Mayor’s State of the City Speech

February 1, 2008

Norfolk Waterside Marriott Hotel

12 Noon

Good afternoon.

It’s always an honor to have the opportunity to talk with the city’s business and community leadership about a place we all love – the City of Norfolk, so thank you for being here.

We have a number of military representatives with us today, so I would like to begin by recognizing ADM. Luciano Zappata, Deputy Supreme Allied Commander Transformation, Lt. General Jan Arp, SACT’s Chief of Staff, VADM Mel Williams, Jr., Deputy Commander, U.S. Fleet Forces Command and RADM Ronald Hewitt, Maintenance & Logistics Command, Coast Guard Atlantic Area.

On behalf of a grateful community thanks to you and all of the women and men in uniform for the daily sacrifices you make to keep us safe in an increasingly dangerous world.

2007 was the 400^th anniversary of Jamestown, and Norfolk’s celebration got off to a royal start with a visit in May by Prince Philip, the Duke of Edinburgh, and a brief stop by Queen Elizabeth herself.

This was followed in June by Sail Virginia - organized by Festevents, a Jamestown 400 signature event, that brought 33 tall ships and more than 250,000 people to the city for events that took place from Ocean View to downtown. That’s more than four times the number of visitors reported to have visited Jamestown for its celebration weekend.

Sail Virginia earned six national and international awards including the prestigious 2007 Port of the Year award presented by the American Sail Training Association. So thanks go to Karen Scherberger and her staff on these well-deserved recognitions.

As with all localities in Hampton Roads – Norfolk’s future is tied to that of the region, and someone who’s devoted a career to advancing the value of regionalism is Art Collins, Executive Director of the Hampton Roads Planning District Commission.

During his tenure, Art has helped give birth to the Southeastern Public Service Authority and the Regional Jail Authority, has helped shape a long-range regional transportation plan that is both fair and responsive to its member jurisdictions, and with the General Assembly’s approval last year of the Hampton Roads Transportation Authority, he was named its interim executive director.

After 38 years of service, Art has announced his retirement at the end of April. He will be sorely missed.

No one has fought harder or longer for regional cooperation than Art has, and I would ask you to join me in recognizing his many and important contributions.

When the history of the region is written for the first part of the century, 2007 will be viewed as a turning point for Norfolk and for Hampton Roads.

The creation of the Hampton Roads Transportation Authority and the construction of the approved Norfolk Light Rail line, together with the federally authorized eastward expansion plan of Craney Island, the opening of the APM Terminal in Portsmouth and development of the Heartland Corridor rail line, all reposition Norfolk, the port and the region with major infrastructure improvements in the way we move people and goods that will carry us well into the 21^st century and make our economy more accessible to the entire globe.

When finally developed, this region and this historical port will become the envy of the Commonwealth and the nation.

Beginning April 1^st, the Transportation Authority is scheduled to begin collecting revenue sufficient to start construction of our long-range transportation plan that will allow the region to move ahead with six major transportation projects costing in excess of $9 billion dollars. These projects include an expanded Mid-town Tunnel and a new multi-modal crossing of the harbor that will further bind our region, our workforce and economy together.

And, while the light rail line is for now a Norfolk starter line, the hope is that a future generation will ride on rails that stretch from Williamsburg, under the harbor, by way of the new multi-modal tube of the third crossing, through Norfolk and all the way to the Virginia Beach oceanfront. And, someday link with high speed rail here in downtown by Harbor Park that will travel the entire east coast.

It is all now right before us and achievable.

Despite a slowing national economy and a cooling residential real estate market, the local economy is fundamentally stable and projected to outperform the national economy this year. Anchored by the presence of the US Navy, the military dollar makes up more than 25% of the region’s economy. Defense spending will increase this year, thanks in some measure to our new modeling and simulation industry.

And, of course, the maritime communities’ impact on our economy is significant, strong and improving.

According to an economic development study released last week, the port now contributes $12.3 billion dollars to the region’s economy and employs directly or indirectly 100,000 people with a $4.1 billion dollar payroll. With the expanding global market and the forward thinking leadership at the port these figures will only grow.

For these reasons and more, I am proud to report to you that the state of the city is sound.

Of significant note, is that our population is growing - bucking national and statewide trends for core cities. The U.S. Census Bureau’s revised 2006 estimate counts Norfolk’s population at 238,832 - an increase of over 4,400 people since the 2000 census.

