NORFOLK
Waterside needs $350,000 from the city to help pay its water and electric bills and delinquent property taxes.
The downtown entertainment complex, owned by an affiliate of the Norfolk Redevelopment and Housing Authority, needs the money to cover its bills through June. The deficit stems from falling lease revenues at the struggling facility.
“Waterside isn’t going dark,” said John Kownack, assistant executive director of the authority. “We’re not going to go out and not pay the bills. The board just wants to know there’s a commitment from the city.”
But so far, that commitment hasn’t been forthcoming. The authority has been asking the city for money since October, Shurl Montgomery, the agency’s director, said Monday.
The deficit has been documented in monthly reports shared with Waterside’s managing board, which comprises Kownack, Norfolk Assistant City Manager Stanley A. Stein and Waterside manager Lane Brown. Stein, however, said the city never received a written request for the additional cash.
Waterside’s operating budget has only about $45,000, Montgomery said. And one of its bills is already late.
According to information from the treasurer’s office, Waterside’s quarterly $27,000 real estate tax bill wasn’t paid in March. So far, a $2,645.60 penalty has been assessed. If the tax bill remains unpaid, interest will begin to accrue starting May 1.
Housing Authority Board Chairman Sheppard Miller III said Monday he planned to call city officials immediately and request that Norfolk cover the bills.
“They’re distracted,” Miller said of the city officials, who have been working on the upcoming budget. “They’re really not focused on the fact we’re short. But I’m confident they’ll come together.”
City Council members contacted Monday said they did not know about the deficit or the tax penalty.
“I’m surprised to hear that,” Councilman W. Randy Wright said.
“We have had some preliminary conversations about Waterside,” Vice Mayor Anthony L. Burfoot added. “But we didn’t know it’s running a deficit.”
Mayor Paul Fraim said the city will provide the $350,000. Waterside still generates money for the city from the tax revenues it generates, he said.
Once hailed as a catalyst to downtown revitalization, Waterside has struggled in the past year.
The building’s few shops, food court and restaurants have faced increased competition from the rest of the booming downtown.
In recent years, lease revenues haven’t covered the operating costs, and the city has provided $850,000 annually to pay for utilities and the construction debt on the 25-year-old waterfront building.
In the past year, sales have dipped, and some storefronts have gone empty. The shortfall has risen to about $1.2 million, Kownack said.
The slowdown has prompted calls for city leaders to re-examine the use of Waterside. City officials say in upcoming months they plan to study the facility’s future, including whether they should renovate it or tear it down.
Councilman Paul R. Riddick said at last week’s council meeting that it’s time to consider tearing Waterside down. A developer would pay a premium to build on the site, he said.
“It was great in its day,” he said.
Staff writer Harry Minium contributed to this story.
Meghan Hoyer, (757) 446-2293, meghan.hoyer@pilotonline.com
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Tearing Down Waterside
I saw the excerpt on the local news this morning and had no idea it was coming down. It is very sad they want to tear it down. I agree something needs to be done to it, but I don't think adding more stores, banks, or condo's is the answer to re-vitalizing the downtown. I've been gone for about 4 years and when I came back into town, I went to the Waterside. It definately has went down hill in cleanliness and what it has to offer. A few years ago, that was the place to go. We would drive from Hampton ever weekend to go to Jillians and Have a Nice Day Cafe.
I haven't seen the inner harbor at Baltimore in about 7 years, but as I remember, I wasn't totally impressed with that setup either during that timeframe. We had them beat handsdown. It may be different now, but all they had to offer was a Hard Rock and ESPN Zone. There was zero nightlife there. You had to go down the road to another area. The problem Norfolk has is, that particular area is a major attraction for the festivals, concerts and events. People like to park their cars and boats there to party. I don't see a problem with that. If anything, I'd say make it bigger and better. Even open a casinio to draw people in a
Broke?
Waterside is so poor and out of money they can't even pay anyone to take down the Christmas decorations from the roof!
time for a visit
I've never seen waterside. perhaps i should visit now and check it out before it's torn down. it won't last forever it's a matter of time before it goes. the city won't pay to keep it but for so long; it had a purpose but downtown is where it needs to be so there's no since in keeping waterside around. it's a shame, but this same has happened in many other cities in America; just glad it's just waterside, and not the entire downtown.
