(The following story by Aaron Applegate appeared on The Virginian-Pilot website on September 15, 2010.)
VIRGINIA BEACH, Virginia – It’s a done deal. The city will soon own the old rail line long coveted by some leaders as the ideal spot for a future light-rail project.
The City Council on Tuesday voted unanimously to spend $40 million to buy a 10.6-mile corridor from railroad giant Norfolk Southern.
“This is a vital piece of property for the city to control, and that’s something we never should forget,” Mayor Will Sessoms told about 100 people at a public hearing.
A contingent of residents told the council that the property is too expensive, light rail is a bad idea, and any decision about the project should be put to voters in a referendum.
“The only beneficiaries are the developers,” said Paul Davis, member of the Virginia Beach Taxpayer Alliance. “Those are the ones that are going to make money.”
Another group described the council members as visionaries poised to improve life in the Beach for generations to come. Members of the new group Light Rail Now came out in force.
“I consider this to be a historic occasion,” said Mike Barrett, CEO of Runnymede, a commercial real estate company. “This isn’t the Louisiana Purchase, but it’s up there.”
The closing on the property, which runs along Interstate 264 from Newtown to Birdneck roads, is scheduled for Sept. 24.
As part of the agreement, the city will buy a $5 million utility easement from the company, bringing the Beach’s total cost to $15 million. The city had previously committed only $10 million to the project. The state will contribute $20 million, and Hampton Roads Transit is expected to spend $5 million over five years.
The city’s additional $5 million expense is for a Dominion Virginia Power easement that will generate about $100,000 a year in rent. The option to purchase it was exercised before the December 2012 deadline because the money helped the city secure the $20 million state grant, officials said.
Councilman Bill DeSteph told residents that the purchase does not mean light rail is a done deal.
“We’re still on track to put this out to referendum,” he said. “It’s important we control the Norfolk Southern right of way.”
Residents voted down light rail in a referendum in 1999.