Retail sales posted a nearly 7% increase to $3.1 billion dollars with strong performances along Military Highway and 21^st Street and by the MacArthur Center, which continues to perform beyond expectations.

Our corporate flagship - the Norfolk Southern Corporation - is coming off a great fourth quarter performance and a solid year that saw a 61% increase in its dividend. Congratulations to CEO Wick Moorman.

Norfolk Southern also began work on its $313 million dollar Heartland Corridor project to raise tunnel heights and bridge clearances along its 531 mile route, allowing trains to double stack containers.

This will speed container shipments to Midwest markets by cutting more than 200 miles off existing routes, and make the Port even more attractive to shipping lines.

Out at the Port, strong growth in imports from Asia and an upsurge in export traffic boosted business by 7% for the first six months of the fiscal year, and port officials foresee continued robust growth.

Despite $400 million dollars in capital improvements now in progress at Norfolk International Terminals, the port’s three facilities are projected to reach capacity in the next ten years - or just about the time the first phase of the Craney Island Terminal is scheduled to come on-line.

This $2.2 billion project will ultimately create 54,000 new jobs with a combined annual payroll of $1.7 billion dollars while providing the region a strong measure of economic security.

That made 2007 a busy year for Port Authority executive director Jerry Bridges . . . Jerry is here today with a number of guests so let’s congratulate him on a great first year.

Headquartered in Norfolk and one of the region’s largest employers, Sentara Healthcare has more than 7,000 employees in the city. Last year its heart hospital was again ranked in the nation’s Top 50 Hospitals and for the first time was joined by its kidney program.

Sentara is a strong supporter of the medical school and is in the midst of a five-year, $25 million dollar contribution to EVMS.

In November, Kirk and John Galiani opened Gold’s Gym in the former Spaghetti Warehouse building on Monticello Avenue, investing over $8 million dollars, turning it into a state-of-the-art fitness facility.

Next month, the Galianis and Roseland Development begin construction on a $40 million dollar luxury apartment and retail development called 201 at 21 planned for the old Sear’s property on 21^st Street – while at the western end of 21^st Street, Cooper Realty has proposed a new office and retail center called Ghent Station on nearly five acres that include a five-story office building, three one-story buildings, and a two-level parking deck.

The fast-growing BlackHawk Products Group opened its new $12 million corporate headquarters on 11 acres adjacent to the airport, and the Philadelphia-based firm – Delphinus Engineering – consolidated its regional operations to Norfolk, opening a new facility in Central Business Park.

Demand for office park space remains strong - and pending approval from transportation officials – development will begin on the Lake Wright East Office Park shortly.

Fueled by the energy of projects completed, begun and announced, the momentum of development continues to accelerate.

Dominion Enterprises opened its new $60 million dollar corporate headquarters that’s now filled by nearly 1,200 employees.

The Harbor Heights development is being occupied, so are the 388 Boush Street condominiums.

On Brambleton Avenue, a 160 room Residence Inn by Marriott is being built and a 146 room Hampton Inn will soon be under construction. Together these two hotels represent a total cost of $48 million dollars.

Spearheaded by light rail, the next three years are going to bring more investment to Norfolk than at any time in its modern history.

The Tide adds a new dimension to our planning strategy – Transit Oriented Development – and this is already making its impact felt downtown.

Three developments – Wachovia Center, The Residence Inn by Marriott and The Belmont at Freemason apartments – were all designed with light rail in mind.

The city will also construct a consolidated courthouse building on the light rail line at the civic center complex, and when Main Street is reconnected by light rail, it will link Norfolk State University with downtown and open up the property east of the Berkley Bridge for development.

As for Granby Tower, I am advised that there is still plenty of life in this important project. Marathon Development has recently reached agreement with a large joint venture partner out of the Mid-west. The new partners have also reached agreement in principle with new lenders. Hopefully, Granby Tower will be back under construction soon.

In a matter of months work begins on Wachovia Center – S. L. Nusbaum’s $150 million dollar office, retail and residential development that will strengthen downtown’s role as the region’s pre-eminent business center.

The paper this morning broke the news that the front office of LTD Management Company will move to the Wachovia Center, occupy 25,000 square feet, and bring approximately 80 high paying new jobs to the city. We are excited and proud that this prominent local corporation will call Norfolk home. The Wachovia Center is now 68% pre-leased.

