Mayor Paul D. Fraim2016 State of the City Address

Friday, March 17, 2016

Good afternoon, and thank you for the warm welcome.

I want to thank Bryan Stevens and everyone at the Chamber of Commerce

for hosting this event.

Norfolk offers a lifestyle and amenities that are attracting new residents and

businesses who are transforming our city into a vibrant, resilient coastal

community.

None of this would be possible without the support of our citizens . . . the

business community . . . our colleges and universities . . . our military partners and

so many other people and organizations.

Norfolk is moving in a direction that enjoys broad support, and the city

council joins me in thanking you for all you are doing to make our city a better

place to live, work and play.

We’re pleased to have some distinguished military guests with us today:

French General Denis Mercier, NATO’s Supreme Allied Commander

Transformation, and German Admiral Manfred Nielson are here. On April

1st Admiral Nielson will begin serving as NATO’s Deputy Supreme Allied

Commander Transformation. Welcome to Norfolk Admiral.

Admiral Phil Davidson, Commander, US Fleet Forces Command, and

Rear Admiral Jack Scorby, Jr., Commander, Navy Region Mid-Atlantic.

Thank you all for being here.

Also, a good friend, retired Admiral John C. Harvey, Jr., Virginia’s

Secretary of Veterans and Defense Affairs is here. Admiral, good to have you with

us.

We are proud of Norfolk’s historic role in defending the nation, and of our

strong bond with the military. Memorials on the downtown waterfront attest to

2

this heritage, and remind us of the sacrifices made by active duty military members

and their families in defending our country.

We deeply appreciate their service abroad and here at home.

Next year marks the 100th anniversary of Naval Station Norfolk. Founded in

1917 on the grounds of the 1907 Jamestown Exposition, the base grew to become

the world’s largest naval station and a highly valued member of the Norfolk

family.

We look forward to an exciting centennial celebration.

And the Lieutenant Governor, our own Ralph Northam is in the house.

Thanks Ralph.

As well as our good friend Congressman Bobby Scott.

We are also honored to have with us ODU President John Broderick,

Virginia Wesleyan President Scott Miller and TCC President Edna Baehre-

Kolovani.

3

I am also glad to have two of my fellow mayors – Will Sessoms and Kenny

Wright. Good luck on your re-election efforts guys.

***

Last month’s cold snap triggered an outbreak of fires across the region, but

none approaching the magnitude of the February 13th four-alarm fire in

Willoughby that damaged 14 buildings and destroyed 8.

For over 12 hours, more than 60 Fire Rescue personnel battled wind-

whipped flames and bitterly cold temperatures before extinguishing the blaze.

Miraculously, no lives were lost.

Norfolk Fire Rescue personnel turned in a heroic performance fighting what

Chief Jeff Wise described as one of the worst fires he’s seen in his 37 years of

service.

In support, our regional allies came to our aid.

We are grateful for the assistance Navy Region Mid-Atlantic’s federal

firefighters provided at the fire . . . for Virginia Beach and Chesapeake, who sent

4

firefighters to backfill Norfolk stations . . . the cities of Hampton and Suffolk who

assisted in investigating the fire’s cause and origin . . .

HRT, who, after one phone call, sent buses for firefighters and residents to

use as warming stations, and the Red Cross and City staff who opened a nearby

recreation center for displaced residents.

This was a great example of regional planning and cooperation.

Chief Wise is here. Please join me in thanking him and all the first

responders for their great work.

***

Norfolk is Virginia’s gateway for global trade . . . home to the world’s

largest naval base, the North American headquarters for NATO . . . and the

business, financial, educational, cultural, and medical center of the region.

Recent news of several major developments coming to the city will reinforce

our position as the dynamic urban center of Hampton Roads.

5

First was Tuesday’s formal announcement of plans by Fortune 251 company

Automatic Data Processing to open an office and bring nearly 2000 jobs to Norfolk

with an approximate $90,000,000 payroll.

ADP is a global corporation specializing in business outsourcing solutions.

They are one of the world’s most innovative, diverse and admired companies.

With over 56,000 employees, ADP serves 620,000 customers in 125 countries.

They will occupy all 375,000 square feet in the 2 Commercial Place office

building purchased by developer, Buddy Gadams, as part of a larger project called

City Walk.

This is the largest number of jobs to come to the region in well over a

generation, and is estimated to have a total annual economic impact of nearly $495

million dollars. Employees should start arriving by next fall.

