Mayor Paul D.

Fraim
2016 State of the City Address
Friday, March 17, 2016

Good afternoon, and thank you for the warm welcome.

I want to thank Bryan Stevens and everyone at the Chamber of Commerce

for hosting this event.

Norfolk offers a lifestyle and amenities that are attracting new residents and
businesses who are transforming our city into a vibrant, resilient coastal
community.

None of this would be possible without the support of our citizens . . . the
business community . . . our colleges and universities . . . our military partners and
so many other people and organizations.

Norfolk is moving in a direction that enjoys broad support, and the city
council joins me in thanking you for all you are doing to make our city a better
place to live, work and play.

Were pleased to have some distinguished military guests with us today:

French General Denis Mercier, NATOs Supreme Allied Commander
Transformation, and German Admiral Manfred Nielson are here. On April
1st Admiral Nielson will begin serving as NATOs Deputy Supreme Allied
Commander Transformation. Welcome to Norfolk Admiral.
Admiral Phil Davidson, Commander, US Fleet Forces Command, and
Rear Admiral Jack Scorby, Jr., Commander, Navy Region Mid-Atlantic.
Thank you all for being here.
Also, a good friend, retired Admiral John C. Harvey, Jr., Virginias Secretary
of Veterans and Defense Affairs is here. Admiral, good to have you with us.

We are proud of Norfolks historic role in defending the nation, and of our
strong bond with the military. Memorials on the downtown waterfront attest to this
heritage, and remind us of the sacrifices made by active duty military members and
their families in defending our country.

We deeply appreciate their service abroad and here at home.

Next year marks the 100th anniversary of Naval Station Norfolk. Founded in
1917 on the grounds of the 1907 Jamestown Exposition, the base grew to become
the worlds largest naval station and a highly valued member of the Norfolk family.

We look forward to an exciting centennial celebration.

And the Lieutenant Governor, our own Ralph Northam is in the house.
Thanks Ralph.

As well as our good friend Congressman Bobby Scott.

We are also honored to have with us ODU President John Broderick,

Virginia Wesleyan President Scott Miller and TCC President Edna BaehreKolovani.

I am also glad to have two of my fellow mayors Will Sessoms and Kenny
Wright. Good luck on your re-election efforts guys.

***

Last months cold snap triggered an outbreak of fires across the region, but
none approaching the magnitude of the February 13th four-alarm fire in
Willoughby that damaged 14 buildings and destroyed 8.

For over 12 hours, more than 60 Fire Rescue personnel battled windwhipped flames and bitterly cold temperatures before extinguishing the blaze.
Miraculously, no lives were lost.

Norfolk Fire Rescue personnel turned in a heroic performance fighting what

Chief Jeff Wise described as one of the worst fires hes seen in his 37 years of
service.
In support, our regional allies came to our aid.

We are grateful for the assistance Navy Region Mid-Atlantics federal

firefighters provided at the fire . . . for Virginia Beach and Chesapeake, who sent
firefighters to backfill Norfolk stations . . . the cities of Hampton and Suffolk who
assisted in investigating the fires cause and origin . . .

HRT, who, after one phone call, sent buses for firefighters and residents to
use as warming stations, and the Red Cross and City staff who opened a nearby
recreation center for displaced residents.
This was a great example of regional planning and cooperation.

Chief Wise is here. Please join me in thanking him and all the first
responders for their great work.

***

Norfolk is Virginias gateway for global trade . . . home to the worlds largest
naval base, the North American headquarters for NATO . . . and the business,
financial, educational, cultural, and medical center of the region.

Recent news of several major developments coming to the city will reinforce
our position as the dynamic urban center of Hampton Roads.

First was Tuesdays formal announcement of plans by Fortune 251 company

Automatic Data Processing to open an office and bring nearly 2000 jobs to Norfolk
with an approximate $90,000,000 payroll.
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ADP is a global corporation specializing in business outsourcing solutions.

They are one of the worlds most innovative, diverse and admired companies.
With over 56,000 employees, ADP serves 620,000 customers in 125 countries.

They will occupy all 375,000 square feet in the 2 Commercial Place office
building purchased by developer, Buddy Gadams, as part of a larger project called
City Walk.

This is the largest number of jobs to come to the region in well over a
generation, and is estimated to have a total annual economic impact of nearly $495
million dollars. Employees should start arriving by next fall.