Will our new corporate citizens from LTD please stand.

LTD owns four hotel properties in the city with another under construction. And along with Robinson Development Group and Fulco Development are our new partners in the hotel/conference center project on Main Street which breaks ground later this year.

This team has been working diligently to advance this project, including increasing the room count to accommodate 300 guest rooms. Finally, I am very pleased to say that LTD is finalizing talks with Starwood Hotels to bring the Westin brand to downtown.

The tourism industry employs more than 7,000 people and contributes over $625 million dollars to the city’s economy. Hotel revenues are up for the sixth consecutive year and with the prospect of nearly 600 new hotel rooms downtown and a $32 million renovation to the Sheraton, folks at the Convention Bureau are energized.

A spring groundbreaking is planned for The Belmont at Freemason Apartments on Brambleton Avenue between Duke and Yarmouth, while across Brambleton the luxurious, 20 unit, $25 million dollar, Franklin Condominiums are available for sale.

It’s hard to believe, but 2007 was the 10^th anniversary for the Thomas Moss campus of Tidewater Community College.

In that time enrollment has grown from 2,300 students to nearly 10,000 – a 325% increase.

A few weeks from now TCC will move a staff of almost 200 into its new administration building adjacent to Harbor Heights.

The building will be named for former Vice Mayor Joe Green who served on City Council for nearly 20 years. No one did more to bring TCC to Norfolk than Father Green. This recognition is long overdue, but certainly appropriate. Father Green is with us today. Joe, please stand and be recognized.

TCC also opened its college-wide, Barnes & Noble Bookstore in MacArthur Center, and next up is development of a student center on Granby Street – a $17.6 million dollar investment scheduled to begin construction next year. Thank you Dr. DiCroce.

Since the first TGIF in 1982, Town Point Park has established itself as an attraction in its own right, bringing thousands of visitors downtown and generating tax and parking revenue that more than pays for its cost. Visitor spending in the Park exceeded $27 million dollars in 2007, most of it from out of town guests.

This September, construction begins on the first major renovation in its 25 year history - a renovation funded by both private and public dollars, including assistance from our friends and partners at the Port Authority.

Town Point Park is the only true green space for the hundreds of thousands of people who work, live or visit downtown every year. It is a vital part of downtown’s success and an economic development engine in and of itself with the many festivals and programs that take place there every year.

Following its April opening, the Half Moone Cruise and Celebration Center has won wide acclaim from the cruise industry, and become the hottest ticket in town for special events.

To date it has hosted 24 cruise calls and more than 73,000 passengers. And continues to serve as a mid-Atlantic homeport for Carnival Cruise Lines and Royal Caribbean International.

This year 28 cruise ship calls will bring approximately 100,000 passengers to Norfolk.

Nauticus enjoyed another good year with attendance growing by 14% on the strength of special exhibits made possible through a great partnership with NOAA.

Since its berthing next to Nauticus on December 7, 2000, the USS Wisconsin has become an icon on the downtown waterfront and a visitor magnet.

Now that the Navy has accepted the city’s application for stewardship, work is underway to transfer the battleship to the city, and this is expected to occur in an official ceremony this spring.

Last year in response to rising residential assessments, I stated the council was prepared to make an unprecedented third consecutive reduction in the tax rate, and in May it was lowered by 16 cents to $1.11 per hundred.

Combined with the 5 cents reduction in 2005 and the 8 cents reduction in 2006, the council has lowered the real estate tax rate by a total of 29 cents in three years.

Among Hampton Roads cities, only Virginia Beach – with four times the land mass and three times the assessed value - has lowered its real estate tax more than Norfolk - and that was by only one cent.

While it’s true, real property values grew 16.5% last year, today we are looking at a different picture.

Projections for the coming year are pointing to much slower growth - maybe 3% - and many neighborhoods are seeing flat assessments. This will make for a very difficult set of choices for the fiscal 09 budget.

But there is plenty of good news. In Broad Creek – Hampton Roads first mixed-use, mixed-income community - construction is complete on 400 rental units and 70 homes.

Construction begins this year on Broad Creek Village - a residential and retail development - and on Broad Creek’s final phase of 200 residential units north of Princess Anne Road. And plans for The Salvation Army’s Ray and Joan Kroc Center at Broad Creek continue to progress.

