

492

1.2%

DENMARK William R. Rachels Jr., Consul Phone: 628-5568

THE NETHERLANDS Gerard ter Wee Phone: 919-645-1100

FINLAND David F. Host, Consul Phone: 627-6286

NORWAY Rolf A. Williams, Consul Phone: 457-8330

FRANCE Nicole Yancey, Consul for the State of Virginia (except Northern Virginia) Phone: 596-2544

ROMANIA Tony Samoila, Consul General Phone: 456-9463

BELGIUM Mimi Verhulst Lanese, Consul Phone: 422-5571

Value Less than $50,000

$1,000,000 or more Median Value

FEDERAL REPUBLIC OF GERMANY Peter Muller, Consul Phone: 486-8444 ICELAND John Holloway, Consul Phone: 640-5360 Sesselja Siggeirsdottir-Seifert, Vice Consul Phone: 587-1068

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City of Norfolk 2010 Annual Report

SWEDEN Rolf A. Williams, Consul Phone: 457-8311

Norfolk Sister Cities Kitakyushu, Japan (1963) Wilhelmshaven, Germany (1976) Norfolk County, England, UK (1986) Toulon, France (1989) Kaliningrad, Russia (1992) Halifax, Nova Scotia, Canada (2006) Cagayan de Oro, Philippines (2008)

$219,000

Source: American Community Survey, US Census Bureau, 2008

Overall crime has declined 14% and violent crime by 19% in the last 10 years.

Ken Carmichael, Haven Creek Studio

Arts & Attractions

Over a beautiful weekend last July 4th, Town Point Park reopened to rave reviews following a total makeover that was completed on time, on budget and in a record construction period. The result: average daily attendance more than tripled, and even with a shortened season, more than 250,000 people flocked to programs and festivals. So congratulations to all the folks at Festevents and the city on a job well done, and special thanks to everyone who contributed financially to the project.

Cultural Arts

T

Todayâ&#x20AC;&#x2122;s economic climate is affecting non-profit organizations, including the arts. They are struggling to adjust to reductions in memberships, in box office receipts and in contributions.

The Norfolk Arts Commission works with nearly 40 cultural groups guided by more than 700 community and business leaders.

The Norfolk Arts Commission works with nearly 40 cultural groups guided by more than 700 community and business leaders. Even in the face of their own economic difficulties, these organizations and their boards continue to give back to the community.

Thereâ&#x20AC;&#x2122;s no better example than the Chrysler Museum of Art, which began offering free admission in September. The response: attendance has more than doubled, and voluntary donations at the door have more than tripled.

Through the Great Depression and World

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City of Norfolk 2010 Annual Report

Three-time Grammy winner Bruce Hornsby will debut his new premier production with the Virginia Stage Co. January 2011.

Porgy and Bess at Virginia Opera

War II, storms and floods, name changes and mergers, the Virginia Symphony has been one of our great cultural institutions. This year it is celebrating its 90th anniversary. Under the baton of Conductor

Copyright Chrysler Museum; Photo by Ed Pollard

Norfolk remains the cultural capital of the Commonwealth.

Copyright Chrysler Museum; Photo by Ed Pollard

Joanne Faletta, the Symphony has played to rave reviews at Carnegie Hall and the Kennedy Center.

Its upcoming performance of Bernstein’s Mass will be a Virginia premier.

The Virginia Stage Company and Virginia Opera continue to bring premier productions to the region and state, and this fall the Virginia Arts Festival moves into its new building — the Clay and Jay Barr Education Center. Next door, children will take acting classes and perform in the new home of the Hurrah Players, which will celebrate a grand opening in April.

Stephen Knapp’s Serenata fills the Chrysler Museum of Art’s photography gallery with brilliant color. The dazzling lightpainting reflects the artist’s love of music, in which tones, like hues, blend to form a harmonious composition. Knapp was one of four artists whose works were interspersed among masterpieces in the Chrysler collection during Contemporary Glass Among the Classics.

Top Draws of 2009 at Hampton Roads’ Major Venues Name of Venue Owner/Manager Number of Seats

Scope Arena City of Norfolk 10,412

Chrysler Hall City of Norfolk 2,503

Attucks Theatre City of Norfolk 630

Harrison Opera House City of Norfolk 1,604

Wells Theatre City of Norfolk 600

Circus 30,597 $6.50 - $85.00 Feld Entertainment America 04/16-19/09

Wicked 51,732 $25.00 - $135.00 Broadway Across City of Norfolk 05/13-31/09

Rhythm Project 1,411 Free to the public Virginia Arts Festival

Tosca 5,459

ELLA 7,743

Virginia Opera

Virginia Stage Co.

02/27-28/09

02/01-08/09

03/31-04/19/09

VA International Tattoo 25,433 $10.00 - $75.00 Virginia Arts Festival 04/29-05/03/09

The Color Purple 14,589 $18.75 - $75.00 Broadway Across America 11/10-15/09

Esperanza Spaulding 508 $10.00 - $20.00 Virginia Arts Festival 5/13/2009

La Boheme 5,402

Line in the Sand 6,655

Virginia Opera 10/03 -11/09

Virginia Stage Co. 02/22-03/15/09

Radio City Christmas Spectacular 12,030 $33.75 - $67.50 Madison Square Garden 12/03-04/09

Grease

The Mountain Goats

Barber of Seville

Romeo & Juliet

9,818 $18.75 - $70.00 Broadway Across America 09/29-10/04/09

474 $11.25 - $20.00 City of Norfolk 3/20/2009

5,376

6,459

Virginia Opera 03/12-22/09

Virginia Stage Co. 10/23-11/08/09

Top 3 Events for 2009 1. Event: Attendance: Price: Promoter: Date: 2. Event: Attendance: Price: Promoter: Date: 3. Event: Attendance: Price: Promoter: Date:

City of Norfolk 2010 Annual Report

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Arts & Attractions

The Botanical Garden

L

Last spring, Norfolk Botanical Garden unveiled a sculpture that depicted the 220 African Americans who built the Garden during the Depression as a Works Progress Administration (WPA) project. The new WPA Memorial Garden was dedicated April 29, 2009, to honor these workers who cleared the land and planted the first 30 acres. Close to 400 people attended the dedication ceremony, including family members of 54 workers whose names were discovered over recent years. One of the original workers, Mary Elizabeth Ferguson, was present to help unveil the bronze sculpture “Breaking Ground” and share her firsthand accounts of the difficult work.

The Garden of Lights, once again, was a wintertime favorite with its 2½ miles of lights and splendor.

The new light display was the Norfolk Mermaid and her underwater adventure. Even though the nor’easter downed 70 trees and threatened to delay the show, staff changed every light bulb and opened on Thanksgiving night as planned.

The sixth season for a pair of bald eagles to nest at NBG went smoothly. Three eaglets were successfully raised and were tagged with identification bands. For the first time in the southern Chesapeake Bay region, one of the eagles was fitted with a GPS transmitter which will send a signal for three years.

The internationally watched Eagle Cam shows the 24-hour-a-day view of the nest from the time the eggs are laid and hatched to when the eaglets learn to fly and hunt.

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City of Norfolk 2010 Annual Report

Three new 26-foot pontoon boats were launched at NBG. Each boat holds 23 passengers and is wheelchair accessible. The 45-minute narrated tours offer views and information about the watershed and wildlife. The boats cruise on the garden canals and around Lake Whitehurst.

The Flutter Fantasy Summer Exhibit was a huge success, drawing people to the back area of the garden where a new Butterfly House was temporarily built next to the Butterfly Garden and the Butterfly Maze.

Virginia Zoo

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The Virginia Zoo is growing more than ever with more than 409,000 visitors annually. Four lion cubs were born May 2, 2009, to mother Zola: males Ajani, Razi and Dakari, and female, Zarina. Their birth represents the second large carnivore birth at the Zoo in 35 years.

The Zoo also welcomed the birth of three bongos and a giraffe.

The baby giraffe, Willow, was born at the Virginia Zoo Oct. 21.

The origins of the Zoo’s Masai giraffe are in Africa. Even though all members of the tower (family) have been born and raised in North America, they don’t like the cold. If it is raining or if the air temperature is below 50 degrees Fahrenheit, Willow and her fellow giraffes are not allowed outside. Willow’s father’s official name is ‘Willoughby,” but he goes by “Billy.” Her mother, Imara, has proven to be a mellow first-time mother. Willow is developing a calm, inquisitive nature and has a great temperament — playful and frisky.

Construction on the Trail of the Tiger exhibit remains on schedule for an October opening.

City of Norfolk 2010 Annual Report

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Arts & Attractions

The City Of Norfolk And The Norfolk Commission On The Arts And Humanities Provide Support For The Cultural Offerings Of The Following: The Academy Of Music Arts Within Reach Bay Youth Orchestras Bellissima!

Boys Choir Of Hampton Roads Chrysler Museum Of Art Crispus Attucks Cultural Center Cultural Alliance

Hurrah Players move into their new home.

D’art Center Generic Theater Hampton Roads Mens Chorus The Hermitage Foundation Hurrah Players Hope House – Stockley Gardens Arts Festival I. Sherman Greene Chorale Little Theatre Of Norfolk Multicultural Performing Arts

Visual Arts Recreation Programs The Paul Street Gallery at Titustown Visual Arts Center held seven exhibitions (189 days) which resulted in 9,450 spectators.The youth program offered 82 classes, 40 of which were new offerings. The program is designed for youth between 2 and 17 years old. Eight percent of the classes are designed for preschoolers in response to the statewide initiative to increase preschool education opportunities. Three percent of these classes directly serve the home-school community.

Norfolk Chamber Consort Norfolk State University Old Dominion University Park Place Child Life Center Schola Cantorum Southeastern Virginia Arts Association Tidewater Arts Outreach

Last year Nauticus and the Half Moone Cruise and Celebration Center welcomed Hank Lynch as their new director. An inspirational patriotic event

Tidewater Classical Guitar

honoring Maersk Alabama Captain Richard Phillips was keynoted by Chief of

Tidewater Winds

Naval Operations Admiral Gary Roughead. The event received national cover-

Todd Rosenlieb Dance

age, and was made possible in large part with help from Norfolk-based Maersk

Virginia Arts Festival Virginia Children’s Chorus Virginia Chorale Virginia Opera Virginia Stage Company Virginia Symphony WHRO TV/FM

Line Ltd. and its president and CEO, John Reinhart. During the ceremony, Captain Phillips thanked the crew of the USS

Bainbridge.

Nauticus’ busy and successful year was capped off in December when the City took ownership of the Battleship Wisconsin from the Navy. Plans are now under way to open more of the ship to the public. National Geographic’s

World Affairs Council

blockbuster exhibit “Real Pirates” drew record-breaking crowds. The critically

Young Audiences Of Virginia

acclaimed and locally produced exhibit “Dream to Dive – The Story of Navy

Your757.Com

Master Diver Carl Brashear” told the story that Hollywood made famous.

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City of Norfolk 2010 Annual Report

Virginia Arts Festival Since 1997, the Virginia Arts Festival has transformed the cultural scene in southeastern Virginia, presenting great performers from around the world to local audiences and making this historic, recreation-rich region a cultural destination for visitors from across the United States and around the world. In its 14th season, the Virginia Arts Festival will bring the world to Norfolk with performances including:

Leonard Bernstein’s Mass The largest and most theatrical of the great composer/conductor’s works, Mass is a simple name for a soaring work that fills the stage with choruses, a Broadway-sized cast, an orchestra and even a rock band. This stunning new production of Bernstein’s 1971 masterpiece combines music by Bernstein, Paul Simon and Broadway composer Stephen Schwartz under the baton of JoAnn Falletta, with stage direction by Pam Berlin. It will feature the Virginia Symphony Orchestra, Todd Rosenlieb dancers, Virginia Symphony Chorus, Virginia Children’s Chorus and a host of gifted singers in what promises to be the musical event of the year.

Britain’s famed Birmingham Royal Ballet’s Swan Lake, hailed

by The Stage critics for its “dramatic intensity, high-flying dancing…holds its place amongst the world’s great productions.” The Birmingham Royal Ballet performs, in a North American exclusive engagement, May 7-9 at Norfolk’s Chrysler Hall with the Virginia Symphony Orchestra playing one of history’s most memorable ballet scores.

“Dream to Dive: The Carl Brashear Story” — an exciting Nauticus exhibit highlighting the life and legacy of the first African-American to become a U.S. Navy Master Diver told the story Hollywood made famous.

Performance Traditions from Around the World The Russian folk dance spectacular Nalmes fills the stage with 35 dancers and musicians in traditional costumes May 3 at Norfolk’s TCC Roper Performing Arts Center.

The Republic of Korea Traditional Army Band performs April 29 on brilliantly colored, richly detailed drums of all sizes, flourishing their instruments in choreography that bristles with the power of martial arts at Norfolk’s Chrysler Hall.

The orphaned youngsters of the African Children’s Choir travel the world performing songs that ring with hope and promise, raising money for their own education and that of thousands more needy children. They perform May 12 at the Attucks Theatre in Norfolk.

Sitarist Anoushka Shankar, daughter of the great Ravi Shankar and a star in her own right, will perform April 16 in Norfolk’s TCC Roper Performing Arts Center.

The Virginia Arts Festival is proud to be part of what makes Norfolk great. Visit the world this spring without ever leaving Norfolk.

Virginia International Tattoo A tradition since the beginning of the Virginia Arts Festival, the Virginia International Tattoo honors a military tradition that dates back centuries, bringing military bands and performers from around the world to perform in Norfolk, a city with a proud military history. The Virginia International Tattoo has grown to become one of the largest such celebrations in the world, and has been designated a “Top Internationally Known Event” and one of the “Top 100 Events in North America” by the American Bus Association.