This took true teamwork. Governor McAuliffe was instrumental. The entire
city council supplied policy direction and support. The effort was led by city
manager Marcus Jones and his administration with legal advice provided by city
attorney Bernard Pishko.

Please join me in thanking all of them for such great work.

Thanks also go to HREDA, the Chamber of Commerce, the Greater Norfolk

Corporation, the Downtown Norfolk Council, Festevents and many others for their
involvement and support.

At the heart of all of this was Buddy Gadams and his team working to secure
a lease that worked for ADP.

Please give them all a round of applause.

This total effort was a validation of years and years of public and private
partnerships working to build an authentic urban core and an economic engine that
would pay dividends for the whole city of Norfolk.

As a result, the entire office market has significantly tightened, setting the
stage for future development, future economic growth, and more job creation.

Central to this was Buddys announcement of his plan to purchase the 24story Bank of America building and redevelop it into Icon at City Walk - with 275
luxury-sized apartments.

With dramatic views of the Elizabeth River, a ground floor restaurant, pool
and spa fitness facility, Icon will offer a style of apartment living unlike anything
else in Hampton Roads.

This $100 million dollar investment will bring 500 more residents to the
business district, and boost the number of people living downtown to well over
6,000.

Right on time, and set to open in March of next year, is The Main a 22story Hilton Hotel and The Exchange, a 105,000 square foot, state-of-the-art
conference center. With a modern design symbolic of downtowns renaissance,
and numerous guest amenities, The Main is going to be a transformational
development that will allow us to attract more and larger conferences.

The project created 700 construction jobs, and it will add 500 new jobs when
it opens.
More good news.

Work on the Waterside District is on track for an April 2017 opening. The
property is 90% leased with tenant announcements set to be made next month. We
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already know about Star Hill Brew Pub. The development will create nearly 1,000
full and part-time jobs. Taylor Gray and Jennifer Carter from The Cordish
Companies are here. Welcome to Norfolk.

Together, ADP, the Main, Waterside District, and Icon at City Walk will be a
game changer for downtown. They will dramatically enhance downtowns
vibrancy, and help boost and diversify the economy creating more investment
opportunities.

The scope of what Buddy has accomplished over the past several years is
amazing. Almost single-handedly, he has created a neighborhood in the middle of
downtown with a total investment over $300 million dollars. That includes
finished work and properties under development or construction. Buddy is also
here.

Marathon Development now leases 650 apartments downtown, that are 97%
occupied. There are another 545 units coming online in the next two years.

Buddy is driving the boom in downtown residential living, and his street
level retail is 100 percent leased.
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***

Less than 2 hours ago, Governor McAuliffe, the City of Norfolk and
Movement Mortgage, one of the nations fastest growing mortgage companies,
announced it will relocate 650 jobs from within the region and add another 200
new jobs to the former J. C. Penney building at Military Circle.

Movement Mortgage was co-founded in 2008 by Toby Harris and retired

NFL player Casey Crawford. In 2014, the company generated more than $214
million dollars in revenue and originated loans totaling more than $8 billion
dollars.

Movement Mortgage will bring new energy to the Military Highway

corridor . . . set the tone for the future redevelopment of Military Circle . . . and
help us attract additional new development. Toby Harris is here. Please welcome
him to Norfolk.

In early May, Simon Property Group will break ground on Norfolk Premium
Outlets at the former Lake Wright Golf Course. This $75 million dollar project
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will create 500 construction jobs and 800 full and part-time jobs. It is the most
important regional retail destination since MacArthur Center, projected to generate
upwards of $3 million dollars in annual tax revenue.

Norfolk based SL Nusbaum Realty was instrumental in making this project a

reality. Please join me in thanking them.

Youll be shopping at the premium outlets by next summer.

We are also a railroad town. Since 1982, Norfolk has proudly served as
headquarters for Norfolk Southern Corporation, the nations premiere railroad.
Over the years, NS has been one of the citys strongest partners. They consistently
and generously support the arts. Its employees serve on city and non-profit boards.
They volunteer in the community.