It bears noting that 163 formerly displaced households now live in Broad Creek. That’s 100% of all who indicated a desire to return, and fulfils the promise that all displaced residents would have an opportunity to move back.

The Housing Authority is giving the Grandy Village public housing neighborhood a $41 million dollar makeover, renovating 253 units and adding 11 new duplexes. These are the first Energy-Star certified multi-family buildings in Hampton Roads and mark the start of an aggressive green building program by NRHA.

NRHA placed 108 first time buyers into home ownership and its economic development arm - Hampton Roads Ventures - recently became the first in the nation to use new market tax credits that helped develop ODU’s Springhill Suites Hotel. An additional $50 million dollars in tax credits has been received for use in qualified neighborhoods.

In the East Beach section of Ocean View, sales outperformed the local market with more homes sold and occupied in 2007 than in any prior year.

Lot sales total over $37 million dollars, and the developers’ final payment on the $8.5 million dollar land purchase will be made this year – two years ahead of schedule.

Thanks to $2.5 million dollars in beach erosion funds, East Beach was just named one of the top restored beaches in America by the American Shore and Beach Preservation Association.

Another project moving forward on East Ocean View Avenue is the Bay Village Senior Condominiums - a $15 million dollar development and the first housing exclusively for seniors in Ocean View.

Other residential development included 12 new brick town homes on Church Street. Additional town home construction is planned for property two blocks to the north.

In April, S.L. Nusbaum will break ground on The River House – a luxury apartment community on Haven Creek at the Granby Street Bridge.

When completed, it will strengthen the Riverview Commercial corridor and boost prospects for development of adjoining property in this vital area situated between two desirable and historic neighborhoods.

The City Council continues to be concerned with Wards Corner, but everyone should be encouraged by recent private and public activity and investment.

For example, S. L. Nusbaum has begun site work on the SouthWind Apartments – a $15 million development in Denby Park on property formally occupied by a trailer park - while along Newport Avenue Collins Enterprises begins construction this quarter on an $80 million townhouse/condominium project.

The City’s Development Department is actively engaged with Wards Corner property owners on plans to redevelop their properties, and we are confident of a positive outcome.

Since 2005 the city has invested more than $13 million dollars on the Greater Wards Corner Comprehensive Plan - for purchase of the Fitness and Wellness Center, streetscape improvements, strategic property acquisitions, rehabilitation programming and traffic control improvements.

Police presence has been increased in Denby Park and Monticello Village, and code enforcement activities have been stepped up.

These are all signs of progress, but we know more needs to be done. The Council is determined to revitalize this important part of the city.

Norfolk Public Schools made headlines last fall when Norview High School’s Tommy Smigiel was named the 2008 Virginia Teacher of the Year.

Tommy began teaching at Norview after graduating from ODU in 2000.

He is the first Norfolk teacher to receive this honor in at least 40 years and he is one of four finalists for National Teacher of the Year - Tommy is in Dallas today for a National Teacher of the Year Conference and so could not be with us.

Norview also earned a bronze medal in U. S. News & World Report’s first annual ranking of high schools across the nation - the only South Hampton Roads high school to be recognized - so congratulations to Principal Marjorie Stealey.

Congratulations also go to Taylor Elementary for being named a Blue Ribbon School by the U. S. Department of Education, to J. J. Roberts Dreamkeepers Academy, one of six schools nationwide to earn the distinguished School Change Award from the American Association of School Administrators, and to Meadowbrook’s School of International Studies for earning the Governor’s Award for Educational Excellence.

With a strong mix of local, state and federal dollars, Norfolk spends more on a per pupil basis to educate its children than any other Hampton Roads city – just one measure of our commitment.

This investment is being rewarded with improvements in student academic performance.

Over the last five years we’ve seen a steady decrease in the achievement gap between scores of African American and Caucasian students . . . the graduation rate has improved to 80% . . . and 42 of 49 schools have achieved full accreditation from the state including all elementary and high schools.

2007 also saw the opening of a new Coleman Place Elementary and the near completion of Blair Middle School.

Construction of a new Crossroads Elementary is next in line.

It is, of course, worthwhile to discuss recent scholastic achievements. At the same time, it is important to look back to see how far we have come.

Tomorrow, February 2^nd, marks the 49^th anniversary of the end to massive resistance in the City of Norfolk - a disgraceful period of our past when an equal and integrated education was denied to African-American children. To appropriately recognize the 50^th anniversary of this important moment, in the coming days I will ask City Council to appoint a broad-based citizen panel to begin the planning process.

