Hampton State-of-the-City Address
Mayor Ross A. Kearney, II

November 10, 2005

The Hampton State of the City address is provided each year so that citizens can have a better sense of the strategic direction their city is moving.

As your mayor, I am honored to have the opportunity to speak with you at this time.

This last year has been filled with many diverging opinions about our city and the way it is run, from all spectrums of the opinion scale. I understand that. I truly believe that it's important for citizens to be involved in their government, and to be attuned to the projects, plans, and ideas that their city leaders are proposing. But it's also important to remember that this must be done with dignity for all those involved. It's also important for city leaders to welcome input from citizens, so that an open, constructive dialogue can take place. That's what makes this country great. We may not always agree on every issue, but we respect each other. And we recognize that, as Americans, we all have many freedoms - and with freedom comes responsibility.

Today, with our city at an economic crossroads, there are many opportunities for open dialogue - and I welcome that. We see examples everyday in the city, through our Council-appointed boards, neighborhood associations, civic groups, and other organizations where citizens are involved in important issues and making their feelings known to city staff and our elected officials. In Hampton, this is truly one of our strengths.

Most citizens cannot help but be aware that our city of Hampton, Virginia is in the midst of change.

To some, it's been described as a "window of opportunity" - a sign of positive growth.

With others, there is perhaps a sense of unease.

And still among others, there is a sense of vigor, of refreshed renewal - even excitement.

But no matter how you look at it, the transition is inevitable. And whether you shun it or embrace it, there's no question that, in the cycle of our city's evolution, observers would say that this is long overdue.

Due to evolving market conditions and some very deliberate actions by city staff and your elected leaders, positive change is forthcoming. This "evolution" - even in its early stages - has great potential for our quality of life and the well-being of our children and our grandchildren.

It will need to be managed carefully and deliberately, as we move forward. It will sometimes be very complex as we consider our options. But the vast potential exists to make our neighborhoods and our city the best that they can be.

For a great number of years, Hampton has been playing "catch up" with the cities in the rest of the region. That's serious because our tax structure relies heavily on sales and meals taxes.

Typically, throughout much of the 1990s, our growth in taxable sales dollars was behind the other major cities. While Virginia Beach, Chesapeake, Newport News, and Norfolk were increasing their gross leasable retail space, our numbers were lagging.

Businesses moved away from Hampton to the middle Peninsula. They were following residents who had migrated earlier.

Here's one example of how that impacted us: Even though we have miles of waterfront property, home values in Hampton were typically lower than other cities.

But now I sense a "new spirit" in the City of Hampton. Things are moving forward on several fronts.

There's pride in our schools and their recent academic accomplishments.

In the last five years, as we look at the educational performance among the 15 older urban communities in Virginia, Hampton has moved from 11th to 1st.

9 out of 10 Hampton students are skilled in computer use.

The Hampton School Division has more National Board Certified teachers than any other school division in Eastern Virginia. In addition, Hampton City Schools recorded more schools earning Adequate Yearly Progress status than ever before.

There's also pride in our retail developments - expansions, and unique offerings.

In fact, the City of Hampton is experiencing more private investment in our community than perhaps any time in recent history. This is very important to the economic health of our city because private investment is needed to generate new jobs. It is needed to produce additional tax revenues to help pay for city services and lessen the burden on homeowners. Private investment is also needed to help jumpstart our neighborhood revitalization efforts.

Some of this progress we've made is reflected in the development of the Neighborhood Master Plans. Although they are in their early stages, these Master Plans and other related initiatives are already beginning to bear fruit.

As a result of the city's Downtown Master Plan, several projects are underway representing over $50 million in private investment. This is more private investment committed in our downtown in one year than all of the previous 17 years combined.

A new mixed use retail and condominium project is being designed for the block across the street from Carousel Park. Ground is being broken for luxury apartments surrounding the city's Ruppert Sargent Building. A condominium marina project will be built on Bridge Street next to the Hampton Yacht Club. And plans are underway for a restaurant and retail development near the Hampton Carousel.

