$18,000 Library Computer ‘Fine’ Overturned on Appeal
Computers in the new Cape Charles Memorial Library are the most-used feature. (Wave photo)
By GEORGE SOUTHERN
Cape Charles Wave
August 15, 2013
A demand by a state authority that the Town of Cape Charles return an $18,000 grant has been overturned by the U.S. Department of Housing and Urban Development.
The controversy surrounded the purchase by the Town of 20 computers with federal block grant money. Following an anonymous complaint to a HUD fraud hotline claiming that the computers were not available to the public, the Virginia Department of Housing and Community Development conducted an investigation.
As a result of the investigation, the Virginia DHCD required the Town to return the grant money. Town Manager Heather Arcos appealed the decision April 25, declaring that “An erroneous statement made by an unidentified person does not change the facts. Obviously, the library is not open yet and the computer lab is not open in its normal fulltime schedule right now, so therefore would appear to be unoccupied.”
The DHCD then made another unscheduled site visit May 1, finding the computer lab still not accessible to the public. The DHCD reiterated its demand that the Town return the grant money. [Read more…]
REPORT: Why Water Bills Just Went Up Again
Letter from Town Manager to Bay Creek set a June 30, 2008, deadline to make a substantial financial contribution toward the Town’s proposed new sewer plant. Bay Creek refused to pay, but the Town built the plant anyway.
By DORIE SOUTHERN
Cape Charles Wave
August 8, 2013
Yesterday Cape Charles residents received their first water bill with the huge new sewer increase – formerly $35.45, now $60.85. The rate hike is to pay debt service on the Town’s new sewer plant.
This is not the first double-digit rate increase caused by the new plant: In March 2009 Town Council hiked the $25 minimum sewer charge to $34.
The minimum sewer charge might not be the highest in the state, but other high-rate localities are “more affluent than Cape Charles,” according to USDA Rural Development official Kent Ware. The Town’s new $108 minimum monthly combined water bill is a burden on low-income and fixed-income residents, and appears likely to continue to drive them out of town.
How did the Town come to charge such a high rate? The answer is that plans for a new sewer plant were based on the assumption that the developers of Bay Creek would contribute significantly to the cost. When that didn’t happen, the Town went ahead and built the plant anyway, leaving ratepayers to shoulder the cost.
Town Council also raised, but then lowered, water and sewer connection fees for new service that are intended to pay capital costs of new water and sewer infrastructure.
How did it all happen? The Wave has unearthed some pieces of the puzzle. It begins 25 years ago with the mega-construction company Brown & Root, who decided to develop a large tract of land to be called Accawmacke Plantation and incorporate it into the Town of Cape Charles. [Read more…]
Madonia Bankruptcy Auction August 19 at Aqua Restaurant
#2 Heron Pointe in Bay Creek backs to golf course with views of the Bay. Built as developer Dickie Foster’s personal home, Foster later sold it to the Madonia family, now bankrupt.
By GEORGE SOUTHERN
Cape Charles Wave
July 30, 2013
Two Bay Creek mansions along with additional houses and land belonging to the Madonia family will be sold at a bankruptcy auction August 19. The auction is at Aqua Restaurant, which coincidentally was also the object of a bankruptcy auction last December.
Properties on the block include #2 Heron Pointe in Bay Creek South, formerly owned by Bay Creek developer Dickie Foster, who sold it to Batista and Evelyn Madonia.
Once considered the prime property in Bay Creek, the long-vacant house now suffers from overgrown shrubbery. It was recently assessed by Northampton County at $2,786,300.
The Madonia family, owners of East Coast Brokers and Packers, filed for bankruptcy in March. According to the Packer, an industry newsletter, the Madonias owe over $20 million to state and federal governments and private firms.
Many of the Madonia holdings were to be offered at a sealed bid auction July 5, but the bankruptcy judge reportedly decided to withhold some of the most significant properties for a series of live auctions. [Read more…]
Would Route 13 Strip Development ‘Kill the Town’?
By DORIE SOUTHERN
Cape Charles Wave
July 25, 2013
Vocal members of the Cape Charles Business Association expressed concern to Town officials July 23 over their plan to promote development on Route 13.
Cape Charles Town Council has endorsed plans to extend a sewer pipe from the Town treatment plant out to commercial properties on Route 13 near Cheriton.
But local businessmen such as Andy Buchholz (Eastern Shore Signs) said it was clear all around the country that strip development kills a town.
Providing sewerage to the highway “totally promotes growth on [Route] 13,” Buchholz said. “The County should be helping drive business into town.”
The sewer expansion would be done by Northampton County’s Public Service Authority, chaired by Bob Panek, who also is assistant town manager for Cape Charles.