Thanks to Governor Kaine, Norfolk’s colleges and universities stand to receive more than $224 million dollars in bond financing to build facilities for researchers and for educating and training a 21^st century workforce.

If adopted, Norfolk State University will receive $79 million and Old Dominion University $86 million.

And in an historic first - Eastern Virginia Medical School is slated to receive $59 million dollars to construct a new education and research facility - its first new education building in 30 years.

The Medical School is the heart of our health care industry, and last year its Office of Graduate Medical Education which oversees residency programs received a five-year accreditation – a singular achievement.

The primary role of EVMS is educating and training new physicians. A physician shortage already exists, and to meet the projected future demand, medical schools nationally will need to increase enrollments by 30%.

Without the medical school, health care in Hampton Roads would be more expensive, harder to obtain and the region less attractive for development. The school also contributes $700 million dollars to our economy.

As you may know, the $59 million dollars the Governor has placed in the bond package is amazingly under attack by some in the General Assembly over concern by the School’s failure to be named a state agency. This can be remedied. Everyone here needs to get involved and rise to the support of EVMS.

Our friends at Norfolk State University – ably led by President Carolyn Meyers - celebrated the opening of the RISE Center, now named the McDemmond Center for Applied Research, and began offering the state’s only PhD in Materials Science and Engineering.

It also hosted “America’s 400^th Anniversary: Voices from Within the Veil” – an international conference on the founding of Jamestown.

And all of us cheered as Norfolk State’s football team turned in its first winning season since moving up to Division I in 1997.

Coach Pete Adrian led the Spartans to an 8 and 3 record – the most wins since 1984.

For this achievement, he was named MEAC Football Coach of the Year – a Norfolk State first.

Coach Adrian is here today and I’d ask you to join me in congratulating him on a terrific season.

With more than 22,000 students, Old Dominion University is the largest four-year institution of higher education in Hampton Roads, and its campus continues to grow with projects representing an investment of more then $400 million dollars in academics, athletics and student housing.

So much has been happening – from the opening of a new bookstore and the first building at Innovation Research Park to new sports facilities, dorms and a new hotel – and so much is planned for the future, that we could spend all afternoon talking about ODU alone.

The most surprising development, however, came last month when ODU president Roseann Runte announced she will leave the university in July to take a similar position in Canada.

Dr. Runte’s tenure is marked by numerous accomplishments including growth in enrollment and academic achievement, an expanded campus, an increase in research expenditures that’s put ODU on track to become one of the nations top 100 research universities, and a capital campaign she began that to date has raised more than $100 million dollars.

Dr. Runte is here and I’d ask you to join me in recognizing the many important contributions she has made to Old Dominion University.

For some of us, however, Dr. Runte’s most exciting achievement might be bringing football to ODU.

We’re pleased that head football coach Bobby Wilder could be with us today and Coach – why don’t you stand so we can recognize you and tell you how much we’re looking forward to the team’s kickoff in the 2009 season.

Under the leadership of its president, Dr. Billy Greer, Virginia Wesleyan College has set a goal of becoming the greenest campus in America. Dr. Greer was recently elected to the board of the prestigious National Association of Independent Colleges and Universities – so congratulations to Dr. Greer on this high recognition.

We are truly blessed with two major universities, an expanding community college, a thriving Virginia Wesleyan and a medical school. As we compete with other regions for tomorrow’s high skilled jobs, it is vitally important that we increase the number of college graduates living here. The most important commodity in the future will not be oil or even water -- it will be talent . . . the sort of talent developed by our institutions of higher education and they deserve our complete support.

No other city in the State offers the quality, number and variety of arts organizations that call Norfolk home, and has earned us the title of the Cultural Capital of the Commonwealth.

Our cultural flagship is the Chrysler Museum and it remains one of the top 25 art museums in the country with its masterpieces eagerly sought after by the world’s leading museums.

The nationally acclaimed Virginia Symphony is one of just four orchestras in the country to be recognized by the American Symphony Orchestra League for Excellence in Community Engagement.

Beyond its renowned world premiers and internationally praised productions, the Virginia Opera is recognized by Opera America for its Education and Outreach Program that reaches more students than any other opera company in the country.

And at a time when the national trend is going the other way, the Virginia Stage Company is experiencing a remarkable turnaround on the strength of its production quality.

