Council candidates air views on Bluffwalk payment

By Alicia Petska

Published: April 16, 2008

Editor’s note: Each Sunday and Thursday through May 1, The News & Advance will publish answers from City Council candidates to questions about issues ranging from taxes to schools to development.

Today’s question: In 2002, City Council agreed to back a $3.2 million loan for construction of the Bluffwalk Center, a hotel and restaurant considered a centerpiece of downtown revitalization. Last August, the city was then called upon to make a $257,944 payment toward that loan after hotel owners were unable to make the deadline. City officials are now considering how to recoup that money and making plans to prepare for possible future defaults.

Do you agree or disagree with City Council’s decision to support the Bluffwalk loan? If you agree, explain what you feel the advantage to the community has been and how you would handle future defaults. If you disagree, specify whether you would have offered any form of assistance and explain whether you do or do not support the city’s downtown revitalization efforts as a whole.

Mike Gillette, Ward I
“I support downtown revitalization. Every public dollar invested has generated several dollars in additional revenue and private investment; an excellent return. Prior to my time on Council, the decision was made to guarantee a Federal loan to the Bluff Walk Center with Federal Community Development Block Grant funds. We have a legal obligation to cover loan payments when the hotel defaults on its obligation, and I believe that we should hold $325,772.00 from this year’s CDBG allocation to cover the two payments due in FY2008-09. If the hotel makes these payments, we can reprogram the funds to other eligible projects.”

Jim Martin, Ward I
“I support, in general, the revitalization of the downtown area. Amazing progress has been made, and when you see the results in other cities like Charlottesville, that revitalization can have for the entire city, these efforts are a good investment for our economic development. However, I do not think that City Council should directly support businesses that compete with other private businesses. I was not on City Council at the time the Bluffwalk decisions were made and do not have the benefit of all the information used in their decisions. However Council needs to follow through on it’s legal
commitments.”

Tom Shahady, Ward I
“I completely agree with council decision to support Bluffwalk Center and would provide even greater support. Downtown revitalization must be a strong future priority. We must develop an economic engine downtown to sustain us. Current overdevelopment far outside the city center is putting a strain on Lynchburg’s ability to support roads, water, sewer and
neighborhoods. SUCH THINKING IS NOT SUSTAINABLE. To recoup the $257,944 here are a few ideas. Stop supporting unsustainable development. Don’t give Cornerstone the $200,000 in the current budget. Make Wards Road development pay $4,000,000 plus in sewage interceptor upgrades they have created. Visit http://www.tomshahady.com.”

Ceasor Johnson, Ward II
“As a sitting member of Council, I voted for this loan payment. This payment was a necessary investment to give this project a chance to get on its feet. Previous Council’s made the decision to support this project and now this Council and future Council’s are left to deal with that decision. We have seen where an investment by the city has had wonderful results with private investors coming onboard and developing the downtown corridor. We must continue to support downtown revitalization. This is the heart of the City and should be a vibrate part of Lynchburg and central Virginia.”

David Johnston, Ward II
“Doesn’t the fact that the city had to make a payment of over a quarter million dollars and no guarantee that it won’t have to again, illustrate that it was a BAD idea. There are many businesses downtown that help to revitalize that area.  Why didn’t they get preferencial treatment?  Of course, I am in favor of revitalization but not with that kind of money at risk or favoritism.  Once again, tax incentives (or tax freeze) would be the way to target any area for revitalization.

Jeff Helgeson, Ward III
“Council’s financing of the Bluffwalk Center is wrong. Tax dollars should never be used to finance a private
business venture. Council’s role in downtown revitalization should be centered on encouraging business development and issues dealing with infrastructure. I fought against this blatant misuse of the public trust from the very beginning. Taxes should be kept low, and those tax dollars collected should be used to meet the needs of the entire community, not just a few. I want to see Council get out of the hotel business, and get back to the business of protecting the interest of the taxpayer!”

Nat Marshall, Ward III
“I support downtown revitalization and Council’s decision to support the Bluffwalk. The hotel and restaurant are experiencing great success and now must be held accountable for their debts. Things are happening downtown because Council, often in split votes, invested in its infrastructure. There are new businesses along 5th Street; coffee shops and restaurants on Main; a growing arts community on Commerce; studio apartments by the Market. Downtown is thriving. Smart growth, however, means we also invest in the other areas like the Plaza and are mindful of density issues on Wards, Timberlake and Old Forest Roads.”

Turner Perrow, Ward IV
“I do not support using public dollars to guarantee private loans. The Bluffwalk project is of strategic importance as a downtown anchor and will continue to be a source for tourism, economic growth, and increasing tax revenues. I understand the complicated nature of historic tax credit projects, and I support smart growth projects that are investments towards generating future tax revenue. We must strive to keep taxes low and champion investments that will promote economic development. Join us for a Town Meeting on Sunday, April 20th, at Huntington Learning Center, in the Forest Hills Plaza from 2:00pm to 4:00pm! http://www.TurnerPerrow.com”

Marie Waller, Ward IV
“Yes, I support the city’s downtown revitalization efforts. Those efforts constitute an investment in our future, an investment that is thus far showing a very good return. Between 2003 and 2007 taxable property in the downtown area increased in assessed value from $24.5 million to $124.0 million, proving that downtown redevelopment efforts have been successful. As for the Bluffwalk project, I am not certain whether Council made the right decision in providing support, but once the commitment was made I believe the city would have been adversely affected if it had not followed through.”

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