A short history of a few projects illustrates that our council consistently fails to update the final costs after project completion. Council publishes the original cost estimate and then ignores all cost overruns and interest payments. As a result, the final project cost is understated – by many millions..

Start with the beautification of Atlantic Avenue: Original cost estimate was $28.5 million. Including cost overruns and interest the final is $50 million.

The seawall and boardwalk project was estimated at $90 million and the city share would be 30% and the federal government would pay the rest. The final was $145 million and the federal government insisted that Virginia Beach pay 35% not just 30%. City cost was $65 million – more then twice the original estimate.

The 31^st garage jumped from the estimate of $34 million to $54 million after overruns and interest is added in.

The theater at Town Center, you may remember the levity when council estimated the cost at $20 million. Final – $73 million.

Finally, the convention center estimate was $193 million. Including interest, the final is $307 million.

Now the Cavalier – a here we go again moment. Supposedly, Cavalier could be renovated for $40 million. What happens if that cost increases significantly? Will the developer come back to our city council for more millions?

We can “hear” the developer now: “Hey Mr. Mayor, this restoration will cost much, much more than we originally estimated. If you want this magnificent old historic building preserved, you must help pay for it. Say $20 million. Without your help (millions of dollars) we won’t be able to restore it. How about it? ”

This short review of Virginia Beach City Council’s history of favoring developers over Virginia Beach taxpayers is there for all to see. The process seems to be: Build it, council will help with many millions and give the bill to the taxpayers.

Unfortunately, this same history shows that most taxpayers of Virginia Beach are sound asleep, not paying attention and will not object to getting socked with higher taxes and fees again.

Council knows the same history and knows that they can do whatever they want and stick the taxpayers with the bill – again.

Here we go again!

Imagine that Jon might say, “We shouldn’t raise taxes and fees again this year, like council did last year.”

Len, in some surprise, might say, “Why not?”

Jon might reply, “Well, citizens might get angry at having taxes and fees raised again. That would raise their cost of living in Virginia Beach – again. ”

Len might say, “You gotta be kidding. The idiots, – “

Jon, irritated, interrupts and says, “You shouldn’t call them idiots or any other insulting terms.”

Len, somewhat mockingly, says, “ Um, ha, ha, I mean citizens of course. So anyway, the citizens are not paying attention, for whatever reason and really don’t know much about what’s going on. Some may grumble a little and we can pretend to pay attention to what they say, and then of course , ignore ‘em and then to what ever we want.”

Len continues, “Well, the, um, citizens are lucky this year. We are not going to raise the real estate tax rate this year, just a few fees.”

Jon, “A few fees! Don‘t forget the cigarette tax increase, the boat tax, waste water management fee increases and about ten various planning fees. And $100 million in bonds for sewer, storm water and general obligation. Costs are going up. At the same time food, energy, everything is going up.”

Len, “Yeah, but people aren’t paying attention so they will never know about the fees. And the idi.. , the citizens, don‘t follow all those additional $100 million in bonds.”

Jon, “I know. And the debt service will increase over the next few years from the current $135 million per year to $155 million per year. Citizens cost of living in Virginia Beach will continue to go up. And that’s really important to people. It’s our responsibility to tell everyone these important costs of government that continuously push up the cost of living in Virginia Beach.”

Len, “Jon, knock it off. Get real. As long as the idiots, the citizens, or whatever you want to call them, as long as they are not paying attention and just pay the real estate taxes and fees, we’ll do whatever we want.”

Len continues, “After all our guys have all the money for campaigns and elections.”

To get back to reality for a moment: Remember that “our guys” means the power centers of our city. In Virginia Beach, power centers are organized around developers, real estate companies and tourism related businesses. Power Centers are oriented to and driven to accomplish specific self-serving goals, to control the decision-making process and guide the process to the desired goal.

The power comes from the contributions to candidates for public office. They give money in dollars and so-called “in kind” contributions as well as the active participation in the campaign.