The Virginia Arts Festival - hailed by The Washington Post as “the Tanglewood of Tidewater” - continues to bring top-notch performers to Hampton Roads as well as ever-increasing audiences from across the country.

Now established as one of the premier events in the nation, the Arts Festival’s signature event – the Virginia International Tattoo – was selected for the third time as one of the “Top 100 Events in America.”

Along with these statewide stars, support from the Norfolk Arts Commission has led to an impressive constellation of regional organizations that now call Norfolk home.

The d’Art Center, the Generic Theatre, the Attucks Theatre, Todd Rosenlieb Dance, the Hurrah Players, the Southeastern Virginia Arts Association, Virginia Ballet, the Virginia Children’s Chorus and more offer a rich and diverse assortment of performances and exhibitions to suit every taste.

Our investment in the arts continues to bring dividends to the City, drawing residents, visitors and businesses . . . filling our restaurants and hotels . . . and reaching out to neighborhoods and schools.

Continuing the MacArthur Memorial’s 43 year record of excellence, the General Douglas MacArthur Foundation and the city will embark on a modernization and expansion project vital for preserving and presenting the story of the General’s life and legacy and of the men and women who’ve served in the Armed Forces.

Thanks in large measure to Frank Batten, the Virginia Zoo achieved its fundraising goal for the next phase of its master plan – the Trail of the Tiger – and with help from the Norfolk Southern broke ground for a Zoo train that will be ready this May to take visitors on guided tours.

The birth of two lion cubs – Neka and Granby - along with other new zoo residents like the escape artist, Yin the red panda, and Hercules the camel helped boost a 67% increase in Zoo memberships and a 26% increase in attendance to over 385,000.

On the strength of its new $6.2 million World of Wonders Children’s Garden the Botanical Garden has experienced significant growth in visitors and new memberships, so thanks to Don Buma, Dana Parker and the Board of Trustees for this great addition.

The Garden will celebrate its 70^th anniversary this year with the dedication of a new garden honoring the more than 220 African American women and men who cleared the land and planted the azalea’s that established the Botanical Garden.

The city’s recreational opportunities will be enhanced by a new $8 million recreation center for Norview that’s on track for a fall opening, a $7.6 million center for Lambert’s Point – the first such facility on the city’s west side - that begins construction this summer, a $6 million dollar indoor aquatics center on the Southside and a new skateboard park.

On March 13^th our public library system embarks on an important period of change when the new Mary D. Pretlow anchor branch library opens in Ocean View, and everyone is invited to attend the ribbon cutting.

Later in the year Kirn Memorial Library will be demolished to make room for light rail. Until a new main library is built, the services at Kirn will be housed in the former city hall building located at Atlantic and Plume Streets which City Council purchased for $7.2 million, thus ensuring the preservation of this registered historic landmark.

Here with us today are representatives of our public safety agencies.

Their duties encompass law enforcement, criminal prosecution, incarceration, fire and paramedical services and emergency operations. Their consistently high performance – often in dangerous situations - is a reflection on both their dedication and their training.

A compelling example of these qualities is seen in the heroic actions of police Investigator C.J. Scallon who was awarded the Police Department’s Medal of Honor for interrupting an armed robbery in progress at the Ward’s Corner Shell station.

Without regard for his own safety, and with no indication help was on the way, Investigator Scallon pursued and disabled the suspect after an exchange of gunfire.

Investigator Scallon is here today and I would ask him to stand so we can recognize his bravery and professionalism.

Public safety remains a top priority for City Council and this is reflected in the most recent figures available that show Norfolk ranking first in the region in per capita spending on police.

And we are getting results. Total crime fell again in 2007 continuing a five year trend that has seen a 20% reduction in crime since 2002.

But funding alone is not enough. How those resources are invested is equally important.

Three of four people murdered in the city last year were shot to death. We must target our efforts to reduce gun violence by taking illegal guns - and the people who use them - off the streets of Norfolk.

A great deal of crime is symptomatic of deeper issues that affect some neighborhoods more than others.

This is a problem that deserves to have the best minds available applied to it, and one that calls for more than police action.

Last year the city took a step in this direction with the establishment of the Office of Community Empowerment.

A major program in support of this effort is Project Focus, an initiative that is concentrating on the neighborhoods of Denby Park, Olde Huntersville and the Pleasant Avenue corridor of East Ocean View using increased police enforcement, video surveillance, aggressive code enforcement and other actions to reduce crime and strengthen community involvement.