And just yesterday, Governor McAuliffe, Norfolk Southern and the City of
Norfolk announced that Norfolk Southern is investing $8.2 million dollars in its
headquarters here to accommodate 165 new employees downtown. I want to thank
Norfolk Southern for all it does for us, and extend a warm welcome to the new
employees who bring with them an additional $20,000,000 payroll package. This
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solidifies Norfolks role as home to our flagship corporate citizen. Thank you
Norfolk Southern for your vote of confidence.

I also want to congratulate Wick Moorman who retired as executive

chairman of the NS board of directors at the end of the year. Wick was succeeded
by NS president and CEO Jim Squires. Mr. Squires is the latest in a long line of
great leaders at NS with a fighting spirit who will maintain the independence of
our railroad. Jim, thanks for the great job you and your team are doing.

The over 5,000 jobs ADP, Movement Mortgage, Simon, Cordish, Gold Key
PHR, and NS are bringing to the city is far and away the most important economic
development achievement in more than a generation. Why they chose Norfolk
should encourage us all. They cited our wired and skilled workforce; nearby
colleges and universities; a variety of housing options; a growing creative
community; a pro-business environment; the arts; light rail; bike paths; and a
vibrant, walkable downtown.

All are qualities this council and others before it worked so hard to achieve
in striving to build a 21st century city. Decades of work are now being rewarded as
businesses and residents discover the new Norfolk.
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***

I also need to add that our colleges and universities are adding real value to
our economic development efforts. For Instance, Old Dominion University ranks
second in Virginia in producing STEM-H degrees.

The Governor and General Assembly recognized this effort with their
decision to fund construction of a $71 million dollar chemistry building and
authorized planning of a $74 million dollar Health Sciences building. These
facilities represent ODUs unwavering commitment to bolster our economy and
bring high-paying, private-sector jobs to our region.

Likewise, Norfolk State Universitys selection by the federal

government as the lead institution for a cybersecurity education and workforce
pipeline initiative will also contribute to business development and job growth in
this ever more critical field.

****

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Last year, our newest public buildings - Slover Library and the consolidated
courthouse opened to widespread acclaim.

One of the goals for the Slover was to make it a destination, a place people
of all ages would want to visit and experience often. This has been achieved by
offering areas and activities for children, teens and adults.

The linking of Slovers modern building to the historic city hall and post
office building expresses a philosophy of preserving the best of the past while
building the future. This led the American Institute of Architects and the American
Library Association to select Slover for the prestigious 2015 Library Building
Award.

The library was also a factor in persuading ADP to locate downtown.

Construction on Phase II of the courthouse is on track for completion next

March. It includes a makeover of the civic center plaza, and brings Main Street
across St. Pauls Boulevard.

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From Main Street to Olney Road, the Granby Street corridor is being
energized by the renovation of the former Union Mission, the historic Virginia
Club building, the Tazewell Hotel, and more, and by the addition of 15 new
businesses and restaurants that have opened or are preparing to open.

The Downtown Norfolk Council is contributing to this activity with its

Vibrant Spaces program, which provides grants to new and existing businesses that
create street-level vitality. Following Decembers round of awards, three new
businesses - Lamias Crepes, Muddy Paws pet store and Prince Ink Company
moved to the 400 block of Granby Street.

Grants made to existing businesses include Brick Anchor Brew House

where brothers Phil and Glen Smith invested $2.1 million dollars in a first-class
renovation of the former Jack Quinns. It just opened last Friday, and it is a great
addition to downtown. Please welcome Phil, who is here.

And its about time we thanked Sture Sigfred, Barbara Zoby and Ronnie
Zoby for their many years of investment in downtown. Their latest and perhaps
best effort is Leones, their sixth restaurant, which should open this summer a
$2,000,000 project with rooftop dining.
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Thank you for your confidence in Norfolk.

In the emerging Chelsea district, The Birch, which opened in 2011, serves
quality rare and exotic beers, and was just rated the 5th best beer bar in America by
USA Today. We are very proud of all of Chelsea.

The arts district or NEON District as its now called - sprang to life last
year with dazzling wall murals and the addition of two new arts venues Work
Release and Glass Wheel Studio.

Work Release is a multipurpose exhibition and events space in the historic

Texaco building on Granby developed by Brother Rutter.
Glass Wheel Studio developed by the Patricia and Douglas Perry
foundation, located on Olney Road is a contemporary art studio with two rotating
galleries and a studio artist program. The Perrys are not able to be with us today,
but Brother Rutter is please help me thank them for their investment in Norfolk.