This took true teamwork. Governor McAuliffe was instrumental. The entire

city council supplied policy direction and support. The effort was led by city

manager Marcus Jones and his administration with legal advice provided by city

attorney Bernard Pishko.

6

Please join me in thanking all of them for such great work.

Thanks also go to HREDA, the Chamber of Commerce, the Greater Norfolk

Corporation, the Downtown Norfolk Council, Festevents and many others for their

involvement and support.

At the heart of all of this was Buddy Gadams and his team working to secure

a lease that worked for ADP.

Please give them all a round of applause.

This total effort was a validation of years and years of public and private

partnerships working to build an authentic urban core and an economic engine that

would pay dividends for the whole city of Norfolk.

As a result, the entire office market has significantly tightened, setting the

stage for future development, future economic growth, and more job creation.

7

Central to this was Buddy’s announcement of his plan to purchase the 24-

story Bank of America building and redevelop it into Icon at City Walk - with 275

luxury-sized apartments.

With dramatic views of the Elizabeth River, a ground floor restaurant, pool

and spa fitness facility, Icon will offer a style of apartment living unlike anything

else in Hampton Roads.

This $100 million dollar investment will bring 500 more residents to the

business district, and boost the number of people living downtown to well over

6,000.

Right on time, and set to open in March of next year, is The Main – a 22-

story Hilton Hotel – and The Exchange, a 105,000 square foot, state-of-the-art

conference center. With a modern design symbolic of downtown’s renaissance,

and numerous guest amenities, The Main is going to be a transformational

development that will allow us to attract more and larger conferences.

The project created 700 construction jobs, and it will add 500 new jobs when

it opens.

8

More good news.

Work on the Waterside District is on track for an April 2017 opening. The

property is 90% leased with tenant announcements set to be made next month. We

already know about Star Hill Brew Pub. The development will create nearly 1,000

full and part-time jobs. Taylor Gray and Jennifer Carter from The Cordish

Companies are here. Welcome to Norfolk.

Together, ADP, the Main, Waterside District, and Icon at City Walk will be

a game changer for downtown. They will dramatically enhance downtown’s

vibrancy, and help boost and diversify the economy creating more investment

opportunities.

The scope of what Buddy has accomplished over the past several years is

amazing. Almost single-handedly, he has created a neighborhood in the middle of

downtown with a total investment over $300 million dollars. That includes

finished work and properties under development or construction. Buddy is also

here.

9

Marathon Development now leases 650 apartments downtown, that are 97%

occupied. There are another 545 units coming online in the next two years.

Buddy is driving the boom in downtown residential living, and his street

level retail is 100 percent leased.

***

Less than 2 hours ago, Governor McAuliffe, the City of Norfolk and

Movement Mortgage, one of the nation’s fastest growing mortgage companies,

announced it will relocate 650 jobs from within the region and add another 200

new jobs to the former J. C. Penney building at Military Circle.

Movement Mortgage was co-founded in 2008 by Toby Harris and retired

NFL player Casey Crawford. In 2014, the company generated more than $214

million dollars in revenue and originated loans totaling more than $8 billion

dollars.

Movement Mortgage will bring new energy to the Military Highway

corridor . . . set the tone for the future redevelopment of Military Circle . . . and

10

help us attract additional new development. Toby Harris is here. Please welcome

him to Norfolk.

In early May, Simon Property Group will break ground on Norfolk Premium

Outlets at the former Lake Wright Golf Course. This $75 million dollar project

will create 500 construction jobs and 800 full and part-time jobs. It is the most

important regional retail destination since MacArthur Center, projected to generate

upwards of $3 million dollars in annual tax revenue.

Norfolk based SL Nusbaum Realty was instrumental in making this project a

reality. Please join me in thanking them.

You’ll be shopping at the premium outlets by next summer.

We are also a railroad town. Since 1982, Norfolk has proudly served as

headquarters for Norfolk Southern Corporation, the nation’s premiere railroad.

Over the years, NS has been one of the city’s strongest partners. They consistently

and generously support the arts. Its employees serve on city and non-profit boards.

They volunteer in the community.