Citizens should recall recent history. The power centers already have a hotel at 31^st St. with a parking garage, a convention center, a new boardwalk, and a redeveloped Atlantic avenue. Now they want an arena, a headquarters hotel for the convention center, an entertainment venue at the Dome site and the redevelopment of 19^th Street ( to name a few). How much will our taxes and fees have to be increased to pay, up-front, all the Tourism Zone Gap financing money that will be required?

And let’s not forget light rail. The power centers will build the stations and all the apartments, condos and retail around the light rail stations. How much additional taxes and fees will have to be raised to subsidize light rail?

Seems like there is no end to the projects our council will spend our tax dollars on.

We’ll give Len the last word – for now.

Len, “Look, Jon. We, city council, have two very important factors working in our favor. One, most Virginia Beach citizens, idiots I call them, are basically sound asleep. Paying no attention to anything we do. Number two, we, together with our supporters have all the money to get re-elected. So we can do whatever we want. Look what we have done with light rail. First the Tide, then we‘ll get the section to Rosemont Rd and then tell everyone that we must finish the line to the oceanfront.

“Let the idiots stay asleep as long as they keep on paying the taxes and fees we tell them to pay. Then we can continue to do whatever we want.”

During the coming discussions on the budget for the next fiscal year, council should consider the cost of new projects in terms of the increase in our cost of continuing to live in Virginia Beach.

Citizens do not want another real estate tax rate increase. Last year, our council increased our tax rate from $.87 to $.95 and added fees to our water bill. The additional fees, trash pickup fee and the storm water fee, equate to about an additional $.05 of the real estate tax rate. Our council, rather than raise our tax rate to $1.00, successfully hid that extra $.05 among the fees on our water bill.

Our city council wants an arena, a headquarters hotel for the convention center, an entertainment venue at the Dome site and the redevelopment of 19^th Street ( to name a few). They already have a hotel at 31^st St. with a parking garage, a convention center, a new boardwalk with expanded beach, and a redeveloped Atlantic avenue. Just these projects would total about $1.2 billion in debt for citizens to pay throughout the next 20 to 30 years.

Where will council find the money to support the many new projects they and the developers want? Fellow citizens, too much of the money for these major projects will come from us. That’s because Council has a new tool for spending our tax dollars on any projects in the Tourist Zone our council chooses. That is the new Tourism Zone Gap Financing bill.

Tourism Zone Gap Financing, the most disgusting, heavy-handed slap in the face to taxpayers ever maneuvered through our state government by local lobbyists, empowers our council to pay up to 20% of the cost of the project. The private developer pays back that amount over a very long period of time. The amount paid per year depends on the net profit as determined by the developer. Who knows how long to pay back our investment.

Remember that last year, councilmen John Moss and Bill DeSteph developed a strategy that would have balanced the budget without a tax increase. Our city council chose instead to increase taxes and fees on the citizens of Virginia Beach. There was, in fact, no need for additional taxes. Most council members wanted an increase in taxes.

Our council will discuss the budget for the next fiscal year in the coming months and vote on the budget in early May. The next two months will show that either our Virginia Beach City Council has put citizens financial health as the top priority or council will push for new projects and our taxes and fees will be increased again.

Council should keep in mind that all of our costs of living continue to increase: The cost to heat our homes, gas for the car and food on our tables are going up. You, our city council should not add to our increasing burden. Do not increase our real estate tax rate and fees again to make up for the decrease in tax revenue from declining military spending. Do not increase our real estate tax rate and fees again to make up for the taxpayers dollars spent on that rip-off called “Tourism Zone Gap financing.” Do not increase our real estate tax rate and fees again to pay for the ever-increasing debt service.

Our lack of population growth in Virginia Beach means there will be the same number of taxpayers paying your higher taxes and fees and that in turn means the cost of living, per taxpayer in Virginia Beach, continues to go ever higher.

The over-taxed citizens of Virginia Beach should finally decide that council has gone too far and will revolt against higher taxes and more fees. Citizens must push back now or pay higher taxes and fees and watch our cost of living in Virginia Beach continue to go higher and higher.

From Google: Crony capitalism: an economy in which success in business depends on close relationships between business people and government officials; self-serving friendships and ties between businessmen and the government influence the economy and society to the extent that it corrupts public-serving economic and political ideals.