Panek told the Business Association that the County Board of Supervisors has already funded 25 percent of the sewer pipe expense in the latest budget. The remaining 75 percent would be paid through higher taxes on the commercial properties affected.
The current County property tax is 67 cents per hundred dollars’ value. Panek said the special tax would be an additional 52 cents, for a total of $1.19. All property owners within the special tax district would be required to pay the tax. [Read more…]
Town Recalculates Bay Creek Beach Club Charges
Beach Club under construction at Bay Creek will be 19,000 square feet and ultimately include an indoor pool and two outdoor pools. The Town of Cape Charles estimated water use by comparing the Beach Club to a “high school with showers.”
By GEORGE SOUTHERN
Cape Charles Wave
July 23, 2013
Connection charges for Town water and sewer lines to Bay Creek’s new Beach Club originally were calculated at $153,000 but were dropped to $44,000.
The Town of Cape Charles released the information in response to a Freedom of Information Act request by the Wave.
The issue arose after a prominent local contractor posted a comment in the Wave noting that “. . . (according to rumor) a reduced water/sewer hookup fee was given to the Bay Creek South company.”
In reaction, the Town issued a special edition of the Cape Charles Gazette with a “Message from the Mayor.”
Mayor Dora Sullivan wrote: “The Town did not reduce the connection charges for the new Beach Club at Bay Creek Resort & Club. The charge was calculated after obtaining a good understanding of the projected water and wastewater use at this new facility.”
Whether or not the Town reduced the connection charges may depend on what the definition of “calculation” is. [Read more…]
County Approves Commercial Sewage Area
By DORIE SOUTHERN
Cape Charles Wave
July 23, 2013
Northampton County Board of Supervisors yesterday finalized the Southern Node commercial service area recommended by the Public Service Authority (PSA).
The area runs along Route 13 about a half mile in each direction from the Cape Charles traffic light, as well as most of Route 13 Business through Cheriton.
The Board of Supervisors accepted a proposal to create a special tax district to fund 75 percent of infrastructure costs. The remaining 25 percent would be borne by all County property taxpayers. The 25 percent is already in the 2014 budget.
The commercial service area of the Southern Node would be the first phase in a two-phase project to provide wastewater service to Cheriton using the Cape Charles treatment plant approximately 2.25 miles away.
Asked if the proposed sewer lines for the commercial properties would be sufficient to tie all of Cheriton into the Cape Charles plant, PSA Chairman Bob Panek said they would not. Panek is also the principal consultant for the Cape Charles treatment plant. [Read more…]
Shore Group Fights Proposed Higher Bridge Toll
By GEORGE SOUTHERN
Cape Charles Wave
July 22, 2013
A group of Shore residents are using 21st-century social media to battle proposed toll increases on the Chesapeake Bay Bridge-Tunnel.
“CBBT Fair Toll, It’s About Time” is the name of a Facebook page the group started July 16 which as of last night had 122 “Friends.”
The Shore group is using every means available to martial opposition to a plan to increase bridge tolls by 10 percent every five years.
In addition to friending the Facebook page, toll opponents can sign an online petition started by Exmore businesswoman Dona Danziger.
Cape Charles restauranteur Gene Kelly signed the petition “to encourage more folks to live in Northampton County and to enhance businesses who are suffering here.”
The Fair Toll group is headed by Accomack County Supervisor Wanda Thornton, who argues that “neither traffic counts nor safety issues” justify raising tolls to build new tunnels. Thornton formerly served on the Bridge-Tunnel Commission.
Thornton notes that current Bridge-Tunnel tolls generate $45 million a year, while only $23 million is needed for operations and maintenance. The CBBT already has $210 million saved up, according to Thornton. [Read more…]
‘Finalization’ of Commercial Sewage Area on County Agenda
CAPE CHARLES WAVE
July 22, 2013
“Finalization” of the Northampton County area to be required to pump sewage to the Cape Charles treatment plant is on the Board of Supervisors agenda 5 p.m. today, July 22.
The County’s Public Service Authority has recommended a special taxing district for commercial property along Route 13. The proposal is for commercial owners to pay 75 percent of the project cost and for the remaining 25 pecent to be spread over all Northampton County taxpayers.
The cost of the sewage pumping system is estimated at between $1.5 and $2 million. The Public Service Authority has not provided any estimate of the cost of the service to property owners in the proposed special tax district.
In a related meeting, the Cape Charles Business Association will hear a presentation 7 p.m. Tuesday, July 23, by Assistant Town Manager Bob Panek, who also is chairman of the County PSA. Panek will discuss with business owners the possible effects of encouraging commercial development on Route 13 outside Town limits.
