It’s Not the End of the Line, It’s the Beginning

Comment by HRP Guest Blogger Matt Simons, a Masters in Public Administration graduate student at ODU and a student of urban planning.

Re: Virginian-Pilot editorial of 2/27/09 entitled “It’s the end of the line for rail negotiations” concerning the history of negotiations of the Norfolk Southern (NS) right-of-way. In the coming weeks, Virginia Beach city council will be forced to make a decision as to the best and most appropriate means of acquiring the old Norfolk Southern (NS) right-of-way. This is a rail line which extends from Newtown Road to the oceanfront, the planned future route for the Virginia Beach extension to Norfolk’s new light rail project.

NS is currently paying taxes on the rail line of an assessed value of $7.3 million. However, NS wishes to squeeze more than $40 million out of the Virginia Beach tax payers, by claiming their property is worth that amount.

To some Virginia Beach citizens, the light rail extension is viewed as a political tool for developers to make millions of dollars through the transit oriented development (TOD) which will surely follow. Many feel that their tax dollars are being used as a subsidy for development which they feel does not even affect them. This notion is not only negative to the perception of local politics, but also to the much needed light rail, which is becoming an unwarranted scapegoat for poor spending.

It is not a BAD thing for developers to want light rail, and they should rightly pursue what’s in their best interest. However, the city council must make decisions in the best interest of all the tax payers. They don’t just see the cost associated directly…but they also see that transit oriented development (TOD) will take a huge tax burden off home owners by diversifying the tax base (Virginia Beach is about 88% residential). In addition, the city council knows that light rail transit (LRT) works in accordance with the city’s future plans of “smart growth.” This involves concentrating growth within a city center to avoid suburban sprawl, which means less pressure will be put on the city council to one day extend the green line further into Pungo.

It is important to note that smart growth favors long-term regional considerations of sustainability over the short-term concerns associated with capital cost. If we do not fix the growing problem now, we will be faced with worse problems in the future. The hardest issue facing the media now? Stressing the importance of correctly informing the public on the problem.

Transportation is the most obvious, and light rail will one day work within the context of a larger network of infrastructure, to perform viably to be a true alternative for commuting within the region. Additionally, the problem is also growth management. And for the planners and city council, they see light rail a way to preserve what little green space we have left to balance out our economic concerns with the ecological needs for future generations. There is also a push to attract more commercial business in order to take a tax burden off the home owners, as well as give the residents more employment opportunities within their own city.

Together light rail and smart growth can preserve a sustainable Hampton Roads and allow adequate mobility for its residents which will allow for a more workable growth model for all its citizens.

It’s the end of the line for rail negotiations The Virginian-Pilot © Editorial February 27, 2009

Norfolk Southern Corp. has a preliminary agreement to sell its right of way for a light rail line between Norfolk and Virginia Beach’s Oceanfront. An appraiser chosen by the rail company and the regional transportation board will determine the property’s worth.

September 1996 – Buying Norfolk Southern’s 11-mile right of way is a top priority and needs to happen quickly, the Virginia Beach City Council says. The rail company says the property is worth $40.6 million.

August 2003 – The City Council agrees to explore the asking price for Norfolk Southern’s right of way, reigniting discussions from August 2006, when Virginia Beach said the line was worth $4.5 million.

December 2007 – The City Council said it would spend $10 million to buy the Norfolk Southern right of way, the likely route for a light rail project, and has asked for $20 million from the state. The rail company said the property was appraised for $50 million in 2008.

January 2009 – A city appraisal of the right of way determined it’s worth about $6 million. Norfolk Southern wants $40 million.

February 2009 – Same song, umpteenth verse.

Years after Virginia Beach officials agreed that the city’s transportation future was tied to the 66-foot-wide rail path between Norfolk and the resort area, we’re still hearing the same tune.
The city and Norfolk Southern are far apart on a fair price for the land.

The rail company wants $3.8 million per mile – about $40 million – for the 10.6-mile swath. The land is valued at $7.3 million for tax purposes. By comparison, Norfolk is paying $1.5 million per mile – the fair market value as determined by the state in 2003 – for its 4.8 miles.

Granted, the straight east-west path from the Norfolk border to the convention center is worth more. It runs parallel to, and just north of, Interstate 264, past Town Center and Hilltop.

More than a dozen years ago, according to an agreement between Norfolk Southern and the Tidewater Transportation District Commission, the price for the right of way was to be determined after an appraisal by a real estate agent selected by both parties, at a cost of $100,000.