11

And just yesterday, Governor McAuliffe, Norfolk Southern and the City of

Norfolk announced that Norfolk Southern is investing $8.2 million dollars in its

headquarters here to accommodate 165 new employees downtown. I want to thank

Norfolk Southern for all it does for us, and extend a warm welcome to the new

employees who bring with them an additional $20,000,000 payroll package. This

solidifies Norfolk’s role as home to our flagship corporate citizen. Thank you

Norfolk Southern for your vote of confidence.

I also want to congratulate Wick Moorman who retired as executive

chairman of the NS board of directors at the end of the year. Wick was succeeded

by NS president and CEO Jim Squires. Mr. Squires is the latest in a long line of

great leaders at NS with a fighting spirit who will maintain the independence of

our railroad. Jim, thanks for the great job you and your team are doing.

The over 5,000 jobs ADP, Movement Mortgage, Simon, Cordish, Gold Key

PHR, and NS are bringing to the city is far and away the most important economic

development achievement in more than a generation. Why they chose Norfolk

should encourage us all. They cited our wired and skilled workforce; nearby

colleges and universities; a variety of housing options; a growing creative

12

community; a pro-business environment; the arts; light rail; bike paths; and a

vibrant, walkable downtown.

All are qualities this council and others before it worked so hard to achieve

in striving to build a 21st century city. Decades of work are now being rewarded as

businesses and residents discover the new Norfolk.

***

I also need to add that our colleges and universities are adding real value to

our economic development efforts. For Instance, Old Dominion University ranks

second in Virginia in producing STEM-H degrees.

The Governor and General Assembly recognized this effort with their

decision to fund construction of a $71 million dollar chemistry building and

authorized planning of a $74 million dollar Health Sciences building. These

facilities represent ODU’s unwavering commitment to bolster our economy and

bring high-paying, private-sector jobs to our region.

13

Likewise, Norfolk State University’s selection by the federal

government as the lead institution for a cybersecurity education and workforce

pipeline initiative will also contribute to business development and job growth in

this ever more critical field.

****

Last year, our newest public buildings - Slover Library and the consolidated

courthouse – opened to widespread acclaim.

One of the goals for the Slover was to make it a destination, a place people

of all ages would want to visit and experience often. This has been achieved by

offering areas and activities for children, teens and adults.

The linking of Slover’s modern building to the historic city hall and post

office building expresses a philosophy of preserving the best of the past while

building the future. This led the American Institute of Architects and the

American Library Association to select Slover for the prestigious 2015 Library

Building Award.

14

The library was also a factor in persuading ADP to locate downtown.

Construction on Phase II of the courthouse is on track for completion next

March. It includes a makeover of the civic center plaza, and brings Main Street

across St. Paul’s Boulevard.

From Main Street to Olney Road, the Granby Street corridor is being

energized by the renovation of the former Union Mission, the historic Virginia

Club building, the Tazewell Hotel, and more, and by the addition of 15 new

businesses and restaurants that have opened or are preparing to open.

The Downtown Norfolk Council is contributing to this activity with its

Vibrant Spaces program, which provides grants to new and existing businesses that

create street-level vitality. Following December’s round of awards, three new

businesses - Lamia’s Crepes, Muddy Paws pet store and Prince Ink Company –

moved to the 400 block of Granby Street.

Grants made to existing businesses include Brick Anchor Brew House –

where brothers Phil and Glen Smith invested $2.1 million dollars in a first-class

15

renovation of the former Jack Quinn’s. It just opened last Friday, and it is a great

addition to downtown. Please welcome Phil, who is here.

And it’s about time we thanked Sture Sigfred, Barbara Zoby and Ronnie

Zoby for their many years of investment in downtown. Their latest and perhaps

best effort is Leone’s, their sixth restaurant, which should open this summer – a

$2,000,000 project with rooftop dining.

Thank you for your confidence in Norfolk.

In the emerging Chelsea district, The Birch, which opened in 2011, serves

quality rare and exotic beers, and was just rated the 5th best beer bar in America by

USA Today. We are very proud of all of Chelsea.

The arts district – or NEON District as it’s now called - sprang to life last

year with dazzling wall murals and the addition of two new arts venues – Work

Release and Glass Wheel Studio.

Work Release is a multipurpose exhibition and events space in the historic

Texaco building on Granby developed by Brother Rutter.

16

Glass Wheel Studio – developed by the Patricia and Douglas Perry

foundation, located on Olney Road – is a contemporary art studio with two rotating

galleries and a studio artist program. The Perry’s are not able to be with us today,

but Brother Rutter is – please help me thank them for their investment in Norfolk.

