EXTRA! Town Council Mulling Another Real Estate Deal


CAPE CHARLES WAVE

March 18, 2014

As required by law, the Cape Charles Town Clerk today posted notice of a Thursday, March 20, closed-door meeting of Town Council to discuss, in her words, “another real property acquisition opportunity.” The notice, shown above, fails to state what property is being considered.

According to Virginia law,  “A general reference to . . . the subject matter of the closed meeting shall not be sufficient to satisfy the requirements for holding a closed meeting.” But in keeping with past practice, the clerk nevertheless has failed to identify what property is being considered.

After the Wave began covering Town Hall in 2012, the clerk did begin providing slightly more information about closed sessions. Previously, for example, when Town Council met to secretly negotiate a no-bid contract to divest Central Park property for $10, the meeting was described by the clerk only as consideration of an “Unsolicited Confidential Proposal,” with no hint that real estate was involved.

Virginia law also makes strict limitations on closed sessions even when a real estate deal is under consideration: The public may only be excluded in cases “where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the public body.” [Read more…]

Town to Spend $100,000 on Welcome Sign Property

Town currently leases these seven empty lots from Bay Creek developer Richard Foster to display welcome sign at left (Wave photo)

Town currently leases these seven empty lots from Bay Creek developer Richard Foster to display “Welcome to Historic Cape Charles” sign at far left. (Wave photo)

By GEORGE SOUTHERN
Cape Charles Wave

March 17, 2014

Cape Charles Town Council agreed in a closed-door meeting March 10 to spend $100,000 to buy seven empty lots on the corner of Randolph Avenue and Fig Street owned by developer Richard “Dickie” Foster’s Bay Creek LLC. According to Town Manager Heather Arcos, “the general consensus was for the Town to move forward with the acquisition.”

The town has no immediate plans for the property, which displays a “Welcome to Historic Cape Charles” sign. The town’s Comprehensive Plan and VDOT’s 2020 Transportation Plan call for a traffic circle at the intersection of Randolph and Fig, according to Arcos.

No formal vote is allowed during closed meetings, so Town Council will officially vote to buy the property during its regular meeting Thursday, March 20. Although the decision has already been made, 3-minute public comments may be expressed at the meeting (6 p.m. Thursday at St. Charles Parish Fellowship Hall, 550 Tazewell Avenue). CLICK to read the memo and draft resolution.

The town has leased the seven lots from Foster since 2010 with first right of refusal should the property be offered for sale. A similar number of commercial lots on the other side of Randolph Avenue (not owned by Foster) have been for sale for more than 10 years.

The lots the town plans to buy are valued on County tax rolls at $50,000 each, for a total of $350,000. However, since the real estate bubble burst in 2008, vacant lots in the Town of Cape Charles typically have sold for only a fraction of their assessed value. [Read more…]

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Town Council Plans 23% Increase in Lodging Tax

By DORIE SOUTHERN
Cape Charles Wave

March 17, 2014

Cape Charles Town Council plans to raise the town’s lodging tax by 23 percent — only four years after enacting a 50 percent increase. That will bring the total lodging tax increase over four years to 85 percent (from 2 percent to 3.7 percent). If as expected the Council votes to go ahead with the tax increase at its Thursday, March 20, meeting, the next step will be to hold a public hearing in April.

In addition to the town tax, lodgers pay 5.3 percent state tax and 2 percent county tax. A state tax increase (from 5 percent to 5.3 percent) took effect in 2013. Combining town, county, and state rates, a lodger currently pays 10.3 percent tax. During discussion at a February budget retreat, Town Council members agreed it would be a good idea to “round off” the total tax amount and so have decided on a .7 percent increase – for a total lodging tax of 11 percent.

The idea to raise the lodging tax comes at a time of record receipts due to the town’s increased popularity for vacation rentals. In 2010 the town began contributing one-third of lodging tax receipts to the Eastern Shore of Virginia Tourism Commission.  The contribution to the Tourism Commission grew from under $10,000 in FY 2011 to over $16,000 in FY 2013. Now the Town Council wants to “cap” contributions to the Tourism Commission rather than continue giving a full one-third. It then wants to use the increased funds available to support tourism-related endeavors such as the website “Cape Charles By the Bay.”

Northampton County was authorized by the Town to collect the transient occupancy tax under the Annexation Agreement of 1991. The agreement was that a 2 percent tax on town lodging was to be remitted to the county on a monthly basis. At the end of each year, the county was to return the full amount plus interest to the town for 10 years. After 10 years, the county would keep the 2 percent tax for its own purposes.