The Virginia International Tattoo will bring more than 850 performers from Canada, the Netherlands, the Republic of Korea, Russia, the United Kingdom and the United States to Norfolk’s Scope Arena in an awe-inspiring display of music and might, April 30, May 1 and May 2.

The Clay and Jay Barr Education Center to open in 2010

City of Norfolk 2010 Annual Report

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Port & Intermodal

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After a year that saw a 16% drop in cargo volume, the Port expects a 6.3% increase in business this year, and predictions are for container traffic to triple over the next 20 years.

As the only East Coast harbor with channels deep enough to accept super-container ships, the Port continues to plan for growth. Work on the Craney Island Expansion Terminal — a $2.2 billion project — got under way last fall after receiving its first federal appropriation. This qualifies it for federal stimulus construction funding and for future funding.

For Norfolk Southern, 2010 will mark the opening of the Heartland Corridor, a new gateway for double-stack container traffic moving between Virginia ports and the Midwest. In what was the biggest engineering project taken on by any railroad in modern times, NS raised the height of 25 tunnels and 28 overhead obstructions in Virginia and West Virginia. The Heartland Corridor will slice 230 miles from current routes, improving transit time between Norfolk and Chicago by up to a day. Completion of the final tunnel is expected in September and benefits begin immediately, making Norfolk’s Port more competitive and giving localities along the corridor access to world markets.

Norfolk International Terminal

Stacked containers

Warehousing and Distribution Network Norfolk has more than 450 warehouse buildings totaling more than 17.5 million square feet and approximately 750 industrial buildings delivering more than 23.7 million square feet of space. All of our warehouse and industrial spaces are in close proximity to the Port. The region hosts one of the country’s largest geographic foreign trade zones (FTZs) with 15 sites and 3 subzones.

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City of Norfolk 2010 Annual Report

Craney Island

Business

R

Recent newspaper articles have reported on Ford Motor Company discussions with the Jacoby Group, an Atlanta company, for redevelopment of the Norfolk assembly plant site. The Jacoby Group is exploring reuse of the property as an “Alternative Energy Park” designed to attract wind, solar and other cutting-edge energy businesses. During his State of the City address, Mayor Paul Fraim reported that a contract has been entered into between Ford and the Jacoby Group for purchase of the entire 100-plus-acre site, with a closing expected as early as this September.

During the event, the Jacoby Group’s chairman and CEO, Jim Jacoby, and John Borden, the firm's general counsel, received a warm Norfolk welcome from the audience. “This is great news for the city, and could not be more timely,” said Mayor Fraim.

The former Ford assembly plant has a total land area of 109 acres of industrially zoned waterfront, and rail-served land with approximately 2.6 million square feet of manufacturing facilities, with convenient access to Indian River Road, Interstate 464 and

Ford Plant

During his State of the City address, Mayor Fraim reported that a contract has been entered into between Ford and the Jacoby Group for purchase of the entire 100-plus-acre site, with a closing expected as early as this September.

Interstate 64. Well served by Norfolk Southern, the plant has 1,500 feet fronting the Eastern Branch of the Elizabeth River. A 450-foot concrete pier has been constructed to the barge-depth channel, which is approximately 14 feet deep.

Dr. Lucy’s

Founded by Jim Jacoby in 1975, the company has expanded its focus from initial endeavors in ‘traditional’ retail center development to broader projects that embrace and promote environmental stewardship. Initiatives include mixed-use development, geocommunities and greenspace preservation, as well as ventures in healthcare research, environmental and alternative waste-to-energy technology, and new educational tools.

What began as a mother’s tasty recipe for her child with severe food allergies has developed into a delicious alternative for people with or without special dietary considerations. Locally based, Dr. Lucy’s LLC bakes Lucy’s gluten-free, allergyfriendly cookies. Made without milk, eggs, peanuts or tree nuts, the cookies are now available in more than 7,000 stores across the U.S. including Starbucks, Whole Foods Market, Farm Fresh, Harris Teeter, Stop & Shop/Giant and many other grocery and natural food stores.

Dr. Lucy’s LLC experienced explosive growth in 2009 and the success continues.

The company went from employing 23 employees in August 2009 to 42 employees today, and has moved to a bakery space twice the size of their original space—just over 12,000 square feet. In addition, its production has grown by more than tenfold.

This is impressive growth for a company whose cookies have only been on the retail market for a little over two years.

The company was founded and is run by Dr. Lucy Gibney and her husband Paul, both board-certified emergency physicians. For more information on the company and its products, visit their Web site at drlucys.com.

City of Norfolk 2010 Annual Report

17

Business

Norfolk’s 50 Largest Employers 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

U.S. Department of Defense Norfolk City School Board Sentara Healthcare City of Norfolk Old Dominion University, Norfolk Children’s Hospital of The King’s Daughters Norfolk State University Medical College of Hampton Roads Norshipco Postal Service Walmart Portfolio Recovery Association Bank of America Card Services Corp.

Virginia International Terminal U.S. Navy Exchange Maersk Line Ltd. United Services Automobile Association

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.

28.

29.

30.

31.

32.

33.

34.

Bon Secours DePaul Medical Center U.S. Department of Homeland Defense Sentara Health Management Tidewater Community College Farm Fresh ODU Research Foundation Tidewater Wholesale Grocery American Funds Service Co. The Titan Corp.

CMA CGM America McDonald’s Virginia Wesleyan College Bank of America Norfolk Naval Station Colonnas Shipyard 7-Eleven The Virginian-Pilot

35.

36.

37.

38.

39.

40.

41.

42.

43.

44.

45.

46.

47.

48.

49.

50.

CooperVision Inc. Fleet and Industrial Supply Center Electronic Data Systems Corp.

South East Public Services Authority of Virginia Trader Publishing Co. Lake Taylor Hospital Marine Hydraulics International Food Lion Virginia Electric & Power Co. Inc. CP&O LLC Transit Management Co. Clark Nexsen Owen Barbieri Personal Touch Home Care Inc. Metro Machine Corp.

Zim Norfolk Redevelopment & Housing Authority

Source: Virginia Employment Commission, Quarterly Census of Employment and Wages (QCEW), 2nd Quarter (April, May, June) 2009.

Business & Technology Parks Interstate Corporate Center This 17-building office complex with a park-like campus offers a variety of leasing opportunities with immediate I-64 access. More than 150 international, national and local firms are tenants of Interstate Corporate Center, including Sentara Healthcare, Hampton Roads Technology Incubator, Xerox Corp., Unisys, Geico, Harris Publishing and Essex Bancorp. The Tide, Norfolk’s light-rail transit system, will serve this area in late 2010.

Norfolk Industrial Park One of the region’s largest business parks with approximately 350 acres fully developed with more than 300 businesses. Major tenants include Titan America, Military Distributors of Virginia, General Foam Plastics Corp., Bauer Compressors Inc., Cox Communications Hampton Roads, GE Water and Process Technologies, Vanguard Industries, Pepsi Bottling Group and Mama Kayer’s Bakery. Virginia Beach Boulevard, now a major six-lane artery serving the park, has recently been widened near the Military Highway (Route 13) interchange.

Norfolk Commerce Park The Norfolk International Airport Landmark Aviation and air cargo facilities are adjacent to the main entrance of this busy commerce center. Located off Military Highway, a principle corridor, at I-64 and Norfolk International Airport. Major tenants include American Funds Service Co., Northrop Grumman Shipping Systems, Personal Touch Homecare, Raytheon Technical Service, SAMSKIP USA, Federal Express and the U.S. Coast Guard. Served by several hotels.

Central Business Park This 30-acre park is overflowing with location perks. New properties deliver crafted space for businesses that desire a central location, increased distribution and logistics handling capabilities, and a suburban setting tucked away within a commercial corridor. It’s close to I-64 and central to Norfolk International Terminals, Norfolk Naval Station and Little Creek Amphibious Base.

Old Dominion University: Innovation Research Park & University Village This 75-acre mixed-use development includes student housing, retail shops,

18

City of Norfolk 2010 Annual Report

university sports facilities and a SpringHill Suites Hotel. Tenants in the Innovation Research Park Phase I include Mid-Atlantic Regional Spaceport, The Center for Coastal and Physical Oceanography, EVMS Health Services, and the Virginia Applied Technology and Professional Development Center. Phase II opened in September 2009 and houses the Frank Reidy Research Center for Bioelectrics.

The Lake Wright Executive Center This premier location off I-64 offers frontage on Military Highway and convenience to the airport for competitive advantage. Tenants include CMA CGM, ZimAmerican Shipping, USAA, Virginia Oncology, and Twin Oaks I and II office buildings. Within eight developments are nearly 600,000 square feet of existing rental building area. Hotels are within the park and surrounding area. Lake Wright East is a proposed new development by the Economic Development Authority of Norfolk.

Midtown Industrial Park This location delivers proximity to Downtown, easy interstate access and retail services. Major tenants include Hampton Roads Transit, Baker Roofing Inc., Arcet, Surface Technology Corp., Coca-Cola Bottling and Onelife Fitness. NRHA’s neighborhood revitalization efforts have paid off in this Conservation District.

Norfolk State University RISE Campus The first building in the RISE Campus, the Marie V. McDemmond Center for Applied Research, is open and anchors graduate-level education and training. Tenants include the NSU Center for Gaming and Simulation, the NSU Center for Materials Research and the NSU Division of Research and Technology. NSU will be served by The Tide, Norfolk’s light-rail transit system. It has a station adjacent to campus.

Riverside Corporate Center This corporate park is located off Military Highway south of I-264 and is adjacent to the new light-rail line with a station currently under development. Tenants include Virginia Eye Consultants, Port Folio Recovery, First Hospital Corp. and other high-profile companies.

The Norfolk Economic Development Authority

T

The mission of the Economic Development Authority (EDA) is to create jobs, maximize the utilization of Norfolkâ&#x20AC;&#x2122;s real estate, foster business capital investment, increase revenue by growing the tax base, focus on efforts to build on the strengths and the needs of neighborhoods, and support minority and small businesses.

The EDA is a political subdivision of the Commonwealth of Virginia created by the City to acquire, own, lease and dispose of properties to promote industry and induce businesses to locate and remain in Norfolk. The EDA is authorized to issue revenue bonds to finance facilities for non-profits, manufacturers, and businesses in an Empowerment Zone. Neither the EDA nor the City has any liability under the bonds.

Liability is assumed by the enterprises for which the facilities are constructed.

TIVEST Development and Construction is developing the Midtown Office Tower that will allow for the consolidation of the S.T.O.P. organization as well as provide space for additional tenants. The 200,000-square-foot mixed-use project broke ground Feb. 26, 2010.

Tax Base Diversification

3.2% 5.4%

7.2%

0.6%

4.7%

1.6%

9.2%

Norfolk has been successfully growing and diversifying its tax base and housing stock. Excluding the military, the City's employment base is diverse, with no single sector accounting for more than 15% of total employment.

3.9% 1.9% 11.6%

10.0%

4.5% 8.4% 2.7%

Accommodation and Food Services Construction Health Care and Social Assistance Manufacturing Public Administration Transportation and Warehousing

15.0% 4.9%

1.8%

Administration and Waste Services Educational Services Information Other Services, Excluding Public Administration Real Estate and Rental Leasing Utilities

2.3%

Arts, Entertainment and Recreation Finance and Insurance Management Companies and Enterprises Professional and Technical Services Retail Trade Wholesale Trade

City of Norfolk 2010 Annual Report

19

Business

The Business of Sports Tides in the Major Leagues

A Norfolk Location is a Competitive Advantage

The following 24 members of the 2009 Norfolk Tides also appeared on a major league roster during the 2009 regular season, and only outfielder Joey Gathright appeared with a major league club other than the Orioles. (* designates made major league debut)

Norfolk has seven business parks, two university parks and vibrant Downtown office space. In Downtown Norfolk, there are more than 100 office buildings delivering more than 5 million square feet of space. The current vacancy rate is 11.2%. For the first time in many years, competitive full-floor premium or existing office space will be available with the opening of the Wells Fargo Center.

Matt Albers Jason Berken* Jeff Fiorentino Chris Lambert Kam Mickolio Chris Ray Oscar Salazar Justin Turner*

Michael Aubrey Alberto Castillo Dave Hernandez* Radhames Liz Chad Moeller Nolan Reimold* Dennis Sarfate Chris Waters

Brad Bergesen* Joey Gathright Rich Hill Bob McCrory Lou Montanez Guillermo Rodriguez Chris Tillman* Matt Wieters*

Courtesy of Rob Harrison

Eastern Regional High School Basketball

Attendance Report Despite losing seven openings to rain in 2009, the Tides once again ranked among the leaders in total attendance in all of Minor League Baseball, finishing in the top 30 out of more than 175 franchises.

April – 38,554 (4,819 average, 8 openings, 1 rainout) May – 50,408 (5,601 average, 9 openings, 3 rainouts) June – 96,644 (6,443 average, 15 openings, 1 rainout) July – 82,564 (6,351 average, 13 openings) August/September – 118,983 (5,949 average, 20 openings, 3 rainouts) Season Total – 387,153 – 5,966 fans a game (65 openings, 8 rainouts)

20

City of Norfolk 2010 Annual Report

T

The City of Norfolk and Norfolk SCOPE hosted the area’s public high school’s Eastern Regional Basketball Tournament for Boys and Girls for the first time ever Feb. 24, 25, 27 and March 1, 2010. This event had been previously held at Portsmouth’s Churchland High School but had literally outgrown the facility. With a capacity of just over 3,500, Churchland officials had been forced to turn some fans away in years past.

