Portsmouth City Council Work Session and Regular Meeting - April 8, 2025

The Portsmouth City Council held a work session at 9:45 AM and a regular meeting at 7:00 PM on April 8, 2025. The work session featured presentations on economic development, towing rate adjustments, the Community Development Block Grant (CDBG) annual action plan, and requests for use permit extensions for senior and affordable housing projects. The regular meeting included multiple public hearings on the FY2026 budget, capital improvement plan, and rates, followed by council member reports and citizen comments.

Public Comments & Testimony

• CDBG Action Plan: Nicole Davis (Executive Director, Independent Center) spoke in support of continued CDBG funding, highlighting outcomes including 40 individuals achieving independence, 18 obtaining housing, and 9 deaf/hard-of-hearing receiving assistive technology over five years.
• FY2026 Operating Budget:
  • Jo Anne Clark (Churchland resident) noted a $40 million revenue increase to $143 million and cautioned about approaching debt limits.
  • Sergeant O'Neill (resident) urged support for education and recreation, warning against cuts to recreation services and emphasizing scholarships for summer programs.
  • Mary Smith (former city employee) expressed support for city staff and retirees, referencing her 32 years of service.
  • Joseph Kelly (resident) called for budget focus on community needs like recreation to keep youth safe, citing a recent murder in his neighborhood.
  • Garland Alexander and Jack Ligenthal (retired firefighters) requested a 5% per year cost-of-living adjustment (COLA) for retirees, noting no raise since 2013 and the impact on widows.
• Capital Improvement Plan (CIP): Jo Anne Clark questioned transfers from the stormwater fund and noted a $3 million increase for parks/recreation, asking about project timing for city hall renovations and jail demolition.
• Rates and Levies: Jo Anne Clark suggested using non-resident fees for summer programs to benefit Portsmouth residents. Mary Smith questioned overtime costs at Lake Kilby pumping station, recommending three 8-hour shifts instead of two 12-hour shifts.
• Non-Agenda Speakers:
  • George Knox reported delays in bulk trash pickup; directed to staff.
  • Sherman Tyler described two incidents of masked robbery and car break-in, urging an ordinance to ban ski masks in public to aid crime identification.
  • Kelly Ortiz read a letter from Prentice Park residents demanding action on a raw sewage hole on Parker Avenue that has persisted nine months, posing health risks and exposing city workers to hazards without proper PPE.
  • Troya Wright echoed the sewage issue and noted similar problems in other old neighborhoods.

Discussion Items

• Economic Development Presentation (Brian Donahue):
  • Highlighted Portsmouth's role in the "blue economy" with maritime assets, offshore wind (Coastal Virginia Offshore Wind project), distribution/logistics, and advanced manufacturing.
  • Reported $21 million in casino revenue in year two, a 340,000 sq ft Stonemont distribution center ($16M investment), two new transload facilities ($100M combined), and General Dynamics shipyard expansion (200 jobs, $20M investment).
  • Outlined strategic initiatives: Waterfront redevelopment (Crawford Bay, phased), Innovation District (Woda Cooper 50-unit project breaking ground, Kings Landing 49 townhomes), and Entertainment District around Rivers Casino (14 acres EDA-owned).
  • Emphasized workforce development via Portsmouth at Work, with free training in healthcare, maritime, trucking, etc.
  • Council questions: Councilman Dotson requested specific dates for RFP and demolition; Mayor Glover praised progress; Councilman Thomas asked about grocery store access; Councilman Hugel noted the need for 100,000 maritime workers nationally.
• Towing Rate Adjustments (Lieutenant Lux):
  • Proposed new rates: light vehicles $200, medium $350, heavy $575 (previously flat $105). Storage fees increase from $20 to $50/70 per day. Last updated in 2006.
  • Rates align with Norfolk and Virginia Beach. Only apply to city-requested towing on the police tow board list.
  • Council discussion: Councilman Dotson requested details on how companies get on/off the list; Vice Mayor Moody asked about the tow board's role; Councilwoman Thomas inquired why rates weren't updated since tow board was inactive.
• CDBG Annual Action Plan FY25-26 (Dr. Rhonda Russell):
  • Total funding estimated at $1,781,718 (including program income). Proposed allocations include: $75,000 for mobile kids meals, $27,750 for youth leadership, $25,000 for Hampton-Newport News Community Services Board (mental health services), $176,000 for program administration.
  • Not recommended: Upward Care (business coaching for childcare providers, $184K) due to duplication; Four Kids Housing Crisis Hotline ($100K) due to high unit cost.
  • HOME funds: $504,159 for tenant-based rental assistance (Four Kids, $185,850) and down payment assistance (HRPDC, $201,238). CHDO set-aside of $68,309 for Habitat for Humanity and HRCAP.
  • Council questions: Councilman Hugel clarified Upward Care's services and asked about eviction prevention vs. tenant-based assistance; Councilman Tillage noted the VERP program (Virginia Eviction Reduction Pilot) which matches city funds.
• Twin Pines Senior Housing Use Permit Extension (PRHA, Andre Blakely):
  • Requesting extension to build 82 senior units (62+), 1- and 2-bedroom, with project-based vouchers. Rents: $1,496 (1BR), $1,705 (2BR). Timeline: May 1 submission to Virginia Housing, closing by November 2025, construction 18 months.
  • Council Councilman Tillage raised transparency concerns: original application in 2022 was presented as market-rate, but after approval, PRHA acquired the property and changed to affordable housing. He felt the public was misled and requested a new public hearing.
  • Others noted the project's appearance hasn't changed, need for senior housing, and time sensitivity for funding. Mayor Glover acknowledged the transparency issue but emphasized the need for affordable senior housing. No vote tonight; item on next meeting agenda.
• Ansel Affordable Housing Use Permit Extension (Milo Pfeffer, Community Housing Partners):
  • Requesting extension for 39 affordable units (30-80% AMI). Delayed due to financial challenges; resubmitting for tax credits. Construction expected April 2026. No further discussion.

Key Outcomes

• No formal votes taken on work session items. The use permit extensions for Twin Pines and Ansel will be voted on at the next regular council meeting (likely April 22).
• Retiree COLA: Vice Mayor Moody called for a consensus to replace the proposed $1,500 stipend with a 5% COLA for FY2026. Council members Bryan and Dotson requested more time to review fiscal impacts after individual budget meetings with the city manager. City manager will provide actuary cost estimates next week.
• Board Appointments: Council approved reappointments and new appointments to numerous boards and commissions (Downtown Design Committee, Crime and Gun Violence Task Force, Wetlands Board, etc.) via a single vote, 7-0.
• Ordinance: Accepted $95,199 HUD continuum of care planning grant for homelessness planning activities; adopted 7-0.
• Public Hearing Closures: All three public hearings (CDBG plan, operating budget, CIP, rates/levies) were closed. No action taken; council will continue budget deliberations.