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Wednesday, January 20, 2010

Business, other groups object to storm water utility proposal

Roanoke City Council voted to table to utility after complaints about hefty fees.

Related

Previous coverage

Top 10 entities that would be most affected by a stormwater utility

The dollar figures reflect each entity's monthly bill if the council approves the city staff's recommendations.
  • 1) Roanoke Regional Airport -- $16,911
  • 2) Norfolk & Southern Railroad -- $7,881
  • 3) Carilion Clinic -- $4,401
  • 4) Industrial Development and Investment Company -- $4,098
  • 5) Roanoke Redevelopment and Housing Authority -- $2,901
  • 6) Roanoke Electric Steel Corp -- $2,640
  • 7) Western Virginia Water Authority -- $2,496
  • 8) Crossroads Investors II LLC -- $2,328
  • 9) Valley View Mall LLC -- $2,091
  • 10) Town Square LLC -- $2,064
  • Average city-wide non-residential assessment: $33

* Some entities listed here are eligible for stormwater credits, which could reduce the monthly bill by up to 50 percent. Source: City of Roanoke

Opinion

Heavy hitters from Roanoke's business, nonprofit and church communities weighed in Tuesday against a proposed storm water utility that would impose a new tax on property owners throughout the city.

Most of the 13 speakers during a public hearing before the Roanoke City Council agreed there's a need to build and repair storm water drainage projects, but they disagreed with the details of a proposal that would levy a $36 annual fee on single-family homeowners and potentially much more on nonresidential property owners.

The council voted unanimously to table the utility, pending more discussion.

City officials proposed the utility and fee to generate between $3 million and $4.5 million annually to fund a backlog of 191 projects totaling $58.9 million and meet requirements of proposed federal and state regulations.

Speakers at the public hearing argued that there are better ways to implement the fee.

James Turner, chairman of the Roanoke Regional Airport Commission, said the proposed utility would essentially amount to a $200,000 annual tax on one of the region's economic pillars.

Lawyer Maryellen Goodlatte appeared on behalf of six of the top 25 business property owners in the city that collectively pay more than $1.5 million annually in city taxes.

"To a company, they are alarmed and concerned about the magnitude of the fees that are proposed for them and the negative impact those fees will have on their businesses, on their employees and on their futures," Goodlatte said.

Joyce Waugh, president of the Roanoke Regional Chamber of Commerce, said that if the city enacts the utility without buy-in from surrounding localities, it will place Roanoke at a competitive disadvantage when it comes to economic development. Instead, she suggested the city consider using a broader agency such as the Western Virginia Water Authority as the vehicle for a more regional approach.

Wendy Jones, executive director of the Williamson Road Area Business Association, which represents more than 150 businesses, said her board opposes the utility as well. Jones argued that the utility should be drawn up as a business plan and implemented after the economy has recovered from the downturn.

Others representing churches and nonprofit groups also objected to the storm water utility as proposed.

In other business:

n The council voted unanimously to renew the contract of First Transit to operate the Greater Roanoke Transit Co. First Transit, based in Cincinnati, has managed the city's Valley Metro bus service since 1974, according to the company's Web site.

n The council unanimously agreed to changes in its five-year capital improvements plan that will delay many of the planned projects by a year or more. The changes were made based on recommendations by finance and budget staff in an attempt to meet certain debt thresholds and salvage the city's bond rating, which is up for review.

Among the projects subject to delay are renovations to the Washington Park pool and Countryside Golf Course, and the construction of a new branch library on Peters Creek Road Northwest.

n The council voted to approve the design of planned improvements to the 10th Street Northwest corridor between Williamson Road and Fairfax Avenue.

The project, which will be carried out by the Virginia Department of Transportation with right of way acquisition beginning this year, includes a westbound left-turn lane on Orange Avenue at l0th Street; the removal of the traffic signal at 11th Street and Orange Avenue; the addition of curb, gutter, sidewalk and street trees; bike lanes; drainage improvements; and a grade separation of the Lick Run Greenway crossing of 10th Street.

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