No one was certain if the crowds would come to a new venue or how the schools and players would feel playing in a larger venue.

Whatever doubts people may have had prior to the tournament were quickly erased when fans showed up in record numbers all four days of the event, capped off with a crowd of 6,400 at Monday’s championship games.

The Princess Anne girls defeated the Lake Taylor girls in their final and the Norcom boys defeated the Maury boys in their final. All four teams advanced to the state tournament. The Lake Taylor girls won the state championship by defeating Princess Anne.

By all accounts, including the feedback from the athletic directors, the players and coaches, the media and most importantly the fans, the move to SCOPE was a positive one and a win-win for the region.

More fans and families of participants got to attend the event and the players got to compete in a big league atmosphere.

The tournament will return to SCOPE next year.

Hospitality Industry

W

While cities around the country experienced major reductions in hotel occupancy, Norfolk was one of the few cities that did NOT experience reductions greater than 10%. This is due in large part to the efforts of the Convention and Visitors Bureau, which ended the fiscal year by achieving 106% of its booking goals. Tourism and conventions employ 7,000 workers in Norfolk and deliver $700 million in revenue.

Existing Norfolk Hotels Hotel

Address

152

Navy Lodge Norfolk

7811 Hampton Blvd.

294

90

Norfolk Airport Hotel

880 N. Military Highway

200

8051 Hampton Blvd.

119

120

Quality Inn Norfolk Naval Base

520 E. Plume St.

140

Quality Suites and Sleep Inn

6280 Northampton Blvd.

234

Crowne Plaza Hotel

700 Monticello Ave.

204

Ramada Inn

1450 N. Military Highway

130

Days Inn

5701 Chambers St.

160

Ramada Limited

515 N. Military Highway

149

Days Inn Little Creek

7950 Shore Drive

105

Residence Inn by Marriott

1590 N. Military Highway

130

Econo Lodge

865 N. Military Highway

73

Residence Inn By Marriott

225 W. Brambleton Ave.

160

Econo Lodge

9601 4th View St.

70

Savannah Suites

5649 Lowery Road

126

Economy Inn

1050 Tidewater Drive

72

Sheraton Norfolk Waterside

777 Waterside Drive

468

Econo-Travel Motor Hotel

3343 N. Military Highway

48

Springhill Suites by Marriott

4500 Hampton Blvd.

114

Express Inn

111. East Ocean View Ave.

48

Springhill Suites by Marriott

6350 N. Newtown Road

131

Hampton Inn Norfolk Naval Base

8501 Hampton Blvd.

Super 8

1010 W. Ocean View Ave.

68

Super 8 Motel

7940 Shore Drive

Hampton Inn and Suites

1511 USAA Drive 1500 N. Military Highway

247

The Tazewell Hotel and Suites

245 Granby St.

Hilton Norfolk Airport Holiday Inn Express

1157 N. Military Highway

104

Total Rooms

Holiday Inn Select

1570 N. Military Highway

147

La Quinta Inn and Suites

1387 N. Military Highway

72

Under construction or in development

M D International Inn

1850 E. Little Creek Road

62

Hampton Inn and Suites

120 W. York St.

133

Marriott Waterside Norfolk

235 E. Main St.

405

Airport

108

Motel 6

853 N. Military Highway

151

Homes 2 Suites Westin Hotel and Conference Center

Granby and Main St.

301

Hotel

Address

Americaâ&#x20AC;&#x2122;s Best Value Inn

235 N. Military Highway

Best Western Holiday Sands Inn and Suites

1330 E. Ocean View Ave.

Candlewood Suites Hotel

5600 Lowery Road

Courtyard by Marriott

Rooms

117 88

Rooms

106 58 5,162

Total rooms under construction or in development:

542

City of Norfolk 2010 Annual Report

21

Downtown Norfolk

Development in Downtown Norfolk

L

Last year, as other cities across the country saw projects abandoned and development activity grind to a halt, Norfolk had more than $1.1 billion of construction under way, much of that occurring Downtown.

As we prepare for the opening of the Wells Fargo Center this summer, it is encouraging that Class A vacancy rate is only 9.2% as of the fourth quarter of 2009. This is a strong indicator of Downtownâ&#x20AC;&#x2122;s desirability as a place for business and investment.

Another very positive indicator was the December announcement that South Carolina-based U.S. Development had purchased the Union Mission building. Over the next 18 months, it will invest $22 million converting it into apartments priced to attract young workers. This property will be called The Rockefeller.

Great reading for Downtown enthusiasts!

Visit the Planning Departmentâ&#x20AC;&#x2122;s Web site at www.norfolk.gov to download a copy.

22

City of Norfolk 2010 Annual Report

U.S. Development

Ice skating at MacArthur Center

The Savoy Hotel

U.S. Development is a real estate development company headquartered in Columbia, S. C. that specializes in historical landmark transformation of residential, mixed-use, commercial and retail properties, specifically properties in the Southeast region of the United States. The company focuses on opportunities that deliver a newfound energy where people want to live near their work, entertainment, health care, arts and culture.

U.S. Developmentâ&#x20AC;&#x2122;s Norfolk debut is a grand slam. We have a major new investment thatâ&#x20AC;&#x2122;s bringing middle-income housing to Downtown, preserving a registered historic landmark and improving services for the homeless. U.S. Development is in final discussions for the purchase of 161 Granby St. at the corner of City Hall Avenue. This rehabilitation of the old Savoy Hotel will be a major step forward for all of Downtown.

City of Norfolk 2010 Annual Report

23

Downtown Norfolk

Proposed Downtown Multimodal Facility

N

Norfolk’s vision for the future of Downtown “Our case for high-speed rail was includes a fully integrated transportation hub for greatly strengthened by its connection high-speed rail, light rail, intercity buses, intracity to light rail at Harbor Park.” buses and ferry operations. The Norfolk Southern — Mayor Paul Fraim main rail line runs adjacent to the site and would receive upgrades for high-speed rail. The current site has a light-rail station, immediate interstate access and a ferry landing. Future mixed-use development calls for ships, offices and residences, nestled next to the waterfront stadium on the Elizabeth River.

Wells Fargo Center

24

City of Norfolk 2010 Annual Report

The interactive advertising agency, Grow Interactive, will move its operations to the historic Altschul's building on Granby Street this June following its restoration. In commenting on the move, Grow president Drew Ungvarsky said it's important for his business to be in a vibrant urban setting to attract the talent and workforce he employs.

Downtown Major Projects Court Complex • $108 million investment • General District Courts, Circuit Courts, Juvenile and Domestic Relations Courts

Fort Norfolk Plaza • • • •

$70 million investment 19,000-square-feet retail 200,000-square-feet medical office space 800 parking spaces

MacArthur Memorial Expansion Project • $6 million investment

Norfolk Westin Hotel and Conference Center • $150 million investment • 50,000-square-foot conference center • More than 300 guest rooms

Proposed Multimodal Facility at Harbor Park • High-speed rail, light rail, bus transfer and other facilities

The Rockefeller • Union Mission property • $22 million investment • 90 to 100 apartments

Savoy Apartments • Former Savoy Hotel • 161 Granby St.

Slover Memorial Library • $50 million investment • 108,000 square feet • Construction to begin in 2011

Former Altschul’s building

TCC Student Center • $17.6 million investment

Virginia Arts Festival: Clay and Jay Barr Education Center • $7.5 million investment • Opening Fall 2010

Wells Fargo Center • • • • •

$180 million investment 258,000-square-feet office space 50,000-square-feet retail space 121 apartments 1,858 parking spaces

City of Norfolk 2010 Annual Report

25

Transportation

Transportation: The Need for Speed

M

Much has been written about The Tide light-rail project. Obviously, the financial implications for the City are the Council’s primary concern. Once the full extent of the recent cost overruns was known, the City moved forward to stop the financial bleeding and re-establish credibility at Hampton Roads Transit in this project, and negate or minimize any financial impact on the City’s budget.

The city continues to work with VDOT on a second Midtown Tunnel, the most congested two-lane road east of the Mississippi. In January, an interim agreement was signed to advance preliminary work on the project. If a comprehensive agreement is reached, a new tunnel and the Martin Luther King Jr. freeway extension could be completed by 2015.

With the hiring of Phil Shucet, the highly regarded former VDOT commissioner as interim CEO, Norfolk has moved quickly in the direction of reestablishing credibility at HRT. He is already at work trimming the cost to complete the project. In large measure the budget gap will be filled by state and federal funds. There also should be money at HRT to address some costs.

However, as was reported in the Feb. 19, 2010, edition of The Virginian-Pilot, “Even with the

26

City of Norfolk 2010 Annual Report

latest overruns, the project remains the cheapest among recent rail projects in the country,” stated Mayor Paul Fraim.

All of this is to say that, to date, the City’s cost has not increased since Phil Shucet the amended light-rail budget was presented in December 2008. Shucet's stated goal is to hold the city harmless.

In the meantime, keep in mind the Tide was never envisioned as a Norfolk-only project. It has always been intended as a starter line for a regional light-rail network extending from Williamsburg to the oceanfront.

As incredible as it seems, the highway transportation situation is even bleaker than it was last year. Practically speaking, this means more congestion, more delays, more lost business, less road maintenance and little prospect for improvement.

The situation is particularly acute for the south side of Hampton Roads where geography impedes the free flow of traffic.

In the absence of road construction funding, rail — both light and high speed — offers a real and achievable opportunity to transform transportation in Hampton Roads, and we should embrace that.

With each passing year, with each increase in the price of oil and with every new EPA clean air regulation, the advantages of rail become clearer. Efforts

by Virginia Beach to extend light rail to the east, and the decision by the Chesapeake City Council to apply for federal funding to study extending light rail to its residents are both welcome developments.

Funding is also being sought to begin studies for connecting light rail in Norfolk to the Naval Base.

November’s vote by the Hampton Roads Transportation Planning Organization to bring a high-speed passenger rail connection to South Hampton Roads was a major step forward in regional cooperation. Just as important was the unified support a Southside connection received from more than 1,000 attendees from across the region at January’s public hearings, which included leaders and citizens from the Peninsula.

Momentum is building for running conventional passenger trains between Norfolk and Richmond as an interim step to getting high-speed rail.

The Tide campaign

The result is that the Commonwealth Transportation Board voted unanimously to endorse a high-speed passenger rail route between Norfolk and Richmond. This is enormous good news for us.

The State will now apply for federal stimulus funds to pay for the route.

The budget approved by the General Assembly waives a 30% match on state Rail Enhancement Funds, clearing a financial hurdle that will allow construction to begin later this year and for trains to run within three years. â&#x20AC;&#x201D; The Virginian-Pilot, Hampton Roads, March 21, 2010

City of Norfolk 2010 Annual Report

27

Transportation

High-Speed Rail to Norfolk Local Consensus

Downtown to Downtown Connection

•

The Hampton Roads Transportation Planning Organization (HRTPO) on Oct. 30, 2009, unanimously adopted a resolution which endorsed the designation of the NS/Route 460 Corridor as the “High-Speed Rail Corridor” to Hampton Roads.

•

One of the primary advantages of intercity passenger rail service is the ability to link major business centers directly unlike airline travel centers, which are generally located outside of cities and require a transfer of transportation mode at both ends of the trip.

•

The State must accelerate the completion of all federally required studies so that the Region can be in a position to successfully compete for the now available Federal funds.

•

Any new proposed service between Hampton Roads and Richmond must match the proposed eastern end of the route with the recent reopening of Main Street station in Downtown Richmond on the western end so that the advantage of rail transportation serving central business districts directly can be maximized.

Benefits •

•

•

•

High-speed rail will have significant economic and quality of life benefits for connected communities and regions across the country by offering a viable, environmentally friendly and energy-efficient transportation alterative.

New investments in improved intercity passenger rail will promote economic development, job creation, and enhanced travel and tourism opportunities.

A modern high-speed passenger rail system will offer a viable emergency evacuation alternative for Southside Hampton Roads citizens in the event of a hurricane or other major event necessitating mass evacuation.

It is critically essential that the Hampton Roads Region is directly connected to the emerging national high-speed rail network to ensure the region’s continued economic competitiveness.

Directly Serving Population and Employment Centers •

New high-speed rail services must connect as directly as feasible to major centers of population and employment in the Hampton Roads region.

•

This issue is made even more significant given the great difficulty in planning timely and efficient crossings of the Hampton Roads harbor due to severe congestion.

•

Primary factors favoring the selection of the Southside route for high-speed rail to Downtown Norfolk include: ■

■

Timing •

•

28

The new national strategic plan for high-speed rail proposes the rebuilding of the country’s existing rail infrastructure into a new robust network of high-speed passenger rail corridors comparable to the European HighSpeed Passenger Rail System.

■

Already, $8 billion has been allocated in the American Reinvestment and Recovery Act of 2009 as a down payment on this new national high-speed passenger rail system with an additional $1 billion per year for the next five years in the President’s Proposed FY 10 Budget for the most qualified high-speed rail projects.

■

City of Norfolk 2010 Annual Report

■

■

The five Southside cities have 65% of the region’s population, with 1.1 million people.

The Southside contains two of the most densely populated localities in the region: Norfolk, with more than 4,000 persons per square mile, and Portsmouth, with more than 3,000 persons per square mile.

The Southside includes more than 400,000 housing units, which is 63% of all homes in the region.

There are nearly 700,000 jobs based on the Southside, including the military which comprises 67% of all jobs in the region.

