Portsmouth City Council and Economic Development Authority Joint Meeting – August 25, 2025

The city council and the Economic Development Authority (EDA) held a joint meeting on August 25, 2025, to discuss key economic development initiatives, share lessons from a recent trip to Greenville, South Carolina, and review proposed amendments to the zoning ordinance aimed at improving public safety in entertainment venues and restaurants. The meeting also included a closed session regarding the city assessor and the process for retaining a new city attorney.

Discussion Items

• EDA Report and Initiatives: EDA Chair Malcolm Mitchell presented the EDA's programs, including the Business Investment Grant Program (which provided $50,000 to 25 new businesses, $46,000 to 10 expanding businesses, and $352,000 for 22 real property improvements in fiscal year 2025), a new Small Business Working Capital Loan Program (up to $50,000), the Bloom pop-up retail shop, and workforce development support ($100,000).
• Major Development Projects: The EDA outlined three major projects:
  • Crawford Bay Waterfront Development: Phase one is estimated at over $366 million, potentially including 300 multifamily units, a 180-room boutique hotel, 60,000 sq ft of retail, and 40,000 sq ft of office space. A market analysis, geotechnical study, and environmental analysis have been completed. AECOM has been contracted for $167,000 in consulting services. A developer is expected to be selected by November 2026.
  • Link District: The EDA owns several properties on High Street, including 1117-1121 High Street, 1220 High Street (soon to be a coffee shop), and 934 High Street. A focus on attracting quality retail and art is planned. Housing units (King's Landing, Baines Point, etc.) are under construction.
  • Entertainment District (Rivers Casino): The $340 million investment has generated $39 million in city revenue over two years. A new hotel is expected to create at least 60 jobs. The EDA will have the right to solicit developers for remaining parcels beginning March 11, 2026.
• Blight Tax Proposal: Vice Mayor Moody proposed exploring a tax on blighted properties, noting the city can increase the real estate tax by up to 25% above the current rate. Council members generally supported further study.
• MWBE and Comprehensive Plan Alignment: Councilwoman Thomas inquired about the integration of Minority and Women Business Enterprises (MWBE) into development projects. The city manager noted that the city has a new staff member tracking MWBE participation and that 70% of EDA tower grants went to SWAM businesses. She also asked about alignment with the city's comprehensive plan; planning staff confirmed they are part of project committees.
• Infrastructure and Housing Balance: Councilman Dodson estimated the city is $3 billion behind in infrastructure and needs at least $50 million more in annual revenue. He urged that new developments target higher-end housing to attract wealthier residents and support the tax base, while still including affordable units.
• Greenville Trip Debrief: Several council members and the mayor shared takeaways from a trip to Greenville, SC. Key points included the importance of investing in existing businesses (e.g., a $250,000 facade improvement fund), mixed-use development to drive foot traffic, public-private partnerships with relatively small incentives (e.g., a few hundred thousand dollars), a 20% workforce housing requirement, and the value of a unified streetscape and landscaping. The mayor stressed the need for higher expectations and a change in mindset to attract more people downtown.
• Link District Temporary Park: Commissioner Harman proposed creating a temporary mural park at 1028 High Street (the "homes property") after demolition, using repurposed elements and art to activate the space until development occurs.
• Zoning Ordinance Amendments: Dr. Julie Russell, Planning Director, presented proposed amendments to the zoning ordinance regarding restaurants, private clubs, entertainment venues, and event centers. Key provisions:
  • Restaurants serving alcohol after midnight must submit a security plan, have digital surveillance, restrict outdoor amplified sound after 10 p.m., and have enhanced lighting. Two or more verified police responses for disorderly conduct, fights, or alcohol-related offenses within 12 months can trigger a zoning permit revocation.
  • Entertainment venues and event centers require a use permit with supplemental standards (security plan, parking agreement, capacity limits, soundproofing, etc.). Two or more violent incidents documented by the city within 12 months can lead to revocation by city council.
  • Private clubs are defined separately from civic/social/fraternal clubs to avoid burdening non-profits.
  • Hours of operation are limited to 8 a.m. to midnight as a baseline, but applicants can request extensions through the use permit process based on site-specific conditions.
  • Controversy arose over the midnight cutoff and the distinction between restaurants and entertainment venues regarding trigger incidents. Some council members expressed concern about the impact on businesses, while the mayor insisted on public safety as the non-negotiable priority. The council reached a consensus to move forward with the language as drafted, with the understanding that it can be revisited in 6–12 months.

Key Outcomes

• The council acknowledged the EDA's progress and direction on key development projects.
• The council reached a consensus to approve the proposed zoning ordinance amendments at the next meeting (August 26, 2025), with the understanding that enforcement and effectiveness will be monitored and adjustments can be made in the future.
• The council expressed support for further exploring a blight tax ordinance and for improved communication of project milestones to the public.
• The meeting concluded with a closed session to discuss the performance of the city assessor and the process for retaining a new city attorney.