The State of Region is an annual report developed by the Dragas Center for Economic Analysis and Policy in the Strome College at Old Dominion University. For background information, the Dragas Center is thusly named because of the generous support received by ODU from the Dragas Family Foundation, which in turn is supported by the Hampton Roads Chamber of Commerce and the Dragas Companies – a residential home construction company that was ‘recognized as the top-selling local builder in Hampton Roads’ in 2017. The State of the Region report is also sponsored by TowneBank. There is nothing wrong with successful businesses supporting local communities and charities, but it is important to remember that they have a vested interest in new development in Hampton Roads, and in Suffolk. Keep this in mind as you read about Care4Suffolk’s take on the report: State of the Region.
The report reflects their evaluation and projections of the economic environment that makes up the Hampton Roads regional metropolitan area. It compares Hampton Roads to metropolitan areas like: Durham, NC; Charleston, SC; and Jacksonville, FL.
You might be wondering what this has to do with Suffolk, and specifically land use issues in Suffolk. The answer is – a lot! This report exemplifies the Regional views of Hampton Roads and the policies many regional organizations want implemented at the local government level. There is nothing wrong with being part of a bigger region and collaborating with neighboring cities and counties, but we also have to be very cognizant of Regional goals taking precedence over the goals of our City and its citizenry. We must think about how it will impact the city’s long-term fiscal health and quality of life.
As a region, Hampton Roads has been experiencing a healthy economic growth, even compared to pre-covid metrics. The authors of this report, however, say that that isn’t enough. We have to compete with the other metropolitan areas if we want to “win the economic race’.
If you read through the State of the Region, you will hear about the economic importance of the Port of Virginia, the need for workforce housing, and about a Regional focus to economic development. These themes will sound very familiar if you have read the draft of the Suffolk 2045 Comprehensive Plan (comp plan) that City Council is set to vote on next month (November 20th). This comp plan bases the future growth in Suffolk on the idea that the Port of Virginia is growing and Suffolk must capitalize on it.
But will Suffolk actually benefit from this proposed new comp plan, or will the Region benefit at Suffolk’s expense?
Let’s look at some data from the State of Region Report. Below is the map of the areas included in the Hampton Roads Region.
The overall region has been experiencing low population growth, certainly lower than the competing metropolitan areas.
This low population growth isn’t true for the City of Suffolk, however. According to U.S. census data, Suffolk has experienced a 6.7% population growth in the last three years, with an annual growth rate of 2.19%. So while the Hampton Roads region only grew by 7,216 individuals in the last 3 years, Suffolk alone grew by 6,335 individuals in that same time period.
Despite the overall flat growth rate in the Hampton Roads region, this State of the Region had a whole section focused on expanding the housing market in Hampton Roads.They state that increasing the number of housing units may alleviate the affordable housing crisis. They even state that it doesn’t have to be affordable housing being built, just more housing of any type in general will bring down the costs of housing and rents.
There is a genuine need for affordable housing in Suffolk, Hampton Roads, and throughout the country. However, in the State of Region, they offered no evidence that their plan would actually make housing more affordable. In Suffolk, since the 2020 census, there were 2,759 units added (based on residential permits issued by the city). This is in addition to the 38,364 units from 2020 census data. (Source: U.S. Census Data). With the average dwelling containing 2.5 people, that is enough housing units for 6,898 people. Remember that Suffolk added 6335 people in that time period. Census data also shows that there were 2,809 dwelling vacancies at that time as well.
Also during that three year period, according to the Zillow home value index, the average house price in Suffolk went from $261,802 in 2020 to $346,957 in 2023, an increase of $85,155. The Suffolk market built more houses than the population growth required, had a vacancy rate of 7.3% and prices still increased by 24.5%. Clearly the housing costs are not just simply an effect of supply.
The State of the Region goes on to explain that the onerous rezoning and permitting processes are hindering the housing market: ”While zoning codes are the primary regulatory constraint on new housing supply, the site and building plan approval process described above is also a very real barrier to production.” On pages 80-81 they specify that to navigate the process from rezoning to permitting requires them to contract with specialists including: land use attorneys, environmental consultants, traffic consultants, wetland consultants, civil engineers, architects, plumbing/mechanical/electrical engineers, and landscape architects.
They state that: “Building projects are not only subject to local ordinances and regulations, but also to state building codes and myriad other state and federal requirements governing road design and construction, accessibility, wetlands, endangered species, and many other areas.”
These hardships they are citing are the laws and regulations that make sure development is safe – safe for those constructing it, safe for the new owner, safe for the community, and safe for the environment – oh the horrors!!! Then they state that the costs can climb into the millions of dollars. But if you look at their data, and take the average figure, all of these building regulations meant to protect people and the environment, when broken down, come to about $6,700 per multi-family home or $22,000 per single family home. The developers and builders don’t eat that cost; it is added to the price of the home. Compared to the cost of land, labor for construction, materials, etc., the added cost to ensure that development is safe for our community doesn’t seem that onerous, nor does it seem to be the bulk of the development costs.
This biggest takeaway from this State of the Region, and the reason why it should be important to every Suffolk citizen, is the part where they state that Hampton Roads needs more housing and that, “Given that more than 50% of workers in Hampton Roads live in one community and work in another, we should be indifferent about where jobs are created in the region. Building more housing, regardless of type, benefits the entire housing market. Lastly, housing policy is something we can directly influence in Hampton Roads and would benefit each of the key industry clusters as well.” (page 31)
It doesn’t matter to THEM where the houses are built, or what type of housing it is – it all benefits the Region. And it benefits the economic development of the Region, even if the jobs aren’t in the same location as the housing, because they have shown that people will travel from one city to the next for work.