More than 75% of the region’s office space is located on the Southside (21.1 million square feet of office space).

In fact, the Downtown Norfolk office market alone has nearly 5 million square feet of office within 0.61 square miles.

Hampton Roads Passenger Rail Routes

■

■

■

More than 79% of the 154,425 active duty military and Federal civil service workers based in the Hampton Roads region are located on the Southside.

Of the top five most frequently visited cities in the state, Virginia Beach ranks second after Richmond, Williamsburg ranks third, and Norfolk ranks fourth.

Visitors spent more than $1.1 billion in Virginia Beach during 2007, compared to just under $500 million in Williamsburg. Travel-related employment is also higher in Virginia Beach, with almost 12,000 travel-related jobs in Virginia Beach.

Compatibility with Local Plans and Infrastructure •

The Hampton Roads intercity passenger rail terminal will necessarily become a major transportation

hub and destination. It must have excellent and direct connections to both the regional transit and highway networks in order to leverage the investment being made.

•

The proposed Norfolk rail terminal adjacent to Harbor Park will be directly linked to the Tide light rail system providing excellent connection opportunities for travelers, especially as the system is expanded both to the east and the north in the future.

•

The City of Norfolk is also advancing plans for a major intermodal facility concept for the proposed station site which will integrate local bus and intercity bus services at the same location as well. No other location in Hampton Roads will be as well connected to the regional transportation system as the Norfolk station location.

City of Norfolk 2010 Annual Report

29

Transportation

Commonwealth Transportation Board Selects Alternative 1 for Richmond/ Hampton Roads Passenger Rail Project About the Virginia Department of Rail and Public Transportation The Virginia Department of Rail and Public Transportation (DRPT) is the state agency for rail, public transportation and commuter services in Virginia. DRPT has three business areas: rail, transit, and congestion management that help improve the mobility of people and goods while providing more transportation choices.

On Feb. 17, the Commonwealth Transportation Board (CTB) selected Alternative 1 as the preferred alternative for the Richmond/Hampton Roads Passenger Rail Project. Alternative 1 will bring enhanced passenger rail service to the Hampton Roads region with three conventionalspeed (79 mph) trains along the Peninsula/CSXT route in the I-64 corridor and six higher-speed (90 mph) trains along the Southside/NS route in the Route 460 corridor.

The decision was based on the results of a Tier I Draft Environmental Impact Statement (EIS) completed by the DRPT and the Federal Railroad

30

City of Norfolk 2010 Annual Report

Administration (FRA), in addition to the public comments received. During the public comment period from Dec. 23, 2009, to Feb. 11, 2010, DRPT held three public hearings in Richmond, Newport News and Norfolk to gain public feedback on the best option for enhanced passenger rail service between Richmond and Hampton Roads.

Fifty-eight percent of the public comments received were in support of Alternative 1.

Stations on the Peninsula route include the existing Richmond Main Street Station, Williamsburg, and Newport News stations.

Stations on the Southside route include the existing Richmond Main Street and Petersburg stations, and new stations in Bowers Hill and Downtown Norfolk. Today, there are two conventional-speed trains on the Peninsula route and no trains on the Southside route.

Preliminary cost estimates include $475.4 million in capital improvements and $80 million in annual operating costs, with annual ridership projected at up to 1,110,100 passengers. The estimated travel time between Richmond and Newport News is approximately one hour and 11 minutes, and the travel time between Richmond and Norfolk is estimated at one hour and 35 minutes.

DRPT will apply for federal funding to advance the selected alternative. In addition, DRPT will complete the Tier I Final EIS document in order to achieve a federal Record of Decision later this year. The FRA Record of Decision will determine the next steps in the federal review process.

Federal funding and annual operating funds are critical components of the projectâ&#x20AC;&#x2122;s financial plan.

Virginia currently has no dedicated source of operating funds for intercity passenger rail service.

Citizen Engagement

Design Consultant Team Master Plan Principles

The Samuel L. Slover Memorial Library

A

A nationally recognized New Haven, Conn. architectural firm has been selected to lead the creative team that will design the new main library in downtown Norfolk.

Newman Architects was selected following a six-month search which began when 20 companies responded to the city’s request for proposals. During almost 50 years, Newman Architects has established an enviable reputation for the design of new buildings and the restoration and renovation of existing buildings. The founder of the firm, Herbert Newman, is the recipient of numerous awards, including the prestigious Thomas Jefferson Award for Public Architecture. The Seaboard Building, which was built in 1900, will serve as the centerpiece of the new library. It is currently serving as the interim main library.

The city is convinced that Newman Architects can develop a plan to combine the historic integrity of the Seaboard Building with a seamless expansion creating a stateof-the-art, highly efficient library complex.

The $20 million dollar gift from Frank Batten Sr., announced in 2008, allowed the City to accelerate the planning and construc-

tion of the downtown library by at least 10 years.

Batten was a man of extraordinary generosity who believed that investing in the lives of people represented a meaningful investment in the future well-being of our communities. This commitment was the cornerstone of Batten’s remarkable life and the guiding principal of his philanthropic endeavors.

In keeping with Batten’s wishes, the library will be named in honor of Colonel Samuel L. Slover, a former Norfolk mayor and the founder of Landmark Communications who raised Batten after the death of his father.

Batten also challenged the City to use his gift to build the most technologically advanced library in the state.

Providence Associates, a library consulting firm, has been chosen to help develop the program and building plan for the Slover Memorial Library. Construction of the library could begin as early as 2011.

The combination of the restoration of the Seaboard Building and the construction Continued on page 32

Ray Gindroz, Urban Design Associates • A Landmark in the City • Dignified and Inspiring • Warm and Welcoming • Different Spaces for Different Uses Preliminary Concepts & Architect of Record Herbert Newman, Newman Architects • Seaboard • A Civic Gesture • Connectivity • Ornament • The Forum and the Wall • Place-Making • The Developing Process Planners & Programmers Library Services & Facility Laura Isenstein, Providence Associates Technology – Audio Video Programming Mark S. Valenti, The Sextant Group Local Architect Barry Moss, Tymoff+Moss Engineers TBA based in Norfolk

City of Norfolk 2010 Annual Report

31

Citizen Engagement

Waterside Festival Marketplace

The Samuel L. Slover Memorial Library Continued from page 31

of the new structure will create a national model for blending an historic building with the most up-to-date library technology giving Norfolk citizens the latest in technology while preserving precious memories of the past.

The 108,000-square-foot Slover Memorial Library will consist of the interim Norfolk Main Library (Seaboard Building), located at 235 E. Plume St. and the new structure. The new building will be constructed next to the Seaboard Building on the site of the HIPAGE building, which will be demolished at a later date.

The Seaboard Building also will undergo a complete renovation of its interior and infrastructure. In addition to the Slover Memorial Library, a 30,000-square-foot Library Service Center will be off-site and house the Library’s administrative offices and support services. By combining the square footage of Slover Memorial Library with the Service Center, the total space increases to 138,000 square feet. This compares well to the 77,000 square feet of space that was in the former Kirn Memorial Library. That building was demolished last year to clear the way for the construction of light rail.

32

City of Norfolk 2010 Annual Report

The symbol of Downtown’s revitalization is The Waterside Festival Marketplace, but it is a facility in transition. As part of a process for reinventing Waterside, Norfolk has developed a survey for gathering input from the community. It has been placed on the City's and Waterside’s Web sites, mailed to as many civic organizations as we could identify and will be published in the media. Charettes and open forums will follow in the hope of seeking as much public input as possible about the future of Waterside. A copy of the survey is available at www.norfolk.gov.

Citizen Outreach Methods & Opportunities for Input: • Surveys (Telephone, Mail, Online, Exit) • Focus Groups of target populations • Community conversations • Interactive online Slover Memorial Library “blog” • Interviews (face to face, telephone) with key community leaders

Southside Plan

A $24.5 million commitment to the Southside Neighborhood Plan has made it possible to acquire important properties for future development, demolish 35 blighted properties, repave all the streets, upgrade the water and sewer systems and begin work on a new aquatics center. To date, this has leveraged more than $9 million in private investment.

Central Hampton Boulevard In the spring, the council will consider the Central Hampton Boulevard Plan prepared for portions of Lambert's Point, Kensington, University Village and Highland Park. The Central Hampton Boulevard Area is defined as follows: Colley Avenue on the east, Colley Bay on the north, Bowdens Ferry Road and Hampton Boulevard on the west, and the railroad tracks on the south.

City of Norfolk 2010 Annual Report

33

Real Estate

Norfolk Real Estate Overall

In the past four years, the assessed value of all real estate increased nearly 60% from roughly $12 billion to $19 billion.

Growth in Assessed Value Taxable and Non-Taxable Assessed Value

45.0% 22.7%

2.2%

$20.0

40.0% 35.0%

20.8% $ in billions

30.0% 15.2%

$15.0

$10.0

4.5%

3.0%

2.6%

4.0%

4.3%

4.9%

5.3% 5.3%

2.2%

0.8%

6.9% 7.3%

25.0%

8.3%

4.7%

8.1%

4.5%

7.1%

3.8%

20.0% 15.0% 10.0%

$5.0

5.0% $0.0 1999

2000

2001

2002

2003

Taxable

2004

Non-Taxable

2005

2006

2007

2008

2009

Non-Taxable as a Percent of Total

Source: Comprehensive Annual Financial Report, For Fiscal Year Ended June 30, 2009.

A 132% increase in total taxable assessed value during last 10 years Percentage of non-taxable properties decreased from 42% in 2000 to 33% in 2009

34

City of Norfolk 2010 Annual Report

0.0%

Non-Taxable Assessed Value as a % of Total Assesssed Value

$25.0

Norfolk Residential Real Estate

I

In the last four years, more than a half-billion dollars of public and private money was invested in nearly 4,000 new housing units successfully achieved with strategic housing initiatives.

East Beach has been chosen as the site for Tidewater Builders Association’s Fall 2010 Homearama, Oct. 2-17. The show will feature up to 16 homes along 24th Bay Street south of Pleasant Avenue. This will be the second Homearama in East Beach — the first in 2004 featured the original 16 homes in East Beach along 25th Bay Street, and was the most successful Homearama in TBA’s history.

Stable Housing Market Facts • Prices on newly constructed For Sale units ranged from $145,000 to $1,900,000 in 2009.

• The average sales price for all homes sold in calendar year 2009 was $208,700. The average sales price for existing homes was $197,300 (down 9%), and for new homes was $309,300 (down 16.2%).

• Overall home sales in 2009 were 1.6% higher than the previous year. Compared to 2008, the number of existing homes sold was up 3.7% (1,828 homes sold), and the number of new homes sold was down 13.4% (207 homes sold).

• Citywide, there have been a relatively low number of foreclosures: 680 foreclosures in calendar year 2009.

• Average days on market for all homes sold in Norfolk rose in 2009 to 91 days, from 85 days in 2008.

New Residential Construction From new development sites on the Chesapeake Bay to the exciting condominium and loft scene Downtown, new developments are attracting singles, couples, retirees and families who are swayed by the City’s many charms. $250

1,400 1,191

1,200

1,058

$200

1,000 815

766

800 597

600 398

400 242

543

491

462

$150

$100

309 $50

200 0

$0 1999

2000

2001

2002

2003

Number of Units

2004

2005

2006

2007

2008

2009

Estimated Value ($ in millions)

Source: City of Norfolk, Department of Planning Permit Tracking System. Data is by fiscal year.

Sources: Real Estate Information Network (REIN), compiled by the Office of Budget and Management; City of Norfolk Planning Department Permit Tracking System; and RealtyTrac.com.

City of Norfolk 2010 Annual Report

35

Real Estate

Permits time series summary by calendar year New housing units permitted

2004

2005

2006

2007

2008

2009

Single-family detached

321

353

293

240

182

123

Single-family attached

71

69

32

61

66

28

-

8

26

10

9

3

Two-family Structures

128

64

64

23

4

8

3- and 4-unit structures

50

49

12

16

0

0

200

670

118

0

560

418

-

60

118

-

Accessory Dwelling Units

5 or more family Residential improvements Units in Mixed-Use Structure Total New Housing Units

-

-

99

-

225

0

770

1,273

762

350

1,046

580

Units Demolished

1006

241

310

360

135

132

Net New

(236)

1,032

452

(10)

911

448

New Residential Projects

36

0

Name

Location

Type

Belmont at Freemason

Downtown Norfolk

234 Apartments

201 at Twenty-One

Ghent

244 Apartments

Southwind Apartments

Southern Shopping Center Area

120 Apartments

WestPort Commons

Depaul Hospital Area

12 Condominiums

Broad Creek Villas

Broad Creek

12 condos and 7 townhouses

The Franklin

Downtown

20 Condos

Widgeon Point

Norview

27 Townhouses

Wells Fargo Center

Downtown

Mixed-use Office building with 121 Apartments

River House Apartments

Llewellyn Avenue

194 Apartments

43rd Street Townhouses

Lamberts Point near ODU

51 Townhouses

Pointe East at Harbor Walk

East Ocean View

157 Condos

Village Gardens

Lamberts Point

40-units senior housing

The District at ODU

ODU

307 units of apartments for ODU students

Maplewoods at Olde Huntersville

Olde Huntersville

10 single-family attached homes

Bay Village Condos

East Ocean View

54-unit senior living condo community

Rockefeller Apartments (former Union Mission)

Downtown

90 to 100 apartments

Savoy Apartments

Downtown

TBD

City of Norfolk 2010 Annual Report

The Infinity pool at River House

Commercial â&#x20AC;&#x201C; Downtown Office Vacancy Rates 25% 1999 2000 20%

2001 2002

15%

2003 2004

10%

2005 2006

5%

2007 2008 2009

0% Class A

Class B

Distribution of Properties Downtown Office Class A Multi-tenant Class B Multi-tenant Class C Multi-tenant Subtotal Multi-tenant Owner-Occupied Total

Net Leasable Area (SF) 1,690,129 1,507,543 96,552 3, 294,224 869,950 4,164,174

Percent of Inventory 40.6% 36.2% 2.3% 79.1% 20.9% 100.0%

Source: ODU CREED 2009 Hampton Roads Real Estate Market Review & Forecast and CoStar Group, Inc.