At some point both the county and the town began charging lodging tax, with increases over the years until the total town/county tax rate equaled the present 5 percent. According to town code, the county is still supposed to collect the full tax monthly, and then remit the amount above 2 percent back to the town. But in 2010 the then-town treasurer stated that during her tenure she had never received a remittance from the county. Current town records also fail to indicate that any lodging tax is being returned by the county to the town. [Read more…]

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EXTRA! Hundreds Turn Out Against County Zoning Plan

Portion of March 11 crowd at Northampton High auditorium (Wave photo)

Portion of March 11 crowd at Northampton High auditorium (Wave photo)

By DORIE SOUTHERN
Cape Charles Wave

March 13, 2014

Over 200 persons turned out Tuesday night (March 11) at Northampton High auditorium for a combined Board of Supervisors/Planning Commission public hearing on a proposed new zoning code for Northampton County. Some 50 members of the audience rose to speak – mostly in opposition – and the meeting, which began at 7, carried on until 11 p.m.

One old-timer said the meeting reminded him of 1994, when in the same auditorium hundreds of locals gathered to protest a county-endorsed plan to build a maximum security federal prison off Bayview Road. Wednesday night’s gathering may have been the most outspoken opposition to county plans in 20 years, he said.

The heat began to rise well before public comment time began. County Economic Development Director Charles McSwain and his staff led off with an overview of the proposed zoning code, which he noted had been in the works for a very long time — three years. That led Planning Commission member Roberta Kellam to bristle, “If there is a problem with timing, perhaps you should look in the mirror.”

There was more than a hint of bad blood between the appointed Planning Commission, chaired by Martina Coker, and County staff – specifically McSwain, who only arrived a year ago but has since been the focal point for change in the county. Verbal exchanges included the following:

COKER — Why is the zoning ordinance not in accord with the Comprehensive Plan? Why has a revised Comp Plan not been released? Why has there been no public input to the Comp Plan before tonight?

McSWAIN — This was all done at the request of the Board of Supervisors.

COKER — Aquaculture could be greatly affected by the proposed changes. Have there been any studies done on what the effect might be?

McSWAIN — No specific studies have been done about that. [Read more…]

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BUDGET WORKSHOP:
Town Requests More Staff, Higher Pay, New Truck

By DORIE SOUTHERN
Cape Charles Wave

March 10, 2014

Cape Charles Town Manager Heather Arcos has asked Town Council to approve a 2 percent raise for all town staff. Speaking at a March 6 budget workshop, Arcos reminded Council members that town staff had received no COLA [Cost of Living Adjustment] in FY 2014 and only a 1 percent COLA in FY 2013 and FY 2012.

Arcos also recommended a 93-cent increase in the cost of trash pickup, which is included in residents’ water bills. She noted that under the town’s new contract with Davis Disposal, the current charge per household for trash is $13 per month and will rise in September to $13.50 per month. The increase will add another dollar to residents’ $108 monthly water bill. [Read more…]

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Town Planner Tasked with Drafting Chicken Ordinance

By DORIE SOUTHERN
Cape Charles Wave

March 10, 2014

“If written properly, a backyard chicken ordinance is feasible for Cape Charles. It boils down to whether or not the Town wants it,” Town Planner Rob Testerman told the Planning Commission March 4. Commissioners agreed that Testerman should draft a suggested ordinance to allow keeping backyard chickens under controlled conditions. At present, the town’s ban on agricultural activities in residential areas contains no exception for chickens.

“Backyard (urban) chickens are allowed in residential districts in various localities across the country, state, and Eastern Shore, from city settings such as Madison, WI; Chicago, IL; and Brooklyn, NY; to small rural towns like Onancock, Chincoteague, and Eastville,” Testerman reported. “They are allowed on lots as small as 3,000 square feet, or in some cases the minimum lot is much larger,” he said. Two towns that do not allow backyard chickens are Exmore and Wachapreague, he noted. [Read more…]

EXTRA: Eight Candidates File for Town Elections May 6

CAPE CHARLES WAVE

March 6, 2014

Cape Charles voters will have a choice for each of the four offices to be filled in the May 6 elections: there are two candidates for mayor and 6 candidates for the three positions open on Town Council. [Read more…]

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Town Requests $427,000 for South Port Yacht Center

 Letter from South Port Investors Chief Financial Officer Dan Brown states that Northampton County decided to “abort” its sponsorship of a grant application.  Based on this letter, the Wave reported that the County “would not sponsor” South Port’s application. County Board of Supervisors Chairman Larry LeMond and South Port partner Eyre Baldwin both publicly criticized the Wave for reporting Brown’s statement.

Letter from South Port Investors Chief Financial Officer Dan Brown states that Northampton County decided to “abort” its sponsorship of a grant application. Based on this letter, the Wave reported that the County “would not sponsor” South Port’s application. County Board of Supervisors Chairman Larry LeMond and South Port partner Eyre Baldwin both publicly criticized the Wave for its report.

By DORIE SOUTHERN
Cape Charles Wave

March 3, 2014

Cape Charles Town Council voted unanimously February 28 to oversee the spending of $427,000 on harbor improvements for South Port Investors’ Cape Charles Yacht Center. South Port has agreed to pay 25 percent of the cost if the Virginia Port Authority will fund the remainder. No local tax money would be used. [Read more…]

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