Following its move to the Duke Grace building, the DArt Center now calls
the NEON District home. DArt, Work Release, Glass Wheel, the Chrysler
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Museum with its Perry Glass Studio, and the Harrison Opera House give the
NEON six strong anchors to grow from.
It will have seven once work is complete on Phase II of the Hugh R. Copeland
Center a second classroom and theater building for the Hurrah Players.

For more than 30 years, Hugh has used the theater to provide students with
an enriching educational experience. The Hurrah Players enduring popularity
attests to Hughs talent, so Hugh, thank you for all you do for our youth.
***

Led by the Chrysler Museum Norfolk is the cultural capital of the

Commonwealth. The Virginia Symphony, Virginia Arts Festival, Virginia Opera,
and Virginia Stage Company are nationally recognized.

Our colleges and universities along with numerous other arts organizations
all contribute to the abundant cultural opportunities.

This season marks Maestro JoAnn Fallettas 25th anniversary with the
Symphony. Under her baton, the Symphony has become one of the finest

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orchestral groups in the country, and Todd Rosenlieb Dance is celebrating 10 years
on Granby Street.

The Virginia Arts Festival is celebrating its 20th anniversary, Rob Cross and
company have lined up a blockbuster season featuring performances by Yo Yo Ma,
the Alvin Ailey Dance Company, and of course, the Virginia International Tattoo,
named by the American Bus Association as the top U.S. event of North Americas
100 Best Events for 2016.

The Tattoo will also feature the first American Pipe Band Championship.
Three hundred pipers in eight bands from Canada, the United Kingdom and the
U.S. - and ranking among the best in the world - will compete for top honors at
Scope. It will be the biggest gathering of pipe bands in U.S. history.

The arts are vital to Norfolk. They distinguish us for their high quality while
improving our economy.

In a city as diverse as ours, with so many differing points of view, the arts,
including public art, help bring us together. We can all agree about our love of

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beauty and the arts provide this in our lives and in the public realm. It works to
unify us.

More than any community in Hampton Roads or the Commonwealth, we

support the arts and are proud to do so. They deserve our support both public and
private.and for good reason.

What would warm weather be without Festevents and its waterfront festivals
led by Harborfest - the longest running free maritime festival in the nation. This
year, Harborfest celebrates its 40th anniversary with three days of tall ships, music,
family fun and a spectacular fireworks show.

Festevents has been an essential ingredient in downtowns revitalization, and

in Norfolk, becoming a regional entertainment destination. For more than 30
years, Karen Scherberger and her talented staff have produced award-winning
waterfront events in downtown and in Ocean View, bringing millions of people to
Norfolk. To Karen and everyone at Festevents, thank you for all you have done
and continue to do for us.

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I also want to thank Mary Miller and the folks at the Downtown Norfolk
Council for their solid stewardship of all things downtown, and for giving us a
great family tradition with the Grand Illumination Parade. DNCs First Fridays
have also become very popular events. In a throwback to yesteryear, the 2016
series kick-off on April 1st will debut the return of streetlight arches on Granby.

****
With more than 500 animals, four continents, eight gardens and a halfmillion visitors a year, the Virginia Zoo is a world-class attraction and a great place
for families. This year the Zoo will be celebrating its 115th anniversary with a
variety of events including the return of Zoo to Do, a capital campaign for a reptile
house, and the opening of The Animal Wellness Campus.

****
The Botanical Garden has developed a national reputation for excellence.
They are now hosting Lantern Asia. 36 works of art some four stories tall and
highlighting traditional Asian themes. Whether seen during the day, or illuminated
at night, this is a spectacular exhibition.

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More than a quarter-million visitors explored Nauticus and the Battleship

Wisconsin last year. Nauticus emphasis on environmental education led to awards
for its Junior Scientists Club and for its partnership with the Elizabeth River
Project.
Last year, the city welcomed the return of Carnival Cruise Lines as
passengers from across the mid-Atlantic boarded ships bound for the Bahamas and
Bermuda. Overall, nearly 38,000 cruise ship passengers, and 14,000 crewmembers
visited Downtown Norfolk in 2015.