Average Downtown Office Rents $25.00 1999 2000 $20.00

2001 2002

$15.00

2003 2004

$10.00

2005 2006

$5.00

2007 2008 2009

$0.00 Class A

Class B

City of Norfolk 2010 Annual Report

37

Real Estate

Assessed Value Downtown Property 153% Increase in 10 Years — Growing from $645 Million to $1.6 Billion $1,700,000,000 $1,600,000,000 $1,500,000,000 $1,400,000,000 $1,300,000,000 $1,200,000,000 $1,100,000,000 $1,000,000,000 $900,000,000 $800,000,000 $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Hampton Roads Ventures: Community Development • Hampton Roads Ventures is a community development investment firm organized by Norfolk Redevelopment and Housing Authority in 2003 to facilitate investment of private sector capital into underserved communities. It is a subsidiary of NRHA. The NRHA Board of Commissioners serves as the Board of Managers for HRV. • The principle investment vehicle is New Market Tax Credits (NMTCs), which are issued on a very competitive basis by the U.S. Treasury. Since 2003 HRV has secured $110 million in NMTCs, by far the most of any firm in Virginia.

• In the latest competitive allocation in November 2009, HRV received $60 million worth of NMTCs from the treasury, beating out some of the nation’s largest financial institutions.

38

City of Norfolk 2010 Annual Report

• NMTC investors can claim up to 39% in tax credits for seven years, provided they abide by regulations for investing in lower-income census tract areas.

• The mechanism can be as simple as investing in a community development entity such as HRV, which in turn, raises capital for investment. Or it can be a complex deal structured as debt and equity ventures based on the tax credits.

Successes: • HRV provided $4 million in NMTCs for the Attucks Theatre renovation.

This is the first time nationally NMTCs have been leveraged with historic tax credits in a commercial real estate deal.

• HRV leveraged $14 million in NMTCs for the Spring Hill Suites at ODU Village. This is the first time

nationally NMTCs were leveraged with tax exempt bonds in a commercial real estate transaction.

• HRV provided $11.6 million of NMTCs for Fort Norfolk Medical Tower. They are the financial linchpin of that transaction.

• HRV invested $700,000 in the NCP Federal Credit Union, shoring up the nonprofit in Berkley. The money will be loaned to low-income borrowers at low interest rates for vehicles, homes and commercial enterprises.

• Other Norfolk projects leveraged with NMTCs from HRV include the Berkley Shopping Center and a boatel in East Ocean View.

Public Private Partnerships

E

Economic Development is a tool used to enhance the economic stability of the community and thereby improve the service to and the quality of life for our citizens… That’s the long version.

The short version? a means to an end… with the “end” being new business, more jobs and more jobs choices, and more money to use to meet other City needs.

While most people agree on the end, what is often disputed, be it a project in Norfolk, Virginia Beach, or Detroit, is the means, particularly if it involves some form of incentive to a private developer or business.

In Norfolk, the City seeks to guide development through a series of long-range plans. For example, 30 years ago, a public/private partnership built Military Circle Mall, sparking development along Military Highway that continues to this day.

Sometimes, the City has waited for years for the right project to come along. Visitors to the City in the 1980s walked across blocks of surface parking lots where MacArthur Retail Center now stands. The parking lots held the space open as the City pursued developers, assembled land and rejected proposals that would have developed the site piece-meal. Finally City leaders interested an upscale retail developer.

But, to close the deal, the City agreed to construct two much needed parking garages (revenue bonds to be paid off by parkers), streetscaping and utilities, and secured a $33 million bank loan to construct and equip the Nordstrom anchor store (the loan is being paid off by rent and revenues).

The City total? Approximately $90 million. The private contribution? $200 million from the developer for construction of the mall.

Today, not only does MacArthur Center draw 12 million shoppers a year, the construction spawned a development boom in new office buildings, retail, condos, restaurants and theaters.

Similar “placeholder” spots are identified in the City’s long-range plan for sites throughout Norfolk – parking lots, outdated City building, cleared land, struggling neighborhoods – in key strategic places waiting for the right time or the right project to come along.

The result of City seed money (infrastructure or other funding) in each case brings new private investment and new jobs, new money for other City priorities and neighborhoods and new businesses and residential

opportunities, even residential tax reduction – just the “end” city leaders and residents had in mind. In 2005 development officials estimated more than $5 billion in private development in the past five years.

Ironically, as the City has seen increasing success attracting private investments, residents increasingly ask – “Why?” whenever the City finds it necessary to enter into a new partnership with a private developer.

Why give money at all? If it’s a good project, won’t it be built anyway?

Many buildings are constructed with little or no City investment. But, developers in Norfolk face many challenges. First, is the reality of a 66 square mile City that cannot legally expand its borders. Most of its land has been developed, torn down (and in 1776 burned down) and redeveloped many times.

The result of City seed money (infrastructure or other funding) in each case brings new private investment and new jobs, new money for other City priorities and neighborhoods and new businesses and residential opportunities, even residential tax reduction – just the “end” city leaders and residents had in mind.

According to Development Director Rod Woolard, building in an already developed area is more expensive and more difficult that building on vacant land, particularly downtown.

For instance, small, odd sized lots mean a developer has to construct a concrete, multi-story building with the added code requirements (such as high-speed elevators) than is called for in a three-or-four story building the same size along a highway in the suburbs, said Woolard.

Add to that, the City’s desire to implement its plans.

In key areas, Norfolk officials have sought to find the highest and best use for a location. While developers are increasingly willing to spend their own money, it is the specificity of the City’s expectations for a particular location that often drives the need, and its willingness, to enter into public-private partnership through something like a Performance-based Grant or other incentive.

City of Norfolk 2010 Annual Report

39

Neighborhoods

Church Street

M

More than $13 million has been invested in the Greater Wards Corner area since approval of the Comprehensive Plan. Last year, police presence and code enforcement activities were stepped up, surveillance cameras installed in Denby Park and a neighborhood watch begun with 60 residents participating. As a result, violent crime in this area dropped 35% and property crime 6%.

New residential and business developments along the historic Church Street corridor have made important contributions to its revitalization. But after 30 years it’s time to finish the job.

Three residential rehabilitation programs were begun for Denby Park, Oakdale Farms and Monticello Village to assist residents in upgrading their homes. The programs were so successful that within six months, the first $1 million was committed to 21 homeowners. Another $1 million was committed this fiscal year to assist 40 homeowners, and there’s already a waiting list for next year.

On the commercial side, the department of development is in active discussions with major

40

City of Norfolk 2010 Annual Report

property owners in the heart of the Wards Corner business district, and we expect new development opportunities to be identified later this year.

Momentum continued in Broad Creek last year as The Villas at Broad Creek got under way. This $5.4 million mixed-use development by Tivest Development and Construction won the national Small Business Qualified Low-Income Community Investment Award.

Other accomplishments in the Broad Creek area include major landscaping improvements, continued progress on the Kroc Center, a $7.5 million award-winning upgrade to the Mission College Apartments by NRHA, and a $60 million makeover of the 44-acre Grandy Village — including a 15,000-square-foot recreation center — that also won a national award of merit. The next major enhancement for the area is demolition and redevelopment of Moton Circle, a $44 million project.

New residential and business developments along the historic Church Street corridor have made important contributions to its revitalization. But after 30 years it’s time to finish the job. The council will refocus attention on Church Street in the coming year to complete its redevelopment into a vibrant, mixed-use area.

Lambert’s Point Community Center

Lambert’s Point Village Gardens

Broad Creek

In Lambert’s Point, construction began on Village Gardens, a 40-unit senior apartment complex set to open this fall. The state-of-the-art Lambert’s Point Community Center opened in February. It is an absolutely beautiful facility and a major contribution to the ongoing revitalization of the neighborhood. This fall additional residential development begins on property located between Hampton Boulevard and Bowden’s Ferry Road.

Even during the nation’s worst housing crisis, the strength of Norfolk’s residential market can be seen in continued development at East Beach and in the recent agreement by Franciscus Co. to buy the remaining parcels at Harbor Walk and complete the development.

The City and NRHA continue to acquire dilapidated properties in Ocean View for redevelopment. Recent examples include a 16-unit apartment building on First View, a 15-unit apartment building in Willoughby and the old Ramada Inn property on Ocean View Avenue.

Successful resolution for use of the property between 3rd and 7th Bay Streets now makes it possible to begin thinking about preparing a development plan that includes public open space for this very desirable site.

Harbor Walk

City of Norfolk 2010 Annual Report

41

Neighborhoods

3rd - 7th Bay Streets

In January 2009, funding for the Wards Corner Residential Rehabilitation programs became

available

and

the

Norfolk

Redevelopment and Housing Authority held a kickoff informational meeting for the residents of Denby Park, Oakdale Farms and Monticello Village. More than 130 residents, more than double the expected number, attended the meeting, which proved just how important the rehabilitation programs and funding actually were to adapt postwar housing to meet todayâ&#x20AC;&#x2122;s lifestyles and market expectations. The programs were designed to make rehabilitation affordable to low- and moderate-income homeowners. NRHA was inundated with 80 applications, with 60 of those qualifying, which substantially exceeded the number of applicants anticipated and the $1 million set aside for the first year.

With the $2 million funded in 2009 and 2010, NRHA has assisted 41 property owners. NRHA signs are displayed at each of the homes assisted, contractors are busy at work and the neighbors are taking notice.

Beverly Sexton, Wards Corner Civic League vice president, said â&#x20AC;&#x153;Residents are beginning to come out from behind their doors and talk to neighbors once again. A sense of community pride is swelling in Wards Corner.â&#x20AC;?

42

City of Norfolk 2010 Annual Report

Recreation, Parks and Open Space

Recreation, Parks and Open Space offers approximately 450 classes per quarter, with an average of 21,600 participants annually.

Northside Skate Park

C

Construction of North Side Skate Park began in mid-January. This 21,000square-foot park will be mostly solid concrete construction. It is one of the largest skateboard bowls in Hampton Roads.

Street-style elements including multiple stairs, Street-style elements including multiple stairs, ledges, ledges, banks and rail configurations are juxtaposed with open, flat areas for stunts and free banks and rail configurations are juxtaposed with open, skateboarding. This area will be integrated into flat areas for stunts and free skateboarding. the existing park and accented by colorful concrete stains and new landscaped sitting areas.

The public charettes held on Nov. 22, 2008, and Jan. 24, 2009, won support of Norfolk citizens. The skate park is expected to open in late summer, and will most likely be operated March 15 to Nov. 15 each year.

City of Norfolk 2010 Annual Report

43

Recreation

A Sampling of Accomplishments Recreation • Received third annual Playful City USA award from KaBOOM! The award was commemorated with a Play Day held Sept. 19 at Tarrallton Park.

• Norview Community Center — a 26,000-square-foot-facility, $7.4 million investment — opened in January 2009.

• A nine-week curriculum called Wise Kids taught nutrition and physical fitness to 30 children ages 6 to 11 from June 23 to Aug. 20 at Norfolk Fitness & Wellness Center.

Athletics • Recreation, Parks and Open Space (RPOS) recreation supervisor Gloria Peek was selected to coach Olympic-level U.S. boxers against top-ranked Great Britain fighters Oct. 16-17 at the Ted Constant Convocation Center. RPOS boxer Chris Alexander, 17, won the undercard bout in the welterweight division.

• Constructed a new $150,000 neighborhood park on Bluestone Avenue, which included playground equipment and swing sets, park benches, picnic tables, fencing and landscaping.

• Renovated/expanded the two existing softball fields at Northside Park to regulation tournament-size fields. The renovation project included new sod and an irrigation system.

• Installed a small park with bench sitting area in open space located at 416 Granby St. • Replaced playground equipment at Lafayette Park, Bayview Elementary Park, Larchmont Park, Craig Street Park, Mona Avenue Park and the Ocean View Senior Center.

• Working on a Recreation Master Plan which will help create the new vision for the future of RPOS within the City of Norfolk.

• One of the youth boxers from Barraud Park, winner Jeremiah Wiggins, became the first fighter to turn pro from the RPOS Boxing Program.

• Started a Community Garden at James Monroe Elementary School, 520 W. 29th St. The garden was planted and maintained by Summer Earn & Learn staff, and will be maintained

by Monroe Elementary science students.

• The Grow-a-Pro golf program was named Best New Program by the Virginia Recreation & Parks Society.

• Made lists of Norfolk parks and playgrounds available on the RPOS Web site at www.norfolk.gov/rpos/parks.asp.

Senior Services:

• Added credit card machines to the Norfolk Fitness & Wellness Center and four Norfolk cemeteries — Calvary, Elmwood, Forest Lawn and Riverside.

• RPOS sent representatives to the Virginia Senior Games held in the greater Richmond area. The 10 participants won a total of 15 gold medals and two bronze medals. They participated in billiards, bowling, race-walk, table tennis, softball hit and throw, and track and field. The oldest participant was 80 years young.