Following its move to the Duke Grace building, the D’Art Center now calls

the NEON District home. D’Art, Work Release, Glass Wheel, the Chrysler

Museum with its Perry Glass Studio, and the Harrison Opera House give the

NEON six strong anchors to grow from.

It will have seven once work is complete on Phase II of the Hugh R. Copeland

Center – a second classroom and theater building for the Hurrah Players.

For more than 30 years, Hugh has used the theater to provide students with

an enriching educational experience. The Hurrah Players enduring popularity

attests to Hugh’s talent, so Hugh, thank you for all you do for our youth.

***

Led by the Chrysler Museum – Norfolk is the cultural capital of the

Commonwealth. The Virginia Symphony, Virginia Arts Festival, Virginia Opera,

and Virginia Stage Company are nationally recognized.

17

Our colleges and universities along with numerous other arts organizations

all contribute to the abundant cultural opportunities.

This season marks Maestro JoAnn Falletta’s 25th anniversary with the

Symphony. Under her baton, the Symphony has become one of the finest

orchestral groups in the country, and Todd Rosenlieb Dance is celebrating 10 years

on Granby Street.

The Virginia Arts Festival is celebrating its 20th anniversary, Rob Cross and

company have lined up a blockbuster season featuring performances by Yo Yo Ma,

the Alvin Ailey Dance Company, and of course, the Virginia International Tattoo,

named by the American Bus Association as the top U.S. event of North America’s

100 Best Events for 2016.

The Tattoo will also feature the first American Pipe Band Championship.

Three hundred pipers in eight bands from Canada, the United Kingdom and the

U.S. - and ranking among the best in the world - will compete for top honors at

Scope. It will be the biggest gathering of pipe bands in U.S. history.

18

The arts are vital to Norfolk. They distinguish us for their high quality while

improving our economy.

In a city as diverse as ours, with so many differing points of view, the arts,

including public art, help bring us together. We can all agree about our love of

beauty and the arts provide this in our lives and in the public realm. It works to

unify us.

More than any community in Hampton Roads or the Commonwealth, we

support the arts and are proud to do so. They deserve our support both public and

private….and for good reason.

What would warm weather be without Festevents and its waterfront festivals

led by Harborfest - the longest running free maritime festival in the nation. This

year, Harborfest celebrates its 40th anniversary with three days of tall ships, music,

family fun and a spectacular fireworks show.

Festevents has been an essential ingredient in downtown’s revitalization, and

in Norfolk, becoming a regional entertainment destination. For more than 30

years, Karen Scherberger and her talented staff have produced award-winning

19

waterfront events in downtown and in Ocean View, bringing millions of people to

Norfolk. To Karen and everyone at Festevents, thank you for all you have done

and continue to do for us.

I also want to thank Mary Miller and the folks at the Downtown Norfolk

Council for their solid stewardship of all things downtown, and for giving us a

great family tradition with the Grand Illumination Parade. DNC’s First Fridays

have also become very popular events. In a throwback to yesteryear, the 2016

series kick-off on April 1st will debut the return of streetlight arches on Granby.

****

With more than 500 animals, four continents, eight gardens and a half-

million visitors a year, the Virginia Zoo is a world-class attraction and a great place

for families. This year the Zoo will be celebrating its 115th anniversary with a

variety of events including the return of Zoo to Do, a capital campaign for a reptile

house, and the opening of The Animal Wellness Campus.

****

The Botanical Garden has developed a national reputation for excellence.

They are now hosting Lantern Asia. 36 works of art – some four stories tall and

20

highlighting traditional Asian themes. Whether seen during the day, or illuminated

at night, this is a spectacular exhibition.

More than a quarter-million visitors explored Nauticus and the Battleship

Wisconsin last year. Nauticus’ emphasis on environmental education led to awards

for its Junior Scientists Club and for its partnership with the Elizabeth River

Project.

Last year, the city welcomed the return of Carnival Cruise Lines as

passengers from across the mid-Atlantic boarded ships bound for the Bahamas and

Bermuda.  Overall, nearly 38,000 cruise ship passengers, and 14,000 crewmembers

visited Downtown Norfolk in 2015.

