Local Mayors on economic challenges

VIRGINIA BEACH, Va. - At Regent University's Leadership Series Luncheon, a serving of economic reality was on the menu.

"Thirty-five percent of our 63 square miles is off the tax rolls, most of it federally or state owned property. We have a higher poverty rate than our neighbors, an older housing stock and our unemployment levels are higher than our neighbors," says Norfolk Mayor Paul Fraim.

It leaves little to trim the fat, Fraim told the packed crowd. Norfolk needs $35 million to bridge the gap in next year's budget.

Side-by-side with fellow city mayors, Will Sessoms (VB) and Alan Krasnoff (Ches) the talk turned to shared costs.

"Our cities should consider examining together ways to achieve economies of scale in areas like employee health insurance, which cost Norfolk $17 million this year," said Fraim.

With light rail as a source of potential economic growth, Virginia Beach Mayor Will Sessoms is ready to fight to fulfill a campaign promise.

"Norfolk has paved the way for light rail and we need to embrace that initiative as a region."

Almost half of the gross regional product comes in defense dollars. Military support is key to staying afloat, Sessoms said.

"We need to support the outlying landing field. This is not only imperative for the city and region, but folks, this is about national security."

The cities will soon decide how to spend $40 million in federal money for road projects. Chesapeake's share: $5.5 million, which still needs to be approved, but the plans are there.

"Dealing with repaving, whether it's safety for bridges or highways, or signals," said Chesapeake Mayor Alan Krasnoff.

Mayor Fraim told the crowd the next step for the region is exploring stops on the high speed rail corridor that runs from Washington, to Richmond, to Raleigh. Fraim believes if the area doesn't jump on, the region will stay a cul-de-sac and miss out on an added economic boost to the region.