The Buckroe Beach area is a precious jewel on the Peninsula and is finally being recognized for its beauty and economic worth!

The city, under new leadership, is investing in the Buckroe community with a plan that relies heavily on the Buckroe Beach potential for residents and visitors alike.

With the closure of Fort Monroe, we must re-think the development of Buckroe on a larger scale and realize that it, too, is tied to the development of the Post.

At Buckroe, the city will continue to assemble blighted properties, improving the quality of life in the Beach community.

The city is committed to rebuilding the fishing pier and assembling land to make that a reality.

The Buckroe plans also call for the building of a new school and community center, and making improvements along the gateway to the Beach at Pembroke Avenue.

The Coliseum Central area is the city's economic engine. It's there that the new Convention Center and Embassy Suites Hotel have opened. At the Convention Center, bookings are well above projections. People are coming to Hampton.

An $80 million new housing development is underway near the Coliseum adjacent to Newmarket Creek. And, the City has been working with Coliseum Mall on their preliminary plans to convert the mall into a town center.

There are still opportunities for future development near the Convention Center, and it is important that we capitalize on those opportunities.

Meanwhile, seven new businesses opened or were leased along the boardwalk of The Power Plant, which will continue to grow. The Power Plant is attracting visitors from throughout the region and beyond, proving that this is indeed the "fun side of Hampton Roads." Two new hotels are being designed for a nearby site.

In the Kecoughtan Corridor we are seeing great participation among citizens in their planning process. At a recent meeting at Armstrong Elementary, over 400 citizens came to hear the latest version of the plan, and many offered their ideas.

We are also growing in other areas as well.

In Phoebus, a $26 million multi-hotel development is underway on the former Helmer property next to I-64. A $25 million luxury condominium project is being designed on the site of the former Sam's Seafood restaurant. And a feasibility study has been done for a new seafood market at the foot of Mellen Street, modeled after a successful market in Washington, D.C.

During the past year, our economic development staff assisted seven new businesses and eight existing businesses in bringing more than 1,600 new jobs to Hampton. These businesses represented more than $60 million in private investment in our city. Examples include Northrop Grumman, SAIC Hampton, the National Institute of Aerospace, Nextel, and Verizon.

We are still very much in the early stages of this evolution - and it's important that we stay focused. There is much to be accomplished.

More than any community in the Tidewater Region, the City of Hampton prides itself on neighborhood empowerment. Aberdeen Gardens, Wythe, Buckroe, Downtown, Fox Hill, and along the King Street corridor (to name a few) have in their own way been working to transform their communities into what they want them to be.

In neighborhoods, we are continuing to move forward with our Crime and Grime initiative - that's the city's aggressive campaign against blighted, slum, and repetitive drug properties. Communities have joined with the city to identify areas that need intervention - and that's a major first step.

We continue to see progress with our incentive program for homeowners that focuses specifically on housing revitalization in the Olde Hampton and Pasture Point neighborhoods. The long-term goal, as this program begins to have a noticeable result, will be to expand this focused approach to other areas of the city as well.

Many of the initiatives I've described, while certainly commendable, are similar to what other cities are doing as well. There's nothing wrong with that. But if our goal is to truly position Hampton as a community of choice, and to move our city ahead to where it can and must go, then it's essential that we be focused on Innovation and what is known as the New Economy.

A city with an innovative culture is one that has the ability to initiate, adopt, and implement new ideas - and to do so earlier, more frequently, and more intensively than anyone else, It's a challenge because the curve continues to evolve. What was innovative a few years back may be commonplace today - and completely outdated tomorrow.

Those are the parameters of the "New Economy" - and if we are to thrive in this environment, it is critical that we forge new strategic alliances and partnerships with key organizations, and invest in high-technology businesses that will create high-paying jobs in our community.

It's also important to have a quality community, with safe neighborhoods, great schools, and all of the other signs of a strong city that will attract these kinds of partners.

The recent wireless Internet initiative in Downtown Hampton, started by a local entrepreneur, is the kind of innovative spirit that can draw other creative thinkers to our community.