This year, our schedule continues to grow, in fact, we are double-booked for

a day in October, with a ship at Half Moone and another at Lamberts Point.  We’ll

roll out the red carpet for more than 44,000 passengers and 14,000 crew in 2016,

creating an enormous economic impact.

****

To strengthen our city’s long-term financial sustainability, the council

adopted policies that have structurally balanced the budget and fully funded the

Economic Downturn and Risk Management reserves.

21

We finished the fiscal year with an $8 million dollar surplus, and our present

operating budget, largely because of efficiencies, is less than it was six years ago.

For the third straight year, real estate assessments will see an increase, and

are projected to increase next year. Over the last 20 years, assessments citywide

have grown from $7.8 billion dollars to $18.2 billion dollars – a strong sign of a

growing and resilient tax base.

It’s remarkable when you consider this growth occurred during the great

recession in a city that was already 95% developed.

Our population grew again last year, now standing at over 247,000. It has

increased every year for the past 5 years - long enough to declare this a trend.

Even more encouraging, our population is getting younger – nearly one-third

of our residents are millennials.

22

At last count, there are more than 203,000 jobs in the city with over 5,000

more on the way, and we continue to have the region’s highest average weekly

wage.

The unemployment rate of 5.2% is 3.3 percentage points lower than five

years ago – great news.

The strength of our on-line business communities, together with efforts to

improve broadband access for residents and businesses to be wired and wireless,

was recognized by internet technology giant Google, which named Norfolk as

Virginia’s eCity.

****

Last fall, Norfolk welcomed a new corporate citizen – the CDI Corporation.

CDI provides engineering, IT and staffing solutions in a range of industries,

including the defense industry.

Following a half-million dollar renovation of its building in Norfolk

Industrial Park, CDI opened last fall bringing 200 high quality jobs to the city.

23

Scott Cummings, CDI Director of Engineering and Government Services, is here

with us. Please join me in welcoming him and all CDI employees to Norfolk.

Sentara’s recent announcement that construction is set to begin on a $199

million dollar expansion at Norfolk General Hospital is great news for the region’s

health care.

Three floors will be added to the Kaufman and River Pavilion wings, 18

operating rooms will be expanded and modernized, and the emergency department

will be expanded.

Sentara Norfolk General has been ranked two years in row by U. S. News

and World Report as Virginia’s best hospital. In the past 18 months, patients from

28 states, Puerto Rico, Canada, Germany and other countries have traveled to

Sentara Norfolk General for cardiac, cancer, neurology and urology care, making it

a Mid-Atlantic and international destination for advanced medical treatment.

And in less than a week, the ribbon will be cut on the final phase of Sentara

Leigh Hospital’s $120 million dollar renovation.

****

24

Colonna’s Shipyard – located in Berkley - is the oldest family-owned and

operated private shipyard in the nation. It recently announced plans to invest $30

million dollars to expand its operations with a larger dry dock, and to add 51 new

jobs.

Colonna’s has called Norfolk home since 1875, and last year celebrated its

140th year. Congratulations to everyone at Colonna’s. Karen Colonna is with us

today.

Under the steady hand of its executive director and CEO John Reinhart, the

Port of Virginia roared back to profitability in 2015, handling nearly 20 million

tons of cargo valued at $60 billion dollars – a record year that made the port the

fifth largest in the nation. And they are on track to have another record breaking

year.

According to a 2014 study, the port generates more than $60 billion dollars

in spending, 7% of the state’s GDP – and provides more than 374,000 jobs. That’s

9.5% of the state’s employment.

25

To prepare for even larger ships, the port and Army Corps of Engineers are

evaluating dredging the channels deeper than 50 feet.

When combined with $31 million dollars in improvements underway at NIT,

this will allow the port to market the deepest channels and most modern terminals

on the East Coast.

In an effort to stimulate greater export activity, the city established the

Global Initiatives Fund, offering direct access to capital for businesses looking to

enter or expand into the global marketplace.

The goal is to create more companies like Sorrentino Mariani, an

international firm founded more than 20 years ago by Rick and Felicia Mariani.

The Marianis manufacture high quality furniture that’s shipped worldwide.

The majority of their 60-person workforce lives in Norfolk. The company also

works with the Second Chances program to hire ex-offenders.

26

Sorrentino Mariani is in a growth mode, and plans to invest up to $4 million

dollars for an expansion in the Douglas Park area, and add an additional 50 to 60

new jobs.