• The City of Norfolk was represented by Gloria Basnight from the Southside Senior Center at the Huntsman World Senior Games in St. George, Utah. She won one gold medal in bowling doubles, a bronze medal in mixed doubles, a silver medal in team bowling and a silver medal in “all events.”

Bureau of Planning & Administration • Lake Taylor Soccer Fields – Completed Phase V of construction by renovating existing soccer field No. 9, which included the field being fully regraded with a new irrigation system installed and grass sod planted.

• The new Lambert’s Point Community Center, a 24,000square-foot facility that cost $7.35 million to construct, opened in February 2010.

• Resurfaced/renovated the outdoor basketball court at Berkley Park.

44

• Completed a major renovation of the lifeguard/restroom facility at Sarah Constant Beach.

City of Norfolk 2010 Annual Report

• Hosted the Dogs Gone Swimming event — a fundraiser for the Norfolk Animal Care Center — at the Norfolk Fitness & Wellness Center pool.

Aquatics • Developed the Waterline Teens program and video with the Norfolk Health Department in spring 2009 to teach water safety to this age group, which is at high risk for drowning.

• Increased aquatic programming at Huntersville and Northside indoor swimming pools by 50%.

• Increased Norfolk Youth Summer Plunge Program participation from 2,805 in summer 2008 to 5,849 in summer 2009.

This program is conducted at Huntersville and Northside indoor swimming pools, as well as the Chesterfield and Berkley outdoor seasonal pools.

• Provided water safety and swimming instruction to 2,350 Norfolk Public School fourth-grade students at Northside and Huntersville indoor swimming pools.

Green

City Green Team

L

Like other local governments and the private sector, the City has adopted a policy to reduce its impact on the environment. Last year, Norfolk signed up for the State Municipal League’s ‘Green Government Challenge’ and formed a “Green Team” task force of city employees. Its work has led to an engine-idling policy for city vehicles, a “green fleet” policy, tree preservation plans and energy audits of municipal buildings.

Green building practices are a proven way to reduce carbon emissions and Norfolk is incorporating them in its new facilities. The Lambert’s Point Community Center was built to LEED standards, just as the new police precinct, the courts complex and the Slover Memorial Library will be.

Grassroots efforts like the Lafayette Wetlands Partnership are also helping preserve the environment, and they deserve our support. With help from the City, the Partnership has restored a wetlands area on Knitting Mill Creek, and is actively planning additional projects.

Later this year a program called “Celebrate Trees” will begin as a way to encourage businesses, citizens and civic groups to plant a tree for the environment. Everyone will be asked to plant a tree and improve our air quality.

The Elizabeth River Project has a new plan to make the Elizabeth River safe for swimming and fishing by 2020 – and complementing that, their shorter term goal is to make the Lafayette River in Norfolk the first branch of the Elizabeth safe for swimming and fishing by 2014.

City of Norfolk planning and stormwater staff, as well as the Virginia Zoo, are working with the Elizabeth River Project and many other public and private partners to make improvements to the Lafayette starting this spring. The Virginia Zoo, in fact, has been named a Model Level River Star, the top level of recognition for organizational partners, by the Elizabeth River Project for a major wetland restoration at the zoo parking lot and for incorporating new environmental education and pollution prevention initiatives throughout the site.

Meanwhile, the City is completed its own watershed management plan for the Lafayette River and

Lafayette Wetlands Partnership Project at Knitting Mill Creek

the mouth of the Elizabeth, with all of this effort expected to provide a great deal of synergistic momentum for improving our quality of life in

Later this year a program called “Celebrate Trees” will begin as a way to encourage businesses, citizens and civic groups to plant a tree for the environment.

Norfolk by improving the state of our waters. A healthy home river where the next generation will be able to swim and fish without fear for their health is a really important part of the legacy we are working toward on behalf of our children and their children.

Renewable Energy Business — Opportunity for Global Growth The forecast is for opportunities in importwholesale and import-retail of solar and wind power systems with products such as solar water heaters, solar power generators, solar water pumps, solar chargers, lighting, fans and other photovoltaic systems products.

Related wind power technology components include the gearbox and drive train, rotors, bearings, electrical and control systems, inverters, towers and brakes, blades, shafts and generators. Many alliances and research partnerships for emerging technologies and the renewable energy business sector are active and a great resource such as the DOE, Green Job Alliance, Virginia Department of Mines, Minerals and Energy and ACORE.

City of Norfolk 2010 Annual Report

45

Green Bureau of Parks and Urban Forestry • Received 22nd annual Tree City USA award from the Arbor Day Foundation.

Celebrated Norfolk Arbor Day on Oct. 3 and gave away 3,000-plus tree seedlings to Norfolk residents to increase the city’s urban forest.

• Was chosen as a Service Day project site by CSX and City Year. The two organizations brought manpower and supplies to Norfolk on Oct. 17 to conduct a beautification project at the St. Helena School / Berkley Community Center complex. Together, the volunteers planted 349 perennials (irises, liriope and hostas), 116 shrubs (roses and azaleas) and 19 trees (crepe myrtles). They also removed more than 75 yards of hedge, and built four picnic tables and six benches.

• Took part in a grant-based Urban Tree Canopy study through the Virginia Department of Forestry, which combined aerial photography with GIS technology to obtain the current percentage of tree canopy coverage within Norfolk’s city limits. Norfolk rates at 33%, which is near the goal of 40% for cities east of the Mississippi River.

• Completed major landscape planting project at the new Broad Creek Linear Park, more than 6 acres of new passive open space, which opened this year.

• Planted 1,187 trees, approximately 20,000 plants in 1 gallon or larger containers and approximately 12,000 plants from containers smaller than a gallon.

DoD Mandates for Alternative Energy The Department of Defense has a goal in place to meet 25 percent of its electrical energy needs using renewable sources by 2025. The DoD has gone a step further than the existing federal mandate, which requires 7.5 percent of electric energy to come from renewable sources in fiscal year 2013 and thereafter.

For energy efficiency, the Navy is working toward the federal agency requirement to reduce energy usage by 3 percent per year and 30 percent total by 2015 using 2003 as an energy consumption baseline. The interim energy efficiency targets are detailed below. In 2009, the Navy had already reduced its energy consumption by 12 percent.

2006 – 2 percent 2007 – 4 percent 2008 – 9 percent 2009 – 12 percent

2010 – 15 percent 2011 – 18 percent 2012 – 21 percent 2013 – 24 percent

2014 – 27 percent 2015 – 30 percent

The Virginia Coastal Energy Research Consortium Scientists, engineers and geographers at Virginia Tech–ARI, Old Dominion University, Science Applications International Corp., Paliria Energy, Norfolk State University and James Madison University are researching offshore wind power, mapping offshore areas and economic development impact. ODU researchers have designed a test reactor that converts algae directly into biodiesel fuel without any intermediate step. The particulars of the system are secret, with hopes the procedure can be patented — slimy algae can be transformed in less than an hour into a fuel that could power a tractor.

46

City of Norfolk 2010 Annual Report

The Virginia Offshore Wind Coalition (VOW)

T

The Virginia Offshore Wind Coalition has two goals: •

To promote the development of offshore wind energy in Virginia and

•

To promote Hampton Roads as the hub of manufacturing and supply for all offshore wind farms on the East Coast.

Virginia has a solid wind resource off its coast, with the capacity for more than 3,000 megawatts of electricity a year – enough to power more than 1 million homes, or roughly one-third of all homes in the state. Combined with a long, outer continental shelf and a robust transmission grid, this makes Virginia an ideal location for offshore wind farms.

Offshore wind will be part of the solution and will help diversify Virginia’s energy sources. In addition, the Navy recently set an ambitious goal of having half of its power come from renewable sources by 2025. Hampton Roads is home to the largest concentration of Navy personnel in the country, and offshore wind can greatly help the military reach this goal.

Offshore wind-powered electricity has proven itself in Europe, where more than 25 projects have been successfully installed in the past 10 years. The Virginia Coastal Energy Research Consortium has researched the potential for offshore wind energy in Virginia. Its findings laid the groundwork for commercial development of offshore wind projects.

At least 10 offshore wind farm projects are under development in the United States, all of them outside Virginia. Yet no other state on the East Coast has the capacity for shipbuilding, steel fabrication and large-scale manufacturing of wind turbines and other equipment required for these massive projects. Virginia’s deep-water ports and fabricating plants are well-positioned to service this growing industry.

Over the next 10 years, more than $80 billion will be invested in the offshore wind industry on the East Coast alone. The VOW Coalition is working closely with Virginia legislators to place Virginia in a position of leadership within the industry. The coalition is working on state legislation that will make Virginia competitive with other states pursuing offshore wind.

Public Safety

The new police facility located at 901 Asbury Ave. will be a $12 million, 40,000-square-foot, state-of-theart facility to house the 2nd Patrol Division, the Bomb Squad, the Special Operations Team, Harbor Patrol and the Traffic Unit. The facility will house a meeting room for community use and will be LEED certified as a “green facility.” The building is anticipated to be occupied in the spring of 2011.

A

All of us appreciate the dedicated work of our public safety employees. Last year alone, Norfolk Fire-Rescue responded to more than 40,000 service calls and we invested $2.7 million in new vehicles.

Our commitment to public safety also includes facilities, and last fall ground was broken in Central Business Park on a $12 million state-of-the-art headquarters for the 2nd Patrol Division. It is scheduled to open next spring.

Norfolk also has been invited by Old Dominion University to partner with it on a new combined police precinct that would house both ODU police and the 3rd Patrol Division and provide new synergies between the two forces. The council is supportive and will work to take advantage of this opportunity.

A police officer’s job can quickly turn very dangerous, a fact Officer V. E. Decker came face to face with last March. While on patrol, he confronted two armed suspects who had been involved in a robbery in which their victim was shot and later died. During the confrontation, one of the suspects opened fire on Officer Decker, who returned fire, killed the shooter and then apprehended the second suspect. The bravery he exhibited took two dangerous criminals off the street, and for his actions, he was awarded the Norfolk Police Department’s Medal of Valor.

We were disappointed and concerned by last

year’s increase in the homicide rate. With that exception, overall violent crime was down 14%.

In a very positive sign, juvenile arrests dropped significantly in selective enforcement areas — 83% in Huntersville, 41% in Denby Park and 14% in the Pleasant Avenue corridor. Overall juvenile arrests were down 52%. But the problem is still severe. It affects our children and school safety. Mayor Paul Fraim will ask the city council to establish a task force on youth and gang violence to be chaired by the vice mayor, Anthony Burfoot.

In a very positive sign, juvenile arrests dropped significantly in selective enforcement areas — 83% in Huntersville, 41% in Denby Park and 14% in the Pleasant Avenue corridor.

While annual statistics provide a quick, pointin-time snapshot of crime, their greatest value is in identifying trends. So we should all be encouraged that in the last 10 years overall crime has declined 14% and violent crime by 19%. This is a positive sign that criminal activity is trending down. The Police Department remains at full operational strength — and we appreciate the officers and their citizen partners for all that is being done to make Norfolk a safer city.

City of Norfolk 2010 Annual Report

47

Public Safety

Norfolk Fire-Rescue responded to more than 40,000 service calls in 2009. The City invested $2.7 million in new vehicles.

Awards Members of the police department received several awards in 2009. Some of the highlights include: • Gang Investigator Rich Creamer was awarded the “Law Enforcement Public Service Award” from the United States Attorney’s Office for his investigation of the Bounty Hunter Bloods.

• Gang Investigator Gene Balance received the “Crime Prevention Award for Law Enforcement” from the Crime Prevention Awards Banquet Committee, which is composed of citizens of Norfolk, for his work in the area of gang prevention.

• Officers Brian Kane, Terry McClain, and Brandon Dean received top dog awards from the German Shepherd Club of Virginia.

Community Outreach Badges for Baseball remained the largest single youth activity supported by the department. More than 400 children participated this year. While working in conjunction with the Greater Norfolk Corp., Department of Recreation, Parks and Open Space, and Norfolk Public Schools, citizen donations exceeded 600 items to support the league.

Youth Academies continued and several hundred children attended classes which taught the many facets of the department as well as life skills lessons. More than 300 children attended a workshop titled “Peer Pressure and Stress Workshop.” Students received instruction on gangs, drugs, dating violence, self esteem and conflict resolution.

• Officer V. E. Decker received the Norfolk Police Department’s Medal of Valor.

The Gang Suppression Unit gave 46 presentations in 2009 to youth and community groups.

Grant Funding:

Hispanic Community Police Officer program’s second annual Hispanic Soccer Tournament took place between members of the police department and a Hispanic community team. NPD’s Hispanic Resource Officer along with other Hispanic members of the department taught English as a Second Language classes to more than 120 members of the community. These outreach efforts continue to overcome cultural barriers and build trust.

The Norfolk Police Department (NPD) received in excess of $1.5 million to fund bulletproof vests; tasers; a tactical platform; a driver training simulator; training in gang awareness, prevention and interaction; police officer recruiting; the Hispanic Resource Officer program; bomb squad equipment and training; and additional traffic enforcement.

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The Department’s K-9 Unit celebrated its 50th anniversary of providing services to the citizens of Norfolk in 2009.

City of Norfolk 2010 Annual Report

“Bomb-Making Materials Awareness Program,” supported by the Department of Homeland Security, reaches out to the Norfolk business community and provides education to employees explaining what behaviors and buying patterns are indicative of someone trying to make homemade explosives.