This year, our schedule continues to grow, in fact, we are double-booked for
a day in October, with a ship at Half Moone and another at Lamberts Point. Well
roll out the red carpet for more than 44,000 passengers and 14,000 crew in 2016,
creating an enormous economic impact.
****
To strengthen our citys long-term financial sustainability, the council
adopted policies that have structurally balanced the budget and fully funded the
Economic Downturn and Risk Management reserves.

We finished the fiscal year with an $8 million dollar surplus, and our present
operating budget, largely because of efficiencies, is less than it was six years ago.
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For the third straight year, real estate assessments will see an increase, and
are projected to increase next year. Over the last 20 years, assessments citywide
have grown from $7.8 billion dollars to $18.2 billion dollars a strong sign of a
growing and resilient tax base.

Its remarkable when you consider this growth occurred during the great
recession in a city that was already 95% developed.

Our population grew again last year, now standing at over 247,000. It has
increased every year for the past 5 years - long enough to declare this a trend.

Even more encouraging, our population is getting younger nearly one-third

of our residents are millennials.

At last count, there are more than 203,000 jobs in the city with over 5,000
more on the way, and we continue to have the regions highest average weekly
wage.
The unemployment rate of 5.2% is 3.3 percentage points lower than five
years ago great news.
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The strength of our on-line business communities, together with efforts to

improve broadband access for residents and businesses to be wired and wireless,
was recognized by internet technology giant Google, which named Norfolk as
Virginias eCity.

****

Last fall, Norfolk welcomed a new corporate citizen the CDI Corporation.
CDI provides engineering, IT and staffing solutions in a range of industries,
including the defense industry.

Following a half-million dollar renovation of its building in Norfolk

Industrial Park, CDI opened last fall bringing 200 high quality jobs to the city.
Scott Cummings, CDI Director of Engineering and Government Services, is here
with us. Please join me in welcoming him and all CDI employees to Norfolk.

Sentaras recent announcement that construction is set to begin on a $199

million dollar expansion at Norfolk General Hospital is great news for the regions
health care.

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Three floors will be added to the Kaufman and River Pavilion wings, 18
operating rooms will be expanded and modernized, and the emergency department
will be expanded.

Sentara Norfolk General has been ranked two years in row by U. S. News
and World Report as Virginias best hospital. In the past 18 months, patients from
28 states, Puerto Rico, Canada, Germany and other countries have traveled to
Sentara Norfolk General for cardiac, cancer, neurology and urology care, making it
a Mid-Atlantic and international destination for advanced medical treatment.

And in less than a week, the ribbon will be cut on the final phase of Sentara
Leigh Hospitals $120 million dollar renovation.
****

Colonnas Shipyard located in Berkley - is the oldest family-owned and

operated private shipyard in the nation. It recently announced plans to invest $30
million dollars to expand its operations with a larger dry dock, and to add 51 new
jobs.

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Colonnas has called Norfolk home since 1875, and last year celebrated its
140th year. Congratulations to everyone at Colonnas. Karen Colonna is with us
today.

Under the steady hand of its executive director and CEO John Reinhart, the
Port of Virginia roared back to profitability in 2015, handling nearly 20 million
tons of cargo valued at $60 billion dollars a record year that made the port the
fifth largest in the nation. And they are on track to have another record breaking
year.

According to a 2014 study, the port generates more than $60 billion dollars
in spending, 7% of the states GDP and provides more than 374,000 jobs. Thats
9.5% of the states employment.

To prepare for even larger ships, the port and Army Corps of Engineers are
evaluating dredging the channels deeper than 50 feet.

When combined with $31 million dollars in improvements underway at NIT,

this will allow the port to market the deepest channels and most modern terminals
on the East Coast.
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In an effort to stimulate greater export activity, the city established the

Global Initiatives Fund, offering direct access to capital for businesses looking to
enter or expand into the global marketplace.

The goal is to create more companies like Sorrentino Mariani, an

international firm founded more than 20 years ago by Rick and Felicia Mariani.

The Marianis manufacture high quality furniture thats shipped worldwide.

The majority of their 60-person workforce lives in Norfolk. The company also
works with the Second Chances program to hire ex-offenders.

Sorrentino Mariani is in a growth mode, and plans to invest up to $4 million

dollars for an expansion in the Douglas Park area, and add an additional 50 to 60
new jobs.