There are a number of emerging opportunities before us. For instance, the city took steps this year to aggressively compete for new businesses in the modeling and simulation field. This is a high-paying, high-growth industry that helps businesses test products in a simulated environment. The city is also exploring opportunities in the inter-modal transportation industry.

Two new projects announced last year are expected to position Hampton as a future medical hub, generating hundreds of new high-paying jobs in the medical and research fields. Joining the new Sentara Medical Complex in Hampton is Riverside's plan for a $21.5 million medical office building. Hampton University, meanwhile, has selected Hampton as the site of its new $125 million proton beam cancer treatment facility.

NASA Langley has long been one of the gems in this region. Langley science and engineering is continually working to improve our nation's air transportation system and space exploration. In my mind, that's innovation at its best - and we are proud to have the NASA Langley Research Center as a part of our forward-thinking community.

Everyone knows that Hampton Roads is a military community - and the city of Hampton sits right in the center of it. Given that, it is critical that we continue to foster meaningful relationships with the military in this area.

Langley Air Force Base is a respected partner in our community. This appreciation goes beyond the hundreds of civilian jobs that are provided, or the economic opportunities that are generated for our businesses, or the civic engagement endeavors in which the Base participates. The citizens of Hampton are aware of the key role that the Base plays in our national security. We are honored to have such a strong partner as Langley Air Force Base in our community.

Another key partner in our military community is the Veteran's Administration Hospital, particularly with the men and women who are returning from the war in Iraq.

In Hampton, we have now established a Military Affairs Committee to strengthen, even further, our relationships with the military community. One of their first efforts has been to create a memorial dedicated to those who valiantly served in the Korean War in the 1950s. That memorial was unveiled this year, and rests proudly in our memorial park next to City Hall.

Another tribute to the military and to our historic heritage is the Fort Wool project. Through the help of private donors, the city is proposing to introduce a 32-by-40-foot American flag on the Fort Wool site. For visitors coming through our waters this will capture the majestic glory of a fort that has been a proud part of our history. To our men and women in the armed forces who are returning from overseas duty it will serve as a beacon-a way to say "Welcome home -- and thank you!" The flag also will serve as a wish of peace and safe travel to those departing this area.

Let me provide you with some information now about Fort Monroe - and it's future.

We are obviously disappointed over the decision of the BRAC Commission to keep Fort Monroe on the base closure list.

We made compelling arguments that the BRAC criteria - particularly cost considerations and the military value of Fort - warranted its remaining as an active part of the DoD operations.

The BRAC Commission did not agree with our findings.

Now our focus is to move quickly to develop a conceptual land use plan for Fort Monroe. Early in the BRAC process your city worked with the General Assembly and the Governor to establish a Federal Area Development Authority for Hampton. In retrospect, this showed significant foresight in that it put us well ahead in the planning process for the re-use of Fort Monroe.

Obviously, the Fort Monroe site has great potential for our city. This conceptual plan will give the Army what it needs to undertake the environmental cleanup of the Fort, which is essential.

The conceptual plan will ultimately identify very broad land use options for various sections of the Fort. Citizens, through October, have had the opportunity to participate in this phase by going to the City's web site and telling us what activities or options you feel should be considered for Fort Monroe. Citizens have also had the opportunity to make their feelings known by calling our 311 Call Center.

Following the development of a conceptual plan, we will begin a detailed master planning process with drawings and maps, and plenty of public participation.

Then, a new Fort Monroe Planning Committee that is being formed to represent key organizational stakeholders will evaluate this input and make a recommendation on the Reuse Plan. Our Federal Area Development Authority, the City's Planning Commission, City Council and the Governor will review the plan, with the ultimate goal being approved by all parties. Our target for that is the end of 2006.

Obviously, there are a number of administrative and legal challenges regarding reversion rights, property deeds, and other issues that will need to be resolved as well. Fort Monroe has exciting possibilities for us - but the process will not happen overnight. City staff will keep citizens apprised as this process moves forward.