How does crony capitalism work? Remember that old advise: Follow the money. Let’s check the website vpap.org. Our mayor Sessoms received in year 2012, $449,000 for his campaign. And for his first campaign for mayor, $620,000 for a total of $1,069,000 for his two elections for mayor of Virginia Beach. Wilson received $149,000 for the 2012 campaign for an at-large council seat, Davis received $133,000, Jones received $125,000 and Uhrin received $43,000 Just for the 2012 city council election, the incumbents received $899,000.

So OK, that’s nearly $1 million floating around Virginia Beach just to elect city council members in 2012. So what?

Let’s find out “so what” by reviewing the expenditures for major projects already completed during the last ten to fifteen years. Then we can identify major projects planned for the next five to ten years. Finally, we can discuss projects on the drawing board. Then ask: Who has benefited and who will benefit in the years to come? And oh yes, who will be paying for these projects for generations to come?

Completed major projects include, many years ago, the beautification of Atlantic Ave at a cost of about $50.00 million. Then, a new seawall and boardwalk was built and lots more sand on the beach that cost Virginia Beach taxpayers about $65.00 million plus federal dollars for a total of $145 million (Our tax money too, of course).

Other completed projects include the parking garage at 31^st St. that cost about $52.00 million. That was rather quickly followed by infrastructure changes to 31^st St. at another $50.00 million. And of course the convention center on 19^th St – cost $307 million.

So far, council has already spent and put taxpayers into debt for about $524,000,000 just for these projects.

During the next few years, our council wants an arena on 19^th St. probably for $300 to $400 million. In addition, council must necessarily build a hotel and a parking garage to accommodate the arena and the convention center. Probably at least another $150.00 million of taxpayers money.

And of course there is the entertainment venue planned for the old Dome Site. Will that be more millions ($100 million) paid by the taxpayers? Definitely yes, if council uses the new Tourism Zone Financing Gap law. You remember – under that new law, we can kick in up to 20% of the total cost of each project. Taxpayers expenses will increase significantly.

Finally, what’s on the drawing boards? A little further into the future would mean a widening and beautification of 19^th St into a main corridor to accommodate the convention center, an arena and a new hotel. In addition, this main corridor would be redeveloped to include condos and apartments with parking garages. This would require condemnation of land, buying the land and then building the roadway. Another $100.00 million of taxpayers’ money at least.

In fact, the Beacon of Jan 24 reports that a committee has been tasked to “transform 19^th Street into a decorous, tree-lined thoroughfare” with “extensive landscaping and a median designated for future use by a light-rail extension.” Sounds expensive.

Eventually, council would beautify Pacific Ave just like Atlantic Ave. When discussed a number of years ago, a senior director estimated that a Pacific Avenue redo would cost $100.00 million.

These planned projects would total about $700.00 million. The total of completed and planned projects would be about $1.2 billion of city money.

Also on the drawing boards, are light rail and the development of the Strategic Growth Areas. The Strategic Growth Areas include all the major intersections along the old Norfolk/Southern RR line: Newtown Road, Witchduck, Independence and Rosemont. Road. Taxpayers will have to fund stations for each Strategic Growth Area and help fund parking facilities for the condos and apartments that will be built near the stations.

Getting the picture? Nearly a $1 million to help elect city council members. Council has already dumped more than $500 million in debt on us and plan to lay on an addition $700 million in the next few years ($1.2 billion.) Yet to come will be light rail and all the expenditures associated with development and the ongoing (forever) maintenance and operational costs. The total will eventually be much greater than $1.2 billion.

How much more? Hard to tell and of course our city council isn’t telling. Especially if council uses that truly disgusting Tourism Zone Gap financing law and throws in 20% of the cost of many projects.

Who benefits from all the major projects and redevelopment? The hotels, restaurants and retail at the oceanfront have benefited from the beautification of Atlantic Ave, the new boardwalk and beach, convention center, and would benefit from an arena, an entertainment venue at the Dome Site and the redevelopment of the 19^th Street corridor. The builders that construct light rail stations and build parking garages that are paid for by our taxes will benefit. And those that build and sell condos, build and rent apartments.