Rick and Felicia are with us, and today just happens to be their 38th wedding
anniversary. . . please stand so we can recognize you.

****
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The Citys 75-year partnership with Norfolk Redevelopment and Housing

Authority has produced historic achievements. It has revitalized downtown, built
new neighborhoods, revitalized others, and helped develop the campuses of
Norfolk State and Old Dominion universities, and Tidewater Community College
that are so important to us.

More recently, it has helped transform East Ocean View with new
communities. East Beach, Harbor Walk and Bay Breeze Point have increased
homeownership rates and, since the year 2000, helped increase property values
from $42 million to $480 million dollars. Our partner in the remarkable East
Beach development is Bart Frye.lets thank him.

Development of the new Broad Creek community has increased property

values from essentially zero to $82 million dollars, while adding new assets such
as the amazing $80 million dollar Kroc Center, a new Richard H. Bowling
Elementary, and an anchor branch library that will start construction later this year.

In the Church Street/Huntersville corridor, redevelopment efforts have

increased values from $35 million dollars in 2000 to $142 million dollars today.
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And in Berkley, redevelopment continues with the Banks at Berkley, a 4-story, 50unit apartment community by WODA Development that broke ground last fall. It
is named in honor of long-time civic leader George Banks. George is here, so
please stand.

In Wards Corner, acquisition and demolition of blighted properties in Denby

Park, development of the $18 million dollar K&K shopping center and a new $20
million dollar Sams Club have helped double property values to nearly $390
million dollars.

****
Improving student test scores and the recent appointment of Dr. Melinda
Boone as superintendent promise better days ahead for Norfolk Public Schools.
Dr. Boone returned to Norfolk after serving as school superintendent in Worcester,
Massachusetts. She is here today, so please give her a warm welcome home.

Dr. Boone begins her tenure in the middle of the most ambitious school
construction program in the citys history.

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At this moment, four schools are under construction: the Campostella K

through 8 STEM School; Richard H. Bowling; Larchmont; and Ocean View
elementary schools. Including the new Crossroads Elementary, this is a $130
million dollar investment, and fulfills the councils promise to build five new
schools. We are also committed to building a new Camp Allen Elementary with
the Navy, and design work is now underway.

When combined with the 2004 opening of Norview High, Coleman Place
Elementary and the renovated and enlarged Blair Middle School, we will have
built 9 schools in 13 years at a total cost of $244 million dollars.

The most significant capital investment in our school system in the citys
history.

Its now time to focus on building a Career Technical High School. Of the
estimated 1.5 million job openings in the Commonwealth in the next decade, 5060% will not require a four-year degree. But, they will require advanced training
in technical skills. This is what CTE schools specialize in, along with rigorous
academics.

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A CTE School educates students for a range of career options such as

transportation, health science and information technology.

The CTE school enjoys real support, but it will require a strong partnership
among the city, the school system, the business and philanthropic community and
the state. Vital for our childrens future, it should be our number one priority going
forward.

****
The root of so many of the social challenges we face whether its crime,
educational attainment, unemployment, or public health can be explained by the
presence of poverty. At 22%, Norfolks poverty rate has remained essentially
unchanged for decades.

This led to the appointment of a blue ribbon task force that recommended
focusing poverty reduction efforts on early childhood education, youth career
pathways, adult workforce development and neighborhood revitalization.

Beginning with last years budget, $3.9 million dollars has been allocated
toward implementing those recommendations. More will be needed.
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$1.4 million helped establish a housing trust fund to address the need for
affordable housing.

$1 million was set aside for planning the Career Technical Education high
school.

And $1.5 million was dedicated to implementing recommendations for

workforce development, neighborhood revitalization and early childhood
development.

The workforce development component will be strengthened by a $2.7

million dollar HUD grant that will allow NRHA to provide work readiness,
education and financial empowerment services to 225 families in the Young
Terrace public housing community.

Together with our private and non-profit partners, we can and we will begin
to move more Norfolk residents out of poverty and into the mainstream. (PAUSE)

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Ten years ago, the city adopted a Blueprint to End Homelessness. It was a
bold beginning to tackle a tragic and complicated problem. Looking back, it is
remarkable what has been accomplished.

We now have an Office to End Homelessness that has partnered with dozens
of non-profit organizations to respond to the needs of homeless citizens - especially
families, veterans and the chronically homeless.

