| The developer whose Lotus Creek property has
been tied to the city's attempt to turn over the public's interest in
Ferrell Parkway, the right-of-way for a new, improved and direct route
to the city's southern beaches, owes the city more than $134,700 in back
taxes, according to records in the City Treasurer's office. The more than $134,700 includes back taxes, penalties, and interest and involves 32 parcels in the Lotus Creek Development project, but not the first half of 2002 due December 5. The project is wrapped in a confusing, convoluted web of intrigue involving a city councilman with numerous interlocking connections to the various people, each with additional links, in what has been called a typical Virginia Beach 'good ole boy' network. Councilman Louis Jones, a director of Resource Bank where the partners in Lotus Creek obtained financing, abstained from council action to avoid a conflict of interest. However, some of the partners are also on the bank board with Jones and along with others are also involved in the Town Center project. Jones was the council's negotiator who drafted the Town Center contract with bank board and Lotus Creek principals. When the city's attempt to sell the right-of-way earlier this
year to FWS was ruled
illegal by a judge, City Manager James K. Spore
came up with an idea for
leasing the property to FWS to circumvent the judge's ruling. (The city
also filed an appeal which is pending). The same group that sued
to block the sale is also suing to block the leasing. That case
will be heard next Wednesday in Circuit Court. The city is trying to rid itself of the long held, unassessed
publicly-owned right-of-way for $1/year for 40 years to the U.S. Fish and
Wildlife Service (FWS). The city will also pay Lotus Creek
Associates, a partnership
that owns the development project $140,000. FWS, in turn,
will pay
Lotus Creek Associates $2.86M for property it won't develop. Spore
and several members of the council, alleging that Ferrell Parkway, as
planned will never be built, prefer to improve the existing Sandbridge
Road. FWS has agreed to give the city a small parcel of land it owns to
improve the existing narrow, twisting, and dangerous Sandbridge Road and
further agrees to not oppose the project on environmental or other
grounds. At that point, Sandbridge Road will be the only way in and out of the
popular and growing south beach area. FWS has long
maintained a hidden agenda to limit all encroachment on the Back Bay
National Wildlife Refuge. The proposed deal will give FWS total
control over all future development of the southern area of the city. Residents have called the deal a federal land grab and political
payoff. Others have charged this is Spore's
way of getting the city out of a bureaucratic quagmire of bad decisions
that could cost the city millions for giving the development all its
permits to build in the first place. Residents in favor of the
deal contend, that if built out, the development will cause serious
drainage problems in an area already suffering. City Atty. Les Lilley said he
was unaware of the unpaid tax situation involving the developers.
But because all taxes must be paid at closing, he said the city would
have collected. (Persons noting errors of facts in VNS news stories
are requested to email the editor at: Editor@virginianewssource.com
or call 757-340-4686) See also: |