I'd like to take this moment, now, to discuss something that I know is on many people's minds - and that, of course, is real estate taxes. As each of us is aware, the value of real estate in Hampton - as with the rest of the region - has risen significantly in recent years. For property owners, that translates into more equity in their home, but also a higher tax bill. I can certainly empathize with that.

I and my fellow Council members have had citizens approach us from both sides of the issue. Just recently I had a friend who said, "My assessment was one of those that actually went down this year! This is my investment! What are you doing to my city that no one wants to live here?!"

And others whose property values went up, have said, "I know you've given the elderly and disabled a significant real estate tax relief. And I know you've cut seven cents off the tax rate over the past two years. It's the lowest tax rate since 1993. But look at Virginia Beach! They cut 17 cents. Why can't we match that?"

The answer, of course, is that we would love to be able to do that. But the average cost for a single family home in Virginia Beach, is $245,000. In Hampton, it's $164,000 -about two-thirds as much. That's a big difference in tax revenues.

On top of that, as I said earlier we are in a catch-up mode, from having been behind the financial curve for so long. That means that we are now taking bold steps to do things that need to be done.

Working with the School Board, we've agreed to build several new schools throughout the city.

We've helped raise teachers' salaries significantly to assure that our classrooms are filled with the most talented teachers possible.

Many other positive things are going on throughout the city as well.

The City of Hampton's Youth Civic Engagement Program has won the prestigious Innovations in American Government Award. In government circles, this is like winning an Oscar. It includes a $100,000 grant so that we can share the great things that we are doing with our youth with other communities.

Hampton, along with Newport News, was also recently named among the 100 Best Communities For Young People, by America's Promise.

We should all be proud of our young people in Hampton. A great many of them work hard to be engaged, to make our community an even better place. As one example, when the City determined that it would convert the former Sentara fitness center into a youth center, a number of young people stepped forward to provide very detailed ideas and input about what a youth center should look like. That's true civic engagement from our leaders of tomorrow, and I applaud that.

Your City Council has established a finance committee, comprised of citizens who are astute at financial analysis. Their purpose is to enhance Council's effectiveness in its role of setting financial policies, levying taxes, and overseeing government operations.

In Hampton, our crime rate is consistently low when compared to regional averages. Since last year, violent crimes in Hampton have declined by over 12 percent - and property crimes by 3.6 percent.

Our fire and emergency response teams are consistently at the site of an emergency within 5 minutes of the alarm - and more often, within 4 minutes. That accounts for their consistent Citizen Satisfaction rating of 99 to 100 percent.

Our bulk trash removal is one of the best in the region, where citizens can leave heavy items out for pick up - not just at specified times, but on any day of the year when their normal trash is being picked up.

Leisure is important to all of us, and that's why our community centers provide a variety of services to citizens.

Buckroe Beach has been replenished, effectively doubling its width. It's a beautiful place to visit.

The 311 Call Center has for six years now provided one-stop shopping for citizens wishing to reach city departments. One fifth of its customers call after hours, or on weekends, or holidays - and these citizens get the results they need.

In closing, I'd like to talk about Open Government, something about which this City Council feels very strongly. Let me give you two examples:

Those of you who watch TV 47 are aware that you can now view City Council afternoon work sessions on that station. That is a significant expansion of open government because it is often during those work sessions that much of the work of City Council is accomplished. Citizens now have the opportunity to view these meetings first hand or to watch the rebroadcasts.

In addition, citizens will have the opportunity to view City Council minutes that same week by going to the City Council web site. At the click of a button, they will also be able to watch a video on their computer screen of the discussion that occurred during the Council meeting, for any given agenda item. That's a great blend of technology and open government in action.

As I said at the beginning of this address, these are exciting times for the City of Hampton.

These are also times when we have a number of challenges - as do all cities. Moving forward, I know that we, as a community, can maximize our opportunities and take us to the next step - and beyond.

Our neighborhoods are strong.

Our citizens are committed.

And your City Council and City Staff are dedicated to working with you, to assure we succeed.

Let's move forward together - and let's enjoy the ride!

Thank you.