When we started, there was no supportive housing anywhere in the region.

Today there are 320 units. The first 60 were built in Norfolk, and once Church
Street Station is completed at the end of the year, another 40 units will come online. Just last week Crescent Square was opened in Virginia Beach.

As part of our commitment to veterans, in September 2014 Norfolk became

the first city in Virginia to sign on to the National Mayors Challenge to End
Veterans Homelessness.

We met that challenge last Veterans Day, thanks to the assistance of our
many partners at the federal, state and local level.

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I would also like to acknowledge with deep appreciation, everyone whos

helped make our Homeless Connect events a great success. Twice a year for the
past ten years, over 500 volunteers have assembled at Scope to serve an average of
450 people needing assistance. It is an inspiring example of human compassion.

****

As a city nearly surrounded by water, flooding has been a fact of life here for
centuries. But rising seas and sinking land have made flooding a commonplace
occurrence.

It is a formidable challenge with multiple solutions none of them

inexpensive. So the recent announcement that Norfolk will receive most of a $120
million dollar federal flood mitigation grant was very welcome news, and allows
us to move ahead on two important projects.

The first is in the Ohio Creek watershed east of downtown. There, portions
of Kimball Terrace and Westminster Avenue will be elevated; berms and swales
will be constructed and marshes improved to capture storm water in the
Chesterfield Heights neighborhood.
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The second project is development of a coastal resilience accelerator to

induce new businesses devoted to combatting rising seas.

Beginning this spring, the Army Corps of Engineers begins a major project
to replenish the beach from East Ocean View to Willoughby. The city is
responsible for 25% of the cost of this $38 million dollar effort about $9 million
dollars.

When finished, it will greatly improve the beaches, and protect bay front
communities from storm surge flooding.
Complementing this is a recently approved sand management plan to protect
the dunes and promote beach stability.

The Army Corp also chose Norfolk for a comprehensive study to evaluate
alternatives for coordinated and implementable solutions for flood risk
management. Our selection was supported by the White House, which has called
Norfolk a national model.
Over time, we have developed a strong partnership with our friends at the
Corps and we should thank them.
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The city will also be part of a joint land use study the Navy will be
conducting to better understand the effects of climate change and sea level rise on
naval facilities here and in Virginia Beach.

In addition to on-going flood mitigation projects such as raising roadways,

installing more pump stations and completing drainage improvements, weve also
been narrowing options and cost estimates for flood barriers to protect areas in
Ghent, Ocean View and a large portion of the city in the Lafayette River
watershed.

Mitigation is also needed in the Newton Creek watershed, which

encompasses the St. Pauls revitalization area. These are big projects with big
costs requiring more assistance from the federal government.

Flood mitigation is part of a larger effort focused on resiliency. In 2013,

Norfolk became one of the first members of the Rockefeller Foundations 100
Resilient Cities. This initiative is helping cities around the world become better
able to meet physical, social and economic challenges through collaborative
problem solving.
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****
Norfolk has one of the best police departments in the country, and under
Chief Mike Goldsmiths leadership, NPD is becoming a more agile organization,
capable of adapting quickly to a changing environment.

A good example of this is the Crisis Intervention Team, a joint effort with
the Community Services Board to train officers in how to respond more effectively
to calls involving people with severe psychiatric problems.
In less than a year, the program graduated 200 police officers and established
a roving patrol dedicated to answering psychiatric crisis calls.

This has resulted in an unprecedented decrease in arrests and use of force by

officers.

In recognition of this superior performance, the Virginia CIT Coalition

awarded the Norfolk Crisis Intervention Team the 2015 CIT Program of the Year
Award, so please join me in congratulating NPD on this important achievement.

NPD was also among the first police departments in the state to adopt the
use of body cameras. Right now, 340 officers are equipped with body cameras.
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Another 250 are on order, enough to equip all uniformed officers in the Field
Operations Bureau.

The chief has also implemented programs to improve officers response to

cultural, gender-based, age-related and socio-economic differences, and to identify
behavior patterns indicating an officer may need retraining or supervisory
intervention.

These proactive steps, together with NPDs extensive community outreach

efforts, place it in the forefront of the most innovative police departments.
Im also pleased to report the overall crime rate fell again last year by 3%.
While violent crime was up, the 3% decrease in overall crime continues a 15 year
trend that, since 2000, has seen violent crime fall 25%, property crime by 36% and
total crime by 35%.