Rick and Felicia are with us, and today just happens to be their 38th wedding

anniversary. . . please stand so we can recognize you.

****

The City’s 75-year partnership with Norfolk Redevelopment and Housing

Authority has produced historic achievements. It has revitalized downtown, built

new neighborhoods, revitalized others, and helped develop the campuses of

Norfolk State and Old Dominion universities, and Tidewater Community College

that are so important to us.

More recently, it has helped transform East Ocean View with new

communities. East Beach, Harbor Walk and Bay Breeze Point have increased

homeownership rates and, since the year 2000, helped increase property values

from $42 million to $480 million dollars. Our partner in the remarkable East

Beach development is Bart Frye….let’s thank him.

27

Development of the new Broad Creek community has increased property

values from essentially zero to $82 million dollars, while adding new assets such

as the amazing $80 million dollar Kroc Center, a new Richard H. Bowling

Elementary, and an anchor branch library that will start construction later this year.

In the Church Street/Huntersville corridor, redevelopment efforts have

increased values from $35 million dollars in 2000 to $142 million dollars today.

And in Berkley, redevelopment continues with the Banks at Berkley, a 4-story, 50-

unit apartment community by WODA Development that broke ground last fall. It

is named in honor of long-time civic leader George Banks. George is here, so

please stand.

In Wards Corner, acquisition and demolition of blighted properties in Denby

Park, development of the $18 million dollar K&K shopping center and a new $20

million dollar Sam’s Club have helped double property values to nearly $390

million dollars.

****

28

Improving student test scores and the recent appointment of Dr. Melinda

Boone as superintendent promise better days ahead for Norfolk Public Schools.

Dr. Boone returned to Norfolk after serving as school superintendent in Worcester,

Massachusetts. She is here today, so please give her a warm welcome home.

Dr. Boone begins her tenure in the middle of the most ambitious school

construction program in the city’s history.

At this moment, four schools are under construction: the Campostella K

through 8 STEM School; Richard H. Bowling; Larchmont; and Ocean View

elementary schools. Including the new Crossroads Elementary, this is a $130

million dollar investment, and fulfills the council’s promise to build five new

schools. We are also committed to building a new Camp Allen Elementary with

the Navy, and design work is now underway.

When combined with the 2004 opening of Norview High, Coleman Place

Elementary and the renovated and enlarged Blair Middle School, we will have

built 9 schools in 13 years at a total cost of $244 million dollars.

29

The most significant capital investment in our school system in the city’s

history.

It’s now time to focus on building a Career Technical High School. Of the

estimated 1.5 million job openings in the Commonwealth in the next decade, 50-

60% will not require a four-year degree. But, they will require advanced training

in technical skills. This is what CTE schools specialize in, along with rigorous

academics.

A CTE School educates students for a range of career options such as

transportation, health science and information technology.

The CTE school enjoys real support, but it will require a strong partnership

among the city, the school system, the business and philanthropic community and

the state. Vital for our children’s future, it should be our number one priority

going forward.

****

The root of so many of the social challenges we face – whether it’s crime,

educational attainment, unemployment, or public health can be explained by the

30

presence of poverty. At 22%, Norfolk’s poverty rate has remained essentially

unchanged for decades.

This led to the appointment of a blue ribbon task force that recommended

focusing poverty reduction efforts on early childhood education, youth career

pathways, adult workforce development and neighborhood revitalization.

Beginning with last year’s budget, $3.9 million dollars has been allocated

toward implementing those recommendations. More will be needed.

$1.4 million helped establish a housing trust fund to address the need for

affordable housing.

$1 million was set aside for planning the Career Technical Education high

school.

And $1.5 million was dedicated to implementing recommendations for

workforce development, neighborhood revitalization and early childhood

development.

31

The workforce development component will be strengthened by a $2.7

million dollar HUD grant that will allow NRHA to provide work readiness,

education and financial empowerment services to 225 families in the Young

Terrace public housing community.

Together with our private and non-profit partners, we can and we will begin

to move more Norfolk residents out of poverty and into the mainstream. (PAUSE)

Ten years ago, the city adopted a Blueprint to End Homelessness. It was a

bold beginning to tackle a tragic and complicated problem. Looking back, it is

remarkable what has been accomplished.

We now have an Office to End Homelessness that has partnered with dozens

of non-profit organizations to respond to the needs of homeless citizens -

especially families, veterans and the chronically homeless.

