Portsmouth City Council Public Work Session with PPIC Update - July 7, 2025

On July 7, 2025, the Portsmouth City Council held a public work session to receive a presentation from the Portsmouth Port and Industrial Commission (PPIC) on recent activities, grant programs, development sites, and port-related opportunities. The meeting included a roll call, the presentation, extensive council discussion, and concluded with a motion to enter closed session for legal consultation.

Discussion Items

• PPIC Presentation: The Chair of the PPIC, Ms. Allen, presented an overview of the commission's history (created in 1954), powers, and recent activities. The presentation covered:
  • Grant Programs: PPIC administers the state-funded Commonwealth Development Opportunity Fund and local Port Host grants. The Port Host grant offers awards from $480,000 to $1 million for projects creating jobs paying at least 200% of Virginia's minimum wage. The Commonwealth Development Opportunity Fund requires a 1:1 local match and is used to secure company locations.
  • Recent Projects: Six projects were highlighted: Lineage Logistics ($65M investment, $812K annual tax revenue, 84 jobs); Wild Duck Lane ($20M, $250K tax, 40 jobs); Crofton Expansion ($851K, $10K tax, jobs uncertain); Norfolk and Portsmouth Beltline Railroad Raymond Logistics ($6M Phase 1, $75K tax, 10-15 jobs); DeLong on Harper Avenue ($20.2M Phase 1, $250K tax, 15-20 jobs). Total projected annual tax revenue from these projects is $1.4 million with 180 new jobs.
  • Development Sites: A 13-acre former school/EPA Superfund site (purchased by Stone Mount Financial Group) to become a 180,000 sq. ft. industrial warehouse, construction starting 2026. Two parcels on 06th Street and 7th Street (vacant, acquired 2024) are being marketed. American Cruise Lines currently docks up to 15 times per year (spring/fall) with 105-120 passengers, seeking to increase to 25-35 visits. Requests include city water connection, refuse removal, seawall modifications, and a docking agreement. Southgate Annex (approx. 16 acres on Burton's Point Road) is under engagement with Norfolk Naval Shipyard for potential enhanced use agreement, pending shipyard optimization plans. PPIC seeks to be lead entity for engagement with Virginia Port Authority on VIG and PMT.
• Council Discussion:
  • Vice Mayor Moody asked whether tax revenue figures include all applicable taxes (machine/tool, real estate, personal property); the PPIC chair confirmed they are all-inclusive. He also requested information on the percentage of new jobs going to Portsmouth residents and wage levels; the chair agreed to follow up.
  • Councilman Hugo discussed the Southgate Annex situation, noting that the shipyard is undergoing waterfront optimization and uses the property for swing space. The shipyard is interested in upgrading piers as service-in-kind, but plans are on hold. He also addressed modifications for American Cruise Lines and tall ships for Op Sail 250 (June 2026), emphasizing urgency for temporary mooring solutions and long-term waterfront planning.
  • Councilman Dodson inquired about small boat needs at North Landing for tourism; no specific plans were available, but the focus is on tall ships.
  • Councilman Hugo raised questions about the job creation grant program: eligibility, marketing, and outreach. Economic Development Director Byron Donahue explained the program fills gaps where state Enterprise Zone grants don't apply, requires at least five jobs, and is promoted via website, publications, and business retention visits.
  • Councilwoman Bryant highlighted the cruise line opportunity and asked about tourism activities for disembarking passengers. She suggested working with tourism department to create itineraries and attract visitors from Carnival cruises in Norfolk.
  • Councilwoman Thomas (via remote) emphasized the need for workforce development pipeline: identifying job requirements (e.g., OSHA certification) and coordinating with schools, community college, and workforce council to prepare Portsmouth residents.
• Closed Session Motion: Vice Mayor Moody moved to go into closed session pursuant to Va. Code § 2.2-3711(A)(7) for consultation with legal counsel regarding pending litigation: City of Portsmouth vs. Griff's Restaurant and Sports Lounge and JDF Holdings, LLC (Case CL25001466-00) and City of Portsmouth vs. Swenson Restaurant Corporation (Case CL25001599-0). The motion was seconded and approved by roll call (7-0).

Key Outcomes

• No formal votes or decisions were taken during the public session; the meeting transitioned to closed session.
• The PPIC presentation provided an update on ongoing projects and economic development activities. Council requested follow-up information on job residency, wage levels, and waterfront improvement costs.
• Council expressed support for continued engagement with American Cruise Lines and the shipyard, and prioritized tourism-related infrastructure for the upcoming tall ships event.
• The job creation grant program was clarified as an available tool for industrial projects outside the Enterprise Zone.
• The closed session was authorized to discuss legal strategy in two restaurant-related lawsuits.