Neighborhood homes bulldozed

VIRGINIA BEACH, Va. (WAVY) - Residential homes were bulldozed to have new homes rebuilt in the Oceana section of Virginia Beach using millions of taxpayer dollars.

Gatewood Park is a neighborhood next to NAS Oceana, located in an Accident Potential Zone, or APZ-1, one of the loudest and most dangerous areas around the base.

Base Realignment and Closure Commission (BRAC) wanted to close down Oceana in part because of the density of too many people living too close to the base. The BRAC Commission ordered Virginia Beach and the State of Virginia to "halt the encroaching developments that are pending...and also to roll back the encroach that has already occurred."

William Hughes lived in Gatewood Park since 1963.

"As far as what BRAC wanted, they ain't doing nothing. It's the same density. They ain't doing nothing," said Hughes.

To save Oceana, Virginia Beach and Virginia agreed to spend $15 million per year to buy back property to reduce density. It ended up that a single family home was taken down to put up another one.

In Gatewood Park, taxpayer money is being used to buy homes, then sell them to a few developers who tear down the homes and build larger ones.

Virginia Beach City Attorney Becky Kubin oversees the Oceana Encroachment Plan. WAVY.com asked, "You aren't reducing density, and that was the whole goal of BRAC?" Kubin responded, "You can't look at it in a microscope or under one block in one neighborhood."

On December 20, 2005, Virginia Beach approved zoning changes that prohibited duplexes, which reduces potential density. Kubin pointed to three lots in Oceana Gardens once zoned for eight units. Now, it's back to two single-family homes. There is also Oceana Gardens Park, which could have had five duplexes, but the city - through zoning - has made it a park forever. Kubin said, "Overall it's a very successful program and a huge amount of rollback."

Virginia Beach bought 22 lots, many with homes for $5,178,969 with taxpayer dollars. The City then turned around and resold the land to three developers for only $868,500. Taxpayers got back about 17 cents on the dollar. "We are spending this money to save an economic engine which is the base. That is the goal of this program, and we can't lose sight of that goal," said Kubin.

Kubin explained the City bought when the market was high, and sold during the housing market crash, which was bad timing. Kubin also said the City had to pay extra for potential development that would never be realized due to the zoning changes.

"Overall in the entire program and you are looking at a small part of it, we are on average paying $99,000 per developed unit. We are selling for just under $50,000 per vacant lot," said Kubin. With those numbers, taxpayers are losing half of the money. "We are getting a new noise attenuated home. We are putting deed restrictions on the property that prevent any new units form going in ever," said Kubin.

Adam King, who was walking in Gatewood Park, said it bothers him that they are selling the land cheaply to three developers. He wanted to know how he can get in on the action.

"There's not a for sale sign here. Where do you go to acquire these properties from the city? It's a buddy line. Where's the buddy line? Who is acquiring these properties, and at what price are they acquiring them?" said King.

Kubin responded with, "There is no buddy line. These are open for public sale. They are posted. They have a phone number on the posted site. They are advertised in the newspaper," Kubin explained.

However, only three developers bought the 22 lots - Murray Homes, Ocean Bay Homes, and Cashvan.

Kubin supported the City selling to the three. "They were willing to take a risk on the first one." Is it really a risk? The three developers are getting the land 17 cents on the dollar. "We're not losing the money because we can not achieve the rollback without buying the homes and tearing them down."

In fairness to Virginia Beach, leaving empty lots after purchasing them isn't always what the neighbors wanted. Mr. Hughes had an empty lot. He said, "No question, in my world I'd rather have a house."

Virginia Beach said it doesn't want to "Swiss Cheese" the neighborhood, which is leaving empty lots next to homes. It will also cost the city about $630 per year to maintain the empty lot which would be owned by the City.

In the end, Virginia Beach said it may not be perfect, but the city is spending taxpayer money to save Oceana, an economic engine in Hampton Roads.