Who pays. We do. You and your next generation will have to pay more than $1.2 billion in debt. Our current annual city debt service is $130 million and will increase to $155 million by 2018. Our real estate tax rate and fees will be increased. Our real estate tax rate was increased to $.95 and will no doubt be increased more to help pay for these major projects. Council has transferred solid waste collection and storm water fees to our water bill. On a monthly basis, the fees together equal about $34.50. That $34.50 equates to $.07 in our real estate tax rate. Our council, instead of raising our tax rate to $1.02 ($.95 + $.07), spread the pain by slipping in a few fees.

But it all comes out of the same pocket.

So what do you think? Is crony capitalism alive and thriving in Virginia Beach?　

Let’s review the last ten to fifteen years. Council beautified Atlantic Ave a long time ago in the hope that it would encourage new businesses. Cost: $50.00 million. (Aprox $16 million per mile.) Atlantic Ave remains about the same. Then, a new seawall and lots more sand that cost Virginia Beach taxpayers about $65.00 million plus federal dollars for a total of $145 million (Our tax money too, of course).

In more recent times, council built a parking garage at 31^st St. that cost about $50.00 million. That was rather quickly followed by infrastructure changes to 31^st St. at another $50.00 million. And of course the convention center on 19^th St – cost $307 million.

So far, council has already spent or put citizens into debt for about $522,000,000. (A half billion dollars.)

And more to come.

In the near future, council wants an arena for $320 million (including the $80.00 million to move the team). In addition, council must necessarily, repeat necessarily, build a hotel and a parking garage to accommodate the arena . Probably at least another $150.00 million for both.

A little further into the future would mean a widening and beautification of 19^th St into a main corridor to accommodate the arena and new hotel. This would require condemnation of land, buying the land and then building the roadway. Another $100.00 million at least. Eventually, council would beautify Pacific Ave just like Atl. When discussed a number of years ago, a senior director estimated that Pacific Avenue would cost $100.00 million.

These planned projects would total about $700.00 million. The total of completed and planned projects would be about $1.2 billion of city money.

And the numbers above do not include light rail. Nor do these numbers include other projects that council has not mentioned in public.

Council, your behavior is not only very worrying regarding future taxes and fees, but also your failure to keep citizens well informed. You tried to push through the hotel; kept the study of the arena secret from citizens for months; and you have successfully passed the Tourism Zone Gap Financing rip off.

Council, tell the citizens of Virginia Beach the full story: What are your specific plans for our city for the next ten years at least? What will be the cost to citizens? What should citizens expect in terms of increased real estate taxes and other fees?

How will these projects benefit the citizens and not just the hotel owners?

During the years 1990 to 1999, our city council voted to increase our real estate tax rate from $.87 to $1.22. Only after strong opposition by citizens, council allowed the rate to decrease due to declining assessments. However, this year (2012), council has successfully increased our tax rate again from $.87 to $.95. Are we heading to $1.22 – again?

Years ago, citizens voted for a park at 31^st St and against a hotel there. The referendum was not a “binding” referendum so our city council dismissed citizens’ declared wishes. We now have a hotel at 31^st St. – a direct “in your face” council decision.

Some years ago, citizens wanted the Homestead Exemption, but did not get it. Our city council failed to press our state government for the exemption. Thanks to our city council inaction there was no exemption.

Citizens voted against the Hampton Roads Transportation Authority, but were overridden by council. Once again, citizens spoke loud and clear and council ignored the people of Virginia Beach. (The HR Transportation Authority was later ruled unconstitutional.)

Similar manipulations have resulted in the convention center. Years before the convention center was built, council appointed the Pavilion Steering Committee to analyze all options and make recommendations to council. After months of study and deliberation, the council recommended an expansion of the Pavilion. (Note: the steering committee did not recommend a new convention center.) Obviously, our city council decided to build a new convention center anyway,

Citizens voted against light rail, but you know where that is going. And, you may remember that one of our state delegates said a few years ago that, “They will get it whether they want it or not.”