Military

THE NAVY IN HAMPTON ROADS, FY 2008 Active duty military Officers Enlisted and students Average annual salary * Officers Enlisted and students

84,267 11,940 72,327 $52,000 $90,000 $46,000

Retired and survivors

43,966

Military family members

96,512

Ships homeported

84

Aircraft squadrons homeported

34

Annual payroll for active duty military (in billions) Total annual payroll for active duty military and civilians (in billions) Total procurement expenditures (in billions)

$4.42 $7.5 $7.14

Total direct economic impact (in billions)

$14.64

Federal civilian workers in Hampton Roads

30,768

Active duty military in Norfolk

56,001

Federal civilian workers in Norfolk

16,563

Source: “The Navy in Hampton Roads,” by the the Navy Region Mid-Atlantic Public Affairs Office, Oct. 14, 2009. The fiscal year is Oct. 1 through Sept. 30. Unless specified, data is for Hampton Roads. This data covers the Navy and USMC. * Average salaries are estimated, and include housing allowances.

Basic Allowance for Housing Rates The Basic Allowance for Housing (BAH) is based on geographic duty location, pay grade and dependency status. The intent of BAH is to provide uniformed service members accurate and equitable housing compensation based on housing costs in local civilian housing markets.

It’s payable when government quarters are not provided.

The average increase in BAH in 2010 will be 2.5%. This is much smaller than the 6.9% average rate increase in 2009 and is due, in part, to lower rental costs in many areas across the country.

E

Estimates are that local defense spending will increase another 4.5% in 2010, not including a 2.5% increase in the military housing allowance.

But that can change. Military and federal civilian employment has declined over the past 10 years.

Just last year the number of ships home ported in Norfolk shrank from 94 to 84, with the greatest impact coming from reassignment of the carrier USS George Washington to Japan, a move estimated to cost the local economy $600 million and 11,000 jobs. Together with our congressional delegation, the region is working to make sure this doesn’t happen again.

Military Payroll On Oct. 28, 2009, President Barack Obama signed into law the National Defense Authorization Act for Fiscal Year 2010, which increases the rates of monthly basic pay for members of the uniformed services by 3.4%, effective Jan. 1, 2010. This is in addition to an earlier FY 2009 increase of 3.9%, which took effect Jan. 1, 2009.

The military continues to be a significant stabilizing impact on the local economy: • Total direct economic impact rose by almost $715 million to more than $14.6 billion in FY 2008.

• Consumption in goods and services — $7.1 billion • Active duty Navy and USMC personnel in Hampton Roads for 2008 exceeded 84,000 with 66% assigned to Norfolk. Active duty personnel in Norfolk increased by 2.4% in 2008 to 56,001.

• Approximately 31,000 Navy civilian employees in Hampton Roads in 2008 of which 54% were located in Norfolk. Norfolk’s Navy civilian employment increased by 15% to 16,563.

• No economic decline as a result of war deployments.

• City continues to be center of activity for the U.S. Navy.

• Naval Station Norfolk is the world’s largest naval station.

E-1 with Dependents: $1,359 E-1 without $1,110 0-7+ with Dependents: $2,406 Without $1,881 See Military.com for more information.

Norfolk is the North American Headquarters for NATO (North Atlantic Treaty Organization).

City of Norfolk 2010 Annual Report

49

City Budget

Downtown’s growing tax base is valued at $1.6 billion that generates $18 million annually in revenue from this district.

R

Reflecting a lower revenue outlook, the City’s 2010 operating budget is $2.3 million less than last year’s. A $35 million gap was closed by reducing expenditures, freezing salaries, extending the hiring freeze, eliminating positions and making targeted reductions to departmental budgets. Even more will be needed for the upcoming budget.

$37.5 million was invested in water and sewer upgrades across the City, and in resurfacing 83 lane miles of streets.

The Capital Improvement Budget meets Norfolk’s internal affordability measures in all five years of the plan. Still, even projects that are planned need to receive new scrutiny. In past budgets the Council has appropriated more than $57 million for the construction of a new consolidated courthouse, of which $14 million has already been spent on design and construction drawings. More than $45 million has been programmed for fiscal year 2011. Without in any way wavering on the commitment to the new courthouse, Mayor Paul Fraim advised the city manager and the chief judge that he will ask the Council to defer construction until fiscal year 2012. This will help alleviate pressure on both the capital and operating budgets, and signal to

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City of Norfolk 2010 Annual Report

bond rating agencies that the City is serious about spending curbs.

As tough as this budget was, the 2011 budget will be even tougher. Next year’s gap is currently projected at $36 million. Cuts have consequences, and they will be felt across the City and in the schools. The State budget was balanced by shifting an unprecedented amount of the fiscal burden to the local level.

The City budget will feel the pressure and will live with it for years. Included are funding reductions for constitutional officers; reductions in education funding; and a range of spending reductions in public safety, human services and economic development.

This is not business as usual. Revenues are simply not going to meet the expenditure demands of our current operating environment. To balance the 2011 budget the City will have to reduce or eliminate programs and services — and probably positions. “From all appearances, Virginia and her counties and cities seem well on the way to the smaller government some have wanted for so long.

However, it will be a less compassionate government and a weaker force for good in the lives of our people,” said Mayor Fraim.

Even as the operating budget was reduced in response to the recession, progress continued on neighborhood projects. A total of $37.5 million was invested in water and sewer upgrades across the City, and in resurfacing 83 lane miles of streets.

Utilities This year’s highlights include:

•

Contract to Provide Water to the Western Tidewater Water Authority The City entered into a 40-year agreement to provide the Western Tidewater Water Authority with up to 15 million gallons of raw water per day. This “neighbors helping neighbors, win-win agreement” provides water for future economic growth in Suffolk and Isle of Wight County, as well as provides millions of dollars of future revenue for the City of Norfolk.

•

of the City’s Lake Burnt Mills Reservoir Dam. This $10 million construction project replaced 60-year-old portions of the dam and brought it into compliance with more stringent federal regulations. In recognition of its innovative design and rehabilitation, the project received the Association of State Dam Safety Officials’ (ASDSO) 2009 National Rehabilitation Project of the Year Award.

•

With concern for the environment and the sustainability of resources, the Department of Utilities formed its Green Team to increase recycling, reduce waste, improve efficiency, and lower costs for electricity and fossil fuels. This year’s efforts have included:

Water and Sewer Infrastructure Capital Improvements In 2009, the City of Norfolk invested more than $34 million in capital improvement projects for water and sewer upgrades in neighborhoods and business districts throughout the City. Through a Virginia Clean Water Revolving Loan, $7.5 million of the funding for these projects was acquired at zero percent interest, saving the City an estimated $300,000 annually for the 20-year term of the loan.

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■

■

•

Green Initiatives

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In 2009 alone, Norfolk strengthened its neighborhoods and added capacity for future economic expansion by installing 49 new fire hydrants and replacing and upgrading nearly 13 miles of sewer mains and 11 miles of water mains in neighborhoods and commercial districts City-wide.

Recycling -- The Department of Utilities began a program to recycle solids that are removed during the water treatment process. In the past, these solids were placed in the local landfill. With the new recycling program, a portion of the solids is transported to a farm in Virginia Beach where they are used as a lime supplement to produce better crops. The recycling of solids is not only beneficial to local farmers, but saves the City nearly $100,000 a year in waste disposal fees.

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Water and sewer improvements were designed or constructed in neighborhoods such as Freemason, Fairmount Park, Talbot Park, Central Brambleton, Kensington Park, Bayview, Huntersville, Fort Norfolk, Colonial Place, West Ocean View, Northside, Titustown, Chesterfield Heights, Capeview and the Downtown area.

Conservation -- In 2009 the Department increased its inspections of nearly 830 miles of water distribution pipes by 23% and allowed the Department to find and repair 38% more leaks which saved water and reduced the number of service disruptions caused by major main breaks.

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Environmental -- In 2009, 21% of the 820 miles of wastewater gravity mains were cleaned which resulted in more reliable wastewater services and a reduction in the number of sewer blockages.

■

Energy – The Department of Utilities initiated an idling policy for vehicles to reduce fuel consumption and operating hours for equipment.

For some residents and businesses, progress can be challenging. By working collaboratively with the Downtown Norfolk Council to engage business owners and residents, the City held weekly meetings and helped facilitate open dialogue and cooperation with stakeholders for disturbances related to light-rail construction, street closures, and infrastructure relocation and upgrades. Sharing information and concerns has proven to be invaluable for everyone who lives and works in downtown.

Burnt Mill Dam Rehabilitation The Department of Utilities completed a major rehabilitation

•

Veterans Day Nor’easter Storm The Department of Utilities provided support to the Emergency Operations Center and responded to service calls throughout the City during the storm and recovery efforts. During the storm, staff shifted to emergency generators at the 37th Street and Moores Bridges Water Treatment Plants and continued to provide drinking water to all its customers.

City of Norfolk 2010 Annual Report

51

City Budget

Public Works The services provided by the Department of Public Works are distributed over a network of more than 740 miles of paved streets reaching every household in Norfolk.

Services provided by Public Works include designing and constructing City-owned buildings, collecting refuse, coordinating recycling and other environmental initiatives, surveying, reducing pollutants in storm water, reducing flooding, controlling traffic, maintaining streets, sidewalks and bridges, and providing towing.

•

•

Street-Sweeping Improvements After successfully transitioning to a monthly street-sweeping schedule citywide in 2008, the Division of Environmental Storm Water expanded its sweeping reach. Nearly 13,735 tons of debris was collected from January 2009 through November 2009.

•

Environmental Initiatives Keep Norfolk Beautiful and its Councilappointed advisory arm, the Norfolk Environmental Commission, and Public Works concluded their participation in a national pilot program with the goal of developing positive behavior early in life.

The environmental education programs reached more than 10,000 students.

• In 2009, staff organized volunteers who provided 40,000 hours of volunteer time. They collected more than 316,000 pounds of trash from roadsides, public spaces and shorelines.

• Special electronic recycling events diverted nearly 140,000 pounds of old electronics from the waste stream, allowing them to be recycled and disposed of properly. The region’s first City-operated Household Hazardous Waste (HHW) and electronic waste facility opened in early 2010.

• A yard waste disposal site and contract began in November, which allows the City to compost, rather than landfill, approximately 11,000 tons of yard waste annually. During clean-up from the November Nor’easter alone, nearly 2,342 tons of compostable yard waste were collected.

Public Parks, Buildings, Road Improvements and Lots • The Town Point Park project was completed. The $11 million project regraded and landscaped the entire park, adding

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City of Norfolk 2010 Annual Report

•

•

•

and replacing modern infrastructure components such as water, electricity and WiFi spots.

The $916,000 Northside Park Softball Field project was completed. The two existing ball fields were renovated with new grass, lighting and structures. These two fields are in addition to the field installed last year, bringing the park’s total to three.

The Second Patrol Police Facility is expected to be completed next winter and will cost $12 million to design and build. This new facility, located on Asbury Avenue, will create 39,000 square feet of office space, training rooms and meeting space. It is also our second LEEDdesigned building for the City.

The Broad Creek Park consists of five acres prepared and landscaped to create a neighborhood park. A multi-use trail surrounds one part of the Broad Creek housing complex, allowing bike riding, walking and jogging through a welldesigned garden. Benches, paved paths, a pond with overlook and a fountain complete the addition.

Ballentine Boulevard Gateway at Virginia Beach Boulevard; a joint project between the City of Norfolk and VDOT, included signal improvements as well as through- and turn-lane alignments. The intersection now has a landscaped median and new pedestrian signals.

The Spotswood Avenue parking lot now provides 35 metered spaces for parking in the Ghent Business District. The project was completed for $200,000.

The Virginia Beach Boulevard underpass rehabilitation consisted of new pavement and new overlays of concrete and asphalt. The medians were replaced, all surfaces were repainted and a new lighting system was installed. This rehabilitation cost $1.6 million and now meets the standards for underpasses in the City.

Design and Construction Activity At the end of FY09, Public Works executed $82.85 million in design and construction activity. The division of design’s execution rate for contracts costing more than $30,000 was 87% and 229 projects were issued a notice to proceed.

November Nor’easter On Nov. 12, the City of Norfolk was significantly impacted by a rainstorm blowing in from the northeast, accompanied by winds between 35 and 40 miles per hour, with wind gusts reaching up to 65 miles per hour. Norfolk received 12.5 inches of rain and the flooding reached levels of 8.86 feet at the downtown storm water pump station.

Public Works plays a big role when the City experiences weather events of this magnitude, both during the event and the recovery.

• Before the storm, staff monitored the tide levels and closed the downtown flood gates in advance of the storm. During the storm, Public Works staff blocked flooded areas to protect private vehicles and assisted in evacuations in Ocean View.

• Clearing all streets began Nov. 13 as a group effort between Public Works (Waste Management, Environmental Storm Water, Streets and Bridges), Recreation, Parks and Open Spaces, and Utilities.

■ Crews removed more than 600 downed and leaning trees and other debris. Storm Water personnel cleared drains and removed water from streets and flooded properties in Ocean View.

■ Waste Management began picking up debris and bulk waste the weekend after the storm. Additional bulk waste trucks were sent to Ocean View and Willoughby. Five citizen drop-off sites were opened at Community Beach, East Ocean View, Tarrallton Field, Powhatan Field parking lot and the Zoo. Refuse bulk waste, yard debris and paint cans were accepted at all sites. Most remained open until Nov. 29. Two stayed open until mid-December.

• Of the City’s 284 traffic signals, 149 were without power during and after the storm. Many traffic control cabinets were flooded but only two were significantly damaged. Traffic signal techs repaired the signals and most were back online within three days after the storm.

Citywide, 200 signs were downed, including 52 stop signs. Most were repaired or replaced within five days.