When we started, there was no supportive housing anywhere in the region.

Today there are 320 units. The first 60 were built in Norfolk, and once Church

Street Station is completed at the end of the year, another 40 units will come on-

line. Just last week Crescent Square was opened in Virginia Beach.

32

As part of our commitment to veterans, in September 2014 Norfolk became

the first city in Virginia to sign on to the National Mayor’s Challenge to End

Veterans Homelessness.

We met that challenge last Veterans Day, thanks to the assistance of our

many partners at the federal, state and local level.

I would also like to acknowledge with deep appreciation, everyone who’s

helped make our Homeless Connect events a great success. Twice a year for the

past ten years, over 500 volunteers have assembled at Scope to serve an average of

450 people needing assistance. It is an inspiring example of human compassion.

****

As a city nearly surrounded by water, flooding has been a fact of life here

for centuries. But rising seas and sinking land have made flooding a commonplace

occurrence.

33

It is a formidable challenge with multiple solutions – none of them

inexpensive. So the recent announcement that Norfolk will receive most of a $120

million dollar federal flood mitigation grant was very welcome news, and allows

us to move ahead on two important projects.

The first is in the Ohio Creek watershed east of downtown. There, portions

of Kimball Terrace and Westminster Avenue will be elevated; berms and swales

will be constructed and marshes improved to capture storm water in the

Chesterfield Heights neighborhood.

The second project is development of a “coastal resilience accelerator” to

induce new businesses devoted to combatting rising seas.

Beginning this spring, the Army Corps of Engineers begins a major project

to replenish the beach from East Ocean View to Willoughby. The city is

responsible for 25% of the cost of this $38 million dollar effort – about $9 million

dollars.

When finished, it will greatly improve the beaches, and protect bay front

communities from storm surge flooding.

34

Complementing this is a recently approved sand management plan to protect

the dunes and promote beach stability.

The Army Corp also chose Norfolk for a comprehensive study to evaluate

alternatives for coordinated and implementable solutions for flood risk

management. Our selection was supported by the White House, which has called

Norfolk a national model.

Over time, we have developed a strong partnership with our friends at the

Corps and we should thank them.

The city will also be part of a joint land use study the Navy will be

conducting to better understand the effects of climate change and sea level rise on

naval facilities here and in Virginia Beach.

In addition to on-going flood mitigation projects such as raising roadways,

installing more pump stations and completing drainage improvements, we’ve also

been narrowing options and cost estimates for flood barriers to protect areas in

Ghent, Ocean View and a large portion of the city in the Lafayette River

watershed.

35

Mitigation is also needed in the Newton Creek watershed, which

encompasses the St. Paul’s revitalization area. These are big projects with big

costs requiring more assistance from the federal government.

Flood mitigation is part of a larger effort focused on resiliency. In 2013,

Norfolk became one of the first members of the Rockefeller Foundation’s 100

Resilient Cities. This initiative is helping cities around the world become better

able to meet physical, social and economic challenges through collaborative

problem solving.

****Norfolk has one of the best police departments in the country, and under

Chief Mike Goldsmith’s leadership, NPD is becoming a more agile organization,

capable of adapting quickly to a changing environment.

A good example of this is the Crisis Intervention Team, a joint effort with

the Community Services Board to train officers in how to respond more effectively

to calls involving people with severe psychiatric problems.

In less than a year, the program graduated 200 police officers and

established a roving patrol dedicated to answering psychiatric crisis calls.

36

This has resulted in an unprecedented decrease in arrests and use of force by

officers.

In recognition of this superior performance, the Virginia CIT Coalition

awarded the Norfolk Crisis Intervention Team the 2015 CIT Program of the Year

Award, so please join me in congratulating NPD on this important achievement.

NPD was also among the first police departments in the state to adopt the

use of body cameras. Right now, 340 officers are equipped with body cameras.

Another 250 are on order, enough to equip all uniformed officers in the Field

Operations Bureau.

The chief has also implemented programs to improve officers’ response to

cultural, gender-based, age-related and socio-economic differences, and to identify

behavior patterns indicating an officer may need retraining or supervisory

intervention.

These proactive steps, together with NPD’s extensive community outreach

efforts, place it in the forefront of the most innovative police departments.

37

I’m also pleased to report the overall crime rate fell again last year by 3%.