There is a huge problem with this line of thinking. Hampton Roads is a region and NOT a municipality. A business building in Chesapeake pays Chesapeake taxes. A house built in Suffolk pays Suffolk taxes. This matters because residential housing is a loss when it comes to tax revenue versus costs of services. Residents require more services (roads, schools, libraries, parks, emergency service, etc.) than commercial and industrial developments. Warehouses have relatively low costs of service, but they also do not generate much in taxes, especially considering their footprints. Agriculture generates a net positive because, although it isn’t the highest in revenue, it also requires the least of any land use in services. Manufacturing and commercial tend to generate more in revenue than their costs of services. This is important because a municipality needs to BALANCE the residential/warehouse development to ensure that there is enough manufacturing/commercial to offset the residential development.
The 2045 Comp Plan recommends changing the land use of huge swaths of fiscally positive agricultural land for development as warehouses and workforce housing, which will be a drain for the city financially. No wonder the city staff decided to forgo the fiscal impact analysis, probably because it might have ruined the narrative that these decisions are fiscally good for the City. In another article, we discuss the regional influence on the 2045 Comp Plan. Regional “leaders” are looking out for the interest of the greater Hampton Roads Region and the direct impacts on Suffolk are NOT the priority to them.
An additional element from this report that is reflected in Suffolk’s proposed 2045 Comprehensive Plan is the idea of making the rezoning process easier for developers.
The State of the Region states:
“We must adopt a new municipal paradigm around land use, moving away from the ‘gatekeeper of growth’ model and toward acceptance of the responsibility to allow enough housing to be built. This means revamping zoning codes to allow more housing to be built without going through the laborious, expensive, and, sometimes, risky rezoning process (i.e. “by right”).” (page 85)
Suffolk’s proposed 2045 Comprehensive Plan shares similar ideas:
OBJECTIVES AND ACTIONS (p. 64, 2045 Comprehensive Plan Draft):
L.1 Focus development in designated Growth Areas and promote development that is consistent with the Future Land Use and Growth Areas Map.
AND
2.1.2 Review and revise current development regulations, including the Unified Development Ordinance (UDO) and the zoning map, to improve compatibility with the comprehensive plan.
Integration into City Operations and Processes
Regulatory Updates (p. 153, 2045 Comprehensive Plan Draft)
Revisions to the City’s zoning code and other regulations should be made in accordance with the plan. The process for updating the zoning code will be led by City Staff in collaboration with the Planning Commission and will be determined following the adoption of the plan. This will provide the City with the regulatory authority to enforce recommendations in the Future Land Use Map and promote other desired outcomes expressed through the plan’s actions.
Private Development Decisions (p. 152, 2045 Comprehensive Plan Draft)
Property owners and developers should consider the principles, objectives, and actions in the plan in
their land planning and investment decisions. Public decision-makers will be using the plan as a guide
in their development deliberations such as zoning matters and infrastructure requests. Property
owners and developers should be cognizant of and complement the plan’s recommendations.
The State of the Region is another example of Regional influences at play in our local government. Their goals have become manifested in Suffolk’s new 2045 Comp Plan. Regional entities are intent on using Suffolk’s bountiful land resource to serve the needs of the Port – warehouses and workforce housing. This will continue this unfettered growth in both population and development in Suffolk. We have already been experiencing these impacts with over-crowded schools and traffic congestion. However, the long-term fiscal impacts will be devastating, but regional goals will have been met. The Region–and some on our city leaders–are willing to sacrifice Suffolk for the sake of regional growth.
PLEASE go out and vote, sign our petition, and let City Council know that you want them to vote ‘NO’ on this failed 2045 Comprehensive Plan.
I think Regional Planning is important but at this juncture Suffolk would have to be provided some type of existing “equity” to balance the scales of development. It’s obvious that if Virginia Beach, Norfolk, Chesapeake, et al had abundant open lands they wouldn’t give a rats ass about giving Suffolk a seat at the “regional” table. They’ve taken their spoils for years and given us NOTHING. Now they want us to take the brunt of the leftovers. No thank you!
Our own city leaders have voiced this same opinion many times in the past. Have you ever heard ANY of the city mayors, including our own, state at their State of the City Address, that they couldn’t wait for that “joint” project with so and so down the road? Never. I’ve also watched many of those Hampton Roads Planning Meetings, sent letters to them regarding the need for Regional Planning when it comes to the exponential growth of logistics centers in Hampton Roads, and even sent an application in to serve on one of their boards and have heard nothing in return. It’s only now that these other cities are more overwhelmed with development and traffic than Suffolk is and the current Governor is waving state and federal $ in front if everyone to “regionalize” for the Port if VA that Suffolk is even in the conversation. Yes, past and current Suffolk leadership has a lot to do with this. They have always taken the isolationist position. Don’t bother us, we won’t bother you. It’s who Suffolk has always been. They’ve as much requested that we lobby our State Representatives to get rid of the Dillon Rule. Regional planning could be a good thing, but first they need to balance the score and then we can talk.
Suffolk:
The Trucks, Trains, Trash
Pipeline and Warehousing
Center of Hampton Roads