Two years into our 10 year plan to end homelessness, real and meaningful progress continues to be made.

The results: a 25% decrease in the number of people reported homeless - or 168 people who have left the streets for permanent housing - and a nearly 40% reduction in the number of chronically homeless.

The path off the streets for those who experience long-term homelessness is permanent supportive housing. By next fall we will have more than doubled this critical resource from 134 units to over 300.

We all understand homelessness is a regional problem and our partners in the region are coming together to solve this crisis.

Virginia Beach has adopted a 10 year plan and will open the nation’s second regional housing project for the homeless.

Portsmouth has contributed financially to both Norfolk and Virginia Beach’s housing projects and will host next week’s regional conference on ending homelessness.

On the Peninsula, a regional approach to ending homelessness is now being studied.

And the private sector is stepping up to support our efforts.

In December, the Landmark Communications Foundation made a $318,000 donation to three homeless service providers in the city. This was followed by a $1.5 million donation from The Dragas Companies of Virginia Beach.

$500,000 dollars of that amount will come to Norfolk, and helps us exceed the $1.6 million dollar goal set for our homeless initiative.

Helen Dragas kindly accepted our invitation to attend today’s event, and I ask you to join me in acknowledging her generous support.

The City is a living, breathing entity, constantly in motion, ever changing.

Each year brings new challenges - last year it was the closing of the Ford Plant. This year was only days old when we learned that an old trusted friend, Landmark, was in the process of selling itself - all of itself - including the Virginian-Pilot.

And, while change is certain, nothing is inevitable. Let’s hope for the good of the community at-large that some form of local ownership will remain to carry on the great tradition of community support and integrity that have been the hallmark of our paper for so long.

One thing that is changing for the better is the maturing relationship between Norfolk and our sister cities – especially Virginia Beach and Portsmouth. We share a common destiny and we are now acting like it. Whether it’s the homeless, second hand smoke, tourism or water distribution, both Virginia Beach and Portsmouth are providing real leadership on issues that matter to all of us. None is more clearly evidenced than by their support of regional transportation matters. The truth is our relationships have never been better.

Today we are honored to have with us the mayor and vice mayor of Virginia Beach, Meyera Oberndorf and Louis Jones, and the mayor and mayor of Portsmouth, Jim Holley.

Please join me in expressing our appreciation for their important leadership.

Now, more than any time in its history, Norfolk’s future – and the region’s future - is linked to the global economy, and this is changing our community even as we watch.

Our population is growing increasingly diverse.

At last count 27 countries operate 162 businesses here.

75 international shipping lines from 250 countries now call on the port – our gateway to the world.

Our colleges and universities attract students from around the world, and our researchers are making important contributions to the international community in medicine, science and modeling and simulation.

Our cultural organizations routinely conduct their business on the international level.

We have the assets necessary to compete and thrive in the global economy

The challenge - for us and for leaders throughout the region – is to focus on building relationships and working together on issues regional in scope for the greater good of all our citizens.

But, in doing so we will not forget those citizens whose special needs require our assistance so that all of us move forward together.

The Governor’s proposal to increase funding for mental health will help a great deal. Also, more effective ways must be found - including early childhood education that starts at infancy - to reach young people trapped in an environment with a downward spiral.

They must be shown there is hope for a better and happier life . . . that staying in school, studying hard and resisting the powerful lure of the street is rewarded with the freedom that comes from hard work and a job.

Fifty years ago, downtown had been nearly demolished by urban renewal. Fifty years ago, Jim Crow and massive resistance made us two cities, separate and unequal. That Norfolk is gone forever.

In its place is a revitalized downtown and new and revitalized neighborhoods. Today we are a people of many ethnic and racial backgrounds living together, comfortable with, and building on our diversity - committed to working together for a better city.

There will always be more to do and more that can be done better, but this should inspire us to look to the future with confidence that we are all moving forward together in a direction that enjoys broad and deep support.

My friends, your enthusiasm for this old seaport town, your numerous and important contributions to its progress, and the strength of your commitment, continue to energize me and my fellow members of City Council and that makes it a privilege to serve you.

Thank you for being here today, and thank you for all you are doing to build a brighter future for ourselves and our children. We have a lot to do - let’s go to work!

God bless you and God bless the City of Norfolk.