While violent crime was up, the 3% decrease in overall crime continues a 15 year

trend that, since 2000, has seen violent crime fall 25%, property crime by 36% and

total crime by 35%.

This achievement is due to solid police work, citizen participation and the

good work of the Crime Line program.

****

In the Global economy, transportation is destiny . . . for our economy

to reach its full potential, our transportation network must improve.

With the Hampton Roads Transportation Accountability Commission, we

now have a vehicle for funding and building new projects. So far, nine have been

identified with a price tag of $8.6 billion dollars.

Of those, the first phase of widening I-64 on the Peninsula is under

construction, with the second phase slated to begin this fall.

38

On the Southside, bids will be advertised next month on Phase I of a project

to improve the I-64/I-264 interchange. The second phase will be advertised for bid

January.

Construction is at last underway on the I-564 Intermodal Connector. It is a

$175 million dollar project. It will improve traffic congestion in and out of the

naval base and assist in the handling of increasing cargo loads at the port.

It is designed to help divert truck traffic off Hampton Boulevard. It also is

the first leg of the third harbor crossing.

Since 1997, the third crossing has been the region’s unanimously agreed

upon priority for congestion relief at harbor crossing chokepoints – especially at

the HRBT.

It has been endorsed by everyone from the Navy, the Chamber of Commerce

and Norfolk Southern Corporation to the Norfolk Federation of Civic Leagues.

For the region’s economic future, we must find a way to build the third

crossing.

39

Work on the $2.1 billion dollar Midtown Tunnel project - one of the region’s

largest highway projects in the last 30 years is nearly complete. When finished,

hopefully next year, it will double the capacity of the 50 year-old crossing, and

reduce round-trip travel time by 30 minutes.

It will better connect the region and, just as other bridge-tunnel projects have

done, will stimulate the economy, and create jobs while relieving some pressure at

the Downtown and HRBT tunnels.

It will also offer traffic relief on Hampton Blvd. and Brambleton Avenue.

Ultimately though, adding more highway lanes will not solve our congestion

problems. Solutions must include alternate modes of transportation, and these

include bus, light rail and heavy rail.

Norfolk is the only city in the Commonwealth with a light rail system, and

work is now proceeding on plans to extend the line to the Naval Base, the next

logical destination.

Let’s hope our friends in Virginia Beach will move ahead on extending The

Tide from Newtown Road to the Town Center. This is a natural connection that

40

will improve commerce between the two cities even as it provides more

commuters a viable alternative to the automobile.

With the return of intercity passenger rail in 2012, ridership has increased

each year. Last year, nearly 154,000 people rode the train. The Commonwealth

has now completed funding for capacity improvements between Norfolk and

Richmond to allow for trains two and three. Train two should be in service by

2018.

****

Norfolk is a richly diverse city, and as we look forward to the coming year

and beyond, there is much to be thankful for.

Our economy is diversifying and improving.

Local revenues are growing. The budget is well-managed and structurally

balanced. We finished the fiscal year with an $8 million surplus.

41

Our unemployment is lower, and more people are working. The crime rate

continues on a downward trend, and we are working diligently to improve the lives

of our neediest fellow citizens.

We have the best city employees and best city manager in Virginia.

Our population is growing, and growing younger as people and businesses

rediscover the many advantages of real city living – its arts and cultural life….

higher education opportunities…. comprehensive and convenient medical care…..a

vibrant downtown….. neighborhoods of every variety from urban to

suburban…..bike paths, beaches and waterways….. and the convenience of living

in the heart of the region.

Norfolk is a vibrant and historic port city where citizens, the military, and

businesses are creating the most dynamic and authentic urban waterfront

community in America.

All of this makes it possible to say that the state of this old seaport city is

strong, and the future is very bright.

After 22 years as mayor, this is my 20th and final State of the City speech.

42

I have cherished this long, sometimes too long, conversation we have had

about the well-being of our community.

Our city has made real progress over the last couple of decades. Working

together, we have built a better home for ourselves and our children, and we are

positioned to capitalize on the momentum generated. With recent announcements,

and more on the way, I know we have turned a corner.

My optimism is also based on my belief that there is a talented, capable,

younger generation present and eager to take Norfolk forward. I’m going to enjoy

watching it happen.

Thank you for your many years of hard work, encouragement, and support.

It has been an honor.

God bless you and God bless the City of Norfolk.

43