Homelessness

The permanent “New Home for Hope” is a $30 million facility serving the homeless and their families. The Union Mission thrift store opened in November and provides job skills training and employment opportunities within the Virginia Beach Boulevard campus.

T

The recession’s harshest effects are being felt by our most vulnerable citizens — the homeless and those one paycheck away from homelessness. In 2009, Norfolk ended or prevented homelessness for more than 600 families and 100 single adults.

According to results from February’s point-in-time analysis, overall homelessness decreased last year in Norfolk. This was achieved with help from a generous $250,000 grant from the Dragas Family Fund. Norfolk is a recognized leader in creating opportunities for ending homelessness, and we continue to work on new and improved solutions to this social dilemma.

Union Mission Ministries “New Home for Hope” will shelter and train between 275 and 300 homeless individuals and families. When the $30 million

project is complete, a new focus on training will provide job skills necessary to equip the homeless to better care for themselves and their families, and to become successful citizens. The Women and Family Shelter will provide 48 emergency beds and beds

In 2009, Norfolk ended or prevented homelessness for over 600 families and 100 single adults for eight families. The Men’s Shelter will provide 140 emergency beds and 60 single-room occupancy. A Capital Campaign has raised $11 million of the $15 million needed to complete the Permanent Men’s Shelter.

City of Norfolk 2010 Annual Report

53

Norfolk, Virginia 2010 Point-in-Time Analysis of Persons Experiencing Homelessness Initial overview report February 11, 2010 Norfolk sees a slight decrease in the number of families with children and single adults experiencing homelessness.

There is an increase in the number of persons in families with children related to larger family size in those families served.

Families (Households with Children) 48

46

46

47

46

Total Households

44 42 40

480

40

38 36

467

475

460

446

440 2007

2008

2009

2010

420

409

400

2% decrease from 2009 to 2010 in number of families experiencing homelessness. â&#x20AC;˘

â&#x20AC;˘

The total number of persons in families increased slightly from 149 to 156 due to larger families being served.

There were no families with children without shelter or other housing arrangements.

380 360 2007

420

427

580 560

410 400 363

360

556

2009

2010

502

500 500

340 320 2007

2008

2009

2010

7% decrease from 2009 to 2010 in number of single adults experiencing homelessness.

54

540

577 540

520

380

2010

Total Persons

428

400

2009

7% overall decrease in households (families with children AND single adults).

Single Adults 440

2008

City of Norfolk 2010 Annual Report

480 2007

2008

2% overall decrease in total persons experiencing homelessness.

Community Services Board

Achievements of Fiscal Year 2009 2,121 Norfolk residents in crisis due to significant psychological problems were seen by our Emergency Services staff. This mobile crisis team provides evaluation and crisis intervention in peopleâ&#x20AC;&#x2122;s homes, local emergency rooms, and elsewhere 24 hours a day, seven days a week.

33,422 telephone contacts were handled through the emergency hotline, which is 664-7690.

33,094 students received mental health and substance abuse information, education and referral services through student assistance counselors in 10 selected Norfolk Public Schools.

29,042 contacts with residents were made by Prevention Services staff, primarily through community events such as health fairs and speaking engagements with local groups.

Graduate Counseling Program partnership has allowed the CSB to offer affordable mental health and substance abuse counseling in an outpatient setting.

150 Norfolk Drug Court participants graduated over the past 10 years of its existence. Not only does Drug Court help participants achieve recovery, it also saves the additional $16,000 to $23,000 a year per participant it would cost to incarcerate them.

472 is the number of residents and their families that Intellectual Disability Services case managers work with at any given time, linking them to services and support, enhancing community integration and advocating for individuals in response to their changing needs.

Police Emergency Services

staff provided training to new recruits of the Norfolk Police

540 individuals were served in the first full year of operation of a nine-bed residential Crisis Stabilization Program. This program allows individuals to receive community assessment and treatment and assures continuity of care for ongoing recovery.

Without the program, these 540 individuals would have been admitted to area psychiatric hospitals, jails or detention facilities, all of which are more expensive alternatives.

176 toddlers graduated from the Infant and Toddler Connection Program. Forty percent of these children will no longer need support and services to further their development. With a national average of $7,500 per year for each child in Special Education, this represents a potential savings to our school system of $532,500.

273 individuals were able to take advantage of a new walk-in clinic for Outpatient Services. People can walk into the Olney Road site from 7:00 a.m. until 7:30 a.m. weekdays and get the help they need. This year at Olney Road the CSB conducted 94 intakes and provided treatment to 175 individuals. This Norfolk CSB â&#x20AC;&#x201C; Old Dominion University

Community Services Board The Norfolk Community Services Board was founded in 1969 and is responsible for providing mental health, intellectual disability (formerly known as mental retardation) and substance abuse services to Norfolk residents. These services are offered in the community where clients live, surrounded by their family and friends.

Today, treatment and rehabilitation services are provided to more than 6,000 Norfolk residents. Many will need services for a long time â&#x20AC;&#x201C; maybe even throughout their lives. Others will just need someone to monitor their medication. Most will have needs that fall somewhere in between.

Department Training plus ongoing crisis counseling training to veteran officers on the force.

The 2009 Best Practices Award from the Virginia Department of Aging was made to Norfolk CSB and four other CSBs. They partnered to fund a regional Southside Geriatric Project to help senior adults with dementia and other mental health and substance abuse issues remain in the community and out of psychiatric hospitals.

City of Norfolk 2010 Annual Report

55

Schools

Norfolk Public Schools

O

One of the City’s most valuable assets is the quality and performance of the public school system. It has a powerful influence on where families decide to live, where businesses decide to locate and on key quality of life indicators.

The performance of Norfolk Public Schools has been and remains one of City Council’s top priorities. The City Council believes our school system offers a challenging curriculum. We believe its teachers, principals and administrators are dedicated to providing students with an education equal to the best in the country. City Council has demonstrated its commitment to education where it counts the most — in the classroom. According to the most recent information available, among the region’s major cities, Norfolk is second only to Virginia Beach in per pupil expenditures. And our teacher salaries are regionally very competitive.

We are very pleased that Maury and Granby high schools were again ranked in the nation’s top 5 percent of public high schools by Newsweek magazine.

We are encouraged by reports that on-time graduation increased 2% and that the dropout rate decreased by 2%. We are very pleased that Maury and Granby high schools were again ranked in the nation’s top 5 percent of public high schools by Newsweek magazine. We congratulate Mary Calcott and Larchmont Elementary schools on receiving the Governor’s Award for Educational Excellence. And we are proud that Oakwood Elementary was one of just 13 public and private schools from Virginia ranked as a national Blue Ribbon School.

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City of Norfolk 2010 Annual Report

Commonwealth of Virginia Budget Cuts to Hurt Schools.

In Mayor Paul Fraim’s Words…

“Today, even in an improving economy, State and local governments are weighing policy decisions and budget adjustments that will affect us for years to come. Potentially damaging reductions in State aid promise to rewrite the historic relationship local government has had with the Commonwealth. Nowhere is that more worrisome than in education.

If the proposed reductions in State aid are approved, Norfolk Public Schools stands to take a nearly $40 million hit to its budget. This is catastrophic, and begs the question: Is State funding for public education following in the footsteps of transportation funding? The city will be called upon to do everything possible to increase our own local funding for the schools. We are duty bound to do the right thing for our children.”

Universities

TCC Student Center

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Now entering its 13th year of service to Norfolk, Tidewater Community College is one of our great success stories. And the campus continues to grow.

Last June, ground was broken for the college’s first student center, a five-story facility scheduled to open this fall. In addition to its educational role, TCC has become a nationally recognized leader in workforce development.

Tidewater Community College provides training and assessment services for more than 30 industry certification and licensing classes and programs in maritime, ship repair, health care, construction, retail, global studies, defense and homeland security.

On Sept. 5, Old Dominion University celebrated a milestone achievement when the roar from a sold- out crowd at Foreman Field announced the return of football after a 60-year absence. The 3621 win over the Chowan Hawks kicked off a spectacular season that saw Coach Bobby Wilder lead the Monarchs to a 9 and 2 record, the best ever by a first-year Division I team. The university opened a new Student Recreation Center and the second building at Innovation Research Park.

Norfolk State University reaches an important milestone later this year when it celebrates the 75th anniversary of its founding as the Norfolk Division of

Virginia Union University. Since then, NSU has grown to become a major state university in its own right. Its campus has expanded with new buildings, and more new additions are on the way. Last summer ground was broken for the Lyman Beecher Brooks Library — a $34 million signature building that will be the information and academic hub of the campus — and last fall the ribbon was cut on an 85,000-square-foot student center.

Tidewater Community College provides training and assessment services for more than 30 industry certification and licensing classes and programs in maritime, ship repair, health care, construction, retail, global studies, defense and homeland security.

Under the leadership of head coach Pete Adrian, the Norfolk State Spartans football team returned to its winning ways with a 7 and 4 season. The Spartans’ year was capped by defensive back Terrell Whitehead being named an AllAmerican — the first Norfolk State player to earn that recognition.

City of Norfolk 2010 Annual Report

57

Universities

Under the leadership of its president, Dr. Billy Greer, Virginia Wesleyan College is not only distinguished for its academic excellence but also for its environmental leadership. The President’s Environmental Issues Council strives to promote a strong environmental ethic and works with students to address environmental issues. The Council has three main task forces that work in more concentrated areas. They are the Housing & Mechanical, Utilities and Purchasing task forces. The Council also oversees the awarding of the annual President’s Environmental Challenge Grant.

In late summer, Eastern Virginia Medical School broke ground on its $80 million education and research building. When it opens, the region’s health care system will get a boost from expanded Physician and physician assistant programs, and from cuttingedge research the facility will make possible.

EVMS Educational Research Building

The ODU Board of Visitors named John R. Broderick the eighth president of the Univeristy on May 18th.

Groundbreaking ceremony for the Lyman Beecher Brooks Library.

The new ODU Recreation Center

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City of Norfolk 2010 Annual Report

Medicine

Lake Taylor Transitional Hospital

DePaul Hospital

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More good news for our health care system comes from Lake Taylor Transitional Hospital, Bon Secours DePaul Medical Center and Sentara Healthcare.

Lake Taylor is undergoing a $25 million modernization and upgrade of its existing facilities, including the addition of a new building. Thanks to a terrific board and sound management, Lake Taylor has earned a well-deserved reputation for excellent patient care.

Bon Secours continues to move forward with plans to build and open a new 124-bed DePaul Hospital by 2014. Later this year they will break ground on a new medical building that will connect

to the new hospital. All of this is wonderful news, especially in light of earlier reports of DePaulâ&#x20AC;&#x2122;s demise. This turnaround has been led by the new CEO, Michael Kerner.

In January, Sentara Health Care, our largest private employer, was ranked as the most integrated health care system in the nation. Sentara Norfolk General was nationally ranked in the Top 50 hospitals for heart surgery, diabetes and endocrine disorders, geriatric care and kidney disorders. Sentara Leigh was ranked among the nationâ&#x20AC;&#x2122;s top 50 hospitals for orthopedic care.

City of Norfolk 2010 Annual Report

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EVMS: Marketed Products derived from EVMS Technologies SeasonaleTM – The innovative product creating the new class of extended oral contraceptives.

SonoVCADTM – An algorithm that automates the acquisition of images to display the planes that are needed for a complete ultrasound evaluation with a four-chamber view of the fetal heart. The technology is incorporated into the software of obstetrical ultrasound machines.

NutriNerveTM – A nutritional supplement specifically formulated to support nerve heath. The ingredients improve neuropathy symptoms by improving the underlying biology of the patient.

Loestrin 24TM – Oral Contraception.

St. Mary’s Home for Disabled Children Celebrates 65 Years St. Mary’s Home for Disabled Children provides unique, complex, around-the-clock care with its hearts, hands and minds within a homelike environment for special children with severe disabilities, so each child can achieve his or her fullest potential.

About 90 children and young adults—ages newborn to 21—from all across Virginia live, play and go to school here.

The Home is the only pediatric long-term-care residential facility of its size and scope in the State for children and young adults with severe disabilities, and one of only about 100 such facilities nationwide. Children come to St. Mary’s as a result of birth disorders, traumatic accidents, illness and child abuse.

St. Mary’s Facts • Transition to group homes, adult inter-

• 1,400 medications and 250 splint and

mediate care facilities for people with mental disabilities, skilled-care adult homes, foster care, state training centers

position changes daily – the equivalent of a 120-bed hospital

Features • 10 classrooms • Facility-run occupational, physical and recreational therapies

• Four newly furbished courtyards, including sensory and butterfly gardens

Residents • Up to 92 residents, newborn to 21 years old

• Birth disorders, traumatic accidents, illness and child abuse

• Serves families throughout all of the Commonwealth

• Referred by hospitals, physicians, social service agencies and families

• Average length of stay is seven to nine years

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City of Norfolk 2010 Annual Report

• Playground with specially adapted equipment/hydrotherapy pool

Education • Partnership with Southeastern Cooperative Educational Programs/75% attend classes onsite

• One-fourth attend Norfolk and Virginia Beach public schools

• Virginia Alternative Assessments, an alternative to the Standards of Learning for Virginia public schools.

• Atrium for sports and activities Services • Clinical care delivered 24/7 • Routine examinations by specialists from Children’s Hospital of The King’s Daughters and Eastern Virginia Medical School

• Early Intervention Program

Costs • Covered by Medicaid, United Way, grants, individual, corporate and municipal donations and St. Mary’s Foundation

• Assistance through the U.S. Armed Forces’ Exceptional Family Member Program

City of Norfolk 2010 Annual Report

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