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Will Taxpayers Be Footing the Bill for 460 Development?

“Forty percent of the justification of any transportation project in our region today is driven by congestion. So if you don’t have congestion, you’re probably not gonna get money.”

-Robert Lewis, City of Suffolk Director of Public Works, Planning Commission 2045 Comprehensive Plan public hearing, July 16, 2024 (YouTube time stamp 2:20:50)

It isn’t Mr. Lewis’ fault that Hampton Roads’ traffic is an absolute mess. He was just stating things the way they are, but does that mean we have to just accept it?

 

He and our other city leadership seem resigned to it as the status quo instead of using the leverage our city has to demand better support of our infrastructure. Suffolk has the land that the Hampton Roads region and leaders in Richmond want to develop in support of the Port of Virginia—the port especially really wants and needs our land for warehouse space.

Our city leadership needs to hold people’s feet to the fire and not be so willing to bow down to the demands of other entities. We have what they want and they should support our city as an equal partner in this scheme they call “Responsible Regionalism.” This “responsibility” should work two ways and Suffolk should not be left scrounging to pay for the infrastructure the region needs.

 

An example is happening right now, as some people celebrate the $30 million that was just granted for Route 460 improvements to support the Port 460 project. Did you know that this three-mile project is going to actually cost a total of $86 million?  

While watching the March 20, 2024 City Council Work Session about this project, I learned the following:

  • There is no requirement for these road improvements to be in place for Port 460 to be built out (per Deputy City Manager Kevin Hughes, Time Stamp 36:10)

  • The Port of Virginia only kicked in $1 million 

  • The developer only kicked in $6.6 million

  • City officials have spent the past two years just trying to get the $30 million funding (take a look at the extensive packet that was put together to ask for this money—it looks like a lot of work hours must have been put in!)

  • City officials have decided that we are a “Port-Centric Partner” in order to “sell” our need for the funding

  • The $30 million is just for “right of way acquisition” and utility relocation

  • In order to secure the $30 million, the City had to prove that it can fund the remaining $48 million for the actual construction costs

  • As of now there is no outside funding for the $48 million, so it is budgeted into the Capital Improvement Program (CIP)

  • City financial advisors were consulted to determine the city’s ability to fund “its portion” of the project and determined that Suffolk does have “the ability to issue an additional $48,049,520 in general obligation bonds between FY 27 and FY 29” 

  • By FY 2027, Suffolk will have to find additional revenues to repay debt service; additional required revenue will increase each year

This is the point where we’ll probably accept the low-hanging fruits of development options as our sources of additional revenue. And the cycle will begin again.

And they wonder why we are concerned about a Fiscal Impact Analysis!

No doubt Route 460 must be improved to accommodate all the new traffic projected for Port 460 and the miles of even more warehouses and residential development envisioned by city staff in the new 2045 Comprehensive Plan, if it gets approved.  According to the Suffolk News Herald article about the $30 million funding, Governor Youngkin said this is all happening “through the power of partnership.” However, it feels like our “partners” are making us jump through a lot of hoops to do their bidding.

Documentation:

Please sign our petition to urge City Council to vote ‘NO’ to the new 2045 Comprehensive Plan. 

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