This achievement is due to solid police work, citizen participation and the
good work of the Crime Line program.
****
In the Global economy, transportation is destiny . . . for our economy
to reach its full potential, our transportation network must improve.
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With the Hampton Roads Transportation Accountability Commission, we

now have a vehicle for funding and building new projects. So far, nine have been
identified with a price tag of $8.6 billion dollars.

Of those, the first phase of widening I-64 on the Peninsula is under

construction, with the second phase slated to begin this fall.

On the Southside, bids will be advertised next month on Phase I of a project

to improve the I-64/I-264 interchange. The second phase will be advertised for bid
January.

Construction is at last underway on the I-564 Intermodal Connector. It is a

$175 million dollar project. It will improve traffic congestion in and out of the
naval base and assist in the handling of increasing cargo loads at the port.

It is designed to help divert truck traffic off Hampton Boulevard. It also is

the first leg of the third harbor crossing.

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Since 1997, the third crossing has been the regions unanimously agreed
upon priority for congestion relief at harbor crossing chokepoints especially at
the HRBT.

It has been endorsed by everyone from the Navy, the Chamber of Commerce
and Norfolk Southern Corporation to the Norfolk Federation of Civic Leagues.

For the regions economic future, we must find a way to build the third
crossing.
Work on the $2.1 billion dollar Midtown Tunnel project - one of the regions
largest highway projects in the last 30 years is nearly complete. When finished,
hopefully next year, it will double the capacity of the 50 year-old crossing, and
reduce round-trip travel time by 30 minutes.
It will better connect the region and, just as other bridge-tunnel projects have
done, will stimulate the economy, and create jobs while relieving some pressure at
the Downtown and HRBT tunnels.

It will also offer traffic relief on Hampton Blvd. and Brambleton Avenue.

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Ultimately though, adding more highway lanes will not solve our congestion
problems. Solutions must include alternate modes of transportation, and these
include bus, light rail and heavy rail.

Norfolk is the only city in the Commonwealth with a light rail system, and
work is now proceeding on plans to extend the line to the Naval Base, the next
logical destination.

Lets hope our friends in Virginia Beach will move ahead on extending The
Tide from Newtown Road to the Town Center. This is a natural connection that
will improve commerce between the two cities even as it provides more
commuters a viable alternative to the automobile.

With the return of intercity passenger rail in 2012, ridership has increased
each year. Last year, nearly 154,000 people rode the train. The Commonwealth
has now completed funding for capacity improvements between Norfolk and
Richmond to allow for trains two and three. Train two should be in service by
2018.

****
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Norfolk is a richly diverse city, and as we look forward to the coming year
and beyond, there is much to be thankful for.

Our economy is diversifying and improving.

Local revenues are growing. The budget is well-managed and structurally

balanced. We finished the fiscal year with an $8 million surplus.

Our unemployment is lower, and more people are working. The crime rate
continues on a downward trend, and we are working diligently to improve the lives
of our neediest fellow citizens.

We have the best city employees and best city manager in Virginia.
Our population is growing, and growing younger as people and businesses
rediscover the many advantages of real city living its arts and cultural life.
higher education opportunities. comprehensive and convenient medical care..a
vibrant downtown.. neighborhoods of every variety from urban to
suburban..bike paths, beaches and waterways.. and the convenience of living
in the heart of the region.

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Norfolk is a vibrant and historic port city where citizens, the military, and
businesses are creating the most dynamic and authentic urban waterfront
community in America.
All of this makes it possible to say that the state of this old seaport city is
strong, and the future is very bright.

After 22 years as mayor, this is my 20th and final State of the City speech.

I have cherished this long, sometimes too long, conversation we have had
about the well-being of our community.

Our city has made real progress over the last couple of decades. Working
together, we have built a better home for ourselves and our children, and we are
positioned to capitalize on the momentum generated. With recent announcements,
and more on the way, I know we have turned a corner.

My optimism is also based on my belief that there is a talented, capable,

younger generation present and eager to take Norfolk forward. Im going to enjoy
watching it happen.

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Thank you for your many years of hard work, encouragement, and support.
It has been an honor.

God bless you and God bless the City of Norfolk.

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