Don't tear it down
Why is bureaucracy's answer to just about every building problem, "Tear it down"? Teardowns also cost money, and rebuilding wastes resources. If the structure is sound, why not repurpose it, such as for the great idea posted below, a new home for the library? Two problems solved, and money and space saved!
if waterside cant be
if waterside cant be selfsupported then shut the thing down we dont need anymore wasted tax dollars proping up the private sector. asking for help now what about the years with all the nice tax incentives the city probably gave them. hay mr mayor i would like you to have the city pay my taxes and past due utilitys
let the electric get cut off and the city move to sieze the property for past due taxes and i would bet that the money will be found to pay up to date
bulldozers...
Maybe some the scrap can be used to pay off their debt. Last time I was there, a bum was taking a bath in one of sinks in the mens room. Eeeewwwwww.....
You're forgetting.....
"what Norfolk should do is revamp Waterside to reflect what the Georgetown waterfront has in D.C.. 3-4 outdoor bars and restaurants that can play their own music close to the waters edge, with a nice sidewalk in-between and convert the upper level into office space."
Norfolk is Norfolk and DC is DC. Only so much lipstick you can put on the pig. In the end, everyone will realize they are kissing a pig.
It's time
to bring in the bulldozers.
Location; Location; Location
The concept of Granby Towers with it ultra chic clientele had one large drawback; its location. Now the same idea on the waterfront would have a much better chance of success. To be fair to all citizens, keep the bottom three floors as retail, clubs, restaurants, and such. When connected to Town Point Park we would still retain a valuable space for all citizens as well as having a viable sky high, waterfront vista development.
all Norfolk needs to do is look at the Georgetown waterfront!!
what Norfolk should do is revamp Waterside to reflect what the Georgetown waterfront has in D.C.. 3-4 outdoor bars and restaurants that can play their own music close to the waters edge, with a nice sidewalk in-between and convert the upper level into office space. very simple. Forget that stupid club on the top floor, whatever lame seafood restaurant might still be in there, and whatever saloon pool haul pub that is. Upscale it like the D.C. Georgetown waterfront and the people will come. Waterside is dumpy joke by comparison. In the warm season the Georgetown waterfront is slammin Thurs-Sundays. Hope Norfolk won't squander the opportunity they have in their hands. If their website had a suggestion box it might help.
problem solved!
Trade NSU the Waterside for their president's residence. The Pres will get the sweet new shiny crib she's always wanted and Norfolk PD will get a much needed police substation! Everyone wins!
Parking
Waterside Garage is just across the street.
Not the function of government
As usual every time government sticks it nose into private business, they screw it up for everybody. The same usually happens in Virginia Beach as well. It is not the function of government to buy shopping venues and and malls. Their function is for the opportunity of the investor to gamble their money, not hold the taxpayers liable for it's, or penalize the investor for it's successes. Breakout your checkbooks Norfolk citizens. We at the Beach feel your pain as we are still subsidizing The SportsPlex and also forking out thousands of dollars to add 1/2" to a swimming pool.
Waterside problems are typical
I can tell you what the problem is with Waterside in two words: No Parking!
Without convenient free parking, no one will patronize an establishment. Downtown has the same problem--no parking and I am disabled so I can park in a metered spot for free and there is still no parking. The parking garage is too far from the attractions and I, like all women, will NOT schlep half a mile is fashionable and painful shoes. In most places you can save a venue with free convenient parking or free Valet parking--which is cheaper than bailing them out again and again. Women will not walk long distances in heels or through a high crime area and with the Union Mission and it's lovely clientele being downtown, I won't go there without a gun.
SPSA, Mike Barrett...
The both seem to be run in the same fashion... Just don't call KPMG to do the audit...
MIS-Management!
Of course Waterside is doomed. The Marketing is non-existent - the web site is lame - everything NRHA is involved with is taxpayer supported - It is obvious that Waterside is being under utilized as a city asset - I see the future - The waterside becomes FESTEVENTS Corp. and all festevent operations move in and that will benefit all the waterfront area. Why is Festevents over on Main St.??
Check out the 2008 fest events activity calendar - much much entertainment is coming to the waterfront. www.festeventsva.org
If the city closes waterside there will be a price to all elected officials they can not afford. let's start with may '08. re-elect no-one.
dokein
...why not also make it the new permanent home for the Central Library?
GOOD CALL!!!
well, we are short a library now...
Waterside is a bit large to be just a transit station... but it they're going to rennovate it, why not also make it the new permanent home for the Central Library?
Indoor Skate Park!
Just a thought!
Pay mine too..................
Hey, I have a few utility bills I'm having a difficult time paying.....Norfolk, can I have the $ to pay them?