In 2007, shortly after Norfolk Southern abandoned the line, Virginia Beach authorized its city manager to negotiate a purchase or begin condemnation proceedings.

It’s starting to look like Norfolk Southern simply doesn’t want to sell. If that’s the case, Virginia Beach needs to begin seriously considering its alternatives, including condemnation.

If the rail company is ready to deal, its negotiators need to be locked in a room with Virginia Beach’s leaders. Nobody should be allowed out until they’ve agreed on a fair price.

It’s way past time for the fat lady to appear.

How to grow the Hampton Roads region with M&S

by Mike McGinnis, Executive Director Virginia Modeling, Analysis and Simulation Center

Click here for the Presentation

Significant economic development and business growth opportunities exist for the Commonwealth of Virginia and Hampton Roads region. Several notable growth areas for our region are modeling and simulation, defense and logistics.

Defense has long been the economic anchor for the region with Hampton Roads being home to four four-star headquarters including the largest navy base in the world. During the past decade, the region has emerged as a national hub for modeling and simulation research and development. There are over ten modeling and simulation research centers currently located in the Hampton Roads region with the U.S. Joint Forces Command being the government anchor for this emerging industry.

On the academic side, the Virginia Modeling, Analysis and Simulation Center (VMASC) of Old Dominion University has emerged as one of the top M&S centers in the United States. ODU is one of only three universities to offer modeling and simulation graduate degrees.

The sector that holds the greatest growth potential, however, is transportation, distribution and warehousing. In this sector, the Hampton Roads and Crater regions are strategically positioned to emerge as a nationally prominent mid-Atlantic hub for logistics, transportation, distribution, and warehousing. Over 50 top companies have already established major distribution centers in Virginia to take advantage of the Commonwealth’s strategic location that puts them within 750 miles of two-thirds of the U.S. population.

In addition to river and seaports, airports, interstate roads and rail networks available in Hampton Roads and Crater, the two regions also offer ample open ‘green space’ that is key to regional economic growth and to attracting new business and businesses.

Virginia features extensive transportation capabilities and capacities. The Commonwealth is served by two major airports in Northern Virginia and key regional airports in Richmond, Newport News and Norfolk.

A major expansion of the Hampton Roads’ port was completed in 2008 with the opening of the APM Terminal. The next expansion phase will be the $2 billion Craney Island Marine Terminal that, once operational in 2017, will handle 2 to 3 million cargo containers annually.

The Hampton Roads-Crater (HR-C) region features a robust network of interstate and primary roads, and major rail networks that will be further enhanced by the Heartland Corridor Rail Project connecting the region directly with the Midwest.

By 2011, Fort Lee will be home to three major Army service support branches: Transportation, Ordnance and Quartermaster. Anchored by Fort Lee expansion and its emergence as the center for DoD logistics, the Crater Region is well positioned to expand as a hub for logistics in the decade ahead.

For the Commonwealth to capitalize on conditions in Hampton Roads-Crater and to achieve national prominence as a mid-Atlantic hub in transportation and distribution will require an articulate vision and strategy; support from government, industry, and elected officials; and a regional strategy for funding, job creation, energy requirements and workforce development. Growth of this magnitude demands cooperation, coordination and synchronization of resources across the municipalities and counties that make up the Hampton Roads-Crater region.

Modeling and simulation can help with this growth by representing and benchmarking current capabilities as they exist today in an M&S environment will give federal, state and regional leaders and stakeholders a common framework for envisioning a growth strategy and plans for the Hampton Roads-Crater region as a strategic mid-Atlantic hub for logistics, transportation, distribution and warehousing.

The study team will, in turn, take the regional growth plans and turn them into scenarios in the M&S environment. Through visualization and metrics, the M&S virtual environment will provide stakeholders with a common framework for testing, analyzing and debating the growth scenarios from various perspectives – local, regional, state and federal – government, military, industry, and academic – that are important to the constituencies of the region, the Commonwealth of Virginia and beyond.

HRP Member, Norfolk Southern publishes Sustainability Report

	HRP Member, Norfolk Southern, has issued its first Sustainability Report as part of their commitment to being a responsible corporate citizen of the communities they serve.
“Railroads are the most environmentally friendly means of moving the goods that move the economy,” says NS CEO and HRP Board Representative Wick Moorman. Read the report and try the “Green Machine,” a Carbon Footprint Analyzer.