Nor long ago, council attempted to saddle the citizens of Virginia Beach with a $60 million (plus interest) bill to help fund the convention center headquarters hotel. After some pushback, council dropped the effort. Subsequently, council contrived to pass the Tourism Zone Gap financing law that will permit council to fund 20% of the cost of the hotel at a later date.

Most recently we find that our (transparent?) city council had secretly been funding a consultant to study an arena.

For many of these issues, the people of Virginia Beach voted and made their requests known to all. Our city council has clearly demonstrated that it has firm control, can ignore citizens and do it what it wants.

Council still wants more of our money for their projects as demonstrated by the passage of that taxpayer-insulting Tourism Zone Gap Financing rip-off. In the future, an uninhibited city council will develop light rail, the Strategic Growth Areas, the convention headquarters hotel and other projects in the so-called Tourism Zone.

None of this spending should come as a surprise because city staff has been warning council for years regarding their excessive spending. The five- year forecast of November 17, 2009 states in “Final Thoughts” on the last page “Together, we have a long term structural imbalance – tough decisions lie ahead in terms of cutting programs and/or raising revenues.” The Virginia Beach city staff described the economic situation in Virginia Beach as in a state of “Imbalance.”

These “imbalances” have been an integral part of Virginia Beach for decades. Not something staff has discover just recently. We are out of whack, have been for years and

see no evidence that this council will get us back in balance any time soon.

We need a new Virginia Beach City Council with the character and integrity to put citizens first, and to make the tough decisions and correct the long-standing fiscal imbalance. For a family-oriented Virginia Beach City Council, vote for Kenny Golden, David McCormick and Chuck Smith.

As history shows, Will Sessoms voted to ignore citizens expressed wishes and developed projects rejected by citizens. And he has consistently voted to increase our real estate taxes.

Starting way back during his first time on council as a member and as vice-mayor, Council member Sessoms vote to increase our real estate tax rate from $.87 to $1.22 over the years 1990 to 1999. This year, he has successfully increased our tax rate again from $.87 to $.95. Are we heading to $1.22 – again?

Years ago, our city council, including Will Sessoms, refused to put a referendum on the ballot to give citizens a voice on building a hotel at 31^st St. After citizens collected more than enough signatures to force council to include the question on the ballot and citizens voted NO for a hotel and YES for a park at that location. Sessoms ignored the citizens again.

Before building the hotel at 31^st St. council asked the Economic Development Authority (EDA) to vote and make a recommendation. The EDA held a regular meeting and the vote was a tie vote and therefore no recommendation was forwarded to council. Our city council, including Sessoms, then appointed a new person to the EDA and requested another vote. The new person voted yes and the motion for the hotel was approved.

Similar manipulations have resulted in the convention center. Years before the convention center was built, council appointed the Pavilion Steering Committee to analyze all options and make recommendations to council. After months of study and deliberation, the council recommended an expansion of the Pavilion. (Note: the steering committee did not recommend a new convention center.)

During a city council meeting a week or so later, council discussed their options. Vice Mayor Sessoms stated, “I think we should build a new one. I think we should get a consultant in here and see what he thinks.” Obviously, a convention center was built and the citizens continue to pay $15.2 million per year to pay for it. (Total will be $307 million, not $202 million as often stated by council.)

More recently, Mayor Sessoms tried to push through the headquarters hotel for the convention center. He dropped the effort due to citizens backlash. Subsequently, he succeeded in passing the Tourism Zone Gap financing bill that will help fund tourism projects. And only a few months ago, our mayor tried to push through an arena without public input.

A record of ignoring citizen wishes and priorities and building projects that he wants – that is Will Sessoms record.

If Mayor Sessoms is re-elected, citizens should expect the very expensive light rail, a headquarters hotel for the convention center, more projects for tourism using the Zone Gap financing rip-off and real estate tax increases and increases in fees.

That is the REAL Will Sessoms record.

The ad stated that a yes vote was a vote to continue the study of light rail. Those who developed the ad knew from the beginning that the ad was a lie. The ad was intended, was designed to con citizens into voting yes while thinking that a yes vote was for permission to continue with the study of light rail.

In fact, a yes vote will give city council the OK to “… adopt an ordinance approving the use of all reasonable efforts to support the financing and development of the Tide….” Just what the heck does all that mean? It means that our light-rail-supporting city council can start spending money and making plans for the development of their favorite development tool – light rail.

A yes vote means that council can do whatever “reasonable efforts” they want.

As Councilman Moss stated, “It’s designed to influence and advocate.”

The ad was so heavy handed, so obviously a lie it should never have seen the light of day. Mayor Sessoms should have been the first to tell staff to take that ad off the air.

Thank you, Councilman John Moss.

Your participation in all of the closed sessions means that you were well aware of the proposals to hire a consultant to study the feasibility of building an arena in Virginia Beach. And of course, you knew about the funding requirements as soon as it was originally discussed during those closed meetings.

Recently, the Chairman of the Economic Development Authority stated that the money spent for the consultant was in fact money that the Authority had earned through various activities. That money is citizens’ money and not his money to spend as he pleases. His statement is similar to the nonsense several years ago when some council members claimed that money spent on projects was not our real estate tax dollars.

All money spent by our Council and committees is citizens money.

Several questions for Rosemary Wilson:

1. What did you know and when did you know it?

2. When and who did you brief?

3. Why did you fail to brief all members of the city Council after you learned about the arena?

Citizens are concerned and have a right to know. Thank you for your response.

Who is fooling us? The Control Group is behind these and other schemes.

These are two examples of the Control Group in action – a coalition of some members of city council, senior city staff and those developers who would profit from an arena working in secret. The Control Group is our Virginia Beach City Council supported by the power centers of our city. In Virginia Beach, power centers are organized around developers, real estate companies and tourism related businesses. Power Centers are oriented to and driven to accomplish specific self-serving goals, to control the decision-making process and guide the process to the desired goal.

A review of the Control Group’s accomplishments of the last ten-twelve years shows the extent of control they have over our government.

Years ago, citizens voted for a park at 31^st St and against a hotel there. The referendum was not a “binding” referendum so our city council dismissed citizens’ declared wishes. We now have a hotel there because the Control Group wanted it.

Some years ago, citizens wanted the Homestead Exemption, but did not get it. Our Chamber of Commerce objected and our city council fell mute and did not press for the exemption. Thanks to the Control Group there was no exemption.

Citizens voted against the Hampton Roads Transportation Authority, but were overridden by the Control Group. Once again, citizens spoke loud and clear and council ignored the people of Virginia Beach. (The HR Transportation Authority was later ruled unconstitutional.)

Citizens have voted against light rail, but you know where that is going. And, you may remember that one of our state delegates said a few years ago that, “They will get it whether they want it or not.”

Nor long ago, the Control Group attempted to saddle the citizens of Virginia Beach with a $60 million (plus interest) bill to help fund the convention center headquarters hotel. After some pushback, council dropped the effort. Subsequently, the Control Group contrived to pass the Tourism Zone Gap financing law that will permit council to fund 20% of the cost of the hotel at a later date.

Most recently we find that the Control Group has secretly been funding a consultant to study an arena. Our city council did not allow citizens to vote on those expenditures.

In the earlier issues, the people of Virginia Beach voted and made their requests known to all. The Control Group, including our city council, clearly has demonstrated that it has firm control and gets what it wants. Citizens do not. The Control Group wants more of our money for their projects as demonstrated by the passage of the Tourism Zone Gap Financing rip-off.

The Control Group is in charge of our Virginia Beach. In the future, an uninhibited Control Group will develop light rail, the Strategic Growth Areas, the convention hotel and other projects in the so-called Tourism Zone.

Getting the picture? Fool us once, shame on you. Fool us many, many times, shame on us for our continuing head-in-the-sand approach to our own government. As long as so many citizens of Virginia Beach remain in the Uninformed category, we will be fooled, conned, duped, suckered (take your pick) many more times.

What are you, the citizens of